The Court held that a Georgia state court judgment was nondischargeable under 11 U.S.C. § 524(a)(4).  The Court, relying on In re Ansari, 113 F.3d 17 (4th Cir. 1997) and In re Uwimana, 274 F.3d 806 (4th Cir. 2001), concluded that defalcation occurs when a fiduciary fails to properly account for funds or money held in a fiduciary capacity.  Further, it is sufficient for a finding of defalcation if the funds are missing due to negligence or an innocent mistake on the part of the fiduciary.  In the case of defalcation, once a plaintiff has shown that the defendant serves or served in a fiduciary capacity and that money or other property entrusted to the fiduciary for the benefit of the plaintiff is missing, the burden shifts to the defendant to properly account for the missing property. 

The defendant used assets in a Trust to fund business ventures owned by himself and his family.  The evisceration of the Trust was due to willful and deliberate conduct of the Defendant in his capacity as a trustee, which was calculated and intended to cause harm and loss to the plaintiff.  The defendant did not adequately explain his decision to invest trust assets in his own high-risk small businesses.  Accordingly, the Court held that the Georgia state court judgment was nondischargeable under 11 U.S.C. § 524(a)(4).