Cifuentes et al v. Regions Bank

Filing 128

ORDER denying 74 Motion to Dismiss. Signed by Chief Judge Federico A. Moreno on 10/10/2013. (err)

UNI
TED STATES D I
STY CT CO UR T FOR TH E
SOU TH ERN D I
STRI O F FLORIDA
CT
M i m iDi s on
a
vi i
Cas N um be 11 23455- I M O R EN O
e
r: C VLA UR A Y ELI
TZA CI EN TES a M ER LE
FU
nd
D E LA S M ERCEDES SI A CA STR O,
LV

Pli tfs
a n if ,

REGI S BAN K ,
ON

D e e nt
f nda .
O R D ER D EN YI G D EFEN D AN T' M O TI N TO D I I
N
S
O
SM SS

Thi c ei as tf r cison da
s as s ui or es s i
mage b ed on t s eofs urtesb a unr git r d
s as
he al
ec ii y n e se e

deae i vi ai ofFl Stt j51 1 ) Pl ntfsfldaSe ondAme edCls Compliton
lr n olton a. a. 7.2(1. ai if ie
c
nd a s
an
M a ch 1 201 Def nda m oved t di m i s t Com pl i ,a gui fve di tnc gr
r 9, 3. e nt
o s s he
a nt r ng i
s i t ounds f
or

dimis :()Orgi lPl ntfslc sa ng a t c dnothavea ndedt Compl nt
s sal 1 i na ai if a ked tndi nd hus oul
me
he
ai
t i udec rntpl ntfs ( Cure Pli if lcksa ng;( TheCli aebare byt
o ncl ure ai if; 2) rnt antfs a tndi 3)
ams r rd he
St ut of miai ;4)TheSec Ame
at e Li ttons (
ond
ndedCompli doe not eOrgi l ai if'aiur
ant s cur i na Pl ntfsf l e

t s fiin l pe dfd rlu idcin; n ( ) eei n alg t ta Dee a t sa' es n
o u fce ty la e e aj rs ito a d 5 Th r s o l ai h t fnd n wa ' ro
e on
p
ma ng t s l 'undert underFl St . 51 211() TheCour ha ale dy c i rd a
ki he ae'
he
a. atj 7. 1.
t s ra onsdee nd

rj ce De e d n 'ag me t rg r i gsa ig tesau e l tto sa dfd r lu id cin
ee td fn a t r u n s e ad n tndn ,h tt t ofi ai n ,n e eaj rs it
s
mi
o
i t June 19.2012 OrderD enyi D ef
n he
ng endantsM oton t D i i t FistA m ended Com pl nt
'
i o sm ss he r
ai .

A ddii ly,Pl i tf s do a l ge t t De enda w a 'he pe s m aki t s l ' i t Se ond
tona l a n if
le ha f
nt s '
t
r on
ng he a e' n he c
A m ende Com pl nt Fort s r a ons t Cour D EN I Def nda ' M o i t D i m i s
d
ai .
he e e s , he
t
ES
e nts ton o s s .

1 Bac ound
. kgr

Thi c e ha awi ng hit y. tse sorgi l fom as c ii sfa ca ebr htby
s as s
ndi
sor l t m i naly r
e urte r ud s oug
t Se urte a Excha Com mison a i tt De enda a ispa t r , U . Pens on Tr t
he c ii s nd
nge
s i gans he f nt nd t rne s S.
i
us

Cor a U. Coleg TnztCom .c lci y' S. nson.)U. Pe i s dmulis c iy
p. nd S. l e s
(ole tvel ' Pe i ' S. nson ol t-e urt
U.
'
i t entpl t m or t 14,000i vi l whor sde prm a iyi Sout Am e ia. n epl ns
nves m
ans o
e han
ndi dua s
e i d i rl n
h
rc
a

r quied i t s t e c e a tus a ee e , and De e
e r nves or o xe ut
r t gr m nt
f ndants ve a t tuse unde t
er d s he r t e
r he

a eme .
gr e nt Regi wascha ge wih adi a a ti t s l ofs c ii sby a unr git r d
ons
r d t i ng nd be tng he ae e urte
n e se e
de lbyt Se urtesa Exc nge Com mison i Se e
a
he c ii nd
ha
s i n pt mber2009, a i en e ed i o ac e
nd t t r nt ons nt
ag ee e t ts m eday. n 201 U . . Pe i wa f
r m nt ha a
I
0, S nson s oundt ha e gedi s l a a unr se e
o ve nga
n ae s n egit r d
de e i a t i lbe or J
al r n ra f e udge M a tne .
ri z

