LAW OFFICES OF DANIEL B. SPITZER
DANIEL B. SPITZER State Bar No. 121752
16311 Ventura Boulevard Suite 1200
Encino, California 91436-2152

Telephone: 818?990?9700

Facsimile: 818-990?9705

Email: dspitzer@spitzeresq.com

Attorneys for Defendants Metalscom

Case Document 27 Filed 05/14/19 Page 1 of 24 Page ID #:350

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

WESTERN DIVISION

STEPHEN MATTEO, an individual
Plaintiff,








vs. 

CHASE METALS SERVICE CORPORATION, 
a Delaware corporation; METALSCOM, an)
unknown entity; DAVID H. WOLAN, an 
individual; LUKE MCCAIN, an individual; 
JONATHAN SACHS, an individual; CHASE 
METALS, an unknown entity; 
CHASEMETALSCOM, an unknown entity;)
CHASE METALS, LLC, a Wyoming limited 
liability company; CHASE METALS, INC, a 
Wyoming corporation; TEM INC., a Wyoming 
corporation; and TMTE INC., a Wyoming 
corporation,

Defendants.

 

CASE NO. 2: 1 
[Honorable John A. Kronstadt]
ANSWER TO FIRST

AMENDED COMPLAINT
First Amended Comp. Filed: April 4, 2019

Defendants TMTE, 1110., a Wyoming corporation and Jonathan Sachs, an

individual (?Sachs?) hereby set forth their answer to the First Amended Complaint of

plaintiff Stephen Matteo, an individual (?Matteo?), by stating and alleging as follows:

1

ANSWER TO FIRST AMENDED COMPLAINT

 

UIJAUJN



Case Document 27 Filed 05/14/19 Page 2 of 24 Page ID #:351

I. PARTIES

1. As to the allegations of paragraph 1 of the AC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.

2. As to the allegations of paragraphs the FAC, Defendants admit,
deny and alleged as follows: The defendants named herein as METALSCOM, an unknown
entity, CHASE METALS, an unknown entity, CHASEMETALSCOM, an unknown entity,
CHASE METALS, LLC, a Wyoming limited liability company, CHASE METALS, IN C.,
a Wyoming corporation, TEM IN C., a Wyoming corporation, and TMTE INC., a Wyoming

corporation, are all one entity, TMT E.

Defendant TMTE is a Wyoming corporation that was originally formed on April 30,
2008 as Access Unlimited, LLC, a Wyoming limited liability company.

On August 29, 2016, the name of the entity was changed to Chase Metals, LLC, 3
Wyoming limited liability company.

On March 18, 2017, Chase Metals, LLC was converted from a limited liability
company to a pro?t corporation. At the same time, its name was changed to Chase
Metals, Inc, a Wyoming corporation.

On July 23, 2018, Chase Metals, Inc?s name was changed to TEM, Inc., a Wyoming
corporation.

On August 2, 2018, TEM, Inc.?s name was changed to TMTE, Inc, a Wyoming
corporation.

On December 10, 2018, TMTE ?led a ?ctitious business name statement in Los
Angeles County for the trade name of Metalscom. On January 28, 201 9, TMTE ?led
a ?ctitious business name registration with the Wyoming Secretary of State?s
Business Division for the trade name of Metalscom.

principal place of business is in Beverly Hills, California.

2
ANSWER TO FIRST AMENDED COMPLAINT

 






 

10.

Cfase Document 27 Filed 05/14/19 Page 3 of 24 Page ID #:352

Except as expressly alleged and admitted above, Defendants lack sufficient knowledge or
information to form a belief as to paragraphs the PAC and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 10 of the FAC, Defendants admit that defendant David H.
Wolan was formerly associated with Defendants as a sales associate. Except as expressly
alleged and admitted herein, Defendants lack sufficient knowledge or information to form
a belief as to the truth of the allegations contained in paragraph 10 of the PAC and, on the
basis, deny generally and specifically each and every allegation set forth therein.
As to the allegations of paragraph 11 of the PAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants admit the allegations of paragraph 12 of the PAC.
As to the allegations of paragraph 13 of the PAC, Defendants lack sufficient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and specifically each and every allegation set forth therein.
As to the allegations of paragraphs 14 and 15 of the PAC, they constitute legal conclusions
and argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
JURISDICTION AND VENUE

Defendants incorporate by reference each and every response set forth to paragraphs 1
through 15, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 16, 17 and 18 of the PAC, they constitute legal
conclusions and argument not requiring a response, but to the extent they are deemed to
make any factual allegation, the factual basis for any conclusion is hereby denied.

