Commodity Futures Trading Commission v. Walsh, et al., 658 F.3d 194 (2d Cir. 2011)

On an issue of first impression regarding both New York and federal law, the Second Circuit ruled, on certified questions answered by the New York Court of Appeals, that client, ex-wife of defendant, was ‘bona fide purchaser for value’ of proceeds of a divorce settlement, even assuming funds were proceeds of the defendant’s fraud, because ex-wife provided “intangible consideration” as a spouse and mother during lengthy marriage under principles of equitable distribution codified in section 236 of the New York Domestic Relations Law.