Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 1 of 100 Page ID #:1
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`Robert G. Klein, Esq., State Bar No. 128550
`LAW OFFICE OF ROBERT G. KLEIN
`8383 Wilshire Blvd., Suite 935
`Beverly Hills, California 90211
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`Telephone: (833) 997-5529
`Email: robert@kleinlitigation.com
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`Attorneys for Plaintiff Genesis Media LLC
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`UNITED STATES DISTRICT COURT
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`FOR THE CENTRAL DISTRICT OF CALIFORNIA
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`WESTERN DIVISION
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`GENESIS MEDIA LLC, a Nevada Limited ) CASE NO.
`Liability Company
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`Plaintiff,
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`!
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`COMPLAINT FOR:
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`vs.
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`) 1. Violation of 18 U.S.C.§1962(d) by
`)
`Conspiring to Violate §1962(a)
`OWNZONES MEDIA NETWORK, INC, a )
`corporation; DAN GOMAN, an individual; )
`JOSEPH GOMAN, an individual; MARY
`LAU, an individual; JUDY KIM, an
`individual; MITCH BERMAN, an
`individual; JOIW CALKINS, an
`individual; CRAIG KORNBLAU, an
`individual and DOES 1 through 50
`inclusive.
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`2. Violation of 18 U.S.C. §1962(d) by
`Conspiring to Violate §1962(c)
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`) 3. Violation of 18 U.S.C.§1962(c)
`)
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` 4. Breach of Implied Contract
`Restitution-Unjust Enrichment
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`))
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`Defendants.
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`)
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`DEMAND FOR JURY TRIAL
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`Plaintiff Genesis Media LLC, as and for its complaint against Ownzones Media
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`Network, Inc, a corporation; Dan Goman, an individual; Joseph Goman, an individual; Mary
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`Lau, an individual; Judy Kim, an individual; Mitch Berman, an individual; John Calkins, an
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`individual, and Craig Komblau, an individual alleges as follows:
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`Nature of Action
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`1.
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`This is an action arising out of defendants’ violations of the Racketeer
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`Influenced and Corrupt Organizations Act, 18 U.S.C.§§1961-1968. This case emanates from
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 2 of 100 Page ID #:2
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`the defendants systematic pattern to defraud plaintiff out of the money plaintiff placed with
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`defendants as part of a business proposition. The defendants racketeering activities included
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`criminal violations of the wire fraud and mail fraud statutes, and included security law
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`violations found at Sections 20 and 22 of the Securities Act of 1933 and various sections of
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`15 U.S.C. §§ 21 and 27 of the Securities Exchange Act of 1934. The defendants scheme and
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`pattern of racketeering starts with Ownzones making false and fraudulent oral and written
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`representations inflating revenue projections to induce parties to enter into contracts with
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`Ownzones. In this case Ownzones provided Genesis Media inflated revenue projections to
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`induce Genesis Media into investing $3.1 million with Ownzones. As part of the pattern of
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`racketeering Ownzones provided inflated returns on stock offerings Ownzones made to
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`prospective investors. The Securities and Exchange Commission sued Ownzones, Dan Goman
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`and Joseph Goman for fraud in connection with the sale of securities in violation of federal
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`securities laws. Ownzones continued its pattern of racketeering by submitting over-inflated
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`expense summaries, and embezzling money from Genesis Media by sending fraudulent bank
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`wire transfers to Ownzones’ branch office in Romania.
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`2.
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`Plaintiff seeks compensatory damages in excess of $14 million, plus treble
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`damages under the RICO claims, along with interest, attorney fees, and cost of suit. Plaintiff
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`thus seeks recovery of damages from defendants in excess of $56 million.
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`Plaintiff
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`Parties
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`Genesis Media LLC is a Nevada limited liability company created by Howard
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`I.
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`3.
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`Misle. Genesis Media was formed in March 2017 in anticipation of entering into a joint
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`venture partnership with Ownzones Media. Genesis Media raised slightly over $6 million to
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`be used exclusively to fund a budget to create the 420Tv app.
`n.
`Defendants
`4.
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`Ownzones Media Networks, Inc. is an entertainment technology company that
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`claims to provide a technology that allows content providers to make their content available
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`in a standardized format to various digital platforms. Ownzones Media Network is a Nevada
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 3 of 100 Page ID #:3
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`corporation with its principal office in Beverly Hills, California.