PURPORTED FACTS COMMON TO ALL CAUSES OF ACTION
Defendants incorporate by reference each and every response set forth to paragraphs 1

3
ANSWER TO FIRST AMENDED COMPLAINT

 

43mm



11.

12.

13.

14.
15.

16.

17.

Case Document 27 Filed 05/14/19 Page 4 of 24 Page ID #:353

through 18, inclusive, set forth above, as though fully and completely set forth herein.

As to the allegations of paragraphs 20, 21, 22 and 23 of the FAC, Defendants lack sufficient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 24 of the FAC, Defendants admit that Exhibit 1 is a copy
of the front page of the Shipping and Transaction Agreement which plaintiff signed and
returned to TMTE on or about August 7, 2017. Except as expressly alleged and admitted,
Defendants lack suf?cient knowledge or information to form a belief as to the truth of the
allegations contained therein and, on that basis, deny generally and speci?cally each and
every allegation set forth therein.

As to the allegations of paragraph 25 of the PAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and specifically the allegations of paragraph 26 of the PAC.
As to the allegations of paragraph 27 of the PAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and specifically each and every allegation set forth therein.

As to the allegations of paragraphs 28the FAC, Defendants lack
suf?cient knowledge or information to form a belief as to the truth of the allegations
contained therein and, on that basis, deny generally and speci?cally each and every allegation
set forth therein. Defendants specifically deny that plaintiff has been damaged in any sum
whatsoever as a result of any purported wrongdoing by Defendants.

As to the allegations of paragraph 33 of the FAC, they constitute legal conclusions and

4
ANSWER TO FIRST AMENDED 

 





jase Document 27 Filed 05/14/19 Page 5 of 24 Page ID #:354

 

18.

19.

20.

21.

22.
23.

24.

25.

argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

FIRST CAUSE OF ACTION FOR BREACH OF CONTRACT
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 33, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 35 and 36 of the PAC, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 37 of the FAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and specifically each and every allegation set forth therein.
As to the allegations of paragraph 38 of the FAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
Defendants deny generally and speci?cally the allegations of paragraph 39 of the PAC.
As to the allegations of paragraph 40 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual 
allegation, the factual basis for any conclusion is hereby denied.
Defendants deny generally and speci?cally the allegations of paragraph 41 of the PAC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
As to the allegations of paragraph 42 of the PAC, they constitute legal conclusions and

argument not requiring a response, but to the extent they are deemed to make any factual

5
ANSWER TO FIRST AMENDED COMPLAINT

 





26.

27.

28.

29.

30.

31.

32.

33.

Case Document 27 Filed 05/14/19 Page 6 of 24 Page ID #:355

allegation, the factual basis for any conclusion is hereby denied.

SECOND CAUSE OF ACTION FOR FRAUD
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 42, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 44 and 45 of the PAC, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 46 of the AC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraphs 47, 48, 49 and 50
of the FAC.
Defendants deny generally and speci?cally the allegations of paragraph 51 of the PAC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 52 of the AC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 53 of the FAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
THIRD CAUSE OF ACTION FOR NEGLIGENT MISREPRESENTATION
Defendants incorporate by reference each and every response set forth to paragraphs 1

6
ANSWER TO FIRST AMENDED COMPLAINT

 






 

34.

35.

36.

37.

38.

39.

40.

41.

Case Document 27 Filed 05/14/19 Page 7 of 24 Page ID #:356

through 53, inclusive, set forth above, as though fully and completely set forth herein.

As to the allegations of paragraphs 55 and 56 of the PAC, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 57 of the PAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraphs 58the PAC.

Defendants deny generally and specifically the allegations of paragraph 63 of the AC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.

As to the allegations of paragraph 64 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

FOURTH CAUSE OF ACTION FOR FRAUDULENT INDUCEMENT
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 64, inclusive, set forth above, as though fully and completely set forth herein.

