Case 1:05-cv-21169-KMM Document 1 Entered on FLSD Docket 04/29/2005 Page 1 of

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 05 ^21169 V MOORE. SAMUEL PUTERMAN, individually and for all WG1STRATE JUDGI those similarly situated, GARBER

Plaintiffs,

V.

LEHMAN BROTHERS , INC.,a New York Corporation ; LYNCH & CO., INC.., RAYMOND JAMES , INC. and HSBC , U.S.A.,

Defendants

CLASS ACTION COMPLAINT

Plaintiff Samuel Puterman, individually and on behalf of all those similarly situated, hereby

sues Defendants Lehman Brothers , Inc.; Merrill Lynch & Co., Inc.;

Services , Inc.; and HSBC Bank, U.S.A., for aiding and abetting common law fraud.

INTRODUCTION

1. Defendants are financial institutions which, through their direct participation with

and substantial assistance to individuals and entities currently the subject of an enforcement action

in this District by the United States Securities and Exchange Commission ("SEC"), ' aided and

P Securities and Exchange Commission v. Pension Fund ofAmerica et al., No. 05-20863 Civ- Moore. (S. D. Fla.)

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abetted a massive fraud upon thousands of investors, including Plaintiff and the Class Members he

represents, involving millions of dollars, procured through the sale of purported "retirement plans"

that combine life and investments in mutual funds issued or sold by Defendants Lehman,

Merrill Lynch Raymond James, and HSBC.

2. On March 28, 2005, the SEC filed a Complaint for Injunctive and Other Relief. That

same day, the Honorable Michael Moore entered a Temporary Restraining Order and Other

Emergency Relief. It was only with the filing of the SEC's action on March 28, 2005 that the

Plaintiff and the Class Members he represents became aware of PFA' s fraud and the true nature of

substantial assistance provided by Defendants to PFA in perpetrating its fraud.

PARTIES

3. Plaintiff Samuel Puterman is a citizen of the nation of Venezuela, who, on June 7,

2001 purchased a Capital Plan from Pension Fund of America.

4. Defendant Merrill Lynch is a national financial management and advisory company

with its principal place of business located in New York, New York, which is registered to do

business in Florida with offices in Miami-Dade County.

5. Defendant Lehman Brothers, Inc. is a national banking institution with its principal

place of business in New York, New York, which is registered to do business in Florida with offices

in Miami-Dade County.

6. Defendant Raymond James Financial Services is a Florida corporation with its

principal place of business in St. Petersburg, Florida and offices in Miami-Dade County, Florida.

7. Defendant HSBC Bank U.S.A. is a national banking institution with its principal

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place of business in Buffalo , New York, and at all times material to this action, was registered to do

business in Florida with offices in Miami-Dade County.

JURISDICTION & VENUE

8. This Court has diversity jurisdiction pursuant to 28 U.S.C. § 1331, as there is

complete diversity between the parties and the amount in controversy exceeds the sum of $75,000,

exclusive of costs and interest.

9. This Court has personal jurisdiction over all Defendants as each has offices in Miami-

Dade County and is registered to do and is doing business in this District.

10. Venue is proper in the Southern District of Florida because Defendants' acts and

omissions, as well as the transactions giving rise to Defendants' liability, occurred in the Southern

District of Florida.

CLASS ALLEGATIONS

11. Plaintiff brings this action as a class action against all Defendants pursuant to Rule

23 (a) and (b) (3) of the Federal Rules of Civil Procedure on behalf of the following class:

All persons who purchased retirement trust plans from or otherwise invested in PFA between January 1, 1999 and March 28, 2005.

Excluded from the Class are Pension Fund of America, L.C., PFA Assurance Group, Ltd., PFA

International , Ltd., Claren, TPA, LLC, Luis Cornide, Robert De La Riva and their employees or

agents and members of their immediate family, as well as the Defendant entities and all employees,

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officers, or agents of the Defendants and their subsidiaries and affiliates.

12. The Plaintiff Class includes over 3,000 investors residing throughout the world and

its members are therefore so numerous that joinder of all Class Members is impracticable.

13. Plaintiff's claims are typical of the claims of the Class Members. All class members

sustained damages arising out of Defendants' wrongful conduct in violation of common law.

14. Plaintiffwill fairly and adequately protect the interests of all class members and have

retained counsel competent and experienced in class and commercial fraud litigation.

