KeyBank Moves for Dismissal of Debtor Cachet Financial Services’ $1.2 Million Complaint
February 22, 2022, Central District of California – Defendant KeyBank National Association files a notice of motion and partial motion to dismiss Debtor Cachet Financial Services’ complaint for failure to state a claim upon which relief can be granted.
On January 20, 2022, Cachet Financial Services filed its complaint for unjust enrichment, conversion, avoidance, and recovery of alleged constructive fraudulent transfers totaling $1,247,919.00 under Sections 548, 550, 551 of the Bankruptcy Code and violation of Cal. Penal Code § 496(a) against Defendants KeyBank and Canfield Funding, LLC d/b/a Millennium Funding. Among other claims, the complaint sought avoidance and recovery of alleged constructive fraudulent transfers and alleged violation of Penal Code §496(a) by KeyBank and Millennium. In its memorandum, KeyBank argues that as an entity, it cannot be allegedly sued under penal code section 496(a) because the language of Section 496(a) is unambiguous and only individuals, not entities, can be defendants. KeyBank further contends that the legislative history reinforces the finding that KeyBank is allegedly an improper defendant under section 496(a).
As per the notice of motion, KeyBank’s partial motion to dismiss is scheduled to be heard on March 31, 2022, at 11:00 a.m. in Courtroom 1368 of the United States Bankruptcy Court of California.
In re: Cachet Financial Services, Adv. No. 2:22-ap-01028-VZ