Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 5 of 81

LAW OFFICES OF A. CHARLES PERUTO, J R.

By: Rich ar d DeSipio (#82069)
2101 Pin e St r eet
Ph iladelph ia, PA 19103
(215) 735-1010
r desipio@per u t o.com At t or n eys for Plain t iff

I N THE UNI TED STATES DI STRI CT COURT FOR THE EASTERN

DI STRI CT OF PENNSYLVANI A

J OHN BOLARI S :
Plain t iff, : CIVIL ACTION NO.
: 11-3968
vs. :
:
AMERI CAN EX PRESS COMPANY :
Defen dan t :

AMENDED COMPLAI NT

Plain t iff, Joh n Bolar is, by an d t h r ou gh h is at t or n eys, t h e Law Offices of A.

Ch ar les Per u t o, Jr ., h er eby file h is Am en ded Com plain t t o add Cou n t XI
(Violat ion s of t h e feder al Fair Cr edit Billin g Act , 15 U.S.C. § 1601) an d in su ppor t
t h er eof aver s as follows:

PARTI ES

1. Plain t iff Joh n Bolar is is an adu lt m ale r esidin g at 200 West

Wash in gt on Squ ar e, Apar t m en t 1004, Ph iladelph ia, Pen n sylvan ia
19106.
2. Defen dan t Am er ican Expr ess is a cor por at ion t h at con du ct s bu sin ess
in Ph iladelph ia Cou n t y, is licen sed t o do bu sin ess in Pen n sylvan ia,
an d is h eadqu ar t er ed at 200 Vesey St . New Yor k , New Yor k
10285-0002.

3. Am er ican Expr ess Com pan y, a for pr ofit cor por at ion , pr ovides ch ar ge
an d cr edit paym en t car d pr odu ct s, an d t r avel-r elat ed ser vices
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 6 of 81

wor ldwide. It offer s a r an ge of pr odu ct s an d ser vices, in clu din g

ch ar ge an d cr edit car d pr odu ct s t o con su m er s r esidin g in
Ph iladelph ia, Pen n sylvan ia; expen se m an agem en t pr odu ct s an d
ser vices; con su m er an d bu sin ess t r avel ser vices; st or ed valu e
pr odu ct s, su ch as Tr aveler s Ch equ es an d pr epaid pr odu ct s; n et wor k
ser vices; m er ch an t acqu isit ion , an d m er ch an t pr ocessin g, poin t -of-
sale, ser vicin g an d set t lem en t , an d m ar k et in g pr odu ct s an d ser vices
for m er ch an t s; an d fee ser vices, in clu din g m ar k et an d t r en d an alyses
alon g wit h r elat ed con su lt in g ser vices an d cu st om er loyalt y an d
r ewar ds pr ogr am s. Th e com pan y also pu blish es lu xu r y lifest yle
m agazin es. Am er ican Expr ess sells it s pr odu ct s an d ser vices t o
var iou s cu st om er gr ou ps, in clu din g con su m er s locat ed in
Ph iladelph ia, Pen n sylvan ia, sm all bu sin esses, m iddle-m ar k et
com pan ies, lar ge cor por at ion s t h r ou gh var iou s ch an n els, su ch as
dir ect m ail, on lin e, t ar get ed sales for ces, an d dir ect r espon se
adver t isin g. Am er ican Expr ess was fou n ded in 1850 an d is
h eadqu ar t er ed in New Yor k , New Yor k .

4. Am er ican Expr ess Fr au d Oper at ion s ar e locat ed at P.O. Box 981541,

El Paso, Texas 79998.

5. Am er ican Expr ess Gen er al Cou n sel’s Office is locat ed at 1801 NW 66

Aven u e, Su it e 103, Plan t at ion , FL 33313 an d Mail St op 95-10, 2900
Nor t h Com m er ce Par k way, Mir im ar , FL 33205.

6. St eph an ie Bar k ey was at all r elevan t t im es em ployed as a

Fr au d Depar t m en t Repr esen t at ive for defen dan t Am er ican Expr ess
Com pan y, an d did by act s, con du ct an d/ or om ission s, fail t o pr ot ect
Plain t iff Joh n Bolar is fr om fr au d, an d br each ed defen dan t Am er ican
Expr ess Com pan y’s con t r act wit h Joh n Bolar is.