15. There are questions of law and fact common to the Class that predominate over any

questions solely affecting individual class members. Among the questions of law and fact common

to all Class Members are:

a. whether Defendants aided and abetted the commission of fraud by using, or allowing

PFA to use their seals, stamps, templates, and investment certificates to perpetrate a fraud upon

Plaintiffs and profited therefrom;

b. whether Defendants were aware of the material misrepresentations made to the

Plaintiff Class regarding their role in investments being made by Class Members with PFA and

whether they profited therefrom;

c. whether Defendants rendered, by various means, substantial assistance to PFA in

perpetrating a fraud on Plaintiffs.

d. whether the Plaintiffclass suffered damages as a result of Defendants' knowledge of

and participation in, or substantial assistance with regard to, the fraud perpetrated on Plaintiffs by

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PFA.

16. A class action is superior to other available methods for the fair and efficient

adjudication of this controversy because joinder of Class Members is impracticable. Furthermore,

the cost and burden of individual litigation make it impossible for each Class Member, to

individually bring suit against the Defendants.

PFA'S FRAUD ON THE PLAINTIFF CLASS

17. Pension Fund ofAmerica is a Florida corporation with its principal place of business

located in Coral Gables, Florida. Since 1999, up to and until March 28, 2005, when the SEC filed

its enforcement action and obtained a temporary restraining order, Pension Fund of America sold

what it claimed were retirement trusts to investors throughout the world, principally residing in Latin

America. During that time, upon information and belief, Pension Fund of America defrauded more

than 3,400 investors of at least $127 million through the sales of purported retirement plans.

18. Pension Fund ofAmerica L.C. and PFA Assurance Group Pension Fund ofAmerica,

LC and PFA Assurance Group, Ltd., (collectively, "PFA") are unregistered investment advisers that

operated in Coral Gables, Florida. With affiliated entities, PFA International, Inc. and Claren, TPA,

and their principals Luis Cornide and Robert de la Riva., PFA engaged in an ongoing offering fraud

that targeted Plaintiff and the Class Members he represents.

19. From January 1, 1999 to the present, PFA, its affiliates and its principals , Cornide and

de la Riva, defrauded over 3,000 investors, through the sale of "retirement trust plans" that

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purportedly combined life insurance and investments in mutual funds purchased through U.S.

and broker-dealers, including the Defendant entities. Through a network of over 500 sales agents

in Central and South America, PFA promoted the investment as a "trust" plan, assuring prospective

investors that their funds were secure because they are held and invested by large and well-

established U.S. banks and broker-dealers , including the Defendant entities, who would act as

"trustees" or "custodians" of investors' funds.

20. Through its agents and brokers, PFA traveled throughout Central and South America,

offering two retirement trust plans : The Liberty Trust, which was a monthly or annual contribution

plan, and The Capital Trust, which was a one-time contribution plan. The Liberty Trust Plan

required annual contributions of between $1000 and $20,000 for ten to fifteen years and imposed

significant early withdrawal penalties. The Capital Trust was a ten-year plan that required a

minimum one-time contribution of $10,000. The investment component of both plans provided

investors with a choice of eight mutual funds offered by U.S. mutual fund companies such as

Fidelity, , Janus and . At the direction of Cornide and de la Riva, PFA

chose the mutual funds used in the investment plans, both ofwhich included a minimum of $15,000

fixed-term life insurance for a fifteen-year term.

21. PFA affiliated itself with Defendants Lehman Brothers, Merrill Lynch, Raymond

James and HSBC and touted its relationship with these financial institutions in presentations and

marketing materials provided to potential investors, including Plaintiff and the Class Members he

represents.

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22. PFA provided potential investors, including Plaintiff and the Class Members he

represents, with brochures in English and Spanish that described the products, and with an Investor

Application. The Investor Application included a list of eight mutual funds from which the investor

could choose.

23. Investors, including Plaintiff and the Class Members he represents, completed and

signed the Investor Application and either mailed or personally delivered it to the brokers or agents

with a check or payment.

24. Contrary to assurances from PFA that their money would be used to purchase mutual

funds to be held by the Defendant entities as "trustees" or "custodians", PFA misappropriated almost

all of their clients ' investments . Upon information and belief, Cornide and de la Riva

misappropriated at least $15 million of investors funds for themselves after using as much as 90%

of the Plaintiff' s and class members ' funds for sales agents ' commissions, administrative fees and

other costs.

