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IN RE KELLEY

BAP No. NO-97-037, Bankruptcy No. 95-1209, Adversary No. 95-00321.

215 B.R. 468 (1997)

In re William R. KELLEY and Carol Jo Kelley, Debtors. The EMPLOYERS WORKERS' COMPENSATION ASSOCIATION, Plaintiff-Appellant, v. William R. KELLEY, Defendant-Appellee.

United States Bankruptcy Appellate Panel of the Tenth Circuit.

December 23, 1997.

Attorney(s) appearing for the Case

Richard A. Shallcross of Brewster, Shallcross & DeAngelis, Tulsa, OK, for Plaintiff-Appellant.

Bruce G. Straub, Tulsa, OK, for Defendant-Appellee.

Before PUSATERI, BOULDEN, and ROBINSON, Bankruptcy Judges.

OPINION

PUSATERI, Bankruptcy Judge.

This is an appeal from a judgment, entered after a bench trial, that determined a debt to be dischargeable under 11 U.S.C.A. § 523(a)(4) or (6). The creditor contends the debt arose from embezzlement or from defalcation while acting in a fiduciary capacity, covered by (a)(4), or from conversion, covered by (a)(6).

I. Background

The Employers Workers' Compensation Association ("TEWCA")...

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