couFg-Sw*?

"E9P
Court
SuPerior
Loi Angeles
l_ PIAI{TIN D. SINGER (Bar IYo. itLE6)
BRIAN c. WOLF [Bar No. LSSZSTI CIclI 62009
, pp_q
rrJuD u'
S. "riAtiA"F{(Bar No. 207426')
EAGAN (Ea{l{9'*a0flry'l
LAIMLY & SINGER rRorEssIol$AL- , coRPoRATIoN
^Atrftnn ^ mrArr JohnA.ctarke,Execonve0ffieer/clerk
I rrr/??T T^ndq
3 2049 Cenatry Park Easr, Suire2400
Los Angeles,California 90A67-2gA6
4 Telephone:(310)55G3501
Facsimile: (310) 556-3615
t Email: rndsinoer@IaveIy sinper. com CASEMANAGEMENT CONFERENCE
bwqlftdlav elysinger. com
6 tea g4n(&lavelysi n ser.c0nr FEBOT Z[]IO
7 Attnrneys for Plainriff NICOLAS CAGE

I
txs'
JomrLsEGfiL o E3oo\
I
SUPERIOR
COURTOF THE STATEOF CALIFORNIA
[0
FORTI{E COUNTYOF LOSANGELES- WESTDISTRTCT
11

t2
NICOLAS CAGE, an iudividuat, CASENO. sc105285
13
Plainiff, COMPLAINT F'OR:
l4
v. (1) PROFESSIONALNEGLIGENCEI
15 a,
(3)
BR"EACIIOtr' F'IDUCIARYDLIIIYT
CONSTRUCTIW FRATJD;
L6 SAMTIEL J. LEVIN, an individual; (4' CONCS,AI"KIENT;
SAMIJELJ. LEVIN, C.P.A.,INC., A ) (s) NEGLIGENT
L7 Califoroia corporariorr; LEVIN & ) S{ISREPRESENTATION;
COMPANY MANT.CEMENT, INC., A i (o BRHACH Of' COIffRACT; arrd
t8 busiaessentity, fiorm unknown; and DOES i (T ACCOT]NTING
I through50, iaclusive, )
L' \
Defendanrs. ) DEMANU FOR.TARYTEIaL
20
i
2t
o, PlaiutiffNICOLAS CAGE ("Plaintiff' or nCage")allegesas follows:
23
sul{MA.RYOF CLAIM
24
25 1. Nicolas Cagais one of the most soughtafter afid lrighly paid actorsin the worgl.
26 I'Ie is alsothe victin of an incomperentbusinessmaoager,SamuelJ. Levin ("Levin"), who lined
27 his pockas with several million dollars in businessmanagementfees while sendingCagedown
28 a path toward financial ruil. Like many successfulartists who trusr financial professionalsro

Kr\151l-7d\PLE\COMPLAIN?
l0l309,wFd
 L advisethem,Cagerelied on Levin to handlehis financialaffairsto ensurethat he andhis family
). would have a financially securefuture built on the foundationof the substantialmoniesCage

3 earnedthroughyearsof hardwork. However,Cagediscoveredthathe is now forcedto sellmajor

4 assetsandinvestments
at a significantlossandis facedwith hugetax liabilitiesbecause
of Levin's

5 incompetence,
misrepresentations
andrecklessness.
Ratherthanattainingfinancialsecurity,Cage

6 hasbeenforcedto disposeof significantassetsin order to pay for Levin's grossmisconduct.

7 2. NicolasCageis a worlclrenownedAcademyAward winningactor,andis oneof

I the mosthighly respectedandsoughtafteractorsin Hollywood,havingappearedin excessof fifty

9 (50) motionpicturesduring the pasttwo decades.In 2001, CageretainedLevin, a business

10 managerandcertifiedpublic accountant,
to overseeandmanagehis businessinterests,investments

1 1 and finances. For the nextsevenyears,Levin profited off of the hard work and creativeability

t2 of Cage,payinghimselfmillionsof dollars. Insteadof protectingandpreservingCage'swealth

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
15 catastrophiclosses. In addition,Levin failedto timely pay taxeson behalfof Cagewhendue,
t 6 resultingin millionsof dollarsin backtaxes,interestandpenaltiesowedby Cage.
t7 3. It was only recently, when Cage terminatedLevin and retainednew business

18 managementand accountantservices,that Cagelearnedthe gravity of his financialcondition.

