King v. Blouin

22STCV32837
Electronically FILED by Superior Court of California, County of Los Angeles on 10/06/2022 02:53 PM Sherri R. Carter, Executive Officer/Clerk of Court, by G. Robinson,Deputy Clerk
Assigned for all purposes to: Stanley Mosk Courthouse, Judicial Officer: David Sotelo
1 Stephen Y. Ma, State Bar Number 214998

sma@earlysullivan.com
2 Peter Scott, State Bar Number 247786
pscott@earlysullivan.com
3 EARLY SULLIVAN WRIGHT
GIZER & McRAE LLP
4 6420 Wilshire Boulevard, 17th Floor
Los Angeles, California 90048
5 Telephone: (323) 301-4660
Facsimile: (323) 301-4676
6
Attorneys for Plaintiff
7 SHAWN KING
8 SUPERIOR COURT OF THE STATE OF CALIFORNIA
9 FOR THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT
10
11 SHAWN KING, in her individual capacity Case No.

as well as a married woman seeking to
12 protect and recover community property,
COMPLAINT FOR DAMAGES AND
13 Plaintiff, INJUNCTIVE RELIEF
14 vs.
[DEMAND FOR JURY TRIAL]
15 BLOUIN & COMPANY, INC., a
Massachusetts Corporation; ROBERT
16 CINELLI, an individual; DAVID BLOUIN,
an individual; BECKY RADANT, an
17 individual; CHRISTY WISE, an individual;
DEVONSHIRE DELAWARE, a California
18 Corporation; GREG CHRISTENSEN, an
individual; LIZANNE ENGEMANN, an
19 individual; SHANNON ENGEMANN
GROSSMAN, an individual; SYDNEY
20 GAIL STAYDEN, an individual;; and Does
1 through 50, inclusive,
21
Defendants.
22
23
24
25
26
27
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INTRODUCTION
2 I. Plaintiff Shawn King is forced to bring this lawsuit against her former business and
3 family office managers who conspired, among other things, to funnel millions of dollars of
4 Plaintiff Shawn King's money and assets to numerous individuals who took advantage of
5 Shawn's deceased husband, famed broadcaster, Larry King. Mrs. King was shocked to discover
6 recently that this illegal and outrageous misconduct by Blouin & Co., Inc. ("BCI"), David Blouin
7 ("Blouin"), and Robert Cinelli ("Cinelli"), including, among other things, managing secret bank
8 accounts and facilitating millions of dollars of transfers by Mr. King, which were kept hidden
9 from Mrs. King, in order to hide Mr. King's improper transfers of funds, because BCI, Blouin and
10 Cinelli (collectively, the "Blouin Defendants") knew full well that Mrs. King did not consent, and
11 never would have consented, to any such transfers.
12 2. Despite their fiduciary duties towards Mrs. King, the Blouin Defendants led a
13 fraudulent and malicious conspiracy to steal money from their own client, Mrs. King, and deprive
14 Mrs. King from her rights and interests in the estate of her late husband. As part of this
15 conspiracy, the Blouin Defendants actively assisted an effort by an individual named Larry King
16 Jr., who filed a lawsuit in Los Angeles Superior Court seeking to replace Mrs. King as the
17 executor of her husband's estate and to divest Mrs. King of her share in the estate. The Blouin
18 Defendants wrongfully assisted Larry King Jr. in connection with this meritless lawsuit, by,
19 among other things, sharing Mrs. King's confidential financial information without Mrs. King's
20 knowledge or approval and preventing Mrs. King from having access to her own records in the
21 course of her opposition to Larry King Jr.'s lawsuit.
22 3. As part of this fraudulent and malicious conspiracy against Mrs. King, the Blouin
23 Defendant also worked with several other individuals to steal money from Mrs. King and to assist
24 Larry King Jr. in his unsuccessful lawsuit to challenge Mr. King's estate. These other co-
25 conspirators included Greg Christensen, a longtime unemployed former producer of one of Mr.
26 King's television shows, and Becky Radant, a former assistant of Mr. King and Mrs. King, who
27 intentionally and fraudulently helped the Blouin Defendants keep financial and other information
EARLY 28 away from Mrs. King and improperly refused to return confidential information and other assets
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1 to Mrs. King despite numerous requests.
2 4. The full extent of this fraudulent activity by the Blouin Defendants and the other
3 Defendants are still subject to ongoing investigation and the Defendants have refused to provide
4 Mrs. King a full production of their files to Mrs. King despite their legal obligations to produce
5 these client files upon request.
6 5. Additionally, as discussed below, the Blouin Defendants were responsible for
7 managing and completing the payment of Mr. King's and Mrs. King's regular, recurring
8 household bills, annual taxes, and other taxes. The Blouin Defendants deliberately and/or
9 negligently failed to carry out this basic function. The Blouin Defendants' conduct has resulted in
10 interruptions of services, significant late fees and penalties and has caused Mrs. King undue
11 distress, anxiety, and embarrassment. Also, despite the Blouin Defendants' fiduciary duties owed
12 to Mrs. King as part of their engagement as business and officer managers, the Blouin Defendants
13 have mismanaged and failed to administer properly numerous accounts for Mr. King and Mrs.
14 King, including but not limited to accounts involving Boston Private Bank, Charles Schwab, First
15 Republic Bank, and Morgan Stanley.
16 6. Another example of the Blouin Defendants' misconduct and breaches of fiduciary
17 is their improper monthly charges without Mrs. King's knowledge or consent. As discussed
18 below, the Blouin Defendants improperly charged Mrs. King over $10,000 each month for their
19 services without even bothering to secure Mrs. King's approval for such monthly charges.
20 7. The Blouin Defendants' promotional materials specifically target affluent clients
21 such as Plaintiff, telling prospective clients about their services "specializing in providing
22 accounting, tax and consulting services to high-net worth individuals and their families" and that
23 they "relieve [their] clients from much of the burden of day-to-day personal recording keeping."
24 However, after gaining their clients' trust and access to confidential information, the Blouin
25 Defendants abused it by facilitating the theft of millions of dollars of funds and assets from one of
26 their clients and hiding the theft through secretive and incomplete financial accounting.
27
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8. Plaintiff Shawn King and her husband of 22 years, Larry King, were joint clients
2 of the Blouin Defendants. Mrs. King, who learned of the financial malfeasance of the Blouin
3 Defendants through just recently disclosed documents from a former employee, now seeks redress
4 from the Blouin Defendants through this Action, as well as against the numerous individuals who
5 received illicit transfers through this financial fraud which has resulted in millions of dollars of
6 funds and other assets stolen from Mrs. King. As Mrs. King continues her investigation of
7 ongoing misconduct of the Blouin Defendants and the other Defendants, Mrs. King will likely
8 discover millions of dollars' worth of additional funds and assets stolen from Mrs. King. As such,
9 Mrs. King brings this Action to seek, among other things, full compensatory damages for the
10 millions of dollars of stolen funds and assets, injunctive relief requiring, among other things, the
11 Defendants to return all of Mrs. King's financial and personal records and files, and punitive
12 damages for the intentional and malicious fraudulent actions of the Defendants in an amount
13 exceeding $100 million.
14 PARTIES
15 9. Plaintiff is, and at all relevant times hereto was, a resident of the County of Los
16 Angeles, State of California.
17 10. Defendant BCI is a Massachusetts Corporation with its principal place of business
18 at 2020 Commonwealth Avenue, Newton, Massachusetts 02466.
19 11. Defendant Blouin is, and at all relevant times hereto was, a resident of the County
20 of Middlesex, State of Massachusetts.
21 12. Defendant Cinelli is, and at all relevant times hereto was, a resident of the County
22 of Middlesex, State of Massachusetts.
23 13. Defendant Becky Radant is, and at all relevant times hereto was, a resident of the
24 County of Los Angeles, State of California.
25 14. Defendant Christy Wise is, and at all relevant times hereto was, a resident of the
26 County of San Diego, State of California.
27 15. Defendant Devonshire Delaware is, and at all relevant times hereto was, a resident
EARLY 28 of the County of Los Angeles, State of California.

