-- • l BEROKIM & FARAH FILED Kousha Berokim ,SBN 2427631 berokim@berokim.com

2 Neda Farah' SBN 2698191 farah@berokim.com 270 North Canon Drive, Third Floor .

Los Angeles Superior Court

Beverly Hills, California 90210 3 T (310)993-3703 \ F (310)300-1233

4 JOHN_AKEICL~RK Attorneys for Defendant and Cross Complainant California Consulting Group ia

5 Consulting Group International Sy~: . I g YTY

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

IN THE SUPERIOR COURT FOR THE STATE OF CALIFORNIA

COUNTY OF LOS ANGELES, CENTRAL DISTRICT

KAREN DE LA CARRIERE,

Plaintiff,

vs.

WILLIAM N. GREENE, individually and doing business as CALIFORNIA CONSULTING GROUP, a business entity of unknown form, R & R TRUST, a business entity of unknown form, CALIFORNIA CONSULTING GROUP INTERNATIONAL, a business of unknown fonn; All Persons PresentJy Unknown, Claiming Any Legal Or Equitable Right, Title, Estate, Lien, Or Interest In The Property Described In The Complaint Adverse To Plaintiffs' Title, Or Any Cloud On Plaintiffs' Title Thereto; and DOES 1 through 25, inclusive,

Defendants.

CALIFORNIA CONSULTING GROUP dba CAL1FORNIA CONSULTING GROUP INTERNATIONAL,

Cross Complainant, vs.

KAREN DE LA CARRIERE, and ROES 1 through 20, inclusive,

Cross Defendants.

Case Number: BC493393

MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATTACH ORDERS AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

Hearing Date: PebFMsry 7, 2812 ~ftnh\'+1.l.0\3 Time: 9:30 a.m. Dept.: 85

Complaint Filed: October 5, 2012 Cross Complaint Filed: November 8, 2012

926098.1 5839.048 I

MEMORANDUM OF POINTS AND AUTHORITI ES IN SUPPORT OF APPLICATIONS FOR RIGHT TO A IT ACH ORDERS AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA

CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

9260l)R.\ 5839.048

• • Cross Complainant California Consulting Group dba California Consulting Group

International ("Cross Complaint"), submits the following Memorandum of Points and

Authorities in Support of Applications for Right to Attach Orders and Orders for Issuance of

Writs of Attachment Against Cross Defendant Karen De La Carriere.

MEMORANDUM OF POINTS AND AUTHORITIES

I.

STATEMENT OF FACTS

Cross Complainant seeks a writ of attachment against Cross Defendant Karen De La

Carriere (hereinafter referred to as "Carriere"). Carriere is the borrower under the Loan

Agreement described fu11y below. Carriere is indebted to Cross Complainant due to her

breach of obligation under the Loan Agreement. With respect to the "natural person" Cross

Defendant Carriere meets the conditions for attachment applicable to "natural person." At

all relevant times herein, Carriere's obligation under the Loan Agreement was expressly

relied upon by Cross Complainant in extending credit to Carriere.

The facts supporting attachments are set forth below, and in more detail in the

attached Declaration of William N. Greene. (the "Greene" Declaration).

On or about June 9, 1998, Cross Complainant and Carriere entered into a written

Loan Agreement (the "Loan Agreement"), pursuant to which Cross Complainant loaned to

Carriere the principal sum of One Hundred Seventy Five Thousand and no 0011 00

($175,000.00), together with interest at the rate of fourteen and a hal f percent (14.5%) per

annum. A true and correct copy of the Loan Agreement is attached hereto as Exhibit 1 and

incorporated herein.

The Loan Agreement was secured by a Deed of Trust for the property commonly

known as 1935 N. Serrano Ave, Los Angeles, California 90027 ("subject property"). APN

5587-024-020.

On June 9, 1998, for valuable consideration, Carriere executed and delivered a Loan

Agreement to Cross Complainant, pursuant to which Carriere promised to pay present and

future obligations to Cross Complainant. The Loan Agreement states, in the first paragraph:

2 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO A1TACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF A IT ACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.\ SRJ9.04R

• • "5 years PLUS 30 DAYS after date, for value received, the undersigned

maker(s), promise(s) to pay to CALIFORNIA CONSULTING GROUP ...

the principal sum of One Hundred and Seventy Five Thousand and no/IOO

DOLLARS, with interest from 1 July 1998 on the unpaid principal at the rate

of 14Y2 percent per annum, payable NOT LESS THAN ANNUALLY ON OR

BEFORE JULY 1."

Additionally, pursuant to the Loan Agreement, if interest is not paid when due, it

shall thereafter bear like interest as the principa1, but such unpaid interest so compounded

shall not exceed an amount equal to simple interest on the unpaid principal at the maximum

rate pennitted by law.

Further, in case of default, the whole sum of principal and accrued interest shall

become immediately due, without notice, at the option of the holder of this note.

On or about June 9, 1998, in express reJiance thereon, Cross Complainant disbursed

funds thereunder.

On or about February 22, 2003, Carriere executed and delivered to Cross

Complainant a Loan Agreement renewing the 1998 Loan Agreement pursuant to which she

promised to pay present and future obligations to Cross Complainant. ('"2003 Loan

Agreement") A true and correct copy of said Loan Agreement executed and delivered in

2003 is attached hereto as Exhibit 2 and incorporated herein.

The 2003 Loan Agreement was secured by a 2003 Deed of Trust against the property

commonly known as 1935 N. Serrano Ave., Los Angeles, CA 90027 and legally described

as Lot 45 of Tract No. 3823, as per map recorded in book 41, page 78 of maps in the office

of the county recorder of Los Ange1es County, APN 5587-024-020, recorded on October 9,

2003 in the Los Angeles County Recorder's Office as Instrument number 033025404.

On or around October 5, 2012, Carriere filed a Complaint disputing the va1idity of

the 2003 Deed of Trust claiming that the 2003 Deed of Trust is a forgery and Cross

Complainant does not have a valid security interest. A true and correct copy of the October

5, 2012 Complaint is attached hereto as Exhibit 3 and incorporated herein.

3 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATrACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF A n'ACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 5839.048

• • As further stated below~ given that Carriere disputes the validity of the 2003 Deed of

Trust, Cross Complainant's attachment may be issued as Carriere is barred from raising the

defense that an attachment may not be issued on a claim that is secured by real property.

Nevertheless~ when the note matured in 2008, Carriere was yet again unable to make

payments pursuant to the renewed 2003 Loan Agreement. At that tinle, due to the economic

downturn, Carriere requested Cross Complainant to agree to indefinitely extend the tenns of

the 2003 Loan Agreement in order to give Carriere the opportunity to repay the loan in full.

As a result, on or around October 9~ 2008, to assist Carriere with repayment of the

Joan, Cross Complainant and Carriere renegotiated the terms of the Loan Agreement and

Cross Complainant agreed to indefinitely extend the terms of the loan until Cross

Complainant notified Carriere otherwise.

In or around April 2012, by reason of default, Cross Complainant exercised its

option to declare the entire unpaid balance under the Loan Agreement to be immediately due

and payable.

Carriere defaulted under the Loan Agreement by, inter alia, fai ling to make the

payments that fell due under the Loan Agreement and by further filing a complaint dated

October 15,2012 denying any monies being owed by Carriere to Cross Complainant.

Despite written and oral demands by Cross Complainant, Carriere ultimately failed to pay

the balance due under the Loan Agreement. Attached hereto as Exhibit 4 is a true and

correct copy of Cross Complainant's demand letter to Carriere.

As further stated in the Greene Declaration, Cross Complainant has performed all the

tenns and conditions on its part to be perfom1ed with relation to the above referenced Loan

Agreement, except for such tenns and conditions as have been excused by the conduct and

breaches of Carriere, if any.

On November 8, 2012, Cross Complainant filed its Cross Complaint against Carriere

for breach of contract (promissory note) in order to recover the amounts due under the Loan

Agreement.

4 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATfACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF A TI'ACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE: DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

• • As of November 1,2012, under the Loan Agreement, there was due, owing and

unpaid by Cross Defendant, the principal sum of $175,000.00 and accrued interest in the

additional sum of$587,060.78, for a total sum of $762,060.78, pursuant to and arising out of

the First and Second Causes of Action for Breach of Contract and Money Lent respectively

as set forth in Cross Complainant's Cros·s Complaint.

By virtue of the foregoing facts, Cross Complainant seeks a right to attach order and

writ of attachment against Carriere, to secure the sum of $762,060.78, as set forth in

paragraph 29 of Greene's Declaration.

II.

CROSS COMPLAINANT HAS MADE A PROPER SHOWING FOR ISSUANCE OF

RIGHT TO ATTACH ORDERS AND ORDERS FOR INSSUANCE OF WRITS OF

ATTACHMENT

14 Cross C.omplainant seeks a right to attach order against Carriere on the basis of Cross

15 Complainant's causes of action for breach of contract (promissory note) and money lent.

16 Cross Complainant's claims against Carriere satisfy the statutory grounds for attachment.

17 Pursuant to the Code of Civil Procedure § 484.090. the Court shal1 issue a right to

18 attach order in favor of Plaintiff if it finds that (i) The claim upon which the attachment is

19

20 based is one upon which an attachment may be issued; (ii) The plaintiff has established the

21 probable validity of the claim upon which the attachment is based; (iii) The attachment is

22 not sought for a purpose other than the recovery on the claim upon which the attachment is

23 based; (iv) The amount to be secured by the attachment is greater than zero.

24

25

26

Further, under the Code of Civil Procedure § 483.01 O(a), an attachment may be

issued only in an action on a claim or claims for money, each of which is based upon a

contract, express or implied, where the total amount of the claim or claims is a fixed or 27

28 readily ascertainable amount not less than five hundred dollars ($500) exclusive of costs,

92609R.1 5839.048

interest, and attorney's fees.

MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICA nONS FOR RIGHT TO A IT ACH ORDERS AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA

CARRIERE; DECLARATION OF WILLIAM N. GREENE

• • 1 Section 483.010(b) adds the limitation that "[a]n attachment may not be issued on a

2 claim which is secured by any interest in real property." Section 483.010(c) adds a further

3 requirement for claims against natural persons: "If the action is against a defendant who is

4

5 the natural person, an attachment may be issued only on a claim which arises out of the

conduct by the defendant of a trade, business, or profession." 6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 5839.048

(i) THIS IS A PROPER CLAIM TO SUPPORT RIGHT TO ATTACH ORDERS AND

WRIT OF ATTACHMENT

Cross Complainant's claims against Carriere clearly meet the requirements under

CCP § 483.010. Cross Complainant's claims are based upon the express, written Loan

Agreements and are jointly and severally in the precise principal amount of $762,060.78, or

$175,000.00 exclusive of additional costs, interest and attorney's fees.

Cross Complainant's request for writ of attachment and right to attach order seeks

protection for this unpaid balance and does not seek protection as to any other amount

unrelated to the Loan Agreement.

In addition, on or around October 5, 2012, Carriere filed a complaint against Cross

Complaint to quiet title a.lleging that the 2003 Deed of Trust is a forgery and thus said

instrument is invalid.

Carriere alleges that "Plaintiffs purported notarized signature is a forgery. Plaintiff

did not appear before the notary and did not execute the 2003 Promissory Note and Trust

Deed. Nor did she have knowledge of or give her consent for anyone to sign on her behalf,

or to record the document.'~ (Complaint attached as Exhibit 3, Page 4, Ijf 11; see also Ijfljf19-

20 alleging that Plaintiff did not knowingly execute or consent to the execution of the 2003

Promissory Note and Trust Deed and is therefore void).

Carriere is barred from raising CCP § 483.01 O(b) as a defense to Cross Complainants

right to attach order which provides that an attachment may not be issued on a claim that is

secured by real property as Carriere is disputing the validity of the security.

6 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO AITACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

• • Therefore~ Cross Complainant's claims against Carriere satisfies the requirement set

forth in § 483.01 O(a) and § 483.01 O(b). See Declaration of Greene in Support of Cross

Complainant's App1ication for Writ of Attachment establishing each element required for

the issuance of a right to attach order and Writ of Attachment based thereon.

