IN THE SUPREME COURT OF THE STATE OF NEVADA
`
` No. 84614
`Electronically Filed
`Oct 10 2022 11:16 a.m.
`Elizabeth A. Brown
`Clerk of Supreme Court
`
`RAYMOND SCOTT, AN INDIVIDUAL
`AND TROY FOBBS, AN INDIVIDUAL,
` Appellants,
`
`vs.
`INITIATIVE LLC, A
`THE ACE
`LIMITED
`LIABILITY
`NEVADA
`AND
`ABUNDANT
`COMPANY;
`BOUNTY LLC, A NEVADA LIMITED
`LIABILTY COMPANY,
` Respondents,
`
`APPEAL
`
`From the Eight Judicial District Court, Department XIV
`The Honorable Joe Adriana Escobar, District Judge
`District Court Case No. A-20-811610-C
`_____________________________
`APPELLANTS’ OPENING BRIEF
`APPENDIX
`_____________________________
`
`CARRIE E. HURTIK, ESQ.
`Nevada Bar No. 7028
`JONATHON R. PATTERSON
`Nevada Bar No. 9644
`HURTIK LAW AND ASSOCIATES
`6767 West Tropicana Ave., Suite #200
`Las Vegas, NV 89103
`(702) 966-5200
`Attorneys for Appellants,
`Raymond Scott and Troy Fobbs
`
`Docket 84614 Document 2022-31798
`
`

`

`CHRONOLOGICAL INDEX TO PETITIONER’S APPENDIX
`
`Document Description
`Plaintiff’s Complaint 3.3.2020
`Plaintiff’s Amended Complaint 10.16.2020
`Defendant’s Answer and Counterclaim 2.19.2021
`Plaintiff’s Motion for Temporary Restraining Order and
`Preliminary Injunction 12.21.2021
`Order Granting Plaintiff’s Motion for Temporary
`Restraining Order and Preliminary Injunction 3.22.2022
`Notice of Entry Order Granting Plaintiff’s Motion for
`Temporary Restraining Order and Preliminary Injunction
`3.22.2022
`Transcript of Hearing 8.8.2022
`
`Volume Bates Number
`I
`APP00001-50
`I
`APP000051-102
`I
`APP000103-133
`I
`APP000134-172
`
`I
`
`I
`
`I
`
`APP000174-180
`
`APP000181-191
`
`APP000192-229
`
`ALPHABETICAL INDEX TO PETITIONER’S APPENDIX
`
`Document Description
`Defendant’s Answer and Counterclaim 2.19.2021
`Notice of Entry Order Granting Plaintiff’s Motion for
`Temporary Restraining Order and Preliminary Injunction
`3.22.2022
`Order Granting Plaintiff’s Motion for Temporary
`Restraining Order and Preliminary Injunction 3.22.2022
`Plaintiff’s Amended Complaint 10.16.2020
`Plaintiff’s Complaint 3.3.2020
`Plaintiff’s Motion for Temporary Restraining Order and
`Preliminary Injunction 12.21.2021
`Transcript of Hearing 8.8.2022
`
`Volume Bates Number
`I
`APP000103-133
`I
`APP000181-191
`
`I
`
`I
`I
`I
`
`I
`
`APP000174-180
`
`APP000051-102
`APP00001-50
`APP000134-172
`
`APP000192-229
`
`2
`
`

`

`CERTIFICATE OF SERVICE
`
` I JONATHON R. PATTERSON, HEREBY CERTIFY that I am an
`
`employee of HURTIK LAW AND ASSOCIATES, and that on the 10th day of
`
`October 2022, I caused to be served a true and correct copy of the foregoing
`
`APPELLANT'S APPENDIX to be E-filed on all registered parties to the Supreme
`
`Court E-Flex System with the Clerk of the Court.