19 Among other things, Levin recommendedand facilitatednumeroushighly risky and speculative
20 real estateinvestments; portfolio;failedto obtain
failedto properlydiversifyCage'sinvestment

2l properandadequateinsuranceon behalfof Cageandhis variousinvestmentsleavingCagesubject

.,, to uninsuredclaims;andmisrepresented
andconcealedCage'strue financial the
statusat time that
23 plaintiff acquiredassetsand investments.As a result of Levin's grossmismanagement
of the
24 financialaftairs of Cage,Cagehas sufferedsignificantmonetarylosses,and his reputationhas
25 beenirreparablytarnished.
26 tl I
27
28

K :\1531- ?6\PLE\COMPLAINT101309.wpd
COMPLAINT
 1 ALLEGATIONS COMMON TO ALL CAUSESOF ACTION
,,
The Parties

3 4. Cageis, andat all timesrelevantheretowas,a part-timeresidentof the Countyof

4 Los Angeles,Stateof California.

3 5. Levin is, andat all timesrelevantheretowas,an individualresidingin theCounty

6 of Los Angeles,Stateof California.

7 6. Plaintiff is informedandbelieves,andbasedthereonalleges,thatDefendantlJvin

8 Inc. ("kvin Management")

& Co. Management, is a businessentity, form unknown,with its

9 principalplaceof businesslocatedin the Countyof Los Angeles,Stateof California.

10 7. Plaintiff is informedandbelieves,andbasedthereonalleges,thatDefendantSamuel

1 1 J. Levin, CPA, Inc. ("Levin, Inc.") is a Californiacorporation,

with itsprincipalplaceof business
1 2 locatedin theCountyof Los Angeles,Stateof California. (Defendants
Levin, Levin Management

13 andLevin, Inc. are sometimes

referredto collectivelyas "Defendants.")

t4 8. Plaintiffis informedandbelievesandbasedthereonallegesthatLevinManagement
15 and Levin, Inc. are mere shellsonly andhaveno existenceseparateand apartfrom their owner,

16 Levin. At all times mentionedhereinthere existeda unity of interestand ownershipbetween

T7 Levin and his companiesLevin Managementand Levin, Inc., such that any individuality and

betweenLevin, on the one hand, and Levin Managementand Levin, Inc., on the
18 separateness
19 otherhand,hasceased,and both Levin Management
and Levin, Inc. arethe alter egosof Levin.

20 9. Plaintiff is informed and believesand basedthereonallegesthat the assetsand

2l propertiesof Levin Management,[nc. and Levin, Inc. are commingledwith the separateassets
J' of Levin, suchthat there is no distinctionbetweenthe individualand the entity assets.Plaintiff

23 is further informed and believesand basedthereonallegesthat adherenceto the fiction of the

z4 separateexistenceof Levin Managementand Levin, Inc. as entitiesdistinct from Levin would

25 succeedin avoidinglegally incurredliabilities while maintainingthe benefitsof the entities,an

26 unfairandunjustresult.
27 10. The true namesand capacitiesof the defendantsDOES I through50, inclusive,
28 whetherindividual plural" corporate,partnership,associateor otherwiseare not known to

K:\l 53 l-76\PLE\COMPLAINT l0l309,wpd

COMPLAINT
 I Plaintiff, who thereforesuethesedefendants
by suchfictitious names. Plaintiff will seekleave
) of court to amendthis complaintto showthe true namesand capacitiesof DOES 1 through50,

3 inclusive, when the samehas beenascertained.Plaintiff is further informedand believesand

4 basedthereonallegesthat eachof the defendantsdesignatedherein as a DOE is negligently,

wantonly,recklessly,tortiously and unlawfully responsiblein somemannerfor the eventsand

6 happeningsherein referred to and diligently, wantonly, recklessly,tortiously and unlawfully

7 proximatelyand legally causedinjuriesanddamagesto Plaintiff as hereinalleged.

8 11. Plaintiff is informedand believes,and basedthereonalleges,that eachof the

9 defendantsdesignatedherein as a DOE is indebtedto Plaintiff as hereinafterallegedand that

10 Plaintiff's rights againstsuchfictitiously nameddefendantsarisefrom suchindebtedness.

11 12. Plaintiff is informed and believe, and basedthereonalleges,that at all times

t2 mentioned,eachof the defendantswasthejoint venturer,agentand/oremployeeof eachof their
13 co-defendants
andin doingthethingshereinmentioned,actedwithin their authorityassuchagents
l4 and employeesand with the permissionand consentof their co-defendants.
15

16 RETENTION OF LEVIN
L7 13. Levin representedhimself to Plaintiff as an expert in businessmanagement,
18 accountingand investmentadvisory services. Based on this representation,in or around

T9 September2001 Plaintiff retainedDefendantsto renderbusinessmanagement,

accountingand
20 investmentadvisoryservicespursuantto an oral agreement(the "Agreement'o).Pursuantto the

2l Agreement,Defendantsagreedto take all necessaryand appropriatemeasuresto properly and

