Neilson

MEMORANDUM *

These two cases are part of four consolidated appeals arising from the bankruptcy proceedings of Debtors, First T.D. & Investment, Inc. (“FTD”) and Joint Development, Inc. (“JDI”). All four appeals arise from actions brought by Appellee R. Todd Neilson, appointed trustee for the bankrupt estates (“the Trustee”). We address two of the appeals in a published opinion filed concurrently with this memorandum, Neilson v. Chang (In re First T.D. & Inv., Inc.), 253 F.3d 520 (9th Cir.2001) (“Chang”). We address the other two appeals, Nos. 99-55828 and 99-56060, 2001 WL 688232 , here.

In Chang, we held that California Business & Professions Code § 10233.2 applied to the transactions between FTD and its investors to deem the investors’ security interests perfected under California law such that the Trustee could not avoid them under the “strong-arm clause” of 11 U.S.C. § 544 .

A. Jen Kin Appeal (No. 99-56060)

Defendant Anna P. Jen Kin, an investor, appeals from the district court’s judgment reversing a grant of summary judgment in her favor by the bankruptcy court in an adversary action filed against her by the Trustee, pursuant to 11 U.S.C. § 547 (b), to avoid and recover…