`
`/s/: JONATHON R. PATTERSON
`____________________________
`JONATHON R. PATTERSON
`Employee of Hurtik Law and Associates
`
`3
`
`

`

`Electronically Filed
`3/3/2020 4:32 PM
`Steven D. Grierson
`CLERK OF THE COURT
`CLERK KKKKKKKK OF THE COUUUURTRTRTRTTRTRTTTTTRRRRRR
`
`CASE NO: A-20-811610-C
`Department 14
`
`COMP
`Sagar Raich, Esq.
`NEVADA BAR NO. 13229
`6785 S. Eastern Ave. Ste. 5
`Las Vegas, NV 89119
`Telephone: (702) 758-4240
`Facsimile: (702)369-8597
`Email: sraich@raichattorneys.com
`Attorney for Plaintiffs
`
`DISTRICT COURT
`CLARK COUNTY, NEVADA
`
`THE ACE INITIATIVE LLC, a Nevada Limited
`Liability Company; SANG KIM, an Individual;
`AMARPREET PARVAGA, an Individual;
`
`
`Plaintiff(s),
`
`
`
`vs.
`
`RAYMOND SCOTT, an individual; TROY
`FOBBS, an Individual; MAJID MUJAHID, an
`Individual; ABUNDANT BOUNTY LLC, a Nevada
`Limited Liability Company; DOES I through X; and
`ROE BUSINESS ENTITIES I through X,
`
`
` Defendant(s).
`
`Case No.:
`Dept. No.:
`
`COMPLAINT
`(Arbitration Exemption Claimed:
`Amounts in excess of $50,000,
`Equitable Remedy Sought,
`Extraordinary Relief Requested).
`
`Plaintiffs, THE ACE INITIATIVE LLC, SANG KIM, and AMARPREET PARVAGA,
`
`by and through its attorney of record, SAGAR RAICH, ESQ. of RAICH LAW PLLC, hereby
`
`files its complaint (“Complaint”) against Defendants:
`
`PARTIES
`
`1.
`
`That Plaintiff, THE ACE INITIATIVE LLC (“ACE”), is, and at all times material
`
`hereto, was a Nevada Limited Liability Company doing business in Clark County, State of
`
`Nevada.
`
`2.
`
`That Plaintiff, SANG KIM (“SANG”), is, and at all times material hereto, was an
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`individual residing in Clark County, Nevada.
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`Page 1 of 50
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`Case Number: A-20-811610-C
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`3.
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`That Plaintiff AMARPREET PARVAGA (“PARVAGA”), is and at all times
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`material hereto, was an individual residing in Clark County, Nevada.
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`4.
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`That Defendant RAYMOND SCOTT (“RAY”), is and at all times material
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`hereto, was an individual residing in Virginia, but who repeatedly and consistently had contacts
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`within Clark County, Nevada, including meetings and business transactions.
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`5.
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`That Defendant TROY FOBBS (“TROY”), is and at all times material hereto, was
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`an individual residing in Virginia, but who repeatedly and consistently had contacts within Clark
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`County, Nevada, including meetings and business transactions.
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`6.
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`That Defendant MAJID MUJAHID (“MAJID”), is and at all times material
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`hereto, was an individual residing in Texas, but who repeatedly and consistently had contacts
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`within Clark County, Nevada, including meetings and business transactions.
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`7.
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`That Defendant, ABUNDANT BOUNTY LLC d/b/a DROPSHIPPERZ (“DS”),
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`is, and at all times material hereto, was a Nevada Limited Liability Company doing business in
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`Clark County, Nevada.
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`8.
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`That the true names and capacities of Defendants DOES I through X and/or ROE
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`BUSINESS ENTITIES I through X, whether individual, company associate, or otherwise are
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`unknown to the Plaintiffs at the time of filing of this Complaint, and Plaintiffs therefore sue said
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`Defendants by such fictitious names. Plaintiffs are informed, believe and therefore allege that
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`each of the Defendants, designated as DOES I through X and/or ROES I through X are or may
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`be, legally responsible for the events referred to in this action, and caused damages to the
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`Plaintiffs, as herein alleged, and Plaintiffs will ask leave of this Court to amend the Complaint to
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`insert the true names and capacities of such Defendants, when the same have been ascertained,
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`and to join them in this action, together with the proper charges and allegations.