I Se embe
n pt
rzol1 t Orgi l a ntf s Aur Te es Ciue e a M i Ciu t , fl
,he i na Pli if,
a r e f nt s nd nna f en es ied
t i one c
her
ountCom pli asr e enttvesoft esae ofGui Ciuent s who di d i es a e.
a nt epr s a i
he t t
do f e ,
e nt t t
The move t a nd t co pl nta tradmitngt t due t a i r c r a ng ofCol bi n
y
d o me he m ai fe
ti ha,
o n ncor e t e di
um a
i e t c l N , t y N r no t pr
nt s a y a v he ve e t he oper pa te . The Cour gr nt d t moton t a e t
ris
t a e he
i o m nd he

Co pli t ough i e lneai and La a Ye iz Ciue e a M ere de ls M er e Siva
m ant hr
ntri ton,
ur lt a f nt s nd
l
a
c des l
Casr bec met Pl ntfsi t c e. AnAm e dCls Ac i Compli wa fl on Fe u y
to a he ai if n he as
nde a s ton
a nt s ied
br ar
1 201 a De e
7, 2, nd f ndant o dt Dim ist Co pl nt The Cou t ahe a he r ng on t m oton,
m ve o s s he m ai .
r, r a i
he
i
denid De e ntsM oton t Dim ison J 1 , 201
e
f nda '
i o s s
une 9
2.
On M a c 1 201 Pl ntfsa n fl aM otont Am e Compli vi l e lneai .
r h 9, 3, ai if gai ied
i o
nd
ant a ntri ton

The s e c ngePl ntfss
ol ha
ai if oughtwast a Gear Cavaa asa Pl ntf, and am end t o
o dd r do r j l
ai if
w
s ntnc i t eFis Ame dCompl i a s h. TheCour g a edt sM oton o Apr l11 2013.
e e es n h r t
nde
ant s uc
t r nt hi
i n
i ,
I a s gr nt d Def nda ' M oton t a e Af i m a i D e e e on t tda e. Def nda f l d is
t lo a e
e nts
i o m nd fr tve f ns s ha t
e nt ie t

M oi t Dimist Sec Ame dCompl nt( E. 7 onApri22. 3. ihr pe t
ton o s s he ond nde
ai D. No. 7)
l 201 W t es c

t Plitfs f e t s n Ca to,heM oint Dimisrie ag me t t Co rara yrj ce
o anif Ciu n e a d sr t
to o s s as s r u n she u t le d ee td
i isJ 1 201 Or r TheCour i no i i t r viw t Or rorisr as ng.
n t une 9, 2 de .
t s t nclned o e e hat de
t e oni
ll.A nal s
ysi

Be a s t Co r h sara y b e b ifd, ed a g n srg r n ,a d rj ce t e
c u e he u t a le d e n ree h l r ume t e adig n ee td h
maort ofDefnda 'ar nt i isMotont Dimist sOr rwil r ha ht rto l
j iy
e nts gume s n t i o s s ,hi de lnot e s he ainae
f doi s TheCour' ra oni r nst s me.Thus t sOr rwildic s s ey ( )
or ng o.
t e s ng emai he a
s
, hi de l sus oll l

Dee d n ' ag me t a t Plitf Ca v j l sa dn a d ( )Dee a t ag me tta t e
fn a t r u n s s o anif r aa' tn ig, n 2 fnd n ' r u n h t h
s
s
s
Compli doe notalget tRe onsBal wa a ' ron ma ng a s e'underFl Stt j
ant s
le ha gi
r s ' s
k
pe
ki
al '
a. a.
51 211 1. a et Courdecde bot quetonsa i tt Dee n ,t M oi t Dimis
7. ( )Bec us he
t i s h si gans he fnda t is ton o s s
i de e
s nid.

