Georgia State University College of Law Reading Room Faculty Publications By Year Faculty Publications 1-1-2011 Midnight in the Garden of Good Faith: Using Clawback Actions to Harvest the Equitable Roots of Bankrupt Ponzi Schemes Jessica D. Gabel Georgia State University College of Law,
[email protected] Follow this and additional works at: https://readingroom.law.gsu.edu/faculty_pub Part of the Accounting Law Commons, Bankruptcy Law Commons, and the Legal Ethics and Professional Responsibility Commons Recommended Citation Jessica D. Gabel, Midnight in the Garden of Good Faith: Using Clawback Actions to Harvest the Equitable Roots of Bankrupt Ponzi Schemes, 62 Case W. Res. L. Rev. 19 (2011). This Article is brought to you for free and open access by the Faculty Publications at Reading Room. It has been accepted for inclusion in Faculty Publications By Year by an authorized administrator of Reading Room. For more information, please contact
[email protected]. ARTICLES MIDNIGHT IN THE GARDEN OF GOOD FAITH: USING CLAWBACK ACTIONS TO HARVEST THE EQUITABLE ROOTS OF BANKRUPT PONZI SCHEMES JessicaD. Gabelt CONTENTS INTRODUCTION: Too GOOD TO BE "GOOD FAITH"....................20 I. THE PONzI KINGDOM: STITCHING THE EMPEROR'S NEW CLOTHES ................................................................... 25 A. Ponzi Construction Codes ............................................ 25 B. Historic Ponzi Schemes.........................26 11. THE CLAWBACK CROWD: IN PURSUIT OF PONZI PAYOUTS .... 30 A. Ponzi Scheme Definition and Its Players................ 31 B. Ponzi Payouts:"Fraudulent or Preferential?.............. 32 1. Defining andDifferentiating Fraudulent Transfers..... 34 2. Ponzi Schemes: Fraud in the Making................ 36 t Assistant Professor of Law, Georgia State University College of Law. J.D., University of Miami School of Law; B.S., University of Central Florida.