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DALLAS COUNTY
7/13/2016 10:35:19 AM
FELICIA PITRE
DISTRICT CLERK
2 Cit Atty
Connie Jones
CAUSE NO. DC-16-07601
PLAINSCAPITAL BANK,
Plaintiff,
v.
FR III FUNDING LLC, DAVID
DEBERARDINIS, STEPHEN R.
HERBEL, PATRICK MULLIGAN,
B. CRAIG WEBB, AND JERRY WEBB,
Defendants.
What this Case Involves An Epic Scam. Counter-Plaintiffs are the unfortunate victims
of a pervasive and sinister fraudulent business scam operated by Defendant David deBerardinis.
The word sinister was not chosen for dramatic effect but because it accurately describes what
has transpired in this case. Every aspect of the business operation run by Defendant David
deBerardinis is fake.
He created numerous non-existent trading agreements (involving real companies, no less)
on which he dutifully forged every other partys signature; he bought dummy email domain
DEFENDANTS/COUNTER-PLAINTIFFS STEPHEN R. HERBEL, PATRICK MULLIGAN,
B. CRAIG WEBB, AND JERRY WEBBS COUNTERCLAIMS AGAINST FR III FUNDING LLC
AND DAVID DEBERARDINIS, AND REQUEST FOR INJUNCTIVE RELIEF
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names from which he then sent fake emails (again, supposedly from real people) that
confirmed the forged agreements; he fabricated trading confirmations supposedly showing
how well his business was doing; he created a bogus check from a make-believe account
demonstrating his non-existent profits; he created fictitious documents showing he had an
substantial ownership interest in a pipeline run by a major company; and he invented story
after fraudulent story to buttress his claim of business success.
As it turns out, no aspect of deBerardiniss business operations was legitimate or genuine.
Indeed, the only real thing about David deBerardinis and his business was the millions in loans
he fraudulently obtained from Counter-Plaintiffs, Plaintiff PlainsCapital Bank, and others.
Worse, Counter-Plaintiffs were lured (in part based on the belief that PlainsCapital had engaged
in sufficient due diligence of the matter) into guaranteeing the loan from PlainsCapital.
The scam perpetuated by deBerardinis is now unravelling. The PlainsCapital loan is
delinquent and the bank has sued him and the Counter-Plaintiffs to collect. FR IIIs trading
partners have disavowed the agreements as forgeries. No trading accounts, much less trading
profits, have been found. Meanwhile, Mr. deBerardinis continues to toss out false statements
about his business, hoping to mislead his creditors (e.g., his latest explanation is that FR IIIs
trading partner is under investigation for money laundering and that this has tied up FRs
profits).1
Most recently, Counter-Plaintiffs have become aware that deBerardinis likely diverted
borrowed funds into his own personal account. Today, despite borrowing millions of dollars and
claiming to have made millions more in trading profits, deBarardinis has told Counter-
This is entirely false. FR has no trading partners. As best Counter-Plaintiffs can tell, there are no trades. There
are no trading profits. While there is a federal investigation, it is regarding FR and Mr. deBerardiniss fraudulent
actions.
DEFENDANTS/COUNTER-PLAINTIFFS STEPHEN R. HERBEL, PATRICK MULLIGAN,
B. CRAIG WEBB, AND JERRY WEBBS COUNTERCLAIMS AGAINST FR III FUNDING LLC
AND DAVID DEBERARDINIS, AND REQUEST FOR INJUNCTIVE RELIEF
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Plaintiffs that he has inusufficient funds to make any loan payments. Counter-Plaintffs do not
know exactly where or to what bank(s) deBeradinis has transferred the millions he and FR III
borrowed.
