Electronically FILED by Superior Court of California, County of Los Angeles on 08/12/2019 05:50 PM Sherri R. Carter, Executive Officer/Clerk of Court, by M. Mariscal,Deputy Clerk 19SMCV01425 Assigned for all purposes to: Santa Monica Courthouse, Judicial Officer: Mark Young 1 2 3 4 5 6 DAVID E. ROSEN (SBN 155385) drosen@murphyrosen.com MURPHY ROSEN LLP 100 Wilshire Boulevard, Suite 1300 Santa Monica, California 90401-1142 Telephone: (310) 899-3300 Facsimile: (310) 399-7201 Attorneys for Plaintiffs Colette Pelissier, Brigham Field and Malibu Media, LLC 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 FOR THE COUNTY OF LOS ANGELES – WEST DISTRICT 10 MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 11 12 13 14 15 16 17 18 COLETTE PELISSIER, an individual, BRIGHAM FIELD, an individual, and MALIBU MEDIA, LLC, a California limited liability company ) ) ) ) ) Plaintiffs, ) ) vs. ) ) EDGAR SARGSYAN, an individual, ART ) KALANTAR, an individual, HENRIK ) MOSESI, an individual, PILLAR LAW ) GROUP, a professional law corporation, and ) Does 1 through 10, inclusive, ) ) Defendants. ) ) CASE NO. __________ COMPLAINT FOR: 1. 2. 3. 4. 5. 6. Rescission Conversion Breach of Fiduciary Duty Damages under Penal Code Fraud/misrepresentation Quiet title REQUEST FOR JURY TRIAL 19 20 21 22 23 24 25 26 27 28 PRINTED ON RECYCLED PAPER COMPLAINT 1 2 Plaintiffs Colette Pelissier, Brigham Field and Malibu Media, LLC (“Plaintiffs”) hereby alleged as follows. INTRODUCTION 3 MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 4 1. This case concerns the lengths to which an attorney has gone to steal 5 from, and defraud, a client and persons affiliated with that client, including forging a 6 number of documents and failing to turn over funds collected on behalf of the client. 7 The egregious conduct culminated in recording a fraudulent deed of trust against a 8 residential lot in Malibu, knowing the owners were in the process of financing the 9 property, and in order to hold the property hostage and extract a ransom for releasing 10 the illegal lien. By this action, Plaintiffs seek to recover the damages caused by this 11 deplorable conduct, as well as an award of punitive damages sufficient to punish and 12 deter such conduct in the future. PARTIES 13 14 15 16 17 18 2. Plaintiff Colette Pelissier (“Pelissier”) is, and at all material times has been, a resident of the State of California, County of Los Angeles. 3. Plaintiff Brigham Field (“Field”) is, and at all material times has been, a resident of the State of California, County of Los Angeles. 4. Plaintiff Malibu Media, LLC (“Malibu Media”) is a limited liability 19 company duly organized and existing under the laws of the State of California and 20 doing business in the County of Los Angeles. Pelissier in the sole Manager and 21 Member of Malibu Media. 22 5. Plaintiffs are informed and believe that defendant Edgar Sargsyan 23 (“Sargsyan”) is, and at all material times has been, a resident of the State of California, 24 County of Los Angeles. 25 6. Plaintiffs are informed and believe that defendant Pillar Law Group 26 (“PLG”) is a professional law corporation duly existing under the laws of the State of 27 California and doing business in the State of California, County of Los Angeles. 28 -1COMPLAINT PRINTED ON RECYCLED PAPER 1 Plaintiffs are informed and believe that Sargsyan is the Chief Executive Officer and 2 sole director of PLG. 3 (“Mosesi”) is, and at all material times has been, a resident of the State of California, 5 County of Los Angeles. Mosesi is an attorney licensed to practice law in California 6 and was represented by Sargsyan to be a partner at PLG. 8. Plaintiffs are informed and believe that defendant Art Kalantar 8 (“Kalantar”) is, and at all material times has been, a resident of the State of California, 9 County of Los Angeles. Kalantar is an attorney licensed to practice law in California 10 11 MURPHY ROSEN LLP Plaintiffs are informed and believe that defendant Henrik Mosesi 4 7 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 7. and was represented by Sargsyan to be a partner at PLG. 9. Plaintiffs are currently unaware of the true names and capacities of the 12 defendants sued in this complaint as DOES 1 through 10, and sue these defendants by 13 these fictitious names. Plaintiffs will amend this complaint to allege their true names 14 and capacities when ascertained. References herein to defendants include the 15 defendants named herein as DOES 1-10. FACTS COMMON TO ALL COUNTS 16 17 10. Pelissier and Field are husband and wife and own real property (a vacant 18 lot) located at 11824 Ellice St., Malibu, California 90265 (“the Property”). Plaintiffs 19 purchased the Property in March 2014. 