7. P. Hopk in s was at all r elevan t t im es em ployed in t h e

Fr au d Ser vices Office for defen dan t Am er ican Expr ess Com pan y, an d
did by act s, con du ct an d/ or om ission s, fail t o pr ot ect Plain t iff J oh n
Bolar is fr om fr au d, an d br each ed defen dan t Am er ican Expr ess
Com pan y’s con t r act wit h J oh n Bolar is.

8. David N. Mor r is was at all r elevan t t im es em ployed as a

Legal An alyst in t h e Gen er al Cou n sel’s Office for defen dan t Am er ican
Expr ess Com pan y, an d did by act s, con du ct an d/ or om ission s, fail t o
pr ot ect Plain t iff J oh n Bolar is fr om fr au d, an d br each ed defen dan t
Am er ican Expr ess Com pan y’s con t r act wit h J oh n Bolar is.
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 7 of 81

9. Liwen Lian g was at all r elevan t t im es em ployed as a

Vice Pr esiden t , Risk Man agem en t , for defen dan t Am er ican Expr ess
Com pan y, an d did by act s, con du ct an d/ or om ission s, fail t o pr ot ect
Plain t iff Joh n Bolar is fr om fr au d, an d br each ed defen dan t Am er ican
Expr ess Com pan y’s con t r act wit h Joh n Bolar is.

BACK GROUND

10. Plain t iff Joh n Bolar is in cor por at es by r efer en ce t h e allegat ion s
con t ain ed in par agr aph s 1 t h r ou gh 9 as if fu lly set for t h h er ein .
11. Plain t iff Joh n Bolar is execu t ed con t r act s, in Oct ober 1990 an d
Au gu st 2004 in Ph iladelph ia, Pen n sylvan ia t o car r y, an d u se for
pu r ch ases, AMEX ch ar ge car ds t h at offer ed pr ot ect ion s for fr au d.
[See Exh ibit A]. Th e Plain t iff is u n able t o at t ach a copy of t h e
con t r act as t h ey ar e in t h e possession of Defen dan t .
12. Plain t iff Joh n Bolar is h eld AMEX Ch ar ge Car d accou n t s [-78003;
-9001; an d -1002]wit h defen dan t Am er ican Expr ess Com pan y du r in g
t h e per iod of t im e bet ween Oct ober 1990 an d May 26, 2010.
13. Am er ican Expr ess Com pan y au t h or ized an d did bu sin ess wit h Caviar
Bar , locat ed at 643 Wash in gt on Aven u e, Miam i Beach Flor ida 33139,
as a m er ch an t in t h eir AMEX ch ar ge car d syst em , t h er eby givin g
Caviar Bar access t o t h e m er ch an t ban k in g syst em an d t o Plain t iff’s
AMEX accou n t .
14. Am er ican Expr ess Com pan y pr ofit ed fr om t r an sact ion s at Caviar
Bar . Specifically, Defen dan t pr ofit ed fr om t r an sact ion s in volvin g
Plain t iff’s AMEX accou n t an d Caviar Bar , an appr oved AMEX ch ar ge
car d m er ch an t .
15. On Mar ch 28, 2010 an d Mar ch 29, 2010, Plain t iff’s accou n t
[x x x x x x x x x x 7 8 0 0 3 ] wit h defen dan t Am er ican Expr ess Com pan y was
defr au ded t welve (12) t im es [five (5) t im es in a per iod of less t h an an
h ou r an d a h alf on Mar ch 28, 2010 bet ween t h e h ou r s of 3:21am t o
4:50am , an d seven (7) t im es in less t h an t wo an d h alf h ou r s on
Mar ch 29, 2010 bet ween t h e h ou r s of 12:58am t o 3:24am ] in t h e
am ou n t of $16,517.37 an d $27,194.88 r espect ively. Tot al am ou n t of
fr au d $43,712.25. [See Exh ibit B]
16. Plain t iff’s AMEX car d was ch ar ged appr oxim at ely $2,000
eleven (11) t im es for a bot t le of win e or ch am pagn e wh ich r et ails at
bar s for n o m or e t h an $200 t o $300. Addit ion ally, t h er e is a
$2,480.00 ch ar ge for a pain t in g fr om t h e Caviar Bar . Defen dan t
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 8 of 81

