Bankruptcy › MLM Consulting / Network Marketing › MLM / Direct Sales

In re Canyon Systems Corp. , 343 B.R. 615 (2006)

Can a trustee in bankruptcy recover damages from those who profited from an insolvent pyramid scheme?

No, the bankruptcy trustee cannot recover damages under state law against those who profited from an unlawful pyramid scheme, but it can void fraudulent transfers of pyramid scheme profits. Canyon sold gold coins to...more

Monea v. Zimmerman, No. 91-4127 (1992)

Is a default judgment an appropriate sanction for failing to turn over documents and respond to interrogatories in the bankruptcy...

The Court of Appeals ruled that a default judgment was appropriate when the defendants were given multiple extensions and accommodations to complete production requests. Also, the court ruled that the mere fact that a...more

Cunningham v. Brown , 265 U.S. 1 (1924)

Cunningham v. Brown

The Supreme Court held that the participants in Charles Ponzi's famous scheme who cashed out just before the schemes collapse had to repay the money received and join others similarly situated as general creditors of his...more