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`Page 2 of 50
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`APP000002
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`JURISDICTION
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`9.
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`That this Court has jurisdiction over all Defendants, not only based on general
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`jurisdiction, but also because the acts and omissions complained of herein were committed
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`within Clark County, Nevada, and thus the Defendants have had sufficient minimum contacts
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`with this forum such that exercise of personal jurisdiction will not offend the traditional notions
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`of fair play and substantial justice.
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`10.
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`That venue is proper in the Eighth Judicial District Court in the County of Clark
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`because the subject matter of this Complaint and other acts alleged herein occurred within Clark
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`County and the amount in controversy exceeds $15,000.00.
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`ALLEGATIONS COMMON TO ALL CLAIMS
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`11.
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`That it has become increasingly common for individuals and entities to have
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`online / e-commerce stores that sell products online.
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`12.
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`That Amazon.com (“Amazon”) is one such platform for individuals and entities to
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`have third party stores that sell products and goods on such stores.
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`13.
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`That ACE is a service provider wherein ACE helps online store owners manage
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`their stores in an attempt to increase sales and obtain profitability.
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`14.
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`That ACE is paid by the store owners and in turn ACE retains sub-contractors that
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`help manage the stores.
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`That the management of stores includes but is not limited to helping create the
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`store, helping set up procurement channels, helping source products, helping manage inventory,
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`helping undertake sales, helping with returns, and related activities to keep and maintain stores.
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`16.
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`That MAJID approached PARVAGA and SANG to help sell such stores to third
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`parties with the explanation that MAJID and his associates, RAY and TROY would help service
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`
`
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`Page 3 of 50
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`APP000003
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`

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`such stores by helping create the store, helping set up procurement channels, helping source
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`products, helping manage inventory, helping undertake sales, helping with returns, and related
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`activities to keep and maintain stores.
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`17.
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`That RAY had no experience with online stores, e-commerce, drop shipping, or
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`Amazon store management.
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`18.
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`That TROY had no experience with online stores, e-commerce, drop shipping, or
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`Amazon store management.
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`19.
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`That TROY was a friend of RAY and realized an opportunity to cajole and
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`defraud hundreds of individuals and entities in a targeted scheme.
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`20.
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`That TROY has claimed to be a ‘consultant’ for RAY but has in fact been a
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`crucial and integral co-conspirator with RAY of the schemes alleged herein.
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`21.
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`That TROY has been a party to and has participated in countless meetings
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`between ACE, DS, MAJID, SANG, PARVAGA, and of course, RAY.
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`22.
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`That TROY, due to his alleged criminal past, has attempted to keep himself in the
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`background of the schemes alleged herein, but was in fact, along with RAY, the mastermind of
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`such schemes.
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`23.
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`That TROY’s has stated to multiple parties that he is ‘untouchable’ and that he is
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`in charge of the schemes alleged in the Complaint herein.
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`24.
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`That RAY and TROY entered into agreements with SANG, PARVAGA, and
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`ACE wherein RAY and TROY would manage stores represented and/or owned and/or sold by
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`SANG, PARVAGA, and ACE.
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`25.
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`That RAY and TROY never actually managed such stores and in fact did not even
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`launch a majority of stores for which they were paid.
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`Page 4 of 50
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`APP000004
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`26.
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`That RAY and TROY had some agreements, in contravention to Nevada State
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`Law, public policy, and consumer interests, wherein RAY and TROY would divide the proceeds
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`of their illegal and immoral scheme.
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`27.
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`That RAY and TROY intentionally, maliciously, and criminally conspired to take
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`funds from ACE that were provided by ACE to RAY to launch stores, manage them, and make
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`them profitable.
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`28.
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`That RAY and TROY took anywhere from $4,000.00 to $10,000.00 for each
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`store from ACE to launch, manage, service and make profitable hundreds of stores.
