Janvey v. Golf Channel, Inc: Fifth Circuit Holds Payments by Ponzi Scheme for Services Avoidable under Texas UFTA for Lack of Value to Creditors | Practical Law
The US Court of Appeals for the Fifth Circuit, in Janvey v. Golf Channel, Inc. reversed a district court ruling and held that a payment of $5.9 million to the operator of a cable network for advertising services provided to a failed Ponzi scheme was a fraudulent transfer because from the standpoint of the Ponzi scheme's creditors, no value could be received for advertising services intended to promote a Ponzi scheme.