25. Documents pertaining to The Capital Plan show that PFA charged investors average

fees of 30% on each investment : 15% as commissions and 15% as net profits to PFA. PFA did not

disclose to Plaintiff and the Class Members he represents in any of its brochures or the Investor

Application either before or after Plaintiff and the Class Members he represents paid their money

to PFA the actual amount of commissions , fees, and costs.

26. PFA also deceived Plaintiffs into making subsequent plan contributions by creating

and mailing false annual statements which purport to show an investor's total investment, amount

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or final balance. Those statements only show the total initial investment paid by but do not reveal

the fees or commissions that PFA and its principals took for themselves and never actually invested,

and thus vastly overstate the actual amount of Plaintiffs' holdings.

27. As a marketing tool, PFA touted its affiliations with the Defendant entities that were

held out to investors as "trustees" or "custodians" ofPlaintiffs' accounts, promising Plaintiff and the

Class Members he represents "total safety, because the money deposits are received directly by

Defendant, HSBC Bank, USA," and referring to Defendants Lehman Brothers and Merrill Lynch and

Raymond James as "trustees" and "trustee banks." The offering materials referred to HSBC as "the

second largest in the world"; described it as "a bank that has been in existence for

more than 100 years"; and that "PFA and HSBC Bank USA have created the Capital Trust Plan with

which you can create a fund: Under a trust administered by HSBC Bank USA."

28. PFA' s promotional materials referred to Raymond James Financial Services as a

"custodial bank."

29. The brochures presented to Plaintiffs that promoted PFA products listed Defendant

Merrill Lynch as a "trustee" and "trustee bank"

30. Those Plaintiffs who "chose" Lehman Brothers as their investment firm to hold

their funds in trust were issued certificates that contained the language "Lehman Brothers as Trustee"

with a "Lehman Brothers" stamp over a signature.

31. Those Plaintiffs who "chose" Merrill Lynch as their investment firm to hold their

funds in trust were issued certificates that bore Merrill Lynch seals next to the "Authorized Official"

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signature for a Merrill Lynch official.

32. Those Plaintiffs who "chose" HSBC as their banking institution to hold their funds

in trust were issued certificates that included the language "HSBC Bank, USA, as Trustee."

33. However, PFA never opened individual accounts for Plaintiff and the Class

Members he represents. Instead, PFA merely opened or brokerage accounts in the

name of "Pension Fund" with Defendants and deposited in those accounts millions of dollars of

Plaintiffs' funds and pooled investor money. On information and belief, Defendants knew that the

structure of these accounts were contrary to the representations made to Plaintiff and the Class

Members.

34. Under the terms of the Master Trust Agreement, HSBC was obligated to provide

separate and individual sub accounts for Plaintiff and each Class Member he represents, with each

account titled in the name of that individual. HSBC was also obligated to insure that Plaintiff's

funds and the funds of all Class Members he represents were invested in the manner represented in

the offering materials and promotional solicitation documents.

35. At no point did HSBC serve as trustee for Plaintiff' s investment funds. Instead,

HSBC simply pooled Plaintiff's funds as well as those of the Class Members he represents.

36. Upon information and belief, Raymond James and HSBC had direct knowledge of

PFA's ongoing fraud. Raymond James and HSBC maintained a "gross premium account" for PFA,

which received the investment funds from Plaintiffs and held those funds until PFA instructed them

how to apportion the funds between one account to hold "investments" and a second fund,

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designated an PFA Assurance' s "operating account," from which to pay insurance and "expenses."

Upon information and belief, those "expenses" exceeded the majority of Plaintiff's investments.

37. Upon information and belief, Raymond James and HSBC acted upon PFA's

instructions by weekly transmittals , and at the direction ofPFA, apportioned the Plaintiffs ' funds into

the "investment account" and PFA Assurance' s "operating account."

38. Upon information and belief, each week PFA directed Raymond James and HSBC

to transfer funds to a third account, the PFA International account, which then paid the sales agents'

exorbitant commissions.

39. Upon information and belief, Raymond James and HSBC were aware of the

exorbitant costs and expenses diverted from Plaintiffs' investments to Cornide and de la Riva and

the exorbitant commissions diverted from Plaintiffs' investments to agent sellers out of the

"operating account."