'rt professionallymanagePlaintiff's businessand financial affairs, and represented,amongother

23 things, that Defendantscould and would competentlyand properly:

24 (a) Maintain accuratebooksof account,includingcashreceipts,cashdisbursements

25 andgeneralledgersandjournals;

26 (b) Compile statements

of assetsand liabilities and relatedstatements
of receiptsand
an quarterlyon a cashbasis;
disbursements
28 (c) Timely and accuratelyprepareand file incometax returns;

K:\153l'76\PLE\COMPLAINT 101309.wpd
COMPLAINT
 1 (d) Prepareand file payroll tax, salesand other local tax returns;
, (e) Reviewinsurancecoverageandconsultwith insuranceadvisorsno lessthansemi-
3 annuallyto ensureadequatecovefage;
4 (0 Provideinvestmentadviceand analyzepotentialinvestments,includingthe risks
S involved;
6 (g) Provide financial planningadviceand servicesand recommendand overseeall
7 investments:
8 (h) Provideoveralltax planningservicesin connection
with all personalandbusiness
9 activities;
10 (i) Provideestateplanningconsultation;and
11 O Provideconsultation
regardingpensionandretirementplans.
T2 L4. In exchangefor renderingbusinessmanagement,accountingand investment
t 3 advisoryservices,thepartiesagreedthatDefendantswould receivefive percent(5%) of all gross
r4 incomereceivedby Plaintiff, with an agreedupon annualcap.
15

t6 THE WRONGFUL CONDUCT

17 15. In or aroundSeptember2008, Plaintiff retaineda new businessmanagement
and
18 accountancy
firm. Shortlythereafterit wasdiscoveredthatDefendants'hadengagedin numerous
t9 grosslynegligentactsandomissionsandotherwisefailedto competentlyandprofessionallyrender

20 serviceson behalfof Plaintiff. Amongotherthings,Defendantsengagedin the following grossly

2l negligentconduct:
t, (a) Failedto timely pay taxeson behalfof Plaintiff for severalyears,and concealed
23 thesefacts from Plaintiff, resulting in Plaintiff owing back taxes, interestand
24 penaltiesof million of dollars;
25 (b) ConcealingPlaintiff's truefinancialconditionprior to investments
andassetsbeing
26 acquiredby Plaintiff;
27 (c) Recommendingand facilitating Plaintiff's investmentin exceedinglyrisky and
?.8 speculativereal estatetransactionswithout disclosingthe risks;

K:\I 531-76\PLE\COMPLAINT
10t309.wod
COMPLAINT
 I (d) that Plaintiff executepersonalguarantees
Recommending on bank loanswithout
, advisingPlaintiff of the associated
risk;

J (e) Failingto diversifyPlaintiff'sinvestment

holdings;

4 (0 Failing to obtainadequateinsurancecoveragefor real estateand otherholdings;

5 (g) Over-extendingPlaintiff's linesof creditwith banksandfinancialinstitutionsasa

6 resultof failing to discloseto Plaintiffhis true financialcondition;

7 (h) Failing to keepPlaintiff andhis representatives

informedof materialinformation

I regardingPlaintiff'sfinancesandbusiness
affairs;

I (i) Continuingto misrepresentand concealCage'sfinancialconditionso that Levin

10 couldmakemillionsof dollarsin fees;

11 O Actively concealingfrom Plaintiff andhis representatives

materialfactsregarding

t2 Plaintiff s financesand businessaffairs;

13 (k) GrosslyoverchargingPlaintiff feesfor servicesrenderedby Defendants;

t4 0) Failing to manage,controland administerPlaintiff's accounting,tax and other

15 financial affairs with requisiteprofessionalcompetenceand skill, all of which

t6 resultedin substantialfinanciallossesto Plaintiff; and

L7 (m) Failing to placePlaintiff's interestsbeforeDefendants'own economicinterests,in

18 managing,directingand/orcontrollingtransactionsmadeon behalfof Plaintiff.

t9 16. Defendants'actionsdemonstrate
that they lackedcompetence
andexpertisein the

20 area of businessmanagement,accountingand investmentadvisory services,and that their

2l represeffationof Plaintiff was grossly negligent. Defendants'actions also evidencetheir
,) purposefuldisregardfor Plaintiff's businessand financialwell being.

23
24 FIRST CAUSE OF ACTION
,< PROFESSIONAL NEGLIGENCE

26 (AgainstAll Defendantsand DOES 1 through50)

27 l7. Plaintiffrepeats,reallegesandincorporates
by referenceParagraphs
I through16,
28 inclusive,as thoughfully set forth herein.

