Transamerica Life Insurance Company v. Caramadre et al
Filing
142
MOTION to Amend/Correct WITH SUPPORTING MEMO by Western Reserve Life Assurance Co. of Ohio. Responses due by 5/18/2012 (Attachments: #1 Exhibit A - proposed complaint (470), #2 Exhibit B - proposed complaint (473))Associated Cases: 1:09-cv-00470-S-DLM et al.(Daly, Michael)
UNITED STATES DISTRICT COURT
DISTRICT OF RHODE ISLAND
WESTERN RESERVE LIFE ASSURANCE
CO. OF OHIO
Plaintiff,
v.
JOSEPH CARAMADRE, RAYMOUR
RADHAKRISHNAN, ESTATE PLANNING
RESOURCES, INC, HARRISON CONDIT and
FORTUNE FINANCIAL SERVICES, INC.
Defendants.
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C.A. No. 09-470/S
THIRD FOURTH
AMENDED COMPLAINT
and JURY DEMAND
THIRD FOURTH AMENDED COMPLAINT
Plaintiff, Western Reserve Life Assurance Co. of Ohio (“Western Reserve”) for its Third
Fourth Amended Complaint against defendants, alleges:
PARTIES
1.
Western Reserve is an Ohio company with its principal place of business in Cedar
Rapids, Iowa.
2.
Defendant Joseph Caramadre (“Caramadre”) is, on information and belief, a Rhode
Island citizen and resident.
3.
Defendant Raymour Radhakrishnan (“Radhakrishnan”) is, on information and belief, a
Rhode Island citizen and resident.
4.
Defendant Estate Planning Resources, Inc. (“Estate Planning Resources”) is, on
information and belief, a Rhode Island corporation with its principal place of business in
Cranston, Rhode Island.
5.
Defendant Harrison Condit (“Condit”) is, on information and belief, a Rhode Island
citizen and resident.
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6.
Defendant Fortune Financial Services, Inc. (“Fortune Financial”) is, on information and
belief, a Pennsylvania company with its principal place of business in New Brighton,
Pennsylvania.
JURISDICTION AND VENUE
7.
This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1332 because
plaintiff and defendants are of completely diverse citizenships and the amount in
controversy exceeds Sseventy-Ffive Tthousand dollars ($75,000.00).
8.
All defendants have sufficient minimum contacts with Rhode Island such that this Court
has general or specific personal jurisdiction over them.
9.
Venue is proper in this Court under 28 U.S.C. § 1391(a) because one or more of the
defendants reside in this judicial district and/or a substantial part of the events or
omissions giving rise to these claims occurred in this judicial district.
BACKGROUND
10.
Caramadre is an attorney licensed to practice law in Rhode Island and a self-proclaimed
expert in annuities and life insurance products. Caramadre does business through his
individual law practice and through his various corporate entities, including Estate
Planning Resources.
11.
At all relevant times, Caramadre was an agent, officer or employee of Estate Planning
Resources and was acting within the scope of his employment or agency relationship.
12.
Caramadre has devoted a portion of his law practice and business to identifying perceived
“loopholes” in insurance and investment products that, in his opinion, allow individuals
to make money or reduce investment risks based, in part, on the shortened life expectancy
of terminally ill people. Caramadre and Estate Planning Resources make money by
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advising clients to purchase insurance or investment products that have, what Caramadre
perceives to be, financially beneficial “loopholes.”
13.
One investment scheme that Caramadre has orchestrated and/or participated in involves
the purchase of variable annuities. Rather than recommending the purchase of variable
annuities for their intended and appropriate use as long-term retirement investment
vehicles, Caramadre and/or his associates induce investors to apply for annuities using
terminally ill annuitants with whom they have had no prior relationship.
14.
Caramadre’s scheme works as follows: Caramadre or his colleagues identify an
individual with a terminal illness and, in some cases, offer him or her cash to sign an
application for a variable annuity, naming an unknown investor as beneficiary and
designating the terminally ill individual as the annuitant. The investor/beneficiary, who
frequently has a personal or professional connection with Caramadre, opts for a death
benefit feature in the annuity and purportedly pays the annuity premium. At a minimum,
the death benefit provides a guaranteed return of premiums paid.
15.
Such a transaction is referred to as a Stranger Initiated Annuity Transaction, or “STAT.”
Stranger investors may be lured to STAT’s for reasons ranging from the opportunity to
receive enhanced death benefits to money laundering.
16.
