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LAIMLY & SINGER rRorEssIol$AL , coRPoRATIoN JohnA.ctarke,Execonve0ffieer/clerk ^Atrftnn ^ mrArr I rrr/?? T^ndq T 3 2049 Cenatry Park Easr, Suire2400 Los Angeles,California 90A67 -2gA6 4 Telephone:(310)55G3501 Facsimile: (310) 556-3615 CONFERENCE MANAGEMENT CASE o t Email: rndsiner@Iave sinp r. com Iy e bwqlftdlav elys ger. com in FEBOT Z[]IO 6 tea g4n(&lavelysi n ser.c0nr 7 I I [0 11 Attnrneys for Plainriff NICOLAS CAGE

PIAI{TIN D. SINGER (Bar IYo. itLE6) BRIAN c. WOLF [Bar No. LSSZSTI pp_q u' "riAtiA"F{(Bar No. 207426') rrJuD S. EAGAN (Ea{l{9'*a0flry'l

Court SuPerior Loi Angeles

I CIcl 62009

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SUPERIOR COURTOF THE STATEOF CALIFORNIA FORTI{E COUNTYOF LOSANGELES WESTDISTRTCT NICOLAS CAGE, an iudividuat, Plainiff,

t2
13 l4

CASENO.

sc105285

COMPLAINT F'OR: (1)

v. 15 L6 SAMTIEL J. LEVIN, an individual; SAMIJELJ. LEVIN, C.P.A.,INC., A ) L7 Califoroia corporariorr; LEVIN & ) COMPANY MANT.CEMENT, INC., A i t8 busiaessentity, fiorm unknown; and DOES i I through50, iaclusive, ) \ L' Defendanrs. ) 20 i 2t
o,

a, (3)
(4'

(s)

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(T

PROFESSIONAL NEGLIGENCEI BR"EACIIOtr' F'IDUCIARYDLIIIYT CONSTRUCTIW FRATJD; CONCS,AI"KIENT; NEGLIGENT S{ISREPRESENTATION; BRHACH Of' COIffRACT; arrd ACCOT]NTING DEMANU FOR.TARY TEIaL

PlaiutiffNICOLAS CAGE ("Plaintiff' or nCage")allegesas follows:

23 24 25
1.

sul{MA.RYOF CLAIM
Nicolas Cagais one of the most soughtafter afid lrighly paid actorsin the worgl.

26 I'Ie is alsothe victin of an incomperent business maoager, Samuel Levin ("Levin"), who lined J. 27 his pockas with several million dollars in businessmanagement fees while sendingCagedown 28 a path toward financial ruil.
l-7d\PLE\COMPLAIN? Kr\151 l0l309,wFd

Like many successfulartists who trusr financial professionals ro

L advisethem,Cagerelied on Levin to handlehis financialaffairsto ensure that he andhis family ). would have a financially securefuture built on the foundationof the substantial moniesCage 3 4
5

earned throughyearsof hardwork. However,Cagediscovered he is now forcedto sellmajor that assets investments a significantlossandis facedwith hugetax liabilitiesbecause Levin's and at of incompetence, misrepresentations recklessness. Rather thanattaining financialsecurity,Cage and

6 hasbeenforcedto dispose significantassets order to pay for Levin's grossmisconduct. in of 7 I 9 2. NicolasCageis a worlclrenowned Academy Award winningactor,andis oneof

the mosthighly respected sought in and afteractorsin Hollywood,havingappeared excess fifty of (50) motionpicturesduring the pasttwo decades.In 2001, Cageretained Levin, a business

his 10 manager certifiedpublic accountant, oversee manage business and to and interests, investments 1 1 and finances. For the nextsevenyears,Levin profited off of the hard work and creativeability of and Cage's wealth t2 of Cage,payinghimselfmillionsof dollars. Instead protecting preserving

13 during one of the greatesteconomicperiods in the country's history, Levin placed Cage in t4 numeroushighly speculativeand risky real estateinvestments,resulting in Cage suffering
losses. In addition,Levin failedto timely pay taxeson behalfof Cagewhendue, 15 catastrophic owedby Cage. t 6 resultingin millionsof dollarsin backtaxes,interest penalties and

t7

3.