K:\l 53 1-7(r\PLE\COMPLAINT l0l309.wpd

COMPLAINT
 1 18. agreedto, anddid, actasPlaintiff'sbusiness
Defendants managers,
accountants
and
,. investmentadvisorsduringtheperiodSeptember
2001to September
2008,andcontinuedto render

3 servicesthroughJuly, 2009.
4 19. As Plaintiff'sbusiness accountants
managers, advisors,Defendants
andinvestment

owedPlaintiffdutiesof professionalcareto usesuchskill, careanddiligenceas otherbusiness

investmentadvisorscommonlypossess
6 managers,accountants andexerciseon behalfof high net

7 worth individualsundersimilar circumstances

in similar communities.

8 20. Despitethe dutiesof professionalcareowedto Plaintiff, Plaintiff is informedand

9 believesand basedthereonallegesthat Defendants,andeachof them, failed to usesuchdegree

1,0 of professionalcare, competenceand skill commonlypossessedand exercisedby business
1 1 managers, accountantsand investment advisors under similar circumstancesin similar
t2 communities.Defendantsnegligently,carelesslyandrecklesslyrenderedthe servicesfor which
13 they wereretainedby, amongotherthings: recommending
andfacilitatingPlaintiff's investment

L4 in risky and highly speculativereal estateinvestments;concealingPlaintiff's true financial

15 condition; failing to advisePlaintiff of the risks of investingin real estate;failing to diversify
L6 Plaintiff's investmentportfolio; failing to timely pay all taxeson behalf of Plaintiff; failing to
L 7 obtainproperand adequateinsuranceon behalfof Plaintiff andin connectionwith the real estate
18 investmentsmadeby Defendants;failing to advisePlaintiff of theexistenceof personalguarantees
t9 which Defendantsrecommendedand facilitated Plaintiff entering into; misrepresentingand
20 concealingthe financialstatusof Plaintiff; andfailing to professionallyandcompetentlyevaluate
2l and managePlaintiff's investments.
t, 21. [n thatDefendantsweresolelyandexclusivelyin possession
of Plaintiff's financial

23 booksandrecords,Plaintiffdid not discover,andcouldnot havereasonablydiscoveredthe facts

24 underlyingDefendants'mismanagement
andgrossnegligenceuntil 2009, afterPlaintiff retained

25 a new businessmanagement
firm.

26 22. grossnegligence,
As a directandproximateresultof theaforesaid mismanagement,
27 andprofessionalnegligence,Plaintiff hasbeendamagedin an amountthat hasnot yet beenfully
28 ascertainedbutwhichisbelievedtobeinexcessofTwentyMillionDollars($20,000,000).
When

K:\153l -76\PLE\CoMPLAINT
l0l309.wpd
COMPLAINT
 I Plaintiff hasascertained
the full amountof the damasessuffered.he will seekleaveof the Court
t to amendthis Complaintaccordingly.

4 SECOND CAUSE OF ACTION

BREACH OF FIDUCIARY DUTY

6 (AgainstAll Defendantsand DOES 1 through50)

7 23. Plaintiffrepeats, andincorporates

realleges by reference
Paragraphs
lthrough16,

8 and 18 through21, inclusive,asthoughfully setforth herein.

9 24. At all relevanttimesherein,by virtue of theprofessionalrelationshipsthat existed

10 betweenPlaintiff and Defendants,wherein Defendantsactedas Plaintiff's businessmanagers,

1 1 accountantsand investmentadvisorsfrom 2001 until 2008, where Plaintiff placed trust and

L2 confidencein the fidelity and integrity of Defendantsand entrustedDefendantswith Plaintiff's

13 financialwell being,andwhereDefendants
assumed
controloverPlaintiff'sbusinessandfinancial
14 affairs andproperty, a fiduciaryduty existedat all timeshereinmentionedbetweenPlaintiff and
1 5 Defendants.

16 25. This fiduciary duty required Defendantsto treat Plaintiff with completefairness
r7 andthe highestduty of loyalty, andto discloseto Plaintiff all materialfactsconcerningPlaintiff's

I.8 businessand financialaffairs, the servicesrenderedby Defendantsin connectiontherewith,and

L9 the feeschargedby Defendantsfor suchservices.This fiduciaryduty furtherrequiredDefendants
20 to truthfuUyandcompletelydiscloseall relevantinformationto Plaintiff andnot misrepresentor
21. concealanyfactsin connectionwith anyof the aforementioned
servicesthatDefendantsprovided
,, to Plaintiff. Furthermore,Defendantseachowed Plaintiffs a duty to refrain from conducting

23 themselyesin anymannerthatwas in conflict with thebestinterestsof the Plaintiff. Defendants,

u andeachof them,furtherowedPlaintiff a fiduciaryduty of duediligencethatrequiredDefendants
t< to veriff the legitimacy and soundnessof the business,accounting,tax and/or financial and

26 investmentadvicewhich they offeredto Plaintiff.

