blackhat 2010-5-23 larry gabriel complaint
TRANSCRIPT
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
1/80
2
4
5
6
8
9
70
i 1
~
13
14
1 s
16
17
18
19
Z o
a ~
22
23
24
? s
26
27
28
LARRY
W.
ABRIEL Bar No.
329
STEVEN
.
GUBNER Bar
No.
156593
COREY
. WEBER
Bar
No. 205912
EZRA
BRUTZKUS
GUBNERLLP
21654 Oxnard
S t r e e t ,
S u i t e 500
'Woodland
i l l s ,
CA 1 3 67
Telephone:
(&
8}
8 27-9000
F a c s i m i l e : (818) 27
-9099
Email: l g a b r i e l
ebg-
law.com
sgubner ebg-law.com
cweber ebg-
law.com
A t t o r n e y s .
o r
P l a i n t i f f s
Hal ~ a t e r s k y , Barry Lavine ,
a s t h e
i n d i v i d u a l
t r u s t e e of
h e Am e nde d
and
R e s t a t e d
Hal
a t e r s k ~ ~ y
I r r e v o c a b l e
L i f e I n s u r a n c e T r u s t ,
H i l l a r y A.
a t e r s k y ,
Andrew
a t e r s k y ,
Robin
a t e r s k y ,
J e f f r e y Katersky
and Dylan
Zelman
~ . -
-
-
- ~ ~ i
~
~
~ ~
C E t d T R A L l S R i C I O F
G A L f F O R i d i A
UNITED
STATES
DISTRICTCOURT
CENTRALDISTRICT
OF
;4LIFORNIA
HAL ~ATERSKY, ARRY
AVI~~TE,
AS
THE NDIVIDUALTRUSTEE
4F
THEAMENDED
AND
RESTATED
HALKATERSK~
F~:REVOCABLE
LIFE
INSURI~.NCE TRUST
DTD
8J29/2008,HILLARY .
KATERSKY,
ANDREW
KATERSKY,
OBIN
KATERSKY, EFFREYI{ATERSKY
ANDDYLAN
ZELMAN
P l a i n t i f f s ,
v .
IMPERIAL
PREMIUM
FINANCE,
L L C
IMPERIAL IFE
SETTLEMENTS, LC;
BANK
QF
UTAH, nd THELINCOLN
NATIONAL IFE INSURANCE
COMPANY,
Defendants.
~.,~3~L
itil~.
COMPLAINTFOR;
1 .
DECLARATC?RY
E LI EF;
2 .
INJUTICTIVE RELIEF;
3 . FRAUD;
4.
BREACH 4FCONTRACT;
5 .
INTENTIONAL NFLICTION OF
EMOTIONAL
ISTRESS;
6.
NEGLIGENT
NFLICTION
OF
EM(JTIONAL
?ISTRESS;
7 . UNFAIR
BUSYNESS
PRACTICES;
8 .
ELDER
ABUSE
r
Judge:
Discover~
C u t o f f :
Motion C u t o f f :
T r i a l Date:
1
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 1 of 80 Page ID #:3
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
2/80
a
3
4
s
6
s
9
i o
t i
12
l3
74
IS
1 ~
17
1$
19
2 0
21
22
23
24
25
a ~
27
2 s
P l a i n t i f f s ,
Hai
K a t e r s k y
K a t e r s k y
,
Barry
Lavine Lavine ) , s o l e l y
i n
h i s
c a p a c i t y
a s t h e
i n d i v i d u a l
t r u s t e e of t h e Amended and
R e s t a t e d
Hal
K a t e r s k y
I r r e v o c a b l e L i f e
I n s u r a n c e T r u s t and
H i l l a r y
A. K a t e r s k y ,
Andrew
K a f i e r s k y ,
Rabin
K a t e r s k y ,
J e f f r e y
K a t e r s l ~ y
and Dylan Zelman t h e T r u s t
B e n e f i c i a r i e s
)
( c o l l e c t i v e l y , t h e I ~ a t e r s k y
P a r t i e s
) ,
b y and h r o u g h t h e i r
a t t o r n e y s ,
h e r e b y f i l e s
t h i s
Complaint
a g a i n s t
D e f e n d a n t s I m p e r i a l Premium
F i n a n c e , L L C ,
I m p e r i a l L i f e
S e t t l e m e n t s ,
LLC,
ank
of
Utah and
The L i n c o l n
N a t i o n a l L i f e I n s u r a n c e
Com pa n y,
a l l e g e
a s f o l l o w s :
1 .
This
i s an a c t i o n brought f o r
D e c l a r a t o r y Judgment
under
28
U.S.C.
2201
and
Rule 57of h e F e d e r a l
Rules of i v i l
Procedure
and o r
o t h e r
r e l i e f i n
which
t h e
~atersky
P a r t i e s
seek
a d e t e r m i n a t i o n
a s
. t o
t h e i r
r i g h t s and
i n t e r e s t s i n a $ 10
m i l l i o n
l i f e
i n s u r a n c e
p o l i c y ,
p o l i c y
no.
JJ7031503 ( t h e
Policy
}
i s s u e d
b y Th e
Lincoln
N a t i o n a l L i f e
I n s u r a n c e
C o m p a n y Lincoln ) . Th e
o l i c y
was purchased b y
t h e
Hal ~ a t e r s k y
I r r e v o c a b l e
L i f e I n s u r a n c e Trust t h e
Katersky T r u s t )
o
fund
t h e
e s t a t e
planning
needs
of
Katersky, and
t h e r e a f t e r
f i n a n c e d
b y I m p e r i a l
P remium
Finance,LLC
IPF
) . I ~ a t e r s k y
i s
69
e a r s o l d ,
has
an
n o p e r a b l e
b r a i n
tumor and
i s
g r a v e l y
i l l TPF
and I m p e r i a l
L i f e S e t t l e m e n t s ,
LLC, I L S)
ontend t h a t
they
a r e
t h e
owners
of
h e P o l i c y and or have
a s s e r t e d
dominion an d
c o n t r o l over
h e
P o l i c y
so a s
t o d e p r i v e t h e
Katersky
P a r t i e s
of h e ownership
and b e n e f i t s
of
h e P o l i c y . Th e
Katersky
P a r t i e s ,
t o
w i t :
t h e i n s u r e d , Katersky, h e
i n d i v i d u a l t r u s t e e of h e
T r u s t
t h a t
o w n s h e
P o l i c y ,
Lavine,
and
h e
T r u s t
B e n e f i c i a r i e s , contend t h a t t h e Katersky
T r u s t
o w n s
t h e
P o l i c y , and t h a t IPF's
i n t e r e s t i s
. l i m i t e d
t o
t h e amou nt
owing
f o r
t h e
premium
f i n a n c i n g
provided
b y IPF,
and
t h a t
I L S
has
n o
i n t e r es t i n t h e
P o l i c y
whatsoever.
T h e Katersky
P a r t i e s
f u r t h e r contend t h a t
IPF's
conduct
v i o l a t e s
t h e i r
r i g h t s
and
i n t e r e s t
i n
t h e
P o l i c y ,
and
t h a t
t h e i r
a s s e r t i o n of dominion an d c o n t r o l
over
t h e
Policy
and
t h e Katersky
T r u s t
c o n s t i t u t e s a
f r a u d , u n f a i r b u s i n e s s p r a c t i c e and
e l d e r abuse,
a m o n g t h e r c l a i m s . There
s ,
t h e r e f o r e ,
an a c t u a l c o n t r o v e r s y
of
2
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 2 of 80 Page ID #:4
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
3/80
j u s t i c i a b l e
n a t u r e
c o n c e r n i n g t h e
r i g h t s
and
o b l i g a t i o n s
of h e
p a r t i e s i n and
t o t h e
2 P o l i c y
i s s u e d t o
t h e
K a t e r s l y
P a r t i e s .
3
P A ] [ ~ ' I ' ~ E S
4
2 .
P l a i n t i f f Hal
Katersky
i s
a
i t i z e n of
h e
S t a t e of
a l i f o r n i a r e s i d i n g
i n t h e
5
Caunty
of
e n t u r a , S t a t e of
a l i f o r n i a .
6
3 .
P l a i n t i f f
Barry
Lavine
i s
a
i t i z e n of h e
S t a t e of
a l i f o r n i a
r e s i d i n g
i n
t h e
~
County
of
L o s
Angeles,
S t a t e of
C a l i f o r n i a .
Mr.
Lavine
i s
a c t i n g s o l e l y
i n
h i s
8
c a p a c i t y a s
t h e
i n d i v i d u a l
t r u s t e e
of t h e
A m e n d e d
and R e s t a t e d
Hal K a t e r s k y
9
I r r e v o c a b l e
L i f e
I n s u r a n c e
T r u s t .
l 0
4 .
P l a i n t i f f
H i l l a r y A .
Katersky
i s
a
c i t i z e n
of t h e S t a t e
of
C a l i f o r n i a
l
r e s i d i n g
i n
t h e
County
of
e n t u r a , S t a t e
of
a l i f o r n i a .
1 2
5 .
P l a i n t i f f
A n d r e w
Katersky i s a
c i t i z e n
o f ' t h e
S t a t e
of
a l i f o r n i a r e s i d i n g
1 3
i n
t h e
County
of
os
Angeles, t a t e
of
a l i f o r n i a .
1 4
6 .
P l a i n t i f f
Robin Katersky
i s
a
United
S t a t e s c i t i z e n
and
a
c i t i z e n
of
i s
A u s t r a l i a ,
c u r r e n t l y
r e s i d i n g i n
Tasmania,
u s t r a l i a .
l
~
7 .
P l a i n t i f f
J e f f r e y
Katersky
i s
a
i t i z e n of
h e
S t a t e
of
a l i f o r n i a r e s i d i n g
i n
i ~
t h e County
of
e n t u r a ,
S t a t e
of
a l i f o r n i a .
j 8
.
P l a i n t i f f
Dylan
Zelman s
c i t i z e n
of
h e
S t a t e of
a l i f o r n i a ,
r e s i d i n g i n
t h e
19
County of
entura,
t a t e
of
a l i f o r n i a .
Z o
9.
