This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
Background and question before the Court
According to Merit Management Group, LP, the dispute centers on whether intermediate transfers in a fraudulent scheme can be avoided along with the ultimate transfer.
Justice Ginsburg asked why it matters whether the transmission was through the banks rather than handed over by Valley View to Merit.
What each side argues
Merit Management Group, LP (Petitioner)
According to Merit Management Group, LP, merit argues that the transfers are fraudulent and that the intermediate transfers cannot be separated from the overall end‑to‑end transfer; avoiding the overall transfer would necessarily avoid the intermediate transfers as well.
FTI Consulting, Inc. (Respondent)
FTI, through counsel Mr. Clement, contended that the statutory provision is very narrow and protects the customer only when the bank acts as an agent or custodian.
According to Mr. Clement, FTI further argues that even if they attempted to avoid the intermediate transfers, such a strategy would not succeed.
What happened at oral argument
According to Justice Ginsburg, justice Ginsburg: Why should it matter whether the transmission was through the banks rather than handed over by Valley View to Merit?
According to Justice Gorsuch, justice Gorsuch: Can you help me out with what happens to the law of preferences under your interpretation?
According to Justice Kagan, justice Kagan: Could I take you back to Justice Alito's question, perhaps just put a little bit of a different spin on it?
According to Chief Justice Roberts, chief Justice Roberts: What if the trustee—would there be situations in which it would make sense for the trustee to want to avoid one of the intermediary transfers rather than simply the ultimate one?
According to Justice Kennedy, justice Kennedy: If we were writing the opinion to accept your proposition, how would we qualify it?
Justice Gorsuch: So—but, Mr. Clement, on that, I assume your friend will get up and say, well, a lot of those charitable contributions are by check, and those aren't covered.
- [1] 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdf, p. 6
- [2] 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdf, p. 25
- [3] 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdf, p. 28
- [4] 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdf, p. 39
- [5] 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdf, p. 44
- [6] 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdf, p. 56
What the Court decided
Why it matters
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 73745e25e48e6545a959-r1-4b2f37aab100af1b.pdforal argument transcript
Guide generated September 26, 2026. Automated validation accepted this version.