The Relief Sought by Counter-Plaintiffs -- Immediately Halt the Scam and Freeze
Assets. Counter-Plaintiffs are in imminent danger of losing everything because deBerardinis and
FR III, despite their massive fraud, retain a free hand to use, dispose and transfer assets they
obtained under false premises. Thus, Counter-Plaintffs seek immediate injunctive relief against
FR III and deBerardinis so as to (i) stop their scam and (ii) freeze assets that rightfully belong to
them and others. To do so, Counter-Plaintiffs seek to enjoin deBardinis and FR III from:
a) transferring, spending, hiding, disposing, and/or otherwise using any funds belonging
to; loaned to or otherwise traceable in any way to FR IIl or any of its affiliated
companies;
b) transferring, spending, hiding, disposing, and/or otherwise using any funds in the
possession, custody or control of deBerardinis that belong to; came from or are in any
way traceable to FR III or any of its affiliated companies;
c) incurring any new and/or additional individual or corporate debt, including those of
any affiliated companies;
d) impairing, disposing of or alienating any asset of FR III, including any such assets
possessed by others; and
e) destroying, deleting or otherwise impairing any book, record or document of FR III;
deBerardinis or any of their affiliated companies.
This immediate relief will halt the dissipation of assets wrongfully obtained. The relief is
justified because none of the funds obtained by FR III and/or deBerardinis belong to them, as all
were obtained under false and fraudulent circumstances.
expedited discovery so they can determine what FR III and deBerardinis did with the wrongfully
obtained funds and trace those assets.
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II.
1.
2.
DISCOVERY LEVEL
RULE 47 STATEMENT
Pursuant to Texas Rule of Civil Procedure 47, Counter-Plaintiffs state that they
seek monetary relief over $1,000,000 and non-monetary relief as specified herein.
IV.
PARTIES
3.
4.
5.
6.
7.
FR III Funding, LLC is a Delaware limited liability company with its principal
place of business in Shreveport, Louisiana. Upon information and belief, FR III may be served
with process at 213 Texas Street, Shreveport, Louisiana, by serving Jerald R. Harper, its
registered agent. Alternatively, FR III may be served with process at its principal business office
and mailing address located at 1915 E. 70th Street, Shreveport, Louisiana 71105 by way of
David deBerardinis, its manager.
8.
David deBerardinis is, upon information and belief, a Louisiana resident who may
be served with process at his last-known principal address at 300 Brookmeade, Shreveport,
Louisiana 71106. Alternatively, deBerardinis may be served at his principal place of business as
manager of FR III at 1915 E. 70th Street, Shreveport, Louisiana 71105.
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V.
9.
This Court has jurisdiction over the parties as each has done business in Texas
and/or because each of the parties has had sufficient minimum or continuing contacts with Texas
and is amenable to service by a Texas court.
10.
This Court has subject matter jurisdiction over this action because the amount in
Pursuant to Tex. Civ. Prac. & Rem. Code 15.002(a)(1), venue is proper in this
county because all or a substantial part of the events or omissions giving rise to the claims
alleged occurred herein.
12.
Venue is also proper in Dallas County because Section 9.11 of the Amended and
Restated Guaranties designate this Court as the proper forum for any suit or proceeding arising
out of or relating to the Guaranties.
VI.
FACTUAL BACKGROUND
13.
14.
David deBerardinis is a Louisana-based individual who has been active in the oil
and gas business. He formed a company known as Financial Resources, which purportedly was
in fuel trading business. He then formed several affiliated entities, including defendant FR
Funding III, LLC, which operated as funding vehicles for his purported trading business.
15.
Mr. deBarardinis claimed that FR IIIs business model went something like this:
(i) FR has a valuable trading agreement in which it could buy fuel from Alon USA, Inc. (a wellknown, large and publically traded fuel company) and then re-sell it at a higher price to Freeport
McMoRan (also a large, well-known energy company); (ii) as such, the trading profits were
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virtually guaranteed; and thus (iii) all FR III needed was the upfront cash to buy the fuel and
make the trade.
16.
Mr. deBerardinis then solicited individuals to loan FR III funds to make the
trades. According to him, the loans were of a short duration, paid a high interest and, notably,
were guaranteed by Alon.
