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10 i 12 13 14 15 16 17 18 19 20 21 2B 4 25 26 2 28 ener Kathleen A. Hunt ‘SBN 230678 Unique Law FILE D 6002 Barrett Avenue 4 El Cerrito, CA 94530 ALAMEDA COUNTY Telephone: 510-289-2288 NOV 2 0 2018 Email: kathleenhunt@uniquelaw.com Attomey for Plaintiff PETER S. BEAGLE CLERK OF THE SUPERIOR COURT 8; Tt O. { —— Depa SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF ALAMEDA. UNLIMITED JURISDICTION PETER S, BEAGLE CASE NO.: RG15794528 Plaintiff, CLOSING BRIEF v. CONNOR FREFF COCHRAN, an individual Defendant. INTRODUCTION This case presents multiple instances of elder abuse, breach of fiduciary duty, and fraud, as well as slander and conversion, by Connor Freff Cochran (“Cochran”) as an individual. Although the causes of| action here have been bifurcated from causes of action alleged against Avicenna Development Corporation (“Avicenna”) o Conlan Press, Ine. (“Conlan”), a portion of the evidence which serves as proof of these individual causes of action can be found in corporate records. This does not necessarily implicate any corporation in wrongdoing, no causes of action are alleged against any corporation here, and no corporate liability is at issue; rather, the focus is necessarily upon the specific acts performed by Cochran himself, in a variety of capacities. After all, “the legal fiction of the corporation as an independent entity was never intended to insulate officers from personal liability for their own tortious conduct.” Frances T. v. Village Green Owners Assn. (1986) 42 Cal.34 490, 507-508. Beagle v. Connor Freff Cochran, etal we aa 10 ui 12 13 14 15 16 7 18 19 20 21 22 23 24 25 26 7 28 CAUSES OF ACTION L Elder Abuse (Constructive Fraud). Elder abuse is clearly defined under the law. It includes, but is not limited to, “[p]hysical abuse or other treatment with resulting physical harm or pain or mental suffering . . . for] . . . (f]inancial abuse.” Welf. & Inst. Code, § 15610.07(a). Financial abuse occurs when a person “[tJakes, secretes, appropriates, obtains, or retains real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud.” Welf. & Inst. Code, § 15610:30(a)(1). In other words, elder abuse occurs “when an elder or dependent adult is deprived of any property right, including by means of an agreement” (Welf. & Inst. Code, § 15610.30(c)), and the abuser “knew or should have known that this conduct is likely to be harmful to the elder or dependent adult” (Welf. & Inst. Code, § 15610.30(b)).. Beagle was born in 1939. Trial Transcript vol. 2, p. 268, line 6. He became an “elder”, as defined by law, in April 2004. (‘"Elder’ means any person residing in this state, 65 years of age or older.” Welf, & Inst. Code, § 15610.27.) Nearly four years later, Cochran deliberately deprived Beagle of his intellectual property by means of the simultaneous execution of the Articles of Incorporation for Avicenna Development Corporation (Plaintiff's Exhibit 1009), which provided that Beagle and Cochran would be jointly in charge ‘of a new corporation together; the Bylaws of Avicenna Development Corporation (Plaintiff's Exhibit 1010), which provided (unbeknownst to Beagle) that Cochran would actually have total control of the new corporation, and that all of Beagle’s future intellectual property would belong to Avicenna in perpetuity; and the subsequent transfer of Beagle’s intellectual property into said corporation, Cochran’s specific intent to defraud Beagle was also clearly indicated by his sales pitch to a third party in 2006, a full two years before Avicenna was formed. Defense Exhibit 5235; see also Trial Transcript vol. 1, pp. 27-28. In that proposal, Cochran presented Avicenna as “a Connor Cochran Venture” which controlled all of Beagle’s property (or which would soon acquire it “at costs which are extremely low ‘compared to likely return.”) /d. If Avicenna owned any other intellectual property, that was not deemed worthy of mention in this proposal; instead, Cochran stated simply that “the potential value of Peter's collected body of intellectual property exceeds $15 billion,” and offered to sell “a 40% ownership stake to Beagle v. Connor Freff Cochran, tal wee wan 10 iu 12 13 14 15 16 17 18 19 20 21 22 23 4 25 26 27 28 outside investors in return for $30 million.” Jd. Nonetheless, Cochran paid Beagle “nothing whatsoever” in order to acquire a $0% interest in Beagle’s intellectual property through the formation of Avicenna. Id. at vol. 4, pp. 585, line 1. Mr. Morang, an expert in fraud investigation and detection, relied on all of the evidence presented and upon his own years of experience to conclude that “Cochran had the intention of misusing the trust of| Mr. Beagle to take away his intellectual property for his own personal gain.” Trial Transcript vol. 1, p. 30, lines 11-15. Having accomplished that, and as further proof that Cochran had intentionally deceived Beagle to induce him to form Avicenna in the first place, Cochran then intentionally deprived Beagle of the royalties and other income which was generated by Beagle’s intellectual property. Cochran testified that all of ‘Avicenna’s income was derived from Beagle’s intellectual property. Trial Transcript vol 4, p. 588, lines 18- 20. Nonetheless, Cochran had never intended that Beagle would receive the benefit ofall - or even half - of Avicenna’s income, and this was reflected in what actually occurred. For example, ITV paid Avicenna hundreds of thousands of dollars in settlement of royalties which had been owed to Beagle personally. Plaintiff's Exhibit 101: laintiff's Exhibit 1002, see e.g. deposits made on April 28, 2011, December 23, 2011, February 1, 2012, May 8, 2012, and October 31, 2012, to name just a few. In his testimony before this Court, Cochran was able to identify only one specific payment that was used for Beagle’s benefit, in the amount of $45,000, out of $277,000 that was received from ITV alone. Trial Transcript vol. 5, p. 760-761. In one instance, the entire payment from ITV was transferred immediately to Conlan Press, without any payment made to Beagle at all. Plaintiff's Exhibit 1002, bank statement dated November 1-30, 2016. ‘The activities revealed by the bank statements of Avicenna and Conlan Press, as well as the ‘Agreement between the corporations, may seem at first glance to be corporate issues, rather than individual ones, but “courts do not exalt form over substance.” Lehman v. Superior Court (2006) 145 Cal.App.4th 109, 123. More specifically, “directors individually owe a duty of care, independent of the corporate entity's own duty, to refrain from acting in a manner that creates an unreasonable risk of personal injury to third partes. ‘The reason for this rule is that otherwise, a director could inflict injuries upon others and then escape liability behind the shield of his or her representative character, even though the corporation might be insolvent or Beagle v. Connor Freff Cochran, etal