Reuter v. Cutcliff, No. 11-1339 (8th Cir. 2012)
Annotate this CaseNathan Reuter filed for bankruptcy under Chapter 11 and proposed a Chapter 11 plan that would settle nine creditors' claims. The nine creditors in turn objected to the Chapter 11 plan and filed an adversary proceeding against Reuter, asserting that their claims against him were non-dischargeable in bankruptcy. The bankruptcy court held the claims non-dischargeable and granted the nine creditors' motion to convert to a Chapter 7 bankruptcy. The Bankruptcy Appellate Panel affirmed in all respects. The Eighth District Court of Appeals affirmed, holding that the bankruptcy court did not err in its finding Reuter's debts to the nine creditors non-dischargeable in bankruptcy.
Court Description: Civil case - Bankruptcy. Bankruptcy court did not err in concluding Reuter was vicariously liable for another's fraud, that he personally defrauded five of the creditors and the he personally sold unregistered securities in violation of Missouri law. Judge Smith, concurring in part and dissenting in part.
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