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loss, he was pursuing at least one avenue of recovering that
loss.
The Amazing Enterprises suit, commenced on or about July 1,
1991, was settled in January 1993. In late 1994, Mr. Premji
received $29,205 from the settlement. That is approximately 50
percent of his claimed theft loss.
In addition, Mr. Premji filed a proof of claim in the
bankruptcy proceeding on May 16, 1991. The sole bankruptcy
estate assets available to satisfy creditors' claims are moneys
obtained as a result of Ms. Jobin's adversary proceedings to
avoid preferences and fraudulent conveyances. Ms. Jobin
testified that she concluded in February 1991 that such
proceedings would be her only avenue to satisfy creditors'
claims. Hence, in early 1991 Ms. Jobin clearly had formulated a
plan to attempt to bring assets into the bankruptcy estate.
Even though Ms. Jobin did not begin to file the adversary
proceedings until September 1992,10 the facts that formed the
basis of those proceedings existed at the close of 1990, i.e.,
M&L had made the payments in 1990 that Ms. Jobin sought to avoid.
As to Mr. Norby's prospects of recovery, we have considered
his subjective beliefs. His actions are consistent with those
beliefs. But, despite the prospect of losing his $60,000
10 Ms. Jobin did not obtain access to M&L's records until
July 1992. The records had been removed from M&L's place of
business and were obtained pursuant to a search warrant.
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