CVLR Performance Horses, Inc. v. Wynne et al

Filing 67

MEMORANDUM OPINION. Signed by Judge Norman K. Moon on April 2, 2012. (sfc)

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CLERK' OFFI ' DI COUX : CE 3. BX I .w ..A'L . * I YNGF URQ VA ' L u. FE D , & ' ' I r cxl o sn u soll c, covu' x,us u sw r r AF2 C 2 1 02 FoR THE W ESTERN D I STRI OF V I NI J u c. ù ', . CT RGI A u i y LYNCHBURG DI SON VI I BY; PU7Y ' CV LR PERFORMANCE HORSES,I , NC. CAS NO.6: cvE 11- 00035 Pl nt ai f M EM OR AND UM OPI ON NI V. J m L. YNNE,ET AL. Ol W , J UDGEN ORM AN K . OON M De ant. #nd s Thi ac i ars out of busi s de i and fnanci t ans i be s ton ies nes alngs i al r actons en t he Plitfl CVLR Peror nc Hore, l (t anit f ma e ss nc. $ CVLR', a vai b i s e t 's a ' nd rous usnes nie nd ) i vi l . Pr vi l I c ndu t d a he rng on De e da s orgi m otons t dim is ndi dua s e ousy, o c e ai f n nt ' i nal i o s s CVLR' c aitpurua tt Fe r Rul ofCi lPr e ur l b)6) Att ttme Iookt S ompl n s n o deal e vi oc d e 2( ( . ha i , he m otons under adviem entupon CVLR ' r es aton t t i w ihed t am end is co pl nt i s S epr ent i ha t s o t ai . Eve ua l lgr n e CVLR l a t a e isc pl i t de e t o i na m otonst dim i s nt ly, a t d e ve o m nd t om a n , ni d he rgi l i o s s a m o ,a d pe m it d D e e n st r n w t i m o i nst di m is The e fe , CVLR tl a s ot n r te f nda t o e e he r to o s s . r a t r ied n amended com pl nt i whi i s ai n ch t eeks com pens t y dam ages as wel as equiabl r i . a or l t elef Def n nt s e n l r ne d t i m otonst dim is e da s ubs que ty e we he r i o s s . CV LR bri a cl m under t Racket l l ngs ai he eer nfuenced and Corupt Or za i ns Act r gani t (( CO',1 U. C.jj 1 61 968 l a diin,CVLR asrssaelw cli frb e c of E Rl ' 8 S. ) 9 -1 . n d to set tt a ams o a h c n r c , t to i e f r nc w ih t pe f r a e of c t a t and busi s cons acy i o t a t ori us nt r e e e t he r o m nc on r c , nes p' n vi ain ofVigi a Code j 1 2olto r ni 8. 499. Ho v r my iquiy be nsand e ds wih t RI we e , n r gi n t h CO cl m ,whi h I fnd i unsupportd by CVLR ' f ual alega i , and w ihout whi I l ai c i s e S act l tons t c ack j rs ci ove t smatr Ac odi y frt ra o t tf l Iwil s s tec s uiditon rhi te. c r ngl, o he e s ns ha olow, ldimis h e . 1.BACKGROUND Atneary 60 pages a 189 par aphs i I h,CVLR' a e l nd agr n engt S m nded compl nt oes not ai l is ft a conci e s m ar N evert es ,lw ilendeavort r at t m uliude of f s end t el o s um y. hel s l o est e he tt act aleged,whi a t ss age lm us acceptast ue. l ch t hi t t r A.Fact R el i t t Purchas oft Ri ng Cent Propert s atng o he e he di er y I lt 2006 Cr tlRi r (' .Ries),t prsde ofCVLR,viie t fieof n ae , ysa ves $ Ms v r' he e i nt std he fc J hnW y ($ .Wynn ' i rs s t a a rie n f t rntlofpat eln At o nne ç Mr e' n epon e o n dvetsme t or he e a ) sur d. t tm e,M r W ynne w ast pr dentofThe Ri he i . he esi vennontBanki Com pany,l ,w hi i now ng nc. c s kn asRi r ntCo ula s l .(d vemon l t c s oft rc ra on,Mr own vemo ns tnt, nc d r f). n he oure hei onvest Ri . W y ne r p es nt d t M s Ri e s t tRi r o wa a b nk a he a e d,ose i y o be l n e r e e o . v r ha ve m nt s a nd gr e t ns bl ha f of Ri m ont t fna t pur e of r esat a equi ent f CV LR' hors rdi ver , o i nce he chas eal t e nd pm or S i ng busnes i s. On Oco r 1 200 Mr Wyn c ntce Chals Danel (t .Dane1',t tbe 2, 7, . ne o a td re r l E Mr r ' he ) prsde ofOl Domi on Nai lBa (d d Do ni ),t iquie a ta l . Mr ei nt d ni tona nk çOl mi on' o n r bou o . W ynne t d M r. D ar l t t he had a cont a t pur e ri ng cent pr ry f ol nel ha r ct o chas di er op t or $47 000. Therdi c n e pr e t wask 5, 00. i ng e tr op ry nown a t See Cr e Ri ngCe e n was s he r ne e k di ntr d o d b S & R Fam,LLC (i & R Fa '. Ac or ngt CVLR,t tsae n w sfle; wne y r :S nn' ) c di o ha ttme t as M r W ynne had no s cont ac . How e ,M r Dar lpr par a El pr . uch r t ver . nel e ed toan esent ton, 'whi ai ch i cat t Ol D om i on w oul be fnanci 100% oft rdi cent pr t s r e ndi ed hat d ni d i ng he i ng er opery' chas prce. On Oct r 28,2007,M r.W ynne obt ned t sgnat es oft t o m em ber o S & R i obe ai he i ur he w s Fam,Rap Be k (( r Be k' a Sha aLetr(. .Lese) a wela Ms Ri s ona r lh c d . c ' nd nn se I M ) MS tr, s l s . ve , r est e contact under w hi S & R Far pr ied t s l t rdi cent pr ery t eal at r ch m om s o el he i ng er o t o (CVLR Peror C f mance H or orAssgnee.' The nextda O l D om i on appr ses i ' y, d ni oved t l n w ih he o t 2 t borower lsed as çan LLC t be f m ed' and t guar or ls e as M r W ynne nd M s he r it t o or ' he ant s it d . . Ri r ve s. CVLR aleges t tM s.Ri s s t l appr l ha ver aw he oan ovall t and t r es a e co tacton eter he eal t t r Nov m be 2,20 e r 07. A c o di t CVLR,M s Ri e s t oug t tt pur ha e woul be he c r ng o . v r h ht ha he c s r r cl el hel cor aton,CVLR, and t t (LLC t be f m ed,'of w hi s wo l be a os y d por i hat he S o or ' ch he d m ember woul tnance t s e by bor ow i t m oney fom Ol Dom i on. Fur er s , d i he al r ng he r d ni t , he t houghtt CVLR woul gi a Sm orgage' t t new LLC t s e is r hat d ve s t ' o he o ecur t epaym en of Ol d Dom i on' l ni s oan. M s.R i s di notknow t M r W ynne ha t d Ol Dom i on t at 1650 ver d hat . d ol d ni Pates LLC ($650Pat r' ape xitn LLC c tole byMr W y ,woul b t s e rn r, $1 rnes), re sig onr ld . nne d e he ol pur has c er. On N ovem ber 20, 2007, t cl ng on t s e of t rdi cent pr he osi he al he i ng er ope y was conduc ed,t r t ofwhi h was t conveyance oft pr t fom S & R Far o 1650 t he esul c he he opery r m Pa ner . Prort t cl ng,t oper i agr rt s i o he osi he atng eementf 1650 Part s was am ended t gi or ner o ve M s. Ri s a 0. % i er t i 1 ver 01 nt es n 650 Parner . At t cl ng, M s. Ri s si t s he osi ver gned varous i document t nki t tt pr s, hi ng ha he opert wasbei conveyed t CVLR and t CVLR w as i ng a y ng o hat vi (m orgage' f t rdi cent pr ry. M s.Ri s t d M r. W ynne t t t s i ha s E t ' or he i ng er ope t ver ol ha hi s t he t hought and he t d hert herundersandi w ascor ect , ol hat t ng r . B.Fact R el ng t S & R Farm ' Ale Breach ofCont s ati o s l ged ract S & R Far e er i o t O c ober28, 2007 r esat cont act pr i ng t s lt m nt ed nt he t eal t e r , om si o el he rdi cent pr i ng er opert t S y oI CVLR Peror ance Hor es or A s gnee.' H owever CVLR aleges f m s si ' , l t on November 13,2007,S & R Far diect is ator t pr e a deed conve i t hat m r ed t t ney o epar ng he pr t t 1 Parner i t ad. On Nove ber l , 2007,S & R Far ' m em ber opery o 650 t s ns e m 5 m s s, . Beck and M s.Les er exe ed t deed. CVLR m ai ai t i neveras gned ori ended t assgn t , cut he nt ns hat t si nt i 3 is c n r c u rgh t p c as t rdi c nt r p ope t a t t t r i no wrtng t o t a t al i t o ur h e he i ng e e r r y nd ha he e s ii consiutng s an as gnm ent However CVLR alegest tS & R Far neve hel s s d t tt i uch si . , l ha m rt es ol he pr t t 1650 Parner i br opery o t s n each oft contact As a r ul,CVLR cl m s i l tt beneft he r . es t ai t os h i ofisba gai t pur e t rdi cent aswel ast expect t r n o chas he i ng er l he ancy ofoper i i. atng t C.Fact Rel i t M r.W ynne' A cqui ton ofCVLR ' Insur e Proceed s atng o s sii S anc W or ng undert ass pton t i owned t ri ng cent pr t CVLR p r ed ki he um i hat t he di er opery, chas a g nea Ia iiy polc fo Ameia Ba kesl ua eCompa (W meia B kes), e rl ibl t iy rm rc n n r ns rnc ny E rc n r' coverng t rdi cent pr t and ls i O l Dom i on as t l payee. l ebr y i he i ng er opery itng d ni he oss n uar 20 w i da a e o cu r d a t r d ng c n e p op ry. The e fe ,CVLR fl d a i s a e 08, nd m g c r e t he i i e t r r e t r a tr ie n ur nc c a m wih Am e i a Ba r . Aûe t e esi a e f fxi g t da a we e ob a e a li t rc n nke s r hr e tm t s or i n he m ge r t i d nd s mitd Ame ia Ba e sa o d a pa me of$3800 00 t r part e ba n. ub te , rc n nk r ppr ve y nt , 0. o e i h r we r ve, M r W ynne t d CVLR t he coul ge G l W hie, a gener cont act w ih w om he . ol hat d t en t al r or t w or d,t do t wor f l s. CVLR agr t alow Gl W hie t do t w or ke o he k or es eed o l en t o he k. On Apr l7,2008,Am ercan Banke isued t SCV LR Pe f m ance Hor es, l nd Ol i i rs s oS r or s nc. d Domi o Na i lBa ' wo c e kst t ln $26309.4.On Ap i 20 M r W y e ie a nin tona nk't h c o aig , 2 rl , . nne m ld n em pl oyee ofO l Dom i on and r d ni equest t he Sge t i ur ed hat d t he ns ance pr oceeds r eas o lcan el ed r pai t buidi ' M r W ynne s a ed t tTerance W hie woul do t wor . He w ot t e r he l ngs.' . t t ha r t d he k e hat h ç xpete t c t t beao $1 0 00.Th rmani poc e wilb u e oma e ç cld) he oss o rund 0,00. e e e i ng r e ds l e s d ke ca t a tonst t pr t ' He alo wr e t tdIwoul hope you w oul putt p oceeds pial ddii o he opery.' s ot ha d d d he i o t 1 checki account.' Accor ng t CVLR , Gl W hie,t contact wh m M r nt he 650 ng ' di o enn t he r or . W ynne had r om m ended,cam e t t rdi ce er and began w or r ec o he i ng nt k econs r i t bar i t uctng he n n t s i of 2008. However he prng , h n ve fnihe te j b,a i ta usd sme o t e e r i s d h o nd nse d e o f he consr i m a eral i ended f t bar on anot com m er alw or t . tucton t i s nt or he n her ci ksie 4 CVLR f t rale st tMr Wynn sn afr d lte t t i urnc aj soro urhe lge ha . e e t oge etr o he ns a e d t n Sept be 18,2008. The l tr w as alegedl on t l t head of Gl W hie and wa sgned em r ete l y he eter en t i w ih t i tal EGD W .' The l t r t he nii s E ' eter equesed pa ent of atached i ces,paya t M r. t ym t nvoi bl o Wy n .Th lt rfley sae ta dl ep oeti c mpeea d CVLR,Ol Do n nNa' n e e et as l ttd h t t- rj c s o lt n e -h d mii tl Ba ka Mr W yn w/650PatesLLC wa st co et b o t sprj c. A c dng n nd . ne 1 rn r nt o ls he ook n hi oe t' ori ' t CVLR,t lteri a f ger because i i handwrten by M r.W ynne butpur t t be fom o he e t s or y ts it por s o r G ln W hie. The r r t t bar had notyetbeen com pl ed a CVLR,t nam ed i ur e t epais o he n et nd he ns ed, ha no a t i d t i urnc c a t cls t bo on t poe t The nvoie d t uhorze he ns a e omp ny o o e he ok he rjc. cs atac t t f wer f om i-erance W hie T/ W hie Consr ton,'but Teranc W hie t hed o he ax e r t r f t A t tuc i ' r t wasem pl oyed by M r W ynne and w asnota lcens contact . U li at y,i ur . i ed r or tm el ns ance r oceeds wer pai outt Ter ance W hie,w ho endor ed al oft checksovert Ri r ont e d o r t s 1 he o ve m . D.Fact R el i t t Purchas oft Ford F650 Truck s atng o he e he The f saleged i t sre d a e m any and conf ng. W hie Ihavet i t di ilt act l n hi gar r usi l red o s l hem a cl a l a pos i l ,pe f c cl rt i u tai a e. On Fe ua y 9,20 , M r.W ynn ,actng s e ry s s b e re t a iy s na t n bl br r 07 i f Ri m ont pl or ver , aced a buyer s or f a 2002 For F450 t uck at Batl i d or i ' der or d r tefel d n M a a s s Vigni The s lsprc oft tuc wa $ 5 00. The tuc wa tte i t e n s a , r i a. ae ie he r k s 26,00. r k s il n h nam e ofR i mont M r.W ynne and M s. Ri sagr ed t t t uck w as f t us o CVLR, ver . ver e hat he r or he e whih oper ed and i ur t vehi e. However t tuck had mechani pr em s and s c at ns ed he cl cal obl o , he r M r W ynne and M s.Ri sagr t t ade i i . . ver eed o r t n On M ay 8,2007,M s Ri scom pl ed a buyer sor f a 2006 For F650 t ck and . ver et ' der or d sgn d apr mis y not i fvoro Bate il Fo d i t a ntof$7 ,508. 