throbber
INDEX NO. 651715/2013
`FILED: NEW YORK COUNTY CLERK 05/10/2013
`Case 1:13-cv-03905-LGS-FM Document 8-1 Filed 06/21/13 Page 1 of 6
`NYSCEF DOC. NO. 1
`RECEIVED NYSCEF: 05/10/2013
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`J. KRISS and MICHAEL EJEKAM alone and for BAYROCK MERRIMAC LLC; INDEX NO.
`BAYROCK GROUP LLC, BAYROCK SPRING STREET LLC; BAYROCK
`WHITESTONE LLC; and BAYROCK CAMELBACK LLC; and E/O ERNEST
`and E/OJUDIT GOTTDIENER; ERVIN TAUSKY; and SUAN INVESTMENTS
`Plaintiffs,
`
`v.
`
`SUMMONS
`BAYROCK GROUP LLC; TEVFIK ARIF; JULIUS SCHWARZ; FELIX
`WITH
`SATTER; BRIAN HALBERG; SALVATORE LAURIA; ALEX SALOMON;
`JERRY WEINRICH; SALOMON & CO. PC; AKERMAN SENTERFITT LLP; NOTICE
`MARTIN DOMB; CRAIG BROWN; DUVAL & STACHENFELD LLP;
`BRUCE STACHENFELD; DAVID GRANIN; NIXON PEABODY LLP;
`ADAM GILBERT; ROBERTS & HOLLAND LLP; ELLIOT PISEM;
`MICHAEL SAMUEL; MEL DOGAN; BAYROCK SPRING STREET LLC;
`JOHN DOES 1-100; BAYROCK WHITESTONE LLC; BAYROCK
`CAMELBACK LLC; BAYROCK MERRIMAC LLC; BAYROCK
`GROUP INC.TAMIR SAPIR; ALEX SAPIR; “SAPIR DOES” 1-100;
`Group I Defendants
`
`WALTER SAURACK; SATTERLEE STEPHENS BURKE & BURKE LLP;
`KELLY MOORE; MORGAN LEWIS & BOCKIUS LLP; NADER
`MOBARGHA; MICHAEL BEYS; BEYS STEIN & MOBARGHA LLP;
`Group II Defendants
`
`TODD KAMINSKY;
`Group III Defendants
`
`CIM GROUP; ISTAR FINANCIAL; “LENDER INVESTOR DOES” 1-100;
`DONALD TRUMP; IVANKA TRUMP; “TRUMP DOES” 1-100;
`NATIONAL UNION FIRE INSURANCE CO. OF PITTSBURGH, PA.;
`Group IV Defendants
`
`
`DEFENDANTS PLEASE TAKE NOTICE YOU ARE HEREBY SUMMONED TO APPEAR
`in this action by serving a notice of appearance on Counsel for Plaintiffs, address below, within
`20 days after service of this summons (not counting the day of service), or within 30 days after
`service is complete if the summons is not delivered personally to you within New York State.
`May 10, 2013
`/s/ Frederick M. Oberlander, Esq.
`
`The Law Office of Frederick M. Oberlander, P.C.
`
`Counsel for Plaintiffs
`
`28 Sycamore Lane (Post Office Box 1870)
`
`Montauk, New York 11954
`Tel 212-826-0357 Fax 212-202-7624 Email fred55@aol.com
`
`
`/s/ Richard E. Lerner, Esq.
`
`The Law Office of Richard E. Lerner, P.C.
`
`Co-Counsel
`
`

`
`Case 1:13-cv-03905-LGS-FM Document 8-1 Filed 06/21/13 Page 2 of 6
`
`
`NOTICE
`
`
`
`Plaintiffs seek relief against those directly and vicariously responsible for the perpetration
`of perhaps a billion dollars or more of fraud based on the illegal concealment of Felix Sater’s
`1998 $40 million federal racketeering conviction, and subsequent 2009 sentencing, as well as
`related and other unrelated relief, and declaratory relief against those persons, primarily financial
`institution, insofar as to affix by liquidating judgment thereof such liability is owed to them.