(ii) PLAINTIFF HAS ESTABLISHED THE PROBABLE VALIDITY OF ITS CLAIM

A claim has probable validity where "it is more likely than not that [Cross 7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

92609R.1 58:19.048

Complainant] will obtain a judgment against the [Cross Defendants], and each of them, on

that claim." Code of Civil Procedure § 481.190.

As noted above, Cross Complainant's claim is based upon the terms of the written

agreement, toward which Carriere owes $762,060.78 cal1ed for under the express terms of

the Loan Agreement. As stated in the Greene Declaration, Carriere has further continued to

fail to pay such amount despite Cross Complainant's demand for such payment. No

defense to such obligation is known or beljeved to exist, and under a11 of these factual

circumstances, it is unlikely that Carriere will be able to provide any defense to Cross

ComplainanC s claim for breach of contract (promissory note) and money lent; therefore,

Cross Complainant is more likely than not to prevail in the present action.

A review of Cross Complainant's Application for Writ of Attachment and

Declaration of Greene in Support of Cross Complainant's Applications for Writ of

Attachment reveal that Cross Complainant has established each and every fact necessary to

obtain judgment against Carriere. Hence, it is incumbent on the Court to grant Cross

Complainant's Application for Attachment.

(iii) THE ATTACHMENT IS NOT SOUGHT FOR A PURPOSE OTHER THAN THE

RECOVERY ON THE CLAIM UPON WHICH THE ATTACHMENT IS BASED

Cross Complainant seeks this attachment against Greene to secure, as much as

possible, recovery of a total sum in the amount of $762,060.78. Pursuant to the Loan

Agreement, as of November 1, 2012, there was due, owing and unpaid by Cross Defendant,

under the principal sum of $175,000.00 and accrued interest in the additjonal sum of

$587,060.78, for a total sum of $762,060.78.

7 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATTACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

,,", r,1 ~.

c.: 1-' '.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27 1-: ~I 28

92609R.1 58~9.048

• • As referenced in the Greene Declara~ion, Cross Complainant brought the instant

action only after repeated written and oral demands that Carriere pay the sum of

$762,060.78 due and owing to Cross Complainant.

(iv) WRIT OF ATTACHMENT MA Y BE GRANTED AGAINST A NATURAL

PERSON

The Code of Civil Procedure § 483.010 provides in pertinent part that if the action is

against an individual, an attachment may be issued only on a claim which arises out of the

conduct by the individual of a trade, business, or profession. The term "business" includes

any activities engaged in for profit or gain. The term "engaged in business" implies

business activity of a frequent or continuous nature. Advance Transformer Co. v. Superior

Court (1974) 44 Cal.App.3d 127, 134.

The present action is against Carriere who is a natural person; as such, an attachment

may be issued on a claim which arises out of the conduct by the Cross Defendant of a trade,

business, or profession. Carriere borrowed funds from Cross Complainant in order to

purchase commercial rental property.

Carriere borrowed funds by Cross Complainant California Consulting Group for the

purpose of purchasing the commercial real property commonly known as 1935 N. Serrano

A ve. Los Angeles, CA 90027 and leasing the units of the commerciaJ property to

prospective tenants. After the purchase of said property, Carriere collected and continues to

collect rent as income from tenants of the commercial rental property.

Furthermore, Carriere operates an art business which occupies a portion of the

commercial rental property. Carriere's art business is estimated at an annual revenue of

$100,000 to $400,000.

Carriere was entering into this transaction not for personal, family or household use

but as a business in which a source of income derives. Carriere's investn1ent in the subject

property is a part of her business.

8 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO A lTACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

• • Accordingly, it is clear that Carriere incurred the obligations which are the subject of

the accompanying attachment application in furtherance of her investment in commercial

property.

III.

CONCLUSION

For all of the foregoing reasons, as set forth above, Cross Complainant California 7 I

8

9

10

11

12

13

14

15

l6

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 5839.048

Consulting Group respectfully requests that the Court grant Cross Complainant's

Application for Right to Attach Orders and Orders for Issuance of Writs of Attachment

against Cross Defendant Karen De La Carriere to secure the sum of $762,060.78.

DATED: December 18,2012

Attorney for Cross omplainant California Consulting Group dba California Consulting Group International

9 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICA TrONS FOR RIGHT TO A IT ACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF A lTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE: DECLARATION OF WILLIAM N. GREENE

• • 1 DECLARATION OF WILLIAM N. GREENE,

o

2

3

4

5

6

7

8

9

to 11

~ 12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 5839.048

I, William N. Greene, declare:

1. I am the President of Cross Complainant California ConsuJting Group dba California

Consulting Group International, a California corporation (hereinafter referred to as

"Cross Complainant") in the above-captioned matter. I am responsible for the

business affairs of Cali fomi a Consulting Group and have personal knowledge of all

facts and matters with respect to the loan made to Cross Defendant Karen de la

Carriere (hereinafter referred to as "Carriere") in the sum of $] 75,000.00. If called

upon to testify in this matter, I could and would competently testify to the facts

stated herein.

2. I make and submit this Declaration in support of California Consulting Group's

application for right to attach orders and orders for issuance of writs of attachment in

this action against Cross Defendant Carriere, an individual.

3. I make and submit this Declaration based upon my personal knowledge and the

information contained in the records maintained by me with relation to the following

transactions, over which I have maintained custody and control in the ordinary

course of my business.

4. As payments have been received by me, information regarding transactions and

accounts for which such payments are received is inputted by me or by my

employees who have a duty in the ordinary course and scope of their employment to

accurately record such transactions into the business records of such accounts at or

near the time of their occurrence in the ordinary course of business. The records and

other documents in my files relating to the account described below, including the

documents submitted in conjunction with my Declaration, constitute writings made

]0 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO A IT ACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE~ DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 58)9.048

• • and kept in the ordinary and regular course of my business, at or near the time of the

event, act, or occurrence, of which they are a record.

5. 1 further state from my own knowledge that each such record or document was

prepared by me or persons employed by me who have personal knowledge of the

events being recorded and who had a duty in the course and scope of their

employment to accurately record the events and infomlation contained in such

records and documents at or near the time of the occurrence in the ordinary course of

business, and/or are documents received as prepared from third parties and

accurately maintained as received by me in the ordinary course of business, and were

received and are kept in the ordinary and regular course of my business.

6. The authenticity of the Loan is evidenced by the fact that Cross Defendant Carriere

has acted upon it as authentic in that, among other things, Cross Defendant Carriere

has made payments on the loans at issue and/or has not disputed the amounts

claimed as past due and owing.

7. On or June 9, 1998, Cross Defendant Carriere infom1ed me that she would like to

borrow money from California Consulting Group as an investment towards the

purchase of commercial real property commonly known as 1935 N. Serrano Ave.,

Los Ange]es, CA 90027. Carriere further informed me that she intended on carrying

out the business of leasing the units of said commercial rea] property to collect rent

from the prospective tenants. Additionally, Carriere informed me that she intends

on operating an art business which will occupy a portion of the commercial rental

property. Carriere's art business is estimated to bring in an annual revenue of

$100,000 to $400,000.

11 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATTACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF A1TACl-IMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

. 6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 5839,048

• • 8. On or about June 9, 1998, Cross Defendant Carriere, for valuable consideration,

executed in my presence, a written Promissory Note in the favor of California

Consulting Group (hereinafter referred to as the "Loan AgreemenC), a true and

correct copy of the Loan Agreement is attached hereto as Exhibit 1 and incorporated

herein by reference .

9. Cross Defendant Carriere promised to pay California Consulting Group the principal

sum of One Hundred and Seventy Five Thousand and no 0011 00 ($175,000.00),

together with interest at the rate of fourteen and a half percent (14.50/0) per annum.

10. The Loan Agreement was secured by a Deed of Trust for the property commonly

known as 1935 N. Serrano Ave., Los Angeles, CA 90027 ("subject property") and

legally described as Lot 45 of Tract No. 3823, as per map recorded in book 41, page

78 of maps in the office of the county recorder of Los Angeles County, APN 5587-

024-020, recorded on December 28, 1998 in the Los Angeles County Recorder's

Office as Instrument number 982343686.

11. The Loan Agreement provides that --5 years PLUS 30 DAYS after date, for value

received, the undersigned maker(s), promise(s) to pay to CALIFORNIA

CONSULTING GROUP ... the principal sum of One Hundred and Seventy Five

Thousand and no/1 00 DOLLARS, with interest from 1 July 1998 on the unpaid

principal at the rate of 14~ percent per annum, payable NOT LESS THAN

ANNUALLY ON OR BEFORE JULY 1."

12. Additionally, pursuant to the Loan Agreement, if interest is not paid when due, it

shall thereafter bear like interest as the principal, but such unpaid interest so

compounded shall not exceed an amount equal to simple interest on the unpaid

principal at the maximum rate permitted by law.

12 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATr ACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 58.19,048

• • 13. FUl1her, should default be made in payment of interest when due, the whole sunl of

principal and accrued interest shall become immediately due, without notice, at the

option of the Cal ifornia Consulting Group.

14. On or about June 9, 1998, in express reliance thereon, California Consulting Group

disbursed funds to Cross Defendant Carriere for the purchase of commercial real

property.

15. Thereafter, on or around February 22~ 2003, Cross Defendant Carriere executed and

delivered to California Consulting Group a Loan Agreement renewing the 1998 Loan

Agreement pursuant to which she promised to pay present and future obligations to

California Consulting Group. ("2003 Loan Agreement") A true and correct copy of

said Loan Agreement executed and delivered in 2003 is attached hereto as Exhibit 2

and incorporated herein.

16. The 2003 Loan Agreement was secured by a 2003 Deed of Trust against the property

commonly known as 1935 N. Serrano Ave.~ Los Angeles, CA 90027 and legally

described as Lot 45 of Tract No. 3823, as per map recorded in book 41, page 78 of

maps in the office of the county recorder of Los Angeles County, APN 5587-024-

020, recorded on October 9, 2003 in the Los Angeles County Recorder's Office as

Instrument number 033025404.

] 7. The 2003 Loan Agreement extended the maturity date to 2008. However, when the

note matured in 2008, Cross Defendant Carriere was yet again unable to make the

payments due pursuant to the renewed 2003 Loan Agreement.

18. Cross Defendant Carriere and I, on behalf of California Consulting Group, had

extensive discussions with regards to revising the 2003 Loan Agreement to include a

lower interest rate. Cross Defendant Carriere represented that she is unable to make

payments under the loan agreement due to the economic crisis.

13 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATTACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE: DECLARATION OF WILLIAM N. GREENE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

926098.1 5839.048

• • 19. Therefore, on or around October 9, 2008, to assist Carriere with repayment of the

loan, California Consulting Group and Cross Defendant Carriere renegotiated the

terms of the Loan Agreement and California Consulting Group agreed to indefinitely

extend the tenus of the loan until Cross Complainant notified Carriere otherwise.

20. Cross Defendant Carriere yet again defaulted under the Loan Agreement by, inter

alia, failing to make the payments under the Loan Agreement that fell due on

November I, 2008, and by failing to make any subsequent payments that fell due

under the Loan Agreement.

21. On behalf of Cal ifornia Consulting Group, I ultimately notified Carriere that the

maturity date under the Loan Agreement shall be extended to April 2012.

22. By reason of Carriere's default, I, on behalf of Cross Complainant, exercised the

option to declare the entire unpaid balance under the Loan Agreement to be

immediately due and payable.

23. Despite Cross Complainant's demands, Cross Defendant ultimately failed to pay the

balance due under the Loan Agreement. Attached hereto as Exhibit 4 is a true and

correct copy of the July 22, 2012 demand letter I sent to Defendant.

24. On or around October 5, 2012, Carriere further defaulted under the Loan Agreement

by, inter alia, tiling a Complaint disputing the validity of the 2003 Deed of Trust

claiming that the 2003 Deed of Trust is a forgery, California Consulting Group does

not have a valid security interest and no monies are owed by Carriere to Cross

Complainant.

25. Cross Complainant performed all the tenns and conditions on its part to be

performed with relation to the above referenced Loan Agreement, except for such

terms and conditions as have been excused by the conduct and breaches of Cross

Defendant, if any.