)n 26. In violationof therelationshipof trust, confidenceandloyaltybetweenPlaintiff and
28 Defendants,Defendantsbreachedtheir fiduciary duties to Plaintiff by, among other things,

K :\153l -76\PLE\COMPLAINT l0l 309.wpd

COMPLAINT
 I misrepresentingfacts in connectionwith Plaintiff's financesand businessaffairs, concealing
) materialfactsconcerningthe true financialconditionof Plaintiff, and failing to disclosethe tax

3 liabilitiesandtrue financialconclition
to Plaintiffwhenhe acquiredassetsand investments,
and
4 continuingto misrepresentand concealCage's financial conditionso that Levin could make

millionsof dollarsin fees.

6 27. As a directandproximateresultof theaforesaidgrossnegligence,mismanagemenr,

7 andbreachof fiduciaryduty, Plaintiff hasbeendamagedin an amountthat hasnot yet beenfully

8 ascertained
but whichis believedto bein excessof TwentyMillion Dollars($20,000,000).when
9 Plaintiff hasascertained
the full amountof the damagessuffered,he will seekleaveof the Court
10 to amendthis Complaintaccordingly.
11 28' In doingthethingshereinalleged,Defendantsactedwith malice,oppressionand/or
t2 fraudpursuantto california code of civil Proceduresection3294(c),andactedwillfully andwith
13 theintentto causeinjury to Plaintiff. As such,Defendants,andeachof them,arethereforeguilty

t4 of malice, oppressionand/or fraud and Plaintiff is entitled to recoveran award of exemplarv

L5 and/orpunitive damages.
t6

t7 THIRD CAUSE OF ACTION

18 CONSTRUCTIVE FRAUD
t9 (AgainstAll Defendantsand DOES 1 through50)
20 29. Plaintiffrepeats,reallegesandincorporatesby referenceParagraphs1 through16,
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 Defendantsto Plaintiffs as allegedhereinabove,Defendantshaveengagedin constructivefraud
24 pursuantto California Civil CodeSectionL573and other applicableCalifornialaw.
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 misrepresentingfacts in connectionwith Plaintiff's financesand businessaffairs, concealing
28 materialfactsconcerningthe true financialconditionof Plaintiff, and failing to discloserhetax

K:\ I 53 l-76\PLE\COMPLAINT l0l309.wod

COMPLAINT
 I liabilities and true financial conditionto Plaintiff when he acquiredassetsand investmentsand
1 continuingto misrepresentand concealCage's financial condition so that Levin could make

3 millions of dollarsin fees;their lack of expertisein the areaof businessmanagement,

accounting
4 andinvestmentadvisoryservices;mismanagement
of Plaintiff'sfinancesandinvestments;
therisks
5 involved in the investmentsrecommendedand facilitatedby Defendants,incluclingthe risks

6 associated
with Cage'spersonalguarantyof loans;over-extension
of Plaintiff'slinesof credit;
7 failure to obtainadequateinsurancecoverage;andthe failureto timely pay all taxeswhendue,as

8 set forth in detail above.

I 32. Defendantsconcealedthe truth behindthesematterswith the intentto deceiveand

10 defraudPlaintiff, and to preventPlaintiff from learningthe true facts.

t1 33' Plaintiff is further informed and believesand thereonallegesthat Defendants

t2 concealedthe truth abouttheir lack of cornpetence,
skill and oversightof Plaintiff's investments
13 and assets,in order to concealyears of mismanagement,
fraud, negligence,waste and
t4 malfeasance,and to preventPlaintiff from learningthe true facts. On informationand belief,
15 Defendantsconspiredto concealthetruth aboutPlaintiff's financesin an effort to continueto sain
t 6 financialbenefitsby way of their ongoingwork.
t7 34. As a directandproximateresultof theaforesaid
grossnegligence,
mismanagement,
1 8 and constructivefraud, Plaintiff has beendamagedin an amountthat has not yet been fully
1 9 ascertainedbutwhichisbelievedtobeinexcessofrwentyMillionDollars($20,000,000).
when
20 Plaintiff hasascertainedthe full amountof the damagessuffered,he will seekleaveof the Court
2l to amendthis Complaintaccordingly.
1t 35. In doingthethingshereinalleged,Defendantsactedwith malice,oppressionand/or
23 fraudpursuantto CaliforniaCodeof Civil ProcedureSection3294(c),andactedwillfully andwith
24 the intentto causeinjury to Plaintiff. As such,Defendants,andeachof them,arethereforeguilty
25 of malice, oppressionand/or fraud and Plaintiff is entitledro recoveran award of exemplary
26 and/or punitivedamages.
27
28

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COMPLAINT
 1 FOURTH CAUSE OF ACTION
, CONCEALMENT
3 (AgainstAll Defendantsand DOES 1 through50)

4 36. Plaintiffrepeats,
realleges
andincorporates
by reference
Paragraphs
1 through16,
5 18 through2t , 24 through 26, and30 through33, inclusive,as thoughfully set forth herein.

