Professional Documents
Culture Documents
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COMES NOW Dr. Richard Malouf ("Dr. Malouf') and Leanne Malouf ("Mrs.
cause, by and through their counsel Shamoun & Nonnan, LLP, complaining of Mary Candace
Evans ("Candy"), Lauren Wilson ("Wilson"), Belo Corporation ("Belo"), WFAA-TV, Inc.
styled and numbered cause. In support of the foregoing, Plaintiffs would respectfully show the
I.
DISCOVERY
2. Plaintiff Dr. Richard Malouf, a natural person, is a private individual within the
meaning of Texas law and is a citizen of the State of Texas, and at all times relevant hereto has
meaning of Texas law and is a citizen of the State of Texas, and at all times relevant hereto has
the meaning of Texas law and is a citizen of the State of Texas, and resides in Dallas County,
Texas. Evans may be served with service of process at her residence located at 1 1407 W. Ricks
meaning of Texas law and is a citizen of the State of Texas, and resides in Dallas County, Texas.
Wilson may be served with service of process at her residence located at 10621 Strait Lane,
business under the laws of the State of Texas, with its principal place of business in Dallas
County, Texas. Belo may be served with process by and through its registered agent, Guy H.
Kerr at 400 South Record Street, Dallas, Texas 75202 or wherever he may be found.
business under the laws of the State of Texas, with its principal place of business in Dallas
Kerr at 400 South Record Street, Dallas, Texas 75202 or wherever he may be found.
8. Defendant Byron Harris, a natural person, is a citizen of the State of Texas, and
resides in Dallas County, Texas. Upon information and belief Harris may be served with process
at his residence located at 3 70 1 Colgate, Dallas, Texas 75225, or at his place of employment,
9. Plaintiff believes and hereby alleges that at all times mentioned herein, each of
Harris, Candy, and WFAA were the agents, representatives, employees, officers, or directors of
Belo, and acted within the scope and authority of such agency, employment, or authority and
with the knowledge, consent, approval, or ratification of Belo or other of Defendants. Unless a
particular Defendant is named, whenever this pleading references the acts of any Defendant or
Defendants, such allegations shall be deemed to mean the acts of those Defendants named in the
particular cause of action, and each of them acting individually, jointly and severally.
III.
JURISDICTION AND VENUE
I0. Venue is proper in this County Court at Law, Dallas County, Texas under § I5.0I7
Texas Civil Practices and Remedies Code because all of the parties worked and/or resided in
Dallas County, Texas at the time of the accrual of the cause of action. Venue is also proper in
Dallas County, Texas under Texas Civil Practices & Remedies Code § I5.0I7, because
Defendants committed libel, slander, and invasion of privacy in Dallas County, Texas, and the
II. This Dallas County Comi at Law has jurisdiction over the claims at issue in this
proceeding, as Plaintiff seeks to recover damages within the jurisdictional limits of the Court.
12. At all times material to this lawsuit, Dr. Malouf has been a licensed doctor of
dental surgery in the State of Texas. Dr. Malouf and his wife Leanne Malouf have resided at
their home for over four (4) years, located at 1071 1 Strait Lane, Dallas, Texas 75229 (the
"Residence").
13. Defendant Candy is a consumer real estate journalist who prides herself on
intruding into the private affairs of others and publishing those matters on her websites
through other media outlets. 1 Candy is the owner and administrator of Candy's Dirt and Second
Shelters. Candy has a self-confessed obsession with real estate and admits to obtaining her Texas
real estate license to circumvent Texas' non-disclosure legislation.2 Candy is frequently aired
on WFAA broadcasts and referenced on WFAA's website, which contains links to Candy's Dirt
and Second Shelters. WFAA regularly broadcasts or publishes Candy's articles or infonnation.
At all relevant times, Candy was acting in her individual capacity and as an agent, employee, or
authorized representative of WFAA and/or Belo. Further, multiple bloggers and journalists, such
as E1ic Nicholson who publishes articles for the Dallas Observer, utilize Candy's unlawfully
business segments and possessing a variety of partnerships with print media businesses, such as
1 Despite President George W. Bush's attempt to keep the purchase of his Dallas residence a little known secret,
Candace Evans was the first person to broadcast to the world the exact location of President Bush's new home. See
Candy's "newgeography" webpage, wherein she boasts about breaking the story; a true and correct copy of Candy
Evans' "newgeography" webpage is attached hereto as Exhibit "A" and incorporated herein by reference.
2 Ex. "A".
nineteen ( 19) other public and cable television stations. Additionally, Belo operates more than
twenty (20) websites, several interactive alliances and a broad range of internet-based products.
Belo, through its television stations (WFAA), websites, and print media engagements is watched
or viewed throughout the Dallas/Fort Worth metroplex and throughout the State of Texas. Belo's
serving the Dallas/Fort Worth area. WFAA is Belo's flagship station and the largest ABC
affiliate not owned and operated by the ABC network. WFAA consistently airs news reports in
which Candy reports infom1ation related to real estate. In addition, WFAA owns and maintains a
website (www.wfaa.com) with links, articles and video clips containing false information about
Dr. Malouf and the Residence accessible to any person in the world. The miicles and video clips
on WFAA's website were written by Defendants Candy, Harris, or other agents, representatives,
16. Defendant Laura C. Wilson lives next door to the Maloufs at I0621 Strait Lane,
Dallas, Texas 75229. Wilson covets her privacy; however, she has no problem assisting and
encouraging Candy, Harris, and WFAA to invade the privacy of the Maloufs by assisting and
encouraging Candy, Harris, and WFAA' s efforts to obtain 1mages of the Maloufs and their
Residence.
3 Belo co-owned The Dallas Morning News unti\ 20 0 8, when it was spun off to A.H. Belo Corporation.
A. CANDY'S OBSESSION
17. After weeks upon weeks of stalking the Maloufs' home at 10711 Strait Lane,
Dallas, Texas 75229, Candy's long awaited moment arrived. On Sunday, August 19, 2012,
Candy drove to the Residence with the specific purpose of capturing pictures of the Residence
18. At no time prior to arriving at the Residence, did Candy telephone, text, email,
Facebook message (as all of the young people like to do), or even ring the Maloufs to obtain
permission to open their gate, enter onto the grounds, or photograph the Maloufs' Residence and
the equipment located in the backyard of the Residence. Despite the ten (10) foot tall p1ivacy
fence (the "Privacy Fence") installed to prevent drivers by from viewing the Maloufs, Candy was
undetelTed and proceeded despite the obvious impediment that screams "DO NOT ENTER" and
"PRIVATE AREA".
19. Its doubtful Candy was trained to trespass onto other people's property at Columbia
University's Graduate School of Journalism; however, Candy stealthily slipped inside the
Residence gate and behind the Privacy Fence. Upon entering the grounds of the Residence,
Candy immediately commenced capturing images of the Maloufs' backyard equipment and the
4
Residence. Unsatisfied with the angle or content of the images taken from just inside the gate of
the Residence, Candy ambled her way across the property and repositioned herself to acquire
more promising photos. After Candy published the photographs taken from inside the Privacy
4 See Candy's August 20, 2012, article titled "Water Park Slides Have Arrived at the MaloL!(Manse on Strait Lane
& World Nmv Knows We are Serious About Medicaid Dental Fraud in Texas" (the "We are Serious Article"),
posted on Candy's Diti; a true and cotTect copy of which is attached hereto as Exhibit "B" and incorporated herein
by reference.
5
criminal report on August 22, 2012 (the "Police Report").
20. The following day, Candy published an article on Candy's Dirt titled, "Water
Park Slides Have Arrived at the Malouf Manse on Strait Lane & World Now Knows We are
Serious About Medicaid Dental Fraud in Texas". The article's headline needed no interpretation,
as Candy's words were precisely calculated to leave the reader (or world) with the false
impression that Dr. Malouf was a thief, fraudster, and environmentally iiTesponsible.
21. Candy's August 19th trespassing photo adventure was not the first time she had
trespassed onto the Maloufs' property. Approximately two years earlier, the Maloufs and their
invited friends celebrated the private birthday event of their minor daughter in the front yard.
Unbeknownst to Dr. Malouf or Mrs. Malouf, Candy just "happened to be in the neighborhood".
