Opinion ID: 3052233
Heading Depth: 5
Heading Rank: 2

Heading: Without receiving a reasonably equiv-

Text: alent value in exchange for the transfer or obligation, and the debtor either: (A) Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction. (B) Intended to incur, or believed or reasonably should have believed that he or she would incur, debts beyond his or her ability to pay as they became due. DONELL v. KOWELL 7847 CAL. CIV. CODE § 3439.04(a).1 Courts have routinely applied UFTA to allow receivers or trustees in bankruptcy to recover monies lost by Ponzischeme investors.2 See, e.g., In re Agric. Research & Tech. Group, 916 F.2d 528, 534 (9th Cir. 1990) (“Agritech”); Scholes v. Lehmann, 56 F.3d 750, 755 (7th Cir. 1995). The Ponzi scheme operator is the “debtor,” and each investor is a “creditor.” See Scholes, 56 F.3d at 755 (explaining that defrauded Ponzi scheme investors are actually tort creditors). The profiting investors are the recipients of the Ponzi scheme operator’s fraudulent transfer.