Plotkin
Plotkin v. Pomona Valley Imports, Inc. (In re Cohen)
Opinion
Lead Opinion
Lax, J.
MEMORANDUM ON MOTION FOR SUMMARY JUDGMENT OR, IN THE ALTERNATIVE, FOR SUMMARY ADJUDICATION OF ISSUES AND ORDER THEREON
Gary Plotkin, Chapter 7 trustee (the “Trustee”) in the bankruptcy case of Stanley Mark Cohen (“Debtor”) filed an adversary proceeding against Pomona Valley Imports, Inc. dba Metro Motors (“Pomona”) seeking to avoid various purchases of new automobiles by the Debtor on the grounds that such purchases constituted fraudulent transfers under 11 U.S.C. § 548 or California Civil Code § 3439.04 and § 3439.05. Pomona moves for summary judgment or, in the alternative, summary adjudication of issues on numerous grounds more fully discussed below.
This dispute arises out of the activities of the Debtor in a “ponzi” scheme, the basic facts of which are not in dispute. In 1989 and 1990, the Debtor received money from various individuals to purchase luxury automobiles at below-market prices. The Debtor bought the cars from dealers at full retail price, using money from new “buyers/inves *47 tors” to make up the difference between the money previously received and the retail cost of the vehicles. At the time of purchase, the car was registered in the name of the buyer/investor…