Watson

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Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 1 of 53
FI byrUED U M TED STATES D I STRICT CO U R T SO U TH ER N D I STR ICT O F FLO R IDA

CA SE N o. :
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STEVEN M. ARI L MORE CLERK u s Dl T. r s c' s. ofFL - FT. D. A LAUD.
ALLEN LI T CH
Pl ntf ai if
V.
AJEN E W ATSON ,JAM ES GI BBS,ERI L.N OVESH EN , C YI SROEL A .BORN STEI ,ARYEH GO LDSTEI , N N SAM UEL H .EI SEN BERG,TH ERESA LEE FREY, JEFFREY E.STM LER,CU RT KRAM ER,DAW D E. PRICE,TOM ER TM z STEVEN K OI , FG N ,SCOTT H . W I I ,M O M CA CHU ITI ,AJENE W ATSO N ,LLC LD NG - RU a Fl i Li i ed Li lt Com pany,EN W SI N or da m t abiiy O CAPI TAL,LLC a Fl i Li i ed Li biiy Com pany,SCB or da m t a lt & ASSO CM TES,LLC a N ew Jers Li ied Li lt ey m t abiiy Com pany,TH E TRI POD GROU P,LLC a W i ons n sc i Li i ed Ii m t u abm t Com pany,W RM M AC,LLC a M i hi y c gan Li i ed Li biiy Com pany,H ERI m t a lt TAGE CORPOM TE SERW CES,I C.a Fl i Cor N or da porat on,A SH ER i EN TERPRI SES,I C.a Del ar Cor aton,STO CK N aw e por i STREET CAPI TAL,LLC a Fl i Li ied Li lt or da m t abiiy Com pany,and SI II CAPI L I W ,NE TA NVESTM EN TS,I C. N a Fl i Cor or da porat on, i
De endant f s
N ATU RE O F TH E A CTION
1. Pl ntF s c ai s ar s f om t m as ve ' ai i l m ie r he si d ppum anddum p'ls hem e ' c
pe pe r t d byAj neW a s n (W a s n' i vi l a t oug hi c r o a i n r ta e e t o t t o ' ndi dualy, nd hr h s o p r to )

1 c o d ng t U . Sec i i and Exc A c r i o S. m t es hange Com m i s o ' s i n,f ppum and- p'are t ? .. dum ' he . s he e al o known asG c m s, s hype and dum p m ani aton, i l t t i o a c pany' pul i ' nvo ve he out ng f om ' s
soc (ypialymir apc t k t c l c oc ompani )t oughf s andmil ngsat ment t t es hr ale seadi t e s o he
mar pl e Afe pum pi t s oc f auds er m a hug pr i sby s li t i c ap ket ac . t r ng he t k, r t s ke e oft e tng her he s oc i o t m a ke . See: t /ww w . e e / w er / odum o. m . t k nt he r t' ' ht o:/ s c. ov ans s pum ht
Aj neW a s n,LLC - t twass csc l f r e f rf a e a tv te a as e to - ha pe i aly o m d o r udul nt c i ii s nd
an al erego o W at t f son. at W son,i cons rac w ih ot Def n pi y t her endant s ol and s, t e

m i appr i ed m ilons ofdolars f pers s opr at li l or onalenri ent and hundr m o t chm eds re o per uat t s hem e. pet e he c
2.
W ats di no ac al on d t t one. at on de oyed a w e o i vi W s pl b f ndi dual s,
com pani and at orneyst oughoutt U nied St es. n t es, t hr he t at l andem ,t e hes c pani and i vi s par i i ed and pr ed wi h W ats i t t om es ndi dual t cpat oft t on n he t ppum
and- p' s hem e.Thes i vi dum ' c e ndi dualand c pani par i i ed wi h W at on i om es t c pat t s n whatw as efe i l one i egr ed and coor nat o aton. any oft f ctve y nt at di ed per i M hese
c porat onshad no of es,em pl or i sc oyees,or exi enc as de f st e, i rom c po e f m and or rat or

s e t por orPos Oo ce Box addr om em ary t ess.
3.
To m ai ai t dec i Def nt n he epton endant and t rass at us s, hei oci es ed
pr mi nt( utt mpo a y W a lSt e ta o he addr s esandpr m o e o ne b e r r ) l r e nd t r es o td

t se ves as so s i at m anagem entand ac edi ed Snanci s c hem l phi t c ed cr t al ervi es com pani H o ever,i t ofhel ng uns pec i c pani ,Def es. w ns ead pi us t ng om es endant s s m pl s htt degaud t c i c pani and t c i - om pani 'em pl yees. i y oug o he lent-om es he lent c es o 4. To f ii at t s ac lt e he chem e,t Def he endant used at orneys f i s s oc s t or t t k
ac s ton t qui i i rans t ons. ac i Thes at or ys i sued m any o ni l t s t s ock e t ne s pi on et er o t
t rans e agentf Si ul ed whos s oc t e Def fr or m at e t k hes endant purc s hased.The l t s et er wer r red by Def e equi endant to o n t s oc w ihoutres r ctve l s btai he t k t t i i egend on t he s oc c t scat w hi h alow ed t t k er i es, c l hem t eas l s lt s es t t publc,i t o iy el he har o he i n he
open m ar s. ket
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5.
Thes at orneyspl e t ayed a nec ar and subs ess y tant alr e i W at n' i ol n so s
s hem e,and t c hus al vi at t sec i i l s. so ol ed he ur t es aw

Pl nt f and hundr ofot i ai if eds her nves orsw er duped by t t e he
Def endant and sufer dam ages. s f ed As di tc equenc o Def rec ons e f endant 'ac i s t ons,Si ul ed w as r m at educe d
t ma lna busne saci t i l tt t us o isbusne sas o i t s ispr uc o r l i s tviy;t os he r t f t i s s c a e , t od t

r s ler and i e- e l s, nves ors.Pl nt l Li ht asw el asot m anagem ent have t ai i c , l her , s ufer dam ages because t de -aden Si ul ed c d no l ed he bt l m at oul onger obt n ai
ne e s r f ng t r duc d bus ne sac i iy, o e wih o r e9o i j e c s a y undi ; he e e i s tv t c upl d t ut ag m n ur d

i nves or pr t s, evented Si ul ed,Li htand ot m anagem entt obt n needed m at c her o ai Enanc ng t c i o at ons and f t payr loblgatons;f t m or i o ont nue per i und he ol i i ur her e, Def endant actonsi pugned Pl nt l s i egr t w ih br bus ness c m uniy s i m ai i nt iy t oad i om t
and caus def at on t Pl nt f and ot ed am i o ai if hers.
8.
Doc ent y evi um ar denc unc e over by Pl ntf s s t Def ed ai if how hat endant ' s
c onduc i noti at t t s m at er al ts sol ed o hi t one.Vari slngsw i h SEC pr f ous i t ofer r peat pat er ofDef e ed t n endants s m i ar actvi y.Docum ent y evi 'i l i t ar dence s hows t hat
t De e he f ndant i l e e l ve t t a lo d c mat d c m pani s i j e s nvo v m nt ea s he r i f e i e o e , n ur d

manag me , nd i j ed i e t r . e nt a n ur nv s o s
9.
Through t actvii aleged i t s Com pl nt a1 D e endant he i tes l n hi ai , l f s
par i i ed i vi aton of am ong ot t cpat n ol i , hers,Racket ng I eeri nfuenc and Cor ed rupt
Or ani a i nsAc ( CO) vi l i nso t antf a p o i i nso Se to 17 a o g z to t R1 , o ato f he ir ud r v so f c i n ( ) f
t Se urte Ac o 1 Cse ur te Ac' ( 5 U. C. 7 a )and Se to 1 o he c ii s t f 933 c ii s t) 1 S. j 7q( ) ' c i n 0*) f
3-
t Se urte Exc ng Ac o 1 4 rEx hangeAc' ( U . C.j 8 ( ) a Rul he c ii s ha e t f 93 d c t) 15 S. 7 jb ) nd e '

1 b- t r unde ( 7 C. R. 240.0 5 . t r r , f ndant andt 0 5 he e r 1 F. j 1 b- 1 Fur he mo e De e s he Dee antCo pani sv o at t r it a i n pr v sonso Se to 5()and 5 c f nd m e i l ed he eg s r to o i i f c i ns a ()
o t Se urte Ac (5U. C.j 7 ()a (). f he c iis t 1 S. j 7ea nd c1

W atson G roup D ef endant W ronzf Conduct s ul
10.
As se f t bel ,W at w as t chi m as er i oft s hem e. t or h ow son he ef t m nd he c The W at on Group D ef s endant ar W at on,Gi s e s bbs,Noves hen,
11.
Bo t n,ChuiTi W at LLC,SCB,and Envi rns ei - ru, son son. 12. W at on and hi ass at have organi ed and or s s oci es z chest ed t rat he
s hem e. c
13. W at Gr son oup s erved ast m anager,c roler,and il he ont l legal
d s rbut r( e it r d br ke o ei bl t ber it r )o Si a e ss o k t it i o unr g se e o r r lgi e o eg s e ed f mul t d' t c o

t s lng Def he eli endant and publc m arket s i . 14. N ei herW at norany oft m em ber ofW at on G r t son he s s oup ar e r s er br egi t ed oker- er deal s.
Tri pod.A s her.St ockst reet.Skvl ne.G ol i dstei Ei n. senberg.K ram er. K oi m an.and W i di D ef f l nl endant W ronef Conduct s ul
15. These Def endantshave partci ed i t ' i pat n he d ppum anddum p's hem e 'c
wih W at on Def t s endant and w er ass s ed by At or D ef s e it t ney endant s. 16. Ins ead ofl l i t egaly nvestng i o com pani t e Def i nt es, hes endant rout nel s i y
r ei dee y di c ec ved pl s ount s oc and i m edi el s d t s i i on t o ed t k m at y ol he ecur t es he pen

m ar tf s t i pers ke or ubs ant i onalenr c ent. i hm
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17. Thes Def e endant ass s ed W at i il l o ni hundreds of s it son n legaly btai ng

m m i deepl di ount s urt es ofSi ul ed.Am ong m any ot t ansac i ons y sc ed ec ii m at her r t ons,
De e f ndant a ss e wih il a is s s it d t leg l s uanc o 1 0, 0 ( hund e m ilo e f 0 000,00 one r d li n)

Si ul ed' s es,w hi h were t m at s har c hen t rans er f om W at on bac t t e f red r s k o hes
Def endant and dum ped on t open m ar . s he ket 1 8. Thes Def e endant m ai ai m uli e s ock-radi ac s nt n tpl t t ng count and s o at t i own unr s er t oc per e he r egi t ed d kbroker 'se cest per i rapi s lo st age' rvi hat m t d el- s, s t- li and ot s k- el ed m ac nat ons. hor se lng, her toc r at hi i
19. In doi s t ng o, hese Def endant c r vent t r s rat on proc s s i cum ed he egi t i es and ac ed as a c t ondui t dum p shar ofm i ro- ap c pani on t publc to es c c om es he i
m ar s and unsus ket pect ng i i nvest s. or 20. W hie re esent ng t l pr i hem s ves as ac edi ed i el cr t nves ors,t e t hes Def endant ar notac r t t y routnel engage i a l ratve d s e c edi ed; he i y n uc i d ar run- ound'of '
an i port di c osur polc under yi t s m ant s l e iy l ng he ecur tesl s. i i aw
V i m ac.H erri rm taze.Frev.and St l D ef al er endant W ronef Conduct s ul