]4 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO ATI'ACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE: DECLARATION OF WILLlAM N. GREENE

926098.1 5839.048

• • 26. As of November I, 2012, under the Loan Agreement, there was due, owing and

unpaid by Cross Defendant, the principal sum of $175,000.00 and accrued interest in

the additional sum of$587,060.78, for a total sum of $762,060.78.

27. Cross Complainant is infonned and believes that Cross Defendant owns an interest

in the following property that is subject to attachment:

a. 1935 N. Serrano Ave., Los Angeles, CA 90027

Legal1y described as: Lot 45 of Tract No. 3823, as per map recorded

in book 41, page 78 of maps in the office of the county recorder of

Los Angeles County. Assessor's Parcel No: 5587-024-020

b. Any other real property, personal property, equipment, motor vehicles,

chattel paper, negotiable and other instruments, securities, deposit accounts,

safe deposit boxes, accounts receivable, general intangibles, property subject

to pending actions, final money judgments, and personal property in estates

of decedents, pursuant to CCP §487.01 O(c), and community property that

qualifies under the criteria subject to attachment pursuant to CCP §

487.01 O( d).

28. Cross Complainant has no infonnation or belief that the claim is discharged in a U.S.

Code Title 11 bankruptcy proceeding or that the prosecution of the action is stayed in

a Title 11 proceeding.

15 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO A IT ACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATrACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE

.... ,.: r."

• • ,"

t 29. Cross Complainant is entitled to a \Vot of At1achmeni against Cross Defendant for

2 the unsecured debt based upon the Loan Agreements in the following amount

3

4

5

6

7

8

Principal

Interest at the rate of t 4. 5% per annum

TOTAL

$175,000.00

$587,060.78

S 762,060.78

I decJare under penalty of pe1jUI)' Wlder the laws of the State of California that the

forgoing is true and correct, except as to such matters as are set forth upon information and 9

10 belief, and as to such matters, I believe them to be true.

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

Executed this 3Td day of December, 201~ at Los Angeles, Californ.ia.

WTI.,LlAM N. GR£&'.iE on behalf of California. Consulting Group dba . California. Consulting Group InternationaJ

~~U~,O.I. 16 MP .. \(ORAJoiDUM OF POIl\7S A:."ID At.mlORITIES m SUPPORT OF APPLlCA nONS FOR RlGHT TO A IT ACH ORDERS

ANO OROW FOR-ISSUANCE OF WRITS OP AlTACHMENT AGAINST CROSS DEfEt\OA~j 'K.AR.El\ DE LA CARRJ6RE: DOCLARA nON OF W1LLJA.\t N. GR.E£NE

II

1

.'

• •

EXHIBITl

• - --- _ .... (. ~ ... - .... •

o ~

AECOROING RECU£S'TEC BY

AND WHEN RECORDED MAlL THIS DEEO Alii.>, UNLESS OTHERWISE SHOWN BEl-OW, MAIL lAX Sl.A.TEMEN1S TO~ ,. NAM!

STREET ADDRESS

CITY

STATE ~I" L. •

()'Jvt h {trJJ 5 u}; t/ ift, C;R~

1{)37 N. vlClfNiJ ~ S~ I (II7ItN It ('A- Q,12/6

Title Order No. ~scrow No.

COJf'\I"'~{ ) ..:J i_ Of Do.=urnent Recorded

DEED OF TRUST AND ASSrGNMENT OF RENTS

~ TH1S DEED OF TRUST. made this 91i1 day Of,_J_!A_N..;;:~:;;....--______ ~ _______ 1_'9_t;_e __ '"'\ between k If-',Z irJ ge Ut {IT R f( J E'g; ()

t! 00 = \\C'1 ____ --______ ~----------~----""!'_-------. herein called Trustor.

~ whose address is I q? :3 tJ.. -,. '? eRRA-fJ' 0 Lat? A Iv6 t' te 5 {'4 f tJ~ 2'1 ~ --------------~~(N~~-'U~.~A-HO-5~f~~----------~~~~~,C~llr~)~~~17--~~--~ls~"-n~t-----(~ZI~~I-

~ 'L 't

el1UH:JIZ/.,/11i Q;~t( l i';;b bffoufJ , herein caUed Trustee. and -------------------------------------------------------------_~·t?""___r_g ___ 7t-;.-'2_U_>_'_-._1 ________________ --_______ ' herein caned Beneficiary.

Trustor irrevocably grarns.. transfers and assigns to Trustee, in tl'1Jst. witn power ot sale. all that real property in the City of

, 'Los ANuG'l.€S I County of ~O"5 AtJtJJelA:~.S , State of CA. . described as:

! :

j q '35 tV. .GG~!Z1ilJ () fJ-v l , Lo'!, ;V-N(; ~f.,£» (A 9 (J~i7

Un ~5 IRftCT 3g-z:; i3:x;;c '/3' i'l1c87t, {PUAJ1y·t11:: LtJ.s ANGel-iPS /}~~55(}~ l?~tJ

TOGETHER with aU rights. privileges. tjtle an(~ interest which Trustor now has Of may hereafter acquire in or to said property. ,.. including. without JUnitationJ the rents, is!.ues and profits thereot. and with the appurtenances and aU buildings and ~I improvement:. nC)w C)r hereafter placed ther~Dn. it being understood and agreed that all classes of property. attached or ~: unattached, used in connection therew~th shall 6e deemed fixtures and subject to the propertY above described;

'. r' SUBJECT, HOWEVER, to the right. power and authority given to and conferred upon Beneficiary ,hereinbelow to collect and d apply such rents, issues and ptofits; .

(For purposes of this instrument all of the foregoing described property. property 'rights and interests shalt be referred to as "the propertY •• ') ,

~" ~~l

" 1\1 "",. "

~H'IJ4\\.\\"\\\~~Y"~'~1VT"'~ff.:Z:'~\\'\\'\-":'';':';'>>>.I.1.1II~\\\\\I.\~~/A\~;~~#m)'''''~\\\\\''''''''H''''''''W'''''''''''"'''''''''~''li!i ~ • § Thi~ beed of Trust is for the purpose of s curing: 1. Payment of tile indebtedness in t tincipal sum of $ 11:'3, tJtJO ~,

eviden<::ed by that certain promissory note of even date herew.th made by rrustor. or anyone of them. payable to Beneficiary o~ order, and nny OMlension Of renewal thoroof. which promissory nOI" is suhstnntilllly in the (ollowirlD (orm; 2. Porfo/mance of each 8greement of Trustor conninC!d Ot incorporallJd heroin by referenco; J. Payment 0' suer. sums as may bo advanced by BenefiCiary or Trustee to protect the securit\' in accordance with the terms of this Deed of Trust, plus intt!rest thereon at the rate set fortn in said Qromissorv note; and 4. Payment of such further sums as may be advanced by Beneficiary when evidenced by another promissory note lor promissory notes) reciting it is so secured.

PROMlSSORY NOTE - STRAIGHT SECURED BY DEED OF TRUST

iS1 ... ,[)

-_+-' ___ -....; __ ...IO.IJ-"--=--=-...:::....~-""-------- after date. for value received. the undersigned maker(s) promise's) to pay to (N,Uf;'" O. OI.\iI. MOII1I.' .. ' lOti. Yl"H~1

C4y1b?JZ)J/)t (O/,./C]U L 7/~"& hf:tll-t'"

____________________________________ ~--------~--~------------------------------------------. oro:der

§(,fll/' 171.-1 LC k'//itA at - J I

with jrn;~rr,t from __ ..L.-"'-:"~~_"':""~ ...::::.... __________________ on the unpaid principal at the rate 01

.. l... Nf) LJ~~5' Tt-If.trJ

Should interest not be paid when due, it shall thereafter bear like interest as the p ncipal. but such unpaid Interest so compounded shall not exceed an amount equal to simple interest on the unpaid princlQaf at the maximum rate permitted bV Jaw. Shou'd default be made in payment of interest when due, the whole sum of principal and accrued interest shall become immediately due, without notice. at the option of the holder of this note, Interest after maturity will accrue at the rate indicated above. Princil)al and interest are payable in lawfuJ money of the United States. Each maker will be joint IV and severally liable, and consents to the acceptance of security or substituted security for this note, and waives presentment, demand and protest and the rtght to assert any statute of limitations. A married person woo signs this note agrees that recourse may be had against hi.s/ller separate property for any obligation contained herein. If any action be instituted on this; note. the undersigned promise(s) to pay sue', sum as the Court may fix as attorney's fees. This Note is securedbv a Deed of Trust of even date erew:th.~~

I-...-...l"""'-----. - •.••. ------. w •• __ • _____________ _

protect the security of this Deed of Trust. Trustor agrees:

(H To keep the property in good condition and repair; not to rernove. substantially alter or demolish imy building thereon: tc complete or restere promptly and in good and workmanlike manner any building which may be constructed, damaged or destfoyec thereon and to pay whet' due aU claims for labor performed and materials furnished theretor; to comply with all laws affecting thf property or f'equiritlg any alterations or impro"ements to be made thereon; not to commit or permit waste thereof; not to commit suffer or permit any act upon lhe property in violation of law: to cultivate, irr~gate. fertilize, fumigste, prune and do all other act: which frolT\ the character or use 01 the property may be reasonably necessary, the specific enumerations herein..:not excluding th1 gener"l.

12) To prOVIde, maintain and deliver to Bene{tciary fire and. if required bV Beneficiary, other insurance satisfactory to and witl loss paYil~le to Beneficiary. The amount collected under any fire ot other insurance policy may be applied bV Beneficiary upon an' IIldebtl::dness secured heteby and in such order as Beneficiarv may determine. or at option of Beneficiary tile entire amount s collected or any part thereof may be released to Tfustor. Such application or release shall not cure 01 waive any default or notic of default hereunder or invalidate any act done pursuant to such notice • .

(3' To appear in and defend any action or proceeding purporting to affect the security hereof or the rignts or powers ( Beneficiary or Trustee; and to the extent permitted by law, to pay aJI costs and expenses. includ;ng the cost of evidence of title an anamey's fec:., in any such action Clif pr()ceeding in which Beneficiarv or Trustee may appear, and in any suit brought by Beneficiaf to foreclose this Deea of Trust or enforce the rights of Beneficiary or Trustee hereunder.

~; f4) To pay: allea~u ten days belore delinquency all taxes and assessments affecting the property, including assessments c • Dppultenilm water ~tock: when due. aU encumbrances, charges and liens. with interest, an the property or any part thereof, whit

appear to be prIor or 5ullerior heretoj and all costs, fees and expenses of this Trust to the elCtent permitted by Jaw .

. (5). Should Tnlstor f~il to make any payment Of to do any act as herein provided. then Benefieiary or Trusteel

but withol obhgatlon to do so, a~ ~lthout notice to 01 demand upon Tr':lstor, and without refeasing Trustor from any obrigation hereDf

l rna

make or do ahe same In such manner and to siJch extent as eIther may deem necessary to protect the security hereof, Beneficia RECORD PAGES 1,42,3 & 4 ONLY, Page 2 of 6

f'"' ~.I ....

~~\.'(~\\\~~~~'llt~\;\\·,\·~~': .. ~.~··:I .. ~.& • .,.,\~: ~ •. ~::.~~;::a';;,~"'~~ '!'~ ~,\\ ,:'> .. ";''-~ ::"::~,;.;~' . .-:. '. '. ~,\ .. , , . /11:' ~ ~', ""\',I~\· ... ~. ~ ;' ... ~.t . . f ..... ". .','" : .. 4. ~.' .': .... • " ..... I'. '.'.'.0.-""""" "U" .. ,"--..... ",_-" .,.. ~ ~ a or Trustee being authorized to enter upon property for such purposes; appear in and d. any action or proceeding purporting to aff~t the secudty hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any :"ncurnbrance, charge or lien which in the judgment of either appears 10 be prior or superior heteto; and. in exerciSLng any such powers. pay necessary expenses, employ counsel and pay his reasonable fees. .

(6) To pay immediately and without demand all sums expeAded by Beneficiary or Trustee pursuant to the terms of this Deed of Trust, with interest from date of expenditure at the rate set forth in the aforesaid promissory note.

(7) . That any award of damages in connection with any condemnation for public use or injury to said property or any. part thereof is hereby assigned and shall be paid to beneficiary who may apply or release such moneys received by him In the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance.

f8) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured ot to declare default for failure so to pay.