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16. Defendant Greg Christensen is, and at all relevant times hereto was, a resident of
2 the County of Los Angeles, State of California.
3 17. Defendant Lizanne Engemann is, and all relevant times hereto was, a resident of
4 the State of California and, upon information and belief, received a substantial number of
5 improper and unauthorized transfers of Mrs. King's community assets at issue in this lawsuit
6 while physically present in Los Angeles County, California.
7 18. Defendant Shannon Engemann Grossman is, and at all relevant times hereto was, a
8 resident of the State of Idaho and, upon information and belief, received a substantial number of
9 improper and unauthorized transfers of Mrs. King's community assets at issue in this lawsuit
10 while physically present in Los Angeles County, California.
11 19. Defendant Sydney Gail Stayden is, and at all relevant times hereto was, a resident
12 of the County of Los Angeles, State of California. 1
13 20. Plaintiff is ignorant of the true names and capacities of defendants named herein as
14 Does 1 through 50, inclusive. Plaintiff is informed and believes, and thereon alleges that Does 1
15 through 50 are liable, in whole or in part, for the claims asserted in this Complaint against
16 Defendants. When Plaintiff learns the true identities and capacities of Does 1 through 50,
17 Plaintiff will seek leave of the Court to amend this Complaint to allege the true names and
18 capacities of Does 1 through 50.
19 21. Plaintiff is informed and believes, and thereon alleges, that at all relevant times,
20 each defendant was the principal, agent, or employee of each other defendant, and acted within
21 the scope of that relationship.
22 JURISDICTION AND VENUE
23 22. This Court has jurisdiction over this dispute and over all causes of action asserted
24 herein pursuant to the California Constitution, Article VI, § 10. Plaintiff is a California resident.
25 All Defendants are either residents of California or conducted substantial operations in this
26
27
1
EARLY 28 The Defendants identified in Paragraphs 13 through 19 are referred to hereinafter
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1 jurisdiction. Each Defendant has sufficient contacts in California to make proper the exercise of
2 personal jurisdiction over such defendants.
3 23. Venue is proper in this Court. A substantial part of the acts or omissions giving
4 rise to the claims alleged occurred in Los Angeles County, California, and such that this Court is
5 the appropriate venue for this action.
6 FACTUAL ALLEGATIONS
7 A. The Blouin Defendants' Fiduciary Duties to Mrs. King
8 24. Plaintiff married Larry King in 1997. As husband and wife, Mrs. King and Mr.
9 King shared a community estate of considerable size. In February 2007, Mr. King and Mrs. King
10 executed post-nuptial agreements with numerous provisions governing the community property of
11 Mr. King and Mrs. King, including, but not limited to, the requirement that "[n]either Larry nor
12 Shawn shall conceal, withhold, or make, without the knowledge and written consent of the other,
13 any gift, transfer, conveyance, or assignment of community property, to any individual or entity,
14 with a value of $2,500 per calendar year."
15 25. Larry King died in January 2021 and Shawn King has since served, without
16 interruption, as the personal representative of Larry King's estate and the nominated executor
17 under Mr. King's will. During their marriage, to assist with the management of their financial
18 affairs, Shawn King and Larry King engaged BCI pursuant to a written engagement agreement to
19 provide business management, family office management and tax and accounting services to both
20 of them and to oversee the proper administration and management of their community assets.
21 Defendants Blouin and Cinelli were the BCI principals with primary responsibility for the
22 financial affairs of Mr. King, Mrs. King, and the King Family.
23 26. Through this relationship, Mr. King and Mrs. King provided control of their
24 financial affairs to the Blouin Defendants, trusting that they would act as responsible fiduciaries
25 for both Mr. King and Mrs. King as promised by the Blouin Defendants and as required by the
26 law. However, this was not the case. Instead, Mrs. King recently discovered that the Blouin
27 Defendants' loyalty ran to Larry King and others in blatant violation of the Blouin Defendants'
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1 B. Shawn King's Recent Discovery of Millions of Dollars of Funds and Assets
2 Transferred to Third Parties Without Her Knowledge or Consent
3 27. Plaintiff recently discovered from a former employee of Mr. King that the Blouin
4 Defendants took negligent and/or deliberate, fraudulent actions, to establish a secret, undisclosed
5 bank account through which they illicitly and without Plaintiffs knowledge or consent, funneled
6 millions of dollars of community assets to numerous individuals and companies in violation of
7 California law.
8 28. By way of example only, based upon documents and information recently provided
9 by this former employee, Plaintiff has identified the following previously undisclosed transfers
10 and disbursements of community assets, all of which were secretly orchestrated by the Blouin
11 Defendants without Plaintiffs knowledge, consent or authorization:
12 a. Becky Radant - $50,088
13 b. Cal Fussman - $33,000
14 C. Debra Silvera - $59,470
15 d. Christy Wise - $25,200
16 e. Cullen Brothers - $109,017.82
17 f. Daniel Jaramillo - $53,250
18 g. Devonshire Delaware - $23,000
19 h. Felix Rappaport - $33,745
20 1. Flynt Management Group LLC - $80,789
21 J. Loreta Leopore - $2,500
22 k. Giana Elpin - $3,400
23 l. Goodwill Series, Inc. - $4,150
24 m. Greg Christensen - $41,483
25 n. Harvey Mackay - $596,901
26 0. Irwin Schaeffer - $30,000
27 p. Jackson/Lewis, LLP - $6,420
EARLY 28 q. Jacobi Niv (LCI, LLC) - $20,000

