Miller v. Taber (Fraudulent Transfers)

Miller v. Taber, 1:12-CV-74-DN, 2014 WL 317938 (D. Utah Jan. 29, 2014. The District Court granted a Receiver’s motion for summary judgment in a fraudulent transfer action to recover commissions and salaries received by individuals for referring investors to Ponzi scheme entities. Acknowledging the Ponzi presumption, that all transfers by a Ponzi scheme are presumed fraudulent, the Court found that the Defendants would not be able to overcome the presumption, as those who bring new investors into a scheme have not given reasonably equivalent value within the meaning of the UFTA. Additionally, the Court noted that the commissions and salaries would alternatively need to be returned as they were obtained illegally, as the Defendants were not licensed to sell securities and state laws require that the unlicensed parties make the victims whole.