(9) That at any time. or from time to time, without tiability therefor and without notice. upon written request of Beneficiary and presentation of this Deed of Trust and said promissory note for endorsement, and without affecting the persona' liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of the property; CO/lsent to the making of any map or plat thereof; join in granting any easement thereon; or join in any e)(.tension agreement or any agreement subordinating the lien or charge hereof.

(101 That upon written request of Beneficiary stating that all sums secured hereby have been paid, And upon surrender of this Deed of Trust and said promissorv note to Trustee for cancellation and retention and upon repayment of its lees, Trustee shall reconvey. without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shaU be conclusive.proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person 0( persons legally entitled thereto."

(11) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and autnority, during continuance of these Trusts, to collect the rents, issues and profits of the property, reserving unto Trustor the right. prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents. issues and -profits as they become due and payable. Upon any such default, Beneficiary may at,any time without notice; either in person, by agent. or bV a receiver to be appojnt~d by a court. and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of the property or any part thereof, in his own name sue for or otherwise coUect such rents issues and profits. incl\Jding those past due and unpaid. and apply the same, less costs and expenses of operation and coJ,lection, including reasonabfe attorney's fees. upon any indebtedness secured hereby, and in such order 8S

Beneficiary may determine. The entering upon and taking possession Qf tne property, the collection of such rents, issues and profits and the application thereof as aioresaid, shall not cure or waive any default or notice of default hereunder or invalidate any act dena pursuant to such notice.

(12) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneflciarv may declare all sums secured hereby immediately due and pavable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold the property, whIch notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust. said promissory note and all documents evidencing expenditures secured hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee. without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale. either as a whole or in separate parcels, and in such order as it may determine, at public auction . to the highest bidder tor cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale. and irom time to time thereafter may postpone such sale bV public announcement at the time fixed by the preceding postponement, Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant Of' warranty, expressed or implied. The recitals in ~uch deed of any matters or facts shall be conclusive proof of tne truthfulness thereof. Any person, including Trustor. Trustee, or Beneficiary as hereinafter defined, may purchase at such safe.

After deducting all costs. fees and expenses of Trustee and of this Trust to the extent permitted by law, inctuding the cost of evidence ot title ,n connection with such sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid. with accrued interest at the rate set forth in the aforesaid promissory note; all other sums then secured hereby; and the remainder, if any, to the person or pSC'sons legally entitled thereto.

Immediately after such sale, Trustor shall surrender possession of the property to the purchaser, in the event possession has not previously been, surrendered by Trustor, and upon failure to vacate the property, Trustor shall pay to the purchaser the re~sonDbfe rantal value of the property. and lor at purchaser's option, may be dispossessed in aecordance with the law applicable to tenant's holding over. ~.i

~" -..., !-. (1:31 That Trustor, or jf rhe property shall have been transferred. the then record owner. together with Beneficiary, may from tlJ 'time to time. by instrument in writing, substitute a sUCcessor or successors to any Trustee named herein or acting hereunder, which

instrument, executed and acknowledged by each and recolded In the office of the recorder of the county or counties where the property is situutctJ, s/UJll be conclusive proof of prop or substitution of such successor Tru.sluo ur Trustees, who shalt without conveyance from the Trustee predecessor, succeed 10 all its title. estate, rights. powers and duties. Said instrument must contain the name of the original T~ustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded, the name and address ot the new Trustee, and such other matters as may be required by law. If notice of default shall have been recorded. this

. RECORD PAGES " 2,3 & 4 ONLY, Page 3 of S

! "~ '--~./.67'n/4l.\\\\\\\~.8"'\\~~f\~~~\\\\\\\~I1I1/~:(\\\\\\\\\'~/A\\'\'\"~.wU// .... ".\\\"'H.WH~.r_""'\ ..... __ " ...

po;-.. ~r of &ubstit~tion cannot be exercise until after the costs, fees. and expenses of taen acting Trustee shaH havs bee .... paid to su~h Trustee. who shall endorse receipt thereof upon such instrument of substitution. The procedure herein provided for substitution of Trustoes sh.all be excfusiv8 of ull othor provi$ion~ for substitution, statutory OJ otnerwiso. to the extant permitted by law.

114) That this Deed at Trust applies to, "inures to the benefit of. and binds all panies hereto, their heirs. legatees. devisees, administrators. executors, successors and assigns. The term &neficiary shall mean the owner and holder, including pledgees, of the promissory note secured hereby. whether or not named a$ "Beneficiarv herein. In this Deed of Trust. whenever the context so requires, the masculine gender includes the feminine and/or neuter, and. the singular number inctudes the plura', and ~II obligations of each Trustor hereunder are joint and several.

(15) That Trvstee accepts this trust when this Deed of Trust, duly executed and acknowJedged, lS made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiarv. or Trustee shall be a party unless brought by Trustee.

416) Without affecting the liablJitv of Trustee or of any other party now or hereafter bound by the terms hereof for any obligation secured hereby, Beneficiary may. from time to time and with or without notice 8S he shall determine, release any person now or hereafter liable for the performance of such obligation, extend the time for payment or performance, accept additional security. and after, substitute or release any security. .

(17) Trustee or Beneficiary mav enter upon and inspect th.e premises at any reasonable time.

(18) No remedy hereby given to Benefici;:t!"y or Trustee is exclusive 01 any other remedy hereunder Oi under any present or future law. No delay on the pert of Trustee ar ael'"~ficiary in enforcing their respective rights or remedies hereunder shall. constitute a waiver thereof.

(191 Trustor waives the right to assert at any time any statute of limitations as a bar to any action brought· to enforce any obligation hereby secured.

(20) Should Trustor, without Benefieiary's written consent, voluntarily sell, transfer or convey his interest in the.f)roperty or any part thereof. or if by operation of law, it be sold. transferred or conveyed, then Beneficiary may, at its option, declare all sums secured hereby immediately due and payable. Consent to one such transaction shall not be deemed to be a waiver of the right to require suc:h consent of future or succ:essive transactions.

(21) The invalidity or unenforceability of any provision herein shan not affect the validjty and enforceability of any other provision.

Each undersigned Trustar requests that 8 copy of any Notice of Default and af any Notice of Sale hereunder shall be maJled to him ~t the ad ress hereinab e se orth.

STATE OF e ~ L; I=' ~j;),.; LA COUNTY OF t.. ~ S" fi N' 6' 6- t. f:S

On t ... q .. 9 'Z before me, -~-/4""'IN~~::;l"""h=!?"'-:'I~'I . ...,:r.:"":;'I<t~"'''''';Q''''''''''''''':O"", fI\l"""~""'c: ... ~_A-__

e or Drove to"me on t e aSls 0 sallS actory evidence) to be the person(1ol whose name's) is/ale subscribed to thawithin instrument and acknDwledged 10 me that belshe/tRey executed the sime in hiGlher/Mir authorized capBcity(ie6), and that by N/her/~r ,ignatutel~ on the instrument the person", or the entity upon behalf of which the persentet act~.d. elrecuted the instrument.

... : ~ .:: .. .I. " ,"a •• ',.

RIGHT THUMBPRINT .OJuionaU

RECORD PAGE.S 1, 2. 3 &. 4 ONLY, Page 4 of 6

RIGHT THUMBPRINT COptionall

•

CAPACITY CLAIMED BV SIGNERIS o iNDIVIDUAL(51 o CORPORATe _____ -

OfFICERS ____ ~~-fTlT\.1SJ

o PARTNERrS) CJ LIMITED OGENERAt

o ATTORNEY IN FACT a TRUS'EEtS)

8 GUARorA.N/CONSE~VATOR OTHfR ______________ _

SIGNER IS REPRESENTINCi: CNAME 0' P£A~OHISI OR ENfllYltlS»):

r.,i

'", ~.: ~I

•

, .. , ~\I

"

• •

~: EXHIBIT 2

• AECORDING REQUESTED BV

AND WHEN RS:OROED MAIL 1lflS OErn MID, UNlESS 0TtERW1S£ SHOWN eaow, t.Wl TAX ST1TEMEHTS TO!

~AME ~tRJR#J IJ}.CoIf~L1i IJC (2;f((llJ P ~~ '031 tJ. G2JrND Alt stt ,,q CITY

~ATE CbV1i,A I CA <i-li2~ .J

rltla Order No. t:£crow No.

•

SPACE -ABavt;: nos UNE FOR RECORDER'S USE

f\\~.H'HU~\\\\\\~A\~#~\'~~\\~\\\~/.II1~\\\\\~~A\~\\\\'~~\\\\\\~~W,~

~. - -DEED OF -TRUST AND ASSIGNMENT OF RENTS - - ~

THIS DEED OF TRUST, made this - ~2 day ~f ----::R';......;:;..6~@AJ..;;;...;;;..~f.::II.oOj~-~--------, 71X73 , ~tween KFtRetJ ~ Ur, CIRP ,ete

_______________ ..,....-_____________ -------. herein called Trustor,

whose address is I q35 N., 5 e:BC&tO -l..t,g AN earu s cA q ()oz,1 (NUWUR ANO S1RfE11 ICITYI tSr,.T£1 (21)1

_~CM..::.....&.a."-I.I"ll;;"C<JONK.:'" .=&..3I:..&..·tfJ..-.........;;Q::..,.)y\;....a...:..:S:&.;:u::..=......-L....=.;7{~I\J.;:.. .. (j~G~~~~p~ ___________ , herein called Trustee, and

__ ~po....lt~Q..---1}:L..f.:...JWIllt..:loolS'1,,-~---------------------........... --, herein call~d Beneficiary.

Trustor irrevocablv grants, transfers and assigns to Trustee, in trust, with power of sale, aU that real property in the City of

Los AN ~ 1.2 S ' County Of' U9,s fi:N£e tiL S . State of CPt ' described as;

1 {t3 5 f\J. SeRiJ.Irr.m /1J ~} Lt; 5 Aw tJiLM } (A q (J(J2. 7 Lb, 1t5 TiA er 3R Z3 J30K q3 PIU 7~ Q,r.t~j rJf; L05 Mq'lLts ~t)(l Raetl>

TOGETHER with an rights, privileges. title and interest which Trustor now has or may hereafter acquire in or to said property. including, without limitation, the rents, issues and profits tllsl80f, and with the appurtenances and all buildings and improvements now or hereafter placed thereonj It being understood and agreed that all classes of property, attached or unattached. used in connection- therewith shall be deemed fixtures and subject to the property above described;

SUBJECT, HOWEVER, to the right, power and authority give.n to and conferred upon Beneficiary hereinbelow to collect and .fppty such rents. issues and profits; -",

IF-or purposes of this instrument aU of the foregoing described property, property rights end interests shall be referred to 3S '·the p,f.operty." )

~AILTAXSTATEMENTTO: Iq3S I'J. S~) k~ McgelRS C4 Qtf)(}'Z7

wouxms FORM sa· fl:lllce das$ W "1999 WOlOOTTS FORYS, INC. DSEDOF lRUST ANDASSIBNMENT OF R£NTS WITH PRQt.QSS()Ry ~--STRAIGHT ~Ih ptatrer of Iii8Ie aM 'oVI1h request for M nICCWlvePICC) • rov. &o.fi

RECORD PAGES 1,2,3 & 'ONLY, Page 1 018

r TlUs Deed of Trust is for the purpose of securing: 1. Payment of the indebtedness in the principal sum of $ I

evidenced bV that certain promissory note of even date herewith made by Trustor, or anyone of them, payable to Beneficiary or order, and any extension or renewal thereof, which promissory note is substantially in the following f01m; 2. Performance of each agreement of Trustor conteined or incorporated herein by reference: 3.' Payrnen1 of such'sums as may be advanced by Beneficiary or Trustee to protect the security in accordance with the terms of this Deed ot Trust, plus interest thereon at the rate set forth in said promissory note; and 4. Payment of such further sums as may be advanced by, Beneficiary when evidenced by another promissory note for promissory notes) reciting it is so secured.

