SHEPHERD, Circuit Judge.
In this consolidated appeal, defendants, Pegasus Partners II, L.P., Pegasus Investors II, L.P., Pegasus Capital Partners, L.P. (collectively "Pegasus"), Phillip Rinaldi, Stanley Riemann, Robert Terry (collectively "defendants"), and J.P. Morgan Trust Company, National Association in its capacity as Trustee of the FI Liquidating Trust ("Liquidating Trustee"), appeal the Bankruptcy Appellate Panel's ("BAP") decision finding the bankruptcy court...
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