As Candy strolled by the Residence and observed the tented celebration, she was unable to fight
the overwhelming urge to intrude upon the private gathering. Without seeking permission,
Candy entered onto the grounds of the Maloufs' Residence and made her way toward the
celebration.
22. Candy brazenly sauntered up to the tent where the Maloufs' daughter was located
under the birthday tent inteiTogating the Maloufs' daughter, a family friend intervened and
politely requested that Candy remove herself from the Residence. After speaking with his
daughter, Dr. Malouf discovered that Candy's intent was to probe into the private affairs of his
family. This initial confrontation would foreshadow the coming twelve months and Candy's
obsession.
5 A true and conect copy of the Police Report is attached hereto as Exhibit "C" and incorporated herein by
reference.
seeking information related to the latest goings on inside the Maloufs' gates. This type of
"journalism" more closely resembled the acts of the paparazzi than those of a self-respecting
journalist.
August 26, 2012, with the help of the Maloufs' neighbor, Defendant Wilson. Candy's relentless
pursuit to acquire personal information about Dr. Malouf and his Residence and to then publish
that information with false statements about Dr. Malouf had reached new lows, even for Candy.
25. Upon information and belief, approximately one (1) week after Candy trespassed
upon the Maloufs' Residence to capture photographs for her We are Serious Article, Candy
communicated with Wilson regarding the ongoing construction taking place at the Residence.
Upon learning of significant construction progress at the Residence, Candy could not repress her
26. After Wilson informed Candy of the construction progress, Candy jumped into
her Lexus SUV and headed towards Strait Lane. Candy drove by the Residence on her way to
Wilson's home, which was conveniently adjacent to the Maloufs' Residence. Candy was unable
to examine the new construction progress from Strait Lane because the Privacy Fence impeded
her view within. Candy pulled into Wilson's driveway and entered the Wilson's home located
next door to the Residence. Determined to inspect the backyard of the Residence and undaunted
by the Police Report or Privacy Fence, Candy and Wilson devised a plan to breach the Maloufs'
27. With Wilson's assistance and encouragement, Candy took the audacious steps of
crawling onto the roof of the Wilson home. Atop the Wilson roof, Candy commenced her
publication on Candy's Dirt, or in conjunction with a WFAA and Harris television broadcast.
28. Candy's continuous trespasses onto the Residence and invasions into the private
affairs of the Maloufs are fueled by Wilson, Harris, and WFAA. As part of a WFAA July 12,
2012, television broadcast, Harris, Candy, and WFAA crews loitered in front of the Residence
for hours, capturing images of the Residence and hounding Residence staff and constmction
workers in an attempt to gain information pertaining to the private affairs, seclusion, and solitude
of the Maloufs. In the WFAA July 12, 2012, television broadcast, Harris and Candy, acting in
WFAA and/or Belo, made multiple inaccurate statements regarding modifications, floor plans,
29. Additionally, based on infonnation and belief, Candy elicited assistance and
infonnation from the Maloufs' fanner house manager David Kinney (the "Insider") in an effmi
to obtain private images of the Maloufs fi·om within their home. Upon infonnation and belief,
Candy approached the Insider with a contemptible proposition. Candy's outrageous proposition
involved planting a wireless camera inside Mrs. Maloufs closet. Using the Insider, Candy
would be able to obtain intimate images of the otherwise unsuspecting Maloufs. Moreover, the
Insider would be able to and did provide Candy with p1ivate details related to the Maloufs and
their Residence. Upon infonnation and belief, Candy passed the leaked information about the
30. Candy has also unsuccessfully attempted to bribe the Maloufs' civil engineer in
exchange for information related to the Residence and the Maloufs' private and personal affairs.
Upon her bribe of the Maloufs' civil engineer rejecting Candy's bribe, Candy's relentless pursuit
information related to the Maloufs and their Residence, Candy approached sub-contractors and
individual construction with similar bribes. Candy's prying attempts to elicit private information
and obtain images of the Maloufs and their Residence has been highly offensive to the Maloufs,
31. Candy's We are Serious Article and her accompanying photos, have since been
commented on by multiple individuals, evidencing the false impression inferred from the We are
Serious Article. Fmiher, other online blogs and journalists have cited to and referenced the We
are Serious Article in their own publications. Writer and online blogger Eric Nicholson did just
that in an miicle he published for The Dallas Observer.6 Additionally, Robert Wilonsky of The
Dallas Morning News published another related article on August 23, 2012, found on his blog
(http://thescoopblog.dallasnews.com).
32. Through her repeated presence on or around the Residence, articles, photos, blog
entries, radio broadcasts, and comments via Candy's Dirt, Second Shelters, and other media
outlets, Candy has engaged in a deliberate pattern of invasion of privacy, trespass, libel, and
defamation per se. Candy has purposefully disseminated significant false information about Dr.
Malouf and the Residence. Candy's paparazzi-like conduct related to the Residence of the
Maloufs seems to serve no other purpose than to invade the privacy, solitude, and seclusion of
the Malouf family. Candy's obsessive behavior is exemplified by the ten (10) or more articles,
radio broadcasts, and television appearances she or other individuals have published in the span
6 A tme and correct copy of Eric Nicholson's Dallas Observer online article is attached hereto as Exhibit "D" and
incorporated herein by reference.
found on Candy's Dirt and Second Shelters have generated safety concerns for the Malouf
family, and caused injury to the Maloufs. Accordingly, the Maloufs seek nominal damages and
injunctive relief directed at preventing further harassment, invasion of privacy, and defamatory
remarks.
34. Candy's obsession and Harris/WFAA's simultaneous focus on Dr. Malouf and his
Residence is not coincidental. Over the course of the last year Candy, Harris, and WFAA have
shined a relentless spotlight upon the seclusion, solitude and private affairs of the Maloufs.
During the last twelve (12) months, Candy, Harris, WFAA, and Belo (including affiliates and
content partners of WFAA/Belo) have published over forty (40) articles, blog entries, radio
broadcasts and television broadcasts disseminating images and erroneous information about Dr.
Malouf and the Residence. Despite Harris, WFAA, and Candy's incessant and blinding spotlight
on the Maloufs, Dr. Malouf and Mrs. Malouf have attempted to maintain their privacy by shying
35. In the Spring of 2011, Byron Hanis began investigating alleged Medicaid Fraud
in Texas. HarTis' investigation led to a litany of television broadcasts, a large portion of which
mentioned or referenced Dr. Malouf. As Han·is and WFAA followed up their initial broadcasts,
the scope and content of later television broadcasts eventually centered on Dr. Malouf and his
Residence. These narrowly tailored broadcasts and miicles intruded upon the Maloufs' privacy
by revealing infonnation related to their private affairs. The sharply focused broadcasts and
articles also published multiple false statements related to the Maloufs and the Residence.
Shipp: ". . . [Dr. Malouf] has yet to comment on the allegations but filed for
bankruptcy and is in the process o( divesting his once impressive
empire."7
Shipp and WFAA's defamatory statements falsely represent to the public that Dr. Malouf
personally filed for bankruptcy and is in the midst of financial ruin. Dr. Malouf has never
personally filed for bankruptcy or been found guilty of fraud. Shipp and WFAA's false
statements that Dr. Malouf filed for bankruptcy and is in the process of dismantling his personal
estate suggest that Dr. Malouf is guilty of fraud and is therefore being financially stripped or
37. One (1) and a half months prior to the aforementioned story, Harris aired a news
report containing false comments clearly meant to mislead the public regarding Dr. Malouf.
During the report, Harris and \VFAA flashed photos and video of Dr. Malouf and personal motor
vehicles driven by him and his wife. The news story served two purposes: (1) to generate
contempt and hatred for Dr. Malouf, and (2) to invade the Maloufs' privacy. That television story
"[Dr. Maloufs] chain of dental clinics is bankrupt, but yet his $20 million
house is growing . . . Richard Maloufs $11 million dollar mansion is a
symbol of the wealth he built under Medicaid." 8
38. In Harris and WFAA's most recent television broadcast, which aired on October
8, 2012, WFAA and Harris published video of the modified Residence, its concealed backyard
7 A true and correct transcript of the June 26, 2012, WFAA news report is attached hereto as Exhibit "E" and
incorporated herein by reference.