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r. Julie King - $15,000
2 s. Kurt Rappaport - $314,957
3 t. Larry Flynt - $85,513
4 u. Larry King, Jr. - $249,120
5 v. Lizanne Engemann - $9,700
6 w. Loretta Young - $6,000
7 x. Ray Park - $309,853
8 y. Samina Zaman - $6,000
9 z. Sid Young - $224,090
10 aa. Sydney Gail Stayden (American Twistory Productions) - $215,000
11 bb. Tali Flying LP - $42,000
12 29. The above list of transfers and disbursements of community assets is only a partial
13 list and Mrs. King continues to investigate the full extent of funds and assets transferred by the
14 Defendants without her knowledge, consent or authorization.

15 30. Plaintiff is informed and believes and thereon alleges that Mr. King and the Blouin
16 Defendants transferred additional significant community property, assets, and monies to or for the
17 benefit of the Transferee Defendants and numerous other third parties without Plaintiffs
18 knowledge, consent or authorization -- including, among other things, goods and services
19 purchased from numerous stores such as Chanel, Louis Vuitton, Macy's, Marlow Artistic
20 Furniture, Neiman-Marcus, Nordstrom's, Saks Fifth Avenue, Salvatore Ferragamo, Skin Health
21 Experts, Tracy Allen Fine Jewelers, Apple, and Williams Sonoma. By way of example only,
22 without limitation and subject to ongoing discovery, the Blouin Defendants caused one of the
23 Transferee Defendants, Shannon Engemann Grossman, to receive unauthorized good and services
24 worth millions of dollars (or more subject to further investigation), including airfare, luxury
25 clothing and accessories, furniture, limousine services, healthcare services, dental implants,
26 luxury automobiles, luxury hotel accommodations, and numerous other goods and services
27 purchased for Shannon Engemann Grossman in Beverly Hills, New York, Las Vegas, Italy, and
EARLY 28 elsewhere.
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1 31. The full extent, nature and amount of community property funds and assets
2 transferred by Mr. King and/or the Blouin Defendants, without the authorization or consent of
3 Plaintiff, is presently unknown to Plaintiff, and an accounting of same is required. Plaintiff
4 believes that ongoing investigation and discovery will reveal millions of dollars' worth of
5 additional transfers of funds and assets in violation of California law. Plaintiff did not consent to
6 the transfer or gift of any community property funds, assets or property to the Transferee
7 Defendants, or any of them, at any time in any amounts whatsoever. By this Complaint, Plaintiff
8 seeks to recover for the benefit of the community all community property and the profits
9 therefrom transferred by Mr. King or the Blouin Defendants to the Transferee Defendants.
10 32. The Transferee Defendants acted willfully and maliciously with the deliberate
11 intention to injure and damage Plaintiff by distributing money and assets known by them to be
12 community property of Plaintiff and Mr. King with the knowledge that Plaintiff had not consented
13 (and would never have consented to) such a transfer of the community property.
14 33. Additionally, the Blouin Defendants acted willfully and maliciously with the
15 deliberate intention to injure and damage Plaintiff by distributing money and assets known by the
16 Blouin Defendants to be community property of Plaintiff and Mr. King with the knowledge that
17 Plaintiff had not consented (and would never have consented to) such a transfer of the community
18 property.
19 34. Plaintiff is informed and believes and thereon alleges that before filing this
20 Complaint, she made a demand on the Transferees to return assets transferred to them and that the
21 Transferees refused to return the property and assets demanded.
22 C. The Blouin Defendants And The Other Defendants Conspire To Interfere
23 with Mrs. King's Administration Of Mr. King's Estate And To Reduce Her
24 Share Of The Estate
25 35. On or about February 10, 2021, an individual named Larry King Jr. filed a Petition
26 for Letters of Special Administration with the Los Angeles Superior Court (the "February 2021
27 Petition"), which sought to replace Ms. King as the executor of her husband's estate and to divest
EARLY 28 Mrs. King completely of her share of the estate instead giving a significant portion to Larry
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1 King Jr. Shawn King opposed the February 2021 Petition and that matter has now been resolved
2 through a confidential settlement agreement.
3 36. Upon information and belief, the Blouin Defendants and the other Defendants
4 conspired to assist Larry King Jr. and his attorneys with the preparation of the February 2021
5 Petition, including but not limited to the following:
6 a. Providing confidential information to Larry King Jr. and his attorneys concerning
7 Mr. and Mrs. King's financial affairs;
8 b. Communicating with and assisting Larry King Jr. and his attorneys regarding legal
9 strategy concerning the February 2021 Petition; and
10 c. Drafting and providing a sworn declaration from Cinelli in support of the February
11 2021 Petition without Mrs. King's prior knowledge or approval.
12 37. The Cinelli Declaration was not only adverse to Mrs. King's interests but also
13 publicly disclosed Mrs. King's private and confidential financial information that the Blouin
14 Defendants only had access to by virtue of their fiduciary relationship. As discussed above, the