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`5.
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`Ownzones founder and CEO is Dan Goman who is a resident of Los Angeles,
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`California. He is the founder, sole board member, president, chief executive officer, and
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`largest shareholder of Ownzones Media Network, Inc.
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`6.
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`Joseph Goman, age 31, is a resident of Phoenix, Arizona. He is Dan Goman’s
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`younger brother and was, until May 2018, a paid consultant for OwnZones who presented to
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`current and prospective investors and also performed business development and sales
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`functions. At all times relevant Joseph Goman worked out of Ownzones’ Beverly Hills office.
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`7.
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`Mary Lau is a citizen of Los Angeles, California. At all times she was an
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`employee and financial consultant of Ownzones Media Network. Mary Lau prepared financial
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`projections for Ownzones.
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`8.
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`Judy Kim is Ownzones Media’s in-house counsel. Judy Kim is actively involved
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`in all aspects of Ownzones Media’s business including, but not limited to is financial dealings,
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`securities offerings, securities transactions and legal compliance with the securities and
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`corporate laws.
`9.
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`Mitch Berman at all times was a high level consultant and advisor to Ownzones
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`Media and a shareholder in Ownzones Media Network, Inc.. Mitch Berman was actively
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`involved in Ownzones’ efforts to raise money and procure financing. Mitch Berman
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`intentionally concealed from AlexNahai and Howard Misle the fact that Ownzones was under
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`investigation by the Securities and Exchange Commission for securities fraud during the time
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`Ownzones Media was negotiating the contract with Genesis Media. Mitch Berman is a citizen
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`of Los Angeles, California.
`10.
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`John Calkins is both a high level consultant, employee, and advisor to Ownzones
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`Media as well as a shareholder in the company. John Calkins’ role at Ownzones included
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`advising Ownzones on financial matters including procuring financing from investors though
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`stock offerings. John Calkins is a citizen of Los Angeles, California.
`11.
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`Craig Kornblau at all times was an employee of Ownzones Media working from
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`its Beverly Hills office. Craig Kornblau has been a strategic advisor to Ownzones since
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 4 of 100 Page ID #:4
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`December 2017, was involved in fund raising, investor relations, and bringing investors to
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`Ownzones. Since February 2017 Craig Kornblau has been an advisor to Google Ventures and
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`an advisor for Row8 since April 2016 a company owned by John Calkins.
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`12.
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`Each named defendant either played an active role in the securities fraud or were
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`part of a conspiracy to engage in the securities fraud violations and/or RICO violations.
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`Jurisdiction and Venue
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`13.
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`The court has jurisdiction over the subject matter of this action pursuant to 18
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`U.S.C. §1961 et. seq., 28 U.S.C. §1331,28 U.S.C. §1337 and 28 U.S.C. §1367.
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`14.
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`Personal jurisdiction and venue in this District are proper pursuant to 18 U.S.C.
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`§1965 and 28 U.S.C. §1391(b) because: (I) defendants are found in, have agents in, and/or
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`transact business and affairs in, this District, and have minimum contacts with this District;
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`and (ii) a substantial part of the events or omissions giving rise to the claims for relief occurred
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`Relevant Time Period
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`15.
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`Defendants’ racketeering conduct began in or about 2011 and continued until
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`at least when Ownzones Media was served with the SEC Complaint on April 2, 2020.
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`General Allegations
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`16.
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`Plaintiff Genesis Media LLC is a Nevada limited liability company that was
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`formed in March 2017 for the sole purpose of entering into a joint venture partnership with
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`Ownzones Media Networks, Inc.
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`17.
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`Effective May 22, 2017 the parties entered into the joint venture partnership
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`agreement called the Strategic Alliance Agreement. A copy of that agreement is attached as
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`Exhibit 1.
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`18.
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`Before the parties signed the Strategic Alliance Agreement the parties always
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`referred to the money Genesis Media contributed to develop the app as the "budget” and part
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`of a joint venture partnership.
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`19.
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`About a week before the parties signed the Strategic Alliance Agreement,
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`Ownzones insisted the term "budgef’was replaced by the term "service agreement”.
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 5 of 100 Page ID #:5
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`20.
