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JEFFER MANGELS BUTLER & MITCHELL LLP


THOMAS M. GEHER (Bar No. 130588)
1900 Avenue of the Stars, Seventh Floor
Los Angeles, California 90067-4308
Telephone:
(310) 203-8080
Facsimile:
(310) 203-0567
Email:
tgeher@jmbm.co111
Attomeys for Defendants The International Association of
Scientologists, IAS Administrations, Inc. and U.S. IAS Members'
TIllst
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
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FOR THE COUNTY OF LOS ANGELES
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THOMAS PROVENZANO, an individual, and


RODNEY RUHLA1\TD,an individual,

CASE NO. BC 518021

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Plaintiffs,

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v.
RICHARD ACUNTO, an individual,
INSURESUITE, INC., a Delaware corporation
registered as a foreign corporation in California,
SURVIVAL INSURANCE, INe., a California
corporation, OCEAN FINANCIAL
HOLDINGS, INe., a California corporation,
GGIS INSURANCE SERVICES, INe., a
California corporation doing business as
GUARDIAN GENERAL INSURANCE
SERVICES, THE INTERNATIONAL
ASSOCIATION OF SCIENTOLOGISTS, an
English non-profit corporation doing business
in California; IAS ADMINISTRATIONS,
INC., a Delaware corporation registered in
California, U.S. IAS MEMBERS' TRUST, a
California trust, and DOES 1 to 50, inclusive,

23
Defendants,

EVIDENCE IN SUPPORT OF MOTION OF


DEFENDANTS THE INTERNATIONAL.
ASSOCIATION OF SCIENTOLOGISTS,
IAS ADl\flNISTRATIONS,
INC., AND U.S.
IAS MEMBERS' TRUST FOR SUMMARY
ADJUDICATION RE (A) FIFTH AND
SIXTH CAUSES OF ACTION OF SECOND
AMENDED COMPLAINT AND (B)
AFFIRMATIVE DEFENSE RE STATUTE
OF LIMITATIONS (DEFENDANTS'
SECOND, THIRD AND FOURTH
AFFIRMATIVE DEFENSES)
Date:
Time:
Dept:
Judge:

May 4,2015
8:30 a.111.
36
Hon. Gregory W. Alarcon

Complaint Filed:
Trial Date:

August 12, 2013


January l3, 2016

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PRINTED ON
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LA 11657765vl

IAS DEFENDANTS'

EVIDENCE ISO MOTION FOR SUMMARY ADJDDICATION

TABLE OF CONTENTS
EXHIBIT 1:

Declaration of Mislav Raos In Support of Motion of Defendants The


International Association of Scientologists, IAS Administrations,
Inc., and U.S. IAS Members' Trust For Summary Adjudication Re
(A) Fifth and Sixth Causes of Action of Second Amended Complaint
and (B) MfirmativeDefense Re Statute of Limitations (Defendants'
Second, Third and Fourth Affirmative Defenses)

EXHIBIT 2: /'

Declaration of Thomas M. Geher In Support of Motion of


Defendants The International Association Of Scientologists, IAS
Administrations, Inc., and U.S. IAS Members' Trust For Summary
Adjudication Re (A) Fifth and Sixth Causes of Action of Second
Amended Complaint and (B) Affirmative Defense Re Statute of
Limita.tions (Defendants' Second, Th.ird and Fourth. Affirmative
Defenses)

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ExhibitAl

Complaint For: (1) Breach of Contract (2) Breach of Fiduciary Duty (3)
Constructive Fraud (4) Actual Fraud (5) Set Aside Fraudulent Transfer
(6) Equitable Tracing, Constructive Trust & Equitable Lien (7) Breach of
Business & Professions Code Section 17200

Exhibit B:

First Amended Complaint For: (1) Breach of Contract (2) Breach of


Fiduciary Duty (3) Constructive Fraud (4) Actual Fraud (5) Set Aside
Fraudulent Transfer (6) Equitable Tracing, Constructive Trust &
Equitable Lien (7)Breach of Business & Professions Code Section 17200

Exhibit C

Stipulation Re Bifurcation of Causes of Action and (proposed) Order'