6 37, Plaintiff is informedandbelievesandthereon allegesthatDefendantsintentionally

7 concealedfrom Plaintiff the highly risky and speculativenatureof the real estateinvestments

8 which Defendantsmadeon behalfof Plaintiff, andfurther concealedthat, with respectto several

9 of the real estateinvestments,Plaintiff had personally guaranteedthe loans supportingthe

10 investments. In addition, as statedabove, Defendantsconcealedmaterial facts concerning

1l Plaintiff's true financialconditionincludingPlaintiff's tax liabilitieswhenhe acquiredassetsand

t2 investmentsso that Levin couldmakemillions of dollarsin fees. Had Plaintiff beeninformedof

13 the risk inherentin severalof the real.estateinvestmentsmade by Defendantson behalf of
L4 Plaintiff, or thatPlaintiff waspersonallyguaranteeing
thepaymentof theloansin connectionwith
15 thosereal estateinvestments,or of Plaintiffstrue financialconditionwhenthe investmentswere
t 6 made, Plaintiff would not have agreedto or approvedthe investmentsmade by Defendants.
l7 Defendantsfurther intentionallyconcealedfrom Plaintiff the true financialconclitionto Plaintiff

18 prior to Plaintiff acquiring investmentsand assets. Had Plaintiff been informed of his true
t 9 financial condition, he would have not have acquired significant assetsand investments.
20 38. Throughouttheir many yearsof representingPlaintiff, Defendantsintentionally
2L failedto keepPlaintiff andhis representatives
informedof Plaintiff's financialandbusinessmatters
tt and intentionallyconcealedsuchinformationin order to preventPlaintiff from discoveringtheir

23 grossnegligenceand mismanagement
of Plaintiff's financialaffairs.
24 39. Becauseof Defendants'intentionalconcealmentof suchmatters,Plaintiff did not
25 know of Defendants'actsof intentionalconcealment
until in or after September2008, or havea
26 reasonable
opportunityto discoversuchactsof concealment
by natureof Defendants'
controlover
27 Plaintiff's financialrecordsand information,and concealmentof samefrom Plaintiff.
28

K:\1531-76\PLE\COMPLAINT l0l309.wod ll
COMPLAINT
 I 44. Plaintiff trustedDefendantsthroughthemanyyearsof Defendants'representation
) asPlaintiff's businessmanagers,accountants
andinvestmentadvisors.Basedon thatrelationship

3 of trust and confidence,Plaintiff reasonablyrelied on Defendants'deception.Namely, Plaintiff

4 permittedDefendantsto continueto serve as Plaintiff's businessmanagers,accountantsand

5 investmentadvisorsfrom approximatelySeptember 2008. HadPlaintiff known

2001to September

concealedfrom him,
andwrongfulconduct,which Defendants
6 of Defendants'actsof concealment

7 Plaintiff would not have continuedto retain Defendantsas Plaintiff's businessmanagers,

and investmentadvisors,but would haveterminatedDefendantsimmediately.

8 accountants

I 41. grossnegligence,
As a directandproximateresultof theaforesaid mismanagement,

10 andconcealment,Plaintiff hasbeendamagedin an amountthat hasnot yet beenfully ascertained

l1 but which is believedto be in excessof TwentyMillion Dollars($20,000,000).WhenPlaintiff

t2 the full amountof thedamagessuffered,he will seekleaveof the Court to amend
hasascertained

L3 this Complaintaccordingly.

L4 42. actedwith malice,oppressionand/or

In doingthethingshereinalleged,Defendants

15 fraudpursuantto CaliforniaCodeof Civil ProcedureSection3294(c';,andactedwillfully andwith

1.6 the intentto causeinjury to Plaintiff. As such,Defendants,andeachof them,arethereforeguilty

17 of malice, oppressionandior fraud and Plaintiff is entitledto recoveran award of exemplary

18 and/or punitive damages.

r9
20 FIFTH CAUSE OF ACTION

2l NEGLIGENT MISREPRESENTATION

22 (AgainstAil Defendantsand DOES 1 through50)

23 43. Plaintiffrepeats, by reference

andincorporates
realleges 1 through16,
Paragraphs

24 18 through 21, 24 through 26, 3A through33, and 37 through40, inclusive,as thoughfully set
25 forth herein.
26 44. describedabove(including
At the time Defendantsmadethe falserepresentations
andskill, Defendants'agreementto professionally
27 thosewith respectto Defendants'competence
andtimelypay taxeson behalfof Cagewhendue),
28 managePlaintiff'sfinancesandinvestments

K:\153l-76\PI.E\COMPLAINT 101309.wpd L2
COMPI.{iNT
 I Defendantshadno reasonable
basisfor believingthemto be true, and intendedthat Plaintiff rely
7 on their misrepresentations.

