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6500 Cherrywood Ln - Greenbelt, MD 20770 - Main Tel: 301-344-8018 map
101 W Lombard St Room 8530 - Baltimore, MD 21201 - Main Tel: 410-962-2688

The plaintiff sought an order declaring a judgment entered by Court of Common Pleas for York County, Pennsylvania and later domesticated in Maryland against the defendant in the amount of $217,604.15 non-dischargeable under 11 U.S.C. § 523(a)(2) and 11 U.S.C. § 523(a)(4). The Bankruptcy Court, David E. Rice, J., held that the debt owed by the defendant to the plaintiff under the judgment was excepted from discharge under 11 U.S.C. § 523(a)(2)(A) and § 523(a)(2)(B) because the defendant used misrepresentations and a false financial statement to induce the plaintiff to make a loan that was not repaid. The court held that the defendant was not acting in a fiduciary capacity when he induced the plaintiff to make the loan, despite having been his friend and accountant, and thus 11 U.S.C. § 523(a)(4) was not applicable.

David E. Rice