It was only recently, when Cage terminatedLevin and retainednew business

18 management accountant and services,that Cagelearnedthe gravity of his financialcondition. 19 Among other things, Levin recommended facilitatednumerous and highly risky and speculative
portfolio;failedto obtain investments; failedto properlydiversifyCage's 20 real estate investment insurance behalfof Cage his variousinvestments 2l properandadequate on and leavingCagesubject .,, to uninsured claims;andmisrepresented concealed and Cage's true financial the status at time that

23 plaintiff acquiredassets and investments.As a result of Levin's grossmismanagement the of 24 financialaftairs of Cage,Cagehas sufferedsignificantmonetarylosses,and his reputationhas 25 beenirreparablytarnished. 26 tl I 27 28
K :\1531 ?6\PLE\COMPLAINT101309.wpd -

COMPLAINT

1 ,, 3 4.

ALLEGATIONS COMMON TO ALL CAUSESOF ACTION The Parties Cageis, andat all timesrelevantheretowas,a part-timeresident the Countyof of

4 Los Angeles, State California. of
3

5.

Levin is, andat all timesrelevant hereto was,an individual residing theCounty in

6 of Los Angeles, Stateof California. 7 8 6. Plaintiff is informedandbelieves, based and thereon alleges, Defendant that lJvin

is entity, form unknown,with its & Co. Management, ("kvin Management") a business Inc.

State California. 9 principalplaceof business located the Countyof Los Angeles, in of 10 7. Plaintiff is informedandbelieves, based and thereon that alleges, Defendant Samuel

place business 1 1 J. Levin, CPA, Inc. ("Levin, Inc.") is a California corporation, with itsprincipal of 1 2 located theCountyof Los Angeles, in of Levin, Levin Management State California. (Defendants referred collectively "Defendants.") to 13 andLevin, Inc. are sometimes as t4 8. Plaintiffis informed believes based and and thereon alleges LevinManagement that

15 and Levin, Inc. are mere shellsonly andhaveno existence separate apartfrom their owner, and 16 Levin. At all times mentionedhereinthere existeda unity of interestand ownershipbetween T7 Levin and his companies Levin Management Levin, Inc., such that any individuality and and 18 separateness betweenLevin, on the one hand, and Levin Management Levin, Inc., on the and 19 otherhand,hasceased, both Levin Management Levin, Inc. arethe alter egosof Levin. and and 20 2l
J'

9.

Plaintiff is informed and believesand basedthereonallegesthat the assets and

propertiesof Levin Management, [nc. and Levin, Inc. are commingled with the separate assets of Levin, suchthat there is no distinctionbetween individualand the entity assets.Plaintiff the

23 is further informed and believesand basedthereonallegesthat adherence the fiction of the to

z4

separate existence Levin Management Levin, Inc. as entitiesdistinct from Levin would of and

25 succeed avoidinglegally incurredliabilities while maintainingthe benefitsof the entities,an in 26 unfairandunjustresult. 27
10. The true namesand capacities the defendants of DOES I through50, inclusive,

28 whetherindividual plural" corporate,partnership, associate otherwiseare not known to or
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COMPLAINT

I ) 3 4

Plaintiff, who thereforesuethesedefendants suchfictitious names. Plaintiff will seekleave by of court to amendthis complaintto showthe true names and capacities DOES 1 through50, of inclusive, when the samehas beenascertained.Plaintiff is further informedand believesand basedthereonallegesthat eachof the defendants designated herein as a DOE is negligently, wantonly,recklessly,tortiously and unlawfully responsible somemannerfor the eventsand in

6 happenings herein referred to and diligently, wantonly, recklessly,tortiously and unlawfully 7 proximatelyand legally caused injuriesanddamages Plaintiff as hereinalleged. to 8 11. Plaintiff is informedand believes, and basedthereonalleges,that eachof the

9 defendants designated herein as a DOE is indebtedto Plaintiff as hereinafterallegedand that 10 Plaintiff's rights againstsuchfictitiously nameddefendants arisefrom suchindebtedness. 11 12. Plaintiff is informed and believe, and basedthereonalleges,that at all times

t2 mentioned, eachof the defendants thejoint venturer,agentand/oremployee eachof their was of 13 co-defendants in doingthethingshereinmentioned, and actedwithin their authorityassuchagents
l4 15 16 L7 13. RETENTION OF LEVIN Levin represented himself to Plaintiff as an expert in businessmanagement, and employees with the permission consent their co-defendants. and and of

18 accountingand investmentadvisory services. Based on this representation, or around in T9 September 2001 Plaintiff retainedDefendants renderbusiness to management, accounting and 20 investment advisoryservices pursuant an oral agreement "Agreement'o). (the to Pursuant the to 2l
'rt

