Plaintiffs needed funding for a condominium development project, and went to debtor, in his capacity as president of an escrow company, to obtain "offshore" funding. Ultimately, the expected funding did not come through, and plaintiffs lost their commitment fee, which debtor had paid on their behalf to the lender. Plaintiffs filed an adversary complaint in debtor's bankruptcy, alleging non-dischargeability under 11 U.S.C. § 523(a)(2)(A) and (a)(4). With respect to plaintiffs' fraud claim, the court held that no fraudulent intent had been shown. The court then considered the fiduciary defalcation claims, ruling that only one of plaintiffs' two fiduciary claims involved fiduciary duty, which was debtor's alleged mishandling of plaintiffs' funds. The court concluded that debtor's promise to pledge accounts receivable to cover plaintiffs' funds if their loan was not funded was not fiduciary in nature, despite it being a duty that was imposed by the same contract as debtor's fiduciary duty, since the claim did not involve placement of property into debtor's custody. Rather, promises made by debtor regarding his or his company's money were contractual only. Finally, the court determined that plaintiffs had failed to show a defalcation in debtor's handling of their commitment fee since debtor had, in fact, paid the money to the lender as he was instructed to do in the parties' contract. Judgment was entered in favor of debtor.