Am er ican Expr ess Com pan y was fu lly awar e of t h ese obviou sly
ou t r ageou s an d absu r d ch ar ges t o Plain t iff’s accou n t . [See Exh ibit B]
17. On Mar ch 28, 2010 an d Mar ch 29, 2010, Plain t iff was t h e vict im of
t h ieves per pet r at in g an d execu t in g a fr au du len t sch em e at Caviar
Bar an d ot h er locat ion s t h r ou gh ou t sou t h er n Flor ida.
18. Plain t iff in cor por at es in fu ll, by at t ach m en t , t h e Cr im in al Com plain t
an d Affidavit in Su ppor t of Com plain t , set t in g for t h t h e Fr au du len t
Sch em e per pet r at ed again st Plain t iff, as sign ed by Alexan der V.
Tigu y, Special Agen t (Feder al Bu r eau of in vest igat ion ] an d St eph en T.
Br own , Un it ed St at es Magist r at e Ju dge for t h e Sou t h er n Dist r ict of
Flor ida. [See Exh ibit C]
19. Plain t iff, t h e vict im of fr au d, is iden t ified as “J .B.” in t h e Cr im in al
Com plain t an d Affidavit in Su ppor t of Com plain t . [See Exh ibit C]
20. Du r in g t h is t im e per iod, defen dan t Am er ican Expr ess Com pan y failed
t o n ot ify t h e Plain t iff t h at u n u su ally lar ge am ou n t of ch ar ges, wit h in
u n u su ally sh or t per iods of t im e, for facially exor bit an t ly an d absu r d
ch ar ges for t h e it em s bein g ch ar ged t o h is accou n t .
21. Defen dan t Am er ican Expr ess Com pan y t ook n o act ion t o r ect ify or
pr even t t h e r ecu r r in g fr au du len t act ivit y.
22. On Mar ch 30, 2010, Plain t iff r epor t ed t o defen dan t Am er ican Expr ess
Com pan y, wh en t h ey fin ally called Plain t iff t wo days aft er t h e st ar t of
ou t r ageou s an d obviou s fr au d, t h at t h e ch ar ges wer e n ot k n own t o or
au t h or ized by h im an d t h at h e wan t ed ch ar ges t o h is cr edit car d
st opped.
23. Plain t iff r epeat edly n ot ified an d pr ovided in for m at ion t o defen dan t
Am er ican Expr ess Com pan y t h at t h e ch ar ges t o h is accou n t
wer e fr au du len t .
24. Plain t iff m ade sever al calls an d sen t a let t er t o defen dan t Am er ican
Expr ess’ Fr au d In vest igat or s, dat ed May 10, 2010, an d did
ever yt h in g possible t o expose t h at h e was t h e vict im of
r epeat ed fr au du len t u se of h is AMEX ch ar ge car d, som et h in g t h at
wou ld be obviou s t o even an am at eu r in vest igat or u n t il Am er ican
Expr ess Com pan y’s Fr au d Ser vices Depar t m en t an d Gen er al Cou n sel
r epeat edly in su lt ed an d h u m iliat ed h im wh ile sim u lt an eou s ign or in g
t h e obviou s eviden ce of ou t r ageou s fr au d. [See Exh ibit D]
25. Despit e bein g a Am er ican Expr ess Com pan y cu st om er for over t wen t y
(20) year s wit h n o h ist or y of er r at ic pu r ch ases, Plain t iff was t old by
defen dan t St eph an ie Bar k ey t h e case fr au d in vest igat or fr om
defen dan t Am er ican Expr ess Com pan y, wh o was su bpoen aed t o
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 9 of 81

t est ify befor e t h e Gr an d Ju r y per t ain in g t o h er act ion s in t h is m at t er ,