Defendant
I m p e r i a l
Premium
Finance,
LLC
IPF
}
i s a
c i t i z e n
of
~
Delaware,
being
o r g a n i z e d
and e x i s t i n g
under t h e
laws
of
h e S t a t e of
Delaware,
i t h
2 2
i t s
p r i n c i p a l
o f f i c e s i n
B o c a R a t t a n ,
F l o r i d a .
2 3
1 0 .
Defendant
I m p e r i a l L i f e
S e t t l e m e n t s ,
LLC IL S)
s a
c i t i z e n of
2 4
Delaware,
being
o r g a n i z e d and
e x i s t i n g under t h e
laws of
h e
S t a t e of
Delaware
w i t h
2 5
i t s
p r i n c i p a l
o f f i c e s i n
B o c a a t t a n ,
F l o r i d a .
2 6
1 1 .
Defendant B a n k
of
U t ah i s a
c i t i z e n
of
h e
s t a t e
of Utah
and
i s a
U t a h
2 7 s t a t e
c h a r t e r e d
commercial bank with
i t s
p r i n c i p a l
p l a c e
of u s i n e s s i n
Og d e n ,
Utah.
2 8
B a n k of
tah
i s t h e
p u r p o r t e d
c o r p o r a t e
t r u s t e e of h e Hal
K at e r s k y
T r u s t .
3
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 3 of 80 Page ID #:5
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
4/80
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
5/80
a
3
4
s
6
s
9
l a
12
13
14
i s
16
t ~
i s
19
20
21
a 2
23
24
2 s
26'
a ~
2 s
two
term
i f e
p o l i c i e s of 1
m i l l i o n
e a c h . Those
p o l i c i e s
were
s s u e d by M e t r a p ~ o l i t a n
and
John Hancock, which
o l i c i e s
a r e s t i l l
i n
f o r c e and
e f f e c t .
1 7 .
I n
t h e
f i r s t
q u a r t e r
2008,
Cohen
m a d e i n q u i r y
t o
a p p r o x i m a t e l y 10 l i f e
i n s u r a n c e companies,
a s
t o
t h e i r
w i l l i n g n e s s t o i s s u e
a p o l i c y i n s u r i n g
K a t e r s k y
f o r
$10 m i l l i o n i n
c o v e r a g e .
Although
m u l t i p l e c a r r i e r s
o f f e r e d c o v e r a g e ,
L i n c o l n was
s e l e c t e d a s
t h e
p r o v i d e r .
1 8 .
I n
A p r i l 2008, Cohen
m a d e a p p l i c a t i o n f o r i n s u r a n c e f o r
I ~ a t e r s k y
w i t h
L i n c o l n . T h e
p o l i c y
was o r i g i n a l l y
t o
be
i s s u e d t o P l a i n t i f f ,
H i l l a r y K . a t e r s k y ,
Hal
K a t e r s k y ' s w i f e , a s t h e
owner
and b e n e f i c i a r y of
h e
p o l i c y .
The a p p l i c a t i o n was
not
a c t e d upon and h e
p o l i c y was not s s u e d .
1 9 .
I n June
o r J u l y
204$, Cohen, on
b e h a l f of K a t e r s k y , s u b m i t t e d
a
n e w
a p p l i c a t i o n t o L i n c o l n
fora
$10
i l l i o n p o l i c y , The
o l i c y was o be s s u e d
t o
t h e
Hal
Katersky
I r r e v o c a b l e L i f e
I n s u r a n c e T r u s t .
As
p a r t
of
t h e e v a l u a t i o n p r o c e s s ,
~ , K a t e r s ~ y
was
s u b j e c t
t o
an
i n d e p e n d e n t medical
e x a m i n a t i o n . T h e m e d i c a l
examination
d e t e r m i n e d a t t h e time t h a t Katersky
was q u i t e h e a l t h y , and a t
67
y e a r s
' o l d was
g i v e n a l i f e expectancy
of 270
months by
t h e r a t i n g
a g e n c i e s. S h o r t l y
t h e r e a f t e r
t h e
r a t i n g
agency changed
t h e i r
e x p e c t a n c y
a n a l y s i s ,
r a i s i n g
K a t e r s k y ' s
l i f e
expectancy by 24 months,
20.
In
o r around J u l y
2408, Katersky formed t h e
Hal
K a t e r s k y
I r r e v o c a b l e
L i f e
I n s u r a n c e
T r u s t .
T h e L i n c o l n
0 i l l i o n P o l i c y
was s s u e d
t o
t h e T r u s t on o r
about
J u l y
18, 2008.
Katersky p a i d t h e f i r s t few
months
of
p r e m i u m on
t h e
p o l i c y
( a p p r o x i m a t e l y
$ 2 1 , 0 0 0 ) .
T h e i n d i v i d u a l
t r u s t e e
f o r
t h e
Katersky
T r u s t
i s
Barry
Lavine.
21. In
o r
around August, 200$,
~ a t e r s k y s u b m i t t e d
an a p p l i c a t i o n t o f i n a n c e
t h e
p r e m i u m f o r
t h e
P o l i c y
t o
IPF.
On r about September 21,
200$, t t h e r e q u e s t
of
IPF,
and
i n
o r d e r t o o b t a i n ancing
f o r
t h e premiums on h e P o l i c y , K a t e r s k y s i g n e d
an
A m e n d e d
and
R e s t a t e d
Hal
Katersky I r r e v o c a b l e L i f e I n s u r a n c e T r u s t
( t h e
Katersky T r u s t ) .
B a n k
of
tah
s
d e s i g n a t e d i n t h e
Katersky
T r u s t
a s
t h e
5
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 5 of 80 Page ID #:7
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
6/80
Independent P r o f e s s i o n a l
T r u s t e e
. In
accordance with t h e
terms
o f t h e Katersky
2 T r u s t ,
t h e
Independent
T r u s t e e
` s h a l l
not
have
a n y
o f h e d u t i e s
o r
o b l i g a t i o n s
o f
a n y
3 T r u s t e e
h e r e u n d e r .
A r u e
a nd c o r r e c t c o p y o f h e Katersky
Trust
i s
a t t a c h e d h e r e t o
4 as
E x h i b i t
1 .
5 22.
On r
about
September
26,
20Q8, h e Katersky Trust and IPF
e n t e r e d
i n t o
6 a
L o a n
A p p l i c a t i o n and Agr e e me n t d a t e d a s o f September 26,
2008
{ t h e
Lo a n
~
Agr e e me n t)
u r s u a n t t o
w h i c h
IPF
agreed t o l e n d ,
o n t h e terms
a n d c o n d i t i o n s a nd
8
s u b j e c t
t o t h e
l i m i t a t i o n s s e t
f o r t h i n
t h e
L o a n
Agreement,
funds
t o
pa y
p r e m i u m s
o n
g
t h e P o l i c y o w n e d
b y t h e Katersky T r u s t , t o g e t h e r
with
r e l a t e d
T r u s t e e
Expenses,
I n
~
o
a d d i t i o n
t o t h e
L o a n
Agreement, t h e p a r t i e s e n t e r e d i n t o s e v e r a l o t h e r t r a n s a c t i o n
do c uments,
i n c l u d i n g a
Promissory
Note
( t h e
Note
,
an Assignment o f L i f e
1 2
Insurance
Policy a s C o l l a t e r a l ( t h e Assignment
)
nd a P e r s o n a l
Guaranty
{ t h e
1 3
G u a r a nt y)
c o l l e c t i v e l y t h e
L o a n D o c u m e n t s
) . T h e loan w a s a l l
d u e
a nd p a y a b l e
14
o n
October 15, 2010.
i s
23.
Bet w e e n
October
200$ a n d
October
2014,
IPF
p a i d
t h e
p r e m i u m s
d u e
o n
l 6
the Policy f o r t h e
b e n e f i t o f h e
Katersky P a r t i e s .
T h e r e a f t e r , a
d i s p u t e
a r o s e between
1 7
the
K a te r sk y
P a r t i e s
a n d
IPF
regarding
t h e i r r i g h t s
a nd
o b l i g a t i o n s
unde r
t h e
terms
o f
r
8
the
L o a n D o c u m e n t s , with the
Katersky
P a r t i e s
contending
t h a t
IPF
v i o l a t e d
c e r t a i n
1 9
terms
a n d
c o n d i t i o n s o f the
L a w n
D o c u m e n t s ,
i n c l u d i n g
f a i l i n g t o
provide
t h e
2 a K a t e r s k y
P a r t i e s
w r t h
a
pa y- o f f a m o u n t
o f h e
Loan,
a l t h o u g h
d e m a n d
t h e r e f o r e
had
2 1
been
m a d e
b y t h e K a t e r s k y P a r t i e s .
2 2
24.
IPF r e f u s e d t o comply w i t h P l a i n t i f f s
dem a nd t o
p r o v i d e
t h e p a y -
O f f
2 3
i n f o r m a t i o n ,
i n s i s t i n g t h a t t
had
f o r e c l o s e d o n t h e P o l i c y a s c o l l a t e r a l
f o r t h e
p r e m i u m
2 4
f i n a n c i n g ,
and
f u r t h e r
i n s i s t i n g
t h a t
t
(IPF)
a s
h e o w n e r o f h e P o l i c y .
2 5
25. IPF c o n t i n u e d
t o
advance
f u n d s
o n a monthly
b a s i s
t o
keep
t h e P o l i c y i n
2 ~
f o r c e
and
e f f e c t .
T h e
payments
were
m a d e by IPF d i r e c t l y t o L i n c o l n .
By
u l y
2011
2 7
IPF
had advanced a p p r o x i m a t e l y
$ 4 2 5 , 0 0 0 . 0 0 , a s
p r e m i u m
f i n a n c e
l o a n s .
Z s
6
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 6 of 80 Page ID #:8
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
7/80
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
8/80
3
4
s
6
8
9
IQ
1 1
12
13
14
15
16
17
18
19
2d
21
22
23
24
25
26
2 7
28
among t h e r
s t a t e s , a s t o IPF's b u s i n e s s
p r a c t i c e s .
31.
Because of h e
government i n v e s t i g a t i o n ,
t h e
Katersky
P a r t i e s
became
concerned
t h a t
I P F
would
not
be
b l e
t o perform
t i m e l y
i t s
o b l i g a t i o n s
under h e
terms
of
h e J u l y
L e t t e r
Agreement,
s
p r e s e n t e d i n a e t t e r
t o
I P F
d a t e d Sep~emb~r
30, 01
1 ,
a copy of which s
a t t a c h e d
h e r e t o
a s E x h i b i t 2 .
