SCANNED ON 912912009

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK LEE & LEE, LLC, CHONG OK LEE, and YOUNG J. KIM, Plaintiffs, -againstBEAUTRI REALTY COW., a/k/a BEAUTRICE REALTY COW. and CHANG WOOK LIM, Defendants,

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Index No. 602994/04

AMENDED VERIFIED COMPLAINT

CHUNG SANG YAE, a/k/a SANG YAE CHUNG or SANG YAE CHUNG Intervenor-Defendant.

Plaintiffs Lee & Lee, LLC, Chong Ok Lee and, Young J. Kim, (Plaintiffs), by their attorneys, Yoon & Kim LLP, for their complaint against defendant Chang Wook Lim (Defendant) allege as follows:
1.

Plaintiff, Lee & Lee, LLC, at all times hereinafter mentioned is and was a limited

liability company created under and by the virtue of the laws of the State of New York with its principal place of business in the County of New York, City and State of Ne
2.

-and-

Plaintiff, Chong Ok Lee, at all times hereinafter is and was an individual * L

A.

5I.T

resides at 208 Wilson Drive, Cresskill, NJ 07626. 3. Plaintiff, Young J. Kim, at all times hereinafter is and was an ind@dwI%kb
.*

resides at 5 Skyline Drive Englewood Cliffs, NJ 07632.

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4.

Upon information and belief the Defendant, Chang Wook Lim, at all times

relevant hereto is and was an individual who resided in the County of New York, City and State of New York.
FACTS
5.

Beautri Realty Corp. &a Beautrice Realty Corp. (Beautri), at all times

relevant hereto, is the owner of a certain plot of real property commonly known as 9 West 32nd Street, New York, New York and described as Section 3, Block 834 and Lot 35 and is a five storey brick and masonry building with one storey masonry in front and two-storey brick in rear.

sale wherein Plaintiffs were to purchase the above described real property for the total price of $4,100,000 (the Contract).
7.

Defendant executed the Contract as the President of Beautri and the owner and

holder of all the shares of stock in Beautri and during the whole course of negotiations for the Contract affirmatively held himself out as the sole shareholder of that company.
8.

Pursuant to the Contract, Plaintiffs, on or about March 26,2004, tendered to

Defendant $400,000.00 in cash as a first prepayment, receipt of which was acknowledged in writing by Defendant. On or about July 30,2004, Plaintiffs paid Defendant an additional $400,000.00 in cash as the second prepayment, receipt of which was acknowledged in writing by Defendant.
9.

On or about April 2,2004, Plaintiffs tendered a further $200,000.00 to

Defendants attorney as a down payment under the Contract. Plaintiffs thereafter fulfilled all the terms of the Contract.

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6.

On or about March 26,2004, Plaintiffs and Beautri executed a written contract of

10.

By correspondence dated August 5,2009 and August 9,2004, Plaintiffs notified

Beautri and Defendant that they were ready, willing and able to close on the transaction. 11. By correspondence dated August 10,2004, Beautri and Defendant refuse to close

and unilaterally terminated the Contract, alleging that Plaintiffs are in default of the Contract. 12. At all relevant times, Defendant asserted that he was the sole shareholder,

president and sole employee of Beautri. 13. Beautri and Defendant did not return any of the monies at the time of the

purported termination of the Contract.

Defendant seeking specific performance of the Contract. 15.

Thereafter, on or about May 22,2007, Chung Sang Yae (Chung), a resident and

citizen of South Korea, moved to intervene in this suit, claiming that she had purchased all of shares of Beautri stock pursuant to a stock purchase agreement dated November 15,2001 (the Stock Purchase Agreement). Closing of the Stock Purchase Agreement took place on or about December 23,2001. 16.

