The determination of whether a creditor is an insider for preference purposes is a mixed question of law and fact. A person may be an insider of a debtor either as: (i) a "person in control" of the debtor or (ii) a non-statutory insider.

To be an insider under category (i), actual control (or its close equivalent) is necessary. Actual control of the debtor is not necessary to establish that a creditor is a non-statutory insider. A creditor's ability to coerce a debtor into transactions not in the debtor's interest can establish that the creditor is a non-statutory insider.

While mere aggressive enforcement of a debt does not ordinarily establish insider status, when a creditor is able to dominate a debtor and require the debtor to affirmatively engage in new, non-arms length transactions that benefit the creditor and are not the debtor, insider status can be established.