In Re: Custom Contractors, LLC, Deborah C. Menotte v. United States

WILSON, Circuit Judge:

This case arises from an attempt by Deborah C. Menotte, as trustee for the estate of Custom Contractors, LLC (Debt- or), to avoid eight transfers made by the Debtor to the Internal Revenue Service (IRS) as payment for the income tax liability of the Debtor’s principal, Brian Den-son. The bankruptcy court ruled in favor of the United States as to the first seven transfers, finding that Menotte failed to prove all the elements of constructive fraud because she could not show the Debtor was operating with unreasonably small capital at the time of the transfers. As to the…