As to the allegations of paragraphs 66 and 67 of the FAC, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 68 of the FAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $3 67,530, and on or about August

7
ANSWER TO FIRST AMENDED COMPLAINT

 



42.

43.

44.

45.

46.

47.

48.

(nase Document 27 Filed 05/14/19 Page 8 of 24 Page ID #:357

23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices reflecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraphs 69, 70, 71 and 72
of the FAC.
Defendants deny generally and speci?cally the allegations of paragraph 73 of the PAC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 74 of the PAC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 75 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

FIFTH CAUSE OF ACTION FOR FINANCIAL ELDER ABUSE
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 75, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 77, 78 and 79 of the FAC, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 80 of the FAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein

8
ANSWER TO FIRST AMENDED COMPLAINT

 



49.

50.

51.

52.

53.

54.

55.

56.
57.

58.

Case Document 27 Filed 05/14/19 Page 9 of 24 Page ID #:358

and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraphs 81, 82, 83 and 84 of the PAC, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraphs 85 and 86 of the
PAC.
Defendants deny generally and specifically the allegations of paragraph 87 of the PAC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 88 of the FAC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 89 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

SIXTH CAUSE OF ACTION FOR CONVERSION
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 89, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraph 91 of the FAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and specifically each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 92 of the PAC.
As to the allegations of paragraph 93 of the AC, Defendants lack sufficient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and specifically each and every allegation set forth therein.

Defendants deny generally and specifically the allegations of paragraph 94 of the FAC, and

9
ANSWER TO FIRST AMENDED COMPLAINT

 



59.

60.

61.

62.

63.
64.

65.




CTse Document 27 Filed 05/14/19 Page 10 of 24 Page ID #:359

speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 95 of the PAC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 96 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

SEVENTH CAUSE OF ACTION FOR COMMON COUNT

(MONEY HAD AND RECEIVED)

Defendants incorporate by reference each and every response set forth to paragraphs 1
through 96, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraph 98 of the PAC, Defendants admit that plaintiff made two
purchases of precious metals. Except as expressly alleged and admitted, Defendants lack
suf?cient knowledge or information to form a belief as to the truth of the allegations
contained therein and, on that basis, deny generally and speci?cally each and every allegation
set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 99 of the FAC.
Defendants deny generally and specifically the allegations of paragraph 100 of the AC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
As to the allegations of paragraph 101 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual

allegation, the factual basis for any conclusion is hereby denied.

10
ANSWER TO FIRST AMENDED COMPLAENT

 

U?I-lkaN



66.

67.

68.

69.

70.

71.

72.

73.

Cree Document 27 Filed 05/14/19 Page 11 of 24 Page ID #:360

EIGHTH CAUSE OF ACTION FOR UNFAIR AND DECEPTIVE
BUSINESS PRACTICES CAL. B. P. 817200 ET SEQ.

Defendants incorporate by reference each and every response set forth to paragraphs 1
through 101 inclusive, set f01th above, as though fully and completely set forth herein.
As to the allegations of paragraphs 102, 103, 104 and 105 of the PAC, they constitute legal
conclusions and argument not requiring a response, but to the extent they are deemed to
make any factual allegation, the factual basis for any conclusion is hereby denied.
Defendants deny generally and specifically the allegations of paragraph 106 of the PAC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and specifically the allegations of paragraph 107 of the AC, and
Speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraphs 108 and 109 of the FAC, they constitute legal conclusions
and argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
NINTH CAUSE OF ACTION FOR VIOLATION OF PENAL CODE 8496(a)
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 109, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 111, 112, 113, 114 and 115 of the FAC, they constitute
legal conclusions and argument not requiring a response, but to the extent they are deemed
to make any factual allegation, the factual basis for any conclusion is hereby denied.
As to the allegations of paragraph 1 16 of the FAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting

those purchases. Except as expressly alleged and admitted, Defendants lack sufficient

1
ANSWER TO FIRST AMENDED COMPLAINT

 

?lese Document 27 Filed 05/14/19 Page 12 of 24 Page ID #:361

mews74.

75.

76.

77.

78.

79.

80.

