Page:Federal Reporter, 1st Series, Volume 8.djvu/892

878 TBDIiBAL BEPOSTBB. �Shainwald, Assignee, etc., w, Lewis.' �{Dietriet Court, D. Cdlifornia. May 14, 1881.) �1. Rbceivebs— Bemovai.. �The relationship of a receiver to the complainant is not a sufBcient ground for liis removal, where the bankrapt admits that he was a party to a fraudu- lent transfer and concealment of his property. �2. Bame— CoTmsBL. �In such a case the receiver may employ the complainant's solicitor. �Opinion on Motion to Vacate Order Appointing Eeceiver. �HoFFiiAN, D. J.. By the decree of tMs court the respondent was adjudged to be indebted to the complainant, as assignee of the bauk- rupts, in a. large sum of money, being the value of assets of the bankrupt firm, of wbich he had obtained possession, and which he had converted to his own use by means of a fraudulent conspiracy of the most flagrant character. Execution on this decree having been retnmed -unsatisued, the present bill, in the nature of a creditor's bill; was filed. �It alleged, in substance, that the irespondeut had made, and was about to make, fraudulent transfers of his property^to evade the pay- ment of the decree; that he had secreted and conceajed the s9.me; that he was about to confess judgment on pretended and fictitious debts; that he was about toleave the United Statps ^pd to carry with him the proceeds of his property; and that he had openly declared that he had made such disposition of his property as would . prevent the complainfmt from realizing anything f roni his decree , On this bill a receiyerwas appointed, and the respondent compelled to make a general assignment of bis property. The receiver has since heen aetively enga^ed, under the, advice and direction of the com- plainant'B solicitor, in endeavoring to discover and obtain possession of property of the respondent, justly, applicable to the payment of - the. rdecree. The receiver is the brother of the complainant, who hijP^self represents creditors of.the bankrupts who have been de- frauded by the respondent and hjs co-conspirators. �A denjurrer to; the bill, having been interposed and overruled, the -Bollcitor of the respondent in open court deolined to plead to or an- swer the bill, and it was thereupon decreed to be taken ;pro confessa. Ail the allegations contained in it in respect to the fraudulent trans- fers and concealment of his property by the respondent must be deemed to be true and undenied. �*See former reports of this case, 6 Fed. Rep. 753, 766. ��� �