15 full extent of this fraudulent activity by the Blouin Defendants and their co-conspirators are still
16 subject to ongoing investigation and the Blouin Defendants and the other Defendants have refused
17 to provide Mrs. King a full production of their files to Mrs. King despite their legal obligations to
18 produce these client files upon request.
19 D. The Blouin Defendants' Other Breaches of Fiduciary Duties Owed to Shawn
20 King
21 38. Additionally, as part of their engagement on behalf of Plaintiff, the Blouin
22 Defendants were responsible for managing and completing the payment of Plaintiffs and Mr.
23 King's regular, recurring household bills, annual taxes, and other taxes. The Blouin Defendants
24 deliberately and/or negligently failed to carry out this basic function, even though Plaintiff had
25 sufficient funds to cover the expenses. The Blouin Defendants' conduct has resulted in
26 interruptions of services, significant late fees, and penalties and has caused Plaintiff undue
27 distress, anxiety, and embarrassment.
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1 39. Despite the Blouin Defendants' fiduciary duties of care and loyalty owed to Mrs.
2 King as part of their engagement as business and officer managers, the Blouin Defendants have
3 mismanaged and failed to administer properly numerous accounts for Mr. King and Mrs. King,
4 including, but not limited to, accounts involving Boston Private Bank, Charles Schwab, and First
5 Republic Bank, Morgan Stanley, which has now caused Mrs. King millions of dollars in damages.
6 For example, as a result of the Blouin Defendants' lack of proper paperwork and administration of
7 Mr. King's and Mrs. King's numerous accounts, Mrs. King is unable to access financial records
8 and information needed to prepare tax returns and financial statements after Mr. King's death.
9 Additionally, pursuant to their engagement agreement, the Blouin Defendants were required to
10 provide monthly and quarterly financial statements to Mrs. King, which they have completely
11 failed to do for years.
12 40. Additionally, along with the improper transfer of community property of Mrs.
13 King and Mr. King, the Blouin Defendants improperly transferred and/or mismanaged Mrs.
14 King's separate property upon information and belief. Such separate property owned by Mrs.
15 King, included, among other things, a home and condominium in Utah. For example, upon
16 information and belief, and without limitation, the Blouin Defendants improperly distributed the
17 proceeds of the sale of Mrs. King's condominium-which was separate property owned
18 exclusively by Mrs. King - and transferred these funds to Mr. King and third parties without the
19 knowledge or consent of Mrs. King. Additionally, upon information and belief, the Blouin
20 Defendants sought to conceal these improper transfers of Mrs. King's separate property by,
21 among other things, by unnecessarily securing sub-standard mortgages and other financing for
22 Mrs. King's homes, transferring other assets to hide the Blouin Defendants' misconduct, and
23 failing to provide regular financial reports to Mrs. King.
24 41. Another example of the Blouin Defendants' misconduct and breaches of fiduciary
25 is their improper monthly charges without Mrs. King's knowledge or consent. Mrs. King has
26 recently discovered - after multiple requests for information from the Blouin Defendants as to
27 costs and expenses incurred in Mr. King and Mrs. King's accounts - the Blouin Defendants
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1 Mrs. King's approval for such monthly charges.
2 42. Mrs. King has repeatedly requested that the Blouin Defendants deliver electronic
3 and hard copy files concerning her business and personal finances, including but not limited to the
4 following:
5 a. all tax returns for Shawn King, Larry King, or any other member of the King
6 family since 2015, including but not limited to all schedules, workpapers, and
7 supporting documents;
8 b. all property tax records, including documentation of property taxes paid since
9 2015;
10 c. all bank account statements, including but not limited to First Republic Bank
11 accounts held by Shawn King, Larry King, or any other member of the King
12 family,
13 d. all credit card account statements,
14 e. all investment account statements,
15 f. any other account statements,
16 g. all agreements with employees and agents of the King Family, including
17 employment agreements, confidentiality agreements, business agreements, and
18 other necessary documentation,
19 h. all log in and password information for credit credits, bank accounts and any other
20 investment accounts, and
21 i. all engagement letters between Blouin and Larry King, Shawn King, and any
22 member of the King family.
23 43. However, despite numerous and repeated requests for such documents and
24 information, the Blouin Defendants have provided only an incomplete set of documents and, in
25 some cases, the Blouin Defendants have ignored the requests completely without any justification
26 or explanation (including, but not limited to, their failure to produce requested native copies of
27 Mrs. King's Quickbook records).
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1 44. As a result, on May 6, 2021, Mrs. King sent a formal notice of termination to the
2 Blouin Defendants stating that the Blouin Defendants have been terminated effective immediately
3 and that the Blouin Defendants, and their officers, employees, or agents are not authorized to
4 conduct any business whatsoever on behalf of Shawn King, the Estate of Larry King, or any