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`29.
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`That RAY provided significant sums from such monies paid for services to be
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`rendered to TROY, which TROY has posted to social media.
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`30.
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`That RAY and TROY have flaunted their ‘success’ of becoming millionaires on
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`social media, while the truth is that said monies were never earned by RAY and TROY.
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`31.
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`That rather than performing services for which they were paid, RAY and TROY
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`instead used funds to support a lavish lifestyle filled with expensive automobiles, new homes,
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`and vacation trips.
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`That while store owners, SANG, PARVAGA, and ACE were waiting for RAY
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`and TROY to perform, RAY and TROY were spending hundreds of families’ hard earned money
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`rather than doing what they was being paid for.
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`That ACE also provided significant funds to DS for the same services for many
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`stores which DS is believed to have further provided to RAY and TROY who then provided
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`partial funds to TROY.
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`34.
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`That ACE provided over $186,982.00 to RAY an TROY for services which have
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`not been rendered.
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`35.
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`That ACE provided over $1,071,416.04 to DS, of which over $600,000.00 is
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`believed to have been provided to RAY and TROY.
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`36.
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`That RAY, TROY, and DS have failed to launch, operate, run, or otherwise
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`manage most of the online stores.
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`37.
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`That RAY, TROY, and DS have only helped ACE and its clients launch a handful
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`of stores.
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`That even of the stores that have launched, most are being shut down by Amazon
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`due to mismanagement, fraud, and violations of policies undertaken by RAY and TROY and
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`have been unprofitable.
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`39.
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`That RAY and TROY knew before they took any funds from ACE that RAY and
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`TROY were not capable of launching or running online stores.
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`40.
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`That RAY and TROY knew before they took any funds from ACE that RAY and
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`TROY did not have any intention of launching most stores.
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`41.
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`That RAY, TROY, and MAJID convinced PARVAGA, SANG, and ACE to find
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`individuals to help start their stores even though RAY, TROY, and MAJID knew that they could
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`not launch or otherwise service a majority of such stores.
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`42.
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`That RAY, TROY, MAJID, and DS had PARVAGA, SANG, and ACE find
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`individuals and entities to pay just so that RAY, TROY, and MAJID can engage and sustain a
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`lavish lifestyle without any intention of launching or operating most of the stores.
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`43.
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`That upon PARVAGA, SANG, and ACE repeatedly asking RAY, TROY, and DS
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`for performance of the stores, RAY, TROY, and DS repeatedly delayed with excuses and failed
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`to launch stores, manage them properly, and otherwise work on the stores at all.
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`That the handful of stores that RAY, TROY, MAJID, and DS attempted to launch
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`Page 6 of 50
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`44.
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`APP000006
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`and run violated Amazon’s terms and conditions and were otherwise shutdown for RAY and
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`TROY defrauding Amazon.
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`45.
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`That RAY defrauded Amazon, and received help from TROY and MAJID for
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`doing so, in various ways including but not limited to attempting to sell fake or non-existing
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`products on the online stores of ACE clients, by attempting to sell merchandize on Amazon prior
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`to having said merchandize, and through similar schemes.
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`46.
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`That RAY defrauded those who consumers who purchased items from the online
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`stores, and received help from TROY and MAJID for doing so, in various ways including but not
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`limited to selling items that RAY, TROY, MAJID, DS, or the stores did not have.
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`47.
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`That RAY defrauded those consumers who purchased items from the online
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`stores, and received help from TROY and MAJID for doing so, in various ways including but not
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`limited to by attempting to sell items and purposefully not returning the funds when the
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`consumer complained of not receiving the items.
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`That RAY defrauded those who consumers who purchased items from the online
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`stores, and received help from TROY and MAJID for doing so, in various ways including but not
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`limited to by lying to the consumer about the reason why the order was not fulfilled.
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`49.