20 11. In or around October 2015, Sargsyan approached Pelissier and Field 21 about renting their home for a dinner party. Sargsyan told Pelissier and Field that he 22 was a lawyer, and was a partner at PLG, a California law firm. In subsequent meetings 23 and discussions, Sargsyan questioned Pelissier and Field about their businesses and real 24 estate holdings, and solicited them to retain him and PLG to provide legal services to 25 their various business and ventures. At the time of these meetings and discussions, 26 Pelissier and Field assumed that Sargsyan was, in fact, an attorney duly licensed to 27 practice law in California. Pelissier and Field learned much later that Sargsyan did not 28 -2COMPLAINT PRINTED ON RECYCLED PAPER 1 have a license to practice law at the time of these meetings and discussions, and did not 2 obtain his license to practice law until May 2016. 3 MURPHY ROSEN LLP Among the legal work that Sargsyan solicited before he was licensed to 4 practice law was work for Malibu Media. Malibu Media is a media company and was 5 engaged in substantial copyright litigation at the time. Malibu Media had filed well 6 over 100 cases and was seeking millions of dollars in damages. Sargsyan convinced 7 Malibu Media to change its counsel to him and PLG, and to pay him and PLG (a) 50% 8 of all amounts recovered in the lawsuits and (b) all expenses incurred by PLG in 9 connection with the lawsuits. 10 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 12. 13. PLG and Sargsyan represented Malibu Media in connection with the 11 copyright litigation for approximately six months. During that time period, PLG and 12 Sargsyan recovered approximately $2.4 million in the copyright lawsuits. Those funds 13 should have been deposited into PLG’s client trust account on behalf of Malibu Media 14 for distribution to Malibu Media. Yet PLG and Sargsyan only remitted $40,000 to 15 Malibu Media. Malibu Media is informed and believes that PLG inappropriately 16 transferred the funds rightfully belonging to Malibu Media to, or for the benefit of, 17 Sargsyan, Mosesi and Kalantar. 18 14. Sargsyan also represented to Pelissier and Field that he was a real estate 19 developer and could develop the Property within eighteen to twenty-four months. 20 Sargsyan promised that he would pay all costs relating to the Property and other 21 maintenance fees. In return, Sargsyan proposed that the proceeds from the sale of the 22 developed Property be split. The parties entered into an agreement to this effect on or 23 about November 16, 2015. 24 15. In furtherance of this agreement for development of the Property, 25 Pelissier and Field transferred title to the Property to California’s Best Holdings, LLC 26 (Sargsyan’s company) and Colette Properties, LLC (Pelissier’s company). However, 27 one of the conditions of this agreement was that the new title holders of the Property 28 must pay off a second mortgage of $2 million secured against the Property no later than -3COMPLAINT PRINTED ON RECYCLED PAPER MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 1 December 1, 2016, something Sargsyan represented he could accomplish. If the $2 2 million loan was not paid off by that date, California’s Best Holdings, LLC and Colette 3 Properties, LLC would forfeit title and ownership would revert back to Pelissier and 4 Field. Later, California’s Best Holdings, LLC’s interest in the Property was transferred 5 to Regdalin Properties, LLC (“Regdalin”), another company owned and controlled by 6 Sargsyan. 7 16. Sometime before the December 1, 2016 deadline to pay off the second 8 mortgage, knowing that he was unable to do so, and in a fraudulent and malicious 9 effort to avoid the automatic forfeiture, Sargsyan forged Pelissier’s signature on a grant 10 deed purporting to convey the Property from Colette Properties, LLC and Regdalin, as 11 joint owners, to Regdalin as sole owner. The forged deed states that the transfer was a 12 “gift” to Regdalin. Though the forged grant deed was purportedly signed by Sargsyan 13 and Pelissier on July 27, 2016, the supposed notarization date on the grant deed in 14 December 13, 2016 – almost five months after the forged signature. 