Georgelas v. Desert Hill Ventures, No. 21-4036 (10th Cir. 2022)Annotate this Case
Consolidated cases arose from a 2015 Securities and Exchange Commission (“SEC”) civil enforcement action against Roger Bliss, who ran a Ponzi scheme through his investment entities (collectively, “the Bliss Enterprise”). Bliss was ordered to repay millions of dollars to the victims of his fraudulent scheme, and the district court appointed Plaintiff-Appellee Tammy Georgelas as Receiver to investigate the Bliss Enterprise’s books and seek to recover its property. Defendant-Appellant David Hill was employed by the Bliss Enterprise from 2011 to 2015, providing administrative and ministerial services to the company. He received salary payments from the Bliss Enterprise both directly and through Defendant-Appellant Desert Hill Ventures, Inc. (“Desert Hill”), of which Hill was president. After the district court ordered Bliss to disgorge funds from his scheme, the Receiver brought these actions against Hill and Desert Hill. The Receiver asserted that the Bliss Enterprise estates were entitled to recover the $347,000 in wages paid to Defendants, in addition to $113,878 spent by the Bliss Enterprise on renovations to Hill’s house, under Utah’s Uniform Fraudulent Transfers Act (“UFTA”). The district court granted summary judgment to the Receiver, finding that the wages received by Defendants from the Bliss Enterprise and the funds paid by the Bliss Enterprise for the renovations were recoverable by the estates under the UFTA. Defendants appealed to the Tenth Circuit Court of Appeals, arguing the district court erred in denying their affirmative defense under Utah Code Ann. § 25-6-9(1) and in finding that the renovations were made for Hill’s benefit, as required under Utah Code Ann. § 25-6-9(2)(a). The Court agreed with Defendants and, accordingly, reversed the district court’s summary judgment order and remanded for further proceedings.