81.

knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraphs 117, 118, 119 and 120 of the FAC, Defendants lack
suf?cient knowledge or information to form a belief as to the truth of the allegations
contained therein and, on that basis, deny generally and speci?cally each and every allegation
set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 121 of the AC, and
speci?cally deny that plaintiff has been injured in the sum of $1,500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 122 of the FAC, and
specifically deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 123 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

TENTH CAUSE OF ACTION FOR CIVIL CONSPIRACY
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 123, inclusive, set forth above, as though fully and completely set forth herein.
Defendants deny generally and speci?cally the allegations of paragraphs 125 and 126 of the
FAC.
Defendants deny generally and speci?cally the allegations of paragraph 127 of the PAC, and
speci?cally deny that plaintiff has been injured in the sum of $500,000 or any sum
whatsoever as a result of any purported wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 128 of the FAC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.

12
ANSWER TO FIRST AMENDED COMPLAINT

 






 

 

82.

83.

84.

85.
86.

87.

88.

Cree Document 27 Filed 05/14/19 Page 13 of 24 Page ID #:362

As to the allegations of paragraph 129 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

ELEVENTH CAUSE OF ACTION FOR RESCISSION BASED ON

UNILATERAL MISTAKE

Defendants incorporate by reference each and every response set forth to paragraphs 1
through 129, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 131, 132 and 133 of the PAC, Defendants lack sufficient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 134 of the FAC.
As to the allegations of paragraph 135 of the FAC, Defendants admit that Exhibit 1 is a copy
of the front page of the Shipping and Transaction Agreement which plaintiff signed and
returned to TMTE on or about August 7, 2017. Except as expressly alleged and admitted,
Defendants lack suf?cient knowledge or information to form a belief as to the truth of the
allegations contained therein and, on that basis, deny generally and specifically each and
every allegation set forth therein.
As to the allegations of paragraph 136 of the PAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and eveiy allegation set forth therein.
As to the allegations of paragraphs 137, 138 and 139, Defendants lack suf?cient knowledge
or information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.

13
ANSWER TO FIRST AMENDED COMPLAINT

 

Tee Document 27 Filed 05/14/19 Page 14 of 24 Page ID #:363



the allegations of paragraphs 140, 141 and 142 of the PAC, they constitute legal
conclusions and argument not requiring a response, but to the extent they are deemed to
make any factual allegation, the factual basis for any conclusion is hereby denied.
TWELFTH CAUSE OF ACTION FOR RESCISSION

BASED ON FRAUD FRAUDULENT INDUCEMENT
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 142, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraph 144 of the PAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 145 of the AC, Defendants admit that Exhibit 1 is a copy
of the front page of the Shipping and Transaction Agreement which plaintiff signed and
returned to TMTE on or about August 7, 2017. Except as expressly alleged and admitted,
Defendants lack sufficient knowledge or information to form a belief as to the truth of the
allegations contained therein and, on that basis, deny generally and speci?cally each and
every allegation set forth therein.
As to the allegations of paragraph 146 of the PAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack sufficient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 147, Defendants lack sufficient knowledge or information
to form a belief as to the truth of the allegations contained therein and, on that basis, deny
generally and specifically each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 148 of the FAC.

l4
ANSWER. TO FIRST AMENDED COMPLAINT

 

JAWN

Natl96.

97.

98.

99.

100.

101.

102.

103.

CTse Document 27 Filed 05/14/19 Page 15 of 24 Page ID #:364

As to the allegations of paragraphs 149 and 150, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraphs 15 1 and 152 of the PAC, they constitute legal conclusions
and argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
As to the allegations of paragraph 153 of the PAC, Defendants deny generally and
speci?cally that plaintiff suffered any damages whatsoever as a result of any purported
wrongdoing by Defendants.
Defendants deny generally and speci?cally the allegations of paragraph 154 of the PAC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 155 of the AC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

THIRTEENTH CAUSE OF ACTION FOR RESCISSION

BASED ON NEGLIGENT MISREPRESENTATION

Defendants incorporate by reference each and every response set forth to paragraphs 1
through 156, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraph 157 of the PAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 158 of the PAC, Defendants admit that Exhibit 1 is a copy
of the front page of the Shipping and Transaction Agreement which plaintiff signed and
returned to TMTE on or about August 7, 2017. Except as expressly alleged and admitted,
Defendants lack sufficient knowledge or information to form a belief as to the truth of the

15
ANSWER TO FIRST AMENDED COMPLAINT

 

C?se Document 27 Filed 05/14/19 Page 16 of 24 Page ID #:365



{>00me

104.