Agreement,Defendants agreedto take all necessary appropriate and measures properly and to professionally managePlaintiff's business and financial affairs, and represented, amongother

23 things, that Defendants could and would competently properly: and 24 25 26
an

(a)

Maintain accurate booksof account,includingcashreceipts,cashdisbursements andgeneral ledgers andjournals;

(b)

Compile statements assets liabilities and relatedstatements receiptsand of and of quarterly a cashbasis; disbursements on

28

(c)

Timely and accurately prepareand file incometax returns;

K:\153l'76\PLE\COMPLAINT 101309.wpd

COMPLAINT

1 , 3 4
S

(d) (e)

Prepare and file payroll tax, salesand other local tax returns; Reviewinsurance coverage consultwith insurance and advisors lessthansemino annuallyto ensureadequate covefage;

(0

Provideinvestment adviceand analyze potentialinvestments, includingthe risks involved;

6 7 8 9 10 11 T2

(g)

Provide financial planningadviceand servicesand recommend overseeall and investments:

(h)

Provideoveralltax planning services connection in with all personal business and activities;

(i) O L4.

Provideestate planningconsultation; and Provideconsultation regarding pension retirement and plans. In exchangefor renderingbusinessmanagement, accountingand investment

t 3 advisoryservices, partiesagreed Defendants the that would receivefive percent %) of all gross (5

r4
15 t6 17

incomereceived Plaintiff, with an agreed by upon annualcap.

THE WRONGFUL CONDUCT 15. In or aroundSeptember 2008, Plaintiff retaineda new business management and

18 accountancy firm. Shortlythereafter wasdiscovered Defendants' engaged numerous it that had in t9 grosslynegligent andomissions otherwise acts and failedto competently professionally and render

20 services behalfof Plaintiff. Amongotherthings,Defendants on engaged the following grossly in 2l
t,

negligentconduct: (a) Failedto timely pay taxeson behalfof Plaintiff for several years,and concealed thesefacts from Plaintiff, resulting in Plaintiff owing back taxes, interestand penalties million of dollars; of (b) Concealing Plaintiff's truefinancialconditionprior to investments assets and being acquiredby Plaintiff; (c) Recommending and facilitating Plaintiff's investmentin exceedingly risky and speculative estate real transactions without disclosingthe risks;
K:\I 531-76\PLE\COMPLAINT 10t309.wod

23 24 25 26 27 ?.8

COMPLAINT

I ,
J

(d)

personalguarantees bank loanswithout Recommending Plaintiff execute that on risk; advising Plaintiff of the associated

(e) (0 (g)

holdings; Failingto diversifyPlaintiff'sinvestment insurance coverage real estate for and otherholdings; Failing to obtainadequate as Over-extending Plaintiff's linesof creditwith banksandfinancialinstitutions a to condition; resultof failing to disclose Plaintiffhis true financial

4
5

6 7 I I 10 11 t2 13 (k) 0) O (i) (h)

informedof materialinformation Failing to keepPlaintiff andhis representatives affairs; regarding and Plaintiff'sfinances business Cage'sfinancialconditionso that Levin Continuingto misrepresent conceal and couldmakemillionsof dollarsin fees; materialfactsregarding Actively concealing from Plaintiff andhis representatives affairs; Plaintiff s finances and business Plaintiff feesfor services rendered Defendants; by Grosslyovercharging Plaintiff's accounting, and other tax Failing to manage, controland administer competence skill, all of which and financial affairs with requisiteprofessional resultedin substantial financiallosses Plaintiff; and to

t4
15 t6 L7 18 t9

(m)

Failing to placePlaintiff's interests beforeDefendants' own economic interests, in madeon behalfof Plaintiff. managing,directingand/orcontrollingtransactions

16.

Defendants' that and actionsdemonstrate they lackedcompetence expertise the in

20 area of businessmanagement, accountingand investmentadvisory services,and that their 2l
,)

represeffationof Plaintiff was grossly negligent. Defendants'actions also evidencetheir purposefuldisregardfor Plaintiff's business financialwell being. and

23 24
,<

FIRST CAUSE OF ACTION PROFESSIONAL NEGLIGENCE (AgainstAll Defendants DOES 1 through50) and l7. Plaintiffrepeats,realleges incorporates reference and by Paragraphs through16, I

26 27

28 inclusive,as thoughfully set forth herein.
K:\l 53 1-7(r\PLE\COMPLAINT l0l309.wpd

COMPLAINT

1
,.