32.
I P F responded by
r e p r e s e n t i n g
t h a t
i t was u l l y
c a p a b l e ,
w i l l i n g
and a b l e
t o
perform
t h e
terms of h e
J u l y L e t t e r
Agreement, n c l u d i n g
confirming
t h a t I P F had
t h e
wherewithal
t o make
l l premium
payments
r e q u i r e d
t o
be
made t o c o n t z n u e
t h e
P o l i c y
i n f u l l
f o r c e
and e f f e c t ; and f u r t h e r , I P F
would
c o n t i n u e
t o
p r o c e s s
t h e
change
of
ownership
a p p l i c a t i o n
with L i n c o l n ;
a n d ,
t h a t
a I I o t h e r terms and
c o n d i t i o n s of h e
J u l y L e t t e r
Agreement, would
remain
i n f a r c e
and e f f e c t . P l a i n t i f f s
a r e informed
and
I On
p r i l 30,
012,
h e
U.S.
t t o r n e y s
o f f i c e
i s s u e d t h e f o l l o w i n g p r e s s
r e l e a s e
r e g a r d i n g
a
e t t l e m e n t
r e a c h e d
w i t h
IPF:
I m p e r i a l Holdings,
I n c . ( I m p e r i a l ) ,
a
p u b l i c l y t r a d e d
s p e c i a l t y
f i n a n c e
c o r } ~ o r a t i o n
h e a d q u a r t e r e d
i n
Boca
Raton,
F l o r i d a , has e n t e r e d
r o t a
allon-
P r o s e c u t i o n
Agreement{NPA
i t h
t h e U n i t e d S t a t e s
A t t o r n e y s O f f i c e
f o r
t h e D i s t r i c t of New
Hampshire
t o
pay
an
m i l l i o n p e n a l t y t o r e s o l v e
f r a u d
a l l e g a t i o n s
r e l a t e d t o I m p e r i a l s
involvement
i n
making m i s r e p r e s e n t a t i o n s on
l i f e i n s u r a n c e
a p p l i c a t i o n s
i n
c o n n e c t i o n w i t h i t s premium
f i n a n c e
b u s i n e s s . .
.
According
t o
t h e
NPA,
rom December
2006
t h r o u g h January
2009,
as p a r t
of t s premium
f i n a n c e
b u s i n e s s ,
c e r t a i n
I m p e r i a l
employees, who were
l i c e n se d i n s u r a n c e a g e n t s ,
worked
w i t h
e x t e r n a l
g e n e r a l
a g e n t s and b r o k e r s ,
t o
o b t a i n
l i f e i n s u r a n c e p o l i c i e s
on
i n d i v i d u a l s
over
65
y e a r s
of
age
f o r
which
I m p e r i a l would o f f e r
premium f i n a n c e l o a n s .
These
m p e r i a l employees had
d i r e c t c o n t a c t
w i t h
t h e
p r o s p e c t i v e i n s u r e d s
and
worked
w i t h t h e i n s u r e d s and e x t e r n a l
g e n e r a l
a g e n t s and
b r o k e r s
t o
complete i f e
i n s u r a n c e
a p p l i c a t i o n s f o r submission t o v a r i o u s
l i f e
i n s u r a n c e
companies.
While
m p e r i a l
employees
were
engaged i n t h i s b u s i n e s s , many i f e i n s u r a n c e
a p p l i c a t i o n s r e q u i r e d
t h e
i n s u r e d
and t h e agent o d i s c l o s e
i n f o r m a t i o n
about whether premium
payments would be
funded
by
a
premium
f i n a n c e
l o a n .
An
n s u r e d
was
y p i c a l l y
r e q u i r e d t o
d i s c l o s e
i f he
or she i n t e n d e d
t o
seek
such
a l o a n t o pay
premiums and o f t e n t h e agent was l s o r e q u i r e d t o d i s c l o s e
i f he
a r she
was aware of
an
i n t e n t
by
h e i n s u r e d t o o b t a i n such
a
l o a n . W h en
a p p l i c a t i o n s
were
u b m i t t e d t o i n s u r a n c e companies
t h a t
l i k e l y would
not have i s s u e d a p o l i c y
i f
t h e a p p l i c a t i o n a c c u r a t e l y d e s c r i b e d
t h e
i n s u r e d s i n t e n t t o
o b t a i n
premium
f i n a n c i n g ,
t h e I m p e r i a l
employees,
who
were
a c t i n g
a s
l i f e
i n s u r a n c e
a g e n t s
on
t h e
p o l i c i e s , made and/ o r f a c i l i t a t e d
m i s r e p r e s e n t a t i o n s
an
t h e a p p l i c a t i o n s
t h a t
c o n c e a l e d t h e
i n s u r e d s
i n t e n t
t o seek a premium f i n a n c e l o a n
from m p e r i a l .
The
U n i t e d
S t a t e s A t t o r n e y s
O f f i c e e n t e r ed
i n t o
t h e NPA i t h I m p e r i a l
b a s e d ,
i n
p a r t ,
on
I m p e r i a l s
d e c i s i o n
t o t e r m i n a t e
i t s
premium f i n a n c e b u s i n e s s
and
s e p a r a t e t h e
employees who
r e
known
t
t h i s
time t o
have been
p r i m a r i l y
i n v o l v e d
i n
t h e
misconduct i d e n t i f i e d above,
I m p e r i a l s
s u b s t a n t i a l
c o o p e r a t i o n
t o
d a t e
i n
t h e
i n v e s t i g a t i o n
i n t o i t s
premium
f i n a n c e
b u s i n e s s ,
and t h e
U n i t e d
S t a t e s
A t t o r n e y s O f f i c e s
d e s i r e
t o l i m i t t h e n e g a t i v e
impact
and
a d v e r s e
consequences t o
t h e non
-
premium
f i n a n c e
a s p e c t s
of
m p e r i a l s
b u s i n e s s
and t h e Company's
employees
and
s h a r e h o l d e r s
t h a t
would
r e s u l t from a
r o s e c u t i o n
of m p e r i a l . T n a d d i t i o n t o t h e monetary e n a l t y , m p e r i a l
has g r e e d , among
o t h e r
t h i n g s , t o
p r o v i d e
c o o p e r a t i o n
t o
t h e
U n i t e d
S t a t e s
A t t o r n e y s
O f f i c e
and
i n v e s t i g a t o r y
a g e n c i e s ,
i n c l u d i n g
p r o v i d i n g
documents
and t h e a s s i s t a n c e
of
t s o f f i c e r s ,
a g e n t s
and
employees.
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 8 of 80 Page ID #:10
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
9/80
z
4
s
6
9
i o
i t
l
13
14
15
l ~
t ~
18
1 9
Z o
21
Z a
23
24
z s
26
a 7
a s
b e l i e v e
and
based t h e r e o n a l l e g e t h a t a t
t h e
time
of e n t e r i n g
i n t o t h e
J u l y
L e t t e r
Agree m ent and t h e r e a f t e r
i n c l u d i n g
a s of
September
34,
2011, IPF knew
t h a t
t h e
J u l y
L e t t e r
Agree m ent v i o l a t e d
Utah i n s u r a n c e
l a w s ,
r u l e s
and r e g u l a t i o n s ,
and
t h a t
t h e
s a m e
was
n u l l
and
v o i d
a s
a g a i n s t p u b l i c
p o l i c y .
IPF
f a i l e d
t o
a d v i s e t h e
K a t e r s k y
P a r t i e s
of
h e
s a m e .
33. Subsequent
h e r e t o ,
Mr. a t e r s k y
was
d i a g n o s e d a s
having
an
i n o p e r a b l e
c a n c e r o u s tumor ( b r a i n )
and began
s t e m c e l l t r e a t m e n t
f o r t h e
s a m e a t U.C.L.A.
h o s p i t a l . IPF
was
a d v i s e d of Mr. a t e r s k y s c o n d i t i o n ,
and
was f u r t h e r
a d v i s e d
t h a t
g i v e n
Mr.
a t e r s k y s h e a l t h i s s u e s and t h e
pending
t r e a t m e n t ,
Mr. a t e r s k y was
most
a r i x i o u s t o
put
h i s f i n a n c i a l
a f f a i r s i n o r d e r
so
t h a t
he
would
have
peace of
m i n d
t h a t
h i s
w i f e
and
f a m i l y
were
p r o p e r l y
p r o v i d e d
f o r
i n
t h e
e v e n t
t h e
t r e a t m e n t s
were not
s u c c e s s f u l .
34.
That
communication
r e s u l t e d
i n a
p r o p o s a l by IPF t h a t IPF would
t e r m i n a t e any p r e v i o u s u n d e r s t a n d i n g s of h e p a r t i e s , w i t h IPF o f f e r i n g t o
add
t h e
150,000 payment
t o
any b a l a n c e due t o IPF assum ing arguendo
t h e
J u l y
S , 2011
agreement was
e r m i n a t e d .
IPF f u r t h e r proposed t h e Katersky P a r t i e s would
c o n t i n u e
t o
b e
t h e
owners
/ b e n e f i c i a r i e s
of
t h e P o l i c y ;
however,
t h e y
would
t h e n
b e c o m e
o b l i g a t e d
t o repay
IPF a l l
monies
p r e v i o u s l y
advanced
f o r
t h e
payment of
h e P o l i c y
premiums,
i n c l u d i n g
t h e a d d i t i o n a l
1
5 0 , 0 0 0 .
T h e
t o t a l amount of
t h e
o b l i g a t i o n
would t h u s b e a p p r o x i m a t e l y 700,000.
No
erms
of repayment
o r
f u r t h e r f i n a n c i n g
were
d i s c u s s e d .
IPF f u r t h e r proposed t h a t IPF
would
b e c o m e a b e n e f i c i a r y
of
h e
Katersky
T r u s t ,
w i t h t h e r i g h t t o
r e c e i v e
l l of h e p r o c e e d s from t h e P o l i c y , l e s s
1
m i l l i o n , i f and
wh e n
p a i d ,
r a t h e r
t h a n
t a k i n g
ownership of
h e
P o l i c y , a s
a g r e e d
t o
i n
J u l y
L e t t e r Agreement. At
r
about
h e s a m e
i m e ,
IPF
a g r e e d
t o
r e l e a s e
t h e b a l a n c e
of
t h e 150,000
100,000)
o t h e Katersky P a r t i e s .