5 members of the King Family. This notice of termination also stated in writing that the Blouin
6 Defendants and their officers, employees or agents are prohibited from disclosing any documents
7 or information regarding the King Family to anyone without prior written permission from Shawn
8 King.
9 FIRST CAUSE OF ACTION
10 (Professional Negligence-Against Defendants BCI, Blouin, Cinelli and DOES 1-50)
11 45. Plaintiff incorporates by reference and realleges each and every allegation set forth
12 above, as though fully set forth herein.
13 46. By virtue of the relationship that existed between the Blouin Defendants, on the
14 one hand, and Plaintiff, on the other hand, the Blouin Defendants owed Plaintiff a duty of
15 professional care to use such skill, prudence, and diligence as other members of the accounting
16 and financial management profession commonly possess and exercise.
17 4 7. At all times after their representation of, and provision of financial management
18 and accounting services to Plaintiff commenced, for the reasons set forth above, the Blouin
19 Defendants, and each of them, failed to exercise reasonable care and skill in undertaking to
20 perform such services for Plaintiff in breach of their duty to exercise reasonable care and skill in
21 such representation.
22 48. Had the Blouin Defendants and each of them exercised proper care and skill in the
23 foregoing matter of Plaintiffs representation, Plaintiff would not have incurred the damages that
24 she did incur.
25 49. As a proximate result of such negligence, Plaintiff was actually damaged in an
26 amount to be proved at trial.
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1 SECOND CAUSE OF ACTION
2 (Breach of Fiduciary Duty-Against Defendants BCI, Blouin, Cinelli and DOES 1-50)
3 50. Plaintiff realleges and incorporates by reference each and every allegation set forth
5 51. The Blouin Defendants owed fiduciary duties to Plaintiff, including duties of the
6 utmost loyalty, due care, disclosure, good faith, and fair dealing.
7 52. By the conduct alleged herein, the Blouin Defendants repeatedly breached their
8 fiduciary duties to their client, Plaintiff.
9 53. As a direct and proximate result of the Blouin Defendants' breaches of fiduciary
10 duty, Plaintiff has suffered damages in an amount to be proven at trial.
11 54. The Blouin Defendants' actions were undertaken intentionally and in conscious
12 disregard of Plaintiffs interests and rights. Moreover, the Blouin Defendants' actions were
13 malicious, oppressive, and/or fraudulent. Therefore, Plaintiff should be awarded punitive and
14 exemplary damages sufficient to punish the Blouin Defendants and to deter similar conduct in the
15 future.
16 THIRD CAUSE OF ACTION§
17 (Fraud-Against Defendants BCI, Blouin, Cinelli and DOES 1-50)
20 56. The Blouin Defendants, as Plaintiffs and Mr. King's fiduciaries, financial
21 advisors, and managers, knew that Plaintiff had an interest in the community assets of the
22 marnage.
23 57. The Blouin Defendants utilized fraud and deceit to establish secret, undisclosed
24 bank accounts through which they improperly disbursed and dissipated community monies and
25 assets without Plaintiffs knowledge and/or consent.
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1 58. As described above, Blouin Defendants concealed these transfers and secret bank
2 accounts from Plaintiff in order to benefit Mr. King and maintain the secrecy of his spending and
3 to allow him to impermissibly gift and distribute community assets without Plaintiffs knowledge
4 or consent.
5 59. As discussed above, the Blouin Defendants also led a fraudulent and malicious
6 conspiracy to steal money from their own client, Mrs. King, and deprive Mrs. King from her
7 rights and interests in the estate of her late husband. As part of this conspiracy, the Blouin
8 Defendants actively assisted an effort by Larry King Jr. and others. The Blouin Defendants
9 wrongfully assisted Larry King Jr. and others by, among other things, sharing Mrs. King's
10 confidential financial information without Mrs. King's knowledge or approval and preventing
11 Mrs. King from having access to her own records in the course of her opposition to Larry King
12 Jr.'s lawsuit as described above.
13 60. Plaintiff reasonably relied on the Blouin Defendants' representations and
14 assurances that the assets were being properly handled and dispersed.
15 61. As a direct and proximate result of the Blouin Defendants' misconduct described
16 above, Plaintiff was damaged by the lost assets including community property assets.
17 62. The Blouin Defendants' conduct described herein above was intended to vex,
18 injure, and annoy Plaintiff and was done with a conscious disregard of Plaintiffs legal rights or
19 interests, and constitutes oppression, fraud, and/or malice.
20 FOURTH CAUSE OF ACTION
21 (Conversion of Community Property-Against All Defendants and DOES 1-50)
24 64. At the time of transfer, Plaintiff had and has an ownership interest in, and has the
25 right to immediately possess Plaintiffs assets, including the improperly disbursed community
26 property assets as described above.
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1 65. The Blouin Defendants, the Transferee Defendants, the DOE Defendants, and each
2 of them, converted the community property of Plaintiff as described above, as well as additional
3 sums of community funds, in an amount to be proven at trial.