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`That RAY defrauded those who consumers who purchased items from the online
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`stores, and received help from TROY and MAJID for doing so, in various ways including but not
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`limited to engaging in various schemes attempting to defraud unsuspecting consumers and using
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`ACE’s clients’ e-commerce accounts to do the same.
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`50.
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`That RAY attempted to defraud many third parties including Walmart, and
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`received help from TROY and MAJID for doing so, in various ways including but not limited to
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`attempting to order products online in a manner as to try and trick Walmart and other stores into
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`providing free shipping by ordering two items when only the purchase of one item was needed to
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`provide to the consumer, but ordering two items to get free shipping, and then cancelling the
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`second item purchase with Walmart and others to obtain the free shipping without purchasing the
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`second item.
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`51.
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`That RAY, TROY, MAJID, and DS failed to pay the proper taxes to various
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`jurisdictions in the operations of the handful of stores that they launched and manage for the
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`benefit of ACE and its clients.
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`52.
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`That RAY, TROY, MAJID, and DS offered consumers ‘free gifts’ if they made
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`purchases from Amazon stores belonging to ACE’s clients, but that when unsuspecting
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`consumers actually made such purchases, they were not give any ‘free gifts’ by RAY, by
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`MAJID, or by TROY.
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`53.
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`That RAY, TROY, and MAJID billed clients of ACE for month(s), per month, for
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`services they did not provide – RAY, TROY, and MAJID therefore not only took money up front
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`for stores that they did not launch or operate, but were also grossly charging such stores periodic
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`fees and costs.
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`54.
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`That RAY, TROY, MAJID, and DS’ actions have led to significant liabilities for
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`store owners and have ruined the lives of hundreds of hard working families across the United
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`States.
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`55.
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`That RAY, TROY, and MAJID failed to undertake billing for ACE clients’ and
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`for various parties’ stores thereby leading to massive losses in these online stores.
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`56.
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`That RAY, TROY, MAJID, and DS failed to perform their contract with ACE
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`when they failed to input information of the stores to various parties including Amazon,
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`Walmart.com, state agencies, financial institutions, and government institutions.
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`Page 8 of 50
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`That such information was crucial to the launching and operations of the store and
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`included but was not limited to deposit information, credit card information, emergency contacts,
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`phone numbers, addresses, Employment Identification Numbers, State and Federal Tax
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`Information, etc.
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`58.
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`That due to a combination of various actions, including but not limited to those
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`above and those highlighted in the Complaint herein, that ACE and its clients were subject to
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`significant, detrimental, and permanent online store closures by Amazon.
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`59.
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`That DS failed to bill online stores properly thereby not providing ACE with up to
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`Five Percent (5.00%) of the revenue generated by the stores.
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`60.
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`That RAY has claimed, falsely, that he has two hundred and seventy (270) virtual
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`assistants that are running ACE’s client’s online stores so as to continue to fraudulently convince
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`PARVAGA, SANG, and ACE to continue to have their clients’ stores be “managed” by RAY.
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`61.
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`That upon RAY, TROY, MAJID, and DS’ failure to perform as agreed, ACE
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`began to look for other options to service its clients and customers.
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`62.
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`That ACE then attempted to contact RAY, MAJID, and DS to attempt to seek
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`reimbursements.
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`63.
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`That DS provided ACE $300,000.00 as partial refunds for monies provided by
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`ACE to DS to help launch, manage, and operate the online stores.
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`64.
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`That RAY, TROY, and MAJID have not provided any reimbursements to ACE
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`for funds received for services not performed.
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`65.
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`That as per an agreement between MAJID, DS, PARVAGA, SANG, DS, and
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`RAY, that the parties had agreed to put forth $750,000.00 in a separate account
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`(“Reimbursement Fund”), with $250,000 to be provided by DS and $250,000 to be provided by
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`RAY, and $250,000 provided by TROY – all of which were provided.
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`66.
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`That such an account was set up for many purposes including but not limited to
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`assisting the parties obtain credit card processing services and set up of a reimbursement fund to
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`provide for any refund requests made by ACE, SANG, or PARVAGA.