1 A r pt i e o sor e n a f tlfed r n he mou 6 86. ecei ceriyi delver oft For F650 tuck t tBuyerCr t V it i Lee Ri 'w assi ed a tf ng i y he d r ot ysal c ora vers' nd 1Thet a dei rdprc wasi e ce sof$1 5 ' tBateil Fo d ga M s Ri r c e tf t ta e i otl lvee ie n x s 00000 bu tlfed r ve . ve s r di or he r -n vale oft e de e tv For F45 t c t ats a M r W yn ha pr vi usy p cha ed. u h f c i e d 0 nlk h he nd . ne d e o l ur s 5 gi n t M s.Ri s. An çA pplc i f Cerii t ofTil and Regitaton' was pr ar a ve o ver s i aton or tfca e te sr i ' ed t Batl i d For lsi t owner of t For F650 tuc as M s. Ri tefel d i tng he s he d r k vers and M r. W ynne. How e ,aE- por y Certfc eofTil 'wasi s t dcr t Vi ora Lee Ri s' ver d rem ar ii at te' s ued o d ys al ct i ver . OnMa 21 200 Ri r ta Mr W y (spate o t frtpat a C LR a y , 7, vemon nd . nne a ris f he is r) nd nd Ms Ri r (spa t oft sc pat e trd i o a t a e Loa a Co rc t Bu . ves a ri es he e ond r) nee nt te s , n, nd nta t o y Agr ent'dr eem ' ahed by M r.W ynne. By si ng i,CVLR agr t pay Ri r ont i er t of gni t eed o ve m n es 8. per annum on any m oney t CVLR borowed fom M r W ynne. The agr 5% hat r r . eem nt alo s r r CVLR t pay t prnci and i er t owed by M r.W ynne and Ri m on t M r equied o he i pal nt es ver o . W ynne' cr t i M r. W ynne bor ow ed m oney t pur s edior f r o chase equi ent t s l t CVLR. pm o el o Addii l t agr ent pr ded t t CVLR a M s. Ri s wer deem ed o have tonaly, he eem ovi ha nd ver e tborowed varous m oni ' and tagr ed t pur e cert n pi i r i es' d e o chas ai eces of equi entt i l 'a pm o n ude' 2002 For F450 tuc d r k. On J 18,2007,M r W ynne s a ha rten f x t Batl i d For s atng: une . ent ndw it a o tefel dti Thi i t dealas lunder t i pl e confr . lam gi ng Batl i d tte t s s he s and t eas im vi tefel il t 200 F450 wih ta i vau of$2767 27. I a alo t wie $1 , he 2 t rde n le , 3. m s o r 600 (i e nT'o a dDolas t Bat i d.Cr tlRiesi sg nga$6 5088 sxte h us n lrl o tl el ysa v r s ini ef 0, . po soyn t t b h l b Da i.OnJ l l2 0 Cr sa i t p yt a n t r misr oe o e ed y vd uy 0 7 y tls o a h t o o .Upo rc p o my $1 , wiet ve cewil tte i t na s J h ut n e eit f 6000 r he hll lbe lld n he me : o Lei W ynne a Cr t Vi ora Lei Ri s. gh nd ys al ct i gh ver The s m e da ,M s Ri r s nta f x t Ba te i l Fo d s yi t tM r W m n E spr a e t a y . ve s e a o tl fe d r a ng ha . e E e rd o i wie t a dii l$1 0 t a 1wils nd t e orgi lGu r nte ofTil & Til. lne d r he d tona 6,00 od y. l e h i na a a e te te e a ot rPr mis y No e f t r manig baa e $6050886. M on wilbe wie t yo n he o sor t or he e i n lnc , . ey l rd o u fom m e f t t am ount' Undert M ay 21 tleas , Loan and Contactt Buy Agr m e ,' r or ha ' he tw e r o e nt' M r W ynne had aleady com m it i w rtng t l hert m oney t pur e t t k. On . r ted n ii o oan he o chas he ru J ne 28 20 Ri r tpad $1 0 00 t Batefe d For Subs qu nty Batl i d For u , 07, ve mon i 6,00. o tl il d. e e l, tefe d p e rd anot t b sg d b M s Ri r i t a r pae e o e ine y . ves n he moun of$ ,508. t 60 86. 6 On Se e ber20,2007,Batl i d For w r e t M s.Ri rs i or i hert not ng pt m tefel d ot o ve , nf m ng hat hi had been pai on t ori nalpr i or not W hen s r ved t l t ,M s Ri s as d he gi om ss y e. he ecei he eter . ve ked M r W ynne w hy he had not pai Ba tefel For f t tuck. Alegedl as a r u t of her . d tl i d d or he r l y es ques i ng, on Sept ber 26, 2007, Ri m ont a i f a l fom BB& T E i ent toni em ver ppled or oan r pm Fi nc f t pur e of p yi Ba te i l Fo d t pu c s p i e oft For F6 0 tuc na e or he pos a ng tl fe d r he r ha e r c he d r k. M r W ynne f xed t BB&T a buyer' or s i t t pur e pr ce oft t c was . a o s der how ng hat he chas i he k $1 4, 5.4,bu Ri r talo r c i d a pa tci ton f e of $ 1 46 fo BB T. The 0 21 3 t vemon s e eve ri pai e 3,26. r m SBB& T Equi ent Fi S pm nance Loan and Securt Agr ent' s gned by Ri m ont equied iy eem ' i ver r CVLR t pa 7 e ual t yi t l n sf rat t la rit r s, $1 338.6. o y 2 q mon hl nsalme t o o a, ûe n e e t of 42, 9 A r pt ceriyi delver oft For F650 t uck t Ri m ontwas si ecei tf ng i y he d r o ver gned a d gi ven t M r. W ynne a Batl i d For on Sept ber 27, 2007. Thus t r pt ce ii t o t tefel d em , he ecei fed o Ri m ontdelver oft s ver i y he ame tuc t ha been certfed asdelver t M s.Ri s on M a r k hat d ii i ed o ver y 8,2007. Al on Sept m ber27,2007,M r.W ynne,actng f Ri m ont sgne an (O om et so e i or ver ,i d & er Dicl ur St em ent'satng t t m ieage on t odom et oft Ford 1650 tuck w s 3,936 s os e at ' t i hat he l he er he 7 r m ies. However CVLR alegest t s sat entwas pat l f s because t e w e e 3,936 l , l hat hi t em enty al e her m ies on t tuck on M ay 8, 2007 w hen M s. Ri s s gned t dodom e er D icl ur l he r ver i he s t os e St e ent'f t s e vehi e t s had drven t oughoutt s m erof2007. M r W ynne at m ' or he am cl hat he i hr he um . ha t tuc tted i t nam e ofRi m onton Sept ber27, 2007,des t t f t ti ha d he r k il n he ver em pie he act h t d aleady been tted i t nam e ofM s. Ri son M ay 8,2007. r il n he ver M r W ynne obt ned t beneft of t w arant f t tuck engi by . ai he i he r y or he r ne l ng owi Batl i d For t change t dat on t Cat pil tuck engi war ant r s r i n fom tefel d o he e he er lar r ne r y egitat r Ma 8 20 (hedaet tMs Ri r orgi ly sgn d t warnt f m)t Se e be 27 y , 07 t t ha . ves i nal i e he ra y or o pt r , 2007,and by dr i a lne t ough M s. Ri s' nam e and wrii twr sal i o' ne t aw ng i hr ver s tng i ong es nf ' xt o 7 hernam e. A ddii l M r W ynne obt ned t beneftoft A lion tans i i w arant by tonaly, . ai he i he ls r m sson y havi Ba tefel For e e t t Ri m ont was t owner of t war ant bas on t ng tl i d d nt r ha ver he he r y, e he sgnat e çon fl ' How e , t si ur on fl was t t of M s. Ri s. Si i rl t i ur d ie.' ver he gnat e ie ha ver m l y, he sgnat e on t Cat pil engi and t a m isi warant f m i M s.Ri s' ton fl ' i ur he er lar nes r ns s ons r y or s ver s ie' s g t e,e n t ugh t o ne of t w a r n y i lse a Ri r on . On Se t b r 2 i na ur ve ho he w r he ra t s it d s ve m t p e e 7, 2007,a M r W ynne' r t . s eques,a s esm a em pl t al n oyed by Batl i d For pr tefel d epare a new buyers d ' or wih t sa e dealnum ber as t buyer s or si der t he m he ' der gned by M s.Ri s on M ay ,2007. ver Thus,t new buyer' or i he s der ndentfed Ri m ontas t pur er oft sam e tuck hatM s. ii ver he chas he r Rie sh d p e o l p c s d. Furhe,i lse t t t dei r d prc a $1 7 . pls v r a r viusy ur ha e t r t itd he oal lve e ie s 00,3 34 u a e e e s r c c ta tof$348 0 b di n pr vi c e tf a ta i rdo n xtnd d evie on r c , 5.0, ut d ot o de r di or ny r de n wn p yme t ma ngt ne s lsprc $1 , 5. a n , ki he t ae ie 0421 34. Thus CVLR aleges t tM r W m ne,ac i t ough Ri m ont f s y r es t t t , l ha . tng hr ver , alel epr e ed ha t baa e d t Bate i d For wa $1 4, 5. Bu a o ln i M r W m ne s un 1 , he lnc ue o tlfel d s 0 21 34. t s utied n . ' e 8 2007f x t Ba te il Fo d,whih d s rbe ç h d al'Rie mon ha p d $1 , 0. 0 d a o tlfed r c e c i d ç e e , v r t d ai 600 t ' own a ta d-n t e For F45 tuc f $ 6 27,ma ng t a t lbaa e du $6 5 8 nd rde i h d 0 r k or 27,73. ki he cua lnc e 0 08.6. Uli t y,wh n Ba te il For o aie t e $1 7,418 i l n pr e ds fo B &T, i tmael e tlfed d bt n d h 0 3 .0 n oa oc e r m t ma o ac e f t difr nc i t ea ntof$4367 27 p abl t M r W y . de ut h ck or he fe e e n h mou , 3. , ay e o . nne E.Fact R el i t Ri s atng o verm ont' Use ofM s.Ri s' Aut I urance Polc s ver s o ns iy On Febr y 1,2007,M r.W ynne pur ed a 1999 Chevr etTahoe and tted ti t uar chas ol il n he name of Ri r ont W ihout M s. Ri ' know l ve m . t verss edge or cons , M r W m ne t phoned ent . el Magi Calha ($ .Calha ',whowa Ms Ri r' Stt Fam i urnc a e , nd t d r e la n E Ms la n' ) s . vess ae r ns a e g nt ol her t t M s. Ri s had aut i hi t add Ri m onts 1999 Chevr et Tahoe t M s. ha ver horzed m o ver ' ol o 8 Ri r ' a t i ur nc polc Att ttm e, s Cala a r pr s nt d t ts h c ul o g a t ve s s u o ns a e iy. ha i M . l h n e e e e ha uc o d t r n M r W ynne' r . s eques becaus ofhi pr ousDUlconvi i t e s evi cton. On A pri 1 2007,accor ng t M s.Calahan' not M r W yl r l 6, di o l s es, . me eques ed t atSt t t ae Far çr i t e' i ance coverage f t Tahoe. I appear t t Tahoe wasadde t M s m de-nsat ' nsur or he t s hat he o . Ri r ' p i y a t s poi . Howe r on M a 2,200 St t Fa m c nc le c er e o t ve s s olc t hi nt ve , y 7, a e r a e ld ov a f he Tahoe on M s.Ri rs s a o i ance polc becaus t St e Far undenvrtng de arm ent ve ' ut nsur iy e he at m ii t r ecogni d t M s.Ri swasnott ownerofRi mont ze hat ver he ver . On Sept ember 13,2007,M r W ynne agai t ephoned M s.Calahan i or t pl f . n el l n der o y or r nsat ent of t cover of hi Tahoe on M s.Ri s' polcy, f sel cl m i ha M s. ei t em he age s ver s i al y ai ng t Ri s w as an empl ver oyee of Ri m ont Evi l t Tahoe was r nsat on M s. i s' ver . denty, he ei t ed ver s polcy. On Oc ober 9, 2007, M r.W ynne' t i t s eenage s w r on ecked t Tahoe i an cci , he n dent r uli i a t all oft vehi e. M r.W ynne caled M s.Ri s and as hert al M s. es tng n ot oss he cl l ver ked o l Calahan t i or her aboutt wr l o nf m he eck. A ccor ng t CVLR,M s. Ri e s c le M s ala a di o v r ald . lh n becauseshet houghtM r W ynne wasupse . . t On Oct ober 22, 2007,a St e Far r esent tve caled M s. Ri and t d er t at m epr ai l vers ol hat St e Fa m was pr ed t s a check t pay her cl m . M s Ri r t l t r p e n a i e at r epar o end o ai . ve s o d he e r s t tv t t s had notm ade a cl m and,accor ng t t St e Far actviy l , dverfed hats ha he ai di o he at m i t og s ii he doe no ha a yt ngt dowiht sv hil s ne dt (pe kwih t owne J hn y . s