18 U.S.C. § 154

Adverse interest and conduct of officers

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A person who, being a custodian, trustee, marshal, or other officer of the court—(1) knowingly purchases, directly or indirectly, any property of the estate of which the person is such an officer in a case under title 11;(2) knowingly refuses to permit a reasonable opportunity for the inspection by parties in interest of the documents and accounts relating to the affairs of estates in the person’s charge by parties when directed by the court to do so; or(3) knowingly refuses to permit a reasonable opportunity for the inspection by the United States Trustee of the documents and accounts relating to the affairs of an estate in the person’s charge,shall be fined under this title and shall forfeit the person’s office, which shall thereupon become vacant.(June 25, 1948, ch. 645, 62 Stat. 690; Pub. L. 95–598, title III, § 314(a)(2), (e)(1), (2), Nov. 6, 1978, 92 Stat. 2676, 2677; Pub. L. 103–322, title XXXIII, § 330016(1)(G), Sept. 13, 1994, 108 Stat. 2147; Pub. L. 103–394, title III, § 312(a)(1)(A), Oct. 22, 1994, 108 Stat. 4139; Pub. L. 104–294, title VI, § 601(a)(1), Oct. 11, 1996, 110 Stat. 3497.)Historical and Revision Notes

Based on section 52(c) of title 11, U.S.C., 1940 ed., Bankruptcy (July 1, 1898, ch. 541, § 29c, 30 Stat. 554; June 22, 1938, ch. 575, § 1 (part), 52 Stat. 856).

Minor changes were made in phraseology.

Editorial NotesAmendments

1996—Pub. L. 104–294 substituted “fined under this title” for “fined not more than $5,000” in closing provisions.

1994—Pub. L. 103–394 amended section generally. Prior to amendment, section read as follows:

“Whoever, being a custodian, trustee, marshal, or other officer of the court, knowingly purchases, directly or indirectly, any property of the estate of which he is such officer in a case under title 11; or

“Whoever being such officer, knowingly refuses to permit a reasonable opportunity for the inspection of the documents and accounts relating to the affairs of estates in his charge by parties in interest when directed by the court to do so—

“Shall be fined under this title, and shall forfeit his office, which shall thereupon become vacant.”

Pub. L. 103–322 substituted “fined under this title” for “fined not more than $500” in third par.

1978—Pub. L. 95–598 struck out “referees and other” before “officers” in section catchline, and in text struck out “Whoever knowingly acts as a referee in a case in which he is directly or indirectly interested; or” before “Whoever, being a” and “referee, receiver,” before “custodian” and substituted “case under title 11” for “bankruptcy proceeding”.

Statutory Notes and Related SubsidiariesEffective Date of 1994 Amendment

Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of Title 11.

Effective Date of 1978 Amendment

Amendment by Pub. L. 95–598 effective Oct. 1, 1979, see section 402(a) of Pub. L. 95–598, set out as an Effective Date note preceding section 101 of Title 11, Bankruptcy.

Savings Provision

Amendment by section 314 of Pub. L. 95–598 not to affect the application of chapter 9 (§ 151 et seq.), chapter 96 (§ 1961 et seq.), or section 2516, 3057, or 3284 of this title to any act of any person (1) committed before Oct. 1, 1979, or (2) committed after Oct. 1, 1979, in connection with a case commenced before such date, see section 403(d) of Pub. L. 95–598, set out as a note preceding section 101 of Title 11, Bankruptcy.

Notes of Decisions

Cited in 29 cases (1 in the last 5 years), 1933–2026 · leading case: In Re Q.P.S., Inc.

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In Re Q.P.S., Inc. (1989) tnwb · cites it 2× “This public policy is clearly expressed in 18 U.S.C. § 154 , 5 which makes it a criminal misdemeanor for the trustee or other officer of the court to purchase, directly or indirectly, properties of the bankruptcy estate.”

Karbach Enterprises v. Exennium, Inc. (In Re Exennium, Inc.) (1982) bap9 · cites it 2× “An attorney of record in a bankruptcy case, including an attorney for the debtor, is of course an officer of the court. Taken together, these principles have produced the following rule in the Ninth Circuit: Where the property is in possession of the bankruptcy court, an…”

United States v. James H. Herzog (1981) ca8 “In addition, appellant agreed to plead guilty to an information charging him with violating 18 U.S.C. § 154 , which prohibits self-dealing by a trustee.”

Matter of Cropper Co., Inc. (1983) gamb “18 U.S.C.A. § 154 (West 1969 & Supp.1983) provides: Whoever, being a custodian, trustee, marshal, or other officer of the court, knowingly purchases, directly or indirectly, any property of the estate of which he is such officer in a case under title 11; or [[Image here]] Shall…”

Cassibry v. State (1981) miss “To name a few, under the following statutes it is a federal crime: (a) to act as referee in bankruptcy in a case in which he is "directly or indirectly interested" ( 18 U.S.C. § 154 , as amended); (b) for former officials of the U.”

Wagner v. Key Bank of Alaska (1993) alaska · cites it 2× “18 U.S.C. § 154 (1988). Federal courts have treated a debtor-in-possession as either a "trustee" or "officer of the court" in applying this statute.”

Salazar v. McCormick (In Re Crestview Funeral Home, Inc.) (2002) nmb · cites it 3× “Pursuant to 18 U.S.C. § 154 , sales of bankruptcy estate property to a trustee or other officer of the court involved in the case are prohibited.”

In Re Grodel Manufacturing, Inc. (1983) ctb · cites it 2× “” 2 The obvious rationale be *696 hind this policy is not only to protect estates from fraudulent and collusive transactions but to prevent even the appearance of impropriety which might undermine public confidence in the judicial process.”

In Re Lowry Graphics, Inc. (1988) txsb “He is also to “file the list, schedule, and statement required under Section 521(a) of this title,” 11 U.”

Matter of Sauer (1995) nebraskab · cites it 2× “” 18 U.S.C. § 154 . DISCUSSION I conclude that by entering into the described transaction, whereby she purchased former property of the bankruptcy estate, Pruss lost eligibility to serve as debt- or’s counsel because she is no longer disinterested.”

Lange v. Schropp (In Re Brook Valley IV) (2006) bap8 “at 802 (citing 18 U.S.C. § 154 ; In re Frazin & Oppenheim, 181 F.”

In Re Lucio F. RUSSO, Bankrupt. Avery J. GROSS, Appellant, Cross-Appellee, v. Tina RUSSO, Appellee, Cross-Appellant (1985) ca2 “However, criminal sanctions are provided in the Bankruptcy Chapter of the Code of Crimes and Criminal Procedure, 18 U.S.C. § 154 , which make it unlawful for a present trustee to purchase the property of the estate: “Whoever, being a custodian, trustee, marshal, or other officer…”

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