MATTER OF PARAGON SECURITIES CO.

No. 78-1206.

589 F.2d 1240 (1978)

In the Matter of PARAGON SECURITIES COMPANY, a New Jersey Corporation, Paragon Securities Company of New York, a New York Corporation, Municiplex Funding, Inc., a New Jersey Corporation, Paragon Life Agency, Inc., a New Jersey Corporation, Paragon Insurance Agency, a New Jersey Corporation, Nelson Stousland School, Inc., a New Jersey Corporation, and Paragon Securities Company of Florida, a Florida Corporation, Bankrupts. Charles GIANNONE, Appellant, v. Louis S. COHEN, Trustee in Bankruptcy of Paragon Securities, et al., Appellees.

United States Court of Appeals, Third Circuit.

Decided December 20, 1978.


Attorney(s) appearing for the Case

Arthur Uscher, Friedman, Kates, Uscher & Pearlman, Rutherford, N. J., for appellant.

Myron S. Lehman, Lehman & Wasserman, Millburn, N. J., for bankrupts.

Frank J. Vecchione, Crummy, Del Deo, Dolan & Purcell, Newark, N. J., for appellees.

Before SEITZ, Chief Judge, HUNTER, Circuit Judge, and CAHN, District Judge.


OPINION OF THE COURT

JAMES HUNTER, III, Circuit Judge:

Charles Giannone appeals from a decision of the district court affirming the bankruptcy judge's determination that Giannone is not entitled to reclaim money which he paid to Paragon Securities Company (hereinafter Paragon or Company), prior to the date of Paragon's bankruptcy. In this suit, Giannone contends that Paragon acted fraudulently both in inducing Giannone to enter into a contract for the purchase...

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