18.

business managers, Defendants agreed anddid, actasPlaintiff's to, accountants and

2001to September investment 2008,andcontinued render to advisors duringtheperiodSeptember

throughJuly, 2009. 3 services

4

19.

advisors, accountants investment and Defendants As Plaintiff'sbusiness managers,

as owedPlaintiffdutiesof professional careto usesuchskill, careanddiligence otherbusiness possess exercise behalfof high net and on accountants investment advisors commonly 6 managers, in 7 worth individualsundersimilar circumstances similar communities.

8

20.

Despitethe dutiesof professional careowedto Plaintiff, Plaintiff is informedand

and 9 believesand basedthereonallegesthat Defendants, eachof them, failed to usesuchdegree and 1,0 of professionalcare, competence skill commonlypossessed exercisedby business and

1 1 managers, accountantsand investment advisors under similar circumstancesin similar
rendered services which the negligently,carelessly recklessly and for t2 communities.Defendants and by, 13 they wereretained amongotherthings: recommending facilitatingPlaintiff's investment concealingPlaintiff's true financial L4 in risky and highly speculativereal estateinvestments;

15 condition; failing to advisePlaintiff of the risks of investingin real estate;failing to diversify
portfolio; failing to timely pay all taxeson behalf of Plaintiff; failing to L6 Plaintiff's investment with the real estate insurance behalfof Plaintiff andin connection on L 7 obtainproperand adequate guarantees Plaintiff of theexistence personal of madeby Defendants; failing to advise 18 investments and facilitated Plaintiff entering into; misrepresenting t9 which Defendantsrecommended and the 20 concealing financialstatusof Plaintiff; andfailing to professionally competently and evaluate

2l
t,

and manage Plaintiff's investments. 21. [n thatDefendants weresolelyandexclusively possession Plaintiff's financial in of

discovered facts 23 booksandrecords,Plaintiffdid not discover,andcouldnot havereasonably the mismanagement grossnegligence and until 2009, afterPlaintiff retained 24 underlyingDefendants' management firm. 25 a new business

26

22.

gross As a directandproximate negligence, resultof theaforesaid mismanagement,

negligence, 27 andprofessional Plaintiff hasbeendamaged an amountthat hasnot yet beenfully in

28 ascertainedbutwhichisbelievedtobeinexcessofTwentyMillionDollars($20,000,000). When
l l0l309.wpd K:\153-76\PLE\CoMPLAINT

COMPLAINT

I
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Plaintiff hasascertained full amountof the damases the suffered. will seekleaveof the Court he to amendthis Complaintaccordingly.

3 4 SECOND CAUSE OF ACTION BREACH OF FIDUCIARY DUTY 6 7 23. (AgainstAll Defendants DOES 1 through50) and Plaintiffrepeats, and by Paragraphs realleges incorporates reference lthrough16,

8 and 18 through21, inclusive, thoughfully setforth herein. as 9 24. At all relevanttimesherein,by virtue of theprofessional relationships existed that

10 betweenPlaintiff and Defendants, wherein Defendants actedas Plaintiff's business managers, 1 1 accountants and investmentadvisorsfrom 2001 until 2008, where Plaintiff placed trust and L2 confidence the fidelity and integrity of Defendants entrusted in and Defendants with Plaintiff's 13 financialwell being,andwhereDefendants assumed controloverPlaintiff'sbusiness financial and 14 affairs andproperty, a fiduciaryduty existedat all timeshereinmentioned between Plaintiff and 1 5 Defendants. 16 25. This fiduciary duty required Defendants treat Plaintiff with completefairness to

r7

andthe highestduty of loyalty, andto disclose Plaintiff all materialfactsconcerning to Plaintiff's

I.8 business financialaffairs, the services and rendered Defendants connection by in therewith,and L9 the feescharged Defendants suchservices.This fiduciaryduty furtherrequiredDefendants by for 20 to truthfuUyandcompletely disclose relevantinformationto Plaintiff andnot misrepresent all or 21. concealanyfactsin connection with anyof the aforementioned services Defendants that provided
,,

to Plaintiff. Furthermore,Defendants eachowed Plaintiffs a duty to refrain from conducting

23 themselyes anymannerthatwas in conflict with thebestinterests the Plaintiff. Defendants, in of

u
t<

andeachof them,furtherowedPlaintiff a fiduciaryduty of duediligence thatrequiredDefendants to veriff the legitimacy and soundness the business, of accounting,tax and/or financial and

26 investment advicewhich they offeredto Plaintiff.
)n

26.