Another attraction to STAT’s is the opportunity to engage in risk-free, short-term
investments based on the short life expectancy of the terminally ill annuitant. When the
annuitant dies – frequently within days or months of the purchase of the annuity – the
beneficiary is able to capture market gains while the annuitant was living. At the same
time, the investor is insulated from the risk of loss because of the guaranteed return of
premium.
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17.
In order to locate and entice terminally ill individuals to participate in his investment
schemes, Caramadre has created and advertised a “Program for the Terminally Ill.”
Caramadre circulated a flyer advertising the program to Hospice patients and churches.
See Exhibit A to Complaint. Caramadre also has placed advertisements in various
newspapers, offering to pay $2,000 to terminally ill individuals who are willing to
participate in various investment schemes that allow him or other individuals (with no
relationship to the terminally ill person), to earn a profit based on the short life
expectancy of the terminally ill person. See Exhibit 1 attached to the First Amended
Complaint.
18.
Western Reserve offers a range of financial products for sale to the public. These
products are sold nationally by a network of independent Broker/Dealers, including
Fortune Financial. Condit is an agent or employee of Fortune Financial, selling insurance
and investment products to individuals in Rhode Island.
19.
One of the products offered by Western Reserve is a variable annuity referred to as the
“WRL Freedom Premier III” (“WRL Annuity”). The WRL Annuity prospectus, Exhibit
A to the Complaint, explains that variable annuities are long-term financial vehicles
designed for retirement purposes. The main features of the WRL Annuity are tax
deferred treatment of earnings, guaranteed death benefit options and guaranteed lifetime
payout options. Because the annuities are “variable,” the owner of the annuity is able to
participate in the bond and equity market and realize a return based on market
performance. The WRL Annuity also provides a standard death benefit that is the greater
of either the policy value or the cash value of the policy as of the reported death of the
annuitant. For an additional fee, the WRL Annuity offers an optional Return of Premium
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Death Benefit, which guarantees that the beneficiaries will receive no less than the
amount of the premiums paid, minus any adjusted partial surrenders. The guaranteed
death benefit is not tied to market performance.
20.
Anthony Pitocco is terminally ill with lung cancer.
21.
Upon information and belief, Radhakrishnan claims that he identified Pitocco as a
potential annuitant under Caramadre’s STAT investment scheme.
22.
At all relevant times, Radhakrishnan was an agent or employee of Estate Planning
Resources and acting within the scope of his agency or employment relationship.
23.
Upon information and belief, Radhakrishnan claims that Pitocco agreed to sign an
application for a WRL Annuity by paying him a total of $2,000. Radhakrishnan did not
explain to Pitocco, and Pitocco had no knowledge, that he would be entering into an
annuity contract, how the WRL Annuity worked, or what Pitocco’s involvement in the
annuity would be.
24.
Because neither Caramadre, Radhakrishnan nor Estate Planning Resources were
authorized to sell Western Reserve’s annuities, it was arranged that Condit, as an agent of
Western Reserve, would sign and submit the application to Western Reserve for
consideration.
25.
On or about January 20, 2009, Western Reserve received an application to purchase a
WRL Annuity, purportedly signed by Pitocco (“Pitocco Application”). See Exhibit B to
the Complaint, Tab 1.
26.
The Pitocco aApplication was submitted by or thorough Condit and/or Fortune Financial.
27.
The Pitocco aApplication listed Conreal, LLC (“Conreal”) as the owner and beneficiary
and requested a guaranteed “Return of Premium Death Benefit.”
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28.
The Pitocco aApplication was accompanied by a $250,000 initial premium payment.
29.
Condit signed the Pitocco aApplication as “Registered Representative/Licensed Agent”
with the firm of Fortune Financial. In the Pitocco Application, Condit made the
following representation:
I HAVE MADE REASONABLE EFFORTS TO OBTAIN
INFORMATION CONCERNING THE CONSUMER’S
FINANCIAL STATUS, TAX STATUS, INVESTMENT
OBJECTIVES AND SUCH OTHER INFORMATION
USED OR CONSIDERED TO BE REASONABLE IN
MAKING THE ANNUITY RECOMMENDATION AND
FIND THE ANNUITY BEING APPLIED FOR
APPROPRIATE FOR HIS/HER NEEDS.
Despite this representation, Condit never met with Conreal or Pitocco, never made any
efforts to obtain information concerning their financial status, tax status, investment
objectives or any other information to make an annuity recommendation and did not find
that the annuity being applied for was appropriate for the needs of Conreal or Pitocco.
