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IN RE CEDAR FUNDING, INC.

Bankruptcy No. 08-52709-MM. Adversary No. 08-5155.

408 B.R. 299 (2009)

In re CEDAR FUNDING, INC., Debtor. Larry W. Rollins and Marie P. Rollins, individually and as Trustees of the Rollins 2002 Family Trust, dated July 1, 2002, Douglas N. Forzani and Shirley J. Forzani, individually and as Trustees of the Forzani 1994 Revocable Family Trust, dated October 26, 2004, Plaintiffs, v. R. Todd Neilson, Trustee for Debtor, Cedar Funding, Inc., Defendant.

United States Bankruptcy Court, N.D. California.

April 10, 2009.

Attorney(s) appearing for the Case

Larry J. Lichtenegger, Vincent C. Catania, Law Office of Vincent C. Catania, Monterey, CA, for Plaintiffs.

Cecily A. Dumas, Gail S. Greenwood, Robert E. Clark, Stefanie A. Elkins, Friedman, Dumas and Springwater, San Francisco, CA, for Defendant.

OPINION AND ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT OR, ALTERNATIVELY, FOR SUMMARY ADJUDICATION

MARILYN MORGAN, Bankruptcy Judge.

INTRODUCTION

Cedar Funding, Inc. (CFI) accepted many millions of dollars from hundreds of individuals who believed they were acquiring fractional interests in loans that were secured against real property. Many more invested with CFI through a related entity, Cedar Funding Mortgage Fund LLP (the...

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