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`67.
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`That upon realizing the scam that RAY, TROY, and MAJID were perpetrating,
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`that ACE stopped sending new clients to RAY or to DS.
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`68.
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`That upon realizing that their golden goose was going away and that they would
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`not be able to dupe ACE and its clients into providing them more funds, RAY and TROY began
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`a systematic campaign of harassment, threats, and defamation against PARVAGA, SANG, ACE,
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`and ACE management.
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`69.
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`That RAY and TROY began to threaten PARVAGA, SANG, ACE, and ACE
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`management with bogus criminal complaints, threatening to put PARVAGA, SANG, ACE, and
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`ACE management “in jail,” and otherwise attempted to extort the $500,000.00 in funds provided
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`by RAY and TROY for the reimbursement fund.
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`70.
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`That all of the money that was set aside for the Reimbursement Fund was not
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`earned in any way shape or form by RAY, TROY, MAJID, or DS and that their threats and
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`attempts to have ACE’s funds were fraudulent and criminal in nature.
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`71.
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`That RAY and TROY have, repeatedly, in person and over social media,
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`threatened physical harm and bodily injury to PARVAGA, SANG, ACE, and ACE management.
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`72.
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`That RAY and TROY have, repeatedly, in person and over social media, defamed
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`PARVAGA, SANG, ACE, and ACE management.
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`73.
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`That RAY and TROY have, repeatedly, in person and over social media,
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`threatened PARVAGA, SANG, ACE, and ACE management with threats of filing false police
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`reports against them to extort funds from them.
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`74.
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`That upon realizing that SANG, PARVAGA, and ACE and their clients would be
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`significantly and irreparably harmed, that SANG, PARVAGA, and ACE began to mitigate their
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`losses and the losses of their clients by attempting to move any and all stores that were provided
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`to RAY, TROY, and MAJID back into the control of SANG, PARVAGA, and ACE so that they
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`may actually be launched and otherwise run.
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`75.
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`That RAY, TROY, and MAJID purposefully and intentionally attempted to block
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`or otherwise delay the transition of stores from their control with the motivation to cause damage
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`to SANG, PARVAGA, ACE, and their clients.
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`76.
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`That RAY, TROY, and MAJID have caused millions of dollars in damage to
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`SANG, PARVAGA, ACE, and ACE’s clients.
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`77.
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`That the money RAY, TROY, and MAJID took from SANG, PARVAGA, ACE,
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`and ACE’s clients represented significant sums to the livelihood and well-being of hundreds of
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`innocent, unsuspecting families.
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`78.
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`That such damages include but are not limited to those highlighted in the
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`complaint herein.
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`79.
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`That should matter not be handled swiftly and urgently by this Court, that the
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`damage to SANG, PARVAGA, ACE, and their clients will be substantial and irreparable.
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`80.
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`That Plaintiffs reserve any and all rights to add, modify, remove, or otherwise
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`amend any and all allegations and claims made in the Complaint herein.
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`81.
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`That Plaintiffs have included some of the information currently available to them,
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`and reserve the right to add additional information, to corroborate and otherwise support their
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`causes of action below.
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`FIRST CAUSE OF ACTION
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`BREACH OF CONTRACT
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`82.
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`Plaintiffs repeat and reallege and incorporate herein each and every allegation set
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`forth above.
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`83.
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`That RAY and TROY had an agreement with ACE to launch online stores for
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`ACE and its clients.
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`84.
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`85.
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`That RAY and TROY failed to launch online stores for ACE and its clients.
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`That RAY and TROY had an agreement with ACE to operate online stores for
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`ACE and its clients.
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`86.
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`87.
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`That RAY and TROY failed to operate online stores for ACE and its clients.
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`That RAY and TROY had an agreement with ACE to manage online stores for
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`ACE and its clients.
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`88.
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`89.
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`That RAY and TROY failed to manage online stores for ACE and its clients.