17.
He had trading
confirmations. He had letters from his trading partenrs verifying his claims.
18.
loans in various amounts to FR III. One of those loans is attached as Exhibit A. The loans were
guaranteed by Alon.
19.
Mr. deBerardinis also represented that he had some sort of ownership in a pipeline
run by Colonial Pipeline Company, a large, well-known company. Mr. deBerardinis represented
that had a line tyme agreement (which meant he had the ability to transport fuel using the
pipeline) and had a standing offer by Colonial to buy back his interest. Again, he had executed
agreements with Colonial to back up his claim. He also represented that his ownership interest
in the pipeline was an extremely valuable asset.
20.
funding.
PlainsCapital Bank. Ostensibly, deBerardinis needed this infusion of capital for his trading
operations.
21.
Original Loan.
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diligence regarding FR III and deBerardinis in order to extend the loan. On the strength of
PlainsCapitals diligence, the structure of the loan (which involved specified accounts for the
funds), and other things, Counter-Plaintiffs agreed to guarantee the Original Loan, resulting in an
extension of more than $17 million in loans to deBerardinis on November 21, 2014.
22.
Original Loan (the Amended Loan) to increase the amount borrowed to $29.5 million. Yet
again, on the strength of PlainsCapitals diligence, the specific structure of the loan, a firm
guarantee of the loan by Alon USA, Counter-Plaintiffs agreed to guarantee the Amended Loan,
resulting in an extension of more than $29 million to deBerardinis on June 22, 2015.
23.
In applying for the Original and Amended Loans, deBerardinis represented that
FP III was engaged in a trading operation involving Alon USA and Freeport McMoRan.
Specifically, Counter-Plaintiffs believed and relied on the fact that PlainsCapital Bank verified
these claims as part of their due diligence. Counter-Plaintffs were made aware of the fact that
PlainsCapital and Freeport McMoRan had a common owner/director (Gerald Ford).
24.
claims, including:
a.
ii.
iii.
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v.
A May 26, 2015 letter, from Felt containing a standing offer to buy
deBerardinis tyme; and
vi.
b.
c.
d.
e.
25.
iv.
i.
ii.
iii.
iv.
terms of the Amended Loan, and PlainsCapital filed suit to enforce the note.
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27.
deBerardinis records and documents are fake and/or forged, making it clear that deBerardinis is
running an illegal scheme. The following specific instances of forgery have been uncovered:
28.
a.
b.
c.
d.
deBerardinis and/or FP III used the $29 million or where any remaining amounts of that loan are
located.
30.
Upon information and belief, the $29 million loan has been converted to
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33.
Upon information and belief, deBerardinis will continue to use, transfer, and/or
dissipate the $29 million loan and other assets, which would irreparably harm Counter-Plaintiffs
efforts in this and related lawsuits.
VII.
34.
NOTICE
Counter-Plaintiffs answer date for PlainsCapitals lawsuit has not yet run.
Accordingly, Counter-Plaintiffs will answer that lawsuit and assert appropriate affirmative
defenses and claims at that time. Further, Counter-Plaintiffs have additional claims against
Third-Party Defendants that they will be asserting.
VIII. COUNTERCLAIMS
COUNTERCLAIM ONE: BREACH OF CONTRACT.
35.
Counter-Plaintiffs repeat and reallege each and every allegation made in the
37.
FR III has failed to pay back those amounts, causing Counter-Plaintiffs injury in
Counter-Plaintiffs repeat and reallege each and every allegation made in the
FR III and deBerardinis had a trading agreement in place with Alon and
Freeport;
b.
PAGE 10 OF 18
40.
c.
d.
recklessly.
41.
42.
43.
Counter-Plaintiffs have been injured as a direct and proximate cause of FP III and
loans.
and costs to the full extent allowed by law, including, but not limited to 38.001 and 134.005
of the Texas Civil Practice and Remedies Code.