Relating Thereto

Exhibit D

Order Approving Stipulation Re Bifurcation of Causes of Action and


(proposed) Order Relating Thereto

ExhibitE

Second Amended Complaint For: (1) Breach of Contract (2) Breach of


Fiduciary Duty (3) Constructive Fraud (4) Actual Fraud (5) Set Aside
Fraudulent Transfer (6) Equitable Tracing, Constructive Trust &
Equitable Lien (7)Breach of Business & Professions Code Section 17200

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Exhibit F

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ptr

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Exhibit G

Answer of Defendants The International Association of Scientologists,


IAS Administrations, Inc. and U.S. IAS Members' Trust to Second
Amended Complaint
/Dec1arations
of Thomas Provenzano, Rodney Ruhland and Glen
Provenzano Filed in Support of Requests for Default Judgments (Court)
Against Defendants: (1) Richard Acunto, (2) Insuresuite, Inc., (3)
Survival Insurance, L'1c.,(4) Ocean Financial Holdings, Inc. and Exhibits

PRlNTEDON

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RECYCLED PAPER
LA 11657765vl

IAS DEFENDANTS'

EVIDENCE

ISO MOTION FOR SUMMARY

ADJUDICATION

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Exhibit H /

Ruling Re: Default Prove-Up Papers Lodged By Plaintiffs

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DATED: February

t ,2015

JEFFER MANGELS BUTLER & MITCHELL LLP

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BY~

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,I TOMAS M. GEHER
Attorneys for Defendants THE INTERt..JATIONAL
ASSOCIATION OF SCIENTOLOGISTS, IAS
AD.MINISTRATIONS, INe. ANTI U.S. IAS
MEl\.ffiERS' TRUST

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PRINTED ON
RECYCLED PAPER
LA 11657765vl

LA.SDEFENDANTS'

EVIDENCE ISO MOTION FOR SUMMARY ADJUDICATION

Exhibit 1

JEFFER MANGELS BUTLER & MITCHELL LLP


THOMAS M. GEHER (Bar No. 130588)
1900 Avenue of the Stars, Seventh Floor
Los Angeles, California 90067-4308
Telephone:
(310) 203-8080
Facsimile:
(310) 203-0567
Emai1:
tgeher@jmbm.com

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Attorneys for Defendants The International Association of


Scientologists, IAS Administrations, Inc. and U.S. IAS Members'
Trust

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SUPERIOR COURT OF THE STATE OF CALIFORNIA


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FOR THE COUNTY OF LOS ANGELES
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THOMAS PROVENZANO, an individual, and


RODNEY RUHLAND, an individual,

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Plaintiffs,

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CASE NO. BC 518021

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RICRARD ACUNTO, an individual,


INSURESUITE, INC., a Delaware corporation
registered as a foreign corporation in California,
SURVIVAL INSURANCE, INC., a California
corporation, OCEAN FINANCIAL
HOLDINGS, INC., a California corporation,
GGIS INSURANCE SERVICES, INC., a
California corporation doing business as
GUARDIAN GENERAL INSURANCE
SERVICES, THE INTERNATIONAL
ASSOCIATION OF SCIENTOLOGISTS, an
English non-profit corporation doing business
in California; IAS ADMINISTRATIONS,
INC., a Delaware corporation registered in
California, U.S. IAS MEMBERS' TRUST, a
California trust, and DOES 1to SO, inclusive,

DECLAR..-\TION OF MISLAV RAOS IN


SUPPORT OF MOTION OF DEFENDANTS
THE INTERNATIONAL ASSOCIATION OF
SCIENTOLOGISTS,
IAS
ADMINISTRATIONS,
INC., AND U.S. !AS
lVIElVIBERS' TRUST FOR SUMMARY
ADJUDICATION RE (A) FIFTH AND
SIXTH CAUSES OF ACTION OF SECOl\TJ)
AMEl\TJ)ED COIVIPLAINT AND (B)
AFFIRMATIVE DEFENSE RE STATUTE
OF LIMITATIONS (DEFENDANTS'
SECOND, THIRD AND FOURTH
AFFIRlVIA TIVE DEFENSES)
Date:
Time:
Dept:
Judge:

May 4, 2015
8:30 a.m.
36
Bon. Gregory W. Alarcon

23
Defendants.
24

Complaint Filed:
Trial Date:

August 12.2013
January 1:3,2016

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----------------------------------

RAOS DECLARATION

ISO MOTION FOR SUMMARY ADJUDICATION

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DECLARATION OF MISLAV RAOS


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I, Mislav Raos, declare:

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I am a Director and the Secretary of Defendant LAS Administrations,

Inc.