30.
At all times relevant hereto, Condit was an agent or employee of Fortune Financial and
was acting within the scope of his employment or agency relationship.
31.
In reliance on the representations contained in the Pitocco aApplication, Western Reserve
issued Annuity Policy Number 09-01N6042544 (Annuity), with a policy date of January
27, 2009, attached as Exhibit C to the Complaint.
32.
Conreal made an additional premium payment of $1,750,000.00 three days later, on
January 30, 2009.
33.
In connection with the sale of the Annuity, Western Reserve paid a $140,000 commission
to Condit and/or Fortune Financial.
34.
Within the months following the issuance of the Annuity, Western Reserve learned that:
i.) Pitocco had no knowledge that an application for the Annuitythe Pitocco Application
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had been submitted in his name or that the Annuity had been issued; ii.) the Pitocco
aApplication was submitted with undisclosed knowledge that Pitocco was terminally ill;
and iii.) there was no relationship between Pitocco and Conreal.
35.
Pitocco provided the Affidavit attached as Exhibit B to the Complaint.
36.
Pitocco denies having signed the Pitocco aApplication.
37.
Pitocco has never met or spoken with Condit or anyone from Conreal or Fortune
Financial about applying for any annuity contracts or any other issues. Pitocco further
denies having met with Radhakrishnan or Caramadre and states that his signature was
forged to the Pitocco aApplication.
38.
Western Reserve, by letter of September 24, 2009, notified Pitocco and Conreal that it
was exercising its right to rescind the annuity contract because it had been procured by
fraud or misrepresentation and was otherwise void because Conreal lacked an insurable
interest in Pitocco. A true and correct copy of the rescission notice sent to Conreal and
Pitocco is attached as Exhibit D to the Complaint.
39.
Conreal accepted Western Reserve’s return of premiums and the annuity has been
rescinded.
COUNT I – FRAUD IN THE FACTUM (Damages)
(CARAMADRE, RADHAKRISHNAN, ESTATE PLANNING RESOURCES, CONDIT and
FORTUNE FINANCIAL)
40.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
41.
All Defendants committed fraud in the factum by either forging Pitocco’s signature to the
annuityPitocco aApplication and submitting it to Western Reserve, or by concealing the
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existence, nature and essential terms of the annuity from Pitocco in order to get him to
sign the Pitocco aApplication under which he purportedly agreed to serve as an annuitant.
42.
As a result of the fraud in the factum perpetrated by Defendants, any purported
agreement by Pitocco to serve as an annuitant is void and the Pitocco aApplication that
he unwittingly signed (or to which his signature was forged) lacked all legal significance.
43.
Having forged or obtained Pitocco’s signature under false pretenses, Defendants
submitted the legally insignificant Pitocco aApplication to Western Reserve with the
intention of giving Western Reserve the false or misleading impression to that Pitocco
knowingly and voluntarily signed the Pitocco aApplication.
44.
Based on the false or misleading Pitocco aApplication that Defendants’ provided,
Western Reserve entered the annuity contract without knowledge of the true nature or
character of the terms of the agreement.
45.
Defendants’ conscious and deliberate efforts and conspiracy to work together to conceal
the facts surrounding the procurement of the Pitocco aApplication (whether or not
forged), combined with the nature of Condit’s and Fortune Financial’s relationship with
Western Reserve and their conspiracy with the remaining defendants, deprived Western
Reserve of the reasonable opportunity to obtain knowledge of the true character, nature
and contents of the annuity contract.
46.
Western Reserve has been harmed by the fraud in the factum committed by all
Defendants by, among other things, issuing the Annuity, paying commissions on the
fraudulently obtained Annuity and incurring market losses caused by the fraudulently
obtained Annuity.
COUNT II – FRAUDULENT INDUCEMENT (Damages)
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(CARAMADRE, RADHAKRISHNAN, ESTATE PLANNING RESOURCES, CONDIT and
FORTUNE FINANCIAL)
47.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
48.
Caramadre, Radhakrishnan, Estate Planning Resources, Condit and Fortune Financial
acted in concert to submit the Pitocco aApplication containing intentionally omitted and
misleading information concerning: Pitocco’ knowledge of the Pitocco aApplication;, his
signature on the Pitocco aApplication;, his health condition;, his life expectancy;, the
purported payment to Pitocco;, and the absence of a relationship between Pitocco and
Conreal, Condit and Fortune Financial; and the failure of Condit to make the efforts,
recommendations, and findings that he represented having made in the Pitocco
Application.