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`That RAY and TROY had an agreement with ACE to monitor online stores for
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`ACE and its clients.
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`90.
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`91.
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`That RAY and TROY failed to monitor online stores for ACE and its clients.
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`That RAY and TROY had an agreement with ACE to file proper licensing for
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`online stores for ACE and its clients.
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`92.
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`That RAY and TROY failed to file proper licensing for online stores for ACE and
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`its clients.
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`93.
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`That RAY and TROY had an agreement to bill the online stores for the benefit of
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`ACE.
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`94.
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`That RAY and TROY failed to bill the online stores for the benefit of ACE.
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`95.
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`That DS had an agreement with ACE to launch online stores for ACE and its
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`clients.
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`96.
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`97.
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`clients.
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`98.
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`99.
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`clients.
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`That DS failed to launch online stores for ACE and its clients.
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`That DS had an agreement with ACE to operate online stores for ACE and its
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`That DS failed to operate online stores for ACE and its clients.
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`That DS had an agreement with ACE to manage online stores for ACE and its
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`100. That DS failed to manage online stores for ACE and its clients.
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`101. That DS had an agreement with ACE to monitor online stores for ACE and its
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`clients.
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`102. That DS failed to monitor online stores for ACE and its clients.
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`103. That DS had an agreement with ACE to file proper licensing for online stores for
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`ACE and its clients.
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`104. That DS failed to file proper licensing for online stores for ACE and its clients.
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`105. That DS had an agreement to bill the online stores for the benefit of ACE.
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`106. That DS failed to bill the online stores for the benefit of ACE.
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`107. That RAY, TROY, MAJID, and DS had an agreement to refund funds of SANG,
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`PARVAGA, ACE, and/or their clients.
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`108. That RAY, TROY, MAJID, and DS failed to refund funds of SANG, PARVAGA,
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`ACE, and/or their clients.
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`109. That as a direct and proximate result of Defendants’ actions, Plaintiffs have
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`suffered damages in excess of $15,000.00.
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`110. That the total damages to Plaintiffs are likely in excess of $5,000,000.00, with the
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`exact figure to be proven at trial.
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`111. That Plaintiffs have been required to retain the services of an attorney to
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`prosecute this action and are entitled to reasonable attorney’s fees and costs.
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`112. That the actions of Defendants were willful, wanton, malicious, and oppressive,
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`were undertaken with the intent to defraud, and justify the awarding of punitive damages.
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`SECOND CAUSE OF ACTION
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`CONVERSION
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`113. Plaintiffs repeat and reallege and incorporate herein each and every allegation set
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`forth above.
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`114. That Defendants RAY and TROY had control over funds of ACE and those
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`which were to have been provided to DS by ACE.
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`115. That Defendants MAJID and DS had control over funds of ACE.
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`116. That Defendants RAY and TROY had control over funds generated by online
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`stores belonging to SANG, PARVAGA, ACE, and their clients.
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`117. That Defendants RAY, TROY, MAJID, and DS took funds belonging to ACE,
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`SANG, PARVAGA, and their clients without authorization or approval.
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`118. That Defendants RAY and TROY took funds from online stores of SANG,
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`PARVAGA, ACE, and their clients without authorization or approval.
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`119. That said funds were used for the benefit of RAY, TROY, MAJID, and DS and
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`therefore were denied to SANG, PARVAGA, ACE, and their clients.
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`120. That RAY’s, TROY’s, MAJID’s, and DS’ actions of taking ACE funds meant for
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`ACE and its clients’ stores defied ACE and its clients’ property interests in said funds and led to
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`ACE and its clients being excluded from the use of the funds.
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`
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`121. That as a direct and proximate result of Defendants’ actions, Plaintiffs have
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`suffered damages in excess of $15,000.00.
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`122. That the total damages to Plaintiffs are likely in excess of $5,000,000.00, with the
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`exact figure to be proven at trial.
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`123. That Plaintiffs have been required to retain the services of an attorney to
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`prosecute this action and are entitled to reasonable attorney’s fees and costs.