40. PFA also failed to disclose to Plaintiff and the Class Members he represents front-

load fees, a form of sales-agent commissions, of up to 6.5% per mutual fund, and failed to disclose

to Plaintiff and the Class Members he represents that they had a choice of obtaining mutual fund

shares at significantly lower rates.

41. Upon information and belief, from January 1999 to the present, Comide and de la

Riva received payments from PFA totaling $15 million, roughly 35% of the $43 million in revenue

that PFA recorded for the same period.

42. Through the use ofDefendants Lehman Brothers', Merrill Lynch's, Raymond James'

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and HSBC's templates, investment certificates, stamps, seals, and other indicia of financial

trustworthiness and stability, Defendants and PFA led thousands ofinvestors , including Plaintiff and

the Class Members he represents, to believe that the retirement funds were held in trust in reputable

financial institutions.

43. Instead, Plaintiff's funds and those of the Class Members he represents went into

standard accounts at these institutions. These pooled accounts consisted of millions of dollars that

directly benefitted these Defendants, PFA, and PFA's principals and employees, and defrauded

Plaintiff and the Class Members he represents of their investment funds.

44. Plaintiff and the Class Members he represented relied upon the fraudulent

representations made by PFA and PFA' s principals , agents and employees in investing over 127

million dollars.

45. The actions of Pension Fund of America, L.C., PFA Assurance Group, Ltd., PFA

International , Ltd., Claren TPA, LLC, Luis M. Cornide and Robert de la Riva constitute fraud under

the common law of Florida.

COUNT I: AIDING AND ABETTING COMMON LAW FRAUD

46. Plaintiffs incorporate and reallege Paragraphs 1 - 45 above.

47. PFA and its affiliated entities were engaged in a wide-spread scheme to defraud

Plaintiff and the Class Members he represents.

48. Defendants Lehman Brothers , Merrill Lynch, Raymond James and HSBC Bank,

were aware of PFA' s and its affiliated entities ' fraudulent scheme to defraud Plaintiff and the Class

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Members he represents through the sale of purported "retirement trusts". Specifically, on

information and belief, Defendants were aware of the undisclosed commissions and fees being

charged to Plaintiff and the Class Members he represented; were aware that the structure of the

accounts established by PFA were materially different than as had been represented to Plaintiff and

the Class Members he represents; and were aware of the Defendants holding them out as "trustees'

and "custodians" of the entire investment made by Plaintiff and the Class Members he represents.

49. Defendants Lehman Brothers, Merrill Lynch, Raymond James and HSBC Bank,

rendered substantial assistance to PFA and its affiliated entities by allowing them to use their

templates, investment certificates, stamps, seals, and other indicia of financial trustworthiness and

stability in the promotional materials that PFA and its agents and brokers presented to Plaintiff and

the Class Members he represents in order to secure and retain their investment funds.

50. For Plaintiffs who "chose" Lehman Brothers as their investment firm, they were

issued certificates that contained Lehman Brothers seals next to the "Authorized Official" signature

for a Lehman Brothers official.

51. For Plaintiffs who "chose" Merrill Lynch as their investment firm, they were issued

certificates that contained Merrill Lynch seals next to the "Authorized Official" signature for a

Merrill Lynch official.

52. For Plaintiffs who "chose" HSBC as their banking institution, they were issued

certificates that included the language "HSBC Bank, USA, as Trustee."

53. But for the indicia of financial trustworthiness and stability provided by the use of

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Defendants' templates, investment certificates, stamps, seals, and other indicia of financial

trustworthiness and stability, Plaintiff and the Class Members he represents would not have

purchased PFA's false retirement trust plans and/or would not have continued to add funds to their

accounts.

54. Defendants also knowingly allowed accounts to be opened that were contrary to the

structure represented to Plaintiffs.

55. Named Plaintiff Samuel Puterman purchased Capital Plan Policy No. LB-2001131-

VE-14 from Pension Fund for the sum of $100,000 on June 7, 2001, in Caracas, Venezuela.

56. The brochures presented to Mr. Puterman that promoted PFA products listed

Defendant Lehman Brothers as a "trustee" and "trustee bank."