t h at sh e h as “seen t h is a t h ou san d t im es an d you cer t ain ly look ed
lik e you wer e h avin g a good t im e.”
26. Defen dan t Am er ican Expr ess Com pan y’s Fr au d Ser vice
Repr esen t at ive Bar k ey, in con ceivably, r espon ded t o Plain t iff’s r epor t
of fr au d by t ellin g Plain t iff “all you h ave t o do is t alk t o St an [fir st
n am e r efer en ce t o cr im in ally in dict ed St an islav Pavlen k o] at Caviar
Bar – h e is ver y n ice an d will t ell you wh at you spen d m on ey on .”
27. Defen dan t Am er ican Expr ess Com pan y was pr ovided r eceipt s fr om
Caviar Bar , wh ich Am er ican Expr ess Com pan y for war ded t o Plain t iff.
Alt h ou gh t h e ou t r ageou s ch ar ges an d t im e fr am e of t h e ch ar ges
wou ld lead even an u n t r ain ed, fir st day of wor k , wit h blin der s on ,
in vest igat or t o easily see Plain t iff was t h e vict im of a scam an d
r epeat ed fr au d, defen dan t Am er ican Expr ess Com pan y t old Plain t iff
t h e r eceipt s pr ove h e was n ot defr au ded despit e t h e ou t r ageou s,
lu dicr ou s, absu r d, an d obviou sly cr im in ally fr au du len t ch ar ges t o
Plain t iff’s accou n t . [See Exh ibit B]
28. On May 20, 2010, defen dan t Am er ican Expr ess Com pan y Fr au d
Ser vices Depar t m en t in for m ed Plain t iff, via let t er , fr om Am er ican
Expr ess Com pan y em ployee P. Hopk in s t h at Am er ican Expr ess
Com pan y r efu sed t o “h an dle t h is as a fr au d dispu t e” an d in for m ed
Plain t iff: “Please be advised ou r pr eviou s decision st an ds. Th er efor e,
you m ay con sider t h is case closed.” [See at t ach ed Exh ibit E]
29. On May 26, 2010, defen dan t Am er ican Expr ess Com pan y’s Cr edit
Ser vices Depar t m en t in for m ed Plain t iff, by let t er , t h at “aft er r eview”
Plain t iff’s accou n t s en din g in 979001 (Plat in u m Car d) an d 741002
(On e fr om Am er ican Expr ess) “h ave been can celed” becau se “you ar e
u n willin g t o pay on e or m or e of t h e am ou n t s du e.” [See Exh ibit F]
30. On Ju n e 2, 2011, defen dan t Am er ican Expr ess Com pan y, via let t er ,
fr om Am er ican Expr ess em ployee Liwen Lian g, vice Pr esiden t Risk
Man agem en t , in for m ed Plain t iff t h at h is accou n t “h as been
t r an sfer r ed t o J affe & Ash er , LLP for collect ion s.” [See Exh ibit G]
31. On Ju n e 10, 2010, David N. Mor r is, Legal An alyst for
defen dan t Am er ican Expr ess Com pan y’s Gen er al Cou n sel sen t a
let t er t o cou n sel for Plain t iff, defen din g, an d aidin g an d abet t in g it s
fr au du len t m er ch an t , wh er ein defen dan t Mor r is st at ed “Th e
m er ch an t – Caviar Bar , pr ovided docu m en t at ion t o su bst an t iat e t h e
ch ar ges wh ich wer e su bm it t ed t o Am er ican Expr ess. Said docu m en t s
wer e for war ded t o you r clien t an d h e was m ade awar e of h is liabilit y
for t h e ch ar ges.” [See Exh ibit H]
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32. David Mor r is fu r t h er , t o Plain t iff’s gr eat det r im en t , pu blish ed

