Bethke
Bethke v. Shane (In re Shane)
Opinion
Lead Opinion
Novack, J.
MEMORANDUM DECISION AFTER TRIAL
This court conducted a trial in this adversary proceeding over the course of three days. All parties were represented by counsel. Plaintiff Carmen Bethke is the mother-in-law of defendant Jack Shane, III. Bethke alleges that Shane defrauded her of her retirement savings, and she requests that this court enter a substantial non-dischargeable judgment against him. Bethke also alleges that Shane failed to list substantial assets and correctly report his income on his bankruptcy schedules and statement of financial affairs, and asks this court to deny him his Chapter 7 discharge. The following constitutes this court’s findings of fact and conclusions of law under Federal Rule of Bankruptcy Procedure 7052.
The Facts
Bethke was a long-time Kaiser Aluminum employee who did data entry work. In 2000, she opted for early retirement and the generous financial retirement package offered by Kaiser Aluminum. She retired with a $250,000 401k account, which she rolled over into a personal IRA with Sutro & Company. By 2008, her IRA balance had grown to almost $350,000. Bethke is not a financially savvy individual, and she relied on her Sutro & Company advisor to…