8 A true and correct transcript of the May 5, 2012, WFAA news report is attached hereto as Exhibit "F" and
incorporated herein by reference.
and the Residence, Harris, WFAA crews, and Candy lingered outside the Maloufs' Residence
waiting for the Maloufs, Resident staff members, or construction workers to exit the property.9
Once outside the Privacy Fence of the Residence, any person that may possess information about
39. In addition, Harris, Candy, and WFAA crews spied on the Maloufs by peering
into the Residence backyard, with the help of high-powered lenses and the Maloufs' neighbor,
Defendant Wilson. Without the assistance of Wilson, who invited WFAA, Harris, and Candy to
obtain video footage of the secluded backyard of the Residence, Harris, WFAA, and Candy
would have been unable to intrude into the seclusion and solitude of the Maloufs or publish
video footage of the purposely obscured Residence backyard. Due to the hidden nature of the
Residence backyard, WFAA has gone to the extreme lengths of utilizing its helicopter to capture
aerial video images of the backyard. Despite the Maloufs' Residence obviously lacking any
newsworthy character, WFAA utilized its helicopter and staff to invade the Maloufs' private
retreat.
40. Harris and WFAA published the following false statements during the WFAA
October 8, 2012, television broadcast and accompanying online article authored by HmTis on
WFAA's website, which is titled "Water Park Takes Shape in Backyard of Dentist Who Owes
TV Broadcast: "[The pool area] will use six and half million gallons of
water. So much that it has its own well."
Harris's assertion that the Maloufs' backyard pool area will use 6.5 million gallons of water is
completely false and based on pure conjecture. At no time during the television broadcast and
nowhere in the online article does either Harris or WFAA provide any information from which to
base this obscene number. Harris and WFAA misleadingly direct the public to the image of a
single small water well captured by telephoto lens while hovering above the Residence in
WFAA' s helicopter. It is more likely that Harris and WFAA obtained this false and speculative
number from Candy and her August 21, 2012 Second Shelter's blog entry/article, wherein she
eiToneously states, "[i]ts only 6.5 million gallons of water, and Texas sure has plenty of
.
. ll
that ... nght?"
41. Fmiher, Harris and WFAA's statement that Dr. Malouf, individually, owes an
Atlanta-based banking finn $3.2 million dollars is a flat out lie. Contrary to false the
representation by Harris and WFAA, the Atlanta-based banking finn possesses a judgment
against the separate legal entity All Smiles Dental Centers, Inc., not Dr. Malouf. Also, the title of
the article and television broadcast is untruthful, as HaiTis and WFAA are unable to support their
factual claim that Dr. Malouf owes millions of dollars because he fails to pay his bills.
42. Hanis and WFAA's tireless harassment of the Maloufs seems to know no
boundaries. On Friday, October 12, 2012, Harris and WFAA crews stormed a Dallas County
District Courtroom with the purpose of capturing Dr. Malouf and Mrs. Malouf's image on
camera. Despite HaiTis and WFAA crews sprinting down hallways and attempting to track Dr.
10
A true and correct copy of the WFAA and Han·is October 8, 2012, online article "Water Park Takes Shape in
Backyard ofDentist Who Owes Millions", is attached hereto as Exhibit "G" and incorporated herein by reference.
11
A true and correct copy of the Second Shelter's blog entry/article, dated August 21, 2012, is attached hereto as
Exhibit "H" and incorporated herein by reference.
actions yielded no usable footage. Harris and WFAA's interruption of a confidential, sensitive
and private civil hearing pertaining to the Maloufs' son was admittedly of no public concern or
newsworthy. Despite the private nature of the civil hearing, Harris confronted the Maloufs'
counsel and became agitated and hostile when he realized his attempts to capture the images of
the Maloufs had failed. Harris and WFAA's disregard for the sensitive nature of the civil
hearing which dealt with the Maloufs' son exemplifies the purposeful pattern of harassment and
43 . Harris, WFAA, Belo, and Candy have continuously led a campaign intensely
focused on penetrating the Maloufs' privacy, seclusion, and solitude. Harassment and ostracism
aside, Dr. Malouf has been and continues to be the target of libel and slander purposed on
ruining his reputation. Accordingly, the Maloufs seek nominal damages and injunctive relief
directed at prohibiting Defendants from trespassing, invading the privacy of the Maloufs, and
V. CAUSES OF ACTION
COUNT ONE: TRESPASS TO REAL PROPERTY
44. Plaintiffs re-allege and incorporate the facts and allegations set forth above in
45. Plaintiffs have continually owned the real property located at 10711 Strait Lane,
Dallas, Texas 75229, at all relevant times and have a lawful right to exclude persons from
46. Without Plaintiffs' consent, Candy has repeatedly, physically, and intentionally,
entered onto the surface of Plaintiffs' Residence with the purpose of capturing images of
consent and on one occasion confronted the Maloufs' daughter and on a second occasion took
47. Further, upon information and belief, Candy solicited the Insider to carry out the
unlawful act of planting a wireless camera inside the Maloufs' home for the purpose of:
(1) acquiring private and intimate information or images of the Maloufs, (2) leaking said intimate
information/images to Harris and WFAA, and (3) utilizing the information/images to ostracize
the Maloufs.
48. WFAA and Belo encouraged, advised or adopted Candy's acts of physical and
non-physical trespass upon Plaintiffs' Residence, from which Harris, WFAA, and Belo sought to
benefit. WFAA and Hanis interviewed and published video and photographs obtained through
49. The multiple acts of trespass by Defendants Candy, WFAA, and Belo constitute
harassment and caused Plaintiffs injury. Future trespasses by Defendants Candy, WFAA and/or
Belo will cause Plaintiffs future injury. As a result of Defendants Candy, WFAA and Belo's
wrongful acts, Plaintiffs have suffered and will continue to suffer injury. Accordingly, Plaintiffs
request the recovery of the costs and expenses to counteract Defendants' unlawful acts, nominal
damages, injunctive relief because a remedy of damages is inadequate due to the multiplicity of
50. Plaintiffs re-allege and incorporate the facts and allegations set forth above in
Plaintiffs' privacy by intruding on Plaintiffs' solitude, seclusion, and private affairs. Without
Plaintiffs' consent, Candy physically invaded a private celebratory event at the Residence and
subsequently pursued a personal interaction with Plaintiffs' minor daughter during said event.
Candy obtained photographs of the Residence and posted them on Candy's Dirt and Second
Shelters. At no time did Candy obtain the consent of Plaintiffs to enter the Residence physically
or otherwise. Further, Candy allowed others to utilize those unlawfully obtained images.
spying on Plaintiffs' Residence. Based upon information and belief, Candy aided and abetted by
Wilson, and encouraged and advised by WFAA and Belo, climbed atop Wilson's roof to capture
WFAA, Han-is, and Candy to her home, which resulted in WFAA, Han-is, and Candy capturing
detailed pictures of the Maloufs' Residence. Without Wilson's assistance, WFAA and Harris
would not have been able to obtain the video footage of the Maloufs' concealed pool area.
53. Upon infonnation and belief, Candy petitioned the Insider to can-y out the
unlawful act of installing a wireless camera within the Maloufs' closet. Such a flagrant act of
invading the Maloufs' sanctity is shocking and deplorable. As described supra, Candy, Han-is,
and WFAA have committed vast amounts of time and resources into the endeavor of harassing
54. Plaintiffs' Residence includes a ten ( 1 0) foot tall privacy fence erected along the
outside boundaries of the propetiy. Plaintiffs believed the construction of the Privacy Fence
would afford them a reasonable amount of privacy. Despite Plaintiffs' erection of the Privacy
stopped. WFAA, Harris, Candy, and Wilson have schemed to circumvent Plaintiffs' expectation
of privacy and now Plaintiffs are powerless to prevent WFAA, Harris, and Candy from utilizing
55. Moreover, Candy, Harris, Belo, WFAA and their respective media content
partners have subsequently published information obtained from Candy's intrusions via Candy's
Di1i, Second Shelters, WFAA's television broadcasts, articles found on www.wfaa.com, and
Dallas Morning News blogs. The constant harassment, stalking, intrusions and subsequent
publications by Candy, Harris, Belo, and WFAA of Plaintiffs and their Residence would be
56. Plaintiffs, much like any other reasonable person, are outraged by Defendants'
(D) Upon infom1ation and belief Candy's deplorable proposition of the Insider, civil
engineer and other sub-contractors; and
(E) Harassing Interruption of the confidential civil proceedings on October 12, 2012.