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`124. That the actions of Defendants were willful, wanton, malicious, and oppressive,
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`were undertaken with the intent to defraud, and justify the awarding of punitive damages.
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`THIRD CAUSE OF ACTION
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`FRAUD IN THE INDUCEMENT
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`125.
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` Plaintiffs repeat and reallege and incorporate herein each and every allegation set
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`forth above.
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`126. That RAY, TROY, and MAJID knew or should have known that they were
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`inexperienced in the field of online stores and e-commerce.
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`127. That even through RAY, TROY, and MAJID were inexperienced in the field of
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`online stores and ecommerce, that they purposefully and intentionally misrepresented their skills
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`and abilities to SANG, PARVAGA, ACE, and ACE management.
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`128. That RAY, TROY, and MAJID misrepresented their knowledge, skills, and
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`abilities to trick and otherwise swindle SANG, PARVAGA, and ACE such that SANG,
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`PARVAGA, and ACE bring their clients’ online stores to RAY, TROY, and MAJID.
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`129. That RAY, TROY, and MAJID induced SANG, PARVAGA and ACE to engage
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`into agreements without any intention of actually launching, operating, managing, or otherwise
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`working on most of the stores belonging to SANG, PARVAGA, ACE, and their clients.
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`130. That RAY, TROY, and MAJID purposefully and intentionally induced SANG,
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`PARVAGA, and ACE to engage into relationships with them just so that RAY, TROY, and
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`MAJID can charge funds upfront for work to be done without any intention of doing the work
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`for which they were paid.
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`131. That Defendants RAY, TROY, MAJID, and DS had no intention of providing
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`services that they were promising to induce SANG, PARVAGA, and ACE to engage
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`Defendants’ services and provide them significant funds.
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`132. That Plaintiffs SANG, PARVAGA, and ACE did in fact rely detrimentally on
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`Defendants’ false representations and did provide Defendants with millions of dollars in cash,
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`compensation, and value.
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`133. That Plaintiffs SANG, PARVAGA, ACE, and their clients have not received
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`anything of value and certainly nothing close to the value of the millions of dollars provided to
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`Defendants RAY, TROY, MAJID, and DS.
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`134. That as a direct and proximate result of Defendants’ actions, Plaintiffs have
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`suffered damages in excess of $15,000.00.
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`135. That the total damages to Plaintiffs are likely in excess of $5,000,000.00, with the
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`exact figure to be proven at trial.
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`136. That Plaintiffs have been required to retain the services of an attorney to
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`prosecute this action and are entitled to reasonable attorney’s fees and costs.
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`137. That the actions of Defendants were willful, wanton, malicious, and oppressive,
`
`were undertaken with the intent to defraud, and justify the awarding of punitive damages.
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`Page 16 of 50
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`FOURTH CAUSE OF ACTION
`
`FRAUD
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`
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`138. That Plaintiffs repeat and reallege and incorporate herein each and every
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`allegation set forth above.
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`139. That Defendants RAY, TROY, and MAJID purposefully and intentionally
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`charged ACE for hundreds of stores without ever launching and servicing most of the stores.
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`140. That RAY, TROY, and MAJID purposefully and intentionally used the online
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`stores belonging to SANG, PARVAGA, ACE, and their clients to improperly and illegally obtain
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`funds from unsuspecting third party consumers.
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`141. That RAY, TROY, and MAJID purposefully and intentionally used the online
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`stores belonging to SANG, PARVAGA, ACE, and their clients to obtain free shipping from
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`vendors for items that would not have qualified for free shipping but for RAY, TROY, and
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`MAJID’s improper, illegal, and unethical conduct with such third parties.
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`142. That RAY, TROY, and MAJID purposefully and intentionally used the online
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`stores belonging to SANG, PARVAGA, ACE, and their clients to not pay the proper taxes to
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`various jurisdictions including state and federal taxation authorities.
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`143. That RAY, TROY, and MAJID purposefully and intentionally charged various