Ponzi Schemes and Poker – Is Recovering Gambling Losses a Winning Hand?
Steve Gubner and Corey Weber’s article, Ponzi Schemes and Poker – Is Recovering Gambling Losses a Winning Hand?, was published by The State Bar of California Business Law News in Issue 3 in December 2014. Business Law News is a publication of the Business Law Section of the State Bar of California.
The article explores claims to recover gambling losses as fraudulent transfers and the key issues leading to a winning hand. The claims present unique issues, including whether the opportunity to win money at poker games constitutes “value” to a debtor, and whether poker players participating in games outside of casinos take winnings in good faith. Steve Gubner and Corey Weber litigated claims to avoid and recover gambling losses in a high-profile bankruptcy case involving a Ponzi scheme.
Steve Gubner, Managing Partner of Brutzkus Gubner LLP, represents financial institutions, Fortune 500 companies (and their financing divisions), closely held businesses and high net worth individuals in complex bankruptcy and insolvency matters. He is known in the insolvency arena as the “involuntary bankruptcy go-to lawyer” because of his management of the sensitive issues surrounding involuntary bankruptcy filings, and general business advice he applies to navigate potential pitfalls and solve problems before they occur.
Corey R. Weber, a partner at Brutzkus Gubner LLP, is a litigator in bankruptcy, business and commercial litigation. He is the Co-Vice Chair of the Insolvency Law Committee (a standing committee of the Business Law Section of the State Bar of California) for 2014-2015. Corey represents parties in adversary proceedings in bankruptcy cases, and frequently litigates complex fraudulent transfer cases involving Ponzi schemes, fraud and breaches of fiduciary duty.