In violationof therelationship trust, confidence loyaltybetween of and Plaintiff and

28 Defendants,Defendants breached their fiduciary duties to Plaintiff by, among other things,
K :\153l -76\PLE\COMPLAINT l0l 309.wpd

COMPLAINT

I ) 3 4

misrepresenting facts in connection with Plaintiff's financesand businessaffairs, concealing materialfactsconcerning true financialconditionof Plaintiff, and failing to disclosethe tax the liabilitiesandtrue financialconclition Plaintiffwhenhe acquired to assets investments, and and continuingto misrepresent and concealCage's financial conditionso that Levin could make millionsof dollarsin fees.

6

27.

As a directandproximate resultof theaforesaid gross negligence, mismanagemenr,

7 andbreachof fiduciaryduty, Plaintiff hasbeendamaged an amount in that hasnot yet beenfully 8 9 ascertained whichis believed bein excess TwentyMillion Dollars($20,000,000). but to of when Plaintiff hasascertained full amountof the damages the suffered,he will seekleaveof the Court

10 to amendthis Complaintaccordingly. 11 t2 28' In doingthethingshereinalleged, Defendants acted with malice,oppression and/or

fraudpursuant california code of civil Procedure to section3294(c),and acted willfully andwith

13 theintentto cause injury to Plaintiff. As such,Defendants, each them,aretherefore and of guilty t4 of malice, oppression and/or fraud and Plaintiff is entitled to recoveran award of exemplarv

L5 and/orpunitive damages. t6 t7 18 THIRD CAUSE OF ACTION CONSTRUCTIVE FRAUD (AgainstAll Defendants DOES 1 through50) and 29. Plaintiffrepeats, realleges incorporates reference and by Paragraphs through16, 1

t9 20

2L 18 through21, and24 through26, inclusive,as thoughfully set forth herein.
,t

30'

By virtue of the breachesof the fiduciary duries and obligations owed by

23 Defendants Plaintiffs as allegedhereinabove, to Defendants haveengaged constructive in fraud 24 pursuantto California Civil CodeSectionL573and other applicable California law. 25
31. Plaintiff is informed and believes and on that basis alleges that Defendants

26 concealed'amongother acts and information, the following wrongful acts and information: 27 misrepresenting facts in connectionwith Plaintiff's financesand business affairs, concealing 28 materialfactsconcerning true financialconditionof Plaintiff, and failing to discloserhetax the
K:\ I 53 l-76\PLE\COMPLAINT l0l309.wod

COMPLAINT

I
1

liabilities and true financial conditionto Plaintiff when he acquiredassets investments and and continuingto misrepresent and concealCage's financial condition so that Levin could make

3 millions of dollarsin fees;their lack of expertise the areaof business in management, accounting 4
5

andinvestment advisoryservices; mismanagement Plaintiff'sfinances investments; risks of and the involved in the investments recommended facilitatedby Defendants, and incluclingthe risks associated Cage'spersonal with guaranty loans;over-extension Plaintiff'slinesof credit; of of failure to obtainadequate insurance coverage; the failureto timely pay all taxeswhendue,as and set forth in detail above. 32. Defendants concealed truth behindthese the matters with the intentto deceive and

6 7 8 I

10 defraudPlaintiff, and to preventPlaintiff from learningthe true facts. t1 t2 33' Plaintiff is further informed and believesand thereonallegesthat Defendants

concealed truth abouttheir lack of cornpetence, and oversightof Plaintiff's investments the skill

13 and assets,in order to concealyears of mismanagement, fraud, negligence, waste and

t4 malfeasance, to preventPlaintiff from learningthe true facts. On informationand belief, and
15 Defendants conspired conceal truth aboutPlaintiff's finances an effort to continue sain to the in to t 6 financialbenefitsby way of their ongoingwork. t7
34. As a directandproximate resultof theaforesaid gross negligence, mismanagement,

1 8 and constructivefraud, Plaintiff has beendamagedin an amountthat has not yet been fully 1 9 ascertainedbutwhichisbelievedtobeinexcessofrwentyMillionDollars($20,000,000). when 20 Plaintiff hasascertained full amountof the damages the suffered,he will seekleaveof the Court 2l
1t

to amendthis Complaintaccordingly. 35. In doingthethingshereinalleged, Defendants actedwith malice,oppression and/or