`
`* * * * *
`
` “Bayrock,” as used herein, refers to that certain association of juridical entities including,
`for example and without limitation, Bayrock Group LLC, Bayrock Camelback LLC, Bayrock
`Whitestone LLC, Bayrock Spring Street LLC, and Bayrock Merrimac LLC, in the last ten years
`variously engaged in the businesses of financial institution fraud, tax fraud, partnership fraud,
`insurance fraud, litigation fraud, bankruptcy fraud, mail fraud, wire fraud, money laundering,
`human trafficking, child prostitution, statutory rape, and, on occasion, real estate.
`
`One of the overarching, dominant themes of those Bayrock lines of business has been the
`fraudulent concealment of the substantial degree to which it was owned directly or equitably by
`Felix Sater, who was represented at various times at least during the period 2002 to 2008 to be its
`Chief Operating Officer and at times as its Managing Director.
`
`Another overarching, dominant theme of Bayrock’s lines has been the fraudulent
`concealment of Felix Sater’s conviction for racketeering, to which he secretly pled guilty in
`1998, admitting to participating in the operation of a pump-and-dump stock fraud, along with
`members of Russian and Mafia organized crime, which defrauded investors, many of them
`senior citizens, including Holocaust survivors, of at a minimum $40,000,000, now in today’s
`dollars some $150,000,000 of stolen wealth as measured by the “well managed account” theory.
`
`The Estates of Ernest and Judit Gottdiener; Ervin Tausky, a natural person, and Suan
`Investments, a Gottdiener family holding company, are some of those victims, survivors of the
`Nazi extermination of the Jews of Hungary and federally protected crime victims of Mr. Sater’s
`racketeering, as such his creditors. They were defrauded of their rights to restitution and, because
`the government illegally concealed Sater’s entire case, their rights to sue him. The Gottdieners
`claim damages for the fraud on them against everyone responsible for the 15-year delay and
`deprivation of their civil rights.
`
`Insofar as Sater used Bayrock as a personal piggybank to skim millions upon millions of
`its assets and hide them out of the reach (for now) of these and all the other hundreds if not
`thousands of victims to whom he now is liable over $500,000,000 in RICO damages, and would
`not have been able to do so without the facilitation of his concealment frauds by others, the
`Gottdieners sue all those for the damage they caused.
`
`

`
`Case 1:13-cv-03905-LGS-FM Document 8-1 Filed 06/21/13 Page 3 of 6
`
`Among those are corrupt attorneys who used fraudulent and sham court processes to hide
`Sater and his frauds for their own gain, as many of them did so with the specific intent, inter alia,
`of raking in fees from him, essentially taking the Gottdiener’s and all the others’ money for
`themselves by keeping it out of the hands of the victims, where it should have gone; they are
`sued, inter alia, for vicarious liability of all damages caused and for forfeiture of all such fees.
`
`Plaintiffs seek relief against those directly and vicariously responsible for the fraud in the
`three years of litigation on dockets 98-CR-1101, 12-MC-150, and 12-MC-557, EDNY, and 10-
`CV-3959, SDNY, such litigation was in bad faith, purportedly to protect the safety of Sater by
`maintaining under legal seal and closure information of and concerning the nature and existence
`of his conviction, cooperation and sentence which had in fact been public for up to a decade, as
`was known to those defendants involved, that had in fact never been legally sealed, as was
`known to those defendants involved, where there was no actual threat and in fact presentation of
`evidence of actual threat later claimed was a pure fraud on the court including by subornation,
`such fraud actionable statutorily as well as at common law. Inter alia, insofar as they committed
`divers frauds and deceits in the context of those litigations, they are sued under Jud. Law §487.
`
`Kriss and Ejekam are natural persons who claim damages, including without limitation in
`respect of their rights as members and creditors of, as to Kriss, Bayrock Group LLC, Bayrock
`Spring Street, LLC, Bayrock Whitestone LLC, Bayrock Camelback LLC, and Bayrock
`Merrimac, as to Ejekam Bayrock Spring Street LLC and Bayrock Whitestone LLC. Kriss and
`Ejekam also claim damages derivatively, in behalf of those same limited liability companies.
`
`Finally, as Sater admitted at his sentencing he knew no banks would lend to Bayrock if
`they knew about his concealed conviction, a judicial estoppel and admission against penal
`interest, lenders and investors who were fraudulently induced to provide $1,000,000,000 or so to
`Bayrock by this concealment ought to get their money back, so they are sued in declaratory
`judgment to fix the liability of Bayrock and all those liable to them through Bayrock to them.