Pursuant to the terms of the Stock Purchase Agreement, on or about December 10,

2001, Defendant executed an assignment of all 200 shares in Beautri to Chung and resigned as the sole director and officer of Beautri. 17. Chung and Beautri thereafter, hired Defendant to manage the property and

conduct the day-to-day operations of Beautri and the premises. Defendant was tasked with various duties, including collecting rents from tenants and remitting those funds to Chung in Korea.

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14.

On or about September 13,2004, Plaintiffs commenced suit against Beautri and

FIRST CAUSE OF ACTION (Fraud)

18.

Plaintiffs repeat and reallege the allegations set forth in paragraphs 1 through 17

as though fully set forth herein. 19. Defendant has knowingly and intentionally made numerous false representations

of material fact to Plaintiffs in connection with the Contract. 20. In or about March, 2004, Defendant stated and held himself out as the sole

shareholder and principal of Beautri. 21. Also in connection with the contract negotiations, Defendant averred that he was

the sole officer and director of Beautri. 22.

Additionally, on or about March 26,2004, Defendant executed the Contract on

behalf of Beautri as its purported President. 23.

These representations were apparently false as Defendant had sold all his shares

in Beautri to Chung and had resigned as a director and officer of Beautri in or about December, 2001. 24.

Upon information and belief, Defendant knowingly and intentionally made these

Contract and tendering to him $800,000 as a prepayment of the Contract.

25.

Plaintiffs had no reason to doubt Defendants statements and representations of

ownership and control over Beautri as Defendant was evidently engaged in the day-to-day operations of Beautri, collected rents, maintained the premises and executed leases, among other things, on behalf of Beautri. 26. In reasonable reliance upon Defendants false representations, Plaintiffs executed

the Contract and tendered to Defendant $800,000 as prepayment.

4

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false representations with the intent to defraud the Plaintiffs and induce them into entering the

27.

As a result of Defendants false representations and Plaintiffs reliance upon them,

Plaintiffs have suffered significant harm. 28. By reason of the foregoing, Plaintiff has been damaged in an amount to be

determined at trial, but in no event believed to be less than $800,000, plus interest thereupon from March 26,2004, plus punitive damages as deemed appropriate by this Court.
SECOND CAUSE OF ACTION (Conversion)

29.

Plaintiffs repeat and reallege the allegations set forth in paragraphs 1 through 28

as though fully set forth herein. 30. Pursuant to the Contract, Plaintiffs had tendered to Defendant a total sum of

$800,000 as prepayment of the Contract.

3 1.

On or about August 10,2004, Defendant purportedly terminated the Contact and

despite due demand, Defendant has refused to return any monies paid by Plaintiffs. 32. Accordingly, Defendants have converted these funds and Plaintiffs are entitled to

return of the prepayment. 33.

By reason of the foregoing, Plaintiff has been damaged in an amount to be

from August 10,2004.

WHEREFORE, Plaintiffs respectfully request the Court enter judgment in favor of

Plaintiffs as follows: (a) on the first cause of action against Defendant in an amount to be determined at trial, but in no event believed to be less than $800,000, plus interest thereupon from March 26,2004, plus punitive damages as deemed appropriate by this Court;

determined at trial, but in no event believed to be less than $800,000, plus interest thereupon

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(b)

on the second cause of action against Defendant the amount of $800,000, plus interest thereupon from August 10,2004;

(c) (d)

the costs and disbursements of this action; and such other and further relief as this Court deems just and proper.

Dated: New York, New York July 14,2009

YOON & KIM LLP Attorneys for Plaintiffs

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By:

Young D. Kim 11 East 44thStreet - Suite 1400 New York, New York 10017 (212) 584-0058

VERIFICATION
) ) ss: COUNTY OF NEW YORK )

STATE OF NEW YORK

YOUNG J. KIM, being duly sworn, deposes and says:

I am a named plaintiff herein. I have read the foregoing AMENDED VERIFIED

COMPLAINT and know the contents thereof. The allegations therein are true to the best of my
k n o u ledge. except thobe matteis therein which are stated to be alleged on information and belief,

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