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`Genesis Media later learned that Ownzones Media wanted the Strategic Alliance
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`Agreement to claim it was a “service fee” and not a “budget” so Ownzones Media could
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`falsely represent to its potential investors that Ownzones had $40 million asset on its balance
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`sheet ($4.1 million per year for ten years).
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`21.
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`In reality the money Genesis Media paid to develop the app did not belong to
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`Ownzones but instead was to be used exclusively to develop the app. As part of its scheme
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`and pattern of racketeering Ownzones was falsely inflating its balance sheet to attract
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`unsuspecting investors.
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`22.
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`The joint venture was to develop an “app” called 420Tv using streaming digital
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`technology to create a “channel” marketed to people interested in, or curious about, the
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`cannabis lifestyle.
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`23.
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`Under the Strategic Alliance Agreement Genesis Media, Ownzones Media, and
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`Alex Nahai Consulting would co-own, co-manage, and share profits on the 420Tv project.
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`24.
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`The agreement required Genesis to fund the budget for the 420Tv app to: (a) to
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`create and/or hire third party content producers to create television shows and a weekly news
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`program on the cannabis industry; (b) licence movies from copyright holders that would pique
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`the interest of people curious about the cannabis lifestyle; (c) budget for technology needed
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`to operate the website and channel; and (d) pay for marketing and public relations. The last
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`page of the Strategic Alliance Agreement sets out the only allowable budget items
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`25.
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`The parties anticipated the first year budget would be $4.1 million however
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`Ownzones only spent about $1.4 million on the 420Tv app in the first year. The parties
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`anticipated that Genesis would need to fund about $600k in the second year after generating
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`about $800k in anticipated ad sales. Ownzones projected the 420Tv app would generate
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`between $ 10-$ 12.5 million in the third year. By Ownzones’ projections. Genesis Media would
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`have recouped its total investment and the 420Tv app would be self-sustaining with sufficient
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`yearly revenues to perpetuate the business without any additional infusion of funds needed
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`26.
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`Ownzones represented it could get one million visitors to the 420Tv app and
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 6 of 100 Page ID #:6
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`website by the third year and Ownzones projected the 420Tv app would generate profits of
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`$10-12.5 million in the third year. The revenue was to come from: (a) monthly subscriptions;
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`(b) advertising revenue; and (c) merchandise sale. The business model was fashioned after
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`other streaming channels like Netflix and Amazon Prime.
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`27.
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`During the period from March 2017 through May 22, 2017, in order to entice
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`Genesis Media LLC to enter into the joint venture partnership agreement, Dan Goman of
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`Ownzones represented to Howard Misle that, among other things, Ownzones was a highly
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`successful company engaged in producing and creating high quality television channels using
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`streaming digital technology,
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`Dan Goman bragged about the big name and wealthy clients Ownzones landed
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`and how Ownzones possessed decades of experience at companies such as Amazon, HBO,
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`Netflix and Microsoft.
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`Goman repeatedly told Misle that Ownzones was in the process of obtaining
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`investments of $60 million from large corporations like Magnolia Pictures, MGM, Google
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`Ventures, and Sinclair Broadcasting.
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`30.
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`Goman repeatedly assured Misle that Ownzones had a stellar reputation in the
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`industry and was financially sound.
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`31.
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`In reliance of these and other representation and financial projections Genesis
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`Media entered into the joint venture partnership agreement. Dan Goman’s representations
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`about Ownzones’ standing in the industry including the representation of its experience and
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`stellar reputation was a substantial factor in Genesis Media deciding to enter into this joint
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`venture partnership agreement.
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`32.
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`What Dan Goman did not say was that at the time Ownzones and Genesis were
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`negotiating their contract, Ownzones was struggling financially. In fact, it was recently
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`revealed in the SEC Complaint infra that “the company [Ownzones] had never been
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`profitable”.
`33.
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`On April 14, 2018 about 11 months after the parties signed the joint venture
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`partnership agreement, Dan Goman sent Howard Misle an email stating:
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 7 of 100 Page ID #:7
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`As I think you're already aware, in the last 12 months or so,
`OWNZONES as a company has been increasingly moving in
`the direction of being a technology company only....
`To that end, I am proposing the following: We would keep doing
`the technology piece - nothing would change there
`The change would be in terms of content production, marketing
`and distribution.”. [Exhibit 2]
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`34.