15 17. After forging Pelissier’s signature on the grant deed and purporting to 16 transfer title solely into the name of Regdalin, Sargsyan caused the Property to be listed 17 for sale for $7.5 million. 18 18. On August 22, 2017, after discovering the fraudulent conveyance, 19 Pelissier and Field filed a lawsuit against Sargsyan, Regdalin and others seeking, 20 among other things, to quiet title to the Property. On March 27, 2018, the Court 21 entered an Order quieting title to the Property in favor of Pelissier and Field. 22 19. In connection with that quiet title action, Sargsyan perpetrated yet 23 another fraud on Pelissier and Field. Specifically, the parties had entered into a 24 Settlement Agreement pursuant to which Sargsyan stipulated that title to the Property 25 would be quieted in favor of Pelissier and Field. In exchange, Pelissier and Field 26 agreed that if sufficient funds were raised for the development of the Property, the 27 parties would move forward with a profit share arrangement and would allow the funds 28 to be secured by a deed of trust on the Property. -4COMPLAINT PRINTED ON RECYCLED PAPER MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 1 20. In March 2018, Sargsyan sent one of his associates to the home of 2 Pelissier and Field to sign the Settlement Agreement. When Pelissier and Field signed 3 the Agreement, they were not provided a copy but were told a copy would be sent to 4 them. It never was. Later, Pelissier and Field learned that Sargsyan had replaced the 5 first two pages of the Settlement Agreement with new and different pages, creating the 6 illusion that Pelissier and Field and agreed to something they had not agreed to. 7 Sargsyan then used that fake Settlement Agreement as the basis to record a deed of 8 trust against the Property. Sargsyan is now using that falsified deed of trust to interfere 9 with the efforts of Pelissier and Field to refinance or develop the Property. 10 FIRST CAUSE OF ACTION 11 (Rescission) 12 (By all Plaintiffs against Defendants Sargsyan and PLG) 13 14 15 21. Plaintiffs reallege and incorporate by reference paragraph 1 through 19 above, as though fully set forth herein. 22. In connection with the quiet title action, the parties had entered into a 16 Settlement Agreement pursuant to which Sargsyan stipulated that title to the Property 17 would be quieted in favor of Pelissier and Field in exchange for Pelissier’s and Field’s 18 agreement that if sufficient funds were raised for the development of the Property, the 19 parties would move forward with a profit share arrangement and would allow the funds 20 to be secured by a deed of trust on the Property. Sargsyan then replaced the first two 21 pages of the Settlement Agreement with new and different pages, creating the illusion 22 that Pelissier and Field and agreed to something they had not agreed to. Sargsyan 23 never intended to perform under the Settlement Agreement, but instead always 24 intended to induce Pelissier and Field to sign a settlement agreement so that he could 25 improperly re-assert an ownership interest in the Property. 26 23. Based on Sargsyan’s conduct in inducing Plaintiffs to sign the Settlement 27 Agreement – whether said conduct was intentional, negligent or based on a mistake of 28 fact – and Sargsyan’s further conduct in unilaterally and without consent changing and -5COMPLAINT PRINTED ON RECYCLED PAPER 1 falsifying the terms of the Settlement Agreement, Plaintiffs are entitled to obtain, and 2 hereby seek, rescission of the Settlement Agreement. MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 3 24. Service of this pleading constitutes notice of rescission of the Settlement 4 Agreement pursuant to California Civil Code section 1691. Plaintiffs hereby offer to 5 return the consideration and benefits received from the Settlement Agreement, and also 6 demand restitution of all consideration given for the Agreement, including but not 7 limited to, withdrawal of the deed of trust recorded against the Property. Plaintiffs 8 further seek to recover all damages allowable in connection with this claim for 9 rescission, in an amount to be proven at trial. 