A.Ge ar Car alhasSt ng
r do vaj
andi

Dee d n ag e t t anif r aa h sn tufiinl la sa dn Dee d n ag e
fn a t r u sha PlitfCa v j l a o s fce typ e d tn ig. fn a t ru s
t a Ca vj lh sn talg dt th p rh s d as c rt fo U. Pe i n . salg to i
h t raa a o le e ha e u c a e e u i r m S. nso s Thi l ain s
y
e
i ore t Pa a a 1 oft Se
nc r c . r gr ph 3 he cond Am e
nded Com pl ntale t tU. Pensons' ene a e
ai lges ha S.
i ' rtd
g

m o et $250 miloni s e pr e vi t s l ofs c ii t m or t n 1 000 i vi l ,
r han
li n als oce ds a he ae e urtes o e ha 4, ndi dua s

i cu i Plitfsa dt eCls..TheSe o dAme de Co an ie t isGead Cav j l
n ldng anif n h a s.'
'
cn
n d mplit d ni e rr o r aa
f
a a Pl ntf i isopeni pa ag aph a agan i pa a apht e W hiet Com pli tdoe not
s ai if n t
ng r r
nd i n r gr
hr e. l he
an
s

s e iial alg t tGead Ca vj lp r h s d fo U. Pe so ,i d e alg t a a1
p cfc l l e ha rr o r aa u c a e r m S. n ins t o s l e h t l
y e
e
Plitfs u c a e s c rte fo U. Pe insa ta Gead Cav j lsaPlitf. u te
anif p rh s d e u iis r m S. nso ,nd h t rr o r aa i an ifTh s h

Mo int Dimiso t eg o n t t r aa h sn ts fiin l alg dsa igi d n e
to o s s n h r u ds ha Ca vj l a o u fce ty le e tndn s e id.

-

3-

B.The Com pl ntA le t R e ons Bank w as t Pe s M aki t Sal
ai
l ees he gi
he r on
nz he e

De e n f t ra gue t tt Sec Ame d Compl i doesnots fc e ty ale
f nda t urhe r s ha he ond
nde
ant
ufi i n l lge

t tRegonsBank wa a ' ron ma ng t s e'a rquie f rcovey unde Fl Stt j
ha
i
s ' s
pe
ki he al ' s e rd or e r
r a. a .
51 211 1. sagume lkewier i onawilulys e tver a ngoft Se ondAme
7. ( )Thi r nt i s eles
lf l elci e di
he c
nded
Com pli .
ant

Fl. tt j51 . 1 1 p o ie i rlv n pat h t'e v r s l ma ei voain o (.
a S a. 721 ( ) r vd s n ee a t r t a ' l ey ae d n ilto f s
l
51 1 11ma ber ci da t ee tonoft purhaer... c peronma ngt s ea
7.2() y es nde t he lci
he c s
Ea h s
ki he al nd
e r die t ,ofi e , t r ora ntoforf t s le ,ft die t , fce , rner o ag
ve y r c or fc r parne , ge
or he e lr i he r c or ofi r pa t , r ent

h s e s n lyp riiae o ad di ma i gt es l,s on l a ds v r l l bet tep rh sr
a p ro al a t p td r i e n k n h ae ij ity n e eal i l o h u c a e
c
ya
i a a ton f r ciso ...
n n c i or es s i n '
'