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`At the time the parties were negotiating the j oint venture partnership agreement
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`that was signed May 22,2017, Ownzones was already contemplating discontinuing the content
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`production arm of its company.
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`35.
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`Eleven months after signing the joint venture partnership agreement, Ownzones
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`repudiated 97% of the entire contract.
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`36.
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`Genesis later learned that the Securities and Exchange Commission filed a
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`complaint (“SEC Complaint”) against Ownzones Media Network, Inc., Dan Goman, and
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`Joseph Goman on April 2, 2020 for violation of Sections 20 and 22 of the Securities Act of
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`1933 and various sections of 15 U.S.C. §§ 21 and 27 of the Securities Exchange Act of 1934.
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`37.
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`Genesis Media also learned that the Securities and Exchange Commission had
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`been investigating Ownzones for security fraud violations as far back as March 2017 during
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`the time Ownzones and Genesis Media were negotiating their contract. Dan Goman and
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`Ownzones’ consultant defendant Mitch Berman concealed that fact from Howard Misle and
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`Alex Nahai.
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`38.
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`According to the SEC Complaint Ownzones Media raised roughly $45 million
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`of illicit funds from the sale of unregistered securities through a fraudulent scheme to avoid
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`detection on the number of purchasers. Ownzones and its principals also used fraudulent
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`representations in their offer and sale of securities in violation of the federal securities laws.
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`A copy of that complaint m Securities & Exchange Commission vs. Ownzones Media Network,
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`Inc., Dan Goman and Joseph Goman United States District Court number 2:20-cv-03108 is
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`attached as Exhibit 3.
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`39.
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`On January 12, 2021 a Final Judgment was entered against Ownzones Media
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`Network, Inc. A copy of that final Judgment is attached as Exhibit 4.
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`40.
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`On January 13,2021 a Final Judgment was entered against Dan Goman. A copy
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 8 of 100 Page ID #:8
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`of that final judgment is attached as Exhibit 5. Page 5 of that judgment states “the allegations
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`in the complaint were true and admitted by Defendant [Dan Goman]”. This was to avoid the
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`possibility that Dan Goman would discharge this judgment in bankruptcy; however this
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`statement is a declaration against interest made by Dan Goman.
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`41.
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`On March 17, 2021 a Final Judgment was entered against Joseph Goman. A
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`copy of that final judgment is attached as Exhibit 6.
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`42.
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`The Joseph Goman judgment states“the allegations in the complaint were true
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`and admitted by Defendant [Joseph Goman]”.
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`43.
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`After Howard Misle learned about the SEC Complaint and eventual judgments
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`things started making more sense.
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`44.
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`The Strategic Alliance Agreement required Genesis to fund a $4.1 million
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`budget to develop the 420Tv app.
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`45.
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`Genesis funded $3.1 million of the budget by July 2017, about 45 days after
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`signing the contract which by the contract’s term was timely. The parties agreed that Genesis
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`could defer funding the last $1 million until Misle saw how the project was progressing.
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`46.
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`By February 2018, some 217 days later, Dan Goman sent an email to Alex Nahai
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`asking when Howard Misle was coming up with the last $1 million because he had investors
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`coming around who would be “asking questions”.
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`47.
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`Misle learned that Dan Goman wanted this last $1 million, that was supposed
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`to go into the 420Tv project, to put on Ownzones’ financial statements to create the false
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`impression that Ownzones appeared to be stronger financially than its accurate financials
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`showed. Goman did this in order to defraud these unsuspecting investors.
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`48.
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`Had Howard Misle known that Dan Goman of Ownzones was engaging in
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`securities fraud at the time they were negotiating their contract. Genesis Media would never
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`would have entered into this contract.
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`49.
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`Had Howard Misle known that Dan Goman of Ownzones was not a financially
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`viable company and not capable of performing its contractual obligations, Genesis Media
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`never would have entered into this contract.
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 9 of 100 Page ID #:9
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`50.
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`On February 2,2018 Dan Goman wire transferred $99,000 of Genesis Media’s
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`money to Ownzones’ branch office in Romania.
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`51.
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`On March 5, 2018 Dan Goman wire transferred $37,000 of Genesis Media’s
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`money to Ownzones’ branch office in Romania.
