Stanford Investors Cannot Retain Fraudulent Transfers, 5th Circuit Panel Rules

Mealey's (October 13, 2020, 1:47 PM EDT) -- NEW ORLEANS — Based on guidance from the Texas Supreme Court, a Fifth Circuit U.S. Court of Appeals panel on Oct. 8 upheld a previous determination that the Texas Uniform Fraudulent Transfer Act’s (TUFTA) good faith affirmative defense does not allow investors in the Stanford International Bank (SIB) Ponzi scheme to retain fraudulent transfers they received while on inquiry notice of the scheme (Ralph S. Janvey v. GMAG LLC, et al., No. 17-11526, 5th Cir., 2020 U.S. App. LEXIS 32032)....