Janvey v. The Golf Channel, Inc.
- Summarized by Craig Geno , Craig M Geno PLLC
- 9 years 10 months ago
- Citation:
- Fifth Circuit; No. 13-11305
- Tag(s):
-
- Ruling:
- The Golf Channel extended marketing services and advertising to the Stanford International Bank Ponzi scheme and was paid $5.9 million under its agreement with Stanford. Subsequently, the District Court in the Northern District of Texas appointed a receiver over Stanford in litigation brought by the SEC. The receiver sued the Golf Channel to recover the $5.9 million as a fraudulent conveyance under the Texas Uniform Fraudulent Transfer Act.
The Golf Channel argued it provided "reasonable equivalent value" for the transfers by providing advertising. The Fifth Circuit held that value is determined from the perspective of the creditors of the transferor. Here, the Golf Channel failed to meet its burden of proving value to the creditors of Stanford and its services did not, as a matter of law, provide any value to those creditors. Judgment was rendered in favor of the receiver.
- Procedural context:
- Appeal from the District Court-Northern District of Texas
- Facts:
- Receiver sought recovery of $5.9 million paid to an advertising agency by the Stanford Ponzi scheme.
- Judge(s):
- Reavley, Elrod and Southwick
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