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`52.
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`The budget for the 420Tv project did not allow Ownzones to use any of the $3.1
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`million it received from Genesis Media for Ownzones’ overhead including employee salaries,
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`office rent, or attorney fees. The budget attached to the Strategic Alliance Agreement is
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`specific on the allowed expenditures.
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`53.
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`As of March 31, 2018 Ownzones only spent $43,895.34 for the technology
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`portion of the 4201V budget.
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`54.
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`If Ownzones spent $43,895.34 on technology to any party other than Ownzones
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`then Ownzones embezzled $92,104.66.
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`55.
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`If Ownzones spent the entire $43,895.34 on Ownzones’ employees then
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`Ownzones embezzled $136,000 from Genesis Media. Discovery will be needed.
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`56.
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`In April 2018 Ownzones emailed Genesis Media its 420Tv Expense Summary.
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`On that expense summary Ownzones fraudulently over-inflated an expense item where
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`Ownzones charged Genesis Media $325,000 for Ownzones’ attorney fees which were not a
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`budgeted item.
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`57.
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`In May 2018 Dan Goman told Howard Misle that Ownzones was incapable of
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`performing the Strategic Alliance Agreement and was repudiating 97% of the contract.
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`58.
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`Misle asked Goman to return the $1.6 million left over from Genesis Media’s
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`$3.1 million, to turn over access to the 420Tv domain name, app and website, and all contracts
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`entered into for the project. Dan Goman refused.
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`59.
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`Genesis Media gave Ownzones Media $3.1 and has nothing to show for that
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`60.
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`Genesis lost $3.1 million, lost profits, and has been unable to make the 420Tv
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`app functional in order to be able to generate any revenue.
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`61.
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`Genesis Media did not learn that Ownzones Media Network was a criminal
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 10 of 100 Page ID #:10
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`enterprise until after the SEC complaint was filed on April 2, 2020 and confirmed by
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`judgments against Ownzones Media, Dan Goman, and Joseph Goman.
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`62.
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`As a direct and proximate result of Ownzones’ fraud and deceit Ownzones
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`repudiated the contract and caused Genesis Media damages in the amount of at least $14
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`million.
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`Facts Regarding Defendant's Securities Fraud as Part of Its Racketeering Scheme
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`63.
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`From 2011 through the present, OwnZones Media Network, Inc., its CEO and
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`president Daniel Goman (“Dan Goman”), and its agent and stock salesman Joseph Goman
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`(“Joe Goman”) raised roughly $45 million offering and selling an unregistered securities
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`offering to over a thousand investors without any exemption from registration.
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`64.
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`The company engaged in general solicitation and raised money from numerous
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`unaccredited investors, purporting to avoid selling to too many unaccredited investors by
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`devising a “subinvestmenf'process whereby subinvestors’” money has been aggregated under
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`supposedly accredited “direct investors.” OwnZones raised money through its unregistered
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`offering, taking in millions of dollars just before the SEC Complaint was filed.
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`65.
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`OwnZones, Dan Goman, and Joe Goman also committed fraud in the course of
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`offering and selling OwnZones stock. Joe Goman, while selling OwnZones stock on behalf
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`of the company, made multiple misstatements to investors that ranged from saying that
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`Venture Capitalist MC and MGM had purchased OwnZones stock for $5 per share to
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`representing that Google had offered to buy OwnZones for $500 million.
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`66.
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`Joe Goman also made baseless predictions that OwnZones was about to go
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`public and that its IPO price would be many multiples higher than what investors were paying
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`for their shares.
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`67.
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`OwnZones and Dan Goman made additional statements to investors concerning
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`OwnZones’ IPO and the status of discussions with major company investors that were false
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`or misleading. Moreover, Dan Goman, who runs the company’s day-to-day operations and has
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`primary responsibility for handling investments in the company, was liable as a control person
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`of OwnZones, and he did not act in good faith because he ignored multiple warning signs
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 11 of 100 Page ID #:11
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`about Joe’s misconduct in connection with his OwnZones fundraising efforts.
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`68.
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`Defendants’ pattern of racketeering started with Ownzones and Goman’s false
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`and fraudulent oral and written representations inflating revenue projections made to Genesis
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`Media and continuing with “[Goman’s] “fraud in the course of offering and selling OwnZones
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`stock. Joe Goman, while selling OwnZones stock on behalf of the company, made multiple
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`misstatements to investors” as alleged in the SEC Complaint.