49.
At the time the Pitocco aApplication was submitted, Caramadre, Radhakrishnan, Estate
Planning Resources, Condit and Fortune Financial knew the representations and
omissions contained therein were false or misleading.
50.
Caramadre, Radhakrishnan, Estate Planning Resources, Condit and Fortune Financial
submitted, or arranged for the submission of, the false or misleading Pitocco aApplication
with the intention that Western Reserve would rely on the information, or lack thereof,
contained in the Pitocco aApplication.
51.
Western Reserve relied and acted on the false or misleading representations and
omissions and issued the Annuity when it otherwise would not have if there had been full
disclosure to Western Reserve.
52.
Western Reserve has been harmed by the fraudulent acts of Caramadre, Radhakrishnan,
Estate Planning Resources, Condit and Fortune Financial by, among other things, issuing
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the Annuity, paying commissions on the fraudulently obtained Annuity and incurring
market losses caused by the fraudulently obtained Annuity.
COUNT III - BREACH OF CONTRACT
(FORTUNE FINANCIAL)
53.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
54.
Western Reserve entered a Broker-Dealer Supervisory and Service Agreement with
Fortune Financial in January 2001, (“2001 Agreement”). The 2001 Agreement
authorized Fortune Financial to sell insurance and annuity products for Western Reserve.
The 2001 Agreement also governed the relationship, rights, and responsibilities of
Western Reserve and Fortune Financial.
55.
Pursuant to Part 2 of the 2001 Agreement, Fortune Financial was obligated to train,
supervise and control “all Representatives associated with [Fortune Financial] who are
engaged directly or indirectly in the offer or sale of” Western Reserve’s annuities and
policies. Fortune Financial was further obligated to “ensure that [Western Reserve’s
products] are offered, sold and serviced only through Representatives who comply with
all appropriate state insurance licensing requirements.” Fortune Financial has breached
the 2001 Agreement by failing to train, supervise and control Condit consistently with the
obligations set forth in Part 2 of the 2001 Agreement and to ensure that its employees or
agents, such as Condit, did not coordinate with unlicensed individuals to sell Western
Reserve’s annuities.
56.
Pursuant to Part 11 of the 2001 Agreement, Fortune Financial is obligated to “indemnify
and hold harmless . . . [Western Reserve] from any claims, damages, expenses, liabilities
or causes of action, asserted or brought by anyone resulting from any negligent,
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fraudulent, or intentional acts, omissions, or errors of Producers, their employees,
registered representatives, other representatives, or agents in the offering for sale,
solicitation, or servicing of [Western Reserve’s annuities], and from any negligent,
fraudulent, or intentional acts, omissions, or errors of Producers, their employees,
registered representatives, or representatives, or agents in violation of Federal or State
laws or regulations and NASD rules of any nature, applicable to the offering for sale,
solicitation, or servicing of” Western Reserve’s annuities. Pursuant to Part 11 of the
2001 Agreement, Fortune Financial is further obligated to “assume full responsibility for
the activities of all persons associated with it who are engaged directly or indirectly in the
sales and securities operations of [Fortune Financial, and to] indemnify and hold
harmless . . . [Western Reserve] from any claims, damages, expenses, liabilities or causes
of action, asserted or brought by anyone , resulting from any private business transactions
of any associated persons which are the subject of” Part 11 of the 2001 Agreement.
Fortune Financial has breached its obligation to indemnify and hold harmless Western
Reserve for financial losses, claims, damages, expenses and liabilities incurred within the
contemplation of Part 11 of the 2001 Agreement.
57.
Fortune Financial was obligated to abide by, and enforce the principles set forth in a
September 1, 1997 Code of Professional Conduct (“Ethics Code”), which provides,
among other things, that the sale of insurance products should be conducted “according to
the high standards of honesty and fairness. . . .” The Ethics Code further provides that
Western Reserve’s products should be sold to “meet [its] customers’ insurable needs or
financial objectives” and that its distributors are encouraged to use “appropriate fact
finding tools” to assist customers determine their “insurable needs and financial
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objectives. . . .” (Emphasis added). The Ethics Code additionally provides that Western
Reserve’s products should be marketed and sold in compliance “with all laws and
regulations. . . .” Fortune Financial further was obligated to, among other things,
establish and follow policies and procedures designed to monitor the sales and practices
of its agents. Fortune Financial has breached its obligations as set forth in the Ethics
Code.
58.