3 45. Plaintiff trustedDefendantsthroughthe manyyearsof Defendants'representation

4 asPlaintiff's businessmanagers,accountants
andinvestmentadvisors.Basedon that relationship
5 of trust and confidence,Plaintiffjustifiablyrelied on Defendants'misrepresentations,
and as a
6 result, among other things, Plaintiff entrustedDefendantsto control, manage,monitor and

7 safeguardPlaintiff's financesand assets,and financially compensatedDefendantsfor their

8 services,all to the financialdetrimentof Plaintiff.

9 46. Had Plaintiff known the truth, Plaintiff would not haveso acted.
10 47. As a directandproximateresultof theaforesaidgrossnegligence,
mismanagement,
1 1 and negligentmisrepresentation,
Plaintiff hasbeendamagedin an amountthat hasnot yet been
t2 fully ascertained
but which is believedto be in excessof TwentyMillion Dollars($20,000,000).
13 WhenPlaintiff hasascertainedthe full amountof the damagessuffered,he will seekleaveof the
l4 Court to amendthis Complaintaccordingly.
15

16 SIXTH CAUSE OF ACTION

L7 BREACH OF CONTRACT
18 (AgainstAll Defendantsand DOES 1 through50)

t9 48. Plaintiffrepeats, andincorporates

realleges Paragraphs
by reference I through16,

2A 18 through21,24 through26,30 through33, and37 through40, inclusive,as thoughfully set

2L forth herein.
).r. 49. Defendantsmateriallybreachedtheir dutiesandobligationsto Plaintiff pursuantto

23 the Agreement,in one or moreof the following respectsallegedabove: misrepresenting

factsin

24 connectionwith Plaintiff's financesandbusinessaffairs;concealingmaterialfactsconcerningthe

25 true financial condition of Plaintiff and failing to disclosethe tax liabilities and true financial
26 conditionto Plaintiff whenhe acquiredassetsandinvestmentsandcontinuingto misrepresentand
27 concealCage'sfinancialconditionso that Levin couldmakemillions of dollarsin fees;failing to
and facilitatingPlaintiff's
28 advisePlaintiff of the risk of investingin real estate;recommending

K:\l 53 1-76\PLE\COMPLAINT I 0l 309.wpd t3

COMPLAINT
 I investmentin risky andhighly speculativereal estateinvestments;failing to diversify Plaintiff's
t investmentportfolio; failing to timely paytaxeson behalfof Plaintiff; failing to obtainproperand

3 adequateinsuranceon behalfof Plaintiff andin connectionwith the real estateinvestmentsmade

4 by Defendants;failing to advisePlaintiff of theexistenceandthefactof personalguarantees
which

5 Defendants andfacilitatedPlaintiff enteringinto; misrepresenting

recommended thefinancialstatus

6 of Plaintiff; and failing to professionallyand competentlyvaluate and managePlaintiff's

7 investments.
8 50. Plaintiffdid notdiscover,andcouldnotin theexercise
of reasonable
diligencehave

9 discovered,the factsunderlyingDefendants' of contractuntil in andduringSeptember

breaches
10 2008,andthereafter.
11 51. Plaintiff has performedall duties and obligationson his part requiredto be

12 performedunderthe Agreementwith Defendants,exceptto the extentthat suchperformancewas

13 waived, excusedor preventedby reasonof the actsand omissionsof Defendants.
14 52. As a direct and proximateresult of the aforesaidmaterial breachof contract,
15 Plaintiff has beendamagedin an amountthat has not yet been fully ascertainedbut which is
t6 believedto be in excessof TwentyMillion Dollars($20,000,000).WhenPlaintiff hasascertained
t7 the full amountof the damagessuffered,he will seekleaveof the Court to amendthis Complaint
18 accordingly.
t9
20 SEVENTH CAUSE OF ACTION
2l ACCOI.INTING
22 (AgainstAll Defendantsand DOES 1 through50)

23 53. Plaintiffrepeats,reallegesandincorporatesby referenceParagraphs1 through16,

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,andeachof them,as Plaintiff's accountants,
27 businessmanagersand investmentadvisors,had and continueto have a fiduciary duty to and
28 relationshipwith Plaintiff, requiringDefendantsto act only in the bestinterestof Plaintiff, and

K:\1531-76\PLE\COMPLAINT l0l 309.wnd L4

COMPLAINT
 L to not engagein anyactsor omissionswhich wouldcausePlaintiff to sufferanyharmor damages.
J 55. As further allegedabove, during the period of time that Defendantsrendered

3 accountingand businessmanagementservicesto Plaintiffs, Defendantssolely controlledand

4 maintainedPlaintiff's financialbooksand records. Plaintiffs are unawareof the full amounts
5 Defendantspaid themselvesor otherwisemisappropriatedfrom Plaintiffs' accounts.