35. T h e Katersky P a r t i e s
a r e
informed
and b e l i e v e and
based
t h e r e o n a l l e g e
t h a t
I P F s
p r o p o s a l
was
an
a t t e m p t
t o
circumvent Utah
i n s u r a n c e
l a w s ,
r u l e s
and
r e g u l a t i o n s ,
h a t
p r o h i b i t s
an
i n s u r a n c e
p r e m i u m
f i n a n c e
c o m p a n y
from
o b t a i n i n g
an
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 9 of 80 Page ID #:11
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
10/80
3
s
6
s
9
i o
1 1
12
13
14
I S
16
t ~
r s
19
Z a
21
23
4
a s
26
a ~
a s
i n t e r e s t
i n
an
i n s u r e d ' s
p o l i c y , over and
above any
and
l l
amounts due
based s o l e l y
o n h e
f i n a n c i n g .
See, . g . Utah
Cade
Annotated
(U.C.A)
3 A
- 2 1
-104
I n s u r a b l e
i n t e r e s t and
c o n s e n t ,
r e q u i r e s t h a t an
i n s u r a b l e i n t e r e s t
e x i s t
not o n l y an
t h e
e f f e c t i v e
d a t e
o f h e
i n s u r a n c e b u t
a l s o
a t
t h e time
o f
h e
l a t e r
procurement
o f an
i n t e r e s t
i n
t h e
p r o c e e d s .
F u r t h e r ,
s u b s e c t i o n
U.C.A.
3 A
- 2 1 -
104(2)
b}
t a t e s t h a t a person
m a y n o t
knowingly
p r o c u r e , d i r e c t l y , b y
assignment o r
o t h e r w i s e ,
an
i n t e r e s t
i n
t h e
p r o c e e d s
o f
an i n s u r a n c e
p o l i c y
u n l e s s t h a t
p e r s o n
h a s o r
e x p e c t s t o have an
i n s u r a b l e i n t e r e s t i n
t h e
s u b j e c t
o f
h e
i n s u r a n c e .
A s
d e f i n e d ,
IPF o n l y
had an i n s u r a n c e
i n t e r e s t
up
and
t o t h e
e x t e n t o f
h e
f i n a n c i a l
o b l i g a t i o n
o w e d
o i t f o r
t h e
p r e m i u m
i n a n c i n g .
Because
IPF
had a i m i t e d
i n s u r a b l e
i n t e r e s t ,
IPF
k n e w t h a t
t h e
Utah
Department
o f n s u r a n c e
and
L i n c o l n
would not
a l l o w any IPF i n t e r e s t
i n
t h e P o l i c y t o exceed
t h e
am ount o r
which IPF
had an
n s u r a b l e
i n t e r e s t .
36.
The Katersky
P a r t i e s
a r e
informed and b e l i e v e
t h a t n o t w i t h s t a n d i n g
t h a t
IPF f a i l e d
t o o b t a i n
a p p r o v a l
from t h e Utah Department
o f
I n s u r a n c e
f o r t h e J u l y
L e t t e r
Agreement,
and
t h a t
IPF f a i l e d
t o complete t h e t r a n s a c t i o n s
a s c o n t e m p l a t e d
by
' t h e
J u l y L e t t e r
Agreement,
and
t h a t
t h e Katersky
P a r t i e s and IPF
had
n o t
c o n c l u d e d
any
o t h e r b i n d i n g
a r r a n g e m e n t ,
IPF
i n i t i a t e d
a
change
o f
r u s t e e
f o r
t h e
K a t e r s k y
T r u s t ,
{ n o t w i t h s t a n d i n g
I P F ' s
r e p r e s e n t a t i o n s t o t h e
c o n t r a r y }
removing
t h e
K a t e r s k y
T r u s t ' s i n d i v i d u a l
T r u s t e e ,
Mr. Lavine,
n
p l a c e o f Defendant
B ank
o f
Utah, which
event
should
have
o c c u r r e d only
u p o n t r a n s f e r o f ownership o f
t h e P o l i c y .
The
Katersky
P a r t i e s
have
d emand ed
t h a t IPF immediately a d v i s e
L i n c o l n and B a n k
o f
Utah o f h e
e r r o n e o u s
removal o f h e i n d i v i d u a l
T r u s t e e
and r e i n s t a t e
Mr.
Lavine a s
t h e
i n d i v i d u a l
T r u s t e e . The
Katersky P a r t i e s a r e
informed
and b e l i e v e and b a s e d
t h e r e o n
a l l e g e t h a t
IPF
has
a i l e d
t o do
s o .
37. Base d u p on
t h e
f o r e g o i n g , i n o r around
N o v e m b e r
and
D e c e m b e r
2011,
t h e
Katersky
P a r t i e s
n o t i f i e d
IPF
t h a t
t h e y
d e e m e d IPF t o be i n
b r e a c h o f
h e J u l y
L e t t e r
Agr e em ent and d emand ed
t h a t
IPF
p r o v i d e
t h e Katersky
P a r t i e s
w i t h
t h e
e x a c t
amount
due
and o w i n g
IPF so
h a t
t h e
Katersky
P a r t i e s could pay-
o f f
any
amounts
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 10 of 80 Page ID #:12
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
11/80
3
4
s
s
9
10
1 1
l2
13
14
i s
I d
17
1 8
19
2 0
2 r
22
2~
24
2 s
26
27
Z s
owed
t o IPF a n d .
own t h e
P o l i c y
f r e e
and
c l e a r of
any l i e n
o r i n t e r e s t
of
IPF.
IPF
r e f u s e d t o comply w i t h
t h e demand.
3
.
On
r about J a n u a r y 5,
2Q
2 ,
t h e K a t e r s k y
P a r t i e s
o b t a i n e d
i n f o r m a t i o n
t h a t IPF was
a t t e m p t i n g
t o s e l l t h e P o l l e y
on
t h e
s e c o n d a r y
m a r k e t .
The
K a t e r s k y
P a r t i e s
demanded
t h a t
IPF c e a s e
and
d e s i s t i t s a c t i v i t i e s ,
and
a g a i n
demanded
IPF
provide the
Katersky P a r t i e s with
the
pay-
off demand
p r e v i o u s l y
r e q u e s t e d . A
r u e
and c o r r e c t copy of
h e
demand l e t t e r
i s a t t a c h e d
h e r e t o
as
Exhibit 3.
IPF r e f u s e d
t o
compl y
with
the
demand,
and r e f u s e d t o
provide
t h e
Katersky
P a r t i e s
w i t h apay- o f f
demand.
39.
Between
January 5 , 2012,
and u p
t o
May
, 2012, he
Katersky P a r t i e s
and
IPF
engaged i n a
s e r i e s of
i s c u s s i o n s
i n
an
attempt
t o r e s o l v e
t h e i r
d i f f e r e n c e s .
The
d i s c u s s i o n s f a i l e d , and no w r i t t e n
agreement was e n t e r e d
i n t o .
On
May
,
2012,
the
Katersky P a r t i e s
n f l t i f i e d IPF of
t s
p o s i t i o n t h a t (a) no f i n a l
agreement
has
been
reached
and
b )
PF's only i g h t s
a r e t o r e c e i v e repayment
of ny amounts paid
b y
IPF
in regard
t o the f i n a n c i n g
of
the
p o l i c y .
F u r t h e r , the Katersky P a r t i e s once
again
demanded a payoff
i g u r e of he
a mount IPF contends
t
i s
owed
f o r
t h e
f i n a n c i n g of
the
p r e m i u m
as
of
he
May
, 2012.
IPF
r e f u s e d
t o
comply
with
t h e
r e q u e s t .
A
r u e
and
c o r r e c t
copy of h e l e t t e r i s
s e t
f o r t h
as
E ~ i b i t 4.
On May 1, 2012,
IPF
m ade
dema nd on the
Katersky
P a r t i e s t o
repay
the $150,000
but
f a i l e d
t o
provide t h e
Katersky
P a r t i e s with
the
amou nt owing IPF f o r
the
p r e m i u m
f i n a n c i n g
so t h a t
t h e
Katersky
P a r t i e s could p ay off he
IPF
f i n a n c i n g o b l i g a t i o n , i n c l u d i n g
t h e $1
50,000.
At
the same time,
IPF
n o t i f i e d
the
Katersky
P a r t i e s t h a t Imperial
Finance
w i 1 1
b e
e x e r c i s i n g a l l
a v a i l a b l e
r i g h t s
under
t h e
Loan
Agreement and r e l a t e d documents. A
t r u e and
o r r e c t of h e l e t t e r i s s e t f o r t h
as Exhibit
5.
40.
As f
he
i l i n g of h i s complaint, o n t r a r y t o
the
Katersky
a r t i e s r i g h t s ,
t i t l e
and
i n t e r e s t s
i n
and
t o the P o l i c y ,
the Katersky P a r t i e s
a r e
informed
and b e l i e v e
t h a t :
(a) IPF
continues t o m a k e
t h e monthly p r e m i u m
payments
t o Lincoln;
(b )
Defendant
B ank
of t ah s
a c t i n g
as the o l e t r u s t e e of he
Katersky T r u s t ,
i n
v i o l a t i o n
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 11 of 80 Page ID #:13
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
12/80
3
4
.
s
8
9
10
1 1
12
I3
14
15
16
r s
19
2 0
a i
Z a
23
2 4
2 s
2 6
2~
2 s
of
h e r i g h t s and
i n t e r e s t s of
h e
I ~ a t e r s k y P a r t i e s ; (c) IPF
r e f u s e s
and c o n t i n u e s
t o
r e f u s e
t o
p r o v i d e t h e
l o a n pay
- o f f
n f o r m a t i o n n e c e s s a r y
f o r
t h e
I ~ a t e r s k y
P a r t i e s t o
pay IPF t h e money
due i n
r e g a r d t o
t h e
premium f i n a n c i n g of
h e
P o l i c y ;
(d)
IPF
a s s e r t s t h a t
i t
i s t h e owner
of
h e
P o l i c y and t h a t
t h e
K a t e r s k y P a r t i e s h a v e
no n t e r e s t
i n t h e same, and
i s a t t e m p t i n g t o o b t a i n
c o n t r o l of
t h e
P o l i c y
and
t h e e v e n t u a l
p r o c e e d s
of
h e same,
o t w i t h s t a n d i n g
i t h a s n o t l e g a l
b a s i s t o do
o .