21. These Def endant have il l pr ed f om t t s legaly olt r he t ppum and- p' dum '
sc e by pr di i hem ovi ng nfat and i cur e i or at on t t out i i ed nac at nf m i o he s de nves or t s and s vi as c er ng ondui s t di sem i i ofpres re eases and i t o s nat on s l nacc urat e
i or at on. nf m i
22.
D ef endant Fr and Stalerhave r s ey l egul l c pi ed w ih W at ary ons r t son
Def endant and pr s oduced i curat and i nac e nfam m at pr rel esand w e ory ess eas b
poat s.
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23. Def endant Fre and St l have r s y aler epeat y i edl gnor t r fags ed he ed l s r ur oundi W at on and ot ng s hers,and pl ayed an i por antr e i di em i i o m t ol n ss nat on f
i c nac urat i or at on. e nf m i
At ornev D ef t endant W ronlf Conduct s ul
24. Def endant Ta1and Pri e w e t out i c s c re he s de ounc lf s oc acqui i i i or t k s t on

t ransac i by a1 Def t ons 1 endant s. 25. At or t ney Def endant i sued m uli e Opi on Le t t f ii at ss tpl ni t ers o ac lt e
re ovalofr r c i l m est i tve egend f om s oc cer i es asw el as ass s ed i t r t k tfcat l i t n rans erof f
s oc i general t k, n . 26. At orney Def t endant knew t t D e endant i ended t dum p t s hat he f s nt o he s es i m edi el and w ihout appr i e regi t i r har m at y t opr at s rat on equi ed by t pro s ons r he vi i ofSec i 5 oft Sec ii Ac and/ Fl i St e Law . ton he ur tes t or or da at 27. At or y Def t ne endant pr ended t s s et o erve t i er t ofSi ul ed and he nt es s m at t Pl nt f . o ever,t s vi es oft e at orneysw er r ai and pai f by he ai if H w he er c hes t e et ned d or ot r Def he endant f t r per s or hei sonalgai n. 28. By i sui Opi on Let ersw hi h f lt ed i properlf i of s ng ni t c acii at m i tng r t i tons9 om t s oc cer i es r c i he t k tscat t es, heseAt or ys ai and abet ed o her t ne ded t t Def endant i t sc s n he hem e,as wel as di ee l par i i ed i c pi ac and sc e l r t y t c pat n ons r y hem
to de r f aud Pl ntf and ot ai if hers.
29. At orne Def t y endant partci ed i and f lt ed m uli e s rat y s i pat n acii at tpl t eg s i desi ess ons gned t ci cum ventt r s rat on proc and perm i t D ef o r he egi t i ess t he endant s
dum pi oft s ur tes. ng he ec ii
6-
30. At orney D ef t endantsf ii e and engaged i a so s i ed f ac ltat n phi t cat f runar ound' o an i po ant di c os e po i y,Rul 144 oft Sec t esA c 'f m rt s l ur lc e he urii t
( 7 C. R. 0 ,unde l ng t s c ii sl ws 1 F. 23 1 ryi he e urte a .

PAR TI ES
A. PI, N TIFF AT
31 Pl i i Ale LihtCLI . a ntf, l n c CHTD i a r s d nto Fl r da. a ltm e s e i e f o i At 1 i s

r l v t t sc mpl nt Lihtwast M anadngDi e t ra Chi fOpe a i ns e e ant o hi o ai , c he r c o nd e r to
Oo c ro Si ul edEnvio ntCo e , nc. t M UIATEDD. e f m at r nme nc pt l (SI ,

B. D EFE N DA N TS
3 2. DeendantAj neW a s n, / a Aj neOd l a CW ATSON' i a f e t o ak/ e e ug 's )

nat alpers res di at 150 W .179t St, ur on i ng h Apt6A ,Br onx,N Y 10453.W at i a son s
M a i Me ro Aj neW at o LLC. nag ng mbe f e s n,

The d d ppum anddum p's ' chem e out i i t sc pl nti nothi sr .l lned n hi om ai s s st n
a ii n t Si a e (r d und t s dd to o mul t d t ade er he ymbo SM EV) W at o wa o i i l d l , s n s r s nvove

i eD oo n rways,a Texas c pany,t ng under s bolED W Y;U C H ub Group,I , om radi ym nc.
a Calf ni c pany,t adi under t s bolU CH B ;Or ens Tr ior a om r ng he ym i aveland Hot el M anagem ent Cor porat on,a N evada c pany,t adi undert s bolOTHM . i om r ng he ym
3 3. De e f ndant AJENE W ATSON, , LLC CW ATSON LLC' i a Fl r d ' s oia )

lmie la lt c mpa wih isr ls e ed a e sa De e ntGi bsho i t d i biiy o ny t t e t r ddr s t f nda b me
l ed at 1880 Lor o Lane,Ovi ocat enz edo,FL 32765.O n i orm at on and belef nf i i , W ATSO N LLC w asem pl yed,atal t m esr evantt t scom pl nt,excl i y f r o li el o hi ai us vel o
t pur he posesofpayi m oni t se te W at on' labii i and f t pur ng es o t l s s i lt es, or he posesof
7-
re i ng paym ent on hi behal .Lac ng a bus nes pur e or i ce vi s s f ki i s pos ndependentw ilof l any s t W ATSON LLC ser as an al er ego t W ATSON ,com pl el beho den t or , ved t o et y l o hi w il s l.
3 4. De e ntJ ES GI f nda AM BBS (GI ', sa na ur lpe s n r sdi a d BBS' i ) t a r o e i ng t

1880 Lo renzo Lane,Ovi edo,FL 32765.Gi i a Regi ered AgentofW ATSON bbs s st LLC.O n i or at on and belef Gi w as em pl nf m i i , bbs oyed,ata1 t m esrel 1i evantt t s o hi
c pl nt by W at on and,am ong ot dut es,act asa lai on bet een W at on om ai , s her i ed i s w s
and t Trans erA gent Am er can Regi t ar & Tr f Com pany. he f , i sr ans er
3 5. De e f ndantErcL. ve he (NOVESHENM , sa na ur lpe s n i No s n t )i t a ro

r i ng at508 Coc es di onutI l Dri Ft Lauderdal FL 33301.On i or aton and s e ve, . e, nf m i be i ,atal t m esrel lef li evantt t s c pl nt Noves o hi om ai , hen i ass i ed wi h W at on s oc at t s and ac ed as a lai bet een W at and t Def t i son w son he endantPri e.Am ong o he c t r dut es,Noves i hen ac ed as R he- an- t gr t t m on-he- ound'i Fl da. ' n ori
36. De e f ndant Envii n Ca t l LLC I NW SI 'i a Fl r dalmie , s o pia , t E ON' s o i i t d I
la ht c mpany wih isr t r d addr s a ho o No s n, o at d a 5 8 i bi y o t t ebs e e e s t me f ve he l c e t 0

CoconutI l D rve,Ft Lauderdal FL 33301.D e endant N oves i t se i . e, f hen s he Regi t red A gent O n i or at on and belef EN W SI N w as em pl se . nf m i i , O oyed,at al tm es li
r evantt t scom pl nt exc us vel f t pur el o hi ai , l i y or he posesofpayi m oni t set l ng es o t e Noves slabiii and f t pur hen' i lt es, or he posesofr ei ng paym ent and s ec vi s hares o f s oc on hi behal . ki a bus nes pur t k s f Lac ng i s pose or i pendentw ilofany s t, nde l or ENW SI s ved as an al erego t N oveshen,c pl el behol t hi wil ON er t o om et y den o s l.
8-
37. De e f ndantYi r e A. r t i CBORNSTEI ' i a na ur lpe s n,a s o l Bo ns e n N' s ) t a ro

c t z oft St e ofN e Jers res di at36 H i St ,Lakewood,N J 08701. ii en he at w ey, i ng gh reet On i or at on and belef atal tm es r e nf m i i , li el vantt t s c pl nt Borns ei w as o hi om ai , t n as oc at w ih W at on and ass st W at on i t s hem e.Bornst n ser as a s i ed t s i ed s n he c ei ved
lai be ween W at on and Trpod,Gol ei Ei enberg, s i son t s i dst n, s A her,and Kram er.
38. De e nt SCB & As o i es LLC (SCB' i a Ne Je s y lmie f nda , s cat , t 's ) w re i td

labiiy c pany w ih i sregi t i lt om t t s ered addr s atD ef es endantBorns ei s pr nc pal t n' i i addr s.Def es endant Borns ei i t Regi t ed Agent O n i or aton and belef t n s he s er . nf m i i , SCB wasem pl oyed,atal t m es r evantt t s c pl nt exc usvel f t li el o hi om ai , l i y or he pur es o payi m oni t s t e Bo t n' labiii and f t pur es of pos f ng es o et l rns ei s i ltes, or he pos r ei ng paym ent and s esofs oc on hi behal.Lacki a busi ec vi s har t k s f ng nesspur e or pos i ndependentwilofany s t SCB s l or , erved as an aler ego t Bor t n,c pl el t o ns ei om et y be l t hi wil ho den o s l .
39. De e f ndantAr h Go dse n CGOLDSTEI 'i a nat a pe s n,a ye l t i N' s ) ur l r o

ct zen oft St e ofN e Yor r di at38 Ol pi Lane,M ons N Y 10952. ii he at w k, esi ng ym a ey, On i or aton and belef ata1 tm es r e nf m i i , 1i el vantt t s c pl nt Gol t n i t o hi om ai , ds ei s he
def t manag ro Trpo dr cl a s catdwih De e aco e f i d ie ty s o i e t f ndant EI s SENBERG a nd

TRI POD .
40. De e ant The Trpo Gr up, f nd , i d o LLC CTRI POD' i aW ic nsn lmied 's ) so i i t
labiiy c pany wi h i sregi t ed addr s at 250 E . i c i Avenue, i lt om t t s er es W s ons n M iw aukee,W I 53202. ef l D endant Ei enberg i t Regi t ed A gent.On s s he s er i or aton and be i ,Tr pod w asem pl yed,ata1 tm es r evantt t s c pl nt, nf m i lef i o li el o hi om ai
9-
exc usvel f t pur es ofpayi m oni t s t e G o ds ei s and I enberg' l i y or he pos ng es o et l l t n' s s labii i and f t pur esofr ei ng paym ent and s esofs oc on t r i ltes, or he pos ec vi s har t k hei behal . ki a bus nes pur e or i f Lac ng i s pos ndependentw ilofany sort Tr pod s ved as l , i er an aler ego t Gol ei and Ei enberg,c pl el behol t t r wil t o dst n s om et y den o hei l.
41.
De e ntSam ue H . s nbe g (EI f nda l Ei e r C SENBERG' i a na ur lpe s n, 's ) t a ro
a c t z oft St e ofFl i res di at 3411 I an Cr D r ve,Apart ent ii en he at or da, i ng ndi eek i m