10 SECOND CAUSE OF ACTION 11 (Conversion) 12 (By Malibu Media against all Defendants) 13 14 15 25. Plaintiffs reallege and incorporate by reference paragraph 1 through 19 above, as though fully set forth herein. 26. PLG and Sargsyan represented Malibu Media in connection with more 16 than 100 copyright lawsuits. During that time period, PLG and Sargsyan charged 17 Malibu Media recovered approximately $2.4 million in the copyright lawsuits. Those 18 funds should have been deposited into PLG’s trust account for the benefit of Malibu 19 Media and for distribution to Malibu Media. Yet PLG and Sargsyan only remitted 20 $40,000 to Malibu Media. Malibu Media is informed and believes that PLG 21 inappropriately absconded with the remainder of the funds belonging to Malibu Media 22 and being held in trust for Malibu Media. Malibu Media is informed and believes that 23 these stolen funds were distributed to, or for the benefit of, Sargsyan, Mosesi and 24 Kalantar. 25 27. The funds in the Malibu Media trust account belonged to Malibu Media, 26 and Malibu Media had the right to possess those funds. By intentionally and 27 substantially interfering with Malibu Media’s right to possess these funds, Defendants, 28 -6COMPLAINT PRINTED ON RECYCLED PAPER 1 and each of them, has wrongfully converted those funds belonging to Malibu Media 2 and has refused to return same. 28. 3 4 proven at trial, which amount is in excess of $1 million. 29. 5 MURPHY ROSEN LLP In doing the acts herein alleged, Defendants acted with recklessness, 6 oppression, fraud, and/or malice, and Plaintiff is, therefore, also entitled to exemplary 7 and punitive damages according to proof. 8 THIRD CAUSE OF ACTION 9 (Breach of Fiduciary Duty) 10 (By Malibu Media against all Defendants) 30. 11 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 Plaintiff was directly harmed by Defendants’ actions in an amount to be 12 Plaintiffs reallege and incorporate by reference paragraph 1 through 19 above, as though fully set forth herein. 31. 13 As counsel for Malibu Media, Defendants, and each of them, owed 14 fiduciary duties to Malibu Media. These fiduciary duties included the duty to properly 15 manage and protect the funds belonging to Malibu Media. 32. 16 Defendants, and each of them, breached this duty by failing and refusing 17 to remit to Malibu Media funds recovered in litigation on behalf of Malibu Media and 18 failing and refusing to maintain those funds in a client trust account. Instead, some or 19 all of those funds were used for Defendants’ own purposes. 33. 20 21 As a result of this breach, Malibu Media has been damaged in an amount to be proven at trial, which amount is in excess of $1 million. 34. 22 In doing the acts herein alleged, Defendants acted with recklessness, 23 oppression, fraud, and/or malice, and Plaintiff is, therefore, also entitled to exemplary 24 and punitive damages according to proof. 25 /// 26 /// 27 /// 28 /// -7COMPLAINT PRINTED ON RECYCLED PAPER 1 FOURTH CAUSE OF ACTION 2 (Damages under Penal Code §496(c)) 3 (By Malibu Media against Sargsyan) 4 5 6 and 25 above, as though fully set forth herein. 36. As set forth above, Sargsyan has wrongfully obtained possession of the proceeds of litigation belonging to Malibu Media through conduct that constitutes theft 8 under California Penal Code §496. 10 11 MURPHY ROSEN LLP Plaintiffs reallege and incorporate by reference paragraph 1 through 19 7 9 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 35. 37. As a result of this conduct, Malibu Media has been damaged in an amount to be proven at trial, which amount exceeds $1 million. 38. Pursuant to California Penal Code §496(c), Malibu Media is entitled to an 12 award of treble damages and an award of reasonable costs and attorneys’ fees incurred 13 in bringing this action. 14 FIFTH CAUSE OF ACTION 15 (Intentional Misrepresentation/Fraud) 16 (By all Plaintiffs against Sargsyan) 17 18 19 39. Plaintiffs reallege and incorporate by reference paragraph 1 through 19 above, as though fully set forth herein. 40. As set forth above, Sargsyan represented to Plaintiffs, among other 20 things, (a) that, at the time, he was an attorney duly licensed to practice law in 21 California, (b) that he and his law firm would remit to Malibu Media all sums 22 recovered in copyright litigation for Malibu Media less fees and costs; (c) that if 23 Sargsyan and his entities did not raise sufficient funds to pay off the $2 million second 24 mortgage on the Property, the Property would revert back to Pelissier and Field; and (d) 25 that he and Plaintiffs had agreed to the terms of a Settlement Agreement. 