In re: Tamio Lucien Stehrenberger AND Anna Christine Stehrenberger, 23-1207

Michiko Stehrenberger loaned money to her brother Tamio and his wife Anna to invest, later formalizing the investment through promissory notes with Star Mountain Enterprises, LLC, which Tamio and Anna managed.
Following an unsuccessful investment and a soured business relationship, Michiko sued Tamio and Anna in state court for securities fraud and related claims, but the proceedings were interrupted by Tamio and Anna's Chapter 7 bankruptcy filing.
Michiko initiated adversary proceedings in bankruptcy court, seeking to have certain debts declared nondischargeable under 11 U.S.C. § 523(a)(2), (4), (6), and (19), including claims based on misrepresentation and securities law violations.
The bankruptcy court dismissed all of Michiko's claims, holding she failed to meet her burden of proof for nondischargeability, and ruled it could not independently determine securities violations under § 523(a)(19), citing precedent that only a non-bankruptcy forum could do so.
On appeal, Michiko challenged both substantive rulings and procedural decisions—including the bankruptcy court's denial of her request to file documents electronically.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether § 523(a)(19) requires a non-bankruptcy forum judgment for securities violations	Bankruptcy court can decide securities law liability	Only non-bankruptcy courts can make this determination	Bankruptcy court can determine liability under § 523(a)(19); remanded for new proceedings
Whether heightened state law duty for securities applies to bankruptcy nondischargeability claims	Utah law imposes higher securities disclosure duties	Federal law controls nondischargeability standards	Federal law applies; no heightened state law standard required
Whether factual findings under § 523(a)(2)(B) (fraud re: EAG loan) were clearly erroneous	Bankruptcy court ignored evidence of Tamio’s misrepresentation	EAG relied on collateral, not the misrepresentation	Findings not clearly erroneous; court’s credibility judgments upheld
Whether denying electronic filing access was an abuse of discretion	Pro se litigant should have equal access	Discretionary court management decision	No abuse of discretion; no prejudice to Michiko

Grogan v. Garner, 498 U.S. 279 (standard for burden of proof in nondischargeability actions)
Anderson v. City of Bessemer City, 470 U.S. 564 (deference to trial court fact-finding)
Robinson v. Shell Oil Co., 519 U.S. 337 (statutory interpretation begins and ends with unambiguous text)
Saldivar v. Sessions, 877 F.3d 812 (plain meaning of the word "any" in statutory interpretation applied expansively)