Had Fortune Financial complied with its obligations under the 2001 Agreement and the
Ethics Code, Western Reserve would not have issued the Annuity, would not have paid
commissions thereon and would not have incurred market loss.
59.
Western Reserve has incurred financial loss, claims, damages or liabilities as a result of
Fortune Financial’s breaches of the 2001 Agreement.
COUNT IV - DECLARATORY JUDGMENT
(FORTUNE FINANCIAL)
60.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
61.
Western Reserve is entitled to be indemnified by Fortune Financial for all financial
losses, obligations, claims, damages and liabilities that it might incur in the future that
arise out of, or are based upon the acts or omissions of individuals for whom Fortune
Financial is responsible, within the contemplation of Part 11 2001 Agreement.
COUNT V - BREACH OF DUTY OF GOOD FAITH AND FAIR DEALINGS
(FORTUNE FINANCIAL)
62.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
63.
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The 2001 Agreement incorporates an implied duty of good faith and fair dealings.
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64.
Fortune Financial, by the acts of its agent, Condit, breached its duty of good faith and fair
dealing owed to Western Reserve by engaging in conduct designed or intended to obtain
the Annuity without the knowledge of Pitocco, and without disclosing his known health
condition and life expectancy, and without disclosing Conreal’s lack of an insurable
interest in Pitocco.
65.
Western Reserve has been financially harmed as a result of Fortune Financial’s breach.
COUNT VI - CIVIL LIABILITY FOR CRIMES AND OFFENSES
(CARAMADRE, RADHAKRISHNAN, ESTATE PLANNING RESOURCES, CONDIT and
FORTUNE FINANCIAL)
66.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
67.
Caramadre, Radhakrishnan, Estate Planning Resources, Condit and Fortune Financial
prepared, assisted, abetted or solicited the preparation and submission of the Pitocco
aApplication for the Annuity to Western Reserve. In doing so, Caramadre,
Radhakrishnan, Estate Planning Resources, Fortune Financial and Condit acted with the
intent to deceive and with knowledge that information or omissions on the Pitocco
aApplication were false or misleading and were material to Western Reserve.
68.
The Annuity is an insurance policy within the contemplation of R.I. Gen. Laws § 11-4129.
69.
Western Reserve is an “insurer” within the meaning of § 11-41-29(a)(1).
70.
The conduct of Caramadre, Radhakrishnan, Estate Planning Resources, Condit and
Fortune Financial constitutes criminal insurance fraud in violation of § 11-41-29.
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71.
Defendants’ fForgery of the applications by Caramadre, Radhakrishnan, Estate Planning
Resources, Condit and/or Fortune Financial constitutes a crime under R.I. Gen. Laws §
11-17-1.
72.
Western Reserve has suffered injury as a result of such crime and may recover its
damages for such injury pursuant to R.I. Gen. Laws § 9-1-2.
COUNT VII - UNJUST ENRICHMENT
(FORTUNE FINANCIAL and CONDIT)
73.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
74.
Western Reserve paid commissions to Fortune Financial and/or Condit as a result of the
sale of the Annuity and, as such, a Fortune Financial and/or Condit have appreciated a
benefit conferred by Western Reserve.
75.
It would be inequitable for Fortune Financial or Condit to retain the commission
previously paid because it was procured by their tortious or criminal acts as described
herein.
COUNT VIII – NEGLIGENCE
(FORTUNE FINANCIAL and CONDIT)
76.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
77.
Condit owed a duty to Western Reserve to learn and obtain information material to
Western Reserve’s review of the application for the Annuity, including the facts that
Pitocco was terminally ill with lung cancer, that Pitocco had a limited life expectancy due
to his lung cancer, that Conreal had no relationship with Pitocco and lacked an insurable
interest in Pitocco, that Pitocco did not sign the application and that Pitocco did not
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knowingly apply for the Annuity. Condit breached his duty of care owed to Western
Reserve by failing to obtain and report such information to Western Reserve in
connection with the Pitocco aApplication for the Annuity, thereby causing Western
Reserve to issue the Annuity.
78.
Fortune Financial owed a duty to Western Reserve to adequately supervise and train its
employees and agents to ensure that insurance and investment products such as the
Annuity would not be issued to terminally ill individuals, issued with named beneficiaries
who have no insurable interest in the annuitant, and issued without the knowledge or
consent of the annuitant. Fortune Financial’s failure to adequately supervise and train
Condit caused Western Reserve to issue the Annuity.
79.
Western Reserve has been financially harmed by the negligence of Condit and Fortune
Financial.
