Mario Avallone, Objecting Creditor-Appellant v. Edward G. Gross, Bankrupt-Appellee

J. JOSEPH SMITH, Circuit Judge.

Gross, the bankrupt herein, was half owner of a wholesale automotive parts business incorporated under the name of Coretti-Gross, Incorporated, doing a business of some $1,800,000 yearly. In September 1959 he borrowed substantial sums of money and bought out his co-owner for $100,000, changing the corporate name to Edward G. Gross Corporation, which went into bankruptcy in May 1960, its working capital having apparently been impaired to obtain cash for purchase of part of the co-owner’s stock. The objecting creditor, one of Gross’ lawyers in the transaction,…