105.

106.
107.

108.

109.

110.




allegations contained therein and, on that basis, deny generally and speci?cally each and
every allegation set forth therein.

As to the allegations of paragraph 159 of the PAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack suf?cient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 160 and 161, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 162 of the FAC.
As to the allegations of paragraphs 163 and 164, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.

As to the allegations of paragraphs 165 and 166 of the PAC, they constitute legal conclusions
and argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

As to the allegations of paragraph 167 of the PAC, Defendants deny generally and
speci?cally that plaintiff suffered any damages whatsoever as a result of any purported
wrongdoing by Defendants.

As to the allegations of paragraph 168 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual

allegation, the factual basis for any conclusion is hereby denied.

16
ANSWER TO FIRST AMENDED COMPLAINT

 

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111.

112.

113.

114.

115.

116.

117.

118.

FOURTEENTH CAUSE OF ACTION FOR RESCISSION
BASED ON LACK OF CONSIDERATION
Defendants incorporate by reference each and every reSponse set forth to paragraphs 1
through 168, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 170 of the AC, Defendants lack suf?cient knowledge
or information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraphs 171, 172', 173 and 174 of the PAC, they constitute legal
conclusions and argument not requiring a response, but to the extent they are deemed to
make any factual allegation, the factual basis for any conclusion is hereby denied.
FIFTEENTH CAUSE OF ACTION FOR RESCISSION
BASED ON ILLEGALITY PUBLIC INTEREST
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 174, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 176, 177 and 178 of the PAC, they constitute legal
conclusions and argument not requiring a response, but to the extent they are deemed to
make any factual allegation, the factual basis for any conclusion is hereby denied.
As to the allegations of paragraph 179 of the AC, Defendants deny generally and
speci?cally that plaintiff suffered any damages whatsoever as a result of any purported
wrongdoing by Defendants.
Defendants deny generally and specifically the allegations of paragraph 180 of the PAC, and
speci?cally deny that plaintiff is entitled to an award of punitive damages in the amount or
$7,000,000 or any sum whatsoever.
As to the allegations of paragraph 181 of the PAC, they constitute legal conclusions and
argument not requiring a reSponse, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

17
ANSWER TO FIRST AMENDED COMPLAINT

 

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LII-FAWN



119.

120.

121.

122.

123.
124.

125.

126.

127.

SIXTEENTH CAUSE OF ACTION FOR CANCELLATION OF
INSTRUMENTS (CIVIL CODE 83412)
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 181, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraphs 183, 184, 185 and 186 of the FAC, they constitute legal
conclusions and argument not requiring a response, but to the extent they are deemed to
make any factual allegation, the factual basis for any conclusion is hereby denied.
SEVENTEENTH CAUSE OF ACTION
FOR RESTITUTION (UNJUST ENRICHMENT)
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 186, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraph 188 of the FAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
Defendants deny generally and specifically the allegations of paragraph 189 of the PAC.
As to the allegations of paragraph 190 of the PAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 191 of the FAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
As to the allegations of paragraph 192 of the FAC, Defendants deny generally and
specifically that plaintiff suffered damages in the sum of $500,000 or any sum whatsoever
as a result of any purported wrongdoing by Defendants.
As to the allegations of paragraph 193 of the PAC, they constitute legal conclusions and

argument not requiring a response, but to the extent they are deemed to make any factual

18
ANSWER TO FIRST AMENDED COMPLAINT

 

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128.

129.

130.

131.

132.

133.

134.

allegation, the factual basis for any conclusion is hereby denied.