~
r j ~-
r r
{ ~ o r
~eelaratory
R e l i e f
as
to
the
Rights a n d
n t e r e s t s
of he
a r t i e s
i n a n d
t o
the
o l i c y
Against
t a l i
Defendants)
41.
P l a i n t i f f s r e a l l e g e
and i n c o r p o r a t e paragraphs 1 through
4 0
above by
r e f e r e n c e
a s though
f u l l y
s e t
f o r t h
h e r e i n .
42.
Qn
h e f a c t s
a l l e g e d above,
t h e r e
i s now an
a c t u a l
c o n t r o v e r s y
of
a
j u s t i c i a b l e
n a t u r e as t o
whether
t h e P o l i c y i s ow ned
by
t h e
Katersky P a r t i e s , whether
Barry
Lavine
and / o r t h e
B a n k
of
Utah
i s
t h e
T r u s t e e of h e T r u s t , a n d
what r e t h e
r i g h t s
and n t e r e s t s of
PF
and
TLS i n and
t o
t h e
P o l i c y .
43.
The
Katersky
P a r t i e s
a r e
e n t i t l e d
t o
a
u d i c i a l d e c l a r a t i o n , i n
view
of
h e
circumstances surrounding
t h e
P o l i c y
as
t o
t h e r i g h t s ,
t i t l e
and i n t e r e s t s
of
t h e
P l a i n t i f f s
and
h e
Defendants
n and t o t h e P o l i c y .
44.
The
Katersky
P a r t i e s r e s p e c t f u l ly r e q u e s t
t h e
e n t r y
of a n Order
by t h i s
Court
d e c l a r i n g t h a t :
(a}
The Katersky a r t i e s a r e
t h e
owners,
nd
b e n e f i c i a r i e s of
h e P o l i c y ;
{b}
IPF's only
r i g h t s
a r e t o r e c e i v e repayment of any
amounts
p a i d
by
IPF t o
Lincoln or
t o
t h e
Katersky
a r t i e s
i n
r e g a r d t o t h e
f i n a n c i n g
of h e
p o l i c y and t h a t IPF
must
provide t h e
Katersky
P a r t i e s
with a proper
demand f o r repayment of
i t s
o b l i g a t i o n s
and
h a t
IPF has
n o
o t h e r
i n t e r e s t
i n
or
o
t h e
P o l i c y ;
(c) arry Lavine
s
t h e
i n d i v i d u a l
T r u s t e e
f o r
t h e
T r u s t ;
( d )
a n k
of tah
s
not a
T r u s t e e
of
h e
T r u s t ;
12
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 12 of 80 Page ID #:14
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
13/80
3
4
5
6
s
9
14
l l
IZ
13
14
15
16
I7
i s
19
a o
21
2 2
23
24
25
26
a ~
a s
(e)
i n c o l n
i s
bound
t o honor t h e
terms and
c o n d i t i o n s
of h e
P o l i c y a s
t o t h e
Katersky
a r t i e s ;
{~
LS
has
no i g h t , i t l o r
i n t e r e s t i n
t h e
P a l i c y .
~ E C f ~ I ~ T I ~
C L A I I V V Y F~JR I~EIl~~~
(~ emporary L e s t r a i n i n g
o rd e r
and
Preliminary
~ n j u n c t i a n
Against
A i l
Defendants)
45.
P l a i n t i f f s r e a l l e g e
and
i n c o r p o r a t e
p a r a g r a p h s
1
t h r o u g h 44 above
by
( r e f e r e n c e
a s though
f u l l y
s e t
f o r t h
h e r e i n .
46,
Based
upon t h e
c o n t r o v e r s y
a s
between
t h e
p a r t i e s a s
h e r e i n a b o v e
a l l e g e d , P l a i n t i f f s
seek
a
temporary r e s t r a i n i n g
o r d e r and
p r e l i m i n a r y
i n j u n c t i o n ,
r e s t r a i n i n g
and
e n j o i n i n g
D e f e n d a n t s , and each of
t hem ,
from s e l l i n g ,
t r a n s f e r r i n g ,
a s s i g n i n g ,
o r
o t h e r
a t t e m p t i n g
t o
e x e r t
dominion and c o n t r o l
over t h e
P o l i c y ,
d u r i n g
t h e pendency of h i s
a c t i o n .
47.
Should
a r e s t r a i n i n g
o r d e r
not
i s s u e , P l a i n t i f f s
w i i i
s u f f e r
i r r e p a r a b l e
h a r m
s h o u l d t h e P o l i c y be
t r a n s f e r r e d , s o l d o r
o t h e r w i s e
a s s i g n e d by
D e f e n d a n t s ,
i n
t h a t any
p o t e n t i a l
t h i r d
p a r t y
a c q u i r i n g c o u l d a s s e t an
ownership i n t e r e s t i n
and
t o
t h e
P o l i c y ,
and
t h u s s u b j e c t
P l a i n t i f f s
t o
a
L o s s
of
h e i r i n t e r e s t s
i n
t h e
P o l i c y .
48.
P l a i n t i f f s
a r e
e n t i t l e d t o
such i n j u n c t i v e
r e l i e f a s P l a i n t i f f s do not
have
an
a d e q u a t e
re med y
a t
law, n t h a t
t h i s c o n t r o v e r s y i n v o l v e d t i t l
t o p e r s o n a l
p r o p e r t y ,
which
i s unique
and
cannot b~ r e p l a c e d given t h e
f a c t s
and
c i r c u m s t a n c e s of
K a t e r s k y s
h e a l t h .
( ~ o r Fraud Against
Defendant
IPF}
49.
P l a i n t i f f s
r e a l l e g e and
i n c o r p o r a t e paragraphs 1 through
4Q
above
by
r e f e r e n c e
a s though
u l l y s e t
f o r t h
h e r e i n .
S0.
As hereinabove a l l e g e d ,
IPF s
conduct i n
inducing t h e
Katersky
P a r t i e s
t o e n t e r
i n t o
t h e J u l y L e t t e r Agreement,
w a s
based upon m a t e r i a l
m i s r e p r e s e n t a t i o n s
of a c t
and
law, n t h a t
a t or
about
h e time
IPF w a s n e g o t i a t i n g
t h e
J u l y L e t t e r
13
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 13 of 80 Page ID #:15
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
14/80
1
2
3
s
s
g
9
t o
t t
12
13
14
i s
16
t ~
1 s
19
2 0
21
22
23
24
2 s
26
z ~
a s
Agreement and
h e r e a f t e r ,
IPF
knew
h a t i t
was engaged
i n
i l l e g a l
c r i m i n a l conduct
of
such
a a t u r e
a s
t o t h r e a t e n e d I P F s
f i n a n c i a l
v i a b i l i t y , knew
o f h e r e q u i r e m e n t s
o f
t h e
Utah
Department
o f n s u r a n c e w i t h r e s p e c t
t o
t h e s a l e
o f
i f e
i n s u r a n c e p o l i c i e s ,
knew t h a t
such
s a l e
agreements
had t o
be
p r e a p p r o v e d b y
t h e Utah Department
of
I n s u r a n c e , and y e t , induced
t h e Katersky P a r t i e s
t o
e n t e r
i n t o
t h e J u l y
L e t t e r
Agreement
and
t h e r e a f t e r t o n e g o t i a t e
w i t h IPF t o
a
s t r u c t u r e
o f h e
s a l e
o f h e
P o l i c y
t o IPF
a i l i n g
t o
d i s c l o s e d t h e s e m a t e r i a l
f a c t s
t o
t h e
I ~ . a t e r s k y
P a r t i e s
p r i o r
t o
t h e time
t h e
J u l y L e t t e r
Agreement
was
s i g n e d and t h e r e a f t e r
i n r e g a r d t o t h e
n e g o t i a t i o n s
between
IPF and
h e
Katersky P a r t i e s
a s t o
t h e s a l e o f h e P o l i c y .
51. I n
making
h e f r a u d u l e n t
m i s r e p r e s e n t a t i o n s
o r
o m i s s i o n s
of a t e r i a l f a c t
t o
t h e Katersky P a r t i e s ,
IPF i n t e n d e d t h e
I ~ a t e r s k y
P a r t i e s
t o
r e l y
o n t h e
same,
and i n
f a c t
t h e I ~ a t e r s k y
P a r t i e s d i d
r e l y an
I P F s
m i s r e p r e s e n t a t i o n s
and o m i s s i o n s o f
m a t e r i a l f a c t i n e n t e r i n g
i n t o t h e J u l y L e t t e r
Agreement and
t h e r e a f t e r
i n
engaging i n
n e g o t i a t i o n s
w i t h
IPF e g a r d i n g
t h e s a l e
o f h e
P o l i c y .
I n f a c t
and
i n
t r u t h , IPF
had
no
i n t e n t i o n o f p e r f o r m i n g
i t s
o b l i g a t i o n s under
t h e
J u l y
L e t t e r
Agreement,
n
t h a t IPF
knew t h a t
t h e
same was
i l l e g a l
and v o i d ,
and
was
i n v i o l a t i o n o f U t a h s
i n s u r a n c e
laws,
and
f u r t h e r
t h a t
IPF
was
u s i n g t h e J u l y
L e t t e r
Agreement and
t h e
n e g o t i a t i o n s
t h a t took p l a c e t h e r e a f t e r t o
o b t a i n
ownership and
c o n t r o l o f t h e P o l i c y .
I P F s
f r a u d u l e n t
conduct
i s
f u r t h e r d e m o n s t r a t e d by
t s a)
n i l a t e r a l l y changing t h e
t r u s t e e
o f
h e Katersky
T r u s t t o t h e
Bank
o f
Utah, and
b )
e f u s a l
t o
p r o v i d e
t h e
K a t e r s k y
P a r t i e s
w i t h
a payoff
demand o f t h e
amounts
i t i s
owed
f o r
t h e
f i n a n c i n g
o f
t h e
premium
o f
h e
P o l i c y .
