The court ordered a creditor to repay $389,000 to a bankrupt estate as transfers at undervalue, but dismissed the claim against his wife who jointly held the receiving account.
The Trustee of WF Canada Ltd. applied under s. 96 of the Bankruptcy and Insolvency Act (BIA) to recover $411,000 from Rocky Racca and Jessica Agostino, alleging transfers at undervalue.
The application proceeded as a trial of an issue.
The court found that Racca received $389,000 in transfers at undervalue from WF Canada Ltd. after Liquid Capital became a creditor, and ordered him to repay this amount to the estate.
The court dismissed the application against Agostino, finding she was neither a party nor privy to the transfers, as she was not involved in the loans or the operation of the joint account into which the funds were deposited, and received no benefit.