EIGHTEENTH CAUSE OF ACTION FOR ACCOUNTING
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 193, inclusive, set forth above, as though fully and completely set forth herein.
As to the allegations of paragraph 195 of the FAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.
As to the allegations of paragraph 196 of the PAC, Defendants admit that Exhibit 1 is a copy
of the front page of the Shipping and Transaction Agreement which plaintiff signed and
returned to TMTE on or about August 7, 2017. Except as expressly alleged and admitted,
Defendants lack suf?cient knowledge or information to form a belief as to the truth of the
allegations contained therein and, on that basis, deny generally and specifically each and
every allegation set forth therein.
As to the allegations of paragraph 197 of the PAC, Defendants admit that plaintiff purchased
precious metals on or about August 7, 2017 in the sum of $367,530, and on or about August
23, 2017, in the sum of $94,282.50, and that Exhibit 2 is comprised of invoices re?ecting
those purchases. Except as expressly alleged and admitted, Defendants lack sufficient
knowledge or information to form a belief as to the truth of the allegations contained therein
and, on that basis, deny generally and speci?cally each and every allegation set forth therein.
As to the allegations of paragraph 198 of the AC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and specifically each and every allegation set forth therein.
As to the allegations of paragraph 1. 99 of the PAC, Defendants lack suf?cient knowledge or
information to form a belief as to the truth of the allegations contained therein and, on that
basis, deny generally and specifically each and every allegation set forth therein.
Defendants deny generally and speci?cally the allegations of paragraph 200 of the FAC.

19
ANSWER TO FIRST AMENDED COMPLAINT

 

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135.

136.

137.

138.

139.

140.

141.

142.

As to the allegations of paragraph 201 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

NINETEENTH CAUSE OF ACTION FOR CIVIL RICO SECTION 1962(c)
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 201, inclusive, set forth above, as though fully and completely set forth herein.
Defendants deny generally and speci?cally the allegations of paragraphs 203, 204, 205, 206
and 207 of the PAC.

As to the allegations of paragraph 208 of the PAC, Defendants deny generally and
speci?cally that plaintiff suffered damages in the amount of $2,000,000 or any amount
whatsoever as a result of any purported wrongdoing by Defendants, and further deny
generally and speci?cally that plaintiff is entitled to an award of any damages whatsoever,
including without limitation treble damages, as a result of any purported wrongdoing

As to the allegations of paragraph 209 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual
allegation, the factual basis for any conclusion is hereby denied.

TWENTIETH CAUSE OF ACTION FOR CIVIL RICO SECTION 1962(d)
Defendants incorporate by reference each and every response set forth to paragraphs 1
through 209, inclusive, set forth above, as though fully and completely set forth herein.
Defendants deny generally and speci?cally the allegations of paragraphs 21 1 and 212 of the
FAC.

As to the allegations of paragraph 213 of the PAC, Defendants deny generally and
speci?cally that plaintiff suffered damages in the amount of $2,000,000 or any amount
whatsoever as a result of any purported wrongdoing by Defendants, and further deny
generally and speci?cally that plaintiff is entitled to an award of any damages whatsoever,
including without limitation treble damages, as a result of any purported wrongdoing

20
ANSWER TO FIRST AMENDED COMPLAINT

 





143.

144.

145.

146.

147.

148.



Cfse Document 27 Filed 05/14/19 Page 21 of 24 Page ID #:370

As to the allegations of paragraph 214 of the PAC, they constitute legal conclusions and
argument not requiring a response, but to the extent they are deemed to make any factual

allegation, the factual basis for any conclusion is hereby denied.

FIRST AFFIRMATIVE DEFENSE
(Failure to State a Claim for Relief)
The complaint, and each purported claim for relief set forth therein as against these
answering defendants, fail to state facts sufficient to constitute a cause of action under
applicable law.
SECOND AF FIRMATIVE DEFENSE
(Estoppel)
Plaintiffs complaint, and each claim for relief set forth therein as against these answering
defendants, are barred by the doctrine of estoppel.
THIRD AFFIRMATIVE DEFENSE
(Waiver)
Plaintiffs complaint, and each claim for relief set forth therein as against these answering
defendants, are barred by the doctrine of waiver.
FOURTH AFFIRMATIVE DEFENSE
(Offsets)
Plaintiffs complaint, and each claim for relief set forth therein as against these answering
defendants, are subject to offsets claimed by the defendants.
FIFTH AFFIRMATIVE DEFENSE
(Unclean Hands)
Plaintiffs complaint, and each claim for relief set forth therein as against these answering

defendants, are barred by the doctrine of unclean hands.

21
ANSWER TO AMENDED 

 



 

149.

150.

151.

152.

153.

154.