4 66. Plaintiff is informed and believes that the Blouin Defendants, the Transferee
5 Defendants and DOES 1-50 conspired to convert the community property of Plaintiff and/or to
6 transfer said community prope1iy to others whose identities are presently unknown.
7 67. As the result of Defendants' ongoing conduct, Plaintiff has been and is continuing
8 to be harmed, and Defendants' conduct has been a substantial factor in causing the harm.
9 FIFTH CAUSE OF ACTION
10 (Equitable And/Or Implied Indemnity-Against All Defendants and DOES 1-50)
13 69. Defendants' actions as described herein have resulted in Plaintiff being compelled
14 to engage qualified professionals to audit her accounts and pay bills including late payment fees,
15 as associated with services Defendants were supposed to do, in connection therewith.
16 70. Plaintiff has already expended monies in paying for the professional service fees
17 for the above-referenced professionals and will continue to be required to pay these fees until the
18 issues are resolved.
19 71. Further, in the event that the aforementioned audits of payments due result in the
20 payment of any penalties or interest, such amounts are the result of and caused solely by the acts
21 and/or omissions of Defendants.
22 72. Accordingly, based on the principles of total and/or equitable and/or implied
23 indemnity and/or comparative fault, Defendants (and each of them) are obligated to fully or
24 partially indemnify Plaintiff for any sums Plaintiff has been or may be required to pay as a result
25 of the aforementioned audit and payments.
26
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1 SIXTH CAUSE OF ACTION
2 (Accounting of Community Property-Against BCI, Blouin, Cinelli, the Transferee
3 Defendants, and DOES 1-50)
6 74. Plaintiff is informed and believes and thereon alleges that the Transferee
7 Defendants and each of them, have possession of and/or converted community property funds and
8 assets transferred to them, or for their benefit, by Mr. King, the Blouin Defendants and/or DOES
9 1-50 without the consent or authorization of Plaintiff.
10 75. The exact amounts of the community property of Plaintiff transferred to the
11 Transferee Defendants and/or expended by the Transferee Defendants for their own personal use
12 are unknown to Plaintiff and can be determined only by an accounting. Plaintiff seeks an
13 accounting of all community property funds and assets transferred or paid by Mr. King and/or the
14 Blouin Defendants to or for the benefit of the Transferee Defendants, including an accounting of
15 all real property and personal property, vehicles, jewelry, furniture, art, clothing, and other items
16 acquired with community property funds, and the profits and rents therefrom.
17 SEVENTH CAUSE OF ACTION
18 (Set Aside of Transfer of Community Property Without Spousal Consent-Against
Transferee Defendants and DOES 1-50)
19
76. Plaintiff incorporates by reference and realleges each and every allegation set forth
20
above, as though fully set forth herein.
21
77. As discussed above, Plaintiff recently discovered that the Blouin Defendants and
22
Mr. King regularly provided and transferred community property funds to the Transferee
23
Defendants and that community property funds were utilized to purchase various assets or pay for
24
certain expenses for the Transferee Defendants all of which are presently unknown. The
25
Transferee Defendants are wrongfully in possession of said community funds and property and all
26
assets purchased with said community funds, and have converted said community property funds
27
and assets to their own use. Plaintiff did not consent to the transfer or gift of any such community
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1 property funds, assets or property to the Transferee Defendants, or any of them, at any time in any
2 amounts whatsoever.
3 78. Plaintiff is informed and believes that the Blouin Defendants and DOES 1-50
4 conspired with and assisted the Transferee Defendants to acquire and convert the community
5 property of Plaintiff.
6 79. Plaintiff requests that the Court set aside all transfers of community property to the
7 Transferee Defendants made without the consent or authorization of Plaintiff as alleged above,
8 deem the Transferee Defendants constructive trustees of such community property, and require
9 the Transferee Defendants to return all such community property, all assets acquired with such
10 community property, and all profits and rents therefrom, to Plaintiff on behalf of the community.
11 EIGHTH CAUSE OF ACTION
12 (Imposition of Constructive Trust-Against Transferee Defendants and DOES 1-50)
15 81. The facts alleged above require the imposition of a constructive trust against the
16 Transferee Defendants with respect to the transferred community property assets because Plaintiff
17 has a community property and ownership interest in said property that was subverted by the gift
18 and transfer of such property by Mr. King and the Blouin Defendants without Plaintiffs consent
19 or authorization. By engaging in such scheme, the Transferee Defendants wrongfully acquired
20 the property by fraud, undue influence, the violation of a trust and other wrongful acts, and are not
21 entitled to ownership of the property or of any of the assets in their possession acquired with the
22 community property of Plaintiff.
23 82. Plaintiff, together with Mr. King, are the true owners of the improperly transferred
24 funds or assets as alleged above and all items purchased therewith.