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("IAS Admin").

I am over the age of 18. All facts stated herein are known by me to be true

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Defendant International Association of Scientologists ("IAS"), and Defendant

Trust ("IAS Trust", and together with IAS and IAS Admin, collectively, "IAS Defendants"), and I

would and could competently testify thereto in a COUli of law if called upon to do so.

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In my position

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Admin

as its

Secretary

IAS Members'

my

duties

and

responsibilities include responsibility for maintaining its corporate records, including all records
concerning donations made, as well as serving as the corporation's primary staff member for legal

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through my own personal knowledge, or from my review of the business records of IAS Admin,

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affairs. In that capacity, I have direct supervisory

authority over IAS Admin staff who are

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personally and directly responsible with the origination and maintenance

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records, including, but by no means limited to, its financial records and records of donations made.

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3.

of the corporation's

IAS and IAS Trust have only directors and trustees, respectively, and do not

have any administrative staff or employees or even officers. The day to day activities of IAS and
IAS Trust are performed and conducted by IAS Admin and its staff, under the direction and control

20
of me and IAS Admin's other officers, pursuant to written service agreements with IAS and IAS
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Trust. Among the duties and functions which IAS Admin performs for IAS and IAS Trust (as well

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as for itself) is the receipt, recordation,

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payments (including donations) made to IAS and IAS Trust (and to IAS Admin).

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4.

documentation

and memorialization

All information with respect to each and every donation received by any of

IAS Admin, IAS and IAS Trust, i.e., name of donor, name of recipient of donation (IAS, IAS Trust
or IAS Admin),

date of donation and amount of donations,

is recorded,

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PRlNTEDON
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LA 11636885\'3

of all financial

- 2RAOS DECLARA nON ISO MOTION FOR SUMMARY ADJUmCA TION

documented

and

memorialized by the staff of IAS Admin and contained in the written records of IAS Admin, IAS,

and lAS Trust, respectively, which records are prepared by such staff and maintained by IAS

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Admin. I am the custodian of, and have access to, all of the written records of IAS Admin, lAS,
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and lAS Trust concerning donations received by any of them.

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Each time IAS Admin, IAS and IAS Trust, or any of them, receive a donation, that donation is

documented by IAS Admin and its staff and such record/document

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and every donation, the name of the donor, name of the recipient of donation (lAS, IAS Trust or

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IAS Admin), date of the donation and the amount of the donation. With respect to these respective
records/writings

of IAS Admin, IAS and IAS Trust documenting and recording all donations

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contains, with respect to each

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include writings and records documenting all donations made to IAS Admin, IAS and lAS Trust.

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The business records and documents of lAS Admin, IAS and lAS Trust

received by any of them, (a) such records/writings were made in regular and ordinary course of the

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business of IAS Admin, IAS and IAS Trust, and (b) such records/writings were made at or near the

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time of the receipt of each and every donation received.

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6.

Based upon my review of the business records of IAS Admin, IAS and IAS

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Trust with respect to donations made to them, or any of them, below are three charts, by transferee

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(IAS Admin, IAS and IAS Trust), itemizing each and every transfer/donation

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made by Richard Acunto ("Acunto") to IAS, IAS Admin and IAS Trust (while some of Acunto's

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transfers/donations were, at Acunto's request, made in the name of his wife, minor children and one

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business, all of the money evidencing such donations/transfers was transferred/donated by Acunto).

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7.

of assets, i.e., cash,

Transfers From Acunto to IAS Admin.

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Date of Transfer

Amount of Transfer

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December 25, 2003

$500

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August 19,2004

$1,600

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LA 11 636885v3

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RAOS DECLARATION ISO MOTION FOR SUMMARY ADJUDICATION

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No other transfers were made by Acunto or his immediate family members or affiliated entities to

IAS Admin.'

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A. Richard Acunto.