t ve n hi o t hi e ce o e o s a t) he ro nne' ' The r es atve t caled M r W ynne who tverfed he owns t Ri m ontBan ' Co. epr ent i hen l . d ii he ver ng and Cr t coul drve t vehi e and s d have been Is ed as drver not i ur ' The ysal d i he cl houl it i ns ed ' r es atve as M r.W ynne t pr de pr t he owned Ri m ont M r W ynn s t epr ent i ked o ovi oof hat ver . . ent o St e Far an alegedl f ged 2007 AnnualRe tofRi m ontt w as orgi l s ned by at m l y or por ver hat i naly i hi ator on Janua y 26,2007. Theorgi docum entdi notls M r W m ne ashavi a r e s t ney r i nal d it . n ol 9 i Ri r o . A c o di t CVLR,M r W m n c nge t f r i t f l ng a :h n ve m nt c r ng o . e ha d he o m n he olowi ys e checked t box l ed taddii ' checked t boxes<ofi ' and tdiect r'and add d çl he abel t ton,' he t fcer' d r or' iohn L.W yl e Chaim an,Pr dentand CEO' t t f m . H e f m r esi ' o he or axed t alegedl f ged f m t he l y or or o Stt Fam on Ocob r26,20 Uli t y,he o ane $1 6 0 i St t Fam i s a e ae r t e 07. tmael bti d 0,30.0 n ae r urnc pr c e a a r ul oft pu po tdl f a ul ntc am . o e ds s es t he r re y r ud e l i F.Fact R el i t Forger ofM s.Ri s atng o y vers' N am e on 1650 Part s nersC hecki A c ount ng CVLR aleges t on Oct l hat ober 1,2008,M r W ynne f ged M s.Ri s' nam e o a 1650 . or ver s Parner c t s heck and pr esent i f paym entatBank oft Jam es. Bank oft Jam es ai t ed t or he he d he f r dc c a pr s ntd i f rc lc int Ol Domi o whih i t r pai ou $ 0 O. o ge he k nd e e e t o ole to o d nin, c n u n d t 3, OO. G .Fact Rel i t M r.W ynne' Forecl ur ofKaren Fost sH om e s atng o s os e er' l e ry2006 Kae Fose C: . tr' s htra ett fna ng fom Riemon, n al , rn tr Ms Fose' oug e l sae i nci r ) r t as um i i w asa bank. On Augus 23,2006,M s.Foserexecut a not i f s ng t t t ed e n avorofM r W ynne . i t a un of$ 0 00 o a c tofmo y t tM r W y ha l n d t he n s l n he mo t 40,00. n c oun ne ha . nne d oa e o r mal i em ent . The not w as secur by a deed of tus on M s.Fos er s hom e i L chbur ncr s e ed r t t ' n g, Vigi a. M r.W m ne m ade no dem and f paym entoft not r ni or he e. On Se tmbe 25 20 Pee Sa ket(ç .Sa k t )c uce apuai frcos e pe r , 08, tr c t ç Mr c ef' ond td ttve o l ur s l ofM s Fosersp ope t M r W y bi-n t pr pe t f r$ 00 00. Howe r CVLR ae . t ' r ry. . nne d i he o ry o 40, 0. ve aleges t M r W ynne knew t e was a pr si Bank of Am erca m orgage on t l hat . her eexitng i t he pr t Bank ofA m e ca hel t fr tdeed oftus on t pr opery. ri d he is r t he opert , butM r.Sacke tdi not y t d pay Bank ofA m e ca fom t pr ri r he oceeds oft f ecl e sal . A ûe M r Sacket had s entt he or osur e r . t he f e os e pr or cl ur oceeds f ot pur or her poses M r W m ne pad M r Sa ke t$7 000. , . i . c t 2, 00 m t he Sout e Lei W ynne Tr t t be pai t Bank of Am erca, whi r ved t hgat gh us o d o i ch ecei he nds on J anuar l 2010. y 2, l 0 S paaey,Mr Wynn s te afna ilsae n (i donAprl23,2 )t Ol e rtl . e ubmitd i nca ttme t sgne i 00 o d Dom i on. The fnanci s at ent ls ed as an as et of M r.W ynne' whatwas f m ry M s. ni i al t em it s s or l Fo trs pr pe t M r W y sa e t tt pr pe t ha a vale of $2 0 a ha n se ' o ry. . nne ttd ha he o ry d u 00,00 nd d o m orgage. CV LR as ert t t a t tm e t fna al sat ent w as s it i as f s t s s ha t he i he i nci t em ubm ted, t ale be a e t Ba ofA m e i a no e ha no be n pad a t e d e oftus h d no b n e e s d. c us he nk r c t d t e i nd h e d r t a t ee l a e M or ove , CV LR a l ge t a M r W m ne s i e t e fna ci l sa e e t s or h s e r le s h t . ubm t d h i n a t t m nt o up t i t a iain t rne 1 0 Pa t r ' $4 0 0 la t purhas t rdi c n e pr ry. pplc to o e w 65 rne ss 75,00.0 o n o c e he i ng e t x op t H .Fact Rel i t M r.W ynne' Dealngsw ih V i M ars s atng o s i t cki h Ac odi t CVLR,VikiMas (ç s Mas ' i af merfin ofM r W c r ng o c rh E . rh' s or re d M ) . e'.I s n Sept ber2006,M s.M ar h w ashous sti f M r.W ynne athi hom e i Lm chbur W hie em s e- itng or s n g l cl i a pl t seep i M r.W ynne' gues bedr ,M s.M a sh s a pi ce ofp pe t t earng ace o l n s t oom r aw e r ha desc bed pr t s ow ned i Pa l s l and, Sout Car i The pa alo l t d :1 ri opery he n w ey' sl h olna. per s i e : 6 h s s' M s M a s l t r a ke M r W yn a ou t e pa ra M r W ynn e d nty s i $t or e . ' . rh ae s d . ne b t h pe nd . e vi e l a d $ i wa t sa t Ri nno ,'$ 0# 0 wa t hep Ka e ou 'a d éo hept gilwiht ho s s s o tr up ve nt'd 00 s o l r n t' n s l he r t h re $6 t out' At t tm e,M s.Ri s had no r a i hi wih M r. W ynne exce t s r ed .' hat i ver eltons p t pt hat h ent pasur fom hi and had pl ter m edged si ee hor es as s urt CV LR aleges t t p erM s. xt n s ec iy. l hat he M a s di c r d i e de c t a M r W yn ha c nc i d o a unii d s h m e t de r ud M s r h s ove e s vi n e h t . ne d o e ve f te c e o f . M ar h,M s.Foser and M s.Ri s. s t, ver On Nov mbe 8 2006 M r W yn p c a e a $ 000. c riiat ofde sta Fis e r, , . ne ur h s d 60, 00 e tfc e po i t rt Ba a TnztCo ny CFis Ba ' i t na ofRiemon. Thee ûe, M s M ar nk nd s mpa rt nk' n he me ) vr t ra r sh opened a cr t lne wih Fis Bank. Evi l , t cr t lne was appr edi i t rt denty he edi i oved becaus of t he di le e' Ri r ç u nc 'of vemontha ngj tpur ha e t c rii a eofde st Accor ng t CVLR, nf vi us c s d he e ttc t po i di o . M r W ynne' pur e i havi M s. M ar h obt n t lne ofcr tatFis Bank w ast bolt . s pos n ng s ai he i edi rt o s er 11 M s M ar h' cr ts e so t t w ih t t por y equiy t he woul cr e i her ouse a . s s edi cor ha , t he em ar t hat d eat n t Pawl sl l s coul obt n am orgage fom anot bank. ey' sand, he d ai t r her On M a ch 2, 2007, M s M ar h conveyed hal of t i er t i her Paw l r . s f he nt es n ey' l l sand pr e t t M r W ynn Sh ty t r a r M r W y e pad a oxi t y $ , 00 t a op ry o . e. orl he e ûe , . nn i ppr mael 450000. o Sou h Caolna c r a s tlme t o a pa tton dip e wih M s M a s s c - wne s M r t r i ou t s e te n f rii s ut t . r h' o o . . W ynne alegedl obt ned t f l y ai he unds by bor ow i t m oney f om a ba whos i i CVLR r ng he r nk e dentt doesnotknow . On M a c 30,2007 W a h a la d M s M a s $5 , .5,s c e by he r pe t rh , c ovi o ne . rh 014617 e ur d r o ry (alofwhih,bytetmeoft cl i ,ha benc ve dt Mr W ynne.CVLR ai ans hf c h i he osng d e on ye o . ) nti t i wasM r.W ynne' i enton t buid a new hous on M s.M a h' pr hat t s nt i o l e rs s opert l Se t be y. n em r 2007,M r W ynne f . ound t the coul notobt n t fnanci neces y t buid t ne hous ha d ai he i ng sar o l he e. How ever M r W ynne ls ed hi i er t i t Pa l s I and hous i t fnanci s t , . it s nt es n he w ey' sl e n he i al ement he pr ded t Ol Dom i on on Odobtr 1 2007 whe he orgi l s ovi o d ni 2, n i naly oughttnanci f t i n or he p c s oft erdi c ntrpr ry.Helse t make vaueoft ho e a $1milo urha e h i ng e e ope t it d he r t l he us s l n. Ac or n t CVLR, M s M a s e r onl $7, pe y r a h n m a s of c dig o . rh ans y 000 r ea nd as o n r epayi t l n. A legedl t pr ng he oa l y, he oceedsoft l wer pai t M r W ynne w ho m a e al of he oan e d o . l t paym ent on t l up untlSept ber2008,atw hi poi he s opped m aki p yment he s he oan i em ch nt t ng s aloge he M r W ynne w asneveradde as a bor ow eron t W achovi m ort t t r. . d r he a gage even t hough he r ved t pr ecei he oceeds of t l and obt ned a hal-nt es i M s. M ar h' p opery. he oan ai fi er t n s s t Accor ng t CV LR,M s.M ar h r l M r W ynne t lng her i Sept btr 2008 t the was di o s ecals . eli n em ha goi t lt W ac a f ecl e,buy t pr t on a shor- al , a ta sewa te plt ng o e hovi or os he opery ts e nd h t h s t ei l ve d e e ou oflc ' Fu t r CVLR ale e t tM r W y ha a tmp e t pe s d W el eltdj t u k. rhe , ' lg s ha . nne s te t d o rua ls 12 Far whi now owns M s M ar h' not t alow hi t pur e t pr t f l s t go, ch . s s e, o l m o chas he opery or s han M s. ar oweson t not M sh he e. 1.Fact R el i t M r W ynne' Conductt ard M s.Ri s,M s.Fost and M s ars s atng o . s ow ver er, . h A s a gener m ater CVLR aleges t t m oney M r. W ynne obt ned t ough al t , l hat he ai hr Ri m ont a 1650 Parner was i er i ed and t pr ver nd t s nt m ngl he oceeds ofhi t a s r nsactons ih one i t çvitm ' w er us t fnance tansac i wih t ot (vi i s.' For exam pl on ul 23, % c i ' e ed o i r tons t he her t ctm ' e, y 2008,Ol D om i on i ued a cashi s check t Te r d ni ss er' o r ance W hie f paymentofa f se i ce t or al nvoi s bmitd by Mr W yn ( rpe e td hi efby fr r a c nta t Gln W ie f u te . ne who e rs ne msl ogey s o rcor e t) or wor done t r rt dam aged bar a t rdi cent . Ter a W hie endor ed t e check k o epai he n t he i ng er r nce t s tf r de s t o y' t Ri r io po i nl ' o ve mont a t c c wa uli a e y de ie i o M r y e' , nd he he k s tm t l post d nt . nn s per onalchecki accountatBank oft Jam es. CVLR aleges t t w ih t f s ng he l ha t he unds om t he i urnc pr e ds (nemigld wih ot rfndsfo Ri r nta d 1 Pat s,Mr ns a e oc e itr n e t he u rm vemo n 650 rne ) . W yr t n wr e a check f om hi pe onalc ki accountt M r Sac ti t a ountof me he ot r s rs hec ng o . ket n he $1 000. i or e t pa t d posto M r W y spurha eofM s Fose ' pr pe y a t e 6, 00 n d r o y he e i n . nne' c s . t rs o th f ecl ur s et M r.Sacket conduct d on Sept ber25,2008. or os e al hat t e em l a t ri tn e Ms Ri r wa s wn ( as cila e wor ngfrt igi a n nohe nsa c , . ves s ho by pe a g nt ki o he r ni Stt Polc)rc dsofde st it te Ba oft Jme a c un e tte So hg t Leg ae ie e or po is no h nk he a s c o t nild ut a ih W ynne Tr tt m a ch t am ount ofcashir' checkst t CVLR pai t O l Dom i i f us hat t he s es ha d o d on or what M s.Ri s t ver hought w as her morgage paym ent M r W ynne m ade paym ent on M s t . . s . M ar h' W achovi not fom t s e Sout t Lei W ynne Tr t account Thus CVLR s s a e r he am hga e gh us . , cont ends M s M ar s m orgage was pai wih f . sh' t d t unds f om CV LR' put i tm rt ' r S atve t gage' paym ent . s 1 3 Addii l CVLR s a est M r W ynne us t equiy i r esat t he bt ned tonaly, t t hat . ed he t n eal t e hat ai fom hi Svi i s' t i ease t a r s s ctm ' o ncr he ppear nce of hi net w ort so t he coul obt i ne a s h hat d n w fnanci i ng. For exam pl i Aprl 2009, 1650 Part s appled t Ol Dom i on t r w e, n i ner i o d ni ene fnanci oft rdi cent pr t l t O1 Dom i on l pr nt ton m ade n Aprl i ng he i ng er opery. n he d ni oan ese a i i 2 200 M r Da ne l sa e t tM r W y e owne ( v c to home i Pa l y' I 1 nd SC 3, 9, . r l t t d ha . nn d < a a in a n we s s , v l da $130 wiha$50 morga e(wns50 .... Anohe e mpl ctdb CVLR aue t , 0K t 0K t g o %) ' t r xa e ie ' i an a t pt by M r.W ynne t obt n fnanci fom O1 Dom i on f a pr ed l y Lake s tem o ai i ng r d ni or opos Waefon Cond ni Prjc i FoetVigi a M rW y alge ys te a es l trr t omi um oe t n rs, r ni. . nne le dl ubmitd rona fnanci sat i al t ement as of Decem ber 31 2009,i w hi he ls ed as an ass :(1/ Re i i , n ch it et . 