403, i iBeac FL 33140.0n i or at on and be i ,atal t m es r evantt t s M am h, nf m i lef 1i el o hi
c pl nt,EI om ai SEN BERG w as di ty ass i ed w ih D ef rec l oc at t endant G OLD STEI and s N

TRI POD .
42. De e f ndantThe e a Le Fr y CFREV ), l okno asThe es Gr f rs e e as wn r a ae ,

i a nat s uralper son,a cii oft St e ofM i gan,res di at 1123 W it li e t zen he at chi i ng l s tr Dri La ve, peer M I48446.O n i orm aton and belef ata1 tm es r evantt t s , nf i i , 1i el o hi c pl nt,FREY w as di ty ass i ed w ih Def om ai rec l oc at t endant W ATSON and s W RM M AC.
43. De e f ndant Vim m a , , r c LLC (W RM M AC' i a M i hi n lmie C 's ) c ga i t d

labiiy com pany wih i s r s er addr athom e ofDef i lt t t egi t ed ess endantFREY,1123
W it hi e Dr ve,Lapeer, I48446.0n i o at on and belef W RM M AC w as ls r i M nf rm i i ,

em pl oyed,atal t m es re evantt t s c pl nt exc usi y f t pur es of li l o hi om ai , l vel or he pos
payi m oni t s te Fr s labii i and f t pur es ofr ei ng paym ent ng es o et l ey' i lt es, or he pos ec vi s
and sharesofs oc on herbehal .Lac ng a bus nesspur t k f ki i pose or i ndependentw ilof l any so , RM M AC ser as an aler ego t Fr y,c pl el beho den t herw il rt W ved t o e om et y l o l.
10-
44. De e antJe fe E. ale (STALLER' i a na ur lpe s n, f nd fr y St l r C 's ) t a ro a

c t z oft St e ofFl i res di at 3040 Cant bur D r ve,Boc Rat FL ii en he at or da, i ng er y i a on, 33434.On i or aton and belef atal tm esrel nf m i i , 1i evantt t s c pl nt STAT ER o hi om ai , Z w as di ecty as ci ed wi h Def r l so at t endant W ATSON and H ERI s TAGE .
45. De e f ndant He iag Co po a e Se vc s I .CHERI , r t e r r t r i e , nc TAGE' i a 's )

Fl i cor aton wi h i s r s er addressathom e ofDef or da por i t t egi t ed endantSTAI, LER,
l ed at3040 Cant bur Dr ve,Boca Rat FL 33434.0n i orm at on and ocat er y i on, nf i
belef H ERI GE was em pl i , TA oyed,atal t m esrel li evantt t s c pl nt o hi om ai , e l vel f t pur es ofpayi m oni t set l St l ' labiii and f xc usi y or he pos ng es o t e alers i lt es, or t pur esofrec vi paym ent and s es ofst k on hi behal .Lac ng a he pos ei ng s har oc s f ki
bus nesspur e ori pendentwilofany so ,H ERI GE se i pos nde l rt TA rved as an al e ego tr

t St l c pl t y behol t hi w il o aler, om e el den o s l .
46. De e antCur Kr m e IKP, ER',a s kno asKur Cr r i f nd t a r ' AM ' l o wn t I t ame , s

a nat alper on,a cii oft St e ofNew York,res di at6 Ever ur s tzen he at i ng green W ay,
Gl H ead,N Y 11545.0n i or at on and belef ata1 tm es r evantt t s en nf m i i , 1i el o hi c pl nt,KRAM ER w as di ecty ass i ed w ih Def om ai r l oc at t endant W ATSO N ,and s ASH ER.
47. De e f ndant As rEnt r ie , nc. W SH ER' i a De a r , he e pr s s I ( 's ) l wa e c r r to wih isr t r d a entW / I o po a i Se v c s I . o a e a o po a i n t t ebs e e g K nc r r tng r i e , nc l c t d t
3500 Sout DupontH i ay,Dover,DE 19901.On i or aton and belef A SHER h ghw nf m i i ,
w asem pl oyed,atal t m esrel vantt t scom pl nt exc us vel f t pur li e o hi ai , l i y or he posesof payi m oni t set l K RAM ER' labiii and f t pur ng es o t e S i lt es, or he poses ofrec vi ei ng
paym ent and s s haresofs ock on t r behal.Lac ng a bus nes pur t hei f ki i s pose or
i ndependentw ilofany s ,ASHER se l ort rved as an al erego t Def t o endant Kr er, am

c pl t y beho den t hi w il om e el l o s l.
4 8. Dee f ndantDa i E. ie (PRI ' i a ctz n o t St t o v d Prc , C CE' s ii e f he a e f )

M ar and r i ng at 13520 O r ent St eet Roc le, D 20853.PRICE i an yl es di i al r , kvil M s
at orne lc t y i ensed i M aryl n and and Di t i tofCol bi and ow nst Law Oo c of s rc um a he es
Davi E.Pri e l ed at t sam e addr as hi r denc Pri re d c ocat he ess s esi e. ce pres ed ent SI U I TED ,asw el as,am ong ot M A l hers,Def endant W ATSO N ,N OVESH EN , s
ASH ER ,and KRAM ER .
49. De e antTo e Ta , t , i a ctz n o t St eo Calf r a. f nd m r l (TAI' s iie f he at f io ni d ' )

Ta1i an at or lc ed i Calf ni and ow ns t N ew V ent e At or s t ney i ens n ior a he ur t neys,a
Calf ni Pr ess onalCor aton l at at900 Eas H am it Avenue,St 100, ior a of i por i oc ed t l on e.
Cam pbel ,CA 95008.Am ong ot s,Talr esent D ef l her epr ed endant TRI s POD ,STOCK STREET,and SKYT,NE i i sac s t ons ofsec tes f om SI U I, I n t qui i i urii r M ATED aswel l asot com pani quot on t Pi Sheet her es ed he nk s.
5 0. De e ntSt c St e tCa t lLLC (STOCK STREET ', sa Fl rda f nda o k r e pia ' C )i oi
lm i ed labiiy c pany wi h a pr nc palpl e ofbus nes at20423 St e Rout 7, i t i lt om t i i ac i s at e #341,Boca Rat Fl i 33498 and i sregi t ed agenti D ef on, or da t s er s endantK OI AN, FM wi h r s er addressathi hom e. t egi t ed s
51. De e f ndantSt ve Ko f an (KOI AN' i a nat a pe s n r sdi e n im t FM ' s ' I ur l r o e i ng

at 18939 Conc o Dr ve,Boca Rat FL 33498.Koim an w as a regi ered ert i on, f st s oc oker9om 2002 unt l2008. a1 tm es r evantt t Com pl nt, oim an t kbr i At 1 i el o he ai K f
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w as pr i es dentofSTO CK STREET.0n i or at on and belef STO CK nf m i i , STREET wasem pl oyed,atal t m es rel li evantt t scom pl nt exc us vel f t pur esof o hi ai , l i y or he pos
payi m oni t s te Koim an' labii i ,and f r t pur es ofrec vi ng es o et l f s i lt es o he pos ei ng paym enton hi behal .Lacki a busi s pur s f ng nes pose or i ndependentw ilofany sor , l t
STOCK STREET se ed as an al er ego t Koim an,c pl el behol t hi wil rv t o f om et y den o s l.
5 2. De e f ndantSk i Ca t I es m e t , nc CSI VII ', sa Fl rda ylne pial nv t n s I . C ,NE' i I oi

co rporat on wi h a pri i pl e ofbusi s at688 N W 156t Avenue,Pem br i t nc pal ac nes h oke Pi nes,FL 33028 and SI I,N E regi t W I s ered agenti Def s endant W I N G , ih t LDI w t he
s e regi t ed addr am s er ess,athi hom e. s
53 De e . f ndantSc t H. idi CW I NG' i a na ur lpe s n r sdi o t W l ng LDI ' s ) t a r o e i ng

at688 N W 156t Avenue,Pem br Pi h oke nes,FL 33028.At al t m es r evantt t s li el o hi co pl nt W idi w as t pres dentofSKY II E.0n i orm aton and behef m ai , l ng he i ,N nf i ,
SI LI E w asem pl yed,at al t m esr evantt t scom pl nt, l i y f t W N o li el o M ai exc us vel or he
pur esofpayi m oni t s t e W idi sl abiii and f t pur esof pos ng es o et l l ng' i ltes, or he pos r ei ng paym ent on hi behal .Lac ng a bus nesspur ec vi s f ki i pose or i ndependentw ilof l
any so ,SI T,N E ser as an al erego t W idi c pl el behol t hi rt W I ved t o l ng, om et y den o s
W yJ '. 1
54. De e f ndantM o c ChuiTiu (CHUI' i anat alpe s n r sdi a nia - r t ' s ) ur r o e i ng t

1 Van Cour l Park S. Apar m entB 14,N ew Yor N Y 10463.Atal t m es 00 t and , t k, 1i r evantt t s c pl nt,was em pl el o hi om ai oyed by W ATSO N .H er dut es i l i nc uded bookkeepi s oc t ng,and adm i st i ofvar ous t ng ac ount f ng, t k radi ni raton i radi c s or W ATSON .
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j 32be aus t c nfitunde l ng ttss ti be we n ctz nso di r nt 13 c e he o c ryi li ui s t e ii e f fe e

St esand Pl ntf haspl dam agesi exc of$75, excl i ofi eres and at ai if ed n ess 000 usve nt t
costs.
5 6. Jur s c i i alopr pe pur uantt 28 U. C. 331 be aus i diton s s o r s o S. j1 , c e

Pl nt lshave aleged t Def ai i l hat endant engaged i a f audul s hem e i br h s n r ent c n eac
o , m o o he s Se to 1 o t Se urte and Ex hang Ac o 1 4 and Rul f a ng t r , c i n 01) f he c ii s c e t f 93 e

1 5 pr ul ed t eunder asw el as, ed upon t Racket i I 0b- om gat her ; l bas he eer ng nfuenc ed
and Co r ptOr niato Ac ,1 U. C. 1 ( )D) ru ga z ins t 8 S. b 961 1 ( .

57 Thi Co thaspe s na j idito o e t De e nt pur ua t . s ur r o l ur s c in v r he f nda s s nt o
1 U. C.91 and t Fl rda Lo - m St ut Fl St . 48. 93 8 S. 965 he o i ngA at e, a. at 5 1 .