23 fraudpursuant CaliforniaCodeof Civil Procedure to Section3294(c), acted and willfully andwith 24 the intentto cause injury to Plaintiff. As such,Defendants, eachof them,aretherefore and guilty 25 of malice, oppression and/or fraud and Plaintiff is entitledro recoveran award of exemplary 26 and/ punitivedamages. or 27 28
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COMPLAINT

1 , 3 4
5

FOURTH CAUSE OF ACTION CONCEALMENT (AgainstAll Defendants DOES 1 through50) and 36. Plaintiffrepeats, realleges incorporates reference and by Paragraphsthrough16, 1

18 through2t , 24 through 26, and30 through33, inclusive,as thoughfully set forth herein. 37, Plaintiff is informedandbelieves thereon alleges Defendants and that intentionally

6

7 concealed from Plaintiff the highly risky and speculative natureof the real estateinvestments 8 9 which Defendants madeon behalfof Plaintiff, andfurther concealed that, with respect several to of the real estateinvestments,Plaintiff had personally guaranteed loans supportingthe the

10 investments. In addition, as statedabove, Defendants concealed material facts concerning 1l Plaintiff's true financialconditionincludingPlaintiff's tax liabilitieswhenhe acquired assets and

t2 investments that Levin couldmakemillions of dollarsin fees. Had Plaintiff beeninformedof so 13 the risk inherentin severalof the real.estateinvestments made by Defendants behalf of on
L4 Plaintiff, or thatPlaintiff waspersonally guaranteeing payment theloansin connection the of with 15 thosereal estateinvestments, of Plaintiffstrue financialconditionwhenthe investments or were t 6 made, Plaintiff would not have agreedto or approvedthe investments made by Defendants. l7
Defendants further intentionallyconcealed from Plaintiff the true financialconclition Plaintiff to

18 prior to Plaintiff acquiring investments assets. Had Plaintiff been informed of his true and t 9 financial condition, he would have not have acquired significant assetsand investments. 20
38. Throughouttheir many yearsof representing Plaintiff, Defendants intentionally

2L failedto keepPlaintiff andhis representatives informedof Plaintiff's financialandbusiness matters
tt

and intentionallyconcealed suchinformationin order to preventPlaintiff from discovering their

23 grossnegligence mismanagement Plaintiff's financialaffairs. and of 24
39. Because Defendants' of intentionalconcealment suchmatters,Plaintiff did not of

25 know of Defendants' of intentionalconcealment acts until in or after September 2008, or havea 26 reasonable opportunity discover to such acts concealment nature Defendants' of by of controlover 27 Plaintiff's financialrecordsand information,and concealment samefrom Plaintiff. of 28
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ll
COMPLAINT

I )

44.

Plaintiff trustedDefendants throughthemanyyearsof Defendants' representation

asPlaintiff's business managers, and advisors.Based thatrelationship on accountants investment

deception.Namely, Plaintiff 3 of trust and confidence, Plaintiff reasonably relied on Defendants' managers, accountants and 4 permittedDefendants continueto serve as Plaintiff's business to
5

2008. HadPlaintiff known 2001to September investment advisors September from approximately

from him, which Defendants concealed and 6 of Defendants' of concealment wrongfulconduct, acts 7 Plaintiff would not have continuedto retain Defendantsas Plaintiff's businessmanagers, immediately. Defendants and advisors,but would haveterminated 8 accountants investment I 41. gross mismanagement, negligence, result theaforesaid of As a directandproximate

in Plaintiff hasbeendamaged an amountthat hasnot yet beenfully ascertained 10 andconcealment, l1 t2 WhenPlaintiff to of but which is believed be in excess TwentyMillion Dollars($20,000,000). suffered,he will seekleaveof the Court to amend hasascertained full amountof thedamages the

L3 this Complaintaccordingly. L4 42. with malice,oppression and/or Defendants acted In doingthethingshereinalleged,

and willfully andwith Section 3294(c';, acted to 15 fraudpursuant CaliforniaCodeof Civil Procedure guilty and injury to Plaintiff. As such,Defendants, eachof them,aretherefore 1.6 the intentto cause andior fraud and Plaintiff is entitledto recoveran award of exemplary 17 of malice, oppression 18 and/or punitive damages.

r9
20 2l 22 23
43. FIFTH CAUSE OF ACTION NEGLIGENT MISREPRESENTATION (AgainstAil Defendants DOES 1 through50) and 1 Paragraphsthrough16, and by Plaintiffrepeats, realleges incorporates reference