The following transfers/donations

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were made by Acunto to IAS under Acunto's name (the

"R Acunto IAS Transfers"):

Date of Transfer

Amount of Transfer

October 7, 1985

$20,000

October 7, 1985

$3,000

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November 3, 1985

$7,000

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November 11, 1985

$5,000

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November 18, 1985

$3,000

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August 5, 1987

$5,000

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August 9, 1987

$15,000

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April l O, 1988

$1,000

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March 17, 1992

$500

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December 7, 1992

$500

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Transfers From Acunto to IAS.2

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B. Sofia Acunto.

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The following transfers/donations

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were made by Acunto to IAS under the name of Sofia

Acunto, Acunto's daughter (the "S Acunto IAS Transfers"):


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Date of Transfer

Amount of Transfer

March 11,2003

$450

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1 These transfers were not donations, but were payments to attend certain events.
Acunto' s
transfer of $500.00 was to attend a celebratory function in Clearwater, Florida. Acunto's transfer of
$1,600.00 was to attend a celebratory function in the United Kingdom.

2 No other transfers were made by Acunto or his immediate family members or affiliated
entities to IAS.

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LA 11636885v3

RAOS DECLARATION

ISO MOTION FOR SUMMARY ADTIJDICATION

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C. Isabella Acunto.
The following transfers/donations

were made by Acunto to IAS under the name of Isabella

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Acunto, Acunto's daughter (the "Isabella Acunto IAS Transfers"):

Date of Transfer

Amount of Transfer

March 11, 2003

$250

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Ida Acunto.

The following transfers/donations

were made by Acunto to IAS under the name of Ida

Acunto, Acunto's daughter (the "Ida Acunto IAS Transfers"):

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Date of Transfer

Amount of Transfer

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May 24,1998

$450

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Amy Acunto.

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The following transfers/donations

were made by Acunto to !AS under the name of Amy

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Acunto, the former wife of Acunto (the "A Acunto IAS Transfers"):

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Date of Transfer

Amount of Transfer

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September 10, 1985

$2,000

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September 30, 1991

$200

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F.

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Smvival Insurance.

The following transfers/donations were made by Acunto to IAS under the name of Survival

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Insurance, an entity affiliated with Acunto (the "Survival IAS Transfers"):

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Date of Transfer

Amount of Transfer

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May 26,1987

$2,000

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August 5, 1987

$80,000

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September 2, 1996

$2,000

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LA 11636885v3

RAOS DECLARATION

ISO MOTION FOR SUMMARY ADJUDICATION

9.

Transfers From Acunto to IAS Truse

A.

Richard Acunto.

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The following transfers/donations were made by Acunto to IAS Trust under Acunto's name

(the "R Acunto IAS Trust Transfers"):

Date of Transfer

Amount of Transfer

May 5,1994

$1,000

September 18, 1994

$1,000

May 14, 1995

$2,500

June 6, 2003

$10,000

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July 7,2003

$10,000

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July 7,2003

$1,440

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July 27, 2003

$4,966

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August 14,2003

$5,000

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September 7, 2003

$5,000

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September 21, 2003

$5,000

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September 25,2003

$74,744

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December 8, 2003

$5,000

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December 12,2003

$35,000

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December 22, 2003

$60,000

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December 28, 2003

$50,000

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January 6, 2004

$50,001

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January 6, 2004

$100,000

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January 31, 2004

$100,000

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March 15, 2004

$5,000

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March 15, 2004

$24,012

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3 No other transfers were made by Acunto or his immediate family members or affiliated
entities to IAS Trust.

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LA 11636885v3

-6 RAOS DECLARATION

ISO MOTION FOR SUMMARY ADJUDICATION

July 18,2004

$97,000

July 24, 2004

$24,000

August 16, 2004

$87,000

November 14,2004

$10,000

January 9,2005

$15,000

January 23,2005

$20,000

January 23, 2005

$50,000

January 23, 2005

$50,000

April 18, 2005

$8,808

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April 26, 2005

$32,158

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August 2, 2005

$5,000

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December 11,2005

$7,300

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November 8, 2006

$20,000

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July 23,2007

$8,008

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November 11,2007

$700,000

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November 12,2007

$88,000

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November 22,2007

$1,910,000

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November 25,2007

$90,000

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January 6, 2008

$340,000

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January 12,2008

$328,000

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January 19,2008

$100,000

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January 19,2008

$500,000

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January 27, 2008

$460,000

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January 27, 2008

$100,000

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January 27, 2008

$90,000

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March 8, 2008

$100,000

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March 13,2008

$100,000

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August 1, 2008

$1,505,600

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Amy Acunto .