PROMISSORY NOTE - STRAIGHT - SECURED BY DEED OF TRUST

tDATfJ

5 YI~ P14H,.3t2 ~s after date, lor value received, the undersigned maker's) promise(_) to pay to iUJll(;, DAYS, MoHTt6 AJIDIoa YlAASl

CIl{J, foI2J,J."j/r Om ~u.l;r Me. 0&2 a p t or order

-at ==lD=D=1=~=/.=~:~o.J.I..-~-JQ==&:=~':, =g:(.t,=if.=~ ='=I=Q:) =a=<1l1:'N:· A==J::C;4.==Q:,7=-Z:g========= __ t:'IV£ ntzJuG &tflJ 4vrD AttJittt!) DOLLARS,

I the sum of $ fJtJN12PiP P1'lv~ with int~rest from Z,Z R(S 2ft8 on the unpaid principal at ~he rate of

19~1 p~~~p~~~m,p~a~~N~~~~~~~_~~~~~~~~~~~~~~_~~~~ Should interest not be paid when due, it shall thereafter bear like interest as the . Incipal, but such unpaid inter t so compounded shall not e)(ceed an amount equal to simple interest on the unpaid principal at the maximum rate permitted by law. Should default be made in payment of interest when due, the whole sum Df principal and accrued interest shall become immediately due, without notice, .at the option of the holder of this note. Interest after maturity will accrue at the rate indicated above. Principal and interest are payable in !awful money of the United States. Each maker will be jointly end severally liable, and consents to the acceptance of security or substituted security for this note, and waives presentment. demand end protest and the right to' assert any statute of limitations. A married person who signs this note agrees that recourse may be had against his/her ,separate property for any obligation contained herein. If any action be instituted on this note, the undersigned promisees) to pay such sum as the Court may fix as attorney's fees. This Note is secured by a Deed of Trust of even date herewith. ' '

To protect the security of this Deed of TruS't1 Trustor agrees: ..

(1) To keep the property in good condition and repair: not to remove, SUbstantially alter or demolish any building thereon; tD complete or restore promptty and In good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due aU claims for labor performed and materials fumished therefor; to comply with atl laws affecting the ptoperty or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof: not to commit, suffer or permit any act upon the property in violation af law: to cultivate, irrigatel fertIlize, fwnigatel prune and do all other acts which from the character or use of the property may be reasonably necessary, the specific enumerations herein not excluding the general. .

(2) T.o provide, maintain and deliver to Bene~ciary fire and, jf required by Beneficiary, other insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy. may be applied by Beneficiary upon any indebtedness secured hereby and in such order BS. Beneficiary may determine, Dr at aption, of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Sue" ap'plication or release shan not cure or waive any default or notice

I'" ,of default hereunder or invalidate any act done pursuant to such notice. ' l\' '. ~j

t" ~: "I

(3) To appear in and defend any actton or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to the extent permitted by law. to pay all costs and expenses, including the cost of evidence of title and attorney's fee~. in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust or enforce the rights of Beneficrarv or Trustee hereunder.

(4) To pay: at least ten days before de1inquency aU taxes and assessments affecting the property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on the property or any part thereof, which appear to be prior or superior hereto; and ail costs, feas and expenses of this Trust to the extent permitted by law.

or Tru!tee being authort2ed to enter upon Jlapropertv for such purposes; appear in and d_ any action or proceeding purporting to affect the security hereof or the rig., powers of Beneficiary or Trustee; pay,.chase, contest or compromise any encumbr8l'lce, charge or lien which in the jUdgment of either appears to be prior or supenor hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees.

(6) To pay immediately and wlthout demand all sums expended by Beneficiary or Trustee pursuant to the terms of this Deed of Trust, with interest from date of expenditure at the rate set forth in the aforesaid promissory note.

(7) That any award of damages in connection with any condemnation for public use or injury to said property or any part thereof 1s hereby assigned and shall be paid ta beneficiary who may applv or release such moneys received by him in the same manner and with the same effect as above provided for dispositKln of proceeds of fire or other insurance.

(8) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default fDr failure so to pay.

(9) That at any time, or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed Df Trust and said promissory note for endorsement, and without affecting the personal liabilitv of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of the property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinatrng the lien or charge hereof.

{10} That upon written request of Beneficiary stating that aU sums secured hereby have been paid, and upon surrender of this Deed of Trust and said promissory note to Trustee for cancellation and retention and upon repayment of its fees. Trustee shan reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfurness thereof. The grantee in such reconveyance may be described 8S lithe person or persons legally entitled thereto."

(11) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during continuance of these Trusts, to collect the rents, issues and profits of the property, reserving linto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents. issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by 8 court, and without regard to the adequacy of any security for the indebtedness hereby secured. enter upon and take possession of the property Of Bny part thereof, in his own nama sue for or otherwise collect such rents issues and profits, including those past due and un~aid, and apply the same, Jess costs and expenses ot operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of the property, the collection of such rents, issues and profits and the application thereof as aforesaid, shaH not cure or waive any default or notice of default hereunder or lnvalidate any act done pursuant to such notice. ~

(12) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately d\,l9 and payable by deHverv to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold the property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust, said promissory note and aU documents evidencing expenditures secwed hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of defaUlt, and notice of sale having been given as then requited by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from t~me tD time thereafter may pllstpone such sate by pubHc announcement at the time fixed by the preceding postponement. Trustee sha!.! deliver to such purchaser its deed conveying the property so sold. but without any covenant or warranty. expressed or'imptied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any perSon, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.

After deducting aU costs. fees and expenses of Trustee and Qfthis Trust to the extent permitted by law. including the cost of evidence of title in cannectiofl with such sale, Trustee shall apply the proceeds of sale to payment of; aU sums expended under the terms hereof, not then repaid, with accrued interest at the rate se~ forth in the aforesaid promissory note: aU other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto.

Immediatelv after such sale, Trustor shan surrender possession of the property to the purchaser, in the event possession has not previously been surrendered by Trustor, and upon failure to vacate the property, Trustor shall pay to the purchaser the reasonable rental value of the property. and/or at purchaser's option, may be dispossessed in accordance with the law applicable 19 tenant's holding over. ~' 1:',-

~j (13) That Trustor, or if the property shan have been transferred, the then record,owner, together with Beneficiarv, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which Instrument, executed and acknowledged by each and recorded in the office of the recorder of the county or counties where the property is situated, shall be r:::onclusive proof of proper substitution of such successor Trustee or Trustees. Who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book. and page where this Deed is recorded, the name and address 01 the new Trustee, and such other matters as may be required by law. 'f notice of default shall have been recorded. this

gcrl\~n D.6~CC: 1 ? '1 .. .4 fUJI V Pili,... '1 ",f :::.