25 83. By virtue of these wrongful acts, the Transferee Defendants hold the property and
26 all assets in their possession and under their control acquired with community property of Plaintiff
27 as constructive trustees for the benefit of Plaintiff and the community.
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84. On information and belief, Plaintiff alleges that the Transferee Defendants will
2 transfer or conceal funds and assets unless a constructive trust is imposed. Imposition of a
3 constructive trust is fair and equitable as between the parties in view of the unauthorized transfer
4 of Plaintiffs community property to the Transferee Defendants, the expectations of Plaintiff of
5 joint control over such community property and the Transferee Defendants knowledge that Mr.
6 King was at all times a married man who had not obtained the consent or authorization of his wife
7 to the transfers of community property to the Transferee Defendants.
8 NINTH CAUSE OF ACTION
9 (Declaration That Gifts Of Community Personal Property Are Void-Against Transferee
IO Defendants and DOES 1-50)
13 86. Plaintiff is informed and believes and thereon alleges that the Blouin Defendants
14 attempted to make, and continue to make, transfers and/or gifts of community cash and property
15 to the Transferee Defendants, including community funds utilized to purchase assets. These
16 attempted gifts were made without the consent or authorization of Plaintiff. Plaintiff has not since
17 consented to the making of any gifts of community property to the Transferee Defendants or
18 Defendants DOES 1 through 50.
19 87. Plaintiff is informed and believes that demand has been made upon the Transferee
20 Defendants to return the improperly transferred community assets and they have refused. Thus, a
21 dispute presently exists as to the validity of the transfers of community assets to the Transferee
22 Defendants that is ripe for adjudication by this Court.
23 88. Plaintiff requests a declaration that gifts and transfers to the Transferee Defendants
24 made by Mr. King or the Blouin Defendants of Plaintiffs community assets are void and of no
25 force or effect and that such community property must be returned to Plaintiff to hold as
26 community assets for the benefit of Plaintiff and Mr. King.
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TENTH CAUSE OF ACTION
2 (Violation of Bus. & Prof. Code§§ 17200 et seq. -Against All Defendants)
5 90. Defendants' actions as described herein constitute unlawful, unfair, and fraudulent
6 business practices proscribed by California Business and Professions Code Sections 17200 et seq.
7 91. As a result of Defendants' acts in violation of California Business and Professions
8 Code Sections 17200 et seq., Plaintiff has suffered and, unless those acts are enjoined by the
9 Court, will continue to suffer irreparable harm for which he has no adequate remedy at law.
10 Additionally, Plaintiff is entitled to restitution.
11 ELEVENTH CAUSE OF ACTION
12 (Intentional Infliction of Emotional Distress - Against BCI, Blouin, Cinelli, the Transferee
16 93. At all relevant times, Plaintiff was the spouse of Larry King.
17 94. BCI, Blouin, Cinelli, the Transferee Defendants, and Does 1 through 50, inclusive,
18 engaged in extreme and outrageous conduct that was intended to cause emotional distress, as
19 outlined in the foregoing paragraphs.
20 95. As a result of the wrongful conduct ofBCI, Blouin, Cinelli, the Transferee
21 Defendants, and Does 1 through 50, Plaintiff has suffered severe emotional distress.
22 96. BCI, Blouin, Cinelli, the Transferee Defendants, and Does 1 through 50 acted
23 willfully and maliciously and/or fraudulently with the deliberate intention to injure and damage
24 Plaintiff in engaging in the foregoing conduct, justifying an award of punitive damages.
25
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1 TWELFTH CAUSE OF ACTION
2 (Negligent Infliction of Emotional Distress - Against BCI, Blouin, Cinelli, the Transferee
6 98. At all relevant times, Plaintiff was the spouse of Larry King.
7 99. Due to BCI, Blouin, Cinelli, the Transferee Defendants, and Does 1 through 50's
8 wrongful and negligent conduct described above, Plaintiff has suffered severe emotional distress
9 for which she seeks compensatory damages.
10 THIRTEENTH CAUSE OF ACTION
11 (Aiding and Abetting Breach of Fiduciary Duty - Against BCI, Blouin, Cinelli, the
12 Transferee Defendants, and DOES 1-50)
15 101. Plaintiffs are informed and believe and thereon allege that Defendants had reason
16 to know and/or did know that:
17 a. BCI, Blouin and Cinelli were acting in direct contravention of the interests of their
18 client, Mrs. King by virtue of the breaches of fiduciary duty alleged above.
19 b. BCI, Blouin and Cinelli were taking actions on behalf of and in assistance to other
20 clients and non-clients that were directly adverse to the interests of their client Mrs.
21 King.
22 102. Each of BCI, Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1
23 through 50 actively assisted and provided substantial assistance to both BCI, Blouin and Cinelli's
24 breaches of fiduciary duty.
25 103. BCI, Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1 through 50
26 are each therefore liable for the respective breaches of fiduciary duty of the other.
27 104. The actions by BCI, Blouin, Cinelli, the Transferee Defendants, and Doe
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1 105. The conduct ofBCI, Blouin, Cinelli, the Transferee Defendants, and Doe