58. Jur s c i i alopr pe pur ua t 28 USC j1 iditon s s o r s nt o 367, hi Co thas t s ur
s l m e a j i dito o rPl ntf sadd to lca m sa ii unde Flr da upp e nt l ur s c i n ve ai if ii na l i r sng r oi
l ,i l ng,am ong ot aw nc udi hers,f raud,neglgentm i r es aton,gener i s epr ent i al
ne lg nc unj te ihm e , nd v o ato o Fl r dasDe e i e and Unf i g i e e, us nr c nt a i l i ns f o i ' c ptv ar
Tr Pr c iesAc (FDUPTA'. ade a tc tC ' )

5 9. TheCo thasj idito o e t sa ton pur ua t Se to 21 o ur ur s c in v r hi c i s nt o c in D f
t Se r ii Ac ( 5 U. C. 77 ) i c nne to wih t ac s pr c ie a he c tes t 1 S. b v , n o c i n t he t , a tc s, nd

c s ofbusi s aleged her n,Def or es nes l ei endant di ec l ori rec l m ade use of s, r t y ndi t y, t m eans and i t ent oft he ns rum s rans aton and com m uni aton i i er t e port i c i n nt s at
c m er e and t m ais. om c he l
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60. Ve i pr pe i t sdit itpur uantt 2 U . C.j13 a 1 nue s o r n hi s rc s o 8 S. 91 nd 8 U. C. 1 S. j 965, welas pur uantt Se to 22( o t Se urte Ac ( 5 U. C. as l , s o ci n a) f he c ii s t 1 S. b 7 v( ) and Se to 27 o t Exc ng Ac ( 5U . C. 7 1 7 a1 c in f he ha e t 1 S. j 8aa .
61. Thi Co tha pe s na j idito o ra lDe e s ur s r o l urs c i n ve l f ndant i t e c s n hat a h
Def endantpar i i ed di ec l or ai and abet ed t il t cpat r ty ded t he legalac i t es desc i t vi i r bed her n, ri on a bus nes orbus nessvent e i Fl i c m it a t t ous ei car ed i s i ur n or da, om t ed or i
ac swili Fl rda a o c e i j y t pe s nswihi Fl rda arsng o to t tln o i nd/r aus d n ur o r o t n oi ii u f

ac sor om i i by D ef t ss ons endant out i Fl i M or s s de or da. eover,m any oft Def he endant s
e ngage i s t i and noti ol ed actviy wihi Fl i n ubs ant al s at i t t n or da.

62. Def endant di ec l and i r t y,have m ade and c i t m ake s, r ty ndi ec l ont nue o
us oft m eans and i t e he ns rum ent ii ofi ers at com m erc and oft m aisi altes nt t e e he l n c onnec i wi h t ac s, ton t he t practces and e i ours ofbus ness aleged herei i t es i l n n he
Sout n Di t i tofFl da and el ew her her s rc ori s e.
R ELATI BA CK G R O U O FA CTS VE The anat v of a <pum pom s anddum p' schem e. '
63. The S t ppum and- p' s hem e requi s oc m ar exper i e and dum ' c res t k- ket ts s alpartc pant ac i i c er t efec uat t f ever ii s t ng n onc t o f t e he raud. 64. Fi s l one has t 5nd an under f i or st r t y, o per orm ng rugglng, i publcy il
t ad ngc mpa (n c r nte o m i c ndii ns- i i no d f ul) r i o ny i ur e c no c o to t s t ilc t .

65. Sec ondl t gaudst m us convi t m anagem entt he can get y, he er t nce he hat
t hem t f he unds and m anagem entexper i e t need t grow and suppor t r t s hey o t hei
bus ness i .
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Thi y,begi t acqli t st pos t ons and obt n f rdl n o zre he ock i i ai rom t he
t t c pany deepl di ount s oc arge - om y sc ed t k.

67. Four hl pos ton t PublcRel i sur t y, i i he i atons rogat on m ul i e publc es t pl i
and i ernetbas bulet n boar dedi ed t i nt - ed l i ds cat o nves i i penny- ocks . t ng n st z 68.
69.
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The d t s'st es and Publc Re atons s rogat t new ' ori i l i ur es, oget wi h her t
c eve s oc m ani at on3t cr es appearanc oft l r t k pul i hat eat e rade- um e,at r tnew vol t ac and uns ophi t c ed i s i at nves or who f t are buyi t ' s oc t s eel hey ng t ' t k. hot 70. Att o rt he ppo une m om ent, begi d n t pi 't s oc i o t m ar dum ng' he t k nt he ket and c l a w i al pr i s f om ilgot en st k. olect ndf l oft r l- t oc 71. Keep bat ng t c pany' m anagem entw ih pr i and oc onal i he om s t om ses casi
f unds t getm o deepl di c o re y s ount st k. ed oc
72.
O nc done,m ove- t t nextcom pany. e on o he
GEN ERA L FA CTS 73. I eary Spr ng of2009,Def n l i endantAr yeh Gol ei c act Alen dst n ont ed l
Li htwi h an i roduc i t W at on,w ho w aspr c t nt t on o s esent as a d cess tl'bus nes ed d suc ft' i s 2Ther are 829, Googl r t f t sear t m f e 000 e esuls or he ch-er d penny s ocksbulet n t l i board. There ar lt l t ' ' e ieraly housandsofdif ferentboards t at rac m ilonsof hat t t li penny- t k i s oc nves or t s. 3Typi aly, hes d c l t e d ppum anddum p pro es i s' f s onal 'have m ul i e t adi ac ount t pl r ng c s and r at ons ps wi h broker- er The can s lf l el i hi t deal s. y lit arge bl ksofs oc bet oc t ks ween ac ount t c es appearanc ofl c s hat reat e arge t adi vol e.Som e i r ng um nvest s ar or e l ki f l ge t adi vol e as c i er a f i oo ng or ar r ng um r t i or nvestng.The def i endant Gol t i s ds e n, Ei senberg,Kr er,Asher and Tr pod have t row n,hi vol e s oc t ng am i hei gh um t k radi de t ent For Tr pod,t r depar m enti s afed by a d endl 'and f di ' par m s. i hei t s t f d M e' t Gol e. ' Def endantChow -ri u w as t t aderf W at on.She t rr he r or s ravel wi h a l op and i s t apt s capabl ofm o ng or acqui i pos t ons at any l aton wi h W i i er e vi r ng i i oc i t Fi nt net c onne i cton.
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c pany.Jus as Pr c Talpr ded o ni l t er f t Trans erAgentr r om t i e, ovi pi on e t s or he f equi ed

t c ear s oc c t sc es and f ii at ot t o l t k er i at ac lt ed her rans t ons. ac i
111. Speci l Talwas i ved i M arc 29,2011 t ans ton wi h fcaly, nvol n h r ac i t
Dee ant Widi Kof fnd s l ng, iman,St c Ste t a Skylne(e jc 08a ve lne n. o k r e , nd i s e 1 bo ,i s
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siuaton;i num erous t ephone convers i and e- ais,Li htexpres t i n el atons m l c sed c pany' di om s sappoi m ent l s oft us wi h W at on' group,asw el as nt , os r t t s s l
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113. On M ay 23,2011,Li ht s t W at on,vi e- ai,an 11page c ent o s a m l
do entouti ng f l es ofhi gr cum lni aiur s oup aswel as l s oft t i t pr ess. l os rus n he oc At t c l on oft doc entLi wr t he onc usi he um cht i es,
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114. I t subs n he equentphone- lc cal onvers i Li htadvi W at on t aton, c sed s hat Si ul ed i ends t s op t r at onshi w ih hi gr m at nt o t he el i p t s oup.
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s a t Lihtand o he m a pe k o c t r nabng me be so Si ul e m r f m at d.
116. On W ednes day,M ay 25,2011,W at and St l w ihoutpr or son aler, t i aut i i f hor zat on rom Li or any ot m anager atSi ul ed,produc and cht her s m at ed
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wel aswi h ot Def l t her endant c pr si Publc and I s om i ng i nves or r atons Gr t el i oups , began a m assve s lof ofSi ul ed' s ock t 1 t c pl e er i oft t i el- f m at s t hat ed o om et os on rus and c onfdenc oft c m on s e he om harehol ders. 117. By t end oft day on W ednes he he day,M ay 25,2011,Si ul ed' s oc m at s t k
hast ad d o r1 0 000 ( nehund ed a s ve y milo s r ,asc mpar d r e ve 70,00, o r nd e nt li n) ha es o e

t 2 t 6, 000 s es on any average day. o o 000, har 118. I r ponse t W at sf agrant y dec i and il n es o son' l l eptve legalactons by t i , he
e o t da o W e da M a 25 2011 Lihtwr t (e Ex bi t ', nd f he y n dnes y, y , , c o e s e hi t t ) S'
Aj ne Ij thav t e pr s o ea n my dia i m e c e ni t e , us e o x e s nc gai s ppo nt nt onc r ng he pr s r l a e I i t uef wewo ke tge he on dr fi i;h v r wedi e s ee s . t s r hcf r do t r a tng t nwe e , d
notagr e on havi i re e ed.Furt rm ore fz s e we i pl m e ed t e ng t l as he , /e tps m e nt o
pr v ntt sf om ha ni we ede i e atl cr umv nt d,tl f/ mak st s e e hi r ppe ng r lb r ey ic e e tzcl e hi / a pe asc c atd abus o urr l i hi Plas alr al i vdual p ar alul e e fo e atons p. e e e t l ndi i s whoar r s i l f ttsaci n no t e e s nd- apr s r l a ewiho e epons b e or li to t o v r e out e s ee s t ut
oure plci appr x i t oval' .'
Howeve by t st m e,t dam age t Pl ntf and Si ul ed w as s gni r, hi i he o ai if m at i lcantand
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120. Subs equenty,i Oc o of2011,Li htand ot l n t ber c her Si ul ed m anager m at s h
a eraie ta teDee d nsh v mirpee tdteritnin a dh dn v e l d h t h fn a t a e se rsne h i ne to s n a o z

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121. Once t entre sc he i hem e unr ed and t pr c ofSi ul ed' s es avel he i e m at s har pl m et i vi um ed, ndi dualst reeti nves or began t f tand ac t s o aul cuse Pl ntf of ai if
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m i m anagem entand i propr et Ther w er num er pos s on t i er t, i s m i y. e e ous t he nt ne n
open f um s.Fur her or t i or t m e, he nvest s,out or raged by t sc he hem e, began
i atngPl i ifwih e m a l and pho c ls(e Ex bi R '. nund i a ntf t - is ne a l s e hi t T' )

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122. Ata1 tm es r evantt t s Com pl nt D ef 1i el o hi ai , endant f s fed s al ii

i orm at on,m i ead Pl ntf and Si ul ed' m anagem ent m em ber , as wel as nf i sl ai if m at s s l
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123. Thes f s m i eadi i cur e and/ f audul s em ent e al e, sl ng, nac at or r ent tat s and/ doc ent and/ re es at onsw er i ended,and c i t be or um s or pr ent i e nt ont nue o
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i ended,t as i i obt ni good- l 9om t Pl nt f i ordert obt n shar nt o s st n ai ng wil he ai if n o ai es ofSi ul edysst f sal by Def m at ock or e endant s.
124. These f s m i l ng,i urat and/ f audul st em ent al e, s eadi nacc e or r ent at s
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sharesofSi ul ed' s oc t t D ef m at s t k o he endant s.
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125. The c onspi ac and sc r y hem e,asout i above and,upon i or aton lned nf m i and bele ,i o i f s ngoi Funds 9om t Def ng. he endantsal ofSi ul ed' s oc w er es m at s t k e
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1 6. De e 2 f ndant e t bls d and o o r t d s do c m pani s( m o s s a i he / r pe a e ha w o e a ng o he s W a s n LLC, i d and As r a mo y 9om t sc ns r y and s he t r, to Trpo he ) nd ne hi o piac c me
t def aud,were t ansf r di ty t i vi o r r er ed rec l o ndi dualD ef endant s.
127. I di t i i Si ul ed' s oc t t publc m arket i vi n s r but ng m at s t k o he i , ndi dual
Def endant and Def s endant Cor at ons,act asbr s por i ed okers by par i patng i t ci i n
s urii t ec t es rans tons atkey poi s i t chai ofdi ri i I f t m os o t ac i nt n he n st buton. n ac , t f he Si ul ed' s oc t reac m at s t k hat hed t publcm ar w as f he i ket unnel t ough t ed hr he Def endant s.
128. Def endant al o ac ed as deal i Si ul edy s oc by,am ong ot s s t ers n m at s t k her
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t ngs, t c pat ng i an underwr t ng w ih r pec t t st and hi par i i i n ii t es t o hat ock
de ons r i a w ilngnesst s lSi ul ed' s oc on a c i m t atng li o el m at s t k ont nuous bas s. i