2 dental Pr y . . . Pawl s l l Sout Car i . . .l ow n 1 2 but not on any debt opert ey' sand h olna / val ue r es sm y equiy i er t' M r W ynne alo lsed M s Foser' pr t as an as e ,wih a epr ent t nt es .' . s it . t s opery s t make vaueof$ 0 00 a d a l n baa e ofz r ,nowihsa ng t f tt a a of r t l 200,00. n oa lnc e o t t tndi he ac h t nk Am erca' fr tmorgageon t pr t had notyetbeen pai of . i s is t he opery d f lI. LEGAL STANDARD A moint dimisp s n t Fe r Rul ofCi lPr e e1 b()tsstelga to o s s urua t o deal e vi oc dur 2()6 et e l s fci y ofa compl ntt det m i whe hert pl ntf ufi enc ai o er ne t he ai ifhaspr operl sat a cl m ; $tdoes y t ed ai i notr ve cont t s r esol ess uroundi t f s,t m ert ofa cl m , ort applcabiiy ofde ens ' ng he act he is ai he i lt es.' Re i 'Jr.y o c.v Ma t 98 F. 9 952 ( t Ci.1 ) l c nsd rn a Rue publcan / fN . ri 0 2d 43, n, 4h r 992 . n o iei l l b()moton,ac r mus a cptalfcua algainsi t c mpl nta tu a d mus 2()6 i ou t t c e l a t l le to n he o ai s re t dr al r onabl i er aw l eas e nf ences i f n avor of t pl ntf . Erckson v.Pardus,551 U . 89, 94 he ai if i S. ( 07 . Leg lc l i i t g s off cua algai ,h ve ,a e n e ild t a 20 ) a oncusons n he uie a t l le tons owe r r ot ntt o pr esum pton oftut As .f v I al 1 S. . 93 1 -51( 09) i r h. hcro t . qb , 29 Ct 1 7, 950 20 . 1 4 A lhough a com pl nt(does notneed det l f t alegatons a pl ntf'so lga i t ai t aied ac ual l i , ai if i ton t prvi t gou ofhi e ttel nt t rle rq rsmor t n lbesa c n l ins o o de he r nds s nil me ) o eif e uie e ha a l nd o uso , and a f mul c r t i oft el e sof a caus ofacton w ilnotdo.' Bel At. or v. or ai eciaton he em nt e i l ' l l p. Twombl 55 U. 5 5 ( 7)(ntr lquoai maksa d cttonso te . Fa t l y, 0 S. 44, 55 200 i ena tton r n iai mitd) cua a l ga i ns m us be e ug t r i e a r g t r i fa ve t s c a i e l v . I n o he le to t no h o a s i ht o ele bo he pe ul tv e el ' d ' t r wods Rul 1 b()d st otrquieheihe dfc pladng ofs cfcs bu o y e ug r , e 2()6 oe d e r g tne a t e i n pe ii , t nl no h f st sa e acl m t r i t i pl usi e on isf e.' 1 at570. act o t t ai o elef hat s a bl t ac ' d. 1 .Dl 11 scuss oN l Des t t t e ofalegatons pr nt i CVLR ' am ended com pl nt i i c eart t pie he angl l i ese ed n S ai , t s ha t t esol is a t sj t e i wh t rCVLR ha sae a cl m u rt R c te he hr h d sue t hi uncur s ehe s ttd ai nde he kee r l l nc da d Corup Ora z to Ac ($ CO',1 U. C.jj 1 61 968.CVLR' RI nfue e n r t g niains t 6 Rl ' 8 S. ) 9 -1 S CO cl m i isonl bai f fdea s j tmatrj iditon gi n t tt ctze hi oft ai s t y ss or e rl ubec te urs ci ve ha he ii ns he pari i notcom pl el di s tes s et y ver e. A.RT Cl m CO ai l Countlofisamended com pl nt CVLR as ert aRI cl m agai tDef nt M r. n t ai , s s CO ai ns end s W ynne,1 Part s and Ri 650 ner , vennont I RI ,Congr sse outt br y pr crbe . n CO es t o oadl os i r t i ac i t car ed outi t cont ofcrm i ent rses See Beck v.Pru s 529 acke eerng tviy ri n he ext i nal em i . pi U. 49 496( 00)(ttngta Co ese ce RI Ef tepur eo s e i te S. 4, 20 sai h t ngrs na td CO lor h pos f eklng) ea c to ofoga z dci i t Unie Stts'(nenal ttonmaksa ctto rdiain r nie rme n he td ae ' itr quoai ) r nd iai o te ) Tot te RI povi s i pat mitd. ha nd, CO r de,n r: ()I s alb u lwf lfr a y g ro e ly d b o a s cae wi a c t h l e na u o n es n mpo e y r so itd t n h ent prs e er ie ngaged i or t actvii of whi afect i er t e or f ei n, he l tes ch f , nt sat or gn com m er t conductor par i pat diecty ori r ty, i t conductofsuch ce, o tci e, r l ndiec l n he 15 ent prie' af ais t ough a pate n of r er s s f r hr tr acket rng ac i t or colec i o ee i tviy l ton unl uldebt awf . 1 U. C.j1 2() l e a tngRI Conge sas ce tdaprvaerg ofa ton, hih 8 S. 96 c. n n ci CO, rs lo rae i t iht ci c pr d s i p ri ntpatta Elj pesnijr i hi b i sorpopet byra o ofa ovie ,n e t ne r,h tçany ro nued n s usnes r ry e s vi a i ofs i 1962 oft schapt m ay s t ef i any appr a e Unied St e olton ecton hi er ue her or n oprit t at dititc ur a s alrc rt e f dt d ma shes t ns.. . 1 U. C.j1 4c . src o t nd h le ove hreol he a ge usai .' 8 S. 96 ) ' Thus,i isRI caus ofacton,CV LR i s ng M r W ynne,1 Parner and Ri ont n t CO e i s ui . 650 t s, ve un rj1 4()f vi ai j1 2() de 96 c or oltng 96 c. A vi ai ofj 1 2( rq rs$ 1 c du t( o a e eprs ()t o olton 96 c) e uie $ ) on c 2) f n ntr ie 3 hrugh p ten 4 atr ( o rc tei atviy. Se ma, P. L.v I e Co.4 U. 47 496( 98 . hetr 4) f a kee rng ci t ' di S. R. .mrx , 73 S. 9, ' 1 5) em Sr sacket i actviy' hasbeen defned i RI t mean dt actort ea i vi s ecii eerng i t ' i n CO o dany hr t nvol ng' fed sat l crm es any d 'i ct bl undervarouss fed f als at es,and ce ai f al t e-aw i , act ndi a e i pecii eder t ut rt eder t fnss'' H J I .v Nw.Bel Te.Co. 492 U. 229 23 ( 98 )( otng 1 . C.j ofe e .' nc . l l , S. , 2 1 9 qu i 8 S. 1 (). CVLR alge t tMr Wy ,t o t o rtonoft e iishec ntol,h 961 1) le s ha . nne hrugh he peai he ntte o s as comm it r t i a s and pr ted acke eerng ct eyed upon w om en i fnanci di r who r i pon hi n i al stess eled s pup tde pets a aba e . Th o jc o Mr W y ' rc teig she a c di t rore x rie s nk r2 e be t f . nnes a kee rn c me, c o ng o CVLR, i obt ni m oney and pr t by il s ai ng opery legal mea f t pur e of M r ns or he pos . m ne' s fnanci e i ent i al nrchm . 2Alhou M s. M a s M s Fose , nd M s Ri r a e no pa te i t sa i Ino e t tn pl ntf sc be t gh r h, . t r a . ve s r t ri s n hi cton, t ha on- ai if a c i e e vitmsf pum os o e ubls n a pa tr ofr c t e i g u raRI cl m . Se GE I v. rv e onsd r d c i or es f s ihi g te n a ke e rn nde CO ai e n iat Pl e nt t r 1 v Par e , 47F. 54 5 ( t Ci. 1 (ii M e s v Was e man 88 F. 681 ac me Parne s 1 . k r 2 3d 3, 48 4h r200 ) ctng na co . s r , 6 2 , 68 ( hCi.1 9:. 5 4t r 98 1 6 1.Pre cat Act Aleged di e s l l is am ended compl nt CVLR br nt ai , eaks dow n t pr cat act t underi isRI he edi e s hat le CO caus ofacton. Ihave done t s e her f t s ofcl iy. e i he am e or he ake art i Pr cat Actl:Bank Fr i Pur i t Ri na Cent Pr t . edi e aud n chasna he di er opery - On fr ofrc te i atviyi a a twhih i idit eund 1 U. C j 1 44 e om a kee rng ci t s ny c c s n cabl er 8 S. 3 rltngt fn nca i tttonfau 1 U. C.j1 ()B) Seton 1 44 mor c monl eai o ia il nsiui r d. 8 S. 961 1( . ci 3 eo y known as t bank f aud sat e pr des i par,t i i unl f t execut a s em e or he r t ut ovi , n t hat t s aw ul o e c arii t def aud a fnanci i tt i ort obt n any oft m oneys or pr t o ned or tfce o r i al nsiuton o ai he opery contole by t i tt i . 1 U. C.j 1 4 3 r ld he ns iuton 8 S. 3 4. CVLR ale st tM r Wyn d fa dOl Domi o Naina Ba by:()tli is lge ha . ne erude d nin to l nk 1 lng t pr i ,M r.Dar l t he had a cont ctt pur e t ri ng cent pr t whe neiher esdent nel, hat ra o chas he di er opery t h no 1 Pa t r ha s h ac ta t ( )manti n t e fci t theha s c a onta t e r 650 rnes d uc onr c; 2 i anig h iton ha d uh rc fom Oc obe 1 2007 t Nov m be 20 2007 t da e of t c osng a whi h h s g d r t r 2, o e r , , he t he l i t c i ne do ume sas( oro r'a d rhae'; nd( )o ani fo Ol Domi on$47 0 0.0i c nt t rwe' nd t c sr'a 3 bti ng rm d b pu ni 5, 0 n l n pr oa oceeds f t beneftof 1650 Parner ,an entt he cont oled. A ccor ng t CV R, t s or he i t s iy r l di o hi ba fa i vi ai o 1 U. C.j 1 4 alwe M r W ynne t hol tte t t lnd a nk rud n olton f 8 S. 34 lo d . o d il o he nd p r te hi t ee tCVLR a a tme whihhee nt lydi Me whie CVLR a t emitd m o jc t ny i , c ve ual d. an l, de he morgage paym ent and pai t i ur t s d he ns ance pr i son t as um pton t i had an o ner hi em um he s i hat t s p i er ti t rdi c e pr t nt es n he i ng ent r opery. 3I f de a c r, fa dcams icu igto epe a teb sso aI n e r l ou t ru li - n ldn h s ld s h ai f UCO cam- aes bett teh ihe e li r ujc o h g tn d pe d n sa d r s t u i Fe ea Rueo CiiPrc d r 9 b .S eMe a c , 8 F.da 6 4 Rue9 b rq i s la ig tn ad e o tn d r l l f vl o e ue ( ) e n s o 8 6 2 t 8 . l ( e ur e a pa t a lgi g fau t tsa e wih pa tc l rt t e c r umsa e c tt i fa orm it ry le n r d o 4t t t ri u a iy h ic t nc s onsiutng r ud sake ' Fe .Ci P. ' d. v. . 9b . T eR ic ms c s'e ui d t b p e wi p riu ai u d rRue9 b a ett etme pl ce,and cont nt ( ) h cru un e 'r q r o e ld t at lr y n e l ( ) r ûh i , a e h c t k e s oft f le r pr s nt tons a we la t i ntt oft pe s ma ng t mir pr s ntton an wh theobt ne he as e e e a i , s l s he de iy he ron ki he s e e e i d a ai d t e e y.' Har s n v We tn ou e Sav h r b '' rio . si gh s anna Rier co 1 6 F.d 776, 4 ( hCi.1 )( uot 5 Chals h v Al ., 7 3 78 4t r 999 q i ng re a W rght& Arhu R.M il r Fe r Pr i e an Pr c dur .. Ci l 1 97, t590( e 1 (. HLlc of n i t r le a de al actc d o e e vi j 2 a 2d d. 9909 ak c mpin ewi Rue9 b ' pe dn r q ie nsi te td a afi r t saea cam u d rRue 1 ( 6 .' 1 o l c t l ( )s la ig e u rme t s rae s al e o tt li n e l 2 b ) 5 é a h u a 783 n. t 5 17 i. Pr cat Act2:W ieFr i Obt ni Pr i edi e j r aud n ai na oceeds ofCV LR , l ur s ns ance pojcv4 A not f m of r her or acket ri actviy pr crbed by RI i any actwhi i i i abl ee ng i t os i CO s ch s ct e u r1 U. C.j1 3rltn t wiefa 1 U. C.1 ()B) Bra i sope hewie nde 8 S. 34 eaig o r rud. 8 S. 961 1( . o d n c , r faud s aut m akes i unl f t devie any s m e or arii or t e r tt e t aw ul o s che tfce o xecut such a s em e or e c atfc b menso awiei itrtt c riie y a f r n nesae ommec 1 U. C.j1 43,sealoAm.Chrpr tc re. 8 S. 3 .e s i aci v Trgon He t ar,36 F.d 21 23 ( h Ci.20 (ttng t ti or rt a1 g wie . i alhc e 7 3 2, 3 4t r 04) sai ha n de o l e r fa ,apli ifmus pla ()a she dicl i a i e tt derud,a d ()t us o rud antf t e d 1 c me s osng n ntn o fa n 2 h e f itrtt wie i f ternc oft she ) CVLR alge ta Mr W y ,a tng tr h nesae rs n urh a e he c me. le s h t . nne ci houg Ri m ont com m it w ie f aud w hen,i 2008,her es ed t O l Dom i on t ou h f xes ver , ted r r n epr ent o d ni hr a o flei iesan alte (ore byMr Wyn i t n meofc ta t Gln W ie t t f as nvoc d etr f g d . ne n he a onrcor e t) ha he was due m oney pai outby Am ercan Banker t O 1 D om i on f r rwor on t e rdi d i so d ni or epai k i ng c ert tw as neverdone. A legedl M r W ynne' em pl ent ha l y, . s oyee,Terance W hie,endo s t r t ed he i ur ns ance checksovert Ri m ont whi was s el owned by M r W ynne. Thus,M r.W ynne o ver , ch ol y . al ge y r c i d ove $35, 00 fo Ol Do ni a a r s toft s f le a f r d l dl e eve e r 000. r m d mi on s e ul he e as n o ge i ces. Accor ng t CVLR,i owned t i ur nvoi di o t he ns ance polcy and pai t pr i s;t er or , i d he em um ef e i wasentted t t t il o hese pr oceeds notM r W ynne. , . ii Pr cat Act3:W ieFr and Bank Fr i Obt ni Loan f Truck' Pur e i. edi e r aud aud n ai na or s chas CVLR alegest tM r.W ynne utlzed Ri r ontas an i t um entt com m i b t wie l ha ii ve m ns r o t h r faud and bank faud i connec i wih t pur e oft For F650 t uck. W ih r pe tt t r r n ton t he chas he d r t es o he wie f r raud alegaton,CVLR m ai ai t i Sept ber2007, M r.W ynne f l i nt ns hat n em axed t B&T a o buye s or , sgned by hi as ( esCEO of Ri mont' ico r cl s ng:( ) ha t r' der i m Tr / ver , ' n re t y howi 1 t he b lnc du t Ba t i d For wa $1 4, 5.4 whe t e a t la ntdu wa $ 50886 aa e e o tl el ef d s 0 21 3 n h cua mou e s 60 . 