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George Pajon vs Sean Larkin

George Pajon vs Sean Larkin

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Published by SharonWaxman

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Published by: SharonWaxman on May 11, 2011
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05/11/2011

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DefendantSeanLarkin(referredtohereinasthe"Larkin")is,andatalltimes1RichardA.Kolber,Esq.(SBN125869)LAWOFFICESOFRICHARDA.KOLBER22029CenturyParkEast,Suite900LosAngeles,CA90067-29103Telephone:(310)557-1902Fax:(310)557-19044
ORIGINAL.!
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DIstrict
MAY102011
5AttorneysforPlaintiffsGeorgePajon,Jr.andElCubanoMusic,Inc.
LOS
ANGEl.:
..SUPERIOR
cot~r
6
SUPERIORCOURTOFTHESTATEOFCALIFORNIACOUNTYOFLOSANGELES
7
8910GEORGEPAJON,JR.andELCUBANOMUSIC,INC.,
1112
13Plaintiff,vs.)CaseNo.:
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._
lC093578
26mentionedhereinwas,anindividualresidingintheCountyofLosAngeles,StateofCalifornia,atSEANLARKIN,anindividualanddoing14businessasLARKINBUSINESSMANAGEMENT;LARKINBUSINESS15MANAGEMENT,LLC;andDOES1-50,inclusive,161718192021
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232425Defendants.COMPLAINTFOR:
1.
BREACHOFORALCONTRACTFORPROFESSIONALSERVICES2.BREACHOFORALINDEMNITYAGREEMENT;
3.
PROFESSIONALNEGLIGENCE;4.BREACHOFFIDUCIARYDUTY;
5.
CONSTRUCTIVEFRAUDPlaintiffsGeorgePajon,Jr.andElCubanoMusic,Inc.allegeasfollows:Parties
1.
PlaintiffGeorge
Pajon,
Jr.(referredtohereinasPlaintiffor"Pajon")is,andatalltimesmentionedhereinwas,anindividualresidingintheCountyofLosAngeles,Stateof2.PlaintiffElCubanoMusic,Inc.isaCaliforniacorporationwithitsprincipalplaceofbusinessintheCountyofLosAngeles,StateofCalifornia.California.27timesdoingbusinessasLarkinBusinessManagement.28
1
COMPLAINT
 
'.
14.PlaintiffisinformedandbelievesandbasedthereonallegesthatDefendantLarkin2BusinessManagement,LLC(referredtohereinas"LBM")isalimitedliabilitycompany3organizedunderthelawsoftheStateofCalifornia.Plaintiffisinformedandbelieves,andbased4thereonalleges,thatatalltimesmentionedhereinandrelevanthereto,eachoftheDefendantswas5theagent,servant,and/oremployeeofeachoftheremainingDefendants,andindoingthethings6hereafterallegedwasactingwithinthecourseandscopeofsuchagency,servitudeand/or7employment.85.ThenamesandcapacitiesofDOES1through50,inclusive,whetherindividual,9
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corporate,associateorotherwise,arepresentlyunknowntoPlaintiff,whosuesthesedefendantsbysuchfictitiousnames.PlaintiffwillseekleaveofthisCourttoamendthiscomplainttoshowthetruenamesandcapacitiesofsuchdefendantswhenascertained.6.DefendantLarkinisliablefortheactsofeachoftheotherDefendantsasallegedinthiscomplaintasthealteregosofeachother.RecognitionoftheseparateexistenceofthesedefendantswouldpromoteinjusticebecauseLarkindominatedandcontrolledLBMandeachoftheotherDefendantsasfollows,oninformationandbelief:heusedthecorporateidentitiesasaninstrumentalitytocommitthefraudallegedherein,ignoredcorporateseparatenessandformalities,failedtoproperlycapitalizethebusiness,co-mingledfunds,andformedthebusinessentityforfraudulentpurposesandtoshieldhimselffromliabilityforhiswrongfulactsandomissions.FactsCommonToAllClaims
7.
PlaintiffPajonisarespectedandsuccessfulguitarplayer,songwriterandmusicproducer,mostknownforhisinvolvementwiththemusicalgroupBlackEyedPeas.EICubanoMusic,Inc.("EICubano")isPajon's"loan-out"company.Atallrelevanttimes,DefendantLarkin,doingbusinessasLarkinBusinessManagement,andDefendantLRB,wereinthebusinessofprovidingso-calledprofessionalbusinessmanagementservicestoindividualsincluding,butnotlimitedto,receiving,managinganddisbursingtheirincome,payingtheirbills,preparingtaxreturns,evaluatingandmakinginvestments,aswellashandlingothermatterspertainingtogenerally-acceptedpracticesofbusinessmanagersrepresentingindividualsintheentertainmentindustry.
2
COMPLAINT
 
1
COMPLAINT
2Defendants,andatalltimestheyplacedtheirfaithandconfidenceinDefendants,whomthey8.Atallrelevanttimeshereto,Plaintiffswerethebusinessmanagementclientsof3entrustedwiththeirfinancialwell-being.Thebusinessrelationshipcommenced
in
orabout19994forPajonand2004forEICubanoandterminatedinoraboutJuly2009.Inexchangefor5Defendants'agreementtoprovideprofessionalbusinessmanagementservicestoPlaintiffs,6PlaintiffsagreedtopayanddidpayDefendantspayfivepercent(5%)ofPlaintiffs'totalgross7compensation,exceptforPlaintiffstouringincome,duringtheentiretyofDefendants'8representationofPlaintiffs.
9.
.
Duringthe10-yearbusinessrelationship,DefendantsrepresentedthatSeanLarkin9
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wasacertifiedpublicaccountantwithtremendousexperienceintheentertainmentindustry.Infact,albeititunknowntoPlaintiff,LarkinwasnotaCPAnordidhehaveanyotherprofessionalcredentialsinaccounting.BasedonDefendants'representationsregardingLarkin'scredentialsandexperience,PlaintiffentrustedDefendantswith-andDefendantsvoluntarilyandexpresslyundertookresponsibilityfor-renderingtoPlaintiffvariousstandardbusinessmanagementservices,includingbutnotlimitedtomaintenanceofallofPlaintiffsbankaccounts,paymentofPlaintiffsbills,obtainingmortgageloans,handlingPlaintiffsinvestmentsandretirementfunds,andhandlingalltaxmattersonbehalfPlaintiff,includingbutnotlimitedtothepreparationoftaxreturnsandpaymentoftaxesonPlaintiffsbehalf.Eachyear,DefendantsrepresentedtoPlaintiffsthattheypaidPlaintiffs'taxes.10.InoraboutJuly2009,PlaintiffbecameawarethatDefendants,whowerestillactingashisbusinessmanager,andwhowereresponsibleforthepreparation,filingandpaymentoftaxesonbehalfofPlaintiffandhisloan-outcorporation,failedtoprepareorfileanyFederalorStatetaxreturnsorpayanytaxesonbehalfofPlaintifforhisloan-outcorporationforasequentialperiodofsix(6)yearsfrom2004-2009.Thisresultedinalargetaxliability,includingsignificantpenaltiesandinterestcharges,thataccruedovertimewithoutPlaintiffsknowledge.AsadirectresultofDefendants'actsandomissions,Plaintiffsloan-outcorporationwassuspendedbytheStateofCalifornia,havingbeendeemedaninvalidcorporationseveralyearsearlierwithoutPlaintiffsknowledge.Atthesametime,PlaintiffslearnedthatDefendantshadmismanagedmerchant3

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