2 Defendants 1 through 50 was and is fraudulent, oppressive and malicious, and in conscious
3 disregard of the rights of Mrs. King. Mrs. King is therefore entitled to punitive damages against
4 BCI, Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1 through 50 in a sum
5 according to proof.
6 FOURTEENTH CAUSE OF ACTION
7 (Aiding and Abetting Fraud - Against BCI, Blouin, Cinelli, the Transferee Defendants and
8 DOES 1-50)
11 107. Plaintiffs are informed and believe and thereon allege that Defendants BCI,
12 Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1 through 50 had reason to know
13 and/or did know that:
14 a. BCI, Blouin and Cinelli were disbursing assets to the Transferee Defendants that
15 were community property assets owned by Mrs. King.
16 b. BCI, Blouin and Cinelli were disbursing these community property assets to the
17 Transferee Defendants without the knowledge or consent of Mrs. King.
18 c. BCI, Blouin and Cinelli were actively concealing their disbursement of these
19 community property assets to the Transferee Defendants from Mrs. King.
20 d. BCI, Blouin and Cinelli were taking actions on behalf of and in assistance to other
21 clients and non-clients that were directly adverse to the interests of their client
22 Mrs. King, including the improper transfer of Mrs. King's funds and assets.
23 108. Each ofBCI, Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1
24 through 50 actively assisted and provided substantial assistance to the commission of this fraud
25 upon Mrs. King.
26 109. BCI, Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1 through 50
27 are each therefore liable for the fraud of BCI, Blouin, and Cinelli.
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1 110. These actions by BCI, Blouin, Cinelli, the Transferee Defendants, and Doe
2 Defendants 1 through 50 have directly caused injury and damage to Mrs. King.
3 111. The conduct ofBCI, Blouin, Cinelli, the Transferee Defendants, and Doe
4 Defendants 1 through 50 was and is fraudulent, oppressive and malicious, and in conscious
5 disregard of the rights of Mrs. King. Mrs. King is therefore entitled to punitive damages against
6 BCI, Blouin, Cinelli, the Transferee Defendants, and Doe Defendants 1 through 50 in a sum
7 according to proof.
8 PRAYER FOR RELIEF
9 WHEREFORE, Plaintiff respectfully prays for the following relief:
10 ON THE FIRST CAUSE OF ACTION:
11 1. For compensatory and/or restitutionary damages in a sum according to proof;
12 ON THE SECOND CAUSE OF ACTION:
14 2. For exemplary and punitive damages
15 ON THE THIRD CAUSE OF ACTION:
17 2. For exemplary and punitive damages;
18 ON THE FOURTH CAUSE OF ACTION:
20 2. For exemplary and punitive damages;
21 ON THE FIFTH CAUSE OF ACTION:
23 2. For preliminary and permanent injunctive relief;
24 3. For complete or partial indemnity in a sum according to proof;
25 ON THE SIXTH CAUSE OF ACTION:
26 1. For an accounting;
27
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1 2. For an Order for payment to Plaintiff by the Transferee Defendants of the amount
2 found to be due Plaintiff as a result of the accounting and interest thereon at the
3 legal rate.
4 ON THE SEVENTH CAUSE OF ACTION:
6 2. For the set aside and return of all community property funds and assets;
7 ON THE EIGHTH CAUSE OF ACTION:
9 2. For imposition of a constructive trust to return assets to Plaintiff;
10 ON THE NINTH CAUSE OF ACTION:
11 1. For a judicial declaration that all gifts and transfers to the Transferee Defendants
12 made by Mr. King, Blouin and/or Cinelli and Plaintiffs community assets are void
13 and of no force or effect and that such community property must be returned to
14 Plaintiff to hold as community assets for the benefit of Plaintiff and Mr. King;
15 ON THE TENTH CAUSE OF ACTION:
16 1. For restitutionary damages in a sum according to proof.
17 ON THE ELEVENTH CAUSE OF ACTION:
19 2. For punitive damages
20 ON THE TWELFTH CAUSE OF ACTION:
21 1. For compensatory damages in a sum according to proof;
22 ON THE THIRTEENTH CAUSE OF ACTION:
24 2. For punitive damages
25 ON THE FOURTEENTH CAUSE OF ACTION:
27 2. For punitive damages.
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ON ALL CAUSES OF ACTION:
2 1. For attorneys' fees and costs;
3 2. For pre-judgment interest;
4 3. For issuance of a temporary restraining order, a preliminary injunction, and a
5 permanent injunction enjoining the Transferee Defendants from transferring, encumbering, or
6 divesting any interest in the improperly transfe1Ted community property assets pending a final
7 judgment in this action.

8 4. For such other and further relief as the Court deems just and proper.
9
10 Respectfully submitted,
11
Dated: October 6, 2022 EARLY SULLIVAN WRIGHT
12 GIZER & McRAE LLP
~
13
By: ~ /
14 Stephen Y. Ma
Peter D. Scott
15
Attorneys for Plaintiff SHAWN KING
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695208.3

King v. Blouin

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King v. Blouin

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22STCV32837

1 Stephen Y. Ma, State Bar Number 214998

11 SHAWN KING, in her individual capacity Case No.

EARLY 28 of the County of Los Angeles, State of California.

7 A. The Blouin Defendants' Fiduciary Duties to Mrs. King

EARLY 28 fiduciary duties to Mrs. King.

EARLY 28 q. Jacobi Niv (LCI, LLC) - $20,000

14 Defendants without her knowledge, consent or authorization.

5 permanent injunction enjoining the Transferee Defendants from transferring, encumbering, or

7 judgment in this action.

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