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IN RE FRANK FUNARO, INC.

No. 01-6005MN.

263 B.R. 892 (2001)

In re FRANK FUNARO, INC., Debtor. Mark C. Halverson, Chapter 7 Trustee, Plaintiff-Appellant, v. Frank M. Funaro, Defendant-Appellee.

United States Bankruptcy Appellate Panel of the Eighth Circuit.

Filed July 2, 2001.

Attorney(s) appearing for the Case

Stephen J. Behm, Mankato, MN, for appellant.

Barbara J. May, Arden Hills, MN, for appellee.

Before WILLIAM A. HILL, SCHERMER, and FEDERMAN, Bankruptcy Judges.

FEDERMAN, Bankruptcy Judge.

The Chapter 7 Trustee (the Trustee) appeals from a bankruptcy court judgment in favor of defendant Frank Funaro (Funaro) in a fraudulent conveyance cause of action and from a bankruptcy court order awarding sanctions to Funaro in the amount of $3,970.00. For the following reasons, we affirm the decision of the bankruptcy court as to the judgment in favor of Funaro, and reverse the order awarding sanctions.

I

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