D
AVID
W.
S
COFIELD
- 4140
P
ETERS
S
COFIELD
A Professional Corporation
7430 Creek Road, Suite 303Sandy, Utah 84093-6160Telephone:(801) 322-2002Facsimile:(801) 912-0320E-mail:dws@psplawyers.com Attorneys for Brian Bagley and L. Carol Bee, Creditors
IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF UTAH
In re:
B
ARRY
D
ON
H
UNTER
; and
K
IMBERLY
C
HAMPLIN
H
UNTER
, Debtors. ________________________________
B
RIAN
B
AGLEY AND
L.
C
AROL
B
EE
,
Plaintiffs,-vs-
B
ARRY
D.
H
UNTER
;
K
IMBERLY
C
HAMPLIN
H
UNTER
;
P
ORTFOLIO
M
ANAGER
I
NTERNATIONAL
L.L.C.;
O
NEIROS
T
ECHNOLOGIES
L.C.;
M
ICHAEL
J.
W
RIGHT
;C
YNTHIA
L.
W
RIGHT
;
G
REGORY
B.M
ADSEN
;
L
UCIDITY
M
ANAGEMENT
,
LLC;V
OLITION
T
RADING
C
OMPANY
,
LLC;C
HURCH OF
S
CIENTOLOGY OF
U
TAH
;C
YNTHIA
L.
W
RIGHT
;
C
HURCH OF
S
CIENTOLOGY
M
ISSION OF
S
ALT
L
AKE
C
ITY
;
C
HURCH OF
S
CIENTOLOGY
I
NTERNATIONAL
;
T
OM
B
URTON
;
J
AMES
D'A
REZZO
;
A
LAN
S.
F
ARR
;
G
EORGE
H
ITES
;
G
REG
K
INGDON
;
D
AVID
P
ETERSEN
;R
OBBY
J.
S
TOWE
;
S
ANDOR
S
ZANISZLO
,
Defendants. Bankruptcy Case No. 12-26860WTT(Chapter 7)
F
IRST
A
MENDED
C
OMPLAINT TO
D
ENY
D
ISCHARGE UNDER
11
U.S.C.
§
727,
TO
D
ETERMINE
N
ON
-D
ISCHARGEABILITY
P
URSUANT TO
11
U.S.C.
§
523
AND
F
URTHER
R
ELIEF
Adv. Proc. No. 12-02544 Honorable William T. Thurman[FILED ELECTRONICALLY]
JURY TRIAL DEMANDED
Case 12-02544 Doc 39 Filed 04/26/13 Entered 04/26/13 16:49:33 Desc Main Document Page 1 of 105
Plaintiffs Brian Bagley (“Bagley”) and L. Carol Bee (“Bee”), for their claimsagainst defendants Barry D. Hunter (“Hunter”); Kimberly Champlin Hunter (“Kimberly”);Portfolio Manager International L.L.C. (“PMI”); Oneiros Technologies L.C. (“Oneiros”);Michael J. Wright (“Wright”); Cynthia Wright (“Cynthia”); Gregory B. Madsen (“Madsen”);Lucidity Management, LLC (“Lucidity”); Volition Trading Company, LLC (“Volition”);Church of Scientology of Utah (“Utah Church”); Cynthia L. Wright (“Cynthia”); Church of Scientology Mission of Salt Lake City (“Utah Mission”); Church of ScientologyInternational (“Church”); Tom Burton (“Burton”); James D’Arezzo (“D’Arezzo”); Alan S.Farr (“Farr”); George Hites (“Hites”); Greg Kingdon (“Kingdon”); David Petersen(“Petersen”); Robby J. Stowe (“Stowe”); Sandor Szaniszlo; (“Szaniszlo”), allege asfollows:
PARTIES
1.Bagley is an individual residing in the State of Utah.2.Bee is an individual residing in the State of Utah.3.Hunter is an individual residing in the State of Utah who, at all timesthrough the dissolution of PMI in October, 2011 was its sole or majority owner. Upon thedissolution and winding up of PMI, the assets of PMI were required to be treated inaccordance with U
TAH
C
ODE
A
NN
. § 48-2c-1308, which provides: (1) After dissolution,and during winding up, the assets of the company shall be applied to pay or satisfy: (a)first, the liabilities to creditors other than members, in the order of priority as provided bylaw; (b) second, the liabilities to members in their capacities as creditors, in the order of priority as provided by law; and (c) third, the expenses and cost of winding up. (2)Company assets remaining after application under Subsection (1) shall be allocated and2
Case 12-02544 Doc 39 Filed 04/26/13 Entered 04/26/13 16:49:33 Desc Main Document Page 2 of 105
distributed to the members as provided in the articles of organization or operatingagreement, or if not so provided, in accordance with the members' final capital accountbalances after allocation of all profits and losses including profits and losses accrued or incurred during winding up.” In all his acts alleged, Hunter acted as an agent for each of the conspiracy, the Church, the Utah Church, the Utah Mission, Wright, Oneiros andPMI, and he acted within the course and scope of that agency. 4.Kimberly is an individual residing in the State of Utah, is a Co-Debtor inthe main bankruptcy case, having filed a joint voluntary petition for relief under Chapter 7 of Title 11 of the U
NITED
S
TATES
C
ODE
on May 25, 2012. At material times hereto,Kimberly was a member of the Board of Directors of the Utah Mission and controlled itsoperations under the oversight of the Utah Church and the Church. At all times,Kimberly acted as an agent for the Church, the Utah Church and the Utah Mission andshe acted within the course and scope of that agency. 5. PMI is a Utah limited liability company that was formed on June 21, 2005and which expired on October 4, 2011. At all material times in its existence, PMI held anexclusive license from Oneiros to allegedly valuable software technology invented byWright and owned by Oneiros. PMI at all times was an alter ego of Wright, Oneiros, theChurch, the Utah Church and the Utah Mission and an agent of the conspiracy whichacted within the course and scope of that agency.6.Wright is an individual residing in the State of Utah who created a Utahlimited liability company named Portfolio Manager, L.C., in 2002. At times material tothis adversary proceeding Wright was the President of the Utah Church, in charge of allof its operations and the oversight of the Utah Mission under the direction of the Church.3
Case 12-02544 Doc 39 Filed 04/26/13 Entered 04/26/13 16:49:33 Desc Main Document Page 3 of 105