Further, the publication of images and photos at the Residence generate safety concerns for
Plaintiffs.
57. As a result of Defendants' wrongful acts, Plaintiffs have suffered and will
continue to suffer injury. Specifically, Plaintiffs have suffered injury as a result of Candy, Harris,
and WFAA's incessant invasions into the seclusion and solitude of Plaintiffs, without their
consent. Accordingly, Plaintiffs request the recovery of nominal damages, injunctive relief
expenses to counteract Defendants' unlawful acts and publications, and costs of court.
58. Plaintiff Dr. Malouf re-alleges and incorporates the facts and allegations set forth
above in Paragraphs 1 -57, as if they were fully set forth at length herein.
59. On or about August 20, 2012, Candy published the We are Serious Article
containing information which is defamatory per se of and about Dr. Malouf in that the gist of the
publication, when taken as a whole and as would have been perceived by a reasonable reader,
stated:
2
The foregoing statements are/were false. 1
60. On or about October 2, 2012, Candy posted an article on Candy's Dirt, which was
defamatory per se of and about Dr. Malouf (the "Water Games Article"). The first sentence of
the Water Games Article reads, "Byron Harris at WFAA-TV is the guy who busted Richard
Malouf." The essence of this publication, when taken as a whole and as would have been
12 A true and correct copy of the publication is attached to this petition as Exhibit "B".
13 A true and correct copy of the Water Games Article is attached to this petition as Exhibit "I", and incorporated
herein by reference.
television broadcast and published an accompanying online article which were defamatory of
and about Dr. Malouf (the "October 8, 2012 Publications"), in that the meaning of the
publications, when taken as a whole and as would have been perceived by a reasonable
listener/viewer, stated:
(A) Dr. Malouf owes millions of dollars and refuses to pay his bills; and
62. On or about June 26, 2012, Defendants Belo, and WFAA disseminated a
television broadcast which was defamatory per se of and about Dr. Malouf (the "June 26, 2012
Broadcast"), in that the gist of the publication, when taken as a whole and as would have been
63. On or about May 5, 2012, Defendants Harris, Belo, and WFAA disseminated a
television broadcast which was defamatory per se of and about Dr. Malouf (the "May 5, 2012
Broadcast"), in that the essence of the publication, when taken as a whole and as would have
14 A true and conect transcript of the October 8, 2012 Broadcast, and a true and conect copy of the October 8, 2012
accompanying article are attached to this petition as Exhibit "F" and incorporated herein by reference.
15 See Exhibit "E".
64. The "gist" of Defendants Candy, Harris, WFAA, and Belo's publications,
including, but not limited to the We are Serious Article, Water Games Article, October 8, 2012
Publications, June 26, 2012 Broadcast, and May 5, 2012 Broadcast was calculated and designed
by Defendants to leave the listener, viewer, or reader with an entirely false and untrue impression
that Dr. Malouf is guilty of a crime, Dr. Malouf is environmentally irresponsible, Dr. Malouf
filed for bankruptcy, Dr. Malouf has been stripped of his property, and Dr. Malouf refuses to pay
millions of dollars in bills. These untrue statements of and about Dr. Malouf have defamed him
in, thus causing him injury, embarrassment, humiliation and other compensable damages. The
reasonable interpretations as a reasonable listener, viewer, or reader would have, on the whole,
from Defendants' false, scandalous, and defamatory statements from the We are Serious Article,
Water Games Article, October 8, 2012 Publications, June 26, 2012 Broadcast, and May 5, 2012
Broadcast, include, but are not limited to those set forth above.
65. The false information published by Defendants Belo, WFAA, Harris and Candy
tended to harm the character and reputation of Dr. Malouf, so as to lower him in the opinion and
estimation of the community and in his profession and to deter other persons from associating or
66. Defendants published the false statements to countless individuals, knowing the
statements were false, acting with reckless disregard for whether the statements were true,
intending to leave a false impression, acting with ill will, or intending to hann Dr. Malouf, his
reputation and good will. Accordingly, Defendants Candy, Harris, WFAA, and Belo's acts were
16
See Exhibit "F".
matter, a private Plaintiff, and referred to Plaintiff by name. The statements were defamatory
implication.
implications, Dr. Malouf has suffered nominal damages and seeks recovery of same.
69. Plaintiffs re-allege and incorporate the facts and allegations set forth above in
70. Plaintiffs were injured as a result of torts committed by Defendants Candy, Harris,
and WFAA. At all relevant times, Defendants Candy, Harris, and WFAA were the authorized
agents, representatives, and or employees of one another and Belo. The torts were committed
while the tortfeasors were acting within the scope of their agency or representation. Defendants
are vicariously liable for the acts of their agents, representatives, and/or employees.
71. Alternatively, Defendants WFAA and Belo ratified the conduct of Defendants
Candy, Hanis, and WFAA and approved of the tortious conduct by word, act, or conduct after
acquiring full knowledge of the act, and their approval was given with the intention of giving
72. Plaintiffs re-allege and incorporate the facts and allegations set forth above in
73. Defendants Candy, Wilson, Harris, WFAA, and Belo acted in concert and
conspired together to commit the tortious acts desctibed herein. Accordingly, these Defendants
this action.
VI.
APPLICATION FOR TEMPORARY RESTRAINING ORDER
AND INJUNCTIVE RELIEF
74. Plaintiffs re-allege and incorporate the facts and allegations set forth above in
adopted by Harlis, WFAA, and Belo, continually trespassed upon the Residence without
Maloufs, the Residence and backyard continue to be fueled by WFAA, Belo, Hams, Wilson, and
her desire for public attention. In addition, WFAA and Hams have used extreme measures to
capture images of the secluded Residence backyard, such as utilizing helicopters and telephoto
lenses. Defendants' incessant unsolicited invasions into Plaintiffs' Residence, their solitude,
76. By way of example only, Candy's intentional acts of trespass related to the
Malouf plivate birthday celebration, the August 19, 2012, incident, and upon information and
belief, Candy's contemptible proposition of the Insider were purposed to (1) obtain plivate and
personal information about Plaintiffs, the Residence and the Malouf family, and (2) harass
Plaintiffs. Plaintiffs filed the Police Report in connection with the August 19, 2012, incident in
an effort to communicate that Defendants' actions were unlawful and should cease; however
Candy, Harlis, and WFAA continue to hound Plaintiffs and their Residence. Defendants
ceaselessly pursue the Maloufs and their property, with the intent to inflinge upon Plaintiffs'
seclusion, solitude, and plivate affairs by snapping pictures and snooping around.
statements to the Dallas/Fort Worth community and across the world in conjunction with
Defendants' repeated trespasses, invasions, and harassment have caused Plaintiffs injury.
Defendants' wrongful actions (trespass, invasion of privacy, and defamation) were and continue
to be made with malice and the intent to persecute Dr. Malouf and torment the Malouf family.
78. Plaintiffs have alleged causes of actions against Defendants Mary Candace Evans,
Byron Harris, Laura C. Wilson, WFAA-TV, Inc., and Belo Corporation, as indicated in this
Petition and in the attached Affidavits17, and have demonstrated a probable right of recovery and
likelihood of success on the merits, that Plaintiffs will suffer imminent, irreparable harm without
79. Unless Defendants Mary Candace Evans, Byron Harris, WFAA-TV, Inc., Wilson
and Belo Corporation are restrained and enjoined from undertaking and maintaining the conduct
and activities desc1ibed above, Plaintiffs will continue to suffer irreparable harm, for which
Plaintiffs have no adequate remedy at law. Accordingly, Plaintiffs request that the Court
immediately and temporarily restrain Defendants Mary Candace Evans, Byron Harris, and
WFAA-TV, Inc. and all others acting in concert with them from:
(a) physically invading or entering onto the real property of Dr. Richard Malouf and
Leanne Malouf, located at 10711 Strait Lane, Dallas, Texas 75229;
17 See the Affidavit of Dr. Richard Malouf; a true and conect copy of which is attached hereto as Exhibit "K", and
incorporated herein by reference. See also the Affidavit of Leanne Malouf; a true and correct copy of which is
attached hereto as Exhibit "L" and incorporated herein.