The following transfers/donations

were made by Acunto to IAS Trust under the name of

Amy Acunto, the former wife of Acunto (the "A Acunto IAS Trust Transfers"):

Date of Transfer

Amount of Transfer

April 25, 1995

$50

July 24, 2004

$10,000

October 29,2005

$3,000

10

November

$300

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June 17,2007

$2,007

12

July 27, 2007

$1,500

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August 8, 2009

$1,000

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August 17,2009

$500

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October 20, 2009

$250

13, 2006

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I declare under the penalty of perjury under the laws of the State of California that

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,2015 at Los Angeles, California.

the foregoing is true and correct.

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MISLAVRAOS

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-8RAOS DECLARATION ISO MOTION FOR SUJVIMARYADJUDICATION

Exhibit 2

JEFFER MANGELS BUTLER & MITCHELL LLP


THOMAS M. GEHER (Bar No. 130588)
1900 Avenue of the Stars, Seventh Floor
Los Angeles, California 90067-4308
Telephone:
(310) 203-8080
Facsimile:
(310) 203-0567
Email:
tgeher@jmbm.com

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Attorneys for Defendants The International Association of


Scientologists, IAS Administrations, Inc. and U.S. IAS Members'
Trust

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SUPERIOR COURT OF THE STATE OF CALIFORNIA


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FOR THE COUNTY OF LOS ANGELES
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THOMAS PROVENZANO, an individual, and


RODNEY RUHLAND, an individual,

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CASE NO. BC 518021

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Plaintiffs,

DECLARATION OF THOMAS M. GEIlER


IN SUPPORT OF MOTION OF

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RICHARD ACUNTO, an individual,


INSURESUITE, INC., a Delaware corporation
registered as a foreign corporation in California,
SURVIVAL INSURANCE, INC., a California
corporation, OCEAN FINANCIAL
HOLDINGS, INC., a California corporation,
GGIS INSURANCE SERVICES, INC., a
California corporation doing business as
GUARDIAN GENERAL INSURANCE
SERVICES, THE INTERNATIONAL
ASSOCIATION OF SCIENTOLOGISTS, an
English non-profit corporation doing business
in California; IAS ADMINISTRATIONS,
INC., a Delaware corporation registered in
California, U.S. IAS MEMBERS' TRUST, a
California trust, and DOES 1 to 50, inclusive,

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DEFENDANTS

v.

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THE INTERNATIONAL

ASSOCIATION OF SCIENTOLOGISTS,
IAS ADMINISTRATIONS, INC., AND U.S.
IAS MEMBERS' TRUST FOR SUMMARY
ADJUDICATION RE (A) FIFTH Al~D
SIXTH CAUSES OF ACTION OF SECOND
AMENDED COMPLAINT AND (B)
AFFIRMATIVE DEFENSE RE STATUTE
OF LIMITATIONS (DEFENDANTS'
SECOND, THIRD AND FOURTH
AFFIRMATIVE DEFENSES)
Date:
Time:
Dept:
Judge:

May 4, 2015
8:30 a.m.
36
Hon. Gregory W. Alarcon

23
Defendants.
24

Complaint Filed:
Trial Date:

August 12, 2013


January 13,2016

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I
GEHER DECLARATION

ISO MOTION FOR SUMMARY ADJUDICATION

DECLARATION OF THOMAS M. GEHER

r, Thomas

1.

M. Geher, declare:

I am an attomey and a partner in the law firm of Jeffer Mangels Butler &

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Mitchell LLP ("JMBM"),

counsel of record for Defendants

The Intemational

Association

of

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("lAS Trust", and together with lAS and lAS Admin, collectively, "IAS Defendants").

attomey at JMBM with the primary responsibility for this action. All facts stated herein are known

by me to be true through my own personal knowledge and I would and could competently testify

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On August 12, 2013, Plaintiffs Thomas Provenzano and Rodney Ruhland

(collectively "Plaintiffs") commenced this action by the filing of their Complaint For: (1) Breach of

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I am the

thereto in a court of law if called upon to do so.

