Tradex Global Master Fund SPC, Ltd. v. Chui (In re Chui)

MEMORANDUM DECISION

I. INTRODUCTION

This adversary proceeding came before the Court for trial on the complaint of Plaintiffs Tradex Global Master Fund SPC, Ltd. and Tradex Global Advisors LLC (collectively, “Plaintiffs”) against Defendant Benjamin Pui-Yun Chui (“Defendant”). Plaintiffs’ complaint asserted claims for nondischargeability under sections 523(a)(4) and (a)(19) of the Bankruptcy Code. 1 On December 19, 2014, Plaintiffs filed a motion seeking summary judgment under section 523(a)(19), predicated upon an SEC administrative cease and desist order. On January 29, 2015, the Court denied Plaintiffs’ motion, finding that the SEC order could not be used preclusively to establish nondischargeability.

*798 On March 3 and 4, 2015, the Court held a two-day trial on the merits of the complaint. Shortly thereafter, the Court required the parties to file post-trial briefs addressing four discrete issues:

The parties timely submitted post-trial briefs.

This memorandum decision constitutes the findings of fact and conclusions of law required by Rule 52(a) of the Federal Rules of Givil Procedure, made applicable to this adversary proceeding by Rule 7052 of the Federal Rules of…