Kapila v. Internal Revenue Service (In Re ATM Financial Services, LLC)

MEMORANDUM OPINION GRANTING SUMMARY JUDGMENT IN FAVOR OF THE INTERNAL REVENUE SERVICE

KAREN S. JENNEMANN, Bankruptcy Judge.

The Chapter 7 trustee, Soneet Kapila, filed this adversary proceeding and two motions for partial summary judgment 1 seeking to avoid the alleged fraudulent transfer of $536,686.91 from the debtor, ATM Financial Services, LLC, to the defendant, the Internal Revenue Service. The IRS, in response, has filed a cross motion for summary judgment 2 raising the good faith defense provided to secondary or intermediate transferees under § 550(b) of the Bankruptcy Code. 3 The IRS…