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Inc. ("lAS Admin") and U.S. lAS Members' Trust

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Scientologists ("lAS"), lAS Administrations,

Contractf.] (2) Breach of Fiduciary Dutyj.] (3) Constructive Fraudj.] (4) Actual Fraudj.] (5) Set

15

Aside Fraudulent Transfer].] (6) Equitable Tracing, Constructive Trust & Equitable Lien [and] (7)

16

Breach of Business & Professions

17

Complaint's

18
19

Code Section 17200 (the "Complaint").

In the event the

claims against Defendant Richard Acunto ("Acunto") and his related affiliates were

successful, the Complaint named IAS as a defendant and, by its fifth and sixth causes of action (for
recovery of fraudulent conveyance and imposition of equitable tracing, constructive trust and

20
equitable lien), sought to avoid and recover from lAS, to the extent necessary to satisfy any claim
21
22

against Acunto, alleged fraudulent transfers of $10,000,000 in cash made by Acunto to lAS. IAS

23

Admin and IAS Trust were not named as a party to the Complaint.

24

Complaint is attached hereto as Exhibit "A" and is incorporated herein by this reference.

25
26
27

3.

On August 16, 2013, Plaintiffs filed their First Amended Complaint For: (1)

Breach of Contractj.]
Fraud].]

A true and correct copy of the

(5) Set Aside

(2) Breach of Fiduciary

Fraudulent

Dutyl.]

(3) Constructive

Transferj.] (6) Equitable

Fraudj.]

Tracing, Constructive

28
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ISO MOTION FOR SUMMARY ADJUDICATION

(4) Actual

Trust &

1
2
3

Equitable Lien [and} (7) Breach of Business & Professions Code Section 17200 ("F AC").
FAC named all of the IAS Defendants as defendants.

The

Like the Complaint, the FAC's fifth and

cause of actions (for recovery of fraudulent conveyance

and imposition

of equitable tracing,

4
constructive trust and equitable lien) sought to avoid and recover from the IAS Defendants, to the
5
6

extent

necessary

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fraudulent

transfers

of

4.
Stipulation

On November

Re Bifurcation

"Stipulation")

6, 20l3,

Plaintiffs

and the IAS Defendants

of Causes of Action and (proposed)

lodged that

Order Relating Thereto (the

whereby they, subject to Court approval, agreed that (a) Plaintiffs

would, in

12
accordance with the terms of the Stipulation, file a Second Amended Complaint which would,

00 ,-

c~

alleged

attached hereto as Exhibit "B" and is incorporated herein by this reference.

11

"'011

Acunto,

~
",..s=

against

$10,000,000 in cash made by Acunto to the IAS Defendants. A true and correct copy of the FAC is

10

-CIl ..,u

any judgment

a;

to satisfy

l3
14

among other things, assert claims for recovery of fraudulent conveyance and imposition of equitable

15

tracing, constructive trust and equitable lien against the IAS Defendants

16

alleged transfer of $10,000,000 to the IAS Defendants, and (ii) discovery and trial of the Second

17

Amended Complaint's

18
19

concerning Acunto's

causes of action against the IAS Defendants would be severed from the

remaining claims and go to trial only if a judgment was awarded 'to Plaintiffs on the remaining
claims against Acunto. A true and correct copy of the Stipulation is attached hereto as Exhibit "C"

20
and is incorporated herein by this reference.
21
5.

22

On December 20, 20l3, the Court signed an Order approving the Stipulation,

23

a true and correct copy of which is attached hereto as Exhibit "D" and is incorporated herein by this

24

reference.

25
26
27

6.

On January 8, 2014, Plaintiffs filed their Second Amended Complaint For:

(1) Breach of Contract (2) Breach of Fiduciary Duty (3) Constructive Fraud (4) Actual Fraud (5)
Set Aside Fraudulent

Transfer (6) Equitable Tracing, Constructive Trust & Equitable Lien (7)

28
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Breach of Business & Professions Code Section 17200 (the "SAC").

The SAC named the IAS

Defendants as defendants therein with respect to only the: (a) Fifth Cause of Action "to set aside

fraudulent transfer of assets" and (b) Sixth Cause of Action "for equitable tracing, imposition of a

constructive trust & equitable lien." Plaintiffs' SAC, with respect to the IAS Defendants, seeks to
5
avoid and recover from the IAS Defendants, to the extent necessary to satisfy any judgment against

6
7

Acunto, alleged fraudulent transfers of $1 0,000,000 in cash made by Acunto to the IAS Defendants.