6 56. Accordingly, Plaintiff is entitledto a full andcompleteaccountingto all amounts

7 Defendantspaid to themselves,misappropriated
from Plaintiffs' accounts,secreted,misplaced,

I or otherwiseusedor paid withoutPlaintiff's informedconsent.Wherefore,the fulI amountowed

9 andbecomingdue to Plaintiff canonly be determinedpursuantto a full andaccurateaccounting

10 of all booksand recordsof Defendants.

11

t2 PRAYER
l3 WHEREFORE,Plaintiffpraysfor judgmentagainstDefendants,
and eachof them,as
t4 follows:

15 A$ TO THE TIRST CAUSE OF ACTIOI\T

16 t. For generalandspecialdamagesin anamountnot lessthanTwentyMillion Dollars

17 ($20,000,000), with proof at trial, togetherwith interestthereonat the legalrate;

in accordance

18 AS TO THE SECOND CAUSE OF ACTION:

t9 2. For generalandspecialdamagesin anamountnot lessthanTwentyMillion Dollars

20 ($20,000,000),in accordancewith proof at trial, togetherwith interestthereonat the legalrate;

2L 3. For punitiveor exemplary pursuantto CaliforniaCodeof Civil Procedure

damages
)) Section3294(c);

23 AS TO THE THIRD CAUSE OF ACTIOII

24 4. For generalandspecialdarnages
in an amountnot lessthanTwentyMillion Dollars
,.4 ($20,000,000),
in accordance
with proof at trial, togetherwith interestthereonat the legalrate;

26 5. For punitiveor exemplary pursuantto CaliforniaCodeof Civil Procedure

damages
27 Section3294(c);
28

Kr\1531-76\PLE\COMPLAINT l0l 309.wod 15

COMPLAINT
 1 AS TO THE FOII-RTH CAUSE Qr ACTIOI\I
n 6. For generalandspecialdamages
in anamountnot lessthanTwentyMillion Dollars

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

4 7. pursuantto CaliforniaCodeof Civil Procedure
For punitiveor exemplarydamages

3 Section3294(c);

6 AS TO THE FIFTH CAUSE OF ACTION

7 8. For generalandspecialdamages
in anamountnot lessthanTwentyMillion Dollars

I ($20,000,000),in accordancewith proof at trial, togetherwith interestthereonat the legal rate;

I AS TO THE SIXTH CAUSE OF ACTION

10 L For generalandspecialdamages
in anamountnot lessthanTwentyMillion Dollars

1l ($20,000,000), with proof at trial, togetherwith interestthereonat the legalrate;

in accordance

t2 AS TO THE SEVEI.flTHCAUSE OF ACTIOI{

l3 10. For an order that eachof the Defendantsprovide to Plaintiff an accountingof all

14 amountsDefendantspaid to themselves,misappropriated,
secreted,misplacedor otherwiseused

1.5 or paid without Plaintiff's informedconsent;

L6 AS TO ALL CAUSES OF ACTION:
l7 11. For all costsof suit;

18 12. For pre-judgmentinterestat the maximumlegal rate;

19 13. For post-judgmentinterestat the maximumlegal rate;

2A 14. For suchother and further relief as deemedjust and proper.

2l
DATE: oetober
'/
12, z0og LAVELY & SINGER
,r. PROFESSIONALCORPORATION
MARTIN D, SINGER
23 BRIAN G. WOLF

24
25
26 Attorneysfor Pla

27
28

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COMPLAINT
 I REOUESTFORJI]RY TRIAL
)

3 Plaintiff herebydemandsa trial by jury.

4
,r/
tt-
3 DATE: October
r-l') ,2009
LAVELY & SINGER
PROFESSIONALCORPORA
6 MARTIN D. SINGER
BRIANG.
7 TODDS
8
9
Attornevsfor Plaintiff
L0
11
12
13
t4
15
16
t7
18
t9
20
2l
.r^,

?3
?"4
25
26
n
28

K:\l 53I -76\PLE\COMPLAINT

l0l309.wDd L7
COMPLAINT