CVLR Performance Horses, Inc. v. Wynne et al

Filing 67

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

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