A true and correct copy of the SAC is attached hereto as Exhibit "E" and is incorporated herein by

this reference.

10
0-

7.

11

$10,000,000 in cash to the IAS Defendants, or any of them. However, the SAC does not identify,

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12

-(IJ ..
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whether by date, amount or any other manner, the actual alleged transfer(s) which were made by

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The SAC alleges that Acunto allegedly fraudulently transferred the sum of

Acunto that Plaintiffs seek to avoid and recover. Plaintiffs, in the SAC, simply allege that Acunto

14
15

transferred

16

fraudulent transfers. See, SAC, Exhibit "E."

17

8.

18

in cash to the IAS Defendants

and such transfers are avoidable as

On February 6, 2014, the IAS Defendants filed that Answer of Defendants

The International Association of Scientologists, IAS Administrations,

19
20

$10,000,000

Trust to Second Amended Complaint ("Answer").

Inc. and

The IAS Defendants'

us. IAS

Members'

second, third and fourth

affirmative defense set forth in the Answer asserted that Plaintiffs' fifth cause of action for the
21
22

avoidance and recovery of the alleged $10,000,000 fraudulent conveyance was time barred pursuant

23

to the provisions of California Code of Civil Procedure 3439.09(a), 3439.09(b) and 3439.09(c),

24

respectively.

25

incorporated herein by this reference.

26
27

A true and correct copy of the Answer is attached hereto as Exhibit "F" and is

9.

By August 18,2014, the COUlihad entered the default of all defendants, other

than the IAS Defendants,

with respect to the SAC.

Prior to the November

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14, 2014 Case

Management Conference ("CMC"), Plaintiffs filed, and served on the IAS Defendants, various

pleadings with this Court seeking the entry of a default judgment in the total sum of $154,975.80

against all defendants other than the IAS Defendants.

4
10.

One pleading filed by Plaintiffs in this action seeking the entry of a default

5
6
7

0-

"'.<:

'.",." ...v

CL
L"'cIS
Qi... ...
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-I...

I...

Rodney Ruhland and Glen Provenzano Filed in Support of Requests for Default Judgments (Court)

Against Defendants:

Ocean Financial Holdings, Inc. and Exhibits Thereto (the "Default Judgment Declarations").

10

about November 3, 2014, I received the Default Judgment Declarations in the mail from Plaintiffs'

11

:::J
Qj

judgment against Acunto and his affiliated entities was the Declarations of Thomas Provenzano,

~
~
~
~

(2) Insuresuite, Inc., (3) Survival Insurance, Inc., (4)

On or

counsel, Graham BelTY. A true and correct copy of the Default Judgment Declarations is attached

12
hereto as Exhibit "G" and is incorporated herein by this reference.
13
11.

'"

~dl

(1) Richard Acunto,

14
15

One of the declarations contained in the Default Judgment Declarations was

the Declaration of Plaintiff Rodney Ruhland (the "Ruhland Decl.").

Paragraph 29 of the Ruhland

16

Decl. provides, in pertinent part: "in early January 2011, I was informed by [co-plaintiff] Tom

17

Provenzano that he had met with Guy White and was told that Guy White was leaving Richard

18

Acunto's group of companies because Richard Acunto had taken (more correctly misappropriated

19

or stolen) the company funds and made a ten million dollar ($10,000,000.00)

donation to the

20
International Association of Scientologists in exchange for receiving a Patron Laureate status medal
21
22

from the leader of the Church of Scientology."


12.

23

See, Exhibit "G," Ruhland Decl., paragraph 29.

A second declaration contained in the Default Judgment Declarations was the

24

Declaration

25

Provenzano Dee!' provides, in pertinent part: "Sometime subsequent, I recall meeting with Guy

26
27

of Plaintiff Thomas Provenzano

(the "Provenzano

Decl.").

