Summary
This memorandum and order from the U.S. District Court for the Eastern District of New York affirms a bankruptcy court’s grant of summary judgment in favor of Amazon.com Services LLC. The court upheld the lower court’s determination that David Cameo’s $2.18 million debt to Amazon was nondischargeable in his Chapter 7 bankruptcy proceeding due to actual fraud under 11 U.S.C. § 523(a)(2)(A). Reviewing the record de novo regarding legal conclusions and for clear error regarding factual findings, the district court found ample circumstantial evidence of fraudulent intent and rejected Cameo’s claim that the unfulfilled orders resulted from an honest shipping mistake. Consequently, the appeal was denied.
Topics
Practice areas
Questions Presented
- Whether the Bankruptcy Court improperly granted summary judgment declaring Cameo's debt to Amazon nondischargeable under 11 U.S.C. § 523(a)(2)(A).
- Whether Cameo's deposition testimony and assertions regarding shipping mistakes created a genuine dispute of material fact.
- Whether the Bankruptcy Court improperly relied on assumptions or credibility determinations rather than reasonable inferences from undisputed evidence.
Holdings
- Summary judgment was proper because the undisputed evidence, viewed in its totality, supported an inference of actual fraud and established that Cameo's debt to Amazon was nondischargeable under 11 U.S.C. § 523(a)(2)(A).
- Cameo's unsupported deposition testimony and assertions of honest intent did not create a genuine dispute of material fact.
- The Bankruptcy Court did not improperly resolve credibility conflicts; it assessed undisputed material facts and drew reasonable inferences supported by the record.
Key quotations
“A court considers the totality of circumstances, and a “debtor's unsupported assertions of an honest intent will not overcome the natural inferences from admitted facts.”” (Discussion)
“But Cameo offers no “hard evidence” to support his perhaps “fanciful” version of events.” (Discussion)
“For the reasons set forth above, Cameo’s appeal is denied. The Clerk of Court is directed to close the case.” (Conclusion)
Factual background
David Cameo operated Jersey Cameras 2, a third-party seller on Amazon Marketplace that sold high-end electronics. In late 2018, thousands of customers reported receiving incorrect, lower-value merchandise or nothing at all, and Amazon issued approximately $2,183,162.40 in refunds. Cameo attributed the problems to shipping-software and temporary-worker errors, but he produced no corroborating evidence of the alleged mistake, the underlying inventory, fulfillment, or shipping records, or Amazon accounting errors. The record also showed substantial transfers among businesses controlled by Cameo and family members, including transfers to his brother's company and assets benefiting Cameo and his wife.
Procedural history
Amazon commenced an adversary proceeding against Cameo after he filed a Chapter 7 bankruptcy petition. The Bankruptcy Court granted Amazon summary judgment on April 30, 2024, concluding that the debt was obtained by actual fraud and was nondischargeable. Cameo appealed to the district court, which reviewed the bankruptcy court's factual findings for clear error and legal conclusions de novo, affirmed the order and judgment, denied the appeal, and directed the Clerk to close the case.