On September 11, 2019, Reid Collins filed an amicus brief for the National Association of Bankruptcy Trustees in an appeal pending before the Texas Supreme Court related to the $7 billion Ponzi scheme perpetrated by Allen Stanford and Stanford International Bank. The Court is addressing a certified question—at the request of the Fifth Circuit—regarding the “good faith” defense under the Texas Uniform Fraudulent Transfer Act. Specifically, the Court is considering whether a transferee who is aware of suspicious circumstances, but does nothing to investigate those suspicions, may later avail itself of a “good faith” defense by arguing that an investigation would have been futile. The answer to this question will have a significant effect on fraudulent transfer litigation, not only in Texas, but also in other jurisdictions around the country.
See brief here.