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Def endant al o rec ved deal t com pens i prost ng on t s s s ei er-ype at on, i he pread bet e w en t de y di ount pur has pri e and t pri atwhi h t shar were he epl sc ed c e c he ce c he es
uli at y sol i t open m arket H owever,none oft Def tm el d n he . he endant w er ever s e

r s er w ih t SEC as broker or deal s. egi t ed t he s er 129. Upon i orm at on and belef W at on rec ved addii nf i i , s ei t onalm onet y ar paym ent as ki kbac f f ii atng l rat ve acqui ii ofdeepl di count s c ks or ac lt i uc i s ton y s ed Si ul ed' s oc Def m at s t k. endantssol Si ul ed' sec t es as partofa d m at s urii ki kbac paym ent ar c k/ rangem ent and notas a t adii r tonali nves m entpr t c t ac i e.
Def endant ac i w er geared t he pi t sc s' t ons e o l ng he hem e and c pi y. ons rac
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f s f audul ,m i l ng,and/ i c al e, r ent s eadi or nac urat s at ent and/ doc ent e, t em s, or um s and/ r esent i were c ed,produc and/ s ,di ecty or i r ty,by or epr at ons reat ed, or ent r l ndi ec l Def endant t Pl nt f and/ Si ul ed' Tr er Agentt i s o ai i or m at s ansf o nduc and/ r dec ve e o ei Pl ntl and t Tr f Agenti o m aki i pro and/ i or ti ai i he ans er nt ng m per or nc rec nsur e of anc Si ul ed, s urii . m at s ec tes
131. Def endant m aied t Pl ntf and Si ul edj Transf A gentvar ous s l o ai if m at s er i
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l t ,and/ doc ent and/ r et ers or um s or epres atonsw er f s f audul ,m i l ng, ent i e al e, r ent s eadi and/ i urat as t i c or nacc e hey nac urat y r el esec and/ m i r t or s epres t t ue i entof ent he r nt
t t he ransac i and ar notsuppor ed by l . t ons e t aw
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133. D ef endant m aied s oc i suanc reques s,st em ent o ni s l t k s e t at s, pi on
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i t nam es o t D ef n he f he endant 'Cor aton and ft herutlzed D ef s por i trt ii endant s At or t neys t c eat l t m ac f r t reques s. o r e egii y o he t 134. Pl nt f reas ai i onabl r i upon r es at ons setf t on y eled epr ent i or h Def endant s at ent and/ ot docum ent f appr ng i suanc of s' t em s or her s or ovi s e
Si ul ed' s oc m at s t k.
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opi on l t ,and/ docum ent and/ r es atons Def ni et ers or s or epr ent i endant w er i ended s e nt t ext ac gee- r ng s oc 9om Pl nt f and Si ul ed f f her di t i i o r t t adi t k ai if m at or urt s rbuton and sal t uns pec i i e o us t ng nves or i Fl i and ot St es i vi at on of t s n or da her at n ol i
Fl rda Se urte and I s o Pr t ci n Ac (FSI ' Fl St t j 51 a o he oi c ii s nve t r o e to t t PA' a. a . 7 nd t r C )

applc e Fl i Law . i abl or da 136. I r n easonabl r i e elance on and i belefoft ac n i he curac oft st y he ock is s uanc r e eques s,st em ent ,o ni l t s,and/ docum ent and/ t at s pi on et er or s or
re es at ons i sued by oron behal ofD e endant and/ t Def pr ent i s f f s or he endant
Coo o i ns,Pl ntf aut ri s oc i rat o ai if ho zed t k ssuanc t t D e endant Furt m o e o he f s. her re, Pl nt f nc ed dam agesby m aki s oc i uance t t Def ai ifi urr ng t k ss o he endant . s 137. I f t anc ofand f t pur e ofexecut ng t c pi y and n ur her e or he pos i he ons rac s hem e t def c o raud,D ef endant ,on num er occ i s ous as ons,used and caused t be us o ed m ai depos t ri oft U ni ed St es Pos alSer ce and w i esby bot pl i and l i o es he t at t vi r h ac ng causng t be pl i o aced l t ,s oc i suanc reques s,st em ent opi on l t s, et ers t k s e t at s, ni et er
and/ docum ents and/ ot m aiabl m at eri s d deposior es and by or , or her l e t n ai t i

r ovi and c em ng ausi t be r oved l t s and ot m aiabl m at er f om sai ng o em et er her l e t r d depos t es and/ by t use off i ie m ac nes,and/ by t use ofe- ai. iori or he acs m l hi or he m l 138. D oc ent at ac um s t hed as exM bi s t t s Com pl ntare a sm al t o hi ai l
r es aton oft aldocum ent y evi epr ent i ot ar denc Ot f s gaudul ,m i l ng, e. her al e, ent s eadi
and/ i c at docum ent and/ r ds t w er s by D ef or nac ur e s, or ecor hat e ent endant w ilbe s l re ed and di c osed duri di overy i t s m at er. veal sl ng sc n hi t
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139. Eac use oft m ais and wi esi c h he l r n onnecton w ih t s hem e and i t he c
ar i t deg aud c t t est ofens ofm ai and w i e f aud as pr r bed and t fce o ons i ut he e l r r osc i
p o biedby1 U. C.j 43. I c nne to wih t a tv te o al De e r hi t 8 S. 13 51. n o c i n t he c i ii s f l f ndant s

gi ng r s t t s acton,al Def vi i e o hi i l endant cons r t engage i t vari s pi ed o n he ous ac i tes and ai and abet ed one anot i t s d ac i t es asdesc i tvi i ded t her n he ai t vi i r bed he ei r n. 1 40. I c n onnec i w ih t ac i tes ofal Def t on t he tvii l endant gi ng r se t t s s vi i o hi
ac i t Def ton, he endant ac ed wi h m alce,i entand knowl s t t i nt edge.The D ef endant s

knew t t st k i uanc reques s,st em ent opi on l t s,and/ r ot hat he oc ss e t at s, ni et er o her doc ent were f s and t t f s subm i i w oul be reled upon by um s al e hat he al e ss ons d i Pl nt f hen m aki st i uances. ai ifw ng ock ss 141. A ta1 t m es r e li el vanther o,Def et endant knew,or s s houl have known, d t Pl ntf was r yi on t t h and ac ac ofD ef hat ai if el ng he rut cur y endant st i uanc ' ock ss e
r eques s,st em ent opi on l t ,andl ot doc ent t at s, ni et ers or her um s.
1 42. The s chem e t s em atcaly deg aud Pl ntf by subm i t ng,t ough o yst i l ai if ti hr t m ai,s ock i uance r he l t ss equest ,s at ent opi on l t s,and/ ot s t em s, ni et er or her
doc ent w hi h w er f se and i um s c e al nacc urat w asf iiat ai and ass st wi h e, ac lt ed, ded i ed t
t c he ooper i ass s anc and alegi at on, i t e l ance ofat orneysPri and Tal t ce .
1 3. Ea h pr dia e a t( . t s 4 c e c t c eg. he ubmi so o ea h f le s o k is e s i n f c a s t c s uanc

r que t s a e e , pi o l te , o do um e vi US M ai)wasc m mit e s , t t m nt o ni n e t r and/r c nt a l o ted
wih t s pur s s (oi uc s o k i s nc fo Pl ntf and f rDe e nt ' t he ame po e t nd e t c s ua e r m ai if o f nda s pe s na g i , he s r s t(heac ualc le ton o pa e sf o Pl i if f r r o l a n) t ame e ul t t o l ci f ym nt r m a ntfs o
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t be to De e nt ) t s pa tcpant (he i vi lDe e he ne f f nda s , he ame r ii s t ndi dua f ndant ,a s s

we last De e l he f ndantCo po ato ) t s m ev c i s( a ntf a o he r r i ns, he a i tm Pl i if nd t r
Si a e sM anag m e M e r ) a t s m em e hodo c m m i so mul t d' e nt mbe s, nd he a t fo s in (u itng s o k i s nc r q s s s at nt , pi o l t e s and/ rd c nt , s bm t i t c s ua e e ue t , t eme s o ni n e t r , o o ume s
a uli t s l o s c ii so t o n m a ke ) nd tma e a e f e urte n he pe r t.

1 44. Pl ntf alege t eac pr c e ac w as r at t t ot ai i l hat h edi at t el ed o he hersi of ns ar as eac one w as t res tofa c m on pl cons st l appled usi s andard h he ul om an, i enty i ng t prac i and produc ng a c i t r ul . tces, i ons s ent es t 145. I w as a f herpar oft c pi ac and sc t urt t he ons r y hem e t t Def hat he endant s f raudul l c eal t ri vem enti t c pi ac and sc enty onc ed hei nvol n he ons r y hem e and c eal t c pi ac and s hem e as desc i her n. onc ed he ons r y c r bed ei 146. Duri t rel vantt m es,i c ng he e i n onnec i w ih t actvii oft ton t he i t es he De endant gi ng r se t t s ac i D ef f s vi i o hi t on, endantsi ent onaly act t f audul l nt i l ed o r enty c ealt nat oft r ac i tes i orde t i at t onc he ure hei t vii n r o nsul e hem s ves 9om labiiy el i lt f t g audul and il or he ent legalactvii t y w er undert ng,i a m anner t a i tes he e aki n hat
reas onabl pe on woul beleve t rass t ons and com pl wi h Def e rs d i hei er i y t endant 'st k s oc
i uanc reques s. ss e t
1 47. D ue t t c o he oncer ed efor s ofa1 Def t t 1 endant t c ealt r s o onc hei
gaudul nta tvii s Pl ntf di no dic ve t i i j y a t s r eo t i e c i te , ai i d t s o r he r n ur nd he ou c f he r i j y, s t t e e cs o r s nabl dii e e untla t rJanua y o 201 n ur de pie he x r i e f ea o e lg nc , i fe r f 2.
Pl nt f e ci e ofreas ai ifs xer s onabl dii e lgence i l nc uded,buti notlm i ed t revi and s i t o, ew
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i ur i l e : he d prva i n o t a lt t c nduc t Pl ntf sc mme ca nj y ncud s t e i to f he biiy o o t he ai ir o r i l
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r i e on Def elanc endant , al e r esent i , l o i m e,and t ebl dam ages s f s epr at ons oss f nco r e
'
l
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PW SWK o 1 U. C. 96 c,c s so i s i to a s t i e es and X 8 S. j1 4() o t f nve tga i n nd ui, nt r t

a t r ys f e ( Pl i i r t i an a t r y i t f ur ) to ne ' e s 1 a ntl e a ns t o ne n he ut e .
tt
( .
)
.
: '
l I
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CO U NT I Fraud
150. Pl nt s i or ai i nc porat herei by ref ence t alegat ons setf h i es n er he l i ort n agr hrough 149 oft s Com pl nt. hi ai Par aphs 1 t
151* The r es atons, vi atonsofl ,f audul conduc and ot epr ent i ol i aw r ent t her
I 1 ,
-
ac s and om i s ons c m it by t Def t si om t ed he endant as s f h abo c t t e f s s, et ort ve, ons iut al e
a d ga e r pr s nt to . n udul nt e e e a i ns
-
l k
36
' 1 )
-
152. Def endant i ended t Pl ntf w oul be i s nt hat ai if d nduc by s f s and ed uch al e
f raudul r es atonst pro de Si ul ed' s es ofs oc t Def ent epr ent i o vi m at s har t k o endant s and/ t ot i vi or o her ndi dual s.
1 3. Pl ntfsand/ ro he sj tfa y r le o t s r pr s nt i ns 5 ai i o t r us ii bl e i d n he e e e e ato

m ade by t Def he endant as des r bed i t s Com pl nt i aut ri i s ock s ci n hi ai , n ho z ng t i uanc t D ef ss e o endant and/ ot s or hersi t beleft i n he i hat ssuanc was appr i e e opr at
unde a ia e1 w a wasno i e d t de i a eo i j eSi a e o r pplc bl a nd t nt nde o cm t r n ur mul t d r

Pl nt s. ai i 154. As a r toft f se and f audul re esent i by D ef esul he al r ent pr atons endant s,
Pl i ifs r i j y ass ta de c i d t o a ntf ufe ed n ur e s s rbe hr ugho t s Co a nt ut hi mpl i .