`
`69.
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`By this conduct, all of the Defendants violated Sections 5(a), 5(c), and 17(a) of
`
`the Securities Act and Section 10(b) of the Exchange Act and Rule lOb-5 thereunder. In
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`addition, Dan Goman is liable under Section 20(a) of the Exchange Act for OwnZones’
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`violations of that Act.
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`70.
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`Ownzones and Dan Goman also engaged in wire fraud by embezzling over
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`$136,000 from Genesis Media by wiring Genesis Media’s money to Ownzones branch office
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`in Romania. Dan Goman wired a fraudulent payment on February 2,2018 and March 5,2018.
`
`71.
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`The other defendants aided, abetted and assisted Dan Goman and Joseph Goman
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`and were part of a conspiracy to defraud and violate the RICO statute.
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`72.
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`Genesis Media brings this action for damages under 18 U.S.C. §1961(a), (c)and
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`(d); the Racketeer Influenced and Corrupt Organization Act (RICO), and the common law.
`FIRST CLAIM FOR RELIEF
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`(Violation of 18 U.S.C. §1962(d) by Conspiring to Violate §1962(a)
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`Against Each Defendant)
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`73.
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`Genesis Media realleges and incorporates by reference the allegations contained
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`in the preceding paragraphs as if fully set forth herein.
`74.
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`Plaintiff is a “person’* under 18 U.S.C. §1961(3) and 1964(c).
`
`75.
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`1962(d).
`76.
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`Each of the defendants is a “person” under 18 U.S.C. §1961(3). 1962(a), and
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`Ownzones Media Network, Inc. and the individual defendants constitute an
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`a
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`enterprise” within the meaning of 18 U.S.C.§1961(4) and §1962(a) which were engaged in
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`activities affecting intestate commerce at all times relevant to this Complaint.
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 12 of 100 Page ID #:12
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`77.
`
`Defendants conspired among themselves within the meaning of 18
`
`U.S.C.§ 1962(d) to violate 18 U.S.C.§ 1962(a), that is, defendants conspired among themselves
`
`that income would be received, directly or indirectly, from a pattern of activity unlawful under
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`18 U.S.C.§1961(1)(A) in which defendants participated as principals within the meaning of
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`18 U.S.C.§§1961(1). 1961(5), and 1962(a), to wit: multiple repeated, and continuous acts of
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`fraudulent inducement including securities fraud, mail fraud and wire fraud.
`
`78.
`
`As a result, plaintiff has suffered substantial injury to his business within the
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`meaning of 18 U.S.C.§ 1964(c), including but not limited to the loss of $3.1 million that was
`
`converted by the defendants, lost income of $10 million, attorney fees currently about
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`$500,000, and loss of business opportunity of $500,000.
`
`SECOND CLAIM FOR RELIEF
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`(Violation of 18 U.S.C, §1962(d) by Conspiring to Violate §1962(c)
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`Against Each Defendant)
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`79.
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`Genesis Media realleges and incorporates by reference the allegations contained
`
`in the preceding paragraphs as if fully set forth herein.
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`80.
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`81.
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`1962(d).
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`Plaintiff is a "person’’ under 18 U.S.C. §1961(3) and 1964(c).
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`Each of the defendants is a "person” under 18 U.S.C. §1961(3). 1962(a), and
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`82.
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`Ownzones Media Network, Inc. and the individual defendants constitute an
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`“enterprise” within the meaning of 18 U.S.C.§1961(4) and 1962(c), which were engaged in
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`activities affecting interstate commerce at all times relevant to this complaint.
`83.
`Each of the defendants were and are associated with the enterprise and conspired
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`within the meaning of 18 U.S.C. § 1962(d) to violate 18 U.S.C.§ 1962(c), that is, the defendants
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`conspired to conduct or participate, directly or indirectly, in the management and operations
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`of the affairs of Ownzones Media Network, Inc in relationship to the Plaintiff through a
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`pattern of activity unlawful under 18 U.S.C.§§1961. §1341 and §1343, to wit: multiple
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`repeated, and continuous acts of fraudulent inducement including securities fraud, mail fraud
`and wire fraud.