S2. As
a
d i r e c t and
p r o x i m a t e
c a u s e
o f
P F s f r a u d
a s
h e r e i n a b o v e
a l l e g e d ,
t h e Katersky P a r t i e s have
been
damaged
i n an
amount
o be
d e t e r m i n a t e
a t
t h e
time
o f
t h e t r i a l
o f
h i s
m a t t e r ,
but
n
e x c e s s
o f
h e j u r i s d i c t i o n a l
l i m i t s o f h i s
c o u r t .
53. I P F s
conduct
a s
h e r e i n a b o v e
a l l e g e d was done,
n t e n t i o n a l l y ,
w i l l f u l l y ,
m a l i c i o u s l y
and
w i t h r e c k l e s s
d i s r e g a r d t o
t h e r i g h t s o f h e
Katersky P a r t i e s
s o
has
o
i
14
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 14 of 80 Page ID #:16
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
15/80
1
2
3
s
6
9
10
i t
12
13
14
I S
16
1 ~
i s
19
2 0
2 l
2 2
2 3
2 4
2 s
2 6
27
28
e n t i t l e t h e
Katersky P a r t i e s
t o p u n i t i v e damages
a s
a g a i n s t I P F , ~
i n t h e
amount
t o be
determined a t t h e time
of
r i l of
h i s
m a t t e r .
(Breach of
Contract and the Implaed covenant
of
Good
wi t h
and
Fai r
~ l e a i i n g
Against
IPF)
54.
P l a i n t i f f s
r e a l l e g e
and
i n c o r p o r a t e paragraphs 1
through
40 above
by
( r e f e r e n c e
a s
though
u l l y s e t f o r t h h e r e i n .
55. The Katersky
P a r t i e s
f u l f i l l e d
l l of
h e i r
o b l i g a t i o n s
owed
t o IPF under
( t h e
terms
of
t h e Loan Agreement, a nd t o t h e e x t e n t a p p l i c a b l e t h e J u l y L e t t e r
Agreement,
except where excused
by
t h e f a i l u r e
of
IPF t o
perform
i t s o b l i g a t i o n s
(owed o t h e
Katersky
P a r t i e s .
56.
IPF
breached
t s o b l i g a t i o n s owed o t h e
Katersky P a r t i e s under t h e terms
(of
t h e
Loan Ag reem ent and
t o
t h e
e x t e n t
a p p l i c a b l e t h e J u l y
L e t t e r
Agreement,
i n c l u d i n g
i t s o b l i g a t i o n
t o a c t i n
goad
f a i t h and d e a l f a i r l y
with t h e I ~ a t e r s k y P a r t i e s
by
r e f u s i n g
t o provide t h e
Katersky P a r t i e s
with
t h e a p p r o p r i a t e i n f o r m a t i o n
so t h a t
t h e
Katersky P a r t i e s
could
pay
off
h e i r
o b l i g a t i o n s t o
IPF, a nd by
a i l i n g t o
respond
t o t h e
I ~ a t e r s k y
demand
f o r
a p a y -
off
n f o r m a t i o n ,
and
b y
a c t i n g
i n
such
a manner
i n
an
attempt
t o
r e s t c o n t r o l and t h e b e n e f i t s of h e P o l i c y from t h e
Katersky
P a r t i e s
a l l
a s
h e r e t o f o r e
d e s c r i b e d .
57.
As d i r e c t and proximate
r e s u l t of
IPF s
breach of
h e
Loan
Agreement,
and t o t h e e x t e n t
a p p l i c a b l e t h e
J u l y
L e t t e r
Agreement,
IPF
has caused damages o t h e
I ~ a t e r s k y P a r t i e s i n
an
amount
t o be proved
a t
t h e time of r i l but i n
e x c e s s
of h e
mi n i mum
u r i s d i c t i o n a l l i m i t s
of
h e c o u r t .
~ r
(~nten~ional
I n f l i c t i o n
of
emotional
D i s t r e s s
of l a i n t i f f K a t e r s k y
b y
I ~ F }
58.
P l a i n t i f f
I ~ a t e r s k y r e a l l e g e s
and i n c o r p o r a t e s
paragraphs 1 through 4
above
b y r e f e r e n c e
as
though
f u l l y s e t f o r t h h e r e i n .
~ ~ ~
15
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 15 of 80 Page ID #:17
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
16/80
59. The conduct of PF a s
t o Katersky a s d e s c r i b e d above
i s
o u t r a g e o u s i n
2
t h a t
IPF
i n t e n t i o n a l l y a nd
w i l l f u l l y
f a i l e d
t o
p r o v i d e t h e Katersky
P a r t i e s
w i t h
3 i n f o r m a t i o n t h a t would
a l l o w
t h e Katersky
P a r t i e s t h e
o p p o r t u n i t y
t o
pa y o f f a ny
4
o b l i g a t i o n
owed
t o IPF so
t h a t
IPF could
o b t a i n
dominion a nd c o n t r o l over a nd t o
t h e
5 P o l i c y , a n d o b t a i n t h e
P o l i c y s b e n e f i t s , a l l t o t h e
d e t r i m e n t and
L o s s t o t h e Katersky
6 P a r t i e s . IPF's
conduct s
extreme
and
o u t r a g e o u s a n d goes
beyond l l
p o s s i b l e
bounds
~
of
decency s o a s t o be regarded a s a t r o c i o u s a nd
u t t e r l y
i n t o l e r a b l e i n
a c i v i l i z e d
8
c o mmu n i t y
i n t h a t
IPF k new
t h a t
Katersky w a s a nd i s s u f f e r i n g from an i n o p e r a b l e
g
b r a i n tumor,
w a s
and i s
undergoing
s e v e r e and e x t e n s i v e
stem
c e l l t r e a t m e n t
a t
t o
U.C.L.A.
o s p i t a l
and
f u r t h e r
k n e w
h a t Katersky v v a s d e s p e r a t e l y a t t e m p t i n g t o put
i
h i s
f i n a n c i a l a f f a i r s
i n
o r d e r
f o r
t h e
b e n e f i t of
h i s
wife a nd c h i l d r e n , w h i l e f a c i n g a
1 2
l i f e-t h r e a t e n i n g
c o n d i t i o n . 1 ~ T o t w i t h s t a n d i n g t h i s knowledge,IPF used K a t e r s k y s l i f e
i 3
t h r e a t e n i n g s i t u a t i o n i n a n
a t t e m p t t o
o b t a i n ownership a nd c o n t r o l of h e P o l i c y
from
14
t h e
Katersky P a r t i e s ,
by
r e f u s i n g
t o
c o o p e r a t e
with Katersky a nd
t h e
K . a t e r s k y
P a r t i e s
l s
i n
t h e i r
a t t e m p t t o pay off h e
IPF
o a n , a nd
by
a s s e r t i n g ownership
r i g h t s
t o t h e
1 6
p o l i c y , i n c l u d i n g u n i l a t e r a l l y
changing
t h e t r u s t e e
of
h e t r u s t from t h e i n d i v i d u a l
i ~
t r u s t e e
t o
Utah Ban k, n d by
t a k i n g
e f f o r t s
t o
s e l l
t h e P o l i c y
i n t h e
secondary
market
I
$
f o r i t s
ow
e n e f i t a nd
g a i n .
i g 60. IPF's extreme a nd
outrageous
conduct
a s
s e t f o r t h
above
goes
beyond
2 0 mere
i n s u l t s ,
i n d i g n i t i e s , t h r e a t s ,
annoyances,
e t t y
o p p r e s s i o n s
o r
o t h e r r i v i a l i t i e s
2 1
but s
conduct
which
would cause
a n
average
member of
h e
c o mmu n i t y
o
2 2
immediately
r e a c t
i n
o u t r a g e ,
p a r t i c u l a r l y
so
given
t h e
r e l a t i o n s h i p of
h e
p a r t i e s
2 3
where
IPF has
t h e
a b i l i t y a n d power t o a f f e c t
K a t e r s k y s
f i n a n c i a l i n t e r e s t s
and
f u r t h e r
2 ~ t h a t IPB
k n e w
t h a t
K a t e r s k y s h e a l t h c o n d i t i o n s p l a c e d Katersky i n a p o s i t i o n t h a t
2 5
m a de
him s u s c e p t i b l e
t o
emotional
d i s t r e s s
by reason of
h i s
p a r t i c u l a r p h y s i c a l a r
2 b
mental
c o n d i t i o n .
Yet,
IPF
proceeded t o a t t e m p t
t o d e p r i v e
Katersky a nd t h e Katersky
2 7
P a r t i e s
of h e
b e n e f i t s
of h e P o l i c y they
d e s p e r a t e l y
need t o
i n s u r e
t h a t
t h e i r f i n a n c i a l
2 8
concerns would
be a d d r e s s
u po n t h e
d e a t h of a t e r s k y .
lb
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 16 of 80 Page ID #:18
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
17/80
3
4
s
6
s
9
i o
i t
12
13
14
i s
16
17
i s
19
Z o
a t
Z a
23
24
25
a ~
a ~
a s
61. I n
a c t i n g
i n
t h e
manner h e r e i n a b o v e
a l l e g e d ,
IPF
n t e n d e d
t o i n f l i c t
emotional
d i s t r e s s
upon K a t e r s k y
i n
t h e
IPF
knew
h a t
such
d i s t r e s s was
u b s t a n t i a l l y
c e r t a i n t o r e s u l t from
I P F s
conduct
and a c t e d i n t e n t i o n a l o r
i n r e c k l e s s
d i s r e g a r d o f
t h e
p r o b a b i l i t y
o f a u s i n g
h i s
e m o t i o n a l d i s t r e s s ;
62.
As n
a c t u a l and p r o x i m a t e
r e s u l t
o f
I P F s conduct s
h e r e i n a b o v e
a l l e g e d , Katersky
has and i s s u f f e r i n g s e v e r e
o r
extreme
e m o t i o n a l
d i s t r e s s ,
i n c l u d i n g
(mental d i s t r e s s ,
mental
s u f f e r i n g
and
mental a n g u i s h ,
i n c l u d i n g ,
n e r v o u s n e s s , g r i e f ,
a n x i e t y ,
worry,
o r t i f i c a t i o n , shock,
u m i l i a t i o n
and i n d i g n i t y ,
b 3 .
As u r t h e r
a c t u a l
and p r o x i m a t e r e s u l t o f
h e
e m o t i o n a l
d i s t r e s s c a u s e d
t o
Katersky
by IPF,
atersky
has
been
damaged
n
an
am oun t
n
e x c e s s
o f h e
j u r i s d i c t i o n a l
l i m i t s o f h i s c o u r t .