155. The f se and f al raudul r ent epres atonsby Def ent i endant w er m ade s e wi h m alc vi c i t i e, ndi tvenes and w ant di egard f t r ght ofPl ntf . s on sr or he i s ai if CO U N T 1 1
Fr aud i vi at on ofSec i 1 b)oft Se t esExc n ol i t on 0( he curii hangeAc t and Rul 1 5,15 U. C.78 and 1 C. R.240. 0b- . e 0bS. J 7 F. 1 5
156. Pl ntf i or at her n by r er e t alegatons s f t i ai i nc por es ei ef enc he l i et or h n
par aphs 1 t ough 149 oft s Com pl nt agr hr hi ai .
157. A l Def l endant di ec l and i r t y,wi h s i er,i l ng w ih s, r t y ndi ec l t c ent nc udi t
r c e s s dir ar i c nne to wih t pur ha eand s l o s c iis ( e kl s ne s s eg d, n o c i n t he c s a e f e urte SEC t Zanf r 5 U. 81 ( ) by us o t mea o i t um e alte o 7 . o d, 35 S. 3 2002 ) e f he ns r ns r nt ii s f
i e t e c m er e,or oft m ais,have em pl yed devi sc nt rs at om c he l o ces, hem esor ar i es t tsc o degaud;have m ade unt st em ent ofa m at i f or om i t t st e rue at s er al act t ed o at m at i f t nec er al ac s essaz i or t m ake t s at ent m ade,i l ghtoft ' n der o y he t em s n i he
37-
cr icum s ancesunderw hi t w er m ade,notm i l ng;or have engaged i t ch hey e s eadi n
ac s prac i es orcours ofbus ness whi h have be and are operat ng asa f aud t, tc es i c en i r
upon t pur haser or s l s ofs h sec t es. he c s eler uc urii
158. The st em ent m ade by Def at s endant ,orom i i ofm at alf t , s ss ons eri ac s
ar t t y i ended t i e hat he nt o nvesti and m anage bus nes i age on behal t n i sm fof he Com pany,f t pur or he poses ofgener i i er i t Com pany am ongs banker at ng nt est n he t s and i nves or asw el as t i t s, l he nves i publc .Fur her ore,Def t ng i t m endant s m i re esent t r i entonsregar ng di pos t on ofSi ul ed' s s pr ed hei nt i di s ii m at s hares af er t
acqui i i t t e entt t om i t t di cl e t r i enton t s lt r s ton, o he xt hat hey t ed o s os hei nt i o el hei
Shar aggr i y i o t m ar and t r i ent on t dum p a1 oft s es i es ess vel nt he ket hei nt i o 1 he har n a m at erofdays.A1 oft t l hese st em ent pr at s oved f s orm at i l m i l ng al e er aly s eadi gi t cont xti w hi h t were m ade. ven he e n c hey 159. Pl nt fs r i on t e m at alm i re ai i eled hes eri s pres at ons and m at ri ent i e al om i si w hen ent i i o t t s ons er ng nt he rans ton t r t i am ong ot t ngs ac i hat esuled n, her hi , t i suanc ofshar t Def he s e es o endant .H ad Pl ntf known t t above s ai if hat he
s a e nt we e f l eo m at raly m il ad ng hewo d ha r j c e De e nt ' t t me s r a s r e i l se i , ul ve e e t d f nda s

s oc i uanc request t k ss e s. 160. Fur herm ore,had Pl ntf kno n t D e e t ai if w hat f ndant w oul s lal oft s d el l he Shar w ihi a f days and t eby des r t val oft Pl ntfs's es and es t n ew her t oy he ue he ai i har
val ofSi ul ed,he woul never have ent ed i o t t ue m at d er nt he rans t on. ac i
38-
CO U N T I II V i ati ol ons ofSecuri es A ct ti
Sec i 5 a)and 5( ) t ons ( c

161. Pl nt f nc porat herei by ref enc t alegat ons setf t i ai ifi or es n er e he l i or h n par aphs 1 t ough 149 oft s Com pl nt. ar H hi ai 162. D ur ng t r evantperi a1 Def i he el od, 1 endant di ec l or i r ty,m ade s, r t y ndi ec l us oft m eans ori t um ent oft e he ns r s rans t i orcom m uni aton i i ers at por at on c i n nt t e c m erc or oft m aist ofer and t sel s ur tes t om e he l o f o l ec ii hrough t use or m edi of he um
apr s c uso o he wiewhe nova i r t aton s at me ha be n Sl o o pe t r t r s n ld els r i t e nt d e ed r

w as i efec ast s h ofer and sal ofsuc s n t o uc f s es h ecur t es and no exem pt on f om ii i r
regi t at on w as avaiabl sr i l e. 163. Def endant Pri e and Talhad kno i y and delberat y i sued f se s c w ngl i el s al l egalopi onsi w hi h t f s y as ert t D ef ni n c hey al el s ed hat endant had ac r shar s qui ed es f om Si ul ed f i r m at or nves m entpur t poses,rat t her han f r e;t eby enablng or esal her i De e f ndant t obt n Si ul ed' s s o ai m at s haresw ihouta r ri i l t est ctve egend orr s r i egi t at on m aki s es avaiabl f i m edi e r al t t publc. ng har l e or m at es e o he i
1 64. Def endant engaged i orpar i i ed i t unl uldi t i i of s n t c pat n he awf s rbuton
s l tes as des i above. ectrii cr bed 165. By reas oft f egoi Def on he or ng, endant ,di ty ori rec l vi l ed s rec l ndi ty, o at
Se to 5( and 5 c o t Se urtesAc ( 5 U. C. 77 a)a 77 c1 c i ns a) () f he c ii t 1 S. jj e( nd e().

CO U NT I V V i ati ofR ICO ol on
166. Pl nt f nc porat her n by r erenc t alegatons s f t i ai ifi or es ei ef e he l i et or h n paragr aphs 1 t ough 149 oft s Com pl nt hr hi ai .
-
39-
1 . Pl i if a eR r ons' t n t mea ngo 1 U. C.j 1 61 3 67 a ntfs r pe s 'wihi he ni f 8 S. j 9 4)

and1 4() 96 c.
168. Eac Def h endant i a ' rson' w i hi t m eani of 18 U . C. s f pe ' t n he ng S.
j 1 61 3 . j 9 ()
169. A tal t m es m at i t t s Com pl nt,Def 1i er al o hi ai endant and/ ot s or her i vi sw er ass i ed i f and t are an R er s ' i hi t m eani ndi dual e oc at n act hus ent pri e'w t n he ng
o 1 U. C.j 1 61( )( r i fe thee e prs '. f 8 S. j 9 4 he e na t r t nt r i e' t )

170. Atal t m es m at i t t s Com pl nt Def li er al o hi ai , endant and/ o he s or t r
i vi ndi dual e s ngaged i t ac eer ng ac i t 'by ac i l par i i i am ong n ' ket i r tviy' t ve y t c patng,
ot rs i t ac i t o t r he , n he t viy f d aud i t sal ofs urii ' i hi t m eani of18 f n he e ec t es'w t n he ng
U. C.j 1 614 ) ) S. 9 10 .
171. Atal t m es m at i t t s Com pl nt t ent pr s w as engaged i 1i er al o hi ai , he er i e n
and is ac i t es afec ed i ers at c m er and t f iii ofi ers at t tvii f t nt t e om ce he ac ltes nt t e
c mme c ,ncudi t Unie St t smais hihwa andt lpho ine . o r e i l ng he t d a e l, g ys ee ne s

172. Atal t m es m at i t t s Com pl nt eac Def 1i er al o hi ai , h endant wer s e ass i ed i f talhough di t nc f om t ent pr se. oc at n-ac t si t r he er i
173. A tal t m es m at i t t s Com pl nt each Def 1i er al o hi ai , endantconduc ed or t

partc pat i t c i i ed n he onduc oft ent pr se' afai s and/ each D ef t he er i s r or endanthad a r e i di ec i orm anagi t oper i or af ai s oft ent pri es. ol n r t ng ng he atons f r he er s 174. The Def endant w ho ar as oci ed i f tw er notac i i s e s at n-ac e t ng n f herance oft cor urt he porat D ef e endant 'l tm at pur t w hen com m it ng act s egii e sui s ti s ofm ai gaud and ot wrongf ac s asdesc i i t s Com pl nt. l her ul t r bed n hi ai
40-
175. From atl t 2009,Def eas endant devi ed and part c pat i a s s s i i ed n chem e t de aud Pl nt f and ot o g ai if hers as setf t above. or h 176. Eac Def h endantconduct or partci ed di ecty or i r ty i t ed i pat r l ndi ec l n he
c onduc oft ent pri e' af ai s t ough a pat e ofr ket i ac i t t he er s s f r hr t rn ac eer ng tviy
c i t ng of butnot lm ied t t m ul i ei t es ofm ai and w i e g aud as s ons s i , i t o, he tpl ns anc l r et f r h above. ot 177. Thes ac s off aud w er bot r at and c i e t r e h el ed ontnuous,t eby her
c ns iutnga pa t r o r c t e i a tv t wihi t m e ni o 1 U. C. o tt i t e n f a ke e rng c i iy t n he a ng f 8 S. j

1 61 5 . 9 ()
178. The c onduc ofeac oft D ef t h he endant c t t es a vi at on of18 s ons i ut ol i
U. C.j1 2() S. 96 c . 1 9. Pl i ifand o he swe e d r c l i j e i t i busne sand 7 a ntf t r r ie ty n ur d n he r i s pr pe t by De e nt ' o ato o 1 U. C.j 96 c . o ry f nda s vi l i ns f 8 S. 1 2()
CO U N T V Cons racy t V i at R ICO pi o ol e 180. Pl nt f i or at herei by ref ence t alegatons setf h i ai i nc por es n er he l i ort n
par aphs 1 t agr hrough 1 oft s Com pl nt 49 hi ai .
1 . Pl ntfsa e' r o 'wihi t me ni o 1 U. C. 1 ( )a 81 ai i r d s ns' t n he a ng f 8 S. j 961 3 nd pe

1 6 c. 9 4()
182. Eac Def h endanti a G on'wi hi t m eani of18 U . C. s pers ' t n he ng S.
j 9 ( )a 1 62(c . j1 61 3 nd 9 )
41-
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l r
! 1
.
.
) j i 1 j i #
1
. ' 1 . Ata1tme ma e ilt t sCo ant Dee 83 1 i s t ra o hi mpl i , fndant and/rohe s o t r i ii l we eas o it i f tandt a ea ' nt r ie' ihi t me ni ndvduas r s ca ed n ac hus r n ' e prs 'w t n he a ng e
'
t l , j
j
l
j
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.
o1 Us. jj 1961( )and 1962() f 8 c. 4 c.

