Wheeler

MEMORANDUM **

The issues presented in this entirely factual appeal are subject to clear error review. See In re Kaypro, 218 F.3d 1070, 1073 (9th Cir.2000). Nothing in the record of this appeal suggests that the bankruptcy judge clearly erred in weighing the evidence.

To establish that the transfers to Dispoto were avoidable as preferential under the Bankruptcy Code, the trustee had to prove, inter alia, both that (1) Dispoto was an insider, and (2) the transfers were made while the debtor was insolvent. 11 U.S.C. § 547 (b)(3), (b)(4)(B). The Bankruptcy Court found that the trustee had failed to prove either element. This finding was supported by evidence and was not clear error.

The trustee argues that several of the transfers were constructively fraudulent under 11 U.S.C. § 548 (a)(2)(B). To prevail on this claim, trustee had to prove that the debtor was insolvent at the time of the transfers (or became insolvent as a result of the transfers), and that the debt- or received less than a reasonably equivalent value for the transfer. The trustee did not prove insolvency at the time of the transfers, and nothing in the record demonstrates that these transfers caused the debtor to…