64.
I P F s
conduct s
h e r e i n a b o v e
a l l e g e d
was
done,
n t e n t i o n a l l y ,
w i l l f u l l y ,
m a l i c i o u s l y and w i t h
c o n s c i o u s
and r e g a r d l e s s
d i s r e g a r d t o t h e
r i g h t s
o f
a t e r s k y
so
has o e n t i t l e
Katersk~ o p u n i t i v e
damages s a g a i n s t
IPF, n
t h e am oun t o
be
d e t e r m i n e d
a t
t h e time o f r i l
o f
h i s
m a t t e r .
( I ~ t e g l i g e ~ t I n f l i c t i o n
o f E m o t i o n a l
D i s t r e s s
o f
l a i n t i f f I ~ a t
Kagersky
by
I P F )
65. P l a i n t i f f
Hal
~ . a t e r s k ~ r e a l l e g e s
and i n c o r p o r a t e s
p a r a g r a p h s 1
through
40
above by
r e f e r e n c e as though
i t l l y s e t
f o r t h
h e r e i n .
66. A l t e r n a t i v e l y
t o t h e
F i f t h
Claim
For R e l i e f , P l a i n t i f f
Katersky
a l l e g e s
t h a t
t h e
conduct
o f IPF
a s
d e s c r i b e d above
i s
outrageous
i n
t h a t IPF
n e g l i g e n t l y and w i t h .
r e c k l e s s
d i s r e g a r d t o
t h e r i g h t s
o f ~ a t e r s k y ,
f a i l e d t o p r o v i d e
t h e
Katersky
P a r t i e s
w i t h
i n f o r m a t i o n
t h a t would
allow
t h e
Katersky
P a r t i e s
t h e
o p p o r t u n i t y t o pay
off any
o b l i g a t i o n o w e d
t o IPF so t h a t
IPF
could
o b t a i n d om in i on
and
c o n t r o l
over and t o t h e
P o l i c y ,
and o b t a i n t h e
P o l i c y s
b e n e f i t s ,
a l I
t o t h e
d e t r i m e n t
and
l o s s
t o
t h e
Katersky
P a r t i e s .
67.
IPF s conduct
was
extreme
and
outrageous and
goes
beyond
a l l p o s s i b l e
bounds o f
ecency
so
as o
be r e g a r d e d a s
a t r o c i o u s and
u t t e r l y
i n t o l e r a b l e i n
a
17
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 17 of 80 Page ID #:19
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
18/80
2
3
4
s
6
s
9
10
1 1
t2
I3
14
IS
l ~
1 ~
l a
19
2 0
21
a ~
2 3
24
a s
26
27
2 s
c i v i l i z e d community
i n t h a t
IPF knew
t h a t
K a t e r s k y
was and
i s
s u f f e r i n g from an
i n o p e r a b l e b r a i n
tumor, was
and
s u n d e r g o i n g s e v e r e
and
e x t e n s i v e stem
c e l l
t r e a t m e n t a t
U.C.L.A.
h o s p i t a l
and f u r t h e r ,
knew t h a t K a t e r s k y was d e s p e r a t e l y
a t t e m p t i n g
t o
p u t h i s f i n a n c i a l a f f a i r s
i n o r d e r f o r t h e
b e n e f i t of
h i s
w i f e
and
c h i l d r e n ,
w h i l e f a c i n g t h i s
l i f e
t h r e a t e n i n g c o n d i t i o n .
N o t v a i t h s t a n d i n g t h i s knowledge, IPF
r e f u s e d
t o c o o p e r a t e w i t h K a t e r s k y and
t h e
K a t e r s k y P a r t i e s i n t h e i r a t t e m p t t o pay a f f
t h e
IPF l o a n ,
and
a s s e r t e d ownership r i g h t s t o
t h e
P o l i c y , i n c l u d i n g u n i l a t e r a l l y
changing
t h e
t r u s t e e of
h e t r u s t
from
t h e
i n d i v i d u a l t r u s t e e
t o
Utah Bank,
and
by
t a k i n g
e f f o r t s
t o
s e l l t h e P o l i c y i n
t h e
s e c o n d a r y market o r
i t s
own e n e f i t
and
g a i n .
68. I n a c t i n g
i n
t h e manner
h e r e i n a b t ~ v e
a l l e g e d , IPF
a c t e d
n e g l i g e n t l y
and
i n
r e c k l e s s d i s r e g a r d of K a t e r s k y ' s r i g h t s
and
i n so
doing i n f l i c t e d e m o t i o n a l d i s t r e s s
upon
Hal K a t e r s k y
and i n r e c k l e s s d i s r e g a r d
of
h e
p r o b a b i l i t y
of a u s i n g e m o t i o n a l
C ~ 1 S t T ' ~ S S t
.~~BI'S~f~.
69. As
an
a c t u a l and proximate r e s u l t of IPF's conduct
a s
h e r e i n a b a v e
( a l l e g e d ,
Katersky
has
and
i s
s u f f e r i n g
s e v e r e
or extreme emotional d i s t r e s s , i n c l u d i n g
mental
d i s t r e s s ,
mental
s u f f e r i n g
and . m e n t a l a n g u i s h , i n c l u d i n g ,
n e r v o u s n e s s ,
g r i e f ,
( a r i x i e t y ,
worry,
o r t i f i c a t i o n ,
shock,
u m i l i a t i o n
and
n d i g n i t y ,
70.
As
f u r t h e r
a c t u a l
and
proximate
r e s u l t
of
h e
emotional
d i s t r e s s caused
' t o
Katersky
by
IPF,
Katersky has
been
damaged i n
an
amount
i n
e x c e s s
of
t h e
m i n i m u m
u r i s d i c t i o n a l l i m i t s of
h i s
c o u r t .
~ ~ ~T ~~L~~ ~~ ~Y ~
(Unfair Business
r a c t i s e s
V i o l a t i o n
of Cal. Bus.
z
Prof.
C o d e
1 ' 7 2 0 0 ,
e t s e q . Against Defendants YPF
and
I ~ . S )
71.
P l a i n t i f f s
r e a l l e g e and i n c o r p o r a t e h e r e i n
b y
r e f e r e n c e p a r a g r a p h s
1
through 4Q n c l u s i v e , a s thoug h
h e
same
were
u l l y s e t f o r t h
h e r e i n .
72.
Defendants
IPF
and
ILS's
a c t s and p r a c t i c e s a s
d e s c r i b e d h e r e i n '
c o n s t i t u t e unlawful, f r a u d u l e n t , and u n f a i r
b u s i n e s s p r a c t i c e s i n v i o l a t i o n
of
C a l i f o r n i a ' s Business
and r o f e s s i o n s
Code,
e c t i o n s 172Q0,
t s e q . ,
i n
t h a t {1) h e
j u s t i f i c a t i o n
f a r
Defendants'
IPF and
I L S
conduct s outweighed
b y
h e
g r a v i t y
of
h e
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 18 of 80 Page ID #:20
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
19/80
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
20/80
a
3
5
6
s
9
IQ
t l
12
13
14
15
16
1 ?
i s
19
Z o
a ~
Z a
23
4
25
26
27
28
p e r s o n a l
p r o p e r t y
t h a t
i s
t o be used f o r
f a m i l y
c a r e and
maintenance of
h e
K a t e r s k y
P a r t i e s , and t h a t IPF
and
ILS s
conduct
was
done
f o r a
wrongful use o r w i t h
t h e
i n t e n t
)
t o d e f r a u d o r
b o t h .
78.
Defendants
IPF
and
ILS s c o n d u c t , a s
h e r e i n a b o v e
a l l e g e d ,
was
n t e n d e d
t o
and
d i d
cause
Katersky
t o s u f f e r
s u b s t a n t i a l
p h y s i c a l , e m o t i o n a l
and
economic
d a m a g e s
and
IPF
and I L S
k n e w
o r
s h o u l d
have
k n ow n t h a t t h e i r
conduct
i s
l i k e l y t o
be
harmful o
K a t e r s k y .
79. As
proximate
r e s u l t
of
h e
Defendants IPF and
ILS s wrongful
c o n d u c t ,
P l a i n t i f f
Katersky
has
s u s t a i n e d
and
w i l l
s u s t a i n
s u b s t a n t i a l economic
l a s s e s
and o t h e r
g e n e r a l
and
s p e c i f i c
d amages
l l
an
a m o u n t
o be
d e t e r m i n e d a c c o r d i n g t o
p r o o f .
80.
As a
f u r t h e r proximate
r e s u l t
of
Defendants IPF
and
I L S ' s
w r o n g f u l
c o n d u c t ,
P l a i n t i f f Katersky
has s u s t a i n e d g r e a t
e m o t i o n a l
p a i n and m e n t a l
s u f f e r i n g ,
a l l i n
an
a m o u n t o
be
d e t e r m i n e d
a c c o r d i n g
t o p r o o f .
81.
The
a c t i o n s
t a k e n
b y
Defendants
IPF
and
ILS,
e t
f o r t h
above,
were
i n
a l l
r e s p e c t s
r e c k l e s s ,
m a l i c i o u s , w i l l f u l
and o p p r e s s i v e ,
and
m a n i f e s t e d e i t h e r
d i s r e g a r d o r
contempt o r
t h e
r i g h t s of al
K a t e r s k y .
82. Defendants
IPF
and
I L S
were
f u l l y
c o g n i z a n t
of
h e
p o s i t i o n
of
r u s t
i n
which
t h e y s t o o d .
83.
Ba se d
upon IFP
and
IL5 s
conduct has
h e r e i n a b o v e a l l e g e d ,
K a t e r s k y
i s
e n t i t l e d t o an
award of
u n i t i v e and exemplary
d a m a g e s
a s
w e l l a s
a t t o r n e y s ' f e e s ,
n ,
an
a m o u n t
c c o r d i n g
t o proof
t
t h e
time of
r i a l .
84.