.
184. Ata1 tm esm at i t t sCompl nt Def 1i eral o hi ai , endant and/ ot s or her

i vi ndi dual engaged i ' ket i ac i t ' ac i y partc pat ng,am ong s n' rac eer ng tviy'by tvel ii i
E '
.
. ) j '
1 ) E j
.
ot rs i t ac i t oftraud i t s eofsec ii 'wihi t m eani of1 he , n he tviy t f n he al urtes' t n he ng 8
) '
U S. j1 614) ) C. 9 10 .
.
. .
!
) 1 )
/
1 . Ata1 tme matra t t sCo ant t e e prs wase g di 85 1 i s e il o hi mpli , he nt r ie nga e n

and i s ac i tes afec ed i ers at com m er e and t f ii i ofi er at t t vii f t nt t e c he ac ltes nt st e
j ' 1
l
1 1
; @ .
c mm e c ,i l ng t Unie St t sm a l,hi hwa and t l phonelne . o r e ncudi he t d a e is g ys ee i s
1 4
l j
(
i
1 6 At ltme maeiloti C mpan, ahDee d n wa ascae 8 . ali s tra t hs o lite c fn a t s soitd

i f c alho h ditnc fo t e e prs a t t ug s i t r m he nt r i e n.
l
.
7 '
j ' t i
I
l
1 87. Fr m atlas 200 Dee o e t 9, fndant de ie andpa tcpat di asheme s vsd rii e n c
t def o raud Pl ntf and ot ai if hersas s f t above. et or h 188. Eac Def h endantc pi ed and agr am ong t ons r eed hem s ves and w ih el t
) ' .
j
)
. '
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1
o he c -o pia o st vi l t 1 U. C.j 1 c , hati t c nduc o parii e t r o c ns r t r o o a e 8 S. 962() t s o o t r tcpat

.
die ty o i r c l i t c nduc o t e e pr s sa f r t o ,apa t r o r c l r ndie ty n he o t f he nt r ie fais hr ug te n f
r kee rngaci t i l ngt nume o acso mala wiefaudass t ac te i tviy,ncudi he r us t f i nd r r e
l i l
! i
f t above. or h
189. These ac s ofm ai and w i e f t l r raud w er bot r at and cont nuous, e h el ed i
t e c tt i a pat er ofrac eer ng ac i t w ihi t m eani of18 her by ons i ut ng t n ket i t viy t n he ng
/ .
U. C. 1 61 5 . S. j 9 ( )
' l
-
4 2-
! l )
1 0. Sai c nduc c ns iut a vil i n o 1 U. C.j 1 2( . 9 do t o tt es o ato f 8 S. 96 d)

1 . Pl ntl and o he swe edie ty i ur d b t De e ant i t i 91 ai i t r r r c l nj e y he f nd s n her
busi s and pro t assetf t above and des ri t nes per y or h c bed hroughoutt Com pl nt. he ai CO U N T W N egl gent M i i srepresentat on i
192. Pl nt f nc por es herei by ref ence t alegat ons setf t i ai ifi or at n er he l i or h n
par agraphs 1t hrough 149 oft s Com pl nt. hi ai 193. Def endant m ade and repr ent m at i f t t Pl ntf and ot s es ed er al ac o ai if hers t t wer ac r t i hat hey e c edi ed nves or and busi t s nessm anagem entexper s. t 194. H ow e ver,none oft Def he endant wer ac redi ed i s e c t nvest rs orhad o
educ i exper enc orexper i e t ass stbus ness w ih f aton, i e, ts o i i es t undi or ng

m anagem ent.
195. D ef endant m ade t m i epr ent i wi houtknow l s he sr es at ons t edge as t i s ot t h or f siy,or under c r rut al t i cum s anc s t es, houl have know n ofis f s t d t al iy. 196. Def endant i ended t t m i epr s nt hat he sr esent i i aton nduce Pl ntf ai ifand ot t ac and approve s e i uanc t t Def her o t har ss e o he endant s.
1 . l j tsa er lanc o t ne lge l f s i o m ato pr v de b 97 n us i bl ei e n he g i nty ale nf r i n o i d y
Dee ant ,Pl i ifand o he swe e d r c l i j e by t De e nt i t i f nd s a ntf t r r i e ty n ur d he f nda s n her

bus nessand pr i opert as s f h above and desc i t oughoutt Com pl nt y et ort r bed hr he ai .
COU N T W I Concerted Tort ous A ct on i i 198. Pl nt f nc por es herei by ref ence t alegat ons setf t i ai ifi or at n er he l i or h n par aphs 1 t agr hrough 149 oft s Com pl nt. hi ai
43-
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)
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.
.
j 1
1 ) (
.
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19 9
As des i i par cr bed n agraphs 73 t ough 149 oft s Com pl nt hr hi ai ,
t . ' C
Def endant and/ ot s or hers di vari t i ac s i c d ous ortous t n oncer w ih eac ot t t h her
j
( . . ! l
1 j
1 ) .
200 Thes t t ousac s wer c m i t pur e or i t e om t ed suantt a c pi ac and o ons r y
s hem e t def c o raud Pl ntf and o her asse f h above. ai if t s t ort
201. Def endantW ATSON gavesubs antalasss anceand/ t i it or
j i
.
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. ' .
e o ag me t t o he De e nc ur e nt o he t r f ndant and o o he st e ei t t ri usa t s / r t r o ngag n he o to c s

as s f rt above. et o h
; '
1 ! . j j ( ? j
' j ) 1
l
202. Def endant GI BBS gave subs antalas s anc and/ enc agem ent t i si t e or our ' ' ' ' '
t t o her Def o he t endant and/ ot s or herst engage i t t t ousac s as s f t o n he or i t et or h
, i @ j , t
.
t 1
j
j
above.
i 1 i
'
203. Def endantNOW SHEN gavesubs antalasss eand/ t i itanc or
) j
'
enc ouragem entt t ot Def o he her endant and/ ot s or herst engage i t t t ous ac s o n he or i t
.
1 j '
j
1
I l
ass tf r h a v e o t bo e
I '
l
!
i
2 4 Dee a tBORNS N g v s b t n il sit n ea do 0 . fnd n TEI a e u sa ta a ssa c n /r
k .
e o a e ntt t o he Dee nc ur g me o he t r fndant a o o he st engag i t t riusa t s nd/r t r o e n he o to cs

a st se
f t abo . or h ve
205.
'
t l
1 .
.
!
l
DeednGO DSENgv sbtnilsitneado fnat L T I aeusat as ac n/r a s

.
enc agem entt t ot Def our o he her endant and/ ot s t engage i t t tous ac s s or her o n he or i t
p j
g r l ! j
.
astotaoe sefrh bv
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l
.
206. D ef endantI SEN BERG gave s t i ass st e and/ ubs ant al i anc or
e our nc agem entt t ot Def o he her endant and/ ot rs t engage i t t tous ac s s or he o n he or i t
. ' ' t
a s tf rh a ve s e o t bo .
j
k
-
44
) k .
1 )
207. Def endant FREY gave s ubst i ass s anc and/ enc ant al i t e or ouragem entt o
t o her Def he t endant and/ ot s t engage i t t tous ac s as s f t abo s or her o n he or i t et or h ve.
208. Def endant STAI, LER gave s ubst i ass s ance and/ ant al i t or enc ouragem entt t ot Def o he her endant and/ ot s or hers t engage i t t i act o n he ortous s as s f t above. et or h
209. Def endantK RAM ER gave s ubst i ass st ant al i ance andl or
enc agem entt t ot Def our o he her endant and/ ot s or herst engage i t t t ous ac s o n he or i t as s f t abo et or h ve. 210. Def endantPRI gave subs antalas s anc and/ encour CE t i si t e or agem ent t t ot D e endant andl ot rs t engage i t t i act as setf rt o he her f s or he o n he ortous s o h above. 211. D ef endantTAI,gave subs antalas s anc and/ enc agem entt t i si t e or our o
t ot Def he her endant and/ ot s t engage i t t i ac s as setf t above. s or her o n he ortous t or h 21 Def 2. endantK OI AN gave subs antalas i anc andl FM t i s st e or
enc agem entt t ot Def our o he her endant and/ ot s t engage i t t tous act s or her o n he or i s as s f t above. et or h
213. Def endantW I LDING gave s t i ass st e and/ ubs ant al i anc or
enc agem entt t ot D ef our o he her endant and/ ot s t engage i t t t ous ac s s or her o n he or i t asse f t above. t or h
214. Def endant CH U Igave subs ant alass s anc anW or encour t i it e agem entt o
t ot Def he her endant and/ ot s t engage i t t tous ac s as s f h above. s or her o n he or i t et ort
45-
215. Def endantW ATSON LLC gave s ubst i as s anc and/ ant al si t e or enc ouragem entt t ot D ef o he her endant and/ ot s or herst engage i t t t ous act o n he or i s asse f t above. t or h 216. Def endant EN W SI N gave s t i ass s ance and/ O ubs ant al i t or enc agem entt t ot Def our o he her endant and/ ot s or herst engage i t t t ous ac s o n he or i t
as s f h above. et ort
217. Def endant SCB gave s t i as s anc and/ enc agem entt ubs ant al si t e or our o t ot r Def he he endant and/ ot s or herst engage i t t t ous ac s as s f t above. o n he or i t et or h 218. Def endantTRI POD gave s t i as i t e and/ enc ubs antal s s anc or ouragem ent t t o her Def o he t endant and/ ot s or herst engage i t t t ousac s as se f rt o n he or i t to h
above.
219. Def endantW RM M AC gave subs antalas s anc and/ t i si t e or enc ouragem entt t ot D ef o he her endant and/ ot s t engage i t t i ac s s or her o n he ortous t assetf h above. ort
220. Def endantH ERI GE gave subst i ass s anc and/ TA antal i t e or enc ouragem entt t ot Def o he her endant andl ot s or hers t engage i t t i act o n he ortous s
ass f h above. et ort
221. Def endantA SH ER gave s ubst i ass st ant al i ance and/ enc or ouragem ent t t ot r Def o he he endant and/ ot s or herst engage i t t t ous ac s as s f t o n he or i t et or h above.
46-
222. Def endant STO CK STREET gave s ubst i as s anc and/ ant al si t e or enc ouragem entt t ot D ef o he her endant and/ ot s or herst engage i t t t ous act o n he or i s asse f t above. t or h 223. Def endant SR I,N E gave s W I ubst i ass s ant al i tance and/ or enc ouragem entt t ot Def o he her endant and/ ot s or herst engage i t t i ac s o n he ortous t asse f h above. t ort
; '
( t
2 24. The a vede c i e a t o De e bo s rb d c s f f ndant ,v o at 1 U. C.b s i l e 8 S. j

