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IN RE FRANKEL

Bankruptcy Nos. 82-20086, 84-2083A.

77 B.R. 401 (1987)

In re Richard FRANKEL, Debtor. Edward FRANKEL, Plaintiff, v. Richard FRANKEL, Defendant.

United States Bankruptcy Court, W.D. New York.

September 9, 1987.

Attorney(s) appearing for the Case

Warren H. Heilbronner, Rochester, N.Y., for plaintiff.

Douglas Jones, Rochester, N.Y., for defendant.

MEMORANDUM AND DECISION

EDWARD D. HAYES, Bankruptcy Judge.

This is an application to have a debt excepted from discharge pursuant to 11 U.S.C. § 523(a)(4). The issue is whether an officer of a corporate debtor-in-possession, who authorizes the sale of secured inventory to an entity that uses the sale price as offset against the corporation, incurs a debt to the secured creditor that is non-dischargeable in the officer's personal bankruptcy.

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