4I is a nde c n t me d ompl nt CVLR lbe st pr di t a ta lge h r a ç ns a fa .' Ho ve ,t e a ua ai , a l he e cae c le d e e s ç ur nce r ud ' we r i ct l a lga i ma i c e rt a CVLR i i s e d pl di wiefa . le tons ke t l a h t s n t a ea ng r r ud 18 a ()t tt od trra ngwa 3, mieswhe iwa a t lymuc hihe .A c di nd 2 ha he omee e di s 936 l n t s cual h g r or ng t CVLR,t s r pr s nttonsa l d Ri r tt ob an $1 7, 00 i t t ll n r e ds o he e e e e a i lowe ve mon o t i 0 341. n o a oa oc e fom BB&T,a s e nty a $ 673. r und fo Batefel For The e a t nsas r nd ubs que l 43, 27 ef r m tl i d d. s ci lo am ountt bank f aud, CVLR cont o r ends. The end r ul w as t M r W ynne w as abl t pay es t hat . o nohi f rt tuc t r f nd c r d hi d t ng o he r k; he e u ovee s ownp yme ta d t e vaueoft 20 F d F45 a n n h l he 02 0 tuck he had taded i M or r r n. eover M r W ynne was a e t m ai ai owner hi w hie t r s of , . bl o nt n s p l h ik l s f t tuck s Aed t BB& T and M s. Ri s who pai t i ur os or he r hi o ver , d he ns ance pr i m s and em t houghtt tuck w astted i hernam e when,i f ,t tte had been c he r il n n act he il hanged t Ri r onts o v m ' nam e. Fi ly,CVLR ale e t tM r W y e o ane a a to $1 , 80 i itr s nal lg s ha . nn bti d n ddiinal 1458. n ne e t pa m e t f o CVLR b ca e u rt e d a n, as ,a Con r tt Buy Agr e e t d a d y ns rm e us nde h d oa Le e nd l tac o e m n ' r ûe by M r.W ynne,CV LR was r r t pay t m ont y i t l ent t BB& T on Ri equied o he hl ns alm s o v ont s ' l aswel as 8. pera oan l 5% nnum on t t all n am ountt Ri he ot oa o vennont Accor ng t C LR,t . di o he rs l wa a c ai itrs rt of1 34% pe an e ut s umultve neet ae 9. r num (0.4% t BB&T a .% t 18 o nd 5 o Ri r t.CVLR mant nst a ismonhl pa nt woul ha b e lwe ha M r W yn vemon ) i ai h t t t y yme s d ve e n o r d . ne fn nc d tr h BB&T onl t $60, . t a wa ne d d. l ta M r W y wa a et ia e h oug y he 50886 h t s e e nse d, . nne bl o cam a a dii l$1145 80 i i ees fom CVLR be a e of t wa he sr c r d t li n d tona , 8. n ntr t r c us he y tu t e he fnanci and he w asabl t m ai ai owne shi oft vehi e i t pr s. i ng, e o nt n r p he cl n he oces i Pr cat A ct4:W ie Fr i Obt ni Aut l ance Polcy Beneft v. edi e r aud n ai ng o nsur i is - CVLR alegest on Febr y 1,2007,M r W ynne t ephoned M ar e Calahan,a Stt l hat uar . el gi l ae Far r es atve,and f s y t d hert M s.Ri s had aut zed hi t add Ri onts m epr ent i alel ol hat ver hori m o ve ' 1 Chevy Ta t M s Ri ' aut i ur 999 hoe o . vers o ns ance polcy. Ther i eaûer M r.W ynne f xed f ged , a or ver i of Ri m onts annual r por t St t Far . Event l aRer hi s w r ed t son ver ' e t o ae m ualy, s on ec he 19 Ta ,M r W yn wa a e t o ai $1 63 00 i i urnc pr e ds a r s b it a hoe . ne s bl o bt n 0, 0. n ns a e oc e ûe u ti ng fa dul n c a m . CVLR a s r st a i s do ng, r W ynn c m it w ief a ru e t li se t h t n o i M . e om ted r r ud. v.Pr ca eA c 5:Bank Fr i Pr entnz a For Check edi t t aud n es i ced CVLR a l e t t M r W yn de r ud d a fna i l i tt i a i s d ng leg s ha . ne fa e i nc a ns iuton, nd n oi c m m itd ba k fa whe o Oc ob r 1 2008 he pr s nt d a 1 0 Parn s c c n w hi h o te n r ud, n, n t e , , ee e 65 t er he k c h ha sg dMs Ri r' na ( t th rkn e eorpemiso a o ane $ , 00 e d ine . vess me wihou e owldg r sin) nd bti d 000. f hi s f or m el. vi Pr ca e Ac 6:Bank Fr i For osur ofKar Foser' Hom e . edi t t aud n ecl e en t s Fi aly CV LR c a m s t a on Aprl23 20 M r W y f lel a s re i a l nc a n l, li h t i , 09, . nne a s y s e t d n na i l sat entt tt e w as no m or gage on whatwas f m ery M s Fos e s propery an t he t em ha her t or l . t r' t hat owned i f ee and cl ;how ever he kne t tBa ofA m erca hel a fr deed oftu ton t tr ear , w ha nk i d ist r he pr t A cc di t CVLR,t s f se r es aton bolt ed hi l r opery. or ng o hi al epr ent i ser s oan enew alap lca i i ton a pemitd hi t obai fom Ol Domi on t $ 0 00 l n t 1 0 Pa ne s t nd r te m o t n r d ni he 475,00. oa o 65 r o pur has t rdi cent pr t c e he i ng er opery. 2.REnt i 'underR I O erprse' C Def ndant M r W ynne,Ri r ont and 1 Parner cont t CV LR has aied t e s . ve m , 650 t s end hat l o pr rl alege t exi ence of an dent prie' as t t r i cont plt by RI 0 . To ope y l he st d er s ' hat e m s em a ed rieae j 1 62() lmis RI la lt t a i es e o d by orasocaed ih a etrt, 9 c i t CO ibiiy o i ron mplye p s it t ny e tr ie' 1 U. C.j 1 2() Th ,t poc e on a cl m boug unde j 1 2c,a neprs.' 8 S. 96 c. us o r e d ai r ht r 9 () pl ntf mus alege t exit ai if t l he s ence oft enttes:a tper on' a an Eent rs .' See Cedri wo ii t s ' nd & ep ie ' c Kushner Promotons L/ v. Ki 533 U .S.1 ,1 1( i , J ng, 58 6 2001. RI dei st r n'a d ) CO tne ç s ' n pe Gent rse'dif enty. A tpe son' i udestany i vi orentt capabl ofhol n a l E ep i ' f er l ç r ' ncl t ndi dual iy e di egal or benefci i er t i pr i al nt es n opert ' 18 U .S. j 1 613) An S n e ie' i l s û ny y.' C. 9 ( . s t mrs ' ncud s e a 20 i vi , pa ners p,cor aton,ass a i orot l entt a any uni or 0up of ndi dual rt hi por i ociton, her egal iy, nd on idi d l asocae i fc at g no a lga e iy. 1 U. C.j 1 ( . e alo n viuas s itd n a t lhou h t e l ntt ' 8 S. ' 9614) e s , Pal toSt eMe Ct.I .v Ope ainLfeie,1 7F.d 1 ,1 ( hCi.1 )(ei ng met at d r, nc . r to ln 1 3 42 48 4t r 997 fni ient prs 'underRI as ta ongoi or za i f m alor i or al i w hih t varous t er ie' CO tn ng gani ton, or nf m , n c h i asocae fnci a ac tn nguni s its u ton s oniui f). I t i t case,CVLR aleges 1650 Pa ner Ri m ont and t Sout e Lei n he ns ant l rt s, ver , he hga gh W ynne Tr t t be t ent pr s and M r W yn t be t pe s n who c toled t e a uss o he er i es ne o he r o on r l m nd . ed hei i . conduct t rbusness6 How ever, t cours ar i agr entt t per on alege t have he t e n eem hat he s l o vi ae j l ()mus be ditn tfo te e ep ie Pal t 11 F.d a 1 Th , oltd 962c t sic rm h ntrrs. meto, 7 3 t 48 us ila lt depe on s tibiiy nds howi t tt def nt conduct orpari pat i t condu toft ng ha he enda s ed tci ed n he he çntr ie' af r, n j tt rtwn afis' Re e v Er tt You g,50 U. 1 18 e eprs s fais' ot us hei p far. v s . ns t n 7 S. 70, 5 ' ( 9 ) I patt si be a eate o r ofmone da ge unde l U. C.j1 44)i no 1 93. n r,hi s c us l c vey r y ma s r 8 S. 96 s t agai a RI ent prs but agai t a RI def nst CO er ie, ns CO endant w ho i a d son em pl yed or s per a scitdwi aRI e tr ie' Pal to,1 7F.da 1 ( tng 1 U. C.j1 2(). so ae t h' CO neprs . met 1 3 t 48 quoi 8 S. 9 c) ' Th qu si t n,i whehe t e tprss (65 Pat r a Ri r nt a d t e e ton, he s t r he ne ie 1 0 rnes nd vemo ) n he RI dee n ( .Wyn )c nbec nsd rdditnc f tepuros sofj1 Be rngon CO fnda t Mr ne a o iee si t or h p e 962. i t s quesi i t U nied St es Courtof Appeal f t Fourh Cicui' concl on ha t hi ton s he t at s or he t r ts usi t he wor dent prse' tw as meantt r ert a bei dif ent fom ,nott sam e asor pa of t d i er i ' t o ef o ng fer r he , he 5Be a eId notbe ivet Sou hgae Le g W ynn Tr tf l wihi t defnii ofue e prs ' u c us o le he t t i h e us als t n he i ton nt r ie' nde RI ,1 CO d ciet c n i e i a o eo Mr Wy n ' alg d e tmrs s S eBo n rv He d r o ,1 7 F.d 4 7 4 0 (t e l o o sd r t s n f . n es l e ne ie . e n e . n es n 4 3 5 , 6 5h n e Ci. 9 8 (o cu igt a t tu t o sn t u lf a alg l ni e tr rs a c ne ltd b R1 '. r 1 9 ) c n ld n h tt rs d e o q ai s e a e ty nep ie s o tmpae y CO' a y t ) 6Defnda t ty t aguetata E ntr ie'f puros sofI e ns r o r h n ç eprs ' or p e e UCO i t twhih i d c r t ou t eus of s ha c s t quied hr gh a e ilg la t i e o b mo e o tie fo i e a a t i e . Na 'Or . o Wo n I c v S h i lr 1 U. l a ci t s r y n y b an d r m l g l ci t s' t1 g f r me , n . . c ede , 0 S. e vi l vi ' 249 25 ( 9 . Ho ve,te Sup e Coutma a nda l ce rt tt squ e lngu ge c rc rz ste , 9 1 94) we r h r me r de bu nty la ha hi otd a a haa t ie h dei to ofe e ieun rs s ci ()a ()t j 1 2. 1 A c ta t te çnemrs i s ci () tniin ntmrs de ub e tons a nd b o 96 d E onrs, h e t ie' n ubs ton c By c not ge er ly t ve c e t r ugh whi t e unlwf pa t r ofr c t e i a tviy i c on es n a l he hil h o ch h a ul te n a ke e rng c i t s omm it d,r h rt an te e h t vitm oft ta tviy. I I ot rwor ,he4 ntr ie'un rs bs cin ()i e onybeana s itoni he ci ha ci t ' d n he ds t ç eprs ' de u e to c ç d l ' e ne so ai n f c t t e ge i a pa t r ofr c t e i g a tv t ' l The e or , i t s r ga d D e e n s a e it ke a t ha nga s n te n a ke e rn c i iy. d. ' r f e n hi e r , f nda t r sa n; CVL h sc re tyitmrtdt eme nn o ç nep ie' n e j 1 6 ( ) R a o rcl n e ee h a ig f d tr rs 'u d r 9 2 c. e 21 Pe s whos be vi t ac wa de i ed t p o bi,a d,f ii g t t t pu s ' Unie r on e ha or he t s sgn o r hi t n a ln ha , o nih. ' td Sttsv Co trSc.Cor ,689F. 1 81 1 9 ( hCi.1 2) ov rue i par Bu b ae . mpue i p. 2d l , 1 0 4t r 98 , er ld n t sy v Cr wnSu y,I 8 F.d83 ( hCi.1 90) . o ppl nc, 96 2 3 4t r 9 . I Cedri Kushner, t Supr m e Court of t Unied St es addr s t narow n c he e he t at es ed he r qu tonofwhehe t rquie ntofj1 62()t tt i ro ' ndç ntrrs'bedsi ti esi t r he e rme 9 c ha he ç s n'a d ep ie' pe e tnc s sa ited when t aleged ent pr s i a cl el hel cor a i and t aleged per n i t tsi he l er i e s os y d por ton he l s s he pr i nt and s e shar der empl esde ol ehol oyed by t com or i hat aton. 533 U . at 1 S. 60. T e Cour t concl uded t t such a çper on' and çe e prs 'w er i f ,ditnct f pur es o RI ha s s ' dnt r ie' e, n act s i or pos CO: t- cor at ownerem pl t rhe por e / oyee,a nat alper on,i ditnc f om t cor aton isel, l l ur s s