". ~: Clr

~~~,~.un"'\\\\\\.~4\\\.~~~~f!i

power of substitution cannot be exercisAtH after the costs. fees, and expenses of t.n acting Trustee shalf have been pa~ to such Trustee, who snail endorse receipt thereof upon such instrument of substitution. The procedure herein provided for substitution of Trustees shaJi be exclusive of all olher provisions for substitution, statutory or otherwlse, to the extent permitted by Jaw.

Ii 4) That this Deed of Trust applies to, inures to the benefit of, and binds aU parties hereto, their heirs I legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the promissory note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trustl whenever the context so requires, the masculine gender inctudes the feminine and/or neuter, and the singutar number includes the plural, and aU obligations of each Trustor hereunder are joint and several.

(15) That Trustee accepts this trust when this Deed of Trust, duly e)(ecuted and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding In which Truster, B"eneficiary, or Trustee shall be a party unless brough~t by Trustee. '

{161 Without affecting the riabifity of Trustee or of any other party now or hereafter bound by the terms hereof for any obligation secured hereby, Beneficiary may. from time to time and with oc without notice as he shall determine. release any person now or hereafter l;abJe for the performance of such obiigation. extend the time for payment or performance, accept additional security, and alter, substitute or release any security,

(17) Trustee or Beneflciarv may enter upon and inspect the premises at any reasonable time.

{1 8) No remedy hereby given to BenefiCiary or Trustee is exclusive of any other remedy hereunder or under any present or future law. No deray on the pert of Trustee or Beneficiary in enforcing their respective rights or remedies hereunder shall constitute a waiver thereof.

(19) Trustor waives the right to assert at any time any statute of limitations as a bar to any actton brought to enforce any obligation hereby secured.

(20) Should Trustor, without Beneficiary's written consent, voluntarilv sell, transfer or convey his interest in the property or any part thereof, or if by operation of law, it be sold, transferred or conveyed. then Beneficiarv may, at its option r declare all sums secured hereby immediately due afld payabte. Consent to one such transaction shall not be deemed to be a waiver of the right to requite such consent of future or successive transactions.

(21 ) The invalidity or unenforeeability of any provision herein sha!1 not affect the validity and enforceability of any other provision.

Each undersigned Trustor requests that a copy of any Notice Qf Default and of any Notice of Sate hereunder shall be mailed to him

al Feu hereinabove set fort,/-I _ - '-- "

:~ ~i£4tC cJ;../L LaJ(J)/l.e,/Lt.

COUNTY OF.., "---"~..#C--.f-:"t-J!'!=-#--=--

~ ! on;2. .. 2' -6 ? before e :l ;:) :r l-IL. 0

"" 0 ...

RIGHT THUMBPRINT (OPtional.

~

CATfRNJA SOLOMON CommlssJon f. 124790S

RIGHT THUMBPRINT (C>QtioneU

~ ! ID ".:Ii :::I ;t t-... 0

~ ,..

CAPACITY CLAIMED BY SIGNER(S) 4INDlVIDUAl{S) IT CORPORATE _____ -

OFFtCERS __ ~ ....... -....-__ rTrru-s}

o PARTNER(S' 0 LIMITED o GENERAL

o ATTORNEY IN FACT o TAUSTEECS~ o GUAAOIANICONSERVA TOR [] OTHER ____ ---_

'--.

~" 1,',,1

• •

• •

to .. r,1 ..... ,

~: EXHIBIT 3

~ ~

..1..'­·T~~

·~:r."''!;::'/~T

• tV

• FILED

loa Angeles Superior Cou

Cart E. Kohlweck. Esq. (SBN 087139) ~

j 1 28437 Plainfield Dr. ~ C\

Rancho Palos Verdes. CA 90275·3'47 \& iJ Tel: (310) 480-3423 ~\l'

J Email: oeklaw46@aol.com

OCT 05 2012

John A. ~veOftfcer/~rfc By - S • lfY--' Dep ty

~ $-.

~ r:J

... ~ 8 ~

'. ~

9

10

11

1~

L3

14

15

16

17

18

19

to

u

22

2)

24

25

26

n

211

Attorney for Plaintiff KAREN DE LA CARRIER~

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF lOS ANGELES. CENTRAL DISTRICT

KAREN DE LA CARRIERE.

Plaintiff,

vs.

WILLIAM N. GREENE. individually and doing business as CALIFORNIA CONSUL TING GROUP, a business entity of unknown form, R, R TRUST. a business entity of u'nknown form. CALIFORNIA CONSULTING GROUP INTERNATIONAL, a bU$iness of unknown form; All Persons Presentlv Unknown. Claiming Any Legal Or Equitable Right. Tille, Estate, lien, Or Interest In The Property Oescribed In The Complaint Adverse To Plaintiffs' Title, Or Any Cloud On Plaintiffs' Title Thereto: and DOES 1 through 25. inclusive,

Defendants.

Case No.: B C 4 9 3 3 9 3 COMPLAINT

1. Quiet Title (CCP §760.010. et seq.);

2. Cancellation of Instrument Pursuant to Civ. C. § 3412;

3. Declaratory Relief (CCP §1060):

<4. Slander of Title; 5. To Voia Contract Pursuant 10

Cill. C. § 1670.5 6. BreaCh of Fiduciar; Duty; 7. Unfair Business Practices;

and 8. Negligence.

§ t"';l~l)n~ $;"'" ~ ifii" C1S;x-n .... C"'lIu ~ ~ t.

Plaintiff, KAREN DE LA CARRIERE. alleges as follows:

COHl'W~T

~ g

~ ;;S ~ .. '''"} ...:::::~ .-;--­,,":"-..::... .... ~::::,.

l --

t:>:t>n

~a~ ~:~ .... ~ ~~§ ~z_ :::::r,,'" ~J ~ ~ <:> - "­........ 0::0

e05 iii ..

~

,'.

t­el

" ~ ~

~

. , " • •

1. Plainliff is, an individual, and at atl times material herein was, a resident of Lo

4 II Angeles County, California.

2. Defendant WILLIAM N. GREENE is an individual doing business in los

6 Angeles County individuallv as a certified public acx:ounl8nt and under the business

1 names CALIFORNIA CONSULTING GROUP, CALIFORNIA CONSULTING GROUP

8 INTERNATIONAL and R & R Trust. each of which is a business entity of unknown form

~ but which is named as a defendant herein to the extent that each is a jural entity subject

10 to suit in its own name.

11 3. "All Persons Presently Unknown, Claiming Any Legal Or Equitable Right.

12 Title. Estate. lien. Or Interest In The Property Described In The Complaint Adverse To

13 Plaintiffs' Tille, Or Any Cloud On Plaintiffs' Title TherelO' are sued herein pursuant (0

14 California Code of Civil Procedure Section 762.020(&).

15 4. The true names and capacities, whether individual, corporate, associate, or ",.

16 otherwise, of Defendants DOES 1-25, inclusive, are unk.nown to Plaintiff, ~ho therefore

n sues them bV the said fictitious names. When Plainliff ascertains the true names and

18 c:apac:ilies of DOES 1 through 25, she will amend her complaint accordingly. Plaintiff is

1 ~ informed and believes and thereon alleges that some of these fictitious named

20 Defendants claim some right. title. estate, lien, or interest in the hereinafter-described

21 PROPERTY adverse to plaintiffs title and their claims, and each of them. constitute 8

2~ cJoud on Plaintiffs title to that PROPERTY. Plaintiff is informed and believes and

23 thereLJpon alleges that others of these DOE defendants participated with or assisted

24 Defendant GREENE in perpetrating and committing the acts herein alleged. The

25 allegations of this complaint have evidentiary support or are Iik.ely to hsve evidentiary

26 support after a reasonable opportunity for further investigation or discover;.

27

28

COMPLAr~T - 2

•

•

-,

... " 8 , ;;

:~ T .,1 "!"~_/~ 1'"

• • 5. Each of the Defendants named herein are believed to, and are alleged to

have been acting in concert with. as employee, agent. cx:K:Onspirator or member of a

J " joint venture with, each of the other Defendants. and are therefore alleged to be jOintly

and severally liable for the claims set forth herein, except as otherwise alleged.

(Hereafter, unless otherwise specified. defendanls, including DOE 1 through DOE 25

will be referred to collectively as NDefendants").

10

11

12

13

14

l~

16

11

18

19

20

21

22

23

24

2S

26

21

28

GENERAL ALLEGATIONS

6. The real property that is Ihe subject of this case is commonly known as 1935

N. Serrano Avenue, los Angeles, CA 90021 and is described as lot 45, Tract 3823 as

per map recorded in Book 41, Page 18 of maps in the Office of the County Recorder of

los Angeles County. The property is designated es Assessors parcel No. 5587-24-20

in the Assessor's Office of los Angeles County, and is hereinafter referred to as the

'Subject Property:

7. Plaintiff acquired title in the Subject Property by grant deed on May 27. 1998,

a copy ofwtlich is at1ached as Exhibit 1.

8. Plaintiff took possession of Ihe Subject Property on the same date of the

closing in May 1988 and, as of the commencement of this action, is still now and has

been in continuous possession of the Subject Property.

9. At the time Plaintiff acquired the Subject Property, and continuing unlil April

2012, Defendant William N. Greene, as a Certified Public Accountant, provided

professional accountancy services to Plaintiff. Specifically. Defendant Greene prepared

her state and federal tax returns; and, after she began doing bUSiness selling Thomas

Kinkade artworks over the internet beginning in 2001. Defendant Greene also prepared,

filed and paid Plaintiff's Califomia sales taxes. and provided Plaintiff with professional

financial advice and planning as her accountant and financial advisor.

10. Without Plaintiffs knowledge or consent, a "Deed of Trust and Assignment 0

Rents" containing a "Promissory Note - Straight - Secured By Oeed of Trust" on the

COMPLAINT - 3

' ..

Q \.

~ "-., ~

• • Subject Property was recorded in the Los Angeles County Official Records on October

2 119,2003, as Instrument No. 033025404. a copy of whiCh is attaChed as Exhibit 2, and is

referred to hereinafter 8S "the 2003 Promissory Note and Trust Deed." California

Consulting Group is listed as the Trustee and R & R Trusts is listed as the Beneficiary.

Plaintiff's name is listed as the Trustor and signatory on the note and purportedly

appeared and signed before a notary on February 26, 2003.

11. Plaintiffs purported notarizeO signature is a forgery. Plaintiff did not appear

before the notary and did not execute the 2003 Promissory Note and Trust Deed. Nor

9 "did she have knowledge of or give her consent for anyone to sign on her behalf, or (0

10

11

12

13

14

15

16

11

18

19

20

21

22

23

24

2~

26

21

28

record the document.

12. Through the recorded trust deed. Defendants WIlliam N. Greene, R & R

Trust, end California Consulting Group claim an interest adverse to Plaintiffs in (he

subject real property. Plaintiff further alleges on information anCi belief that some of the

unknown DOE defendants also claim an adverse interest to Plaintiff's real property

through the deed of tru~~

13. Plaintiff discovered the forged instrument on or about May 1, 2012, within a

few days of Defendant Greene making, under threat of foreclosure, e demand for full

payment of an amount in eJ«:ess of $677,000. The amount purportedly represented: (1)

pcinciple in the amount of $175,000, plus compounded interest at the rate of 14Y2 % and

(2) fees for unpaid accountancy services over the past eleven (11) years.

14. In the process of retaining a new certified public accountant, Plaintiff

requested from Defendant Greene copies of her California sales tax returns and proofs

of payment since she had always tumed over her sales records to Defendant Greene

and gave a check made payable to Greene in an amount he told her was due the State.

Defendant Greene refused to provide the information to Plaintiff, claiming he was not

obligated to do so since, he claimed, she owed him accountancy fees. In so acting,

Defendant Greene breached his professional responsibility under California State Board

COIIP LAI NT - 4

•

•

,

.., ~ ~ .... .. II!

~T ___ 'f~/'!?!

• • Of Accountancy Rules of Professional Conduct, Article 9, § 68, which requires a

licensee upon request by a client to release a client's records, which the sales lax

retums were, and specffically stales: ·Unpaid fees do not constilute justification for

retenlion of dlenl records.·

15. Defendant Greene's daim of fees was specious and untrue and designed as

6 II justification and prelense to avoid disclosure of self-dealing and confticts of interest by

Greene. In fact, the parties had developed a barter system over the years. Plaintiff

provided counseling services in exchange for accountancy services and financial

advice. Further probing of Defendant Greene by Plaintiff elicited the admission from

10 Defendant Greene that he had treated her business.as a subsidiary of his owned and

11 controlled Celifornia ConSUlting Group. Greene continues to fail and refuse, to provide

12 10 Plaintiff copies of her sates tax returns and proofs of payments.

13 16. Plaintiff did not au1horize or consent to have her personal business treated

14 as a subsidiary of California Consulting Group.

1~ 17. PIp~ntiff requesled from Defenda nt Greene copies of their basic reta iner

16 egreement and invoices he claimed we", unpaid. She also reQuested any signed

11 documents that memorialized her authorization to treal her business 8S a subsidiary of

18 California Consulting Group. Defendant Greene failed and refused, and continues to

19 fail and refuse, to provide her the information.

20

21

FIRST CAUSE OF ACTION FOR QUIET TITLE

(Against All Defendants)

2211 16. Plaintiff incorporates lhe allegations of paragraphs 1 through 17 above as

23 though fully set forth hereat.

24 19. PUl"6uant to CCP §760,010, el seq., Plaintiff seeks to quiet title against the

25

26

27

28

claims of defendants as follows: the claims of defendants are without any right whatever

and such defendants have no right, tiUe. estate. lien, Of interest whatsoever in the

above-described real property Of' any part thereof.

COKPU[Nt ~ 5

"

; ~ 1.1

~ !'i

court.

• • 20. Plaintiff seeks to quiet title as of the dale of the filing of this complaint with th

SECOND CAUSE OF ACTION FOR CANCELLATION OF INSTRUMENT

PURSUANT TO CIVil CODE § 3412

(Against All Defendants)

21. Plaintiff incorporates the allegations or paragraphs 1 through 20 above as

Ihough fully set forth hereat

22. The 2003 Promissory Note and Trust Deed is void or voidable due to its

911 fraudulent nature and the forged signature of Plaintiff, in that it is violative of the usury

10 laws of the State of California and does IlClt qualified for any exemption therefrom, and

11

12

13

14

1~

lE

11

18

for the reasons set forth in paragraphs 37 through 416, each of which is herein

incorporated by this reference.

23. If left outstanding, there is a reasonable apprehension that it may cause

serious injury to Plaintiff.

24. Plaintiff seeks an adjudication and order pursuant to Civll ;Code § 3412 that

the 2003 Promissory Note and Trust Deed be delivered up and canceled.

THIRD CAUSE OF ACTION FOR DECLARATORY RELIEF

(Against All Defendants)

