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To: GrootheWanderer
If I stole a car, TV, PC, etc. and gave it to someone and they didn’t know it was stolen, they should be allowed to keep it? If they then sold the car (etc.) and spent the money, all in good faith, then should they be forced to repay the money? My understanding is that it is the car that should be tracked down and returned in such cases.

In this case money was given, but then also spent as would be routine for such a ministry. Clawbacks are a thing in bankruptcies (as I learned the hard way a few years ago) and when dealing with fraud like this. But there needs to be some reasonable limitation protecting "in good faith" recipients. For one thing, it tends to enrich the lawyers to a large degree, with the original victims only getting a fraction of the clawed back funds. And that doesn't sit right with me as regards the "in good faith" recipient. Lawyers are doing well enough already in this country.

20 posted on 09/07/2023 10:54:45 AM PDT by EnderWiggin1970
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To: EnderWiggin1970

In legal circles, “clawbacks” are referred to as “Voidable Transfers”. Every State has a (”Uniform Voidable Transfer Act”) UVTA statute. It is routinely used in bankruptcies and civil judgment collections. There are around 11 different factors courts will look at when deciding whether to void a transfer of personal or real property.


23 posted on 09/07/2023 11:06:31 AM PDT by jpp113
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