si t r he por i t f egaly dif r nte iy w ih dif r ntrght a r s ns biii s du t is dif r ntl g sa us And we f e e ntt t fe e i s nd e po i lte e o t fe e e al t t . c n fnd n hi i t sa u e t tr quie m or ie r t ne s t n t t' I a 1 Furh r a i ot ng n he t t t ha e r s e s pa a e s ' ha ha . d. t 63. t e , ' t Cour r oned t t is r i algned wih one ofR1 ' pur es;t wi,t pr c i of he t eas ha t ulng i t CO s pos o t he ot ton t p i fom t e who unlwf l utlz a e tprs ( te lgii t o n t a a he ublc r hos a ul iie n ne ie wheh r e tmae r ) s y vehi e f t com m i son ofunlw f actviy.1 a 1 cl or he si a ul i t d t 64. The Fourt Cicui' r h r t s ecenthol ng i Unied St es v.Reese,442 F.A pp' 8 t Ci. di n t at x h r 2011 c mpo t wiht Sup e Co tsde son i Ce i Ku hne .I Re s ,whih ivol d ) o rs t he r me ur' cii n drc s r n e e c ve a crm i pr ecuton, t pers aleged t have vi at RI was a phys ci nd t i nal os i he on l o ol ed CO i an he ent pr s he alegedl utlzed washi m edi pr tce ofw hi he wast sol pr er i e l y ii s cal ac i ch he e oprit . I or d a 11. The cour addr s whet t di ti cour had abus is di e i by elm i atng a t t es ed her he srct t ed t scr ton i i prposd sae nt fom a RI i tu to t two d ha i or t j y ha t o e ttme r CO nsrcin ha ul ve nf med he ur t he ent prse m us be ditnc fom t def er i t s i t r he endant I . at 1 The govem m entar . d 2. gued t s a ha uch ditncton i esabls s i i s t ihed as a m ater of 1 wher t ent prse i a l t aw e he er i s egal entt nd t iy he def endanti a per on. I The c tuli at y hel t tt i t ctons t w er gi s s d our tm el d ha he nsnl i hat e v 22 f ry ail sat t contoli l and di noter by om itng t af em entoned pr ed s a e e .I t ed he r lng aw d r ti he or i opos t t nt d Thus appl ng Cedri Kushner and Rees t t case a hand, i i cl t t C LR has , yi c e o he t t s ear ha a e uaey alg d aRI dee da t( .W yn )a RI e eprss(650 Patesa d q tl le e CO fn n Mr ne nd CO ntr ie 1 r r nd 7 Ri r t, not ihsa ngt f c t tt e h et a pe r nc ofbengme eat re os ve mon ) w t tndi he a t ha h y av he p a a e i r le . 3.d t r ofRac t er ng Ac i t 'underR' t en pat ke e i tviy' I CO I or ert s a e a cl m und rRI ,CV LR m us a l g t tM r W yn c nd c e t e n d o tt ai e CO t le e ha . ne o td h af isof1 Pa te sa Ri r ntQhr ugha p ten ofr ke e rng a tviy. 1 . C.j far 650 rn r nd ve mo o a tr ac t e i ci t ' 8 S. ' 1 2() Se ma,47 U. a 49 l patt p ten r uie n t t t e ur t tRl s 96 c, di ' 3 S. t 6. n r,he atr eq rme t ç s o ns e ha CO' ac extaor nar r edy does nott ea en t or na y r ofcom m er alt ans i ' enas r di y em hr t he di r un ci r actons.' co, I .v Wa s r nc . s eman,88 F. 681 68 (t Ci.1 9) s e alo US Ailne Piot s ' v 6 2d , 3 4h r 98 . e s , ri l s sn . 4WAPPA,LLC,61 F. 31 31 (t Ci. 0 (otngt tR1 stebl da g sp o so 5 3d 2, 7 4h r 201 ) n i ha CO' r e ma e viin , 1 Ho ve , CVLR ca notas na 1 Pat r a Ri r we r n lo me 650 rnes nd vemont t alge e e rs ,a d e d nt i is , he le d ntm ies s efn s n t RI c us ofa ton. çfh e e ieass c g e al fc snos ci 1 62( RI la lt ' Unie St e v CO a e ci ç'e ntmrs u h en r ly a e e ton 9 c) CO ibiiy. t ats . ' Phl Mo rs U A / c, 6 F.d 1 9 ,1 1 ( C. r 2 0 ) I d e ,h o l te r u d rwhc CV R c u d ip r i S H . 5 6 3 0 5 1 1 D. Ci. 0 9 . n e d te ny h o y n e ih i ol a gue t a 1 Pa t r a Ri r t a e pe misbl de e nt i is RI c a m wo d be one ofvia i r h t 650 rne s nd ve mon r r s i e f nda s n t CO l i ul c rous la lt W hie t Unied St esCour ofAppe l f t Fourh Cic tha ye t s a ey r s ve t s u t ibii y. l he t at t a s or he t r ui s t o qu r l e ol he s e, he mao i o cr ut ta h v d n s h v c n ld dt a a e tmrs c n o b vc ro syl bef r h a t o a j r y f ic i h t a e o e o a e o cu e h t n ne ie a n t e iai u l i l o t cs f t s a p ro wh ,i c n r ln o u izn t a e trrs ,vo ae 1 U. C.j 1 6 () S e eg ,i Mi e v es n o n o tol g r t iig h t ne p ie ilts 8 S. i l 9 2 c. e , .. d; l r . l Y k h ma Tr Cop. 3 8 F3 61 , 9 2 ( t Ci. 0 4 ; h Pa k g s I c v Fi ec r I c, 2 F2 1 0 , o o a ie r , 5 .d 6 61 - 0 9 h r 2 0 ) Ke r c a e , n . . d lo , n .9 6 d 4 6 1 1( dCi. 9 ) f n r v Ai LiePi t As ' 1 t AFL C O, 0 F2 4 4 4 5( t Ci.1 9 ) S t / v 41 3 r 1 91; a dy . r n l s sn n 1 - I 9 1 .d 0 , 2 5 h r 9 0 ; Wet . o f Fis C? /.Cop.o so ,7 3F.d2 , 2 3 (s Ci.1 8 ) Hao o Ic v Am.Na 1Ba ( T J Co o r t ?.y r fBotn 9 2 8 3 - 4 1t r 9 6; r c , n . . ; t nk Q / .f Chi 7 7F.d3 4 4 & n1 (t Ci. 9 4 .AsteS hfedc ra t rmak d . 4 2 8 , 01 .8 7h r 1 8 ) h c o l outpl e re , , y t co ep ofvi a i s la lt i d r c l atoddswih t Cong e sona i e be nd s c i he nc t c rou i biiy s ie ty t he r s i l nt nt hi e to 1 6 () Bo h te ln u g o t a s b e to a d t e a t uae p i r mo iain b h n 9 2 c . t h a g a e f h t u sc in n h ri ltd rma y t to e i c v RI s ow t t Congr s i en d t s pa a e t e e er ie fom t e c i i K r o 'o CO h ha e s nt de o e r t h nt prs r h rm nal pe s n' ç r o .' I e t r i unlkey t be a st ton,i t a e e ofan e pr s sa e t i E s ns' nde d, he e s i l o pe iua i n he bs nc x e s t t men , wh c Co e smor c e ry i di a e t a r s nde s pe i i c nta y t isi e . i h ngr s e l a l n c t s h t e po at u ror s o r r o t nt nt 7 3F.da 3 .I UntdSa e v Kn x No 70 CR0 0 9 2 0 W L 2 0 9 4 , t* ( . Va Au . , 0 3 , 9 2 t 2 n i tts . o , . :2 0 0 , 0 3 e 2 1 0 6 a 4 W D. . g 2 0 ) a u ubls ed c s ,t dititc ur f n np ih a e he src o t ound i ac i i lRI c s t tt c por t e e p iecou d, t e b i n rm na CO a e ha he or a e nt r rs l on h ass ofr s nde s pe i r alo pr ry be na a ade e da . I r a hi t s c ncus o t c r l e t t e e po at u r o , s ope l med s f n nt n e c ng hi o l i n, he ou t oo d o h F u t Cic i' p o o n e n i Untd S ae v Na a ,3 0 F3 4 6 4 4 ( t Ci.2 0 )t a t r cpe o o r r uts r n u c me t n i t ts . j r 0 .d 6 , 8 4h r 0 2 h t û i ils f h e j p co ort la ly a y i te RI co e t' Fr t s lngu ge,t c ti er t Fourh Cic ts m ae ibii ppl n h CO ntx . t ' om hi a a he our nfred he t rui' en r e e to t e a iabiiy ofr s ea s pe i prnc plst cor r e e e prs whos e oy svi ae do s m n f h pplc lt e pond t u ror i i e o po at nt r ies e mpl e ol t RI Kno 2 W L 2201 6, t* CO. x, 003 904 a 3-4.Howe r ast dititc r i M o e v M ari 3 F.Su . 5 ve, he src ou tn s s . tn, 60 p 2d 33, 550 ( D. . 200 obsr e i Naj ,t go r me tal e a a s ain-n-a te eprs of hih te S. N Y. 4) e v d, n jar he ve n n leg d n socito i fc ntr ie c h coporton i q si wasonl onepice Theeor,net rNaj no Kno c n ber dt n e s rl s por r ai n ue ton y e . rf e ihe jar r x a ea o ec s ai up t r s dea s pe i r la l y i a c s s h ast i t ntone Uli el Iad t poston oft a or e i d e pon t u r o i bii n a e uc t he nsa . tmat y, opt he ii he f e ntone cic t c rs t tha f r ui ou t ha ve ound vi a i s la lt prn i es t be i a i bl t en e prs s i t c xt o 1 c rou ibii i c pl o y n pplca e o t r ie n he ont f 8 U. C.j 1 62() S. 9 c. 23 i tprmarl desi s d i iy gned t pr de s e y w ih a power ulr pons t t danger of o gani o ovi ocit t f es e o he s zed ci '. rme' ) RI is fraher unhel uly defnes a patel ofr CO t el t pf l i t' n acket ng actviy as fa l as t eeri it çt t wo at ofrc eeei a tviy,o ofwhiho curda rt efe tv daeof( CO)a t ls cs a k t rng ci t ne c c re ûe he fcie t RI n he at of whih oc ure wihi t n ye r . . . a t r t e c c c rd t n e as fe h omm is o of a pro a t of r c e e rng s in ir c a tei aci t ' 1 U. C.j 1 4 .Howe rteSupe Co tha sae t tçoprve patl tviy. 8 S. 9615) ' ve,h rme ur s ttd ha ç o t te' n ofr ket i ac i t a pl ntf ...m us s t t r ac eerng tviy ai if t how hat he acket i pr ca esar r ed,and eerng edi t e e1 t t y am ountt orpos a t eatofcontnued crm i actviy-' H J Inc. 492 U. at239. hat he o e hr i i nal i t ' , S Thus,t s i r am ount t a (contnuiy pl r atons p' t . 1d. Iexam i ea ft hi nquiy s o d i t us el i hi ' est ne ch hese pr ongs s at y,bearng i m i t uli ael S her i no m echani f m ul t ass s epar el i n nd hat tm t y, d e s t cal or a es whe hert pater r r enthasbee s ifed;i i a com m ons cal f - pecik i quiy.' t he t n equiem n ats i t s ensi , acts t r ' e u Te h,nc v Ab 31 F.d 1 l 2( hCi. 2) pls c .I . . oud, 3 3 66, 8 4t r200 . i Rel ednes . at s For t pr di e act t be r at t y m us have Ethe s e or si iar p r es he e cat s o el ed, he t ét am ml pos , r uls, pari pant, vi i s or l hods of com m i son, or ohe wie g l i e r t d b es t tci s ctm , pet si t r s be ntrel e y ditnguihi c rceitc a (otbe ioltde nt.' H JL n ,49 U. a 24 qu i si s ng haa trsis nd n ) s ae ve s'' I c. 2 S. t 0 otng 1 U. C.j35 $,rpe e b Se e i Reor Ac o 1 84,Pub.L. 98473 i.1,j 8 S. 754 e ald y ntncng f m t f 9 No. - , t 1 21 a( ,98 Stt 1 7) I t i tn c s,Ifnd t tCVLR ha a q t y al e te 2()2) a. 98 . n he nsa t ae i ha s de uael l d h r a ednes of t pr cat act A lhough s e of t e pr ca e act- f exam l , M r. elt s he edi e s. t om hos edi t s or e W ynne' aleged pr ent i of a f ged 1650 Parner check and hi aleged r p of il s l es aton or t s s l ecei lgote aut i ur tn o ns ance pr oceeds s a as outi s wihout appar connecton t ot event - t nd ler t ent i o he s ot t t com m on denom i or of M r W ynne' i vem ent ot pr cat ct ar her han he nat . s nvol , her edi e s e pl i y i er el ed. For i t nce, CV LR has aleged t t i ance pr ausbl nt r at ns a l hat he nsur oceeds M r. W ynne 24 f a enty obt ned f w or t twasneve com plt on t dam aged rdi cent b r w er r udul l ai or k ha r e ed he i ng er n e l erus t pay t depost on hi pur e of M s.Foser' pr t att f ecl r s e. at ed o he i s chas t s opery he or os e al Anot exam pl i ves M r W ynne' utlzaton oft f her e nvol . s ii i he undsCVLR t houghti w as p yi t t ng o O l Dom i on on t çm orgage' f t rdi cent pr rt A legedl M r W m ne s t d ni he s t ' or he i ng er ope y. l y, . ed hat m oney t make paym e son t W achovi l he had i o nt he a oan nduced M s.M ar h t obt n as m ea s o ai ns of cr tng l age over he Ye anot i t ea i ever r. t her ns ance i t alegaton t t M r W ynn s s he l i ha . ought equiy i t hom es of M r. M ar h and M s. Foser i or t bolt l applca i or t n he s t n der o ser oan i ons r newal s it t Ol Dom i on. e s ubm ted o d ni Moro r wih rs c t t prdiaea t,CVLR hasale d smia pur e ( . e ve, t epe t o he e ct cs lge i lr po s Mr Wyn spoc rme ofmo y a pr ry,patcpa t ( .W y uii ng ei r 1 ne' r ue nt ne nd opet) rii ns Mr nne tlzi t 650 Pates Ri r ,orboh) vitms( me wihou fna i a ume ) a mehods fr r rn r, vemont t , ci wo n t t i ncal c n, nd t ogey a ma pulto . Addii aly f r a l of t e pr diae a t, CVLR ha pld f cs nd ni a in) ton l, o I h e ct cs s at dem onsr i t tm e,pl a manneri whi t w e e car i out and has t f e, i tatng he i