that, because of the default judgment, the transfer was avoided. Id. The court found that “this proposition, ... on its face, appears to contradict due process” and noted that the application of this rule “could lead to anomalous and unfair results.” Id. at 415-16. The court “rejected] this theory as unsupported” and held that “[s]ince [the co-defendants’] default did not involve [the remaining defendant], the Trustee must establish that it is proper to avoid the transfer” and then establish that payment could be recovered from the remaining defendant under § 550. Id. at 416. Finally, several other cases, which have relied on the underlying case, have also held similarly. See, e.g., Investor Prot. Corp. v. Bernard L. Madoff Inv. Sec. LLC, 480 B.R. 501, 521-22 (Bankr.S.D.N.Y.2012) (<HOLDING>); In re McMillin, 448 B.R. 847, 851
holding that a transferee is an initial transferee under the bankruptcy code if they exercise legal control over the assets received holding that a trustee may settle with an initial transferee and still pursue recovery against a subsequent transferee but notwithstanding the trustee will still be required to prove that the transfers  were fraudulent and improper in connection with its suit against the subsequent transferee because the trustees settlement with the initial transferee did not involve any determination on the merits as to the initial transfers and in this way the subsequent transferee will be afforded its due process rights to contest the avoidability of these initial transfers holding that a trustee is not required to avoid the initial transfer from the initial transferee before seeking to avoid it and recover from subsequent transferees and noting that this conclusion is consistent with case law that has disallowed automatic recovery from a subsequent transferee following the avoidance of an initial transfer through a stipulated judgment or default when the transferee had not been a party to the underlying avoidance proceeding holding that agent of corporation who used corporate funds to secure personal loan was initial transferee holding a party to be an initial transferee because she was given legal title to the funds