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 13 of 100 Page ID #:13
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`84.
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`As a result, plaintiff has suffered substantial injury to his business within the
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`meaning of 18 U.S.C.§1964(c), including but not limited to the loss of $3.1 million that was
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`converted by the defendants, lost income of $10 million, attorney fees currently about
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`$500,000, and loss of business opportunity of $500,000.
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`THIRD CLAIM FOR RELIEF
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`(Violation of 18 U.S.C. §1962(c) Against Each Defendant)
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`85.
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`Genesis Media realleges and incorporates by reference the allegations contained
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`in the preceding paragraphs as if fully set forth herein.
`
`86.
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`87.
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`1962(d).
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`Plaintiffis a “person” under 18 U.S.C. §1961(3) and 1964(c).
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`Each of the defendants is a “person” under 18 U.S.C. §1961(3). 1962(a), and
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`88.
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`Ownzones Media Network, Inc. and the individual defendants constitute an
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`“enterprise” within the meaning of 18 U.S.C.§1961(4) and 1962(c), which were engaged in
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`activities affecting interstate commerce at all times relevant to this complaint.
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`89.
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`Each of the individual defendants were and are associated with the enterprise
`
`and have conducted or participated, directly or indirectly, in the management and operation
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`of the affairs of the enterprise in relationship to the plaintiff through a pattern of activity
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`unlawful under 18U.S.C.§1961 (A) to wit: multiple repeated, and continuous acts of fraudulent
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`inducement including securities fraud, mail fraud and wire fraud.
`
`90.
`
`Plaintiff has suffered substantial injury to its business or property within the
`
`meaning of 18 U.S.C. § 1964(c) by reason of the violation of 18 U.S.C. § 1962(c) committed by
`
`the defendants, including but not limited to the loss of $3.1 million that was converted by the
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`defendants, lost income of $10 million, attorney fees currently about $500,000, and loss of
`
`business opportunity of $500,000.
`
`FOURTH CLAIM FOR RELIEF
`
`(Breach of Implied Contract-Restitution-Unjust Enrichment Against Each
`
`91.
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`Genesis Media realleges and incorporates by reference the allegations contained
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`Defendant)
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`Case 2:21-cv-03128 Document 1 Filed 04/12/21 Page 14 of 100 Page ID #:14
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`in the preceding paragraphs as if fully set forth herein.
`
`92.
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`After Genesis Media and Ownzones Media entered into the Strategic Alliance
`
`Agreement, Ownzones falsely represented to its potential investors and potential partners that
`
`the Genesis-Ownzones contract was a service fee contract where Ownzones would earn $4.1
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`million per year for ten years.
`
`93.
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`In truth and fact the contract was a joint venture partnership agreement and the
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`money Genesis Media was to contribute to develop the 420Tv app did not belong to Ownzones
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`but was to be used exclusively to create the 420Tv app.
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`94.
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`Ownzones made that false representation to inflate its balance sheet and
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`financial records in order to convince investors to invest in Ownzones’ stock offerings and to
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`entice corporate giants to contract with Ownzones.
`
`95.
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`As a direct result of Ownzones conduct Ownzones was unjustly enriched by $45
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`million.
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`PRAYER FOR RELIEF
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`WHEREFORE, Genesis Media prays for relief and judgment against all defendants
`
`as follows:
`
`1.
`
`Compensatory and consequential damages to plaintiffs business and property,
`
`including but not limited to, $14 million consisting of a loss of $3.1 million that was
`
`converted by the defendants, lost income of $10 million, attorney fees currently about
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`$500,000, and loss of business opportunity of $500,000;
`
`2.
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`Threefold the amount of the damages sustained by plaintiffs for defendants
`
`violations of 18 U.S.C.§§1961-1968 in the amount of $42 million for a total of$56 million.
`
`3.
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`Exemplary and punitive damages for the defendants’ intentional, willful, wanton,
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`outrageous or malicious misconduct, characterized by their evil or rancorous motive, ill will
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`and intent to injure the plaintiff or the defendants’ gross negligence evincing a conscious
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`disregard for plaintiffs rights in an amount to be determined at the time of trial.
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`4.
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`Equitable relief as might be appropriate including, but not limited to permanent
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`injunctions preventing and enjoining defendants, and each of them from:
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