knew, or should have known, that funds loaned to the Debtor would become the Debtor’s property. With eyes wide open, and in search of a higher rate of return, they forewent the relative security of an insured deposit or savings account with a banking institution. B. Implication of a Constructive Trust Failing to establish the creation of an express trust relationship at the time the Deposited Funds were placed with the Debtor, the Defendants attempt to have this Court retroactively imply a constructive trust in the Deposited Funds based upon the Debtor’s alleged fraud in the solicitation of those funds. This alternative tact possesses a solid legal basis in this Circuit. See Sanyo Electric, Inc. v. Howard’s Appliance Corp. (In re Howard’s Appliance Corp.), 874 F.2d 88 (2d Cir.1989) (<HOLDING>). Whether the grounds for a constructive trust
holding that a constructive trust had arisen on a third partys house due to her use of trust assets which had been diverted by the paca trustee to pay the mortgage and finding that the trust beneficiary plaintiffs are entitled to a lien on the property in the amount of the diverted funds holding that a creditors security was preserved notwithstanding the bankruptcy of the debtor holding that property a debtor holds only in trust for another is not an interest of the debtor in property under 11 usc  547b which authorizes the trustee to avoid certain preferential payments to creditors made before bankruptcy recognizing the existence of a constructive trust under new jersey law and applying that trust retroactively to exclude from a bankruptcy estate property in which a creditors security interest had been lost through the prepetition misconduct of the debtor holding that the beneficiary of a trust was not the real party in interest regarding rights owned by the trust