As h e
s u b j e c t
t r a n s a c t i o n s i n v o l v e d s e n i o r
c i t i z e n s ,
K a t e r s k y
i s f u r t h e r
e n t i t l e d
t o
t r e b l e
d a m a g e s
and p e n a l t i e s
p u r s u a n t t o C i v i l
Code s e c t i o n 3345
b e c a u s e
d e f e n d a n t s
IPF
and
I L S k n e w o r
s h o u l d have k n ow n t h a t
t h e i r
conduct
was d i r e c t e d t o
OTle OT
T i O T e
Se1110I
C1tiZB11S.
f~ ~
~ ~ ~
~ ~ ~
n
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 20 of 80 Page ID #:22
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
21/80
1
a
4
s
6
s
9
i o
1 1
i s
13
14
15
i s
1 ~
i s
19
2 a
21
a s
23
24
25
2 6
2 7
a s
~H[EREFOR.E, l a i n t i f f s p r a y f o r
r e l i e f
a s
f o l l o w s :
FIRSTCLAIM
~1~.
RELIEF
For declaratory
e i i e f ~
1 . Entry of
n
Order
by
h i s Court
e c l a r i n g
t h a t :
a ) he
Katersky a r t i e s a r e t h e owners, n d
b e n e f i c i a r i e s ,
of
h e P o l i c y ;
{b)
P F s only r i g h t s
a r e
t o
r e c e i v e repayment
of a n y
amounts p a i d
by
IPF
t o
Lincoln
o r
t o
t h e Katersky a r t i e s i n
r e g a r d
t o
t h e
f i n a n c i n g
of h e
p o l i c y
a n d h a t
IPF
m u s t p r o v i d e t h e
I ~ a t e r s k y
P a r t i e s w i t h a
p r o p e r
d e m a n d f o r repayment
of
i t s
o b l i g a t i o n s a n d h a t IPF
has n o t h e r i n t e r e s t i n o r t o
t h e
P o l i c y ;
c) arry Lavi ne
s
t h e i n d i v i d u a l T r u s t e e
f a r
t h e
T r u s t ;
d }
a n k of
tah
s n o t
a
r u s t e e
of h e
T r u s t ;
e }
L i n c o l n
i s
bound
t o honor
h e
terms an d
c o n d i t i o n s of h e P o l i c y
a s
t o
t h e
Katersky
a r t i e s ;
( f }
ILS
has
n o
i g h t ,
i t l e
o r
i n t e r e s t
i n t h e P o l i c y .
SEC~NI~
LAg1VI
FAR
IELIEF
( ~ + o r T e m p o r a r y
~ e s t r a i ~ a i n g Ord er a n d Preliminary
n j u n c t i o n
Against
l l
Defendants)
2 .
For
a temporary
r e s t r a i n i n g
o r d e r
a n d
p r e l i m i n a r y
i n j u n c t i o n , r e s t r a i n i n g
an d
e n j o i n i n g
Defendants,
a n d each
of hem,
from
s e l l i n g ,
t r a n s f e r r i n g ,
a s s i g n i n g , o r
o t h e r
a t t e m p t i n g t o
e x e r t dominion
and
c o n t r o l
over
t h e
P o l i c y ,
d u r i n g t h e
pendency
of
h i s
a c t i o n .
( I o r
Fraud Again s t
f ~ e f e n d a n t
IPF)
3.
Far
d a m a g e s
c c o r d i n g
t o
p r o o f ;
4.
For u n i t i v e
d a m a g e s
c c o r d i n g t o p r o o f .
21
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 21 of 80 Page ID #:23
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
22/80
1
3
4
s
6
s
9
10
t l
t2
13
14
15
16
i ~
18
19
Z o
21
a s
2 3
24
25
2 6
a ~
a s
1 i l
FoU~~
~;~L~ZM
~o
~~~+ +
(breach
of
ontract and
the
Implied Covenant of
Gaod aith
and
Fair
~ Against P A ' }
5 . For
damages
c c o r d i n g
t o
p r o o f ;
6.
For
e a s o n a b l e a t t o r n e y
f e e s and
c o s t s .
F I ~ ~ F I CLAilYI
FC}R ~E~.I~
( I n t e n t i o n a l
I n f l i c t i o n of
motional
} i s t r e s s
of
l a i n t i f f
3 C a l
~ a t e a - s k y by IPF)
7.
For
damages c c o r d i n g t o p r o o f ;
8 . For
u n i t i v e
damages c c o r d i n g
t o
p r o o f .
S I k ~ CLAIM
~1R R]EI,IF
( l ~ T e g l i g e n t
I n f l i c t i o n
of
Emotional
i s t r e s s of P l a i n t i f f
dal ~ a t e r s k y
by
IPF}
9. For
damages
c c o r d i n g t o
p r o o f ;
SEVlEIVTIH[ ~LAIlVI + t ~ I 2 .
R~LIE~
( Z . l n f a i r
Susiness
r a c t i c e s V i o l a t i o n
of
ai. Bus.
i
Prof,
Code
172Q0, t e r f .
Against i l
Defendants
~PF
nd
~ I . S )
1 1 .
For
damages
according o
proof
s allowed
by
t a t u t e ;
1 2 .
For
e c l a r a t o r y
and
n j u n c t i v e
r e l i e f
as allowed
by
t a t u t e ;
1 3 . For
e a s o n a b l e
a t t o r n e y
f e e s and
c o s t s
as allow ed
by
t a t u t e .
E~G~I~ ~ I ~ A I l i 9 [
F~JR REL~JE~
( For hider
Abuse
by
dal
~tersky
as Against
Defendants
IPF
nd I L S )
1 4 . For
damages c c o r d i n g t o
p r o o f ;
1 5 . For
u n i t i v e damages according
o p r o o f ;
1 6 .
For
r e b l e
damages
as allowed by
t a t u t e ;
1 7 .
For
e a s o n a b l e
a t t o r n e y
f e e s and c o s t s
as
allowed by t a t u t e .
N
LLCLAIMS
f ~ l E 2
k~LIEg+
1 8 . For e a s o n a b l e
a t t o r n e y f e e s ;
1 9 .
For o s t s of u i t i n c u r r e d ;
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 22 of 80 Page ID #:24
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
23/80
2
3
4
5
6
7
s
9
t
I 1
12
13
14
15
16
17
18
19
20
21
2 2
23
2 4
25
2 6
2 7
28
20.
For
n t e r e s t
a s
a l l o w e d by Iaw;
21.
For s u c h o t h e r
and
f u r t h e r
r e l i e f a s
t h e Caurt
deems
u s t
and
p r o p e r .
) D a t e d :
1 V I a y
23
2012
EZPA
BRU ~ ~
G
2 3
A t t u
s o r
P l a i n t i f f s
Ha I
K at y ,
B a r r y
L a v i n e ,
a s
t h e
i n d i v i d u a l
t r u s t e e
of
t h e
Amen ded and
R e s t a t e d
HaI
~ . a t e r s k y
I r r e v o c a b l e
L i f e I n s u r a n c e
T r u s t ,
H i l l a r y
A.
a t e r s k y ,
Andre w
K a t e r s k y ,
Robin
T ~ a t e r s k y ,
J e f f r e y
K a t e r s k y ,
and
Dylan
Zelman
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 23 of 80 Page ID #:25
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
24/80
3
4
5
6
7
8
4
10
1 1
12
13
14
IS
16
17
18
19
20
21
22
23
24
25
26
27
28
~ T U R . Y
~3EMI~.NI~
P l a i n t i f f s demand
a r i a l
by
ury
on
l l
i s s u e s so r i a b l e .
~
Dated;
May 3
2Q
2
EZF
~}
Case 2:12-cv-04503-DMG-CW Document 1 Filed 05/23/12 Page 24 of 80 Page ID #:26
-
8/10/2019 Blackhat 2010-5-23 Larry Gabriel Complaint
25/80
ST
ATE
OFU
TAH
:
c o ~
~ r
~
a ~
~ ~
~ r
~
:
T h i s
t ~ l m
e n d e
d
and
. e s
t a t e c
i
T z ~
s t
t ~ . g
r e e t n
e u t
c
> f t h e
k L
A . L
TER.
SI~
Y
TR
REV
OG
ABL
E
ICE
IN
SURA
I`~
CE
T R i
3S T
t h e
" S ' r
u ~
. f t
g ~ e e
m e n ~ '
} ,
a t e
d a s
of
e p t
~ m b e
r 21,
U0 8
,
efw
een
~
i Kat
ersk
y
{ t } ~
e
S e t
t l a s
' ~ , a
c c ~ y
L
~v~
~e
t h e
T n 3
s t ~ e
' ~ ,
~ 3 a
r ~ ~
t i f f
Y T # z
~ a { t
h e b a d
e p c ~
c s d e
n t
P r o f
e s s i
o n a l
T r u
s t e e
'
a n
d
~ C
a l l a
r y
A
.
~
a t e r
s k y ,
e ~
n d r
~
ater
s~~
,
o b
i n
~Ee e
r~k
y,e ~ f
f i - e y
T ~ t
e r s ~
C y an
dD ~
y l a ~
z
2
dzn
an,
a s b e
n e f i
c i a r
i e s
( t
h e
`
B e n e
f c i a
r i e s
' ~ ,
m u e s
f d s
a
nd
e s
t a E e s
i
u
i t s
e
nd
h a
t
e r
t a i a 3
T
r n s t
A g
r e , ~
z n e n t
of
t i e T F U S t
,
d
a t e d
a
s
of
At ~
zs t 2
9,
2
30 8
a s
~o
a m e r
~ c ~ e
d , 3 z e
t ? r i
g ~ z a
l
~ r
~ s t
Ag
reem
e nt
".
C
a g i t
a ~ i z
e d
t e r
m s
u s
e d b i
t
n o
t
a
t h e ~
w i s
e
d
ee
d
e r
e i a ~ a i
.
la
ve
i e
me an
ings
e t
a r t
i t
i n
t
h e
Lo
an
p p l
i c a t
i o n
and
A
gre
e men
t
a
s
d e f i
n e d
h e
r e i n
}
.
Vi' ~'~'I~~SSE'i`l ~:
W
HER
EA
S h e
S e t # I
o r
a ~ t
d
i S
s e
T n
z s t e
e
d
t ~ i y
d
e c t a r
e c i
a
nd e s
t a b l i
s h e d
L i e
HA
.L
T~A
TE R
SKY
I
RR
EVQ
CAB
LE
I
FE
~ t S L T
i Z . A
. 3 ~ T C
E TR
UST
i r
e
Tz~
'}
u r s u
a n t
t ~
i h ~
4~
gina
t
r u s t
.