57. Mr. Puterman would not have purchased his Capital Plan Policy had Lehman

Brothers not been listed on the promotional materials as a trustee bank, as PFA was not known to

Mr. Puterman as an established investment company, and the presence of Lehman Brothers, which

Plaintiff knew to be a reputable financial institution with a long and favorable track record for its

investment customers, assured Mr. Puterman that his investment funds would be safe.

58. Mr. Puterman received account statements from PFA between June 2001 and June

2003 that listed Lehman Brothers as the "Custodial Bank," which provided further assurance that

his funds remained in trust in a reputable institution.

59. Upon information and belief, Lehman Brothers and Merrill Lynch, Raymond James

and HSBC knew of PFA' s ongoing fraudulent scheme as they was aware that only a fraction of the

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funds entrusted to PFA by Plaintiffs and the Class Members he represents were being deposited in

its accounts.

60. Upon information and belief, Lehman Brothers, Merrill Lynch, Raymond James and

HSBC were aware that the funds "invested" on behalf of the Plaintiffs were substantially less than

the funds delivered to PFA by Plaintiffs.

61. Upon information and belief, Lehman Brothers, Merrill Lynch, Raymond James and

HSBC were aware that the yearly statements provided to Plaintiffs did not reflect the actual amount

of funds present in the investment accounts, and that the actual amount of funds present in the

investment accounts was in fact a mere fraction of the amounts that Plaintiffs had entrusted to PFA.

62. Upon information and belief, Defendants Lehman Brothers, Merrill Lynch, Raymond

James and HSBC knew or, in the exercise ofreasonable care, should have known of PFA's ongoing

fraudulent scheme based upon Defendants' knowledge of and participation in the atypical

transactions described above. Those transactions involved startlingly large commissions paid from

Defendants' accounts to foreign brokers from funds coming from overseas, and atypically large

payments and withdrawals made directly from the Lehman Brothers, Merrill Lynch, Raymond James

and HSBC accounts to PFA's principals Luis Cornide and Robert de la Riva at their direction, from

funds labeled held by Defendants as "Pension Funds."

63. On October 27, 2003, Plaintiffwas informed by letter bearing HSBC's letterhead and

signed by Joseph Brennan, Vice President of HSBC, that "Pension Fund of America has signed a

Master Trust Agreement with HSBC Bank USA," and that pursuant to that agreement, "HSBC Bank

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will serve as Trustee under directions from PFA with regard to the Investment Component of PFA's

agreement with you." At no point did HSBC serve as trustee for Plaintiff's investment funds. Mr.

Brennan's letter did not fully disclose all the material facts about PFA then known to HSBC, leading

Plaintiff into a false sense of about his investment.

64. On November 11, 2003, Plaintiff was informed by letter from PFA prepared on PFA

letterhead that his Capital Plan purchased from PFA had been transferred to "HSBC Bank USA [and]

Raymond James." Raymond James was described in the letter as one of the largest financial and

banking firms in the United States. At no point did either HSBC or Raymond James serve as trustee

for Plaintiff's investment funds.

65. Defendants knew or, in the exercise of reasonable care, should have known, due to

the designation of the accounts as "Pension Fund"; due to the enormous sums of money that were

deposited in those accounts; due to the foreign source ofthose enormous amounts ofmoney; and due

to the atypical transactions and payments to Cornide and de la Riva, that heightened scrutiny ofthese

transactions was mandated. Instead of scrutinizing these "Pension Funds," Defendants reaped the

benefits of the millions of dollars that were deposited in their institutions and allowed PFA to

continue to bilk millions of dollars from Plaintiffs through the use of Defendants' templates,

investment certificates, stamps, seals, and other indicia of financial trustworthiness and stability.

66. Defendants' reckless lack of diligence and failure to scrutinize PFA's "Pension

Fund" resulted in PFA's continued use of the Defendant institution ' s seals, stamps , and templates

that bore the names and corporate trademarks of Defendants.

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61. Defendants' imprimatur of legitimacy lured Plaintiffs into purchasing PFA's

fraudulent retirement "trusts"; and/or adding to those funds; and/or allowing their funds to remain

in those false "trust" accounts, as Plaintiffs relied upon the continued promises of financial stability

and the backing of reputable investment and banking institutions represented by the seals, stamps,

and templates of Defendants' institutions.

62. As a direct result of Defendants' actions and their reckless failure to act, Plaintiffs

have lost millions of dollars in investment funds.