19 11 25. Plaintiff incorporates the allegations of paragraphs 1 through 24 above as

20 though fully set forth Ilereat.

21

22

n

24

25

26

27

28

26. An actual controversy has arisen and nQIN eJ(ists between Plaintiff and

Defendants concerning their respective rights and duties under the 2003 Promissory

Note and Trust Deed and title in the Subject Property. Defendants contend that the

2003 PromiSSOry Note and Trust Deed is valid and the note due and payable. Plaintiff

disputes these contentions and contends that the instrument is fraudulent and not

executed by her. Plaintiff further contends that (a) the interest rate set forth in the 2003

Promissory Note and Trust Deed is usurious, unlawful, and uncollectible and, (b) she

COMPLAINT ~ 6

•

•

'" ~ S , ~

~T/:r~."'':!T

• • has made zero payments on either the principle or interest Which were, pursuant to the

terms of the note, dlle 5 years and 30 days from February 22. 2003. or by March 22,

2008. and therefore, pursuant 10 CCP § 337, her obligation to pay. if it ever existed.

411which she disputes. has been alttinguished as beyond the <ii-year slatuts of limitations

& for an action based on 'sny contract. obligation or liability founded upon an instrument

in writing.-

27. Plaintiff is harmed and continues to suffer by this unsettled state of affairs in

that a cloud exiSts on her title to the Subject Property_ impairing her equity and free

9 II enjoyment oflhe property. A judicial declaration pursuant 10 Cal. Ci",. Proc. Code §

10

11

1060 is therefore necessary and appropriate at this time so that PlainUffs rights and

duties under the 2003 Promissory Note and Trust Deed may be determifled with

12 certainty.

13 28. Plainliff requests a judi~al determination of her rights and duties under the

14 2003 Promissory Note and Trust Deed and of her right to title in the Subject Properly.

1& FOURTH CAUSE OF ACTION FOR S~DER OF TITLE

16 _(Against All Defendants)

11

u

19

2D

21

II

2l

2t

29. Plaintiff incorporates. the allegations of paragraphs 1 through 24 above as

thOll9h fully set forth hereat.

30. The tort of Slander of Title involves the action of one who, without a privilege

or justification to do 50, publishes matter which is untrue snd disparaging to anolher's

property and results in pecuniary damage.

31. Defendants. without privilege or justification, forged or caused to be forged

PI~intiffs. Signature on the 2003 Promissory Note and Trust Deed, or in reckless

disregard for Whether Plaintiff had actually signed the instrument. and then published

25 II the 2003 Promissory Note and Trust Deed by recording it in the official records of los

26 Angeles County.

21

28

COMP.l.Jl.lNT • '1

'.

'"" ~ 1:1 III , ~.

• • 32. The daim of an interest in title on the Subject Property by virtue of Plaintiff's

2 II signature on the 2003 Promissory Note and Trust Deed is untrue; Plaintiff did not

execute the document, nOl' authorize anyone to do so on her behalf.

33. The published 2003 Promissory Nota disparaged and continues to disparag

Plaintiffs property as a cloud to her title to the Subject Property. snd has impaired and

6 II continues to impair h&r eqUity in and free enjoyment of lhe property, and has resulted in

adual economic damage to her in that she is unable to refinance the Subject Property

B II at the more advantageous interest rates Which would otherwise be currently available to

9 her.

10

11

34. As a proximate cause of the slander of her title in the Subject Property,

Plaintiff has been damaged in an amount to be proven at tlial and Which inc;;ludes. in

12 addition to the interest rate differential above alleged. the costs and attomey's fees

13 necessarily incurred in dearing the slandered title.

14 35. The conduct of Defendants. and each of them, is malicious, oppressive, and

1!t fraudulent as those terms are defined in Civil Code § 3294 and, therefore. justifies the ";

16 impoSition of punitive damages. More specifically, (1) Oefendant Greene. as Plaintiffs

11

18

19

20

21

22

certified public accountant and financial advisor engaged in self-dealing and

undisclosed conflicts of interests, and attempted to profit unlawfully by collecting

usurious interest (2) Plaintiff is informed and believes and thereon alleges that

Defendant Greene forged or caused to be forged Plaintiff's signature by using copies of

PlaintjJfs signature on financial documents oblained by virtue of his professional

relationship with Plaintiff; and (3) upon information and belief, Defendants engaged in a

13 II scheme 10 profit. off Plaintiffs business by use of the 2003 Promissory Note and Trust

~4

2S

lEi

27

28

Deed ;n a manner not fully understood by Plaintiff at the time of the filing of this action,

and without her knowtedge and consent.

COMPlJ>.lIllT - 8

• II<

•

I

.. II

" 8 ~ r~

10

11

12

13

H

1~

16

~·L" ,-r;?/~ '!"

• • FIFTH CAUSE OF ACTION TO VOID CONTRACT FOR

UNCONSCIONABLENESS PURSUANT TO CIVil CODe § 1670.5

(Agaln8t Defendant Greene)

36. Plaintiff incorporates the allegations of paragraphs 1 through 24 above as

though fully set forth hereal.

37. Defendant Greene is a California licensed Certified Public Accountan\.

36. Under Artide 9, Section 65 of the Califomia Board of Accountancy

Regulations, all CPA licensees must comply wilh the American Institute of CPA's

('AICPA's') Code of Professional Conduct.

39. The AlCPA's Rule 101 slates: 'A member in public practice shall be

independent in the performance of professional services as required by standards

promulgated by bodies designated by Council.'

40. AICPA's Rule 101 is interpreted by the AICPA to mean that Independence

a CPA 'Shall be considered to be impaired if: (A) During tha period of professional

engageme..r~t a covered member (1) Had or was committed to acquire any direct or

material indirect financial interest in the client. .. lorl (4) Except as specifically permitted

n in interpretation 101-5, had any loan to or from the dien"': (The alleged loan 10 Pia inti

18 is not covered B$ an exception.)

19 41. Additionally, California State Board of Accountancy Rules of Professional

20 Conduct, Article 9, § 57 provides: 'A licensee shall nOI concurrenUy engage in the

21

Z2

23

24

2S

2'

2~

28

practice of public aCCOllntancy and in any other business or occupation which impairs

the licensee's independence, objectivity, or creates a conflid of interest in rendering

professional services.-

42. Civil Code § 1670.5(a) states

If the court as a matter of lew finds the contract or any dause of the contract to

have been unconscionable at the time it was made, the court may refuse 10 enforce the

contract, or it may enforce the remainder of tile contract without the unconscionable

COKP)Alloif - 9 .., iii

" 8 ~ "I

• • 1 II dause, or it may SO limit the application of any unconscionable clause as to avoid any

unconscionable resuH.

43, The 2003 Promissory Note and Trust Deed is unconscionable for the

following reaSOl'ls: (a) Defendant Greene violated his professional responsibilities by

entering into a loan with Plaintiff during his professional engagement of Plaintiff; (b)

upon information and belief, Defendant Greene enga!J8d in self-dealing with Plaintiff in

7 Ilwhich .the 2003 Promissory Note and Trust Deed was part of 8 scheme by Defendants

to personally profil or evade taxes; (c) Defendant Greene concealed from Plain\i1f his

self-dealing; (d) Defendant Greene did not obtain the informed consent of Plaintiff to

ltl

11

12

u

14

participate in Defendants' scheme: (e) Plaintiff did nol knowingly execute or consent 10

the execution of the 2003 Promissory Note and Trust Deed, nor its recording. and (f) the

subject promiSSOry note prepared by Defendant Greene includes a usurious rate of

interest. which in and of ilselr, is unconscionable.

44. Additionally. Oefendant Green's conduct related to the 2003 Promissory

1~ II Note and Trusl Deed, as alleged herein above, conslitutes unpro!~ssiOnal conduct as

16 set forth in Business & Professions Code ('B & PC') § 5100, to wit: § 5100(c)

17

18

19

20

21

22

(dishonesty, fraud & gross negligence); § 5100(i) (fiscal dishonesty or breach of

fiduciary responsibility of any kind); and § 5100(k) (obtaining money, property or other

valuable COflsideratioo by fraUdulent means or false pretenses).

45. Defendant Greene's oonduct as alleged herein was willful and knowing

andlor with complete and reckless disregard of the emotional or financial ramifications

that would surely befall Plaintiff, and was in nag rant breach of his fiduciary duties owed

23 II to Plaintiff.

Z4 46. Plaintiff therefore requests a finding that the 2003 Promissory Note and Trust

2~ Deed is unconscionable and void, and an order that Defendants reconvey the trust

26 II deed.

27

28

CCI!PLAIIIT - 10

•

•

~ It 1.'1 , .. ~

;.- ·'f_/·T~_/;: T

• • SIXTH CAUSE OF ACTION FOR BREACH OF FIDUCIARY DUTIES

(Against Defendant Greene)

47. Plaintiff incorporates the allegations of paragraphs 1 through 46 above as

though tully set forth hereat

48, AI all times relevant, Defendant Greene created, accepted and acted in a

{; II fiduciary relationship of great trust that required him to avoid &.elf-desling and connicts

interests and to always act in the best interests of Plaintiff, including her property,

business, and financial interesls, and which also induded duties of honesty, loyaltv and

9 "full disclosure to his dient

lD 49. In acting as alleged herein above, Defendant Greene breached his fidUCIary

11 "duties owed to Plsint!" as he has acted and continues to act for his own benefit and to

the detriment of Plaintiff. On information and belief, Plaintiff alleges that Defendant u

13 II Greene has conducted hiS accounlaocy practice with regard to Plaintilfs affairs in a

14 manner replete with self-dealing and schemes designed to evade taxes and otherwise

1!>

16

11

18

19

2D

21

22

23

H

250

26

21

28

profit off his dient. ":;.

50. As a proximate resull of Defendant Greene's breach of fiduciary duties.

Plaintiff was damaged according to proof at trial.

51. The conduct of Defendant Greene was willful. intentional, purposeful. and

done with the Bole intenlion to personally profit to the detriment of Plaintiff.

52. The conduct of Defendant Greene. as atleged herein, is malicious,

oppressive, and fraudulent as those terms are defined in Civil Code § 3294 and,

tI1erefore. justifies the imposition of punitive damages.

SEVENTH CAUSE OF ACTION FOR UNFAIR BUSINESS PRACTICES

(Against All Defendants)

53. Plaintiff incorporates the allegations of paragraphs 1 through 24, and 26,

above, as though fully set forth hereal.

COMPUllN1' 11 ,..

~ ~ N

• • 5-4. Plaintiff brings this action pursuant to B & PC § 17200, which prohibits any

unlawful, unfair or fraudulent bus.iness act Of practice. In this cause of actiOn ooly.

Plaintiff not onry sues individually but sues on behalf of the general public.

55. On information and belief, Plaintiff alleges that Defendants are engaged in

tax schemes involving the placement of fraudulent promissory notes and trust deeds on

real property of their dients, with or Without the know1edge and consent of their dients,

and involving Ihe false and fraudulent reporting of sales taxes of retail businesses

8/1throu9h Califomia Consulting Group. with or without the knowledge and consent of their

9 clients.

10

Il

'1.2

u

H

Hr

16

17

18

56. Plaintiff is further informed and believes and thereon alleges that Defendants

practices are unlawful, unfair and fraudulent 9S those terms are defil'led in cases

interpreting B & PC § 17200.

57. On information and belief, Defendants prac1ices are continuing and date

back at least to 1998, and extend to more persons than Plaintiff.

58. As a direct and proximate result of the unfair and deceptive acts and ".

practices committed against her personally. Plaintiff has been damaged in an amount 10

be proven at trial.

59. Plaintiff also seeks an 8COOunting of her sates tax retums and those of

19 II California Consulting Group as they may relate to Plaintiff's retail art bUSiness, and the

20 II actual returns filed on her behalf.

21 60, Plaintiff seeks disgorgement of any profits or benefits derived by Defendants

22 II off the 1996 and 2003 promissory notes $8¢ured by trust deeds and off her retail an

23 business or other personal affai~.

24 61. Plaintiff further seeks an order that Defendants reconvey the 2003 trust

25 II deed.

2f>

21

28

62. On behalf of the general pUblic, Plaintiff seeks a preliminary and permanent

injunction against Defendants from further engaging in the unlawful. unfair and

CClKPUlUIT - 12

• ,,~

•

... 10

" II \ H

'"

2":r .... '!'~_·/~T

• • fraudulent acts and practices aM a disgOl"gemenl of profilS dsrived by Defendants al

Ihe expense of other c/ieots.

63. Plaintiff is entitled to reasonable attorney's fees for bringing this action.

EIGHTH CAUSE OF ACTION FOR NEGLIGENCE

(Against Defendant William Greene)

64. Plaintiff incorporales the allegatioos of paragraphs 11hrough 24, and 26,

above, as though fully set forth hereat.

65. At all times relevanl. Defendant William Greene, ading as Plaintiffs

Certified Public Accountant. had a duty to exercise the reasonable care and skill of a

l() certified public aecount and to follow California's professional rules, regulations and

11 statutes regulating the practice of accountancy. wflich include. inter alia: refraining from

12 acts of dishonesty. fraud and gross negligence (8 & PC § 5100(c»: refraining from fiscal

II dishonesty or breach of fiduCiary duty of any kind (B & PC § 5100(i»; refraining from

14 preparation of false financial reports (8 & PC § 5100(j): and releasing client recoms

15 Ilwhen req~~sted of the client, not engaging "in any other business Or occupation which

16 impairs the licensee's independence, objectivity or creates conflicts of interests.'

(California State Board of Accountancy Rules of Professional Conduct. Article 9 § 68. 17

18 II and § 51, respectively.)

19

20

21

12

23

H

25

26

:n

U

66. In taking the actions alleged herein abol/e. and in failing to take the BClions

as alleged herein abov~, Defendant Greene breached his duly of care and skill to

Plaintiff by famng to Obtain Plaintiffs notarized signature an the 2003 Promissory Note

and Trust Deed; by failing to oblain Plainliff's inrormed consent to record the note; by

failing to apprise her of the usurious nature of Ihe rate of interest that he proposed to

charge and by failing to apprise her that such a loan and interest rate could only be