ace, nd n ch hey r red , her or n t s r d, m et t hei ened pl ng r r ent i pos by Feder Rul f Ci l hi egar he ght eadi equiem m ed al e vi Pr e e9b)f algainso fa Theeor,a fra t r ae s c mpo ofte ocdur ( or le to f rud. rf e s a s he eltdnes o ne h pa t n r r ent i conce ned,CVLR has aleged adequa e f t t nudge is Rl ter equiem s r l t ac s o t C cl m ai Sac os t lne fom concei e t pl i e.' Twom bl , 550 U. a 570. H weve , û r s he i r vabl o ausbl ' y S. t r r at el ednes al i nots fci t s i y t pater r re ent CVLR m us alo ale e f s s one s uf i ent o atsf he t n equi m ; t s l act dem onsr i t r st contnuiy. tatng he equiie i t i.Contnuiv i i t The c i t com ponent of RI ' pater r r ent tcentaly a t m por ontnuiy CO s t n equiem - E r l al c oncept' '--derves fom Congr s' c i r es s oncer w ih dl t m crm i conduc .' H J I c. 492 n t iong-er i nal t' , U . a 242. Thus, at botom , i e nces Congr s desie t lm i RI ' applc ton t S. t t t vi ess' r o i t CO s i i o 25 dongoi unl f actvii whose s s ng aw ul i tes cope and per sence pos a s al t ea t s alwelsit e peci hr t o oc l b ng. 1t1Dat Ba , dv Ze i 81 F. 1 1 5( hCi.1 ) ei ' n ' a nk Lt . pkn, 2 2d 49, 5 4t r 987 . The Supr e Cour has expl ne t t i t cont of t pater r r ent em t ai d ha n he ext he t n equ em , contnuiy r er Eeiher t a cl ed perod of r t conduc ,or t pas conduct t t by is i t ef s G t o os i epea ed t o t h t n t eprj csit t ft ewih at etofrpeiin. H J I .492U. a 24l Th ,i aur oet no he uur t hra e tto ' ' nc, S. t . us t can be sai t t e ar t t d hat her e wo ypes of contnuiy:icl i t t osedended' and çopen' ç ended.' ECl ed' os e de ' on i t e sswhe t ç e isofr ae pr dia e e e s o ras tnt l rod n d'c tnuiy xit n he G re elt d e c t s xtndg) ve ubsa i pe i s oftm e.' 1 at242. O n t ot hand,dopeni ' d. he her s ended' contnuiy r r t pl ntf o pl ' i t equies he ai if ead f sdemonsr i a Et eatofcontnuiy' w hi i t s f s t tgi rie t a r s act tatng thr i t' ch s o ay, act ha ve s o e onabl e e pe t ton t tt e a tviy wilSe e 1 i fniey i o t f t e' 1 Be u e t x cai ha h ci t l çxtndg ndei tl nt he uur . d. c s he ' alegatons i CVLR' am ended com pl nt do not m ake i es aly cl whi t of l i n S ai t peci l ear ch ype contnuiy pur t y exit Iwilanal bot s es. i t poredl ss, l yze h peci l or t dem ons r t cl n der o t a e osedended c i t d m ulif or t tm us be atsfed, ontnuiy, 6 a t- act es t ii and a car ulas ess ent m us be m ade of çhe num ber and varet of pr cat act and t ef s m t t iy edi e s he l h oftm e overw hi t wer com m it t num be ofvi i s t pr ence of epar e engt i ch hey e ted, he r ctm , he es at she s a d te oc ure e of ditn t ij re .' Whiny, Br ly t Br , I .v c me n h c rnc sic nuis'' te ade t own nc . Kammemann 436F.Ap x 25 25 ( h Ci.2011 (uoi Mor v.Banko r?u e n, r , p' 7, 9 4t r ) q tng gan f l k ga ' 8 F. 9 97 (t Ci.1 86) W ihrs c t tes fco s ho v ,hec urs icudig 04 2d 70, 5 7h r 9 ). t epet o h e a tr, we ert o t, l n t Fourh Cicui,have bee r uc ant t set f t a brght lne r es t gui t ' r . he t r t n el t o orh ny i i ul o de he nquiy l t al oft f or m us t i l be anal ns ead, l he act s t m caly yzed and wei . ghed A s a gener m ater i or f cl al t , n der or osedended contnuiy t exi t t r t i i t o s, he ack eerng ac i t mus usualy have t tviy t l aken pl overt cour e ofm any year . Se ,eg. Prfe inal, ace he s s c ., o o s I v.Berr No.91-1509, 1992 W L 64796, a * ( t Ci.Apr 2,1 2) (i ng ha t nc. y, t 3 4h r . 99 fndi t he 26 pa t n r r entwas m eti a case i w hih t pr cat act t pl overt c ur e of ter equiem n n c he edi e s ook ace he s t eeye r) Wal v Batt Ohi R. ,8 F. 68 690(t Ci.1 9)(ttngt ta e yer hr as; k . l.f o R. 90 2d 8, 4h r 98 sai ha n- a peid wa s fcintfrco e e d c ntnuiy ;Mo ly v Coh 888F.d 1 6, 0 -09 ro s ufi e o ls d-nde o i t) re . en, 2 00 08 (t Ci.1 9)(oncudi t tt patr rquie ntwasme whe t un ryi s h me 4h r 98 c l ng ha he ten e rme t n he del ng c e lse fra o mael fve ye r) Br de bur v Sede,859 F.d 1 79,1 86 (t Ci. atd o pprxi t y i as; an n g . i l 2 1 l h r 1 8,abogatd i par b Qu k nb h v Alsat I .Co. 51 U. 706 (996 ( s ng 98 ) r e n t y ac e us . lt e ns , 7 S. 1 ) a umi t tt pater r r m entw assa ifed w her t pr cat act w er com m it over s n of ha he t n equie ts i e he edi e s e ted pa moeta t e ye r) Unie St e v Prs av s 65 F.Supp.2 7 777( . V .20 ) r h n hre as; td ats . egr e , 8 d 70, W D. 09 (i n t a t p ten r q r me twa me wh n t e prdi t acst plc ov r egh fndig h t he a tr e uie n s t e h e cae t ook a e e it y a pe id) Av on y Co e r ro ; al ba mmunte ,I .v Wile No.107 v998 2008 W L 2 9 3,a * iis nc . ld n, :c , 780 t5 ( D.Va.J y 1 20 ( tn ta t rlva ttme p i wa fury as;T eq v E. ul 6, 08) noig h t he ee n i erod s o e r) ouc ue . Prc Br s Co.5 F.Supp.2d 3 ,34 ( Md.1 98 (de iyi c ntn ie o . , 41 6 D. 9 ) i ntf ng o iuousc ommiso of in prdc t at o rt c reoftre y as;bu c e u ,31 F.d a 1 2 (i n patr e iae cs ve he ou s he e r) t f pls 3 3 t 8 fndig ten r r e wasmetdes t t f tt tt s m esonl t pl overt cours of pe i equiem nt pie he ac ha he che y ook ace he e rod ofmonh , tye r) ts no as. Bas on t f ss f t i t a ended com pl nt t aleged r ed he act et orh n he m ai , he l acket i ac i t i eerng viy n t cas at hand t pl over t cour e of appr m a el t ee t f year . W ie t s he e ook ace he s oxi t y hr o our s l hi perod oftm e i cerai y l r t t m er w eeks or m ont t have t caly b en hel i i s t nl onge han he e hs hat ypi l d i nadequat i i alo notes aly l ornot e, t s s peci l ong eworhy. Raher i r es sa tm e pero cl er t t , t epr ent i i os t t l - oft r evant spe r . M or o he ow end he el ctum eover whie t pr cat act per r d m ay , l he edi e s petat have bee s fci l r at t e i no alega i t tt y wer bei com m it cont uousy n uf i enty el ed, her s l ton ha he e ng ted i l durng t ttme s i ha i pan. Ther or i t case athand, t pei oft aonecnnot siya ef e, n he he rod i l a j tf me fndi ofcl edi ng os ended contnuiy, t necesst i exam i i oft r ai ng f or . i t hus iatng naton he em ni act 27 CVLR aleges t com m i son of sx pr cat act not al of whi ar r a ed. As l he si i edi e s, l ch e el m entoned,i or t sat a RI cl m ,onl t pr cat act ar neces y t eet t i n der o t e CO ai y wo edi e s e sar o he foo stby t saue 1 U. C.j 1 () Ho ve,mos c s s i whih t patr lre he ttt. 8 S. 9615. we r t a e n c he ten r r enthas been m e i ve sc es wih a m uliude ofr at pr cat act . ee,e. , equiem t nvol hem t tt el ed edi e s g. Pr#si al,1 2 W L 6479 a * -3 (bsr ng t t58 p e c t a t wee c mitd) o son s 99 6, t 2 o evi ha r diae cs r o te ; More 88 F. a 1 0 (e r n t ttee wee ç umeous'i tnc s ofma fa ; ly, 8 2d t 01 rmakig ha h r r i r ' nsa e n i rud) Br e r 8 F. a 11 5 6(esrbi lr n and nbug, 59 2d t 8 -8 d ci ng age umbe o prdiaea t) Prs e ,658 r f e c t cs; egr s F.Su 2d a 77 (ttng t ti cme ha i nied 1 prdiaea t) Av l .,200 pp. t 7 sai ha ndit nt d de tt 4 e ct cs; aonb y 8 i W L278 3,a * (ttn t th rdsofprdc t a t weec mmitd) 098 t 5 saig ha unde e iae cs r o te . A ddii l CVLR has notaleged a w i varet ofpr cat act i tonaly, l de i y edi e s; ndeed,i asonl t y ass t a f i t ered ew nsances ofw ie faud a a f i t r r nd ew nsancesofbank f aud. W hie s h r l uch ogeny i notpr bii ofpr s ohi tve oceedi on a RI cl m ,t varet ofpr cat act i a f ort t ng CO ai he i y edi e s s act hat he coursar e il t t i o account See e. ,AlAbood e rel AlAbood v.Elsham r,217 t e ntted o ake nt . , g. x . i F.d 225 238( t Ci. )( bs r ngt a ony mala wie fa we eale e a e c t 3 , 4h r 2000 o e vi h t l i nd r r ud r lg d s diae a t) On ar ltd noe, heprdiae a t alg d byCVLR ham e onl f rvitms hih i cs. eae t t e c t cs le e r d y ou c i , c s ce t nl r evant but har y evi rai y el , dl dence of wi r ng r de-angi acket i actviy. See,e. ,epl eerng i t g. us, 31 F. a 1 ( tn te ditit c ts rfrnc t t lre n 3 3d t 71 ciig h src our' eee e o he ag umbe of itms; r ci ) Pr#si al,1 W L 647 a * (e ci ng sxte vitms;Br e r 859F. a o son s 992 96, t 3 d srbi i e n ci ) and nbug, 2d t 11 6(ttn t tt e ewer mor t a 2 00 vitms. 8 saig ha h r e e h n 2, 0 c i ) The fnal si fca f t t war a s menton her i t pr ence of uli e i , gnii nt ac or hat r nt i e s he es tpl s chem es. CV LR aleges onl one s l y chem e bei per t a ed by M r W m ne t o gh t ng pe r t . hr he l he em t d ent prs of 1650 Parner and Ri m ont' w hie t Supr e Cour has hel t at one er ies t s ver . 81ob e'e t ata G che ' i a r t r male bl c c ptwih a s l- vi ntde i to Ast Su e e Cou t sl h v s me ' s ahe l a e on e t out e fe de fnii n. he pr r n e ,a s he e ç s i t e oft be de , s nc wh t ra s he e s sde ndson t lvelofge r lt at ot d c m t n he ye he hol r i e e he c me xit pe i he e a iy 28 CO ai L nc. S. t he es y sc e i s f i entt m ake outa RI cl m ,H % I ,492 U . a 237,t pr ence ofonl hem s u fci o o she ne et ls cnbe(ndhasbe n tke it a c unti weg ngwhehe h fds ne c me v rhee s a a e ) a n no c o n ihi t r ea aIeged dem onsr e t contnuiy r r by RI l tat he i t equied CO, see e. , GE lnv. Priat Pl cement , g. v e Pa t r 1 v Pa k n l47 F.d 5 5 ( hCi.20 )( evi prs n e ofone he ) rnes 1 . r e 3 43, 49 4t r 01 obsr ng e e c me ; Me c 88 F. a 6 (çT) e se eofasngl she aone whieno dipos i ,c n naso, 6 2d t 84 ç he xitnc ( i e c me l , l t s ive a berlva tt teco i t i uiy. Fl Mo t geCor v Mc ho 8 F.d 31 5 ee n o h ntnuiy nq r ' + rga ); p. . El ne, 41 2 , 38 (t Ci.1 88 (ii t sngl s h met twa pe tae . 4h r 9 ) ctng he i e c e ha s mertd) Consder i of t af em entoned f or l i aton he or i act s eads m e t concl t t CVLR has not o ude ha dem onsr ed cl ed- d contnuiy. H owever as pr ousl m entoned, t c ntnuiy tat os ende i t , evi y i he i t elm entoft pater r r entcan alo be s ifed by s i opene he t n equiem s ats i how ng ended contnui . i t An i r i o opennquiy nt ended c i t i dif entt n one l ng f t pr ence of ontnuiy s f er ha ooki or he e c o e - n d c i t Op n- nd d c tn t i c r t rz d b r l t d pr di a e t t t l s d e de ontnuiy. e e e on i uiy s ha ac e i e y e a e e c t s ha , l ki f wa d p e a E s i tt r a ofl ng-e m r c t e i a tviy. H J I oo ng or r , os < tnc h e t o t r a ke e rng c i t ' di ' nc, 92 U . S. a 24 s ealoPyr dSe .Lt r I Reolton l c,9 F. 1 1 ,111 ( C.Ci.1 91 t 2; e s ami c d .B s ui , n . 24 2d 1 4 9 D. 9 ) (ttng t top n- nd d c tnuiy r quie d a mo e t n a hyp hei a posi lt o f rh r sai ha e e e on i t e r s d r r ha f ot tc l sbiiy u te prdiaea t' Ahe c rflc i rton 1fn t tCVLR h no pld s fcin fcst e c t cs). r aeu onsdeai , id ha as t e ufi e t a t o de monsr t s h a t e tofl ng-e m ,c tn d c i i la tviy. ta e uc hr a o t r on i ue rm na c i t l or t bolt iscl m t ti has mett contnuiy r r ent CVLR ale est n der o ser t ai ha t he i t equiem , l hat tt cons the equenoesoft s he chem e have notyetbeen com plt and a e contnui ' Am Com p. e ed r i ng.' ! 