DEMAND FOR JURY TRIAL

Plaintiffs request a jury trial on all counts for which a jury trial is permitted by law.

RELIEF REQUESTED

WHEREFORE, Plaintiff, on his own behalf and on behalfofthe Class, respectfully request

that this Court (A) Certify this action as a class action under Fed. R. Civ. P. 23; (B) Award Plaintiffs

their compensatory damages against Defendants including pre-judgment interest; (C) Award

Plaintiffs punitive damages; (D) Award Plaintiffs their attorney's fees, costs, and expenses; (E)

Award Plaintiffs such other and further relief as this Court deems appropriate in the interests of

justice.

DATED this?, day of April, 2005.

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Respectfully Submitted,

Counsel for Plaintiff and the Plaintiff Class

CARLOS VELASQUEZ, P.A. PODHURST, ORSECK, P.A. Carlos Velasquez, Esq. 25 W. Flagler Street, Suite 800 8181 West Broward Boulevard Miami, Florida 33130 Suite 380 Tel: (305) 358-2800 Plantation, Florida 33324 Fax: (305) 358-2^3 Tel: (954) 916-4793 Fax: (954) 916,4792 r By: or M -i)laz, Jr. Bar, No. 5038Q

Fla. Bar No. 305601

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PodhurstOrseck 25 West Hagler Street, Suite 800, Miami, FL 33130, Miami 305.358.2800 Fax 305.358.2582 • Fort Lauderdale 954.463.4346 www.podhuist.com JS as (±^^`YLY^36`r 1:05-cv-21169-KMM Do r^^..t 1 td,%^ cket 04/29/2005 Page 18 of 18r] (Rev, V L c (JV t H ^yt The JS- 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form , approved by the Judicial Conference of the United States in September 1974. is requied 1cr the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE 0 T RM.) 1. (a) PLAINTIFFS -DEFENDANTS =8 21169 Lehman Brothers, In . Samuel Puternax1 . , -, ., •, r, : 1"J^rrill Lynch & Co., Tnc. oO Rayrrond James Financial Services, ZA' Resident of .;; BC Bank, U.S.A. (b) COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT IiaMi-Dade (EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S PLAINTIFF CASES ONL NOTE. IN LAND CONDEMNATION CASES . USE THE LC t ^~, n c - 2 rC/u- /11 ' / Lo_ TRACT OF LAND INVOLVED. 1CDE^ 'r 1

( C) ATTORNEYA (FIRM NAME ADDRESS . AND TELEPHONE NUMBER) 1 J ATTORNEYS ( IF KNOWN) Victor 14. Diaz, Jr., Esq., Podhurst, Orseck, P. 25 W. Flagler St., #800, Miami, FL 33130

l,JVJ JJU-GUV (d) CIRCLE COUNTY WHERE ACTION AROSE ' AD , MONROE . BROWARD. PALM BEACH , MARTIN, ST. LUCIE, INDIAN RIVER . OKEECHOBEE HIGHLANDS

If. BASIS OF JURISDICTION (PLACE AN -X IN ONE BOX ONLY) 111. CITIZENSHIP OF PRINCIPAL PARTIES (PLACE AN 'X' IN ONE BOX FOR PLNNTIFF (For Diversity Cases Only) AND ONE BOX FOR DEFENDANT) PTF DEF PTF DEF q 1 U.S. Government q 3 Federal Question Citizen of This State q 1 q 1 ' Incorporated or Principal Place q a q 4 Plaintiff (U.S. Government Not a Party) of Business In This State q 2 U.S. Government ) /Diversity Citizen of Another State q 2 q 2 Incorporated and Principal Place q 5 q 5 Defendant (Indicate Citizenship of Parties of Business In Another State in Item 111) Citizen or Subject of a I q 3 Foreign Nation q e q s