1 61()D) 1 2() 1 4()a 1 64( )a a s c ns iut f a and c us d 9 1 ( , 96 c, 96 c nd 9 d nd l o o tt e r ud a e
'
:
Pl ntf and ot ai i hershar as s f t above. m et or h
' :
225. The Def endant c s onduc was m alc ousand out ageous,as s f h t ii r et ort above.
)
.
'
CO U N T W II Conspi acy 226. Pl nt f i or at her n by r erenc t alegatons s f t i ai if nc por es ei ef e he l i et or h n

paragraphs 1 t ough 149 oft s Com pl nt hr hi ai . 227. Def endant and/ ot s c pi ed t hert engage j gaudul s or her ons r oget o n ent
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unf ror dece i ac s orprac i es i a conduc o any t ai pt ve t tc n t f rade or c m er e. om c ' ' Spec sc l D e endantshave engaged i actvi i i t St e o Fl i and i aly, f n i t es n he at f or da wi hi t sD i t i twhi h vi at t s at e by ac i i conce and c pi ac t n hi s r c c ol e he t ut tng n rt ons r y wi h ot s t c ce Pl ntf and ot s,t unwilng par i i i n i a T t her o oer ai if her o li t c pat o n d ppum
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i or Pl ntf and ot nf m ai if hers oft ri entt engage i a d um p, hei nt o n t p and- p'sc dum ' hem e,
()f ie t a i e i o m o o he wi eno iy Pl ntf and o he so t i i entt b a l d o dv s , nf r r t r s tf ai if t r f he r nt o

ar i i l i tlc aly nsat t pri ofSi ul ed' st k and us Pl ntf s c pe i i e he ce m at s oc e ai if oo rat on n
dongs ,()us Pl i ifsna ei a we ieand publcpr s r l a e t f l ey i o c ed a ntf m n bst i e s ee s s o as l

i nduc t publct beleve t Pl ntf i t one res e he i o i hat ai i s he pons bl f t t i e or he t ppum and-
dump's he e and ( )r pe e y de e v d Pl i ifa o he swih 'c m , d e at dl c i e a ntf nd t r t

uns t i ed prom i es and ass ubs ant at s uranc Def es. endant and t r r es at ves s' hei epr ent i '
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De e nt aswelasr o bl a t r y' f e (fan a t r y i r t ne i t f nda s l eas na e t o ne s e s i t o ne s e ai d n he
f ur )a c ur c s sunde Fl rda St t e j . a j 0121 ut e nd o t o t r oi a ut s 501211 nd 5 . 05.

COU N T M D ef at on am i 243. Pl nt f i or at her n by r er e t alegatons s f h i ai i nc por es ei ef enc he l i et ort n parar aphs 1t ough 149 oft s Com pl nt hr hi ai .
244. The D ef endant have def ed Pl nt f t ough t actons des r bed s am ai i hr he i ci

above. 245. D ef endant i ent onaly ke Pl nt f t f lnes of s nt i l pt ai ifon he ront i c m m uni atons wi h generalpublc.D e endant knew t t r ac i woul o c i t i f s hat hei t ons d
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estm aton oft com m uniy and/ r t det r t r pers 9 om ass i i or i i he t o o e hi d ons oc at ng
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i g audtl and/ ot n lent or herwi e i pr s m oper and/ il or legalc onduct . 250. The Def endant 'def at r ac i i put t Li htc s am o y t ons m e o c onduc , t char t ri tcs,and/ a c ac e s i or ondi i t woul adve y afec Li hti hi l ul t on hat d rsel f t c n s awf busi s ort nes rade. 251. The Def endant def at y st em ent and act ons w er def at y s' am or at s i e am or
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Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 1 of 53

FI byrUED U M TED STATES D I STRICT CO U R T SO U TH ER N D I STR ICT O F FLO R IDA

pe pe r t d byAj neW a s n (W a s n' i vi l a t oug hi c r o a i n r ta e e t o t t o ' ndi dualy, nd hr h s o p r to )

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 2 of 53

Aj neW a s n,LLC - t twass csc l f r e f rf a e a tv te a as e to - ha pe i aly o m d o r udul nt c i ii s nd

an al erego o W at t f son. at W son,i cons rac w ih ot Def n pi y t her endant s ol and s, t e

W ats di no ac al on d t t one. at on de oyed a w e o i vi W s pl b f ndi dual s,

c porat onshad no of es,em pl or i sc oyees,or exi enc as de f st e, i rom c po e f m and or rat or

To m ai ai t dec i Def nt n he epton endant and t rass at us s, hei oci es ed

pr mi nt( utt mpo a y W a lSt e ta o he addr s esandpr m o e o ne b e r r ) l r e nd t r es o td

ac s ton t qui i i rans t ons. ac i Thes at or ys i sued m any o ni l t s t s ock e t ne s pi on et er o t

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 3 of 53

s hem e,and t c hus al vi at t sec i i l s. so ol ed he ur t es aw

t ma lna busne saci t i l tt t us o isbusne sas o i t s ispr uc o r l i s tviy;t os he r t f t i s s c a e , t od t

ne e s r f ng t r duc d bus ne sac i iy, o e wih o r e9o i j e c s a y undi ; he e e i s tv t c upl d t ut ag m n ur d

t De e he f ndant i l e e l ve t t a lo d c mat d c m pani s i j e s nvo v m nt ea s he r i f e i e o e , n ur d

Through t actvii aleged i t s Com pl nt a1 D e endant he i tes l n hi ai , l f s

Or ani a i nsAc ( CO) vi l i nso t antf a p o i i nso Se to 17 a o g z to t R1 , o ato f he ir ud r v so f c i n ( ) f

t Se urte Ac o 1 Cse ur te Ac' ( 5 U. C. 7 a )and Se to 1 o he c ii s t f 933 c ii s t) 1 S. j 7q( ) ' c i n 0*) f

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 4 of 53

t Se urte Exc ng Ac o 1 4 rEx hangeAc' ( U . C.j 8 ( ) a Rul he c ii s ha e t f 93 d c t) 15 S. 7 jb ) nd e '

o t Se urte Ac (5U. C.j 7 ()a (). f he c iis t 1 S. j 7ea nd c1

13. W at Gr son oup s erved ast m anager,c roler,and il he ont l legal

d s rbut r( e it r d br ke o ei bl t ber it r )o Si a e ss o k t it i o unr g se e o r r lgi e o eg s e ed f mul t d' t c o

r ei dee y di c ec ved pl s ount s oc and i m edi el s d t s i i on t o ed t k m at y ol he ecur t es he pen

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 5 of 53

17. Thes Def e endant ass s ed W at i il l o ni hundreds of s it son n legaly btai ng

De e f ndant a ss e wih il a is s s it d t leg l s uanc o 1 0, 0 ( hund e m ilo e f 0 000,00 one r d li n)

V i m ac.H erri rm taze.Frev.and St l D ef al er endant W ronef Conduct s ul

D ef endant Fr and Stalerhave r s ey l egul l c pi ed w ih W at ary ons r t son

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 6 of 53

At ornev D ef t endant W ronlf Conduct s ul

24. Def endant Ta1and Pri e w e t out i c s c re he s de ounc lf s oc acqui i i i or t k s t on

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 7 of 53

( 7 C. R. 0 ,unde l ng t s c ii sl ws 1 F. 23 1 ryi he e urte a .

31 Pl i i Ale LihtCLI . a ntf, l n c CHTD i a r s d nto Fl r da. a ltm e s e i e f o i At 1 i s

Oo c ro Si ul edEnvio ntCo e , nc. t M UIATEDD. e f m at r nme nc pt l (SI ,

3 2. DeendantAj neW a s n, / a Aj neOd l a CW ATSON' i a f e t o ak/ e e ug 's )

M a i Me ro Aj neW at o LLC. nag ng mbe f e s n,

a ii n t Si a e (r d und t s dd to o mul t d t ade er he ymbo SM EV) W at o wa o i i l d l , s n s r s nvove

3 3. De e f ndant AJENE W ATSON, , LLC CW ATSON LLC' i a Fl r d ' s oia )

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 8 of 53

3 4. De e ntJ ES GI f nda AM BBS (GI ', sa na ur lpe s n r sdi a d BBS' i ) t a r o e i ng t

3 5. De e f ndantErcL. ve he (NOVESHENM , sa na ur lpe s n i No s n t )i t a ro

36. De e f ndant Envii n Ca t l LLC I NW SI 'i a Fl r dalmie , s o pia , t E ON' s o i i t d I

la ht c mpany wih isr t r d addr s a ho o No s n, o at d a 5 8 i bi y o t t ebs e e e s t me f ve he l c e t 0

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 9 of 53

37. De e f ndantYi r e A. r t i CBORNSTEI ' i a na ur lpe s n,a s o l Bo ns e n N' s ) t a ro

38. De e nt SCB & As o i es LLC (SCB' i a Ne Je s y lmie f nda , s cat , t 's ) w re i td

39. De e f ndantAr h Go dse n CGOLDSTEI 'i a nat a pe s n,a ye l t i N' s ) ur l r o

def t manag ro Trpo dr cl a s catdwih De e aco e f i d ie ty s o i e t f ndant EI s SENBERG a nd

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 10 of 53

De e ntSam ue H . s nbe g (EI f nda l Ei e r C SENBERG' i a na ur lpe s n, 's ) t a ro

a c t z oft St e ofFl i res di at 3411 I an Cr D r ve,Apart ent ii en he at or da, i ng ndi eek i m

c pl nt,EI om ai SEN BERG w as di ty ass i ed w ih D ef rec l oc at t endant G OLD STEI and s N

42. De e f ndantThe e a Le Fr y CFREV ), l okno asThe es Gr f rs e e as wn r a ae ,

43. De e f ndant Vim m a , , r c LLC (W RM M AC' i a M i hi n lmie C 's ) c ga i t d

W it hi e Dr ve,Lapeer, I48446.0n i o at on and belef W RM M AC w as ls r i M nf rm i i ,

Case 0:12-cv-62197-WJZ Document 1 Entered on FLSD Docket 11/07/2012 Page 11 of 53

44. De e antJe fe E. ale (STALLER' i a na ur lpe s n, f nd fr y St l r C 's ) t a ro a

45. De e f ndant He iag Co po a e Se vc s I .CHERI , r t e r r t r i e , nc TAGE' i a 's )

bus nesspur e ori pendentwilofany so ,H ERI GE se i pos nde l rt TA rved as an al e ego tr

46. De e antCur Kr m e IKP, ER',a s kno asKur Cr r i f nd t a r ' AM ' l o wn t I t ame , s