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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

RICHARD A. COLEMAN, SR. Appellant, v. LORI S. SIMPSON Appellee.

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Bankruptcy Case No. 01-5226

Civil No. L-05-246

MEMORANDUM Between May 1996 and September 1998, Monica Lynn Coleman ("Mrs. Coleman") transferred $1,043,386.28 to her husband, pro se Appellant Richard A. Coleman ("Mr. Coleman" or "Appellant").1 On October 29, 2004, after a trial on the merits, the Bankruptcy Court "avoided" the transfers under Maryland law, finding that Mrs. Coleman was insolvent when she made, or was rendered insolvent by, the transfers, and that she did not receive "fair consideration" for them. The Bankruptcy Court (Judge E. Stephen Derby) entered judgment in favor of the trustee for Mrs. Coleman's bankruptcy case, Appellee Lori S. Simpson ("Simpson" or "Appellee"), in the amount of $1,043,386.28. This appeal followed. For the reasons stated below, the Court will, by separate Order, AFFIRM the decisions of the United States Bankruptcy Court and DIRECT the Clerk to CLOSE the case. I. BACKGROUND Mrs. Coleman was the defendant in a celebrated securities fraud case. On April 16, 2002, Mrs. Coleman, who in 1999 had been barred by the SEC from working in the securities and investment

Mrs. Coleman deposited the funds into a bank account held by Mrs. Coleman and Mr. Coleman as tenants by the entireties.

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business, plead guilty to five felony counts of securities fraud. State of Maryland v. Monica Lynn Coleman, No. 100362045 (Cir. Ct. Baltimore City). The Circuit Court for Baltimore City sentenced her to 15 years imprisonment, with all but one year suspended. This appeal involves Mrs. Coleman's bankruptcy petition. On May 7, 1999, Mrs. Coleman filed a voluntary petition in bankruptcy in the United States Bankruptcy Court for the District of Maryland, seeking a Chapter 7 discharge of her debts. Simpson was appointed as Trustee. On May 7, 2001, Simpson sued Mr. Coleman to recover transfers totaling $1,043,386.28 that Mrs. Coleman made to her husband between May 1996 and September 1998. Simpson contended that the transfers were fraudulent within the meaning of 11 U.S.C.

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Maryland Law