80. In order to preserve the status quo and the rights of the Defendants Candy, Harris,
WFAA and Bela during the pendency of this action, Defendants should be cited to appear and
show cause why they should not be enjoined, during the pendency of this action, from engaging
81. At this time, Plaintiffs Dr. Richard Malouf and Leanne Malouf respectfully
(c) After a final trial of this cause, Defendants Mary Candace Evans, Byron Harris,
WFAA-TV, Inc., and Belo Corporation and any and all others acting in concert
with them be pennanently enjoined from engaging in any of the conduct
desc1ibed above.
VII.
REQUEST FOR DISCLOSURE
82. Pursuant to Rule 194 of the Texas Rules of Civil Procedure, Defendants Mary
Candace Evans, Laura C. Wilson, WFAA-TV, Inc., Byron Hanis, and Belo Corporation are
requested to disclose, within fifty (50) days of service of this request, the information or material
described in Rule 194.2. Copies of documents and other tangible items should be served with the
Malouf pray that this pleading be received and filed and that Defendants Mary Candace Evans,
Laura Wilson, Byron Hanis, WFAA-TV, Inc., and Belo Corporation be cited to appear and
(a) A temporary restraining order and the injunctive relief sought herein;
(b) Judgment against Defendants for nominal damages in an amount within the
(c) A judgment pennanently enjoining Defendants from engaging in any of the conduct
described herein;
(d) Costs of bringing this action, including all reasonable and necessary attorney's fees,
(e) For such fmiher reiief, both at law and in equity, to which Plaintiff may show himself
justly entitled.
Respectfully submi.tt��
�
��
-----�-
By: (/ c:____
C. GREDDYSHAMOUN
State Bar No. 18089650
JOHN DAVID REED
State Bar No. 24075423
SHAMOUN & NORMAN, LLP
1755 Wittington Place, Suite 200, LB 25
Dallas, Texas 75234
Telephone: (214) 987-1745
Facsimile: (214) 521-9033
ATTORNEYS FOR PLAINTIFF
Thi s is to cert i fy that, to Plainti ffs' k nowledge, Defendants Mary Candace Evans, Laura
W i l son, Byro n Harris, WFAA-TV, I nc., and Belo Corporation arc not represented by counsel i n
this matter at the time that Plai nti ffs' Original Petition, Appl i cation for Temporary Restrai n i ng
Order, App l i c ation for I njunctive Rel i e f and Request for D i sclosure was fi l ed with the Court.
JO
��)
�:
VERIFICATION
STATE OF TEXAS §
§
COUNTY OF DALLAS §
B EFORE M E, the undersigned N otary Publ ic, on this day personal ly appeared Dr. Richard
Malouf, who having been by me first duly sworn according to l aw, upon his oath deposed and
stated as fol lows:
My name i s Dr. Richard Malou[ I am over 1 8 y ears of age. I am of sound mind, have
never been convicted o f a felony, and I am ful ly competent to make this Veri fication. The
statements contained in P laintiffs' Original Petition are true and correct to the best o f my
knowledge and belief.
, [()/,_ (;2
S UU SCRIBED A N D S WORN to before me. the undersigned notary public, on thi
day of October, 20 1 2 .
:�
B!og Con tact Co11\r tbuto1 s About the S1te News from Other S1tes
HOME ECONOMICS POLITICS URBAN ISSUES SMALL CITIES D EMOGRAPHICS SUBURBS CENSUS 2010 2012 BEST CITIES RANKING
CANDACE EVANS
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SUBSCRIBE TO NG ARTICLES
Real estate, land use, second home development, real estate investing
V i"" a ll su bjects
3 years 26 weeks
Are f' a rms the Suburban Future? C a ndy Evans 2
ago
3 years 35 weeks
Ge01ge W B ush Welcome Back to Dallas. Sort Of C a ndy Evans 0
ago
! Se;.1rch
Water Park Slides Have Arrived at the Malouf Manse on Strait Lane & World Now
Knows We Are Serious About Medicaid Dental Fraud in Texas
:.w. :2 01 :.:?
DM·hJJ
Tweet 2 Share
S(lmronc's kiddo pla�-s little league on the same leam as some other kiddo who.'.e dnddr is on Cily Council or is reeeeally high up in the City Engineer's
office . . .
.J ust - makes - me -- uncomfortable. And I'm a Realtor and all o\·er the American dream. Are these my tax dollars going down the drain'?
O.s million gallons of water? Tl1is m a kes l -ance Armstong u:-:ing lf)O.ooo gallons/month in Austin look small.
Pingback:
A'> lical'd ( )n Jo,/if neon: Tue:.;day. o8 ·21 2012 . , q8.-:- I<U T
The little kiddies better haw their mouth guards in place a s t hey swoosh d<nnl the gowrnment ( me the taxpayer) paid for entertainment !
An}· child or pan"nt with a legitimate All-Smiles receipt �hould ret'ein" frer admission to Strait Lane·s new \NaterPik Park.
Ul!-oh! T �l'-'SUnH:" you\·t" seen tlw eriminal trespass complaint against �ou (or whoeYer took those pictures) b�· M a louf!
1 think being listed at m1mber 67 on the Tr>p 100 most Expens i\'e ! tomes in Dallas list in 2009, was just too much for the old boy. I t must ha,·e shook his and
.Stcphy Leanne's enormous egos to their cores.
M aybe he \\"<IS visited b\" soute Boston medium who told him he must "build a home for yourself and for the spirits of the children mu haw
broken" You must newr stop building the house. !f you continue building, \"OU will liw forewL But if vou stop, then ,·ou ,,;11 die," like Sarah
\Vinehestcr.
Pingback:
/)enlist f(iclwrd ;\Jalnl!f. (/(('/1.-;l'd of .\Jedi!'r71d.frnud. docsn 't like it wlt!'l! real c_..;fuf(' NorJIJi'I'S come o n h i:-: proper!!} ! l11c ,<..,'n l(J}J /Ho(7
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J<idwni :l fnf,,�l/ ( '('"" the r 'op..:: < )n .He ( 'ondy f()/' Tokinq l'ics 'l/ [ f r..;; 1\ ntcr Jlork l'nrls.1 ! C(wdt(.:; ])irt i Poll�z� Ueol F:-:totc ,'\'cws 1111d Bloq h.!J Former Pallas
'
candy. }'ou are loH·d! just read r. wilonsk-y snippet about water pa rk . rw is cool, you are fantastic and byron harris i s hadass. (w h il e we re at it,
becky oi i,·er is a pit b u l l too! )
Pingback:
:t! n ndl/11 t1fil/ionnire(s!: 7'111' < ?lficiaf l,u...:: f .. f\n;-( ?(Sllml1ler S1rifl1111illg Pool Roundup i ( '1111(1_1(:> ])irf I nullo..:; 1\('o[ /�stote Nell'S ond Hloq hy FOT'Il1C1' /)olfos Dil'(
. nviL,!Jh , � r ii ! \ · l ( k \\il-li·,_
H un d re d . Condo l iYing nat ional news
stories a ffecting second homes
Tuesday Two H u n d red. Beach • · \ r·n h:n •' .1
H omes' cele britv real esta te. •pw·-li· >lJ', \ \ �' ( ! . 1 it "11 h ' 'lll qqr in
jnurnali"'t !,. , · 1 e n t \ ' ' 1 "<1! i ·<.; l Yt · · ...., · i u t • · l ! • I ·· h'''l' \ \ l l l t ! !) , · •·1 H.'111'.' . 1 n d ) J , , I { b ·r , , ._ T, I
Real Est . ate. Cetehritv Homes Real
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. · · c.. !\<1;• !j;•;•!l'-f· i l h i :-. llFtP i ! J . i ! ··, \1 ith !·.!Jh\ J !a!Jid,1\ � h 1 ' f d , H ..; r r V•-<1111 ( n =;1 • ! 1 ; <1
estate m a rket news. I)allas real estate .i�Hl t'nali.<.d_
news I,ouhoutin .-..,
OFFENSE
APT:
I NVESTIGATOR ASS I G N E D :
Crime classifications are based upon preliminary i n formation supplied to the Dallas Police Department by the reporting pa rties
and the preliminary classifications may be changed at a later date based upon additional investigation. Therefore, the D a l l a s
Police Department d o e s not g u a rantee (either expressed o r i m p l ied ) t h e accuracy, completeness, timeliness, o r correct
sequencing of the i n formation contained herein and the i n formation should not be used for comparison purposes over tim e .
