Ward et al v. Smith

1 Case No. 01-5055-CV-SW-3.
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE WESTERN DISTRICT OF MISSOURI
In re: )
)
MARTIN W. SMITH, ) Case No. 03-31378
)
Debtor, )
)
GILBERT WARD and LINDA WARD, )
)
Plaintiffs, ) Adv. No. 04-3007
v. )
)
MARTIN W. SMITH, )
)
Defendant. )
ORDER
This matter comes before the court on the motion for summary judgment filed by Plaintiffs Gilbert Ward
and Linda Ward against Debtor and Defendant Martin W. Smith (“Debtor”). The Plaintiffs’ complaint initiating
this adversary proceeding seeks a determination that the $3,486,079.44 debt arising from a judgment
(“Judgment”) entered by the District Court of the Western District of Missouri1 in favor of the Plaintiffs and
against the Debtor is excepted from discharge pursuant to 11 U.S.C. § 523(a)(2), (4), (6), and (19). The
Plaintiffs’ motion seeks judgment as a matter of law on the their § 523(a)(19) claim. The Debtor did not
respond to the motion for summary judgment.
In order to prevail under § 523(a)(19), a plaintiff must establish the existence of a judgment for a
violation of federal or state securities laws. 11 U.S.C. § 523(a)(19). The Judgment entered against the Debtor
found that he had violated both federal and state securities laws. Therefore, the debt owed by the Debtor to
the Plaintiffs arising from the Judgment is nondischargeable pursuant to § 523(a)(19).
Accordingly, it is
ORDERED that the Plaintiffs’ motion for summary judgment is GRANTED. It is
Case 04-03007-jwv Doc 33 Filed 04/18/05 Entered 04/18/05 15:19:45 Desc Main
Document Page 1 of 2

FURTHER ORDERED that the $3,486,079.44 debt owed by the Debtor to Gilbert Ward and
Linda Ward is hereby determined to be excepted from discharge pursuant to 11 U.S.C. § 523(a)(19).
SO ORDERED this 18th day of April, 2005.
/s/ Jerry W. Venters
HONORABLE JERRY W. VENTERS
UNITED STATES BANKRUPTCY JUDGE
A copy of the foregoing was mailed
conventionally or electronically to:
Joseph D. Sheppard
Spencer P. Desai
Case 04-03007-jwv Doc 33 Filed 04/18/05 Entered 04/18/05 15:19:45 Desc Main
Document Page 2 of 2