t h at “Th e accou n t s h ave been assign ed t o an ext er n al agen cy [J affe
& Ash er LLP] for r ecover y per t h e Ter m s an d Con dit ion s of t h e
r espect ive Car d Mem ber ’s Agr eem en t .” [See Exh ibit H]
33. To t h is day defen dan t Am er ican Expr ess Com pan y con t in u es t o
dem ean Plain t iff an d h old Plain t iff liable for t h e fr au du len t ch ar ges.
34. Defen dan t Am er ican Expr ess Com pan y pu blish ed t o cr edit an d
collect ion agen cies t h at Plain t iff’s AMEX accou n t was can celled for
n on -paym en t an d was t u r n ed over t o a collect ion agen cy.
35. Plain t iff h as been u n able t o obt ain cr edit becau se of defen dan t
Am er ican Expr ess Com pan y’s act ion s. In addit ion , Plain t iff h as
su ffer ed an d con t in u es t o su ffer fr om h u m iliat ion ,
em bar r assm en t an d fin an cial h ar m cau sed by Defen dan t ’s r epor t in g
t h at Plain t iff h as bad cr edit an d r ecor ded (on Novem ber 20, 2010) a
cr edit r epor t in g agen cy delin qu en cy again st Plain t iff despit e t h e
u n qu est ion able fact t h at Plain t iff is t h e vict im of fr au d aided by
Defen dan t ’s r eck less failu r e t o n ot ify Plain t iff of t h e fr au d an d
n egligen t in vest igat ion .
36. Plain t iff, aft er su ffer in g ext r em e em ot ion al dist r ess at h is t r eat m en t
by defen dan t Am er ican Expr ess Com pan y, n ot ified Cr im in al Bu r eau
of In vest igat ion of t h e Miam i Police Depar t m en t . Aft er con du ct in g an
in vest igat ion , t h e Miam i police r ecogn izin g t h at Plain t iff was t h e
vict im of a fr au d t u r n ed t h e case over t o t h e Feder al Bu r eau of
In vest igat ion wh o con du ct ed an in vest igat ion an d fou n d t h at t h er e
wer e fr au du len t ch ar ges t o t h e Plain t iff’s accou n t . As a r esu lt ,
Plain t iff, at h is own fin an cial expen se an d u sin g u p per son al vacat ion
t im e fr om wor k , t r aveled t o Flor ida t o pr ovide in for m at ion an d
t est im on y t o t h e police, FBI, an d gr an d ju r y.
37. On Apr il 4, 2011, as r epor t ed in t h e n at ion al m edia, followin g t h e
FBI’s in vest igat ion , an in dict m en t was h an ded down in t h e Un it ed
St at es Dist r ict Cou r t for t h e Sou t h er n Dist r ict of Flor ida ch ar gin g
St an islav Pavlen k o, Alec Sim ch u k , Mar in a Tu r cin a, an d An n a
Kilim at ova, all own er s, m an ager s, or em ployees of Caviar Bar , wit h
defr au din g Plain t iff on Mar ch 28, 2010 an d Mar ch 29, 2010 in
violat ion of Tit le 18, Un it ed St at es Code 1349 [Sch em e t o Defr au d
Usin g Wir e Com m u n icat ion s]. Th e wir e com m u n icat ion s u sed t o
defr au d Plain t iff wer e t h e appr oved wir e t r an sact ion s bet ween
Am er ican Expr ess Com pan y an d it s m er ch an t Caviar Bar .
38. Th e cr im in al in dict m en t for fr au d, as Plain t iff h as all alon g r epor t ed
t o defen dan t Am er ican Expr ess Com pan y, in volved t h e t ar get in g,
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t h eft , an d su bm it t in g ou t r ageou s an d obviou s fr au du len t ch ar ges t o

Plain t iff’s ch ar ge car d accou n t . Th e fr au du len t sch em e n et t ed over
eigh t y-eigh t vict im s, in clu din g Plain t iff. [See Exh ibit C]
39. Vict im ized by Defen dan t , Plain t iff was for ced t o h ir e an at t or n ey
(A. Ch ar les Per u t o, Jr ., Esqu ir e), at gr eat per son al expen se, wh o
wr ot e sever al let t er s, dat ed Apr il 28, 2010, May 7, 2010,
May 11, 2010, an d Ju n e 10, 2010, all of wh ich wen t ign or ed by
defen dan t Am er ican Expr ess Com pan y. [See at t ach ed Exh ibit I]
40. Defen dan t was obligat ed t o pr ovide fr au d pr ot ect ion on each an d
ever y accou n t h eld by t h e Plain t iff.
41. Defen dan t failed t o sat isfy t h eir obligat ion s t o t h e Plain t iff by
over look in g r am pan t fr au d an d r efu sin g t o com pen sat e t h e Plain t iff
for fr au du len t ch ar ges t o an d/ or wit h dr awals fr om h is accou n t .
42. Not on ly did Defen dan t fail t o sat isfy it s con t r act u al obligat ion s t o
t h e Plain t iff, Defen dan t closed Plain t iff’s accou n t s, r epor t ed Plain t iff
t o cr edit r epor t in g agen cies, t h r eat en ed legal act ion by t u r n in g t h e
m at t er over t o a collect ion agen cy t o collect t h e ver y am ou n t s t h at
t h e Defen dan t was obligat ed t o pay, an d falsely accu sed Plain t iff of
h avin g con sen t ed t o ch ar ges for wh ich h e was in act u alit y t h e vict im
of cr im in al fr au d.
43. Th is debt an d it s cor r espon din g n egat ive cr edit r at in g an d
delin qu en cy r ecor ded dest r oyed t h e Plain t iff’s fin an cial st an din g
alon g wit h h is fin an cial st abilit y.