T h e Dallas Police Department w i l l n o t be responsible for a n y error or omission, or for the u s e of, o r the results obtained from
the use of this informati o n .
OFFICER I NFORMATION
O T H E R O F FICER:
NARRATIVE
Crime classifications are based u po n preliminary information supplied to the Dallas Police Department by the reporting parties
and the prel i m i n a ry classifications may b e changed a t a later date based upon additional i n vestigation. Therefore, the D a l l a s
Police Department d o e s not g u a rantee (either expressed or i m p l ied ) t h e accuracy, completeness, timeliness, or correct
sequencing of the i n formation contained herein a n d the i n formation should not be used for compa rison purposes over tim e .
The Dallas Police Department w i l l n o t b e responsible for a n y error o r omission, or for the u s e of, o r the results obtained from
the use of this informati o n .
1. H a n d -carried t o the Records Sectio n , Dallas Police Headqua rters, 1400 S. L a m a r St. , Dallas, Tx. 752 1 5 .
2. Faxed to 2 14-67 1 -4636
3. E-mailed to openrecordunit@ d pd .ci. dallas.tx.us
4. Mailed b y US Postage to - Dallas Police Open Records, 1400 S . Lamar St. , Dallas, Tx. 75215.
For the past year, WFAA has been digging into Richard
Malouf and All Smiles Dental and Orthodontics, the chain
of pediatric clinics he owns (used to own, actually) with his
wife. What the station found was what appeared to be a
massive case of Medicaid fraud in which he bilked the state
for unnecessary procedures.
You might be wondering what Malouf has done with all the candy Evans
Real-estate blogger Candy Evans knows these things. She reported on it yesterdav on her blog and has
the architectural drawings filed with the citv to prove it:
In 20 11, they bought 10674 Strait Lane, the house next door, as I've told you. He debated
what to do with it, as any investor would. Should he remodel and flip it, after all, they got a
great price. Sell it to a home builder? Ultimately, he decided to keep the home and connect
the two properties, by building a bridge crossover between the two homes which you can
see from the street, with a drivewayjport-cochere beneath it.
Eureka ! 10674 Strait Lane would be his family's own personal sports world. Just walk there
over the driveway.
It'll have a sports complex complete with a basketball gym, bowling alley and rock-climbing wall, deep
pool, lazy river, and 35-foot high water slides. Being built by the guys who did H urricane Harbor. It's
under construction right now. Owen Wilson was none too happy with the noise when he was crashing
with his parents a few months back, Candy tells us.
All for the greater good, though, right? Surely he will give open access to all the impoverished children
on whose bfte.ks teeth he paid for the extravagance. H ave a shuttle that carries them straight from the
clinics. Not mentioned in the plans, but why else would one want a private water park?
Showing 36 comments
Think you can make it through writing an article without profanity or <del> tags?</del>
Dude - you are a complete loser. Why don't you troll some other blog since you obviously don't have a job o r anything worthwhile
to do.
Fraud happens to both public and private insurers. Medicaid provides healthcare more efficiently than private insurance,
Including fraud. Someone has to steal in order to get rich off Medicaid, in contrast to all the execs who've gotten rich off private
insurance.
"Medicaid provides healthcare more efficiently than private insurance" Actually Texas Medicaid has tradtionally been a
poorly run program allowing massive fraud by orthodontists because the state Medicaid administration bureacrats allowed
ALL orthodontic charges to be re-imbursed FOR YEARS without ANY scrutiny and evidentally without "noticing" the
escalating outflow of tax payer funds for shoddy orthodonture exceeded total costs in Georgia and California combined. FYI,
the state now outsources administration of many Medicaid funds to third party private insurers who are remarkably more
efficient and capable .. The NYT has an article yesterday which reveals those pushing hardest for expansion of Medicaid are
private hospitals, including NFPs (whose 1% CEOs make up to $smillion/year here-TH R). Hospitals pushed for the ACA
realizing their gravy-train was about to be de-railed in 2014-decreased Ins and Medicare re-imbursements like other
physician providers are stuck with since 1992- but could make it up with enhanced Medicaid enrollment. Those NFP
hospital system CEOs could continue to make millions and YOU can pick up the tab.(sucker)
and, all that fraud, cost a fraction of what the LI BOR scandal cost the taxpayers of this country.
Just a perfect illustration why the Obama proposal on ending the tax reductions for the wealthy are justified.
Think moving the tax rate to 39% from the current 36% would have a negative affect on this guy?
Hell yes it would have a negative effect! He might have to reduce the height of his private water slides, which would reduce the
velocity of the" trickle down".
The government can waste it a Jot more efficiently that the private sector.
The irony of using a guy accused of stealing tax dollars to justify increasing the tax dollars he stole from is lost on you right?
no, but the irony of you posting a remark that in effect says that anyone who abuses the system for financial gain deserves
to get a reduced tax liability on that income sure is fun.
bwahahahaha
apparently your "point" is that M alouf is "accused of stealing tax dollars", which BTW isn't accurate, and that my
pointing out that this doctor has is benefitting from a lowered tax levy on his amassed wealth
of supposed illgotten "tax dollars" is somehow irony.
What Malouf did was manipulate the system to bill the state for excessive amounts of orthodonic work that many
say wasn't needed. Of course, M alouf has settled those claims with no guilty verdict and therefore no crime, and
certainly no "stealing [of] tax dollars" exists.
M alouf is just a symbol of how inequitable the tax system has become under its current structure, where he can
amass the wealth to build a private water park off the back of public dentistry, or the hedge fund and venture
capital investor who isn't taxed at the same rates as us common people because they have "carried i nterest" rather
than having just everyday income. which in reality it is, just everyday income.
So let's hear it: is increasing the effective tax rate on a person such as Malouf the proposed 3% unfair and
inequitable? should the income from "carried interest" be taxed any different than standard income? well?
You Sir are obviously correct.. .lets cut off ALL federal subsidies that could be abused. You know like
Transportation , Unemployment ,Medicare,Medicaid,Agricultural,Education...... .
cngntofo <! months ugo i n rcph lo ( �;i l co kcqH • I I i l l " ' 111
He swings . . . . .h e misses
The government is a crime victim here - don't you think it should just shoot the perp?
I also have no problem "blaming the victim" and the Obama voters that enable it.
higher tax rates shows up as slightly higher revenue. Even under Ike's 94% tax rate, the effective rate
was only 22%
FYI providing and charging for unnecessary and excessive medical services to Medicaid and M edicare
patients is fraud and punishable by the (federal) DOJ.
Manipulate the system, I did that when I was six, I manipulated the checkout line at Kmart and somehow
had extra HotWheels
Define "wealthy."
wow, that's a lot. from what you've posted my guess is about 98% of all Americans make more than you do.
stupid comment.
Why do all these multimillionaire con men stick around to get caught, as opposed to changing their name and moving to Argentina?
Good question. Often socio-paths operate as though they want to get caught.
Because America i s a great place to be, especially when you are loaded
Belo goes after this water park, but has no problem touting the city's failed whitewater and the doomed Trinity tollway.... Partisan
swine.
linrurl.com /nilnzc
http://www/wfaa. com/news/investigates/Attoreny-General-files-lawsuits-related-to-WFAA-dental
i nvestigations-160402665.html
TEXAS ATTOR N EY G E N ERAL F I LES SUIT AGAINST DR. R. MALOU F - ALL S M I LES D E NTAL
W FAA - Byron H a rris rep o rts on c h a rges filed by Texas AG aga i n st a m ajor fra u d ster in Texas
o rthodo ntic.
Cash for crooked teeth . Texas tax payers have paid o ut m i l l i o ns of d o l l a rs. Now the Texas Atto r n ey
G e n e ra l wa nts 30 m i l l i o n of it back from a D a l l a s dentist. The state is s u i ng the dentist for fra u d . All of
it after a n ews aid i nvestigation . C h a n n e l 8's B rett S h i p p has the follow up tonight.