Th Se o dAme d dCo lit le e i p r g a ho et t'b a e o isc n u t n
e cn
n e mpan alg s n a a rp n ha ' l sd n t o d c a d
l
a tons Re onsquaii asa'wronmakn t s e'oft es c iisa t tt m i usd i
ci , gi
lfes
j s
ig he al ' hos e urte s ha er s e n
Fl Stt j51 21l 1. l cai t t purua t amasertus a e ntwihU. Pe i
a. a. 7. ( )' t l ms ha, s nt o
'
t r t greme t S. nsons,
Regi e e ed i o ' n i vi Tr tAg ee
ons ntr nt ' ndi dual us r mentwih,a t r s r d a t Tr see f ,
a
t nd he eby e ve s he u t or
e c and e r i sorwho i t d f
ah
ve y nve t
nvese unds i a l t ntPln fom Oc o r2001 t ough
n n nvesme
a r
t be
hr
Oct r201 'I f t c r t tDef nda a tvel pr m ot a s i t i t e s a
obe
0. t urher ha ges ha
'
e nt c i y o ed nd olcied nves m nt nd

wa 'nt r l i ve i t ma kei oft I sm e Plns'l sa est tRe ons na a
s ' eg aly nvol d n he r tng he nve t nt a . t tt ha gi ' me nd
i
'
l we eus d i m a ke i ma e i l,hat
ogo r e n r tng t ras t Regi ha fna a ova ove a1ma kei m a e il,
ons d i l ppr l r 1 r tng t ra s
t t Re ons tai d U . Penson' empl s 'ega di t pr
ha gi
r ne
S.
i s
oyee ' r ng he omoton a s i iai of
r
i nd olct ton
i sm e s' a t tRe onse oye ,ncl ngExe utveVi ePr sdent lpeLar a bot
nve t nt, nd ha gi mpl es i udi
'
c i
c e i Fii
c da, h
r gulryme wih U. Pensonst dic sm a ke i a s e sr egisa a tvel pa tci t
e a l t t S.
i o s us r tng nd als tat e nd c i y ri paed
-

4-

i pr e ai t pr pe tve i t r de i d t e our ge i t nt Thus Pli tf ha
n es nt tons o os c i nveso s sgne o nc a nvesme .
, a n if s

s fce l ale t tRe onswa a' ronmaki t s l ' rFl Stt j51 211 1.
ufiinty lged ha gi
s pes
ng he ae'unde a. a. 7. 4 )
Pl i ifs a gum enti t t by s r i as a Tr s ee t ' ac and e y' i s or a by
a ntf r
s ha ,
e v ng
ut o ' h
e
ver ' nve t nd

a tvel s i ii i sor f hes cu ii ss dbynon-e se e de e . Pensons Def nt
c i y olctng nve t s ort e rte ol
r git r d alru s. i , enda
wasa ' ron maki t s e. Def ndan has ct d no a hort s
' s
pe
ng he al ' e
t
ie
ut iy uppori isc enton t t
tng t ont i ha

Pli ifdi nots fcintya lget ti wasa' r onm a ngt s e. Thus De enda ' M oton
antf d
ufi e l le ha t
' s
pe
ki he al '
'
, f nts i
t Dimisi de ed.
o s s s ni
l . onc us on
V C
l i

THI CAUSE c mebef et Cour upon Defnda ' M otont Dimis( E.No.7 ,
S
a
or he
t
e nts i o s s D.
4)
fl on A pri 22.2013.
ied
l

THE COURT ha c i r d t moton, es e, nd t pe tne pori oft r cor
s onsde e he i r pons a he ri nt tons he e d,
a beng ot nvief l a s d i t pr s ,i i
nd i
he s uly dvie n he emies t s
AD JUD G E D t t hem oton i D EN I . ai i f pr l a l get tDef nda was' he
ha t
i s
ED Pl ntf s opery le ha
e nt
'
t

p ro ma ig tes l'i t eS c n Ame d d Co lit a h v p o e l p e d Ca vj l
es n kn h ae'n h e o d
n e mpan , nd a e r p ry la r aa'
s
sa d n . eCo r h sp e iu l rj ce a1 te ag me t r ie b Dee a t
tn i g Th u t a r vo sy ee td 1 oh r r u n s as d y fnd n .
m
da ofOc obe ,201
y
t r
3.

DONE AND ORDERED i Chambe sa M im i Fl i ,t s
n
r t a , orda hi

z
'
<

FED
UN I
T
Copi pr ded t
es ovi
o:
CounselofRecor
d

.

..
.

C
. O NO
STA TES D I
STRI J D GE
CT U