Adverse interest and conduct of officers
Official text prohibited actmental stateif conditionpenaltylegal term
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 and shall forfeit the person's office, which shall thereupon become vacant.
History: (June 25, 1948, ch. 645, 62 Stat. 690 (PDF, 39 MB); Pub. L. 95–598, title III, §314(a)(2), (e)(1), (2), Nov. 6, 1978, 92 Stat. 2676 (PDF, 21 MB), 2677; Pub. L. 103–322, title XXXIII, §330016(1)(G), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB); Pub. L. 103–394, title III, §312(a)(1)(A), Oct. 22, 1994, 108 Stat. 4139 (PDF, 6.5 MB); Pub. L. 104–294, title VI, §601(a)(1), Oct. 11, 1996, 110 Stat. 3497.)
Simplified explanation
It is a federal crime for a bankruptcy trustee, custodian, marshal, or other court officer to buy property from an estate they are in charge of. It is also a crime for them to refuse to let interested parties (when a court orders it) or the U.S. Trustee reasonably inspect the estate's documents and accounts.