Judge Richard Sullivan
Stein operated a $55 million Ponzi scheme over 20 years. Under Gowan v. The Patriot Group, his guilty plea provided ample evidence of “actual intent” to defraud creditors. Further, by admitting under oath that he began using Gemini Fund I and other “Stein entities” in 1998 as part of his schemeoperators of which are, by definition, insolventStein and his entities were proved insolvent. District court granted court-appointed receiver Moran’s “clawback action”asserting actual fraud under New York Debtor and Creditor Law §276, and constructive fraud under §§273 through 275seeking to recover $214,643 plus prejudgment interest from Uchitel and $38,000 plus similar interest from Sieburgh, as fictitious profits for which neither provided fair consideration. It was undisputed that Uchitel withdrew $214,643 more than he deposited into his Gemini account. Although Sieburgh’s $38,000 had been withdrawn from an account called “Hotel des Pays” established and funded by his father, because that $38,000 in profits was never Sieburgh’s nor his father’s, it could not be aggregated into Sieburgh’s personal investment account so as to offset Sieburgh’s losses in that account.