VIII. REQUESTS FOR INJUNCTIVE RELIEF
45.
Counter-Plaintiffs repeat and reallege each and every allegation made in the
permanent injunction as set forth herein. Upon information and belief, deBerardinis and FR III
continue to perpetuate their fraudulent scheme by transferring, spending, using, hiding, and/or
disposing of funds and assets and are likely to continue doing so absent injunctive relief.
Similarly, upon information and belief, deBerardinis and FR III continue to incur debt in
advancement of their scheme and are likely to continue doing so absent injunctive relief.
If
PAGE 11 OF 18
deBerardinis and FR III are not restrained, they will continue to engage in the aforementioned
actions, constituting both a continued breach of their contractual obligations and fraud. Further,
in the absence of a temporary injunction, nothing will prevent deBerardinis and/or FR III from
transferring, spending, using, hiding, and/or disposing of funds and assets in an effort to avoid
judgment in this and other, related lawsuits. Once deBerardinis and FR III succeed in these
efforts, Counter-Plaintiffs (and Plaintiff) will have no adequate remedy at law.
47.
Counter-Plaintiffs are likely to succeed on the merits of this action. The facts
alleged in Counter-Plaintiffs Counterclaims and Request for Injunctive Relief demonstrate that
FR III and deBerardinis are in breach of their contractual obligation to Counter-Plaintiffs and
continue to engage in a massive, spectacularly fraudulent effort by way of forgery and deception.
deBerardinis conduct thus far has evidenced his dedication to this fraud, and none of CounterPlaintiffs efforts to obtain relief have thus far been successful.
48.
Counter-Plaintiffs will provide FR III and deBerardinis with notice of any hearing
To preserve the status quo and protect Counter-Plaintiffs rights during the
pendency of this action and to prevent further actions constituting breach of contract and fraud,
Counter-Plaintiffs request that deBerardinis and FR III be cited to appear and show cause: (a) as
to why any and all personal and corporate assets should not be frozen; (b) as to why any
affiliates corporate assets should not be frozen; (c) as to why they (or any of their agents or
representatives, including attorneys) should not be restrained or enjoined from transferring,
spending, using, hiding, disposing and/or otherwise using any funds belonging to, loaned to, or
otherwise traceable in any way to FR III or any of its affiliated companies; (d) as to why they (or
any of their agents or representatives, including attorneys) should not be restrained or enjoined
DEFENDANTS/COUNTER-PLAINTIFFS STEPHEN R. HERBEL, PATRICK MULLIGAN,
B. CRAIG WEBB, AND JERRY WEBBS COUNTERCLAIMS AGAINST FR III FUNDING LLC
AND DAVID DEBERARDINIS, AND REQUEST FOR INJUNCTIVE RELIEF
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from incurring any new and/or additional individual or corporate debt (including the corporate
debt of any affiliated companies); and (e) as to why they should not be ordered to immediately
turn over all documents requested by Counter-Plaintiffs, including any and all of FR IIIs books
and records.
50.
restraining order, which shall be effective for fourteen days, that enjoins deBerardinis and FR III
from the following actions:
a) transferring, spending, hiding, disposing, and/or otherwise using any funds belonging
to; loaned to or otherwise traceable in any way to FR IIl or any of its affiliated
companies;
b) transferring, spending, hiding, disposing, and/or otherwise using any funds in the
possession, custody or control of deBerardinis that belong to; came from or are in any
way traceable to FR III or any of its affiliated companies;
c) incurring any new and/or additional individual or corporate debt, including those of
any affiliated companies;
d) impairing, disposing of or alienating any asset of FR III, including any such assets
possessed by others; and
e) destroying, deleting or otherwise impairing any book, record or document of FR III;
deBerardinis or any of their affiliated companies.
51.