COUNT I
BREACH OF CONTRACT
44. Th e Plain t iff in cor por at es h er ein by r efer en ce par agr aph s 1 t h r ou gh
43 above as t h ou gh fu lly set for t h at len gt h h er ein .
45. Upon open in g h is accou n t s, t h e Plain t iff en t er ed in t o a con t r act
wit h t h e Defen dan t t h at obligat ed t h e Defen dan t t o pr ovide fr au d
pr ot ect ion .
46. Th e Plain t iff is u n able t o at t ach a copy of t h ese con t r act s as t h ey
ar e in t h e possession of Defen dan t .
47. At all t im es per t in en t h er et o, t h e Plain t iff pu t h is fu ll fait h an d t r u st
in Defen dan t t o act in com plian ce wit h t h e t er m s an d con dit ion s of
t h eir r espect ive con t r act .
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48. Defen dan t br each ed it s con t r act u al du t ies an d obligat ion s wh en

it failed t o pr ot ect t h e Plain t iff fr om fr au du len t ch ar ges t o an d/ or
wit h dr aws fr om h is accou n t s.
49. Defen dan t br each ed it s con t r act u al du t ies an d obligat ion s wh en
it h eld t h e Plain t iff accou n t able for t h e fr au du len t ch ar ges t o
an d/ or 'wit h dr aws fr om h is accou n t s.
50. Defen dan t br each ed it s con t r act u al du t ies an d obligat ion s wh en it
failed t o n ot ify t h e Plain t iff t h at u n u su al act ivit y was occu r r in g on
h is accou n t s.
51. As a sole, dir ect , pr oxim at e, an d legal r esu lt of Defen dan t 's br each of
con t r act , t h e Plain t iff h as su st ain ed sever e, ser iou s, an d ir r epar able
dam ages an d h ar m .

WHEREFORE, Plain t iff r espect fu lly r equ est ju dgm en t in h is favor an d

again st Defen dan t in an am ou n t in excess of $50,000, t oget h er wit h in t er est at
t h e pr im e r at e of 3% cost s, at t or n eys' fees, com pen sat or y dam ages, con sequ en t ial
dam ages, pu n it ive dam ages, an d su ch ot h er r elief as t h is Hon or able Cou r t deem s
appr opr iat e.
COUNT I I
NEGLI GENCE
52. Th e Plain t iff in cor por at e by r efer en ce t h e allegat ion s con t ain ed in
par agr aph s 1 t h r ou gh 51 as if fu lly set for t h at len gt h h er ein .
53. Defen dan t h ad a du t y t o pr even t fr au du len t act ivit y on t h e Plain t iff'
accou n t s.
54. Defen dan t br each ed t h is du t y wh en t h ey failed t o pr even t t h e
fr au du len t act ivit y on t h e Plain t iff’s' accou n t ; failed t o n ot ify t h e
Plain t iff t h at u n u su ally lar ge am ou n t s of m on ey wer e bein g ch ar ged
t o an d/ or wit h dr awn fr om h is accou n t ; an d h eld t h e Plain t iff
accou n t able for t h e fr au du len t am ou n t s ch ar ged t o an d/ or
wit h dr awn fr om h is accou n t .
55. Defen dan t ’s act s an d/ or om ission s wer e n egligen t , car eless, an d
r eck less.
56. As a sole, dir ect , pr oxim at e, an d legal r esu lt of Defen dan t ’s
n egligen ce, car elessn ess, an d r eck lessn ess, t h e Plain t iff h as
su st ain ed sever e, ser iou s, an d ir r epar able dam ages an d h ar m .
57. Defen dan t ’s con du ct con st it u t es t h e t ype of in t en t ion al, m aliciou s,
willfu l, wan t on , an d ou t r ageou s con du ct t h at war r an t s an awar d of
pu n it ive dam ages in favor of t h e Plain t iff an d again st Defen dan t .
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 13 of 81

WHEREFORE, Plain t iff r espect fu lly r equ est ju dgm en t in h is favor an d

again st Defen dan t in an am ou n t in excess of $ 50,000, t oget h er wit h
in t er est at t h e pr im e r at e of 3% cost s, at t or n eys' fees an d su ch ot h er r elief
as t h is Hon or able Cou r t deem s appr opr iat e.