`
`All defendants except as noted are sued for all liability, that is, for example only, Kelly
`Moore, who stood in Sater’s sentencing as his attorney knowing it was illegally hidden, hearing
`him admit that he had been using that illegal concealment to perpetrate bank fraud, and without
`privilege to do so committed fraud and other actionable wrongs in maintaining sham litigation to
`stop those who learned of this from revealing it for years, thus knowingly facilitating the cover-
`ups, shall expect to have plenary liability asserted against her by every Plaintiff in every theory
`for every cause in the scope of the overarching conspiracy. It is the express intent of Plaintiffs to
`assert all liability to the fullest scope of the state law vicarious liability equivalent of civil federal
`Pinkerton liability against everyone participating in any identifiable and well-pled conspiracy.
`Those who thought nothing of helping Sater and his co-conspirators defraud, the littlest senior
`citizens and Holocaust survivors or the biggest banks and lenders, who thought nothing of
`helping him and others steal those victims’ money, must be made to pay with their own.
`
`

`
`Case 1:13-cv-03905-LGS-FM Document 8-1 Filed 06/21/13 Page 4 of 6
`
`And, in that Bayrock was used to commit, or was the mediating agent as, or the victim of,
`various and divers other wrongs for which Plaintiffs have standing to sue, Bayrock itself as well
`as those in conspiracy or aid and abettance therewith, will be claimed liable for such, including
`without limitation fraud on partners as well as third parties, breach of contract.
`
`The above notice is a courtesy only; it is not limiting in any way the claims to be
`asserted. It is certainly accurate, but is not limiting. Plaintiffs reserve the right to make any and
`all claims in which the minimal notice of simply listing the causes of action would enable them
`to make.
`
`In addition, Plaintiffs seek relief for causes of action in and related to the underlying facts
`of the above but where liability is or may be predicated on less than the scienter of intent or
`recklessness, thus claiming in gross negligence, negligence, and breach of fiduciary duty; and
`where liability is or may be predicated on contract or quasi-contract, for example and without
`limitation, where one defendant shall have failed to perform contractual obligations to Plaintiff,
`causing economic injury, by reason of his participation with another defendant in fraud, whether
`directed at a Plaintiff or at a third party but proximately injuring Plaintiff, thus entitling Plaintiff
`to claim in contract against the one and in fraud against the other.
`
`Plaintiffs, demanding $1billion in damages, and all other relief as is just and proper in
`law or equity, will allege the following and related state law causes of action in the complaint,
`whether concomitant liability be found directly, vicariously, or by reason of aid and abettance,
`
`Group I Defendants:
`
`Liability in fraud, negligence, gross negligence, recklessness, quasi-contract, conversion,
`breach of fiduciary duty, negligent misrepresentation, Jud. Law §487, disgorgement, restitution,
`constructive trust, defamation, contribution, indemnification, state securities fraud, breach of
`contract, rescission, declaratory relief, tortious interference, unjust enrichment, prima facie tort,
`trespass to chattel, interference with contract, abuse of process, and malicious prosecution.
`
`Group II Defendants:
`
`Liability in any or every theory, cause, or right of action listed under Group I Defendants,
`whether direct or vicarious, as well as liability under Judiciary Law §487 as herein.
`
`Group III Defendants:
`
`Liability in Jud. Law §487.
`
`Group IV Defendants:
`
`Declaratory relief, as to National Union including for declarations of coverage and as to
`all declarations of liability of all those in respect of which Kriss and Ejekam have the direct or
`derivate standing to assert and adjudicate as due such defendants from other defendants.
`
`

`
`Case 1:13-cv-03905-LGS-FM Document 8-1 Filed 06/21/13 Page 5 of 6
`
`WHEREBY, DEMAND IS HEREBY MADE OF SUCH DEFENDANTS FOR $1
`BILLION. SHOULD DEFENDANTS NOT APPEAR, JUDGMENT MAY BE ENTERED
`IN DEFAULT IN THE AMOUNT SPECIFIED, OR SUCH AS MAY BE PROVEN.
`
`
`
`VENUE
`
`Plaintiffs designate New York County as the place of trial. The basis of this designation
`
`is CPLR § 503(a), to wit, Plaintiff J. Kriss now, at time of commencement, resides in the county.