Counter-Plaintiffs further request that the Court set their application for
Temporary Injunction for a hearing no more than fourteen days from the entry of the Temporary
Restraining Order, and that upon conclusion of that hearing, that the Court enter a Temporary
Injunction to remain in force for the duration of this lawsuit that enjoins FR III and deBerardinis
DEFENDANTS/COUNTER-PLAINTIFFS STEPHEN R. HERBEL, PATRICK MULLIGAN,
B. CRAIG WEBB, AND JERRY WEBBS COUNTERCLAIMS AGAINST FR III FUNDING LLC
AND DAVID DEBERARDINIS, AND REQUEST FOR INJUNCTIVE RELIEF
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Counter-Plaintiffs finally request that upon a final hearing, the court enter a
Permanent Injunction that enjoins deBerardinis and FR III from the actions outlined in Paragraph
50(a)-(e).
53.
Counter-Plaintiffs are willing and able to post bond, as ordered by the Court, in
JURY DEMAND
PRAYER
2.
and deBerardinis;
3.
reasonable and necessary attorneys fees, court costs, pre-judgment interest, and post-judgment
interest;
4.
That the Court set Counter-Plaintiffs Application for Temporary Injunction for
hearing no later than fourteen days from the entry of the Temporary Restraining Order and, upon
conclusion of the hearing on Counter-Plaintiffs Application for Temporary Injunction, enter a
PAGE 14 OF 18
Temporary Injunction for the duration of this lawsuit in accordance with Paragraph 50-51 of
Counter-Plaintiffs Counterclaims and Request for Injunctive Relief;
6.
That, upon a final hearing, the Court enter a Permanent Injunction, in accordance
with Paragraph 50-52 of Counter-Plaintiffs Counterclaims and Request for Injunctive Relief;
and
7.
For all such other and further relief at law or in equity that the Court may deem
Respectfully submitted,
Jeffrey M. Tillotson
Texas Bar No. 20039200
jtillotson@tillotsonlaw.com
Jonathan R. Patton
Texas Bar No. 24088198
jpatton@tillotsonlaw.com
Joseph A. Irrobali
Texas Bar No. 24092564
airrobali@tillotsonlaw.com
TILLOTSON LAW
750 N. St. Paul, Suite 610
Dallas, Texas 75201
(214) 382-3041 Telephone
(214) 501-0731 Facsimile
COUNSEL FOR DEFENDANT/
COUNTER-PLAINTIFFS STEPHEN R.
HERBEL, PATRICK MULLIGAN, B. CRAIG
WEBB, AND JERRY WEBB
PAGE 15 OF 18
Jeffrey M. Tillotson
CERTIFICATE OF SERVICE
I certify that a true and correct copy of the above and foregoing document was served on
all counsel of record herein on July 13, 2016 by E-Service.
I further certify that to the best of my knowledge this case is not subject to transfer under
Dallas County Local Rule 1.06.
Jeffrey M. Tillotson
PAGE 16 OF 18
VERIFICATION
STATE OF TEXAS
COUNTY OF DALLAS
BEFORE ME, the undersigned notary, on this day, personally appeared Patrick Mulligan,
the affiant, a person whose identity is known to me. After I administered an oath to affiant,
affiant testified:
"My name is Patrick Mulligan. I am capable of making this verification. I have read
Plaintiffs Verified Original Petition and Application for Temporary Restraining Order,
Temporary Injunction, and Permanent Injunction.
knowledge and are true and correct."
SUSAN D WADE
Notary ID II 5744803
My Commission Expires
June 1, 2020
{)UQ1v-
A_-,
PAGE 17 OF 18
A~
USA
PROMISSORY NOTE
Amount: $1,000,000.00
Due: October 24, 2015
The payment of this Promissory Note is guaranteed by Alon u;s.A. and Babran Global.
Alon U.S.A.
By:
- -.
1:&/!t:J:
Alon USA7616 LBJ frreeway, Suite 300Dallas, Texas 75251-7030Phone (972) 367-3600
PAGE 18 OF 18
EXHIBIT A