26 41. Plaintiffs are informed and believe that each of these representations were 27 false when made. Sargsyan was not a licensed attorney at the time he solicited 28 Plaintiffs to become clients; Sargsyan did not intend to remit to Malibu Media all sums -8COMPLAINT PRINTED ON RECYCLED PAPER 1 recovered in copyright litigation for Malibu Media less fees and costs; Sargsyan did not 2 intend to revert title to the Property back into the names of Pelissier and Field when he 3 did not raise the money he represented he would raise; and Sargsyan never was in 4 agreement with the settlement proposed. Instead, Sargsyan at all times intended to 5 defraud Pelissier and Field out of their interest in the Property and intended to 6 misappropriate the funds belonging to Malibu Media. MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 7 42. Plaintiffs were unaware of the falsity of the Sargsyan’s representations 8 and his fraudulent intent, and relied on the representations (and silence) by, among 9 other things, entering into the agreement to allow Sargsyan to develop the Property, 10 signing the Settlement Agreement and retaining PLC to represent Malibu Media in the 11 copyright litigation. 12 13 14 43. As a result of the intentional misrepresentations and fraud by Sargsyan, Plaintiffs have been damaged in an amount to be proven at trial. 44. In doing the acts herein alleged, Sargsyan acted with recklessness, 15 oppression, fraud, and/or malice, and Plaintiffs are, therefore, also entitled to 16 exemplary and punitive damages according to proof. 17 SIXTH CAUSE OF ACTION 18 (Quiet Title) 19 (By Pelissier and Field against Sargsyan) 20 21 22 45. Plaintiffs reallege and incorporate by reference paragraph 1 through 19 above, as though fully set forth herein. 46. Pelissier and Field are, and at all material times have been, the legal and 23 rightful owners of the Property, legally described as Lot 5 of Track No. 4483 in the 24 County of Ventura, State of California, as per map recorded in Book 146 Page(s) 19 25 through 22 inclusive of Maps, in the office of the County Recorder of said County. 26 27 47. Sargsyan claims an interest in the Property adverse to the interest of Pelissier and Field by virtue of the deed of trust recorded against the Property by 28 -9COMPLAINT PRINTED ON RECYCLED PAPER 1 Sargsyan on October 4, 2018 as Document No. 20181004-00113018-0 (“the Deed of 2 Trust”). 3 48. For the reasons set forth above, Sargsyan’s claim of interest is based on 4 fraud and other wrongful conduct. He has no right to any claim of title or interest in or 5 to the Property, legal or equitable. 6 49. Pelissier and Field seek a declaration that the Deed of Trust is invalid and 7 of no force and effect, and that Sargsyan has no ownership or interest, legal or 8 equitable in the Property. PRAYER FOR RELIEF MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 9 10 WHEREFORE, Pelissier prays for judgment as follows: 11 1. For compensatory damages in an amount to be proven at trial; 12 2. For treble damages pursuant to California Penal Code section 496(c); 13 3. For punitive damages in an amount to be proven at trial; 14 4. For an Order rescinding the Settlement Agreement; 15 5. For an Order that the Deed of Trust is invalid and of no force and effect, 16 and that Sargsyan has no ownership or interest, legal or equitable, in the Property; 17 6. For an award of reasonable attorney’s fees and costs; and 18 7. For such other and further relief as may be just and proper. 19 20 DATED: August 12, 2019 MURPHY ROSEN LLP 21 22 By: David E. Rosen Attorneys for Plaintiffs Colette Pelissier, Brigham Field and Malibu Media, LLC 23 24 25 26 27 28 - 10 - COMPLAINT PRINTED ON RECYCLED PAPER REQUEST FOR JURY TRIAL 1 2 3 Plaintiffs hereby request a trial by jury on all claims to which they are entitled to a trial by jury. 4 5 DATED: August 12, 2019 MURPHY ROSEN LLP 6 7 By: David E. Rosen Attorneys for Plaintiffs Colette Pelissier, Brigham Field and Malibu Media, LLC 8 9 10 MURPHY ROSEN LLP 100 WILSHIRE BOULEVARD, SUITE 1300 SANTA MONICA, CA 90401-1142 TELEPHONE 310-899-3300; FACSIMILE 310-399-7201 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 11 COMPLAINT PRINTED ON RECYCLED PAPER