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Panel finds sufficient evidence that she participated in fraud with Mike Wigley


The wife of Taxpayers League founder Michael Wigley participated in fraud when she helped him hide assets during bankruptcy proceedings, the U.S. 8th Circuit of Appeals affirmed Monday.

Therefore, Barbara A. Wigley must pay more than $1 million to the landlord of Michael Wigley’s defunct restaurant company, Baja Sol Cantina E.P., L.L.C., the court found.

Barbara Wigley maintained that she was protected from Lariat Companies, Inc.’s claim by a court-approved “landlord cap.” That cap, she claimed, limited her damages to the $330,886 she already has paid Lariat.

Not so, 8th Circuit Judge Roger Leland Wollman wrote for a unanimous panel. His court affirmed that a fraudulent transfer debt is non-dischargeable—cannot be eliminated—by a landlord cap under the federal Bankruptcy Code, 11 U.S.C. § 502(b)(6).

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