1 Mor s cfc ly,CVLR cams ()t tirmai wihou t be f ofisc r c f 56. e pe iial li : 1 ha t e ns t t he neh t on at or whih c i na aci t i vi ' H J I .v Nw.BelTe.Co,492 U. 229,24ln. ( 989) Wha i mor, c rmi l tviy s ewed. ' nc . l l . S. 3 1 . ts e Rtheei no ob ou l t re t lve ofge rlt frc rst us i d c i n t c i nalaci t le d i ll r s vi sy co rc ' e l neaiy o ou t o e n esrbig he rmi tviy lge n RI ltga i ' l l t i lntc s lfn t tCVLR' al ga i e de ea s n e s hemebeng p e r t d CO ii ton. d n he ns ' a e, i d ha S le tons vi nc i gl c i ta e byMr Wynner t rtans vealditnc,rltds he . Se Am.Compl I83( s usig t pa rd'c erd . ahe h e r si t eae c mes e .J dic sn he pe s ov e byM s M as t tal e y de cied Mr W y sK fe s he n ;Am.Compl 5 1 (tlzngt sn a . rh ha leg dl s rb . nne' uniid c me ) . 56 uiii h igulr f m ûch 'a o edt t plr lf m) or ç eme' s ppos o he u a or . s 29 t p c s oft rdi cntrprpet ( t tMs Fose rmanswih lga ttet he he urhae he i ng e e o ry; 2) ha . tr e i tout e l i o r ho ()t tM s Mas rmaisund rt e toffr ls r a d ( t tRi r c niue me; 3 ha . rh e n e hra oeco ue; n 4) ha vemont tn s t hol is f out as a ba on t i er t H owever i sm pl cannot be t cas t at s o d tel nk he nt ne . ,t i y he e uch r i esdualefect f om M r W ynne' pr ous faudul actvii r esent t Et eat f l f sr . s evi r ent i tes epr he dhr ong- t r ,c ntnu d c i i l a tviy' t t o n- nde c ntnuiy r q r s GE I .Parn r ,2 e m o i e rm na c i t ' ha pe e d o i t e uie . nv t s 47 F. a 549. I ot wor ,t f tt tcons 3d t n her ds he ac ha equences ofM r W ynne' pr cat act ay sil . s edi e s tl lnge doesnotneces ariy mean t tM r W ynne,t ough t oper i ofhi ent prs s,pos i r s l ha . hr he aton s er i es ac niuedt e t( a latno a mor s t n a p ro whoc o tn hra or t e s t ny e o ha ny es n ommisaci ) Ast t rme . he cour cogenty fam ed t s poi i Edm ondson drGalagher v.Al Towers Tenant s ' 48 t l r hi nt n l ban s s n, F. 1 0,1 4 ( C.Ci.1 ) Egl o y posi e rtonae t tc d s r sc a 3d 26 26 D. r 995, tthe nl sbl ai l ha oul uppot u h pr cton--once a RI edi i CO vi at , al ol or ways a RI CO vi at - woul deprve t pa t n ol or d i he ter r r m ent of al m eani by es abls ng openequie l ng t ihi ended contnuiy whenever t o r m or i t w e pr ca e ac swer s n.' edi t t e how ' A lhough CVLR m ay have been de i of t beneft i bar ned f u der is t prved he is t gai or t contactw ih S & R Far ,and des t t f t M s Foserand M s.M a h m ay noth ve tte r t m pie he act hat . t rs il t t r hom es any l o hei onger t , hose aleged act have aleady been pem e r ed. Thus t ca l s r t at , he nnot suppor CVLR' alega i t t s t S l ton hat he chem e i ongoi and contnuous. Si iary, t actt s ng i m l l he hat Ri m ont may contnue t adveri on t i er i of no m om ent Si pl beca s M r ver i o tse he nt net s . m y e . W ynne may have, i t pas ,r Ri mont t s ve hi aleged r n he t un ver o er s l acket i ends oes not eerng n c s a iy me n t tt e tt is ll whih c d be r lgii t l pos s a t r t t e e e s rl a ha he n iy te t c oul un e tma ey, e h e o h publcort aleged vi i si t i t cas sm pl by vi ue ofiscontnued exit . i he l ctm n he nsant e i y rt t i s enc l H . I f t fr tand onl tm e,t Supr e Courtof er a exa pl ofa t eat n L nc, or he is y i he em f ed n m e hr of l t m r ket rng actviy t woul s i y t contnuiy r r ent Th Court ong-er ac ee i i t hat d atsf he i t equiem . 30 des i a hoodl w ho wentar crbed um ound s lng Si ur eli sns ance' i or t cover sor per agai t ' n der o t ekee ns br eakage oft rw i hei ndow s t lng t t he woul be by ever m ont t colec pa ments , eli hem hat d y ho lt o t t coul contnue t r cover hat hey d i hei age. 492 U. at 242. t hough t num ber o r at S. v he el ed Pr cat i ved m a be smal and t edi es nvol y l hey may occur cl t he i tm er't ose oget r n i ' Cour t r m a ke d he r c e e rng a t t m s ve i cl de a s c f t e t of r p tton e t ndi e r d, é a k t e i c s he el s n u t pe ik hr a e e ii e ng ide tl it t ft e,a t s ppl t rquiiet e to c tn t ' I ( p ss n hniey no he uur nd hus u y he e st hra f oniuiy. d. e ha i ' a de ) d d. I t i t cas t onl alegaton t even ar n he nsant e, he y l i hat guabl appr y oaches s a r of uch eat ext ndi i i t y i o t f ur i CVLR ' r herconfusi cont i t M r W e ng ndefniel nt he ut e s S at ng enton hat . ne,t o t s da t eat t alow W achovi t f ecl e on M s M ar h' pr t i Sout ar i hi y, hr ens o l a o or os . s s opery n h olna. Ho ve ,CVLR f is t alge ho M r W ynn h s t a lt t f c W a ho ( r is we r al o le w . e a he biiy o or e c vi o t s c s )t frcl eorwhy t home ha no be n frcos o d piete fc h tMr ucesor o oe os he s t e oe l ed n es t h at a . W ynne s opped m aki m orgage paym e s on M s. M ar h' behal i Sept b t ng t nt s s f n em 2008. M or eover even acceptng t salega i ast ue,w hi lm us ,t m er ass i ofone nsance , i hi l ton r ch t he e erton t ofa contnui t ea- whi not bl does note f m t bas s ofany oft predi at ac s i ng hr t ch, a y, ven or he i he e t aleged- i sm pl notenough t es abls a t eatofcontnued r l si y o t ih hr i acket i actviy. l he end, eerng i t n CVLR' efectvel uns t i ed cl m s t t s S f i y ubsantat ai hat he cheme i t s case i contnu us a e n hi s i r i nadequat t r e o each t t c usi See Vi ha oncl on. com,I v Har dge M erch.Senw , I , 0 F. nc. . bri nc. 3d 7 ,78 (t Ci.1 94 (ç t e tofc tn t cnno befund fom badase to s has 71 3 7h r 9 ) E hra oniuiy a t o r A l srins uc ttedee n)c tnu hi rc ee rngatviis'). lh fnda t oni es s a k tei ci te .' Sepa at y,I obs ve t t a pl ntf cannot dem ons r e openr el er ha ai if tat ended contnui i t i f he r ket i a i t has a Ebuit i endi poi .' GE I Part s,247 F. a 549. l t ac eerng ctviy E l-n ng nt ' nv. ner 3d t n he cas a hand, CVLR aleges t exit e t l he sence of one unii s fed chem e bei per r ed by M r ng petat . 31 W yme te obec ofwhih wa t derudi oft f rvitms( l ,h j t c s he fa ng he ou ci CVLR,Ms Ri r,Ms . v s . Fose,a M s Mas . Howe r a c pig t al ai a tue lfn i e d nt ha Mr tr nd . rh) ve, c e tn he leg tons s r , id t vie t . W ynne unlke t Supr e Courts fctonalhoodl i H J f - has accom plshed t end i he em ' ii um n nc. i he oft ts ha chem e. l ndeed,accor ng t CVLR' ow n as rtons al f vitm s have bee biked, di o S se i , 1 our c i l j ta Mr W m nei e ed. Co e nl,t fa e s e de s dby Mr W n h us s . ntnd nsque ty he rudulnt ch me vie . ne as neces iy com e t an end,not ihsandi as pr vi l m entoned,any negatve e ct t t sarl o w t t ng, e ousy i i s ha m i s il lnger f t vitm s. And when s a s ght tl i or he c i uch chem e has r eached is endi oi ,i t ng nt t ca ,eihe l l or l caly,be cha act i ascontnuous. Fort e r ons I l t t nnot t r egaly ogi l r erzed i hes eas , nd ha CVLR has f l t alege s t ent f t dem onsr tng eihe cl edaied o l ufici ac s tai t r os ended or op ended contnuiy. Accor ngl t pater r r enthasnotbeen s ifed. i t di y, he t n equiem ats i Uli at y,t s out e i appr i e i lght oft faud aleged i t s case whi tm el hi com s oprat n i he r l n hi ch, t hough i m ay ver wel be crm i ,does not f lw ihi t s tof pa t n of r t rng f t y l i nal al t n he or ter acke e i or whi Congr pr ded ci lr edi i RI . l ch ess ovi vi em es n CO ndeed,RI çi CO çdoes not coveral i s a l t nces of wr ongdoi ng. Ra her i i a uni caus of acton t t i concer t ,t s que e i ha s ned w ih e i i t r catng or zed,l t m ,habiualcrm i actviy.' US Ai i Piot 615 F. at 317 quotng gani ong-er t i nal i t '' rlne l s, 3d i Ga oav Vee ,457F. 703 7 (t Ci.2 ). l tec s a ha t fw i tnc sof mb . lz 3d , 05 7h r 006) n h a e t nd,he e ns e bank faud and wie f aud aleged,whie s ewha r a ed,do notam ount t such l g-er , r r r l l om t elt o o tm h biua ci na c uc.Furh r t yd nott e tnGnde t rpeii ,'UsAiln Piot, a t l rmi l ond t te,he o hrae G fnie e tton' i ri l s 6l5 F. at320,orpos ats alt eatt s alw el- ngr'Ze n,81 F. at155. Si pl 3d e ûpeci hr o oci lbei ' pki 2 2d m y put t alegatonst com pos CVLR ' RI cl m ar Snots fci l out de t h artand , he l i hat e S CO ai e s ufi enty si he l of faud cas t war ant RI teat r es o r CO r ment' AlAbood, 217 F. at 238. They ar beter 3d 9 t .' r edi w ih s a e I caus ofacton. Accor ngl , Iwildim i CV LR' RI cl . em ed t t t aw es i di y l s ss S CO ai 9I t sve n, heUnie S a e Cou t Appe sf t Se en h Cic th sobs r e t d t t s r of al or he v t r ui a n hi i t e v d: 32 B.St e Law Cl m s at ai A bs a s vi ng RI cl m ,CV LR i l tonl wih st e l cl m s f b eac of ent ur vi CO ai s ef y t at aw ai or h c ta t t to i t r e e e w ih t pe f r a c of c nta t a bus n s c p r c i on r c , ori us n e f r nc t he r o m n e o r c , nd i es ons a y n vi ai o Vigni Cod j 1 2olton f r i a e 8. 499. l lg oft f c t tt r i no ba i f ie st n iht he a t ha he e s ss or v r iy jrsito i t smat ,lwile riemy dicei t dimisac s i whih a fdea u idcin n hi ter l xecs srton o s s a e n c l e rl camsha be ndimisda donl saelw cli rman.28U. C.jl () Uni dMi li ve e s se n y tt a ams e i S. 367c, t ne ' Wor r o kes fAm. Gi s 383U. 71 7 (96 . v. bb , S. 5, 26 1 6) lV.CONCLUSI ON For t r ons s a ed he ei CVLR' RI cl m i di m i ed and ldeclne o as t he eas tt r n, S CO ai s s ss i ser s e na j iditon ove termani sae1w cai . Acc r ngl t sc s s l be upplme tl urs ci r h e i ng tt a l ms odi y, hi a e hal dim i s d. An a o i t or ra c s se ppr pra e de c ompa e t sm e or ndu opi on. ni s hi m a m ni Th Cl r oft Co ti he e d r c e t s nd a c rii d c py oft s m e r n e e k he ur s r by ie t d o e e tte o hi m a dum opi on and t accompanyi or rt a1 couns ofr d. ni he ng de o 1 el ecor Ent r t s e ed hi day ofAprl 201 i, 2. NO AN K .M O IM TED STATES DI J STRI CT t i lRI pli if pess i tyi t ftas a epe i a rund hol by s e ng g de clvi CO antfs rit n r ng o i qu r g n o e que zi ar n va i t b i s dipu e i t ci lRI a tons W hie i i cl rt tt s o ofc vi RI rey usne s s t s n o vi CO c i . l t s ea ha he c pe il C e e ds be nd t pr o ypi a mobse o or n z d crm e s di a e i i equ l e d tt xt n yo he ot t c l t r r ga i e i yn c t , t s aly vi en ha RI ha n f der lze e r s ae c CO s ot e a i d ve y t t ommon-a c us ofa to a ia e t r dy busne l w a e c i n va lbl o eme i s de sg s . al one our Mi stGrn n Co. .S t,9 F. 1 6,1 ( t Ci.1 92)( ttonso te . dwe idig v piz 76 2d 01 025 7h r 9 ciai mitd) 33 DGE

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