CTse Document 27 Filed 05/14/19 Page 22 of 24 Page ID #:371

SIXTH AFFIRMATIVE DEFENSE
(Defendants' Performance Excused by Plaintiffs' Breach)
The complaint and each claim for relief stated therein as against these answering defendants
fails to state causes of action because the purported acts and/or omissions of defendants
alleged therein were excused or justi?ed by the prior breach of Plaintiff.
SEVENTH AFFIRMATIVE DEFENSE
(Plaintiffs Acts and/or Omissions)
Plaintiffs losses and/or damages, if any there were, as alleged in the complaint and each
claim for relief stated therein were caused by and contributed to by the acts and omissions
of plaintiff.
EIGHTH AFFIRMATIVE DEFENSE
(Failure to Mitigate Damages)

Plaintiffs complaint and each claim for relief set forth therein are barred by the actions of
plaintiff, who has failed to mitigate, in whole or in part, his alleged damages, if any.

NINTH AFFIRMATIVE DEFENSE

(Acts and/or Omissions of Third Parties)

Plaintiffs losses and/or damages, if any there were, as alleged in the complaint and each
claim for relief stated therein were caused by and contributed to by the acts and omissions
of third parties.

TENTH AFFIRMATIVE DEFENSE

(Statute of Limitations)
The complaint and each claim for relief set forth therein are barred by relevant statutes of
limitations.
ELEVENTH AFFIRMATIVE DEFENSE
(Arbitration Agreement)

This action must be brought before ADR Services, Inc., pursuant to the contract between the

22
ANSWER TO FIRST AMENDED COMPLAINT

 

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155.

Dated:

parties, which requires that any action arising therefrom be brought in the arbitration forum

designated in the contract.
TWELFTH AFFIRMATIVE DEFENSE
(Privilege)
Plaintiffs complaint and each claim for relief set forth therein are barred because Defendants

have not engaged in any unlawful, unfair or fraudulent business practices and Defendants?

conduct was proper and lawful.

WHEREFORE, defendants and each of them pray for judgment in their favor as follows:
That the Complaint of plaintiffs and each of them, and each purported claim for relief set
forth therein, be dismissed with prejudice;

For costs of suit in this action;

For attorneys' fees and costs, as permitted by the law; and

For such other and further relief as this court deems just and appropriate.

May 14, 2019 LAW OFFICES OF DANIEL B. SPITZER

 

 

23
ANSWER TO FIRST AMENDED COMPLAINT

 

Case Document 27 Filed 05/14/19 Page 24 of 24 Page ID #:373

PROOF OF SERVICE

STATE OF CALIFORNIA, COUNTY OF LOS ANGELES:

I am employed in the County of Los Angeles, State of California. I am over the
age of 18, and not a party to the within action. My business address and place of
employment is LAW OFFICES OF DANIEL B. SPITZER, 16311 Ventura Boulevard,
Suite 1200, Encino, California 91436-2152.

On the date set forth below, I served the document(s) described as:
ANSWER TO FIRST AMENDED COMPLAINT

by placing the original a true copy thereof enclosed in a sealed envelope addressed as follows:

Shab D. Kerendian, Esq.

Edrin Shamtob, Esq.

Kerendian Associates, Inc.
11755 Wilshire Blvd, 15th Floor
Los Angeles, CA 90025

VIA MAIL

deposited such envelope(s) in the mail at Encino, California. The envelope was mailed with
postage thereon fully prepaid.

As follows: I am "readily familiar" with the ?rm's practice of collection and processing
correspondence for mailing. Under that practice it would be deposited with US. postal service on that
same day with postage thereon fully prepaid at Encino, California in the ordinary course of business. I
am aware that on motion of the party sewed, service is presumed invalid if postal cancellation date or
postage meter date is more than one day after date of deposit for mailing in af?davit.

MESSENGER delivered such envelope(s) by hand to the of?ce(s) of the addressee(s).

STATE I declare under penalty of perjury under the laws of the State of California that the
above is true and correct.

FEDERAL I declare that I am employed in the of?ce of a member of the bar of this court at
whose direction the service was made. I declare under penalty of perjury under the laws of the
United States that the foregoing is true and correct.

Executed on May 14, 2019, at Encino, Californi

 

DANIEL B. SPITAER