On December 20, 2019, the Texas Supreme Court addressed a certified question—at the request of the Fifth Circuit—related to the $7 billion Ponzi scheme perpetrated by Allen Stanford and Stanford International Bank. Specifically, the Court ruled that a transferee on inquiry notice of a fraudulent transfer may not satisfy a good-faith defense under the Texas Uniform Fraudulent Transfer Act, unless the transferee conducted a diligent investigation. Reid Collins had filed an amicus brief seeking such a ruling on behalf of the National Association of Bankruptcy Trustees. The ruling is a significant victory for trustees, receivers, and other plaintiffs in fraudulent transfer litigation, not only in Texas, but also in other jurisdictions around the country.
See opinion here.