Brett Shipp: Byron H a rris' year long i nvestigation i nto q uestion a ble Med i ca id d e ntal payme nts h a s
exposed o n e o f l a rgest d e nta l o v e r b i l l i ng sca n d a ls i n the nations. O n e of the central fig u re s i n t h e
i nvestigation, D a l l a s d e n tist Richard M a l ouf, whose b i l l i ng successes afforded h i m t h i s m u lti m i l l i o n
m a nsion, corpo rate jets, a n d n u m e ro us l ux u ry ve h icles. N o w Atto rney G en e r a l G reg Abbott, a nd h i s
Civil Medicaid Fra u d Division have ta ken notice. T h e AG h a s filed two civil lawsu its accusing M a l o uf a nd
his p a rtners of vio lating State Med i ca id Laws. The court fil i ngs layout the a l leged sch e m e . D e n t a l c l i n ics
a l legedly i m p ro pe rly recruiting welfa re fam i lies, p e rform i ng need less o rthodo ntic work on the c h i ld re n ,
t h e n b i l l i n g the state fo r m il l i o n s of t a x payer d o l l a rs . H a rris' i nvestigation revea led Texas paid m o re i n
Medicaid o rthodontic c l a i m s t h e n the oth e r forty- n i n e states com bi n e d . T h i s past A p r i l a Congress i o n a l
Com m ittee t o o k note a n d a k e y wh istle blower, D a l las O rthodo ntist, C h ristine E l l i s testified a b o u t h e r
contin u i ng frustrations.
Christine Ellis: " I was contacted by both Texas OIG a nd the Atto rney G e neral with i n a bo u t a w e e ks
p e riod after o n e of Byron H a rris' sto ries ra n ."
H u m a n Services ta l k to you?"
B rett Shipp: I n addition to the Congressio n a l H e a ring seve r a l key M edicare regu lators i n the state
h ave a n nou nced resignations or been reassigned. In M a rch Dr. M a l o uf agreed to pay 1.2 m i l l i o n d o l l a rs
to Federal a n d State reg u l ators i n a sett l e m e nt over q u e sti o n a b l e b i l li n g . H e h a s yet to com me n t o n the
a l legations but filed for B a n k r u ptcy and i s i n the process of divesting his o nce i m p ressive e m p i re a nd
the Attorney Ge n e r a l spokesma n said today t h e i r i nvestigation is o ngoing. B rett S h i p p for Cha n n e l 8
N ews.
EX H I B IT " F"
ALL SMILES DENTAL CENTER FILES FOR
BANKRUPTCY FOLLOWING INVESTIGATION
h ttp://www wfaa com/news/investigates/A I I Smi les F i les for Bankruptcy
. .
- - - - --
1 50243 685 html
.
May 5, 20 1 2
BYRON HARRIS (WFAAINEWS 8): Frenos Gratis Con Medicaid reads braces with
Medicaid even today All Smiles advetiises free braces with Medicaid even though the
state of Texas was never supposed to routinely provide them and this All Smiles clinic in
Oak Cliff remains open but for the last several months the All Smiles empire has been
declining fi·om dozens of clinics to fi·om when our investigation began to a handful today.
This high volume clinic on Garland Road has closed. I n Chapter l l All Smiles lists $ 50-
I 00 million in liabilities and $ 1 - 1 0 million in assets. At one point, All Smiles b illed as
much for Medicaid braces as the entire State of Illinois. Its leader, the flamboyant dentist
Richard Malouf, he had two corporate jets, a Bentley, a Porsche, and a chateau in Dallas '
toniest neighborhood. Richard Maloufs $ 1 1 million mansion is a symbol of the wealth
he built under Medicaid, its untouchable in this bankruptcy and its getting even bigger.
On his sprawling Strait Lane propetiy, Malouf is expanding his chateau. Construction
crews appear to be doubling the size of the original. Malouf still owns 28% of All Smiles.
Most are owned by Valor Equity of Chicago. In March, Malouf agreed to pay the federal
government $ 1 .2 million to settle a case for the alleged fi·audulent billing of Medicaid for
over tour years. He admitted no wrong doing. Although he is listed as a creditor in the
All Smiles bankruptcy, Malouf ' s empire appears intact. He can smile at life. Byron
Harris, Channel 8 News.
11 11
EX H I B IT G
Transcript of WFAA October 8, 2012 Broadcast
173187881.html
WFAA: When you t h i n k wate rsl ides you p ro b a b ly think H u rrica n e H a rb o r o r Hawaiian Falls n ot the
l u x u ry h ouse of a N o rth Texas d e ntist u nd e r investigation for fra u d . This p rivate water park belo ngs to
Texas most fa m o us d e ntist Dr. Richard M a lo u f a nd to n ight our o ngoing n ews aid i nvestigation reve a l s
h i s estate continues to grow. A s his d o e s h i s b i l l i n g p robe.
Byron Harris: The t h ree sto ry water p a rk i s nearing co m pletion even t h ough its owner Dr. R i c h a rd
M a louf is being sued for fra u d by the atto rney general. All s m i les d e nt a l ce nters the co m pa ny h e
fo unded a nd stil l owns p a rt o f d ecla red b a nk ru ptcy e a r l i e r this yea r. But t hat's o n ly p a rt o f the fin a ncial
backgro u nd b e h i n d Richard M a l o uf. N ews C h a n n e l 8 investigates.
Byron Harris: Forget Disney La nd this is De nta l Land b u i lt by a dentist who m a d e a fortu n e from the
Med ica id d ental p rogram i n one of Dal las' poshes! n eigh borhoods with water slides a n d a l a zy river. It
will use six a nd a h a lf m i l l i o n g a l l o n s of wate r so m uch it has its own we l l . It p e a ks t h rough the t re e s
into neighbors' ya rds. The latest ed ifice i n the e m p i re of M ed icaid de ntist Dr. Richard M a l o uf. T h a t' s
h i m i n the B entley e m e rging from b e h i n d h i s i ro n gates. W h e n h e spots us ta king h i s pictu re h e c a l l s
D a l l a s police, wit h i n seco nds the p o l ice a rrive t e l l i ng us we a re just fi n e w h e re w e a re .
Byron H arris: The n his gard en e r sta rts trying to s pray us with a h ose from a cross the street.
Byron Harris: Despite h i s fo rtress o f assets, M a louf won't ta l k to u s . Si nce last yea r h e h a s d o ubled
the size of his French chateau o n Stra it La n e . The new o n e acco rd ing to reco rds filed with the city has a
bowling a l ley a n d a gym n a s i u m ; he has a m il li o n d o l l a rs worth of p r o p e rty at the ra nch n e a r Poss u m
Kingdom La ke. A secon d h o m e l a rg e r t h a n most people's first h o m e . A n d t h ree lots worth t h re e
h u n d red fifty thousand d o l la rs, p r o p e rty records show. But despite M a l o uf's roster o f p hysica l
possessio ns, news aides learned he h a s a history of being sued for not paying h i s b i l l s .
Byron Harris: I n Atla nta a co u rt order says All S m i l e s D e n t a l Cente rs o w e s a n i nvestment ba n ke r more
t h a n 3 . 2 m i l l i o n d o l l a rs from w h e n M a lo uf was CEO. In D a l l a s records show he had a federal tax l i e n of
m o re than two h u n d red twe nty five thousand d o l l a rs agai nst him in 2006 which h e u ltimate ly p a i d . And
i n Dallas Co unty reco rd s show co nstructio n fi rms have filed six o utsta n d i ng l i e n s agai nst his chate a u for
m o re t h a n o n e h u nd red twelve thousand d o l l a rs ove r the past thre e yea rs. Severa l entities have t h e i r
eyes o n M a l o uf, first, B a n kr u ptcy Cou rt M a lo uf sti l l o w n s p a rt of All D enta l S m i le s De nta l Centers w h ich
decla red ba n k r u ptcy e a rl i e r t h i s year. Second, the Texas Atto rney G en e r a l is suing M a louf fo r M e d icaid
fra u d .
A w histle blower says 90% of the c l a i m s All S m i l e s filed u n d e r the Med i ca i d O rthodontic P rogra m w e re
fra u d u l ent, M a lo u f d e nies the c h a rges. But a l l smiles billed the state more that 5.5 m il l i o n d o l l a rs for
com posite fil l i ngs in kid's teeth u nd e r M e d icaid last yea r. And M a l ouf's n e ighbors a re watc h i n g h i m .
Byron asking Candy: Does the water park necessa rily e n h a nce the value of the p ro p e rty.