COUNT I I I
FRAUDULENT MI SREPRESENTATI ON
58. Th e Plain t iff in cor por at es by r efer en ce t h e allegat ion s con t ain ed in
par agr aph s 1 t h r ou gh 57 as if fu lly set for t h h er ein .
59. Defen dan t k n ew or sh ou ld h ave k n own t h at t h e Plain t iff wan t ed
accou n t s secu r e fr om fr au du len t ch ar ges an d wit h dr awals.
60. Defen dan t k n ew or sh ou ld h ave k n own t h at t h e Plain t iff did n ot
h ave an y special k n owledge in t h ese m at t er s an d wou ld r ely solely
u pon it s gu ar an t ees of pr ot ect ion , advice, st at em en t s, an d
r ecom m en dat ion s.
61. Defen dan t owed a du t y of car e t o t h e Plain t iff.
62. Defen dan t m ade t h e m isr epr esen t at ion t h at t h e Plain t iff' accou n t s
wou ld be secu r e fr om fr au du len t act ivit y an d, if a br each occu r r ed,
Defen dan t wou ld n ot h old t h e Plain t iff accou n t able for t h e
fr au du len t am ou n t s ch ar ged t o an d/ or wit h dr awn fr om h is
accou n t s.
63. Defen dan t k n ew or sh ou ld h ave k n own t h at t h eir r epr esen t at ion was
u n t r u e.
64. Defen dan t s m ade t h is m isr epr esen t at ion wit h t h e in t en t ion t o in du ce
t h e Plain t iff in t o open in g an accou n t wit h Defen dan t .
65. Had t h e Defen dan t n ot m ade t h e m isr epr esen t at ion t h at t h e
accou n t s wou ld be secu r e fr om fr au d an d, if t h ey wer e n ot , t h e
Plain t iff wou ld n ot be h eld r espon sible for t h e fr au du len t am ou n t s
ch ar ged t o an d/ or wit h dr awn fr om t h eir accou n t s, t h e Plain t iff
wou ld n ot h ave open ed an accou n t wit h Defen dan t .
66. As a dir ect an d pr oxim at e r esu lt of t h e afor esaid act s of Defen dan t ,
t h e Plain t iff su ffer ed, an d will con t in u e t o su ffer , m on et ar y dam ages,
n egat ive cr edit r at in g, loss of cr edit , m en t al an gu ish , h u m iliat ion ,
em bar r assm en t , legal fees, loss of r espect , sh am e, an d loss of
en joym en t of life, all t o h is det r im en t .
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 14 of 81

67. Th e Plain t iff is seek in g com pen sat or y dam ages, pu n it ive dam ages,
cost s, at t or n eys' fees, an d addit ion al r elief as t h e Cou r t deem s
n ecessar y.

WHEREFORE, Plain t iffs r espect fu lly r equ est ju dgm en t in h is favor an d

again st Defen dan t in an am ou n t in excess of $ 50,000, t oget h er wit h in t er est at
t h e pr im e r at e of 3%, cost s, at t or n eys' fees an d su ch ot h er r elief as t h is Hon or able
Cou r t deem s appr opr iat e.

COUNT I V
NEGLI GENT MI SREPRESENTATI ON
68. Th e Plain t iff in cor por at es by r efer en ce t h e allegat ion s con t ain ed in
par agr aph s 1 t h r ou gh 67 as if fu lly set for t h h er ein .
69. Defen dan t k n ew or sh ou ld h ave k n own t h at t h e Plain t iff wan t ed
accou n t s secu r e fr om fr au du len t ch ar ges an d wit h dr awals.
70. Th e Defen dan t k n ew or sh ou ld h ave k n own t h at t h e Plain t iff did n ot
h ave an y special k n owledge in t h ese m at t er s an d wou ld r ely solely
u pon it s gu ar an t ees, advice, st at em en t s, an d r ecom m en dat ion s.
71. Defen dan t owed a du t y of car e t o t h e Plain t iff.
72. Defen dan t m ade t h e m isr epr esen t at ion t h at Plain t iff’s accou n t s
wou ld be secu r e fr om fr au du len t act ivit y an d, if a br each occu r r ed,
it wou ld n ot h old t h e Plain t iff accou n t able for t h e fr au du len t
am ou n t s ch ar ged t o an d/ or wit h dr awn fr om h is accou n t s.
73. Defen dan t s k n ew t h at it s r epr esen t at ion was u n t r u e an d/ or failed t o
m ak e a r eason able in vest igat ion of t h e t r u t h of it s r epr esen t at ion ,
74. Defen dan t m ade t h is m isr epr esen t at ion wit h t h e in t en t of in du cin g
t h e Plain t iff t o open accou n t s wit h Defen dan t .
75. Had t h e Defen dan t n ot m ade t h e m isr epr esen t at ion t h at t h e
accou n t s wou ld be secu r e fr om fr au d an d, if t h ey wer e n ot , t h e
Plain t iff wou ld n ot be h eld r espon sible for t h e fr au du len t am ou n t s
ch ar ged t o an d/ or wit h dr awn fr om t h eir accou n t s, t h e Plain t iff
wou ld n ot h ave open ed an accou n t wit h t h e Defen dan t .
76. As a dir ect an d pr oxim at e r esu lt of t h e afor esaid act s of Defen dan t ,
t h e Plain t iff su ffer ed, an d will con t in u e t o su ffer , m on et ar y dam ages,
n egat ive cr edit r at in g, legal fees, m en t al an gu ish , h u m iliat ion ,
em bar r assm en t , loss of r espect , sh am e, an d loss of en joym en t of life,
all t o h is det r im en t .
 Case 2:11-cv-03968-JP Document 9 Filed 07/19/11 Page 15 of 81