`
`AKERMAN SENTERFITT LLP
`MARTIN DOMB
`Martin Domb, Esq.
`Akerman Senterfitt LLP
`335 Madison Avenue, 26th Floor
`New York, NY 10017
`212-880-3800
`martin.domb@akerman.com
`
`NATIONAL UNION FIRE INS. CO.
`Alexander S. Lorenzo Esq.
`Alston & Bird LLP
`90 Park Avenue
`New York, NY 10016
`212-210-9528
`alexander.lorenzo@alston.com
`
`FELIX SATER
`NADER MOBARGHA
`MICHAEL BEYS
`Nader Mobargha Esq.
`Beys, Stein & Mobargha LLP
`405 Lexington Avenue 7th Floor
`New York, NY 10174
`212-755-3603
`nmobargha@beysstein.com
`
`
`
`
`
`DEFENDANTS
`
`DUVAL & STACHENFELD LLP
`BRUCE M. STACHENFELD
`CRAIG L. BROWN
`Bruce M. Stachenfeld
`Duval & Stachenfeld LLP
`555 Madison Avenue 6th Floor
`New York, NY 10022
`212-883-1700
`bstachenfeld@dsllp.com
`
`NIXON PEABODY
`ADAM GILBERT
`Adam Gilbert, Esq.
`Nixon Peabody
`437 Madison Avenue
`New York, NY 10022
`212-940-3000
`agilbert@nixonpeabody.com
`
`ROBERTS & HOLLAND LLP
`ELLIOT PISEM
`Elliot Pisem, Esq.
`Roberts & Holland LLP
`825 Eight Avenue, 37th Floor
`New York, NY 10019
`212-903-8700
`episem@rhtax.com
`
`
`
`

`
`Case 1:13-cv-03905-LGS-FM Document 8-1 Filed 06/21/13 Page 6 of 6
`
`ISTAR FINANCIAL
`1114 Avenue of the Americas
`New York, NY 10036
`(212) 930-9400
`
`DONALD TRUMP
`IVANKA TRUMP
`The Trump Organization
`Trump Tower
`725 Fifth Avenue
`New York, NY 10022
`212-832-2000
`
`MEL DOGAN
`Mel Dogan, Esq.
`Dogan & Associates
`5 East 59th Street, Suite 750
`New York, NY 10022
`212-755-1550
`
`V. DAVID GRANIN
`V. David Granin
`445 Eastgate Road
`Ridgewood, NJ 07450
`201-652-9091
`
`BAYROCK GROUP INC.
`The Company Corporation
`2711 Centerville Road Suite 400
`Wilmington, Del 19808
`For Delivery to File #4385369
`
`MICHAEL SAMUEL
`Michael Samuel
`1000 South Pointe Drive
`MTH #1
`Miami Beach, FL 33139
`
`SALVATORE LAURIA
`Salvatore Lauria
`91 Georgetown Road
`Weston, CT 06883
`
`SALOMON & COMPANY PC
`ALEX SALOMON
`JERRY WEINRICH
`Stephen Jacobs, Esq.
`Landman Corsi Ballaine & Ford PC
`120 Broadway
`New York, NY 10271
`(212) 238-4810
`sjacobs@lcbf.com
`
`TEVFIK ARIF
`JULIUS SCHWARZ
`BRIAN HALBERG
`BAYROCK GROUP LLC
`BAYROCK WHITESTONE LLC
`BAYROCK SPRING STREET LLC
`BAYROCK CAMELBACK LLC
`BAYROCK MERRIMAC LLC
`WALTER SAURACK
`Walter Saurack, Esq.
`Satterlee Stephens Burke & Burke LLP
`230 Park Avenue, Suite 1130
`New York, New York 10169
`(212) 404-8703
`wsaurack@ssbb.com
`
`KELLY MOORE
`Morgan Lewis & Bockius LLP
`101 Park Avenue
`New York, NY 10178-0060
`212-309-6000
`
`TODD KAMINSKY
`United States Attorneys Office
`Eastern District of New York
`271 Cadman Plaza East
`Brooklyn, NY 11201
`
`CIM GROUP
`515 Madison Avenue
`New York, NY 10022
`646-783-4602

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