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IN RE LAIZURE

No. 06-16857.

548 F.3d 693 (2008)

In the Matter of Charles LAIZURE; Julie Ann Laizure, Debtors, Busseto Foods, Inc., Appellant, v. Charles Laizure, Appellee.

United States Court of Appeals, Ninth Circuit.

Filed: November 17, 2008.

Attorney(s) appearing for the Case

Scott M. Reddie & Todd W. Baxter, McCormick, Barstow, Sheppard, Wayte & Carruth LLP, Fresno, CA, for the appellant.

Kristine M. Kelly, Fresno, CA, for the appellee.

Before: PROCTER HUG, JR. and N. RANDY SMITH, Circuit Judges, and RICHARD MILLS, District Judge.

HUG, Circuit Judge:

In this bankruptcy case, we determine whether a creditor that is required to return to the trustee a payment from the debtor made within the ninety-day preference period still maintains a claim against the debtor for a nondischargeable claim. Busseto Foods, Inc. ("Busseto") contends that the payment it was required to pay to the trustee was a repayment of funds embezzled by the debtor, Charles Laizure, and thus a nondischargeable claim. The Bankruptcy...

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