WHEREFORE, Plain t iff r espect fu lly r equ est ju dgm en t in h is favor an d

again st Defen dan t in an am ou n t in excess of $ 50,000, t oget h er wit h
in t er est at t h e pr im e r at e of 3% cost s, at t or n eys' fees, pu n it ive dam ages an d
su ch ot h er r elief as t h is Hon or able Cou r t deem s appr opr iat e.

COUNT V
BREACH OF FI DUCI ARY DUTY
77. Th e Plain t iff in cor por at es by r efer en ce t h e allegat ion s con t ain ed in
par agr aph s I t h r ou gh 76 as if fu lly set for t h h er ein .
78. Defen dan t k n ew or sh ou ld h ave k n own t h at t h e Plain t iff wan t ed
accou n t s secu r e fr om fr au du len t ch ar ges an d wit h dr awals.
79. Th e Defen dan t k n ew or sh ou ld h ave k n own t h at t h e Plain t iff did n ot
h ave an y special k n owledge in t h ese m at t er s an d wou ld r ely solely
u pon t h eir advice, st at em en t s, an d r ecom m en dat ion s.
80. Th e Defen dan t owed a fidu ciar y du t y t o t h e Plain t iff
81. Defen dan t m ade t h e m at er ial m isr epr esen t at ion t h at t h e Plain t iff’’s
accou n t s wou ld be secu r e fr om fr au du len t act ivit y an d, if a br each
occu r r ed, it wou ld n ot h old t h e Plain t iff accou n t able for t h e
fr au du len t am ou n t s ch ar ged t o an d/ or wit h dr awn fr om h is
accou n t s.
82. Had t h e Defen dan t n ot m ade t h e m isr epr esen t at ion t h at t h e
accou n t s wou ld be secu r e fr om fr au d an d, if t h ey wer e n ot , t h e
Plain t iff wou ld n ot be h eld r espon sible for t h e fr au du len t am ou n t s
ch ar ged t o an d/ or wit h dr awn fr om t h eir accou n t s, t h e Plain t iff
wou ld n ot h ave open ed an accou n t wit h t h e Defen dan t .
83. As a dir ect an d pr oxim at e r esu lt of t h e afor esaid act s of Defen dan t ,
t h e Plain t iff su ffer ed, an d will con t in u e t o su ffer , m on et ar y dam ages,
n egat ive cr edit r at in g, legal fees, m en t al an gu ish , h u m iliat ion ,
em bar r assm en t , loss of r espect , sh am e, an d loss of en joym en t of life,
all t o h is det r im en t .
84. Th e Plain t iff is seek in g com pen sat or y dam ages, pu n it ive dam ages,
cost s, at t or n eys' fees, an d addit ion al r elief as t h e Cou r t deem s
n ecessar y.

WHEREFORE, Plain t iffs r espect fu lly r equ est ju dgm en t in h is favor an d

again st Defen dan t s in an am ou n t in excess of $ 50,000, t oget h er wit h in t er est at
t h e pr im e r at e of 3% cost s, at t or n eys' fees, pu n it ive dam ages an d su ch ot h er r elief
as t h is Hon or able Cou r t deem s appr opr iat e.