24 18 through 21, 24 through 26, 3A through33, and 37 through40, inclusive,as thoughfully set 25 forth herein. 26
44. described above(including madethe falserepresentations At the time Defendants

agreement professionally to competence skill, Defendants' and to 27 thosewith respect Defendants' and and Plaintiff'sfinances investments timelypay taxeson behalfof Cagewhendue), 28 manage
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L2

COMPI.{iNT

I
7

Defendants no reasonable had basisfor believingthemto be true, and intended Plaintiff rely that on their misrepresentations. 45. Plaintiff trustedDefendants throughthe manyyearsof Defendants' representation

3

4 asPlaintiff's business managers, accountants investment and advisors.Based that relationship on
5

of trust and confidence, Plaintiffjustifiablyrelied on Defendants'misrepresentations, as a and

6 result, among other things, Plaintiff entrustedDefendantsto control, manage,monitor and 7 safeguardPlaintiff's financesand assets,and financially compensated Defendants for their 8 9 10 services,all to the financialdetrimentof Plaintiff. 46. 47. Had Plaintiff known the truth, Plaintiff would not haveso acted. As a directandproximate gross resultof theaforesaid negligence, mismanagement,

1 1 and negligentmisrepresentation, Plaintiff hasbeendamaged an amountthat hasnot yet been in

t2 fully ascertained which is believed be in excess TwentyMillion Dollars($20,000,000). but to of 13 WhenPlaintiff hasascertained full amountof the damages the suffered,he will seekleaveof the
l4 15 16 L7 18 SIXTH CAUSE OF ACTION BREACH OF CONTRACT (AgainstAll Defendants DOES 1 through50) and 48. Plaintiffrepeats, Paragraphs through16, realleges incorporates reference and by I Court to amendthis Complaintaccordingly.

t9

2A 18 through21,24 through26,30 through33, and37 through40, inclusive, thoughfully set as 2L forth herein. ).r.
49. to their dutiesandobligations Plaintiff pursuant to Defendants materiallybreached

factsin allegedabove: misrepresenting 23 the Agreement,in one or moreof the following respects materialfactsconcerning the affairs;concealing and with Plaintiff's finances business 24 connection

25 true financial condition of Plaintiff and failing to disclosethe tax liabilities and true financial
and to and and assets investments continuing misrepresent 26 conditionto Plaintiff whenhe acquired

27 concealCage'sfinancialconditionso that Levin couldmakemillions of dollarsin fees;failing to
Plaintiff's and recommending facilitating in 28 advisePlaintiff of the risk of investing real estate;
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COMPLAINT

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investment risky andhighly speculative estate in real investments; failing to diversify Plaintiff's portfolio; failing to timely paytaxeson behalfof Plaintiff; failing to obtainproperand investment

with the real estate investments 3 adequate insurance behalfof Plaintiff andin connection on made guarantees 4 by Defendants; and failing to advise Plaintiff of theexistence thefactof personal which
5

into; misrepresenting financial Defendants recommended facilitated Plaintiff entering the status and

6 of Plaintiff; and failing to professionallyand competentlyvaluate and managePlaintiff's 7 investments. 8
50. of diligence have Plaintiffdid notdiscover, couldnotin theexercise reasonable and

9 discovered, factsunderlying the Defendants' of until in andduringSeptember breaches contract 10 2008,andthereafter. 11
51. Plaintiff has performedall duties and obligations his part requiredto be on

12 performedunderthe Agreement with Defendants, except the extentthat suchperformance to was 13 waived, excused prevented reasonof the actsand omissions Defendants. or by of 14
52. As a direct and proximateresult of the aforesaidmaterial breachof contract,

15 Plaintiff has beendamaged an amountthat has not yet been fully ascertained which is in but t6 believed be in excess TwentyMillion Dollars($20,000,000).WhenPlaintiff hasascertained to of t7 the full amountof the damages this suffered,he will seekleaveof the Court to amend Complaint 18 accordingly. t9 20 2l 22 23
53. SEVENTH CAUSE OF ACTION ACCOI.INTING (AgainstAll Defendants DOES 1 through50) and Plaintiffrepeats, realleges incorporates reference Paragraphs through16, and by 1

24 18 through21,24 through26,30 through33,37 through40, 44 through46, and49 through51, 25 inclusive,as thoughfully set forth herein. 26
54. As allegedhereinabove, Defendants, eachof them,as Plaintiff's accountants, and

27 business managers and investment advisors,had and continueto have a fiduciary duty to and 28 relationshipwith Plaintiff, requiringDefendants act only in the bestinterestof Plaintiff, and to
K:\1531-76\PLE\COMPLAINT l0l 309.wnd

L4

COMPLAINT

L to not engage anyactsor omissions in which wouldcause Plaintiff to sufferanyharmor damages.
J

55.