COUNT IX - BREACH OF CONTRACT
(CONDIT)
80.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
81.
In September 2008, Western Reserve received a Producer Appointment Application
(“Appointment Application”) for Condit to sell certain investment products offered by
Western Reserve, including the type of annuity at issue in this case, through his affiliation
with Fortune Financial. In the Appointment Application, Condit agreed that if Western
Reserve consented to the appointment, then he would comply with Western reserve’s
rules and regulations, applicable state laws and the Ethics Code identified herein.
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82.
Western Reserve granted approved the Appointment Application, thereby designating
Condit as an agent affiliated with Fortune Financial. Having been appointed as an agent,
Condit was contractually bound by his promises in the Application.
83.
Condit’s participation in, and concealment of, the STAT scheme was contrary to his
obligation under the Ethics Code to conduct himself “according to the high standards of
honesty and fairness,” to use “appropriate fact finding tools” to assist customers
determine their “insurable needs and financial objectives,” and to sell products that meet
customers’ “insurable needs or financial objectives” and constituted a breach of his
contractual obligations owed to Western Reserve.
84.
Condit’s participation in, and concealment of, the STAT scheme was contrary to state
law and Western Reserve’s rules and regulations and constituted a breach of his
contractual obligations owed to Western Reserve.
85.
Had Condit not breached his contractual obligations owed to Western Reserve, Western
Reserve would not have issued the Annuity, would not have paid commissions thereon
and would not have incurred market loss.
86.
Western Reserve has incurred financial loss, claims, damages or liabilities as a result of
Condit’s breaches of his contractual obligations owed to Western Reserve.
COUNT X – BREACH OF DUTY OF GOOD FAITH AND FAIR DEALINGS
(CONDIT)
87.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
88.
Condit’s contractual arrangement with Western Reserve incorporates an implied duty of
good faith and fair dealings.
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89.
Condit breached his the duty of good faith and fair dealing he owed to Western Reserve
by engaging in conduct designed or intended to conceal the known health condition and
life expectancy of Pitocco, without disclosing the forgery of Pitocco’s signature or
payments to him to induce him to sign the application, and secretly providing Estate
Planning Resources, Caramadre and/or Radhakrishnan with Western Reserve’s
applications so that they could broker the sale of the annuity, and by engaging in a
conspiracy to do the same as alleged in Count XI. In so engaging in this conduct and
conspiracy, Condit was acting for a purpose contrary to that for which the contract was
made.
90.
Western Reserve has been financially harmed as a result of Condit’s breach.
COUNT XI - CIVIL CONSPIRACY
(CARAMADRE, RADHAKRISHNAN, ESTATE PLANNING RESOURCES, FORTUNE
FINANCIAL and CONDIT)
91.
Western Reserve restates and realleges all preceding paragraphs as if set forth at length
herein.
92.
Caramadre, Radhakrishnan, Estate Planning Resources, Condit and Fortune Financial
reached an agreement to work in concert to obtain the Pitocco annuity unlawfully and by
improper means. In doing so, Caramadre, Radhakrishnan, Estate Planning Resources,
Condit and Fortune Financial intended to act illegally, fraudulently or tortiously and have
harmed Western Reserve.
WHEREFORE, Western Reserve respectfully requests that the Court grant the following relief:
a)
A judgment against Caramadre, Radhakrishnan, Estate Planning Resources,
Condit and Fortune Financial, jointly and severally, awarding Western Reserve damages for,
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among other things, commissions paid in connection with the Annuity, market losses suffered as
a result of the issuance of the annuity and costs, attorney’s fees and expenses incurred
investigating and pursuing this lawsuit;
b)
A declaration that Fortune Financial must indemnify Western Reserve for all
losses, claims, damages and liabilities that Western Reserve might incur in the future in
connection with the Annuity;
c)
Punitive and nominal damages;
d)
Prejudgment interest; and
e)
Any other relief as the Court deems just and equitable.
JURY DEMAND: Western Reserve hereby requests trial by jury on all issues so triable.
Respectfully submitted,
___________
Brooks R. Magratten, Esq., No. 3585
David Barry, pro hac vice
Michael J. Daly, Esq. No. 6729
PIERCE ATWOOD LLP
Attorneys for Plaintiff
10 Weybosset St., Suite 400
Providence, RI 02903
(401)588-5113 [Tel.]
(401)588-5166 [Fax]
mdaly@pierceatwood.com
bmagratten@pierceatwood.com
Dated:
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