Paragraph 35 of the

White and being told that Guy White had left Richard Acunto' s group of companies because
Richard Acunto had taken (more correctly misappropriated or stolen) the company funds and made

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a ten million dollar ($10,000,000.00) donation to the International Association of Scientologists in

exchange

for receiving

Scientology."

a Patron Laureate status medal from the leader of the Church of

See, Exhibit "G," Provenzano Decl., paragraph 35.

4
13.

On November 14,2014, the Court conducted a CMC and made the following

5
6
7

0-

judgment "prove up package" under submission.

Default Prove-Up

10

judgment is sufficiently supported and correct, but must be rejected without prejudice to renew the

11

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12

~~
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13

-<IJ
u

Later that same day, the Court filed its Ruling Re:

Papers Lodged By Plaintiffs whereby the Court "finds that the proposed

request after the stipulated trial or other disposition [of Plaintiffs' fifth and sixth causes of action
against the IAS Defendants]."

A true and correct copy of the Court's Ruling Re: Default Prove-Up

L..

......
'-

for the trial on Plaintiffs' fifth and sixth causes of action of the SAC and (c) took Plaintiffs' default

Qi

orders: (a) set January 6, 2016 for the final status conference, (b) set January 13, 2016 at 8:30 a.m.

Q)

<IJ.. ::l

~co

14

15
~
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~

Papers Lodged By Plaintiffs is attached hereto as Exhibit "H" and is incorporated herein by this
reference.

't,

16

Executed on February ----..-- 2015 at Los Angeles, California.

17

I declare under the penalty of perjury under the laws of the State of California that

18

the foregoing is true and correct.

19
20
21
22
23
24
25
26
27
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Exhibit E

GRAHAM E. BERRY, Bar No.128503


.
Law Office of Graham E. Berry
-3384-Mctaughlin-A,lenue------ ..-.---..-.---.--- ------

1
_--2

--..--

\~

- -

- -- -

--.- -.-----..-------

Los Angeles, California 90066-2005


Telephone: (310) 745-3771
Facsimile:
(310) 745-3771
Email: grahamberrv(a)ca.rr.com

3
4

Attorney for Plaintiffs


Thomas Provenzano and Rodney Ruhland.

6
7

IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COtJNTY

OF LOS ANGELES - CENTRAL DISTRICT

UNLIMITED JURISDICTION

10

THOMAS PROVENZANO, an individual,


and RODNEY RUHLM,]). an individual,

11
12

Plaintiffs,

13

18
I

22

24
25
26

)
)

(1)
(2)
(3)
(4)
(5)

BREACH OF COl\T'fRACT
BREACH OF FIDUCIARY DUTY
CONSTRUCTIVE
FRAU,])'
ACTUAL FRAUD
SET ASIDE FRAUDULEl\T'[
TRANSFER
(6) E.QUITABLE TRACING,
CONSTRUCTIVE
TRUST &
EQUITABLE LIEN
(7) BREACH OF BUSIl'i"ESS &
PROFESSIONS CODE SECTION

corporation registered as a foreign corporation)


in Californi~ S~VIV AL .INS{j"RAN~E,
INC., a California corporation, OCEAN
)
FINANCIAL HOLDINGS, INC., a
)
California corporation; GGIS INSURANCE
)
SERVICES, INC, a California corporation
)
..
)
doing business as GUARDIA...N GENERAL
)
17206
INSURA..NCE SERVICES; THE
)
INTERNATIONAL
ASSOCIATION
OF )
SCIEl\T'fOLOGISTS, an English non-profit )
corporation doing business in California; lAS ~
DEMAND FOR ~y
TRIAL
ADMTh::S~TION~,
IN~, aI?elaware
).
.
'
corporat1o~ered
ill Califorma;
lAS) Complaint filed: August 12, 2013
lVIEMBERST.&UST, a California Trust; and) 1st. Amended Complaint filed: August 16, '13
DOES 1 to 50 inclusive,
..)
CMC Date: March 14, 2014 (continued)
Defendants.
)
.

17

23

RICHARD ACUNTO, an individual,


INSlJRESUITE,
INC., a Delaware

16

21

) FOR:

vs.

15

20

)SECONDAMENDEDCOMPLMNT

14

19

) Case No.: BC518021


)) (Assigned to Hon, Michael Johnson, Dept. 56)

us,

-----------------------------

21
28

COMPLAINT. FOR DklVfAGES

ANTI OTHER RELIEF

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