IV. ORIGIN (PLACE AN "X" IN ONE BOX ONLY) Appeal to District Transferred from Judge from Original q 2 Removed from q 7 Remanded from q 4 Reinstated or q s another district q s Multidistrict q 7 Magtstale Proceeding State Court Appellate Court Reopened (specify) Litigation Judgment V. NATURE OF SUIT (PLACE AN "X" IN ONE BOX ONLY) A CONTRACT A TORTS FORFEITURE/PENALTY A BANKRUPTCY A OTHER STATUTES q 110 Insurance PERSONAL INJURY PERSONAL INJURY 610 Agriculture q 422 Appeal 28 USC 158 q 400 State Reapportionment q 120 Marine q 310 Airplane q 362 Personal Injury - {20 Other Food & Drug q 410 Antitrust q 130 Miller Act 0 31S Airplane Product Med. Malpractice 8042S Drug Related Seizure q 423 Withdrawal q 470 Banks and Banking q 140 Negotiable Instrument Liability 0365 Personal Injury - of Property 21 USC Sal 28 USC 157 00 4S0 Commerce= RAesMc. q 1S0 Recovery of Overpayment q 320 Assault . Libel & Product Liability 9 q {30 Liquor Laws q 4{0 Deportation & Enforcement of Judgment Slander 0 3{{ Asbestos Personal 80 $40 RR & Truck A PROPERTY RIGHTS q 470 Racketeer Influenced and q 1S1 Medicare Act q 330 Federal Employers Injury Product Liability SO {be Airline Pegs Corrupt Organizaalons Copyrights C 1S2 Recovery of Defaulted Liability {{0 Occupational q $20 q $10 SeNaM Service q NO Patent Student Loans q 345 Marine Pf0SON FraudPROPERTY q s s. mmotlltNS! , Excl Veterans) {40 Trademark q 745 Manne Product x/770 Other Fraud 80 11160 Otherp1Mr EKCherExchange 0 153 Recovery of Overpayment Liability 0 371 Truth in Lend ing q 875 Customer challenge other of veteran s Benefits q 3S0 Motor Vehicle q 3{0 Personal A LABOR B SOCIAL SECURITY 12 USC 3410 111111111 Stkholdersoc Suits q 3SS Motor Vehicle Ply Damage q 891 Agricultural Acts 190 Other Contract Product Liability q 395 Property Damage q 710 Fair Labor Standards q N1 NIA 113951f) q {{Q Economic Stabilization Act 7{S Contract Product Liability q 3{0 Other Personal Injury Product UabOM Act q N2 Black Lung (923) q {q Environmental Myers 720 laDOrMlgmt Relations 0 80 q {f4 Energy Allocation Act q ^ erdom A REAL PROPERTY A CIVIL RIGHTS PRISONER PETITIONS ThtkeXVI q {ts Free of q 730 Labor/Mgmt Reporting [3 $45 RSI 14051g11 information Act 1 210 Land Condemnation q 111 Voting 00 510 Motions to Vacate & Disclosure Act q 900 Appeal of Fee Determination 220 q 442 Employment q Sentence Foreclosure q 740 Rahway Labor Act Under Equal Access to Justice 230 Rem Lease a Ejectment q 443 rausinw HABEAS CORPUS: FEDERAL TAX SUITS General q 950 Constitutionality of O 240 Torts to Lana Accommodations e q s70 A0 '7S Death Penalty q 780 Other Labor Litigation Stale q 245 Ton Product Liability q 444 WWfan A0 $70 Taxes (U.S. Plaintiff mutes q Ra^ & Other Defendant) 0 890 Other Statutory Action 290 All Other Real Property q 410 Other CMI Rights CMMa A q B 80 S40 711 Empl Rel . Inc ace 871 R> - Third Pa" SSS Prison Condition Security Act 26 USC 7009

VI. CAUSE OF ACTION (CITE THE US CML STATUTE UNDER WHICH YOU ARE FILING AND WRITE BRIEF STATEMENT OF CAUSE. DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY) Aiding and Abetting Corrmn Law Fraud

LENGTH OF TRIAL via-delis a tlmned par bolt shims to try erdwe ceae) VII. REQUESTED IN DEMAND $ CHECK YES only if demargdd in complaint: HECK IF CLASS ACTION q COMPLAIN1UNER F. .CIS 23A JURY DEMAND: YES No

VIII.RELATED CASE (S) (see insm,ctions): K. Michael r e 05-20863-Civ-Mloor_e JUDGE DOCKET NUMBER IF ANY 05 -23103 ^vsHerr_ DATE SIGNATURE OF ROR 4/28/05 Victor M. Diaz, Jr., Esq.

FOR OFFICE USE ONLY

RECEIPT M AMOUNT APPLYING IFR JUDGE /3 D MAGUOGE^ / ^

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