processed through a licensed independent third party brokttr; by failing to obtain

Plaintiffs informed consenl to recom the note; by failing to obtain Plaintiff's informed

consent 10 treat her relail art business as a subsidiary of Defendant Greene's California

c:tIMPLAINT - 13

".

I-! G:l

S '\ tot ~

• • Consulting Group regarding California sales tallies; and by failing 10 maintain separate

California sales tax filings for Plaintiff which created a conflict of inlerest with Defendant

Greene and led him 10 treat the portion of Califomia Consulling Group's sales tax

returns relating (0 Plaintiffs business as not belonging 10 Plaintiff. thereby denying her

S II copies of her sales tax returns and proof of payment. Additionally. Defendant Greene

breached his duty of care and skill to Plaintiff by taking actions against her when he

'1 udemanded payment in full on the purported 2003 Promissory Note and Trust Deed thai

he did not have the legal authority to do nor for which he could otherwise charge her a!

a usurious interest rate; and by failing to immediately reconl/ey the note and trust deed

upon notice from Plaintiff that her Signature was forged, that she did not know or 10

11 II authorize the recording of the instrument. that the interest provision in the note was

usurious and unlawful, and thaI the principle was also time-barred by the lerms of the 12

1) II note, and her demand that he do so. Defendant Greene also breached his duty of care

14 llsnd skill to Plaintiff by refusing to provide her oopies of her sales tax returns and proof

15 ! of payment when requested by her.

16

/II,

67. As a direct and pro)(imate cause or Defendant's negligence. Plaintiff. and her

11 property.were damaged aecoming to proof at trial.

111 68. Further, the errors and omissions of Defendant Greene constilute neglige

1!1 [I per se pursuant to Evidence Code § 669, thereby creating a presumption of negligence,

20 ~ because: (a) his actions and failures to act as herein alleged violated a statute,

21 ordinance, or regulation of a publ'lC entity, as cited herein abol/e: (0) the violation

22 /I proximately caused injury to Plaintiff and/or her property; te) the injury resulted from an

23

24

oceurrence of the nature which the statute, ordinance, or regulation was designed 10

prevent; and (d) Plaintiff, the perron suffering the injury to her person or property was

2S II one of the class of persons for wnose protection Ihe statute, ominance, Or regulation

2' was adopted.

27

28

COMPLAINT - 14

•

•

'" ~ ! t/

~"L/"f?_""~T

• • PRAYER FOR RELIEF

WHEREFORE, Plaintiff prays for the following relief:

3 liAS TO THE FIRST CAUSE OF ACTION:

1. For a judgment quieting tille in Plain/iff as the owner of the Subject Property

~ II by declaring that Defendants have no interesl in the property adverse to the Plaintiff;

10

11

12

13

14

1:0

16

11

18

19

20

Zl

n

2J

U

25

26

21

28

2. For cosls of suit according to proof; and,

3. For other such relief thaI may be granted tD Plaintiff as the Court deems just.

AS TO THE SECOND CAUSE OF ACTION:

1. For an order that the deed of lrust recorded Odober 9, 2003 against the

Subject Property be delivered up and canceled;

2. For costs of suit according to proof: and,

l. For other such relief that may be granted to Plaintiff as the Court deems just.

AS TO THE THIRD CAUSE OF AcnON:

1. For a declaralion that Plaintiff owes nothing under the 2003 Promissory Note

and Trust Deedand an order that Defendants remOve the cloud to Plaintiffs title in the II

Subject Property and reconvey the trust deed.

2. For costs of suit according to proof;

3. For reasonable attomey's fees under the contract or by statute; and

4. For other S-Uch reHaf that may be granted to Plaintiff as the Court deems just.

AS TO THE FOURTH CAUSE OF ACTION:

1. For an order that the deed of tnJsl recorded October 9, 2003 against the

Subject Property be delivered up and canceled;'

2. For damages. including attomey's fee necessarily incurred in Clearing the

slandered title. according to proof;

3. For punitive damages 8CCOfding 10 proof;

4. For costs of suit acx:ording to proof; and,

S. For other such relief that may be granted to Plaintiff as Ihe Court deems just.

COMPLAINT· IS

i , .. ~

• • 1 II AS TO THE FIFTH CAUSE OF ACTION:

1. For B fiflding that the 2003 Promissory Note and Trust Deed is

) 1/ unconscionable and Void. and an order that Defendants reconvey the trust deed;

2. For costs of suit according to proof; and,

3. For olher such relief be granted to Plaintiff as .he Court deems just.

6 II AS TO THE SIXTH CAUSE OF ACTION:

1. For damages, acc:ording to proof;

2. For punitive damages according to proof;

3. For costs of suit according to proof; and,

10 4. For other sUCh relief that may be granted to Plaintiff as the Court deems just

11 II AS TO THE SEVENTH CAUSE OF ACTION:

12 1. For damages. according to proof;

u 2. For an order that Defendants reconvey the 200:> trust deed.

14 3. For an Accounting of Plaintiffs sales tax returns and those of California

IS II Consulting Group ,~ they may relate to Plaintiffs retail art business, and the aC1ual

u retums filed on her behalf.

1"/

18

4. For disgorgement of any profits or benefits derived by Defendants off the

1998 and 2003 promissory notes secured by trust deeds and off her retail art business

19 II or other personal affairs.

20 5. On behalf of the general public, Plaintiff seeks 9 preliminary and permanent

Zl II injunClion B~ainst Defendants from further engaging in the unlawful. unfair and

22 fraudulent acts and practices and a disgorgement of profits derived by Defendants at

23 the expense of other Clients.

;>4 6. For reasonable aHomey's fees;

2~ 7. For costs of suit according to proof; and,

26 8. For other such relief that may be granted tD Plaintiff 8S the Court deems just.

27

28 ~LAlN7'-U

•

•

i""'

~ 8 " '" If

'':!rJT~/~~T

• • 1 II AS TO THE EIGHTH CAUSE OF ACTION:

1. For damages. according to proof;

2. For costs of suit according to proof; and,

3. For other such rGliefthat may be granted to Plaintiff as the Court deems just.

6 II Date: October 4. 2012

10 II BY;

11

l2

13

H

l!.

l' 17

u

19

21:\

21

.t2

:u

24

2~

16

27

28

COKI'LAINT • 11

• .. ~ .. ~

•

• •

~.

t.1

.... ~\j

• •

j..,

~: EXHIBIT 4

• Main Identity • From! "Bill Greene" <bilLgreene@ccgintl.com> To: <Karendelac@aotcom> Sent: Sunday, July 22, 20127:26 PM Attach: de-,a_Carrere_ltr.pdf; cover letter of july 9.pdf Subject: Fw: service of response re demand for payment on deed of trust Hello Karen,

Wen, I see by the letter I have received from your attorney that you have chosen your path. It saddens me that you have rejected the opportunity to resolve these issues by fair exchange and compromise. Your grace period has ended on June 30 without any offer from you.

My new address is 170 E. College St.. Covina, CA 91723 as anyone requesting a forwarding address could have found. The branch post office of myoid address at 1037 N. Grand Ave.closed in March when FaIT's Stationery closed. Use the new address.

A claim of forgery is a waste of your attorney's time and a deception of him. The facts wI! not support it. It is not what happened. Perhaps your memory is unclear. The events of 2003 addressed in his letter occurred at your request and for your sole benefit w}th my reluctant cooperation so that you could show enough eq uity to qualify for a refinance of your first mortgage in late April 2003, saving you almost $1 Ok/yr ever since. The refinance of your 1 st mortgage did not make your 2d mortgage vanish or diminish or change your obJigation. You requested these changes in 2003 to show enough equity to qualify for refinance of your 1 st mortgage, presumably on advice from your loan broker or lender.

You need to th'ink carefully through and reconstruct the events, their purposes, and consequences before making wild accusations lest you cause yourself far greater problems than those involving your 2d mortgage or me. Let me try to refresh your memory. It took me a little time to dig up the records. The documents available show the following: 2-22-03 Draft of 2d mortgage renewal prepared. 2-25-03 Reflnance application submitted. 2-26-03 2d Mortgage renewal signed by you and notarized. 2-28-03 Reconveyance executed by me. 4-30.Q3 Refinanced 1st mortgage is approved and closes. 10-9·03 Mortgage renewal is recorded. Whatever problems you may have had with signatures or optional thllmbprints or the notary are all your own as the renewal draft of the 2d mortgage was in your care for proper notarized signature. I had no part in the Signature process. You delivered the signed and notarized 2d mortgage to me before I prepared the reconveyance shifting loan to equity temporarily. If I had not believed that you had done the mortgage renewal properly there would have been no subsequent reconveyance or refinance. In the event the renewal proves invalid by something you did or failed to do properly, the reconveyance which relied upon it is null and vold. 1t was in your interest and great advantage to do it properly_ I believe you did do it properly and you just don't recall the details and may not have retained the records.

An invalid 2d mortgage renewal was neither in your interest or mine. You would not have received your refi or worse and t would certainly not reconvey on anything I thought was invalid. The 2d mortgage note secured my interest in the property, whether we call it debt or equity. An invalid note would be of no benefit to me. It could also leave you in a very difficult legal and tax position that I wil1 not go rnto unnecessarily. 1 suppose you might ask yourself if you were not executing your part of the refinance requirements including the renewal of the 2d mortgage properly and in good faith as I believe you were to reap the benefit of your refinance, why not? \lVhat were you doing with the 2d mortgage renewal and what might be the consequence to you?

You should have retained a copy of the 2d mortgage renewa' from 2-26-03 after signature and notarization and another from LA County after it was recorded. I recall you being upset upon receiving your recorded copy from LA County later in 2003, even though the process was the same as we had used

~:: for the original purchase in 1998 when the original 2d mortgage note was signed and notarized on 6 .. 9-98 ~i and recorded 12-28-98 .. Other subsequent communicatons I have record discussions and negotations to ~' settle it at later points. So you could hardly have been unaware of it. So far as I am aware it was all /-.: properly done in good faith by both parties for the benefit of your 1st mortgage refi. I did not receive any ~,I

. benefit from your 1 st mortgage refinance.

I suggest you reconsider what actually happened and your actions and position and withdraw your forgery claim and acknowledge the validity of the 2d mortgage and refinance process. Let's get on to more constructive discussions to avoid a default if possible.

1" 11 C 1"1" 1 "I

• • Other matters in the letter can wait. I wilJ not reply to them now. If necessary I win take counsel as adVised and respond " in due course as appropriate. But the next step, .1 believe, is yours to reply to the" request above and· enter discussions to assess your financial situation and explore options to avord a Notice of Default if you intend to do so.

J would also suggest that you be much more careful with whom you discuss our business affairs, and more thorough and accurate in portraying them. Our business arrangements were conducted for our mutual benefit and fair exchange. others may not see them so or may try to apply a different standard and try to find fault where none existed. Please remember that where something was done primarily or solely to your benefit as in the case of the mortgage refinance or sales tax arrangements. you will beat primary responsibility and liability for anythlng that goes awry. We did many transactions in many areas over the years with fair exchange to support your business that were entirety satisfactory. For more than a decade I have not reaped any economic benefits from them beyond our fair exchanges~

I shall hope for better news from you Ln the near future.

Bill

~.

f\1

'. til 1000·

~:: 1\1

1

2

• I

PROOF OF SERVICE (1013 A, 2015.5 C.C.P.)

• STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

3 I am employed in the County of Los Angeles, State of California. I am over the age

4 of eighteen (18) and not a party to the within action; my business address is 270 North Canon, Third Floor, Beverly Hills, California 90210-5311.

S On December ~012, I served the foregoing document described as: MEMORANDUM 6 OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT

TO A TTACu' ORDERS AND ORDERS FOR ISSUANCE OF WRITS OF 7 ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; 8 DECLARATION OF WILLIAM N. GREENE on the interested parties in this action )xx)

by placing [ ] the original and/or [xx] a true copy thereof enclosed in a sealed envelope 9 addressed as follows:

10 Carl E. Kohlweck, Esq. 11 28437 Plainfield Dr.

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Rancho Palos Verdes, CA 90275

) X]

[ ]

I: ]

I: ]

[X]

(BY MAIL) I caused such envelope with postage thereon fully prepaid to be placed in the United States mail at Los Angeles, California. I am "readily familiar" with the firm's practice of collection and processing correspondence for mailing. Under that practice it would be deposited with U.S. Postal service on that same ~ay with postage thereon fully prepaid at Beverly Hills, California in the ordinary course of business. I am aware that on motion of the party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after date of deposit for mailing in affidavit. .

(BY FACSIMILE TRANSMISSION) I caused such document to be sent via facsimile to the persons on the service list at facsimile numbers listed and received a confirmed transmission report indicating that this document was successfully transmitted to the parties named.

(BY PERSONAL SERVICE) I delivered such envelope by hand to the offices of the addressee.

(Federal) I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made.

(State) I declare under penahy of perjury under the laws of the State of California that the above is true and correct.

Executed on December }Jf, 2012, at Los Angeles, California. 2()

926098.1 5839.048 17 MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF APPLICATIONS FOR RIGHT TO A IT ACH ORDERS

AND ORDERS FOR ISSUANCE OF WRITS OF ATTACHMENT AGAINST CROSS DEFENDANT KAREN DE LA CARRIERE; DECLARATION OF WILLIAM N. GREENE