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IN RE BEN KENNEDY AND ASSOCIATES, INC.

No. 94-6042.

40 F.3d 318 (1994)

In re BEN KENNEDY AND ASSOCIATES, INC., Debtor. Kenneth L. SPEARS, Trustee, Plaintiff-Appellant, v. ST. PAUL INSURANCE COMPANY, Defendant-Appellee.

United States Court of Appeals, Tenth Circuit.

November 8, 1994.

Attorney(s) appearing for the Case

Clarence P. Green, Lee Endicott, of Green, James & Williams, Oklahoma City, OK, for plaintiff-appellant.

Reggie N. Whitten, Steve L. Lawson, of Mills & Whitten, Oklahoma City, OK, for defendant-appellee.

Before TACHA, BRORBY, Circuit Judges, and KANE, Senior District Judge.

BRORBY, Circuit Judge.

Appellant Kenneth L. Spears is trustee for the bankrupt Ben Kennedy & Associates, Inc. (BKA), an insurance agency. BKA was covered by a $100,000 fidelity policy issued by appellee St. Paul Insurance Company (St. Paul). Before its demise, BKA's employee, Chitty, found a way to steal from third parties —BKA's clients—while at his job. Without BKA's knowledge, Chitty created a sham insurance agency for "specialty" insurance, submitted...

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