Professional Documents
Culture Documents
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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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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,
May 4,2015
8:30 a.111.
36
Hon. Gregory W. Alarcon
Complaint Filed:
Trial Date:
24
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PRINTED ON
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LA 11657765vl
IAS DEFENDANTS'
TABLE OF CONTENTS
EXHIBIT 1:
EXHIBIT 2: /'
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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:
Exhibit C
Exhibit D
ExhibitE
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21
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~epa~te
rar
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Exhibit F
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ptr
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Exhibit G
PRlNTEDON
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LA 11657765vl
IAS DEFENDANTS'
EVIDENCE
ADJUDICATION
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Exhibit H /
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DATED: February
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BY~
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Attorneys for Defendants THE INTERt..JATIONAL
ASSOCIATION OF SCIENTOLOGISTS, IAS
AD.MINISTRATIONS, INe. ANTI U.S. IAS
MEl\.ffiERS' TRUST
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LA 11657765vl
LA.SDEFENDANTS'
Exhibit 1
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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
25
26
27
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1';
PRJNTEDON
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LA 11636885v3
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RAOS DECLARATION
1
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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
5
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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
with
IAS
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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records, including, but by no means limited to, its financial records and records of donations made.
17
18
19
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
21
22
Trust. Among the duties and functions which IAS Admin performs for IAS and IAS Trust (as well
23
24
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),
is recorded,
28
PRlNTEDON
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LA 11636885\'3
of all financial
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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6
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Each time IAS Admin, IAS and IAS Trust, or any of them, receive a donation, that donation is
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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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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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6.
Based upon my review of the business records of IAS Admin, IAS and IAS
18
Trust with respect to donations made to them, or any of them, below are three charts, by transferee
19
(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
22
business, all of the money evidencing such donations/transfers was transferred/donated by Acunto).
23
7.
24
Date of Transfer
Amount of Transfer
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$500
26
August 19,2004
$1,600
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LA 11 636885v3
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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.
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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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$5,000
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$3,000
13
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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$500
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December 7, 1992
$500
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B. Sofia Acunto.
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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
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C. Isabella Acunto.
The following transfers/donations
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Date of Transfer
Amount of Transfer
$250
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Ida Acunto.
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Date of Transfer
Amount of Transfer
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May 24,1998
$450
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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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$2,000
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$200
19
F.
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21
Smvival Insurance.
The following transfers/donations were made by Acunto to IAS under the name of Survival
22
23
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
9.
A.
Richard Acunto.
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The following transfers/donations were made by Acunto to IAS Trust under Acunto's name
Date of Transfer
Amount of Transfer
May 5,1994
$1,000
$1,000
$2,500
June 6, 2003
$10,000
10
July 7,2003
$10,000
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July 7,2003
$1,440
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$4,966
13
August 14,2003
$5,000
14
September 7, 2003
$5,000
15
$5,000
16
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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$60,000
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$50,000
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January 6, 2004
$50,001
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January 6, 2004
$100,000
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$100,000
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$5,000
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$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.
28
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LA 11636885v3
-6 RAOS DECLARATION
July 18,2004
$97,000
$24,000
$87,000
November 14,2004
$10,000
January 9,2005
$15,000
January 23,2005
$20,000
$50,000
$50,000
$8,808
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$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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$460,000
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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 .
Amy Acunto, the former wife of Acunto (the "A Acunto IAS Trust Transfers"):
Date of Transfer
Amount of Transfer
$50
$10,000
October 29,2005
$3,000
10
November
$300
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June 17,2007
$2,007
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$1,500
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August 8, 2009
$1,000
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August 17,2009
$500
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$250
13, 2006
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Executed on February
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I declare under the penalty of perjury under the laws of the State of California that
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MISLAVRAOS
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LA 11636885,,3
Exhibit 2
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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:
25
26
27
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LA 11559096vl
I
GEHER DECLARATION
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"),
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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(collectively "Plaintiffs") commenced this action by the filing of their Complaint For: (1) Breach of
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Contractf.] (2) Breach of Fiduciary Dutyj.] (3) Constructive Fraudj.] (4) Actual Fraudj.] (5) Set
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Aside Fraudulent Transfer].] (6) Equitable Tracing, Constructive Trust & Equitable Lien [and] (7)
16
17
Complaint's
18
19
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].]
Fraudulent
Dutyl.]
(3) Constructive
Fraudj.]
Tracing, Constructive
28
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LA 11559096vl
-2GEHER DECLARATION
(4) Actual
Trust &
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2
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Equitable Lien [and} (7) Breach of Business & Professions Code Section 17200 ("F AC").
FAC named all of the IAS Defendants as defendants.
The
and imposition
of equitable tracing,
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constructive trust and equitable lien) sought to avoid and recover from the IAS Defendants, to the
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extent
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fraudulent
transfers
of
4.
Stipulation
On November
Re Bifurcation
"Stipulation")
6, 20l3,
Plaintiffs
lodged that
would, in
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accordance with the terms of the Stipulation, file a Second Amended Complaint which would,
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Acunto,
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against
$10,000,000 in cash made by Acunto to the IAS Defendants. A true and correct copy of the FAC is
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any judgment
a;
to satisfy
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among other things, assert claims for recovery of fraudulent conveyance and imposition of equitable
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tracing, constructive trust and equitable lien against the IAS Defendants
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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.
(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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RECYCLED PAPER
LA 11559096vl
GEHERDECLARATION
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
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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.
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$10,000,000 in cash to the IAS Defendants, or any of them. However, the SAC does not identify,
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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
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transferred
16
17
8.
18
19
20
$10,000,000
Inc. and
us. IAS
Members'
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
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
28
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LA 11559096vl
-4GEHER DECLARATION
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
4
10.
One pleading filed by Plaintiffs in this action seeking the entry of a default
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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
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judgment against Acunto and his affiliated entities was the Declarations of Thomas Provenzano,
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counsel, Graham BelTY. A true and correct copy of the Default Judgment Declarations is attached
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hereto as Exhibit "G" and is incorporated herein by this reference.
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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
23
24
Declaration
25
Provenzano Dee!' provides, in pertinent part: "Sometime subsequent, I recall meeting with Guy
26
27
(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
28
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LA 11559096vl
-5GEHER DECLARATION
exchange
for receiving
Scientology."
4
13.
On November 14,2014, the Court conducted a CMC and made the following
5
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10
judgment is sufficiently supported and correct, but must be rejected without prejudice to renew the
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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
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for the trial on Plaintiffs' fifth and sixth causes of action of the SAC and (c) took Plaintiffs' default
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orders: (a) set January 6, 2016 for the final status conference, (b) set January 13, 2016 at 8:30 a.m.
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Papers Lodged By Plaintiffs is attached hereto as Exhibit "H" and is incorporated herein by this
reference.
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16
17
I declare under the penalty of perjury under the laws of the State of California that
18
19
20
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23
24
25
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-6 GEHER DECLARATION
Exhibit E
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UNLIMITED JURISDICTION
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Plaintiffs,
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)
)
(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
17
23
16
21
) FOR:
vs.
15
20
)SECONDAMENDEDCOMPLMNT
14
19
us,
-----------------------------
21
28