Candy: This water p a rk? Absol utely not. The neigh bors a re very d istressed, beca use they d o n't w a n t to
look at wet a nd w i l d . Even though you have got these two a nd th ree acre p r o p e rties you ca n s t i l l see
this thing.
Byron: The workers we have ta l ked to say they a re sti l l getting paid. M a l o uf is m a naging this
constructi o n h imse lf. Stil l a s the ba n k r u ptcy a nd fra ud cases work t h e i r way through the cou rts, t h e
d o o rs m a y n o t h ave closed o n the stage o f denta l work.
Search
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Second heltersBiog
""""'""' ecouse you con never hove loo many homes '"-""
Sliders of Blue: Would You Put a Private Water Park in Your Backyard?
1 of 3 1 01 1 /20 1 2 2:25 PM
� u uers U l D I U e : VVUUIU I U U r u L a r i i VaLt: vv a Lt.:I r a i K Ill I UUl Udf..... l\. JcllU . . . u up . ! ! W W W . ;:")�\.,V1lU3li\.,H\_, I 3 . \..-V l l lf .£..V l .£../ V U/ .:.. l / J l l 'U- "-" .l .;r v i U"-"- P '-' " - ....J I 1 Y U.'-'-' n...
any of you were a.'l surprised a.'l I was over this Medicaid deal - I mean, I know what Medicaid reimburses physicians for
'""ou''""-" care and it is barely enough to cover the exam table paper in the office - it seems as though the problem stemmed
a 2007 civil lawsuit (that really started in 1993) that made the state inct"ease reimbursement rates for Medicaid dental
"The suit, a federal class action filed by parents in 1 993 against state officials, alleged Texas was failing in its
duty to ensure that children on Medicaid received proper preventa tive care in dental and other areas.
Eligibilih.J for Children's Medicaid in Texas is pegged to income. In 2007, Texas legislators agreed to settle,
conceding tha t there was a dwindling number of doctors and dentists in the state willing to treat Medicaid
patients and agreeing to increase Medicaid-reimbursement ra tes. A 2012 report by the House Com mittee on
Oversight and Govemment Reform offered case stltdies in various states of supposed Medicaid abuse; it
cited dental services in Te.xas as a particular problem area. By 2010, according to the report, Texas'
Medicaid program was spending more on braces than the other 49 state Medicaid programs
il : d U\ I f i l l H : > l ' l i ' , l< ' i l< l !' l i '( i , : t nd I wonder why the ws.J doesn't mention his report. It has also, like always,
in the loss of services for kiddos who really need it: All Smiles Dental Professionals P.C., has shuttered 13
2 of 3 1 0/ 1 /20 1 2 2:25 PM
lorihodontic offices in the Dallas area because of the investigation, leaving an estimated 12,000 Medicaid-eligible patients
I . I1out care .
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jBut hey, \\ : l l l'r- Pi k Pa r k � � ( ' " I I! Look at those slides just waiting to be installed! I t :--. 1 ( ' "' m i l l i " n .� < il i o n ,; of \\ all'!.
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Seco n d h on'!fe�! �p1d t a xes, Secon d Since its launch in October, 2010, SecondShelters.com has established itself as the
!l o m e c ka l s . .N c·\\ Yo r k Ci tY, U rb a n
, center of the second, vacation and investment home real estate universe offering readers
House P<>m Candy, sales and insight, community comparisons, investment info, celebrity
sevo nd li o m es, ,\ s k Cl ! ! d v:secoml
"f' word (foreclosures), where it's hot,
h o m e d e m og ra p h i cs, R � 11i c h es ,
deals, new developments, the where it's not, and of
·tH1(h·.:.;; L) i r t . co n t , c i ncr�i t 1 g real c\Stat e enemy; a journalist who visits and reviews each property, eyes t.ite neighborhood and
kicks the tires hard in her Louboutilts. Make no mistake: Candy Evans !<'II> i t l i ke' il i,
n l a rk(:ts, Real Est a te, B'c;H:h ! l ome.:: ,
Updated daily, reported accurately for the real estate consumer, and always spiced with
Sec o n d h o m e t re nds, Rc;d es t a ll'
dish from readers and experts, SecondShelters is a daily fix for anyone with Second Home
m a r k et !1C\\ s , C e l ebritY H o t m•s, House Addiction or who has ever dreamed of multiple home ownership... because one is
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3 of 3 10/1/20 12 2 : 2 5 PM
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11 11
EX H I B IT
w aLer parK LaKes snape Hl oa\:Kyaru u1 ut:Hll:SL w 1 1u u w e;; s uuutuH:s 1 w taa.�,.;uut uauas - r vl l . . . 1 a�co 1 v 1 £..
by BYRON HAR R I S
WFAA
Posted on October 8, 20 1 2 at 1 0 03 P M
NEWS 8 INVESTIGATES
This "skyscraper" is really a three-story water slide and lazy river in the backyard of
Texas' most famous dentist.
http://www.wfaa.com/news/investigates/Water-Park-Nears-Completion-While-Bills-Go-... 1 0/ 1 2/20 1 2
w ater parK LaKt:S suapt: HI ua�.;Ky dl u v 1 ucu u :, L w uv v w c:, uutuvu;:, 1 vv 1 aa ... vu1 LJa11a;:, - � vH. . . � ub'"' ... vL ...
Dr. Richard Malouf made millions from putting braces on children under
Medicaid.
In a whistleblower lawsuit, the Texas attorney general says much of Dr. Maloufs
work was fraudulent. All Smiles Dental Clinics - which Malouf founded and still
owns part of - filed for bankruptcy earlier this year.
Work on the water park and an addition to Maloufs huge chateau on Strait Lane
continues.
A turquoise pigtail of a water slide curls over the backyard and peeks through
neighbors' trees. A five-foot wide, concrete-lined Lazy River water feature is taking
shape below.
But a News 8 investigation fi nds the Bentley-driving Malouf has a history of being
sued for failing to pay his bills.
Malouf owes an Atlanta-based banking firm $3.2 million for services rendered but
not paid for, according to findings by a federal court last year.
Dallas County records show Malouf owed the I nternal Revenue Service $ 226,0 0 0
for income taxes through the mid 2000s. H e paid the tax bills shortly before h e sold
most of All Smiles to an equity firm.
But Malouf has not yet paid half a dozen firms that have worked on his mansion .
There are liens for more than $ 112,000 on his property over the past three years.
Because homesteads are shielded from seizure i n Texas, wealthy homeowners often
put as much money into their homes as possible in the face of legal action like
Malouf faces.
But Dallas real estate agent Candy Evans said the water park may not
enhance the value of Maloufs property.
"Even a swimming pool now is looked at as something that will lose value. It's like a
car," Evans said. "It's going to be a huge negative for the prope1ty. The neighbors
are distressed because they don't want to look at Wet 'n Wild."
Email bharris@wfaa.com
http://www.wfaa.com/news/investigates/Water-Park-Nears-Completion-While-Bills-Go-... 1 0/ 1 2/20 1 2
11 11
EX H I B IT J
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Richard Malouf Really Likes Water Games, Turns Hoses On Us On Strait Lane
E\;,ns on fktolwr 2. 2012
Can 't wait for the story to nm . See, Malouf really is trying to create Wet N Wild over there on Strait Lane even in the
streets.
Meantime, wanted you to see the new "No Trespassing" signs he has put out. They mean business, too, as I'm told orders
have been given to shut the gates immediately after they are opened. Operation protect Water Pic Park!
10 Responses to Richard MaloufReally Likes Water Games, Turns Hoses On Us On Strait Lane
Scott on October 2, 2 0 1 2 at 1 2 : 10 pm
You'd probabh haYe gotten a much lwtter response if Hm'd brought a ,·an ful l 2-yr-old Medicaid recipients for their appointment to get braces on
their baby teeth.
Sounds l i k e \'l>n're a nosy jealous bitch as well as ,Joe and Churk and Scott and ,Joanna and Mike, all pathetic jealous srabs. R}Ton Hanis "busted"
Dr. M a l ouf, ll\ron didn't bust anyone. llr. Malouf issued the State of Texas an inYoice and the,· paid it, case closed. Cet a l i fe �·ou pitiful wanna
lw.
Gee dnps RPd haw a had toothache" Perhaps he should spc a dentist.
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