As further allegedabove, during the period of time that Defendants rendered

3 accountingand businessmanagement servicesto Plaintiffs, Defendants solely controlledand 4 maintained Plaintiff's financialbooksand records. Plaintiffs are unawareof the full amounts
5

paid themselves otherwise Defendants or misappropriated from Plaintiffs' accounts. 56. accounting all amounts to Accordingly, Plaintiff is entitledto a full andcomplete

6

paid to themselves, 7 Defendants secreted, misappropriated from Plaintiffs' accounts, misplaced, I the or otherwise usedor paid withoutPlaintiff's informedconsent.Wherefore, fulI amountowed

pursuant a full andaccurate to 9 andbecomingdue to Plaintiff canonly be determined accounting 10 of all booksand recordsof Defendants. 11

t2
l3 t4

PRAYER WHEREFORE,Plaintiffpraysfor judgmentagainst Defendants, eachof them,as and follows:

15 A$ TO THE TIRST CAUSE OF ACTIOI\T 16 t. For general special in and damages anamountnot lessthanTwentyMillion Dollars

17 ($20,000,000), accordance proof at trial, together in with with interest thereon the legalrate; at 18 AS TO THE SECOND CAUSE OF ACTION: t9 2. For general special damages anamountnot lessthanTwentyMillion Dollars in and

20 ($20,000,000), accordance in with proof at trial, togetherwith interestthereonat the legalrate; 2L )) 3. pursuant California For punitiveor exemplary damages to Codeof Civil Procedure

Section3294(c);

23 AS TO THE THIRD CAUSE OF ACTIOII 24
,.4

4.

For general special and darnages an amountnot lessthanTwentyMillion Dollars in

($20,000,000), accordance proof at trial, together in with with interest thereon the legalrate; at 5. pursuant California For punitiveor exemplary damages to Codeof Civil Procedure

26

27 Section3294(c); 28
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15

COMPLAINT

1 AS TO THE FOII-RTH CAUSE Qr ACTIOI\I
n

6.

damages anamount lessthanTwentyMillion Dollars in not For generalandspecial

in with 3 ($20,000,000), accordance proof at trial, togetherwith interestthereonat the legal rate;

4
3

7.

pursuant CaliforniaCodeof Civil Procedure to damages For punitiveor exemplary

Section3294(c);

6 AS TO THE FIFTH CAUSE OF ACTION 7 I I 10 1l
8. not in For generalandspecial damages anamount lessthanTwentyMillion Dollars

($20,000,000), accordance with proof at trial, together with interestthereonat the legal rate; in AS TO THE SIXTH CAUSE OF ACTION L For general special damages anamount lessthanTwentyMillion Dollars in not and

($20,000,000), accordance proof at trial, together in with interest thereon the legalrate; at with

t2 AS TO THE SEVEI.flTHCAUSE OF ACTIOI{ l3
10. provide to Plaintiff an accounting all For an order that eachof the Defendants of

paid to themselves, Defendants misappropriated, secreted, misplaced otherwise or used 14 amounts

1.5 or paid without Plaintiff's informedconsent; L6 AS TO ALL CAUSES OF ACTION: l7 18 19 2A 2l ,r. 23 24 25 26 27 28
K:\153l -76\PLE\COMPLAINT l0l 309.wpd

11. 12. 13. 14.

For all costs suit; of interestat the maximumlegal rate; For pre-judgment For post-judgment interestat the maximumlegal rate; just and proper. For suchother and further relief as deemed

'/ DATE: oetober 12,

z0og

LAVELY & SINGER CORPORATION PROFESSIONAL MARTIN D, SINGER BRIAN G. WOLF

Attorneysfor Pla

t6

COMPLAINT

I ) 3 4
3

REOUEST FORJI]RY TRIAL
Plaintiff herebydemands trial by jury. a

DATE: October ,2009 l') r-

,r/ tt-

6 7 8 9 L0 11 12 13 t4 15 16 t7 18 t9 20 2l
.r^,

LAVELY & SINGER PROFESSIONAL CORPORA
MARTIN D. SINGER

BRIANG. TODDS

Attornevsfor Plaintiff

?3 ?"4 25 26

n
28
l0l309.wDd K:\l 53I -76\PLE\COMPLAINT

L7

COMPLAINT

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