[CLBS] mediate Transferee 11 550 a(2)

[Shawn Miller]

Here's my scenario.

My clients LLC was hired to do some construction work for an individual.
The individual was involved in some fraudulent activity with his Investment
company and the funds used to pay for the construction came from the
fraudulent activities of this individual and his company.  The company was
later forced into chp. 7 and trustee is attempting to avoided a transfer of
funds under 548 (a) made to my clients LLC to pay for the construction
work.( transfer was within 2 years of the filing) My client had no
knowledge of the companies fraudulent activities.

I'm trying to get my client to fit under 11 550(b) as a mediate good faith
transferee to avoid him having to come up with a bunch of money he doesn't
have. so my question is whether the LLC would be considered the initial
transferee which would make my client the mediate transferee.  Gut says LLC
is a legal entity and would be the initial transferee but would appreciate
any thoughts and insights.

Other relevant facts:  My Clients LLC has been out of business for some
time and my client has personally filed for bankruptcy this past year.

thanks in advance for your help.
-- 
Miller Law PLLC
6901 W. Emerald St. Ste 203
Boise, ID 83704
Phone: 208-901-1647
Fax:208-906-8667
Email:  shawngmillerlaw at gmail.com

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