Free Declaration in Support - District Court of California - California

Case 5:07-cv-02795-JW Document 21 Filed O9/O4/2007 Page 1 of 4 _
1 PARR LAW GROUP
SHAWN R. PARR (SBN 206616)
2 KATHLEEN CARD (SBN 164083)
NATALIA LITCHEV (SBN 230775)
3 SUJATA T. REUTER (SEN 232148)
150 Almaden Boulevard, Suite 1380
. 4 San Jose, California 95113
Telephone: (408) 267-4500 .
5 Facsimile: (408) 2674535
6 Attorney for Plaintiff and Proposed Class
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
. ll
ANITA I~IUNTER, CASE NO. C07 02795 JW
T2
Plaintiff,
33 DECLARATION OF SHAWN R. PARR
IN SUPPORT OF OPPOSITION TO
3.4 V- MOTION TO DISMISS, OR
ALTERNATIVELY, REQUEST FOR
3 5 EDWARD H_ QKUN’ DKUN HOLDINGS, CONTINUANCE AND DISCOVERY
I 6 TNC., INVESTMENT PROPERTIES OF
AMERICA, LLC, RICHARD B. SIMRING, Data; gg {amber 24, 2007
17 and DOES 1 through DOES 50, inclusive, Time; Q;0)0 AM,
_ Courtroom: 8, 4th Floor
3 3 D€f,mdamS_ Judge: Hon. James Ware
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22 -i . = I
I, SI-{AWN R. PARR, declare as follows:
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1. 1 am an attorney duly licensed to practice law before the United States District Court for
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25 the Northern District of California, and I am the principal of PARR LAW GROUP, attorneys for
E 26 Plaintiff ANITA HUNTER in this matter. I have personal knowledge ofthe matters contained
27 herein except those matters alleged on infomation and belief, and those I believe to be true. lf
28 called as a witness, I could and would testify competently thereto.
Parr Law Group
150 Aimaden Blvd.
Suite l380
San Jose, CA 951 i3 i
Ph 408-267-4500
fax ‘l°8‘Z67"*535 Arroimev eactaamion in siieponr or opvosrrion ro Morrow ro nisivizss

Case 5:07-cv-02795-JW Document 21 Filed O9/O4/2007 Page 2 of 4 _
1 2. On September 4, 2007, I accessed the website of the United States Bankruptcy Court for I
2 the Southern District of New York, and, using my PACER password, reviewed and printed the E
3 document filings in Case No. 07-11448 (MG) in re The 1031 Tax Group, Debtor. I
4 3. I am informed and believe that James M. Lukenda tiled a declaration in Case No. 07-
5 11448 (MG), and I have reviewed the declaration (“Declaration of Lukenda"). I am informed E
A 5 and believe and thereon allege that that James M. Lukenda was appointed as the Chief ‘
. 7 Restructuring Officer of The l03l Tax Group, LLC (°‘Tax Group"). Attached hereto as Exhibit 1
3 and incorporated herewith by reference is a true and correct copy ofthe Lukenda Declaration.
9 4. Based on rny review ofthe Lukenda Declaration, I understand and believe that:
in a. Defendant EDWARD H. OKUN (“OI · it which did business in multiple states, California being one of them, through
12 multiple “wholly owned subsidiaries? (Decl. of Lukenda {[1 O);
13 b. Defendant INVESTMENT PROPERTIES OF AMERICA (“lPofA”)
E 4 borrowed the total amount of approximately $l32,000,000.00 from Tax
15 Group, as unsecured debt, in order to place long term investments in OKUN’s
16 other interests, which eventually caused the collapse ofthe Tax Group. (Decl.
E7 of Lukenda 1I18)
18 5. I am informed and believe that Andrew D. Velez—Rivera, the United States Trustee’s
19 counsel, tiled with the United States Bankruptcy Court for the Southern District of New York,
20 Case No. 07-11448 (MG), a Declaration in Support of the Motion by the U.S. Trustee for Order
21 Directing the Appointment of Chapter ll Trustee ("Vele2:—Rivera Declaration"). I have reviewed
22 the declaration. A true and correct copy of the Declaration of Velez—Rivera is attached hereto as
23 Exhibit 2 and incorporated by reference with relevant exhibits.
24 6. l am informed and believe that the modus opercmdi of OKUN was to direct his
25 employees or agents to invest tax deferred l03l exchange funds from various companies, wholly
26 owned by him, into his other enterprises, wholly owned by him, all without the owners’ consent
‘ 27 or knowledge. 1 am informed and believe that one of the enterprises that received these funds
pl 28 was HOLDINGS and lPofA. (Decl. of Velez—Rivera {I1 5)
Pm Law Group 7. i am informed and believe that Tax Group accepted several unsecured promissory notes
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Case 5:07-cv-02795-JW Document 21 Filed O9/O4/2007 Page 3 of 4 ,
l ("Notes”) executed by OKUN, personally, and by Defendant OKUN HOLDINGS r
2 (“H()LDlNGS’”), a company wholly owned by OKUN, for the total amount of $26, I 00,000.00.
3 (Dec]. of VeIez··Rivera, Exhibit I) i
4 8. I am informed and believe that OKUN executed a personal guarantee ofthe Notes. (Decl.
5 of Lukenda 1`[20)
5 9. I am informed and believe that Tax Group and/or one or more of its companies obtained I
7 fidelity bond through its broker, Lockton Insurance Brokers, inc., a San Francisco, California,
3 based company. I am informed and believe that Tax Group and/or one or more of its companies
9 displayed its bond information, evidence of insurance and insurance broker’s name and address
ig in California on the internet to the general public. (Decl. of Velez-Rivera, Exhibit J)
11 10. I am informed and believe that a Statement of Financial Affairs (the "Staternent”) was
` ig filed with the United States Bankruptcy Court for the Southern Bistrict of New York, Case No.
13 07 -1 1448 (MG). Attached hereto as Exhibit 3 and incorporated herewith by this reference is a
14 true and correct copy of the Statement with relevant Attachments.
15 1 i. I have reviewed the Statement and understand that it discloses that “[t]he Bebtors report
I 6 for tax purposes through their ultimate member/owner, Edward I-I. Okun, on his personal tax
17 return? (Statement of Financiai Affairs, Page 9)
18 12. I am informed and believe that Tax Group paid certain California vendors, including, but
ig not limited to, ASAP Printing in Campbell, California, A"l`&T in Sacramento, California, Covad
20 Communications in San Francisco, California, KTS Services in Mountain View, California,
21 Valley Management Services in Los Osos, California, Verizon Northwest in Mission Hills,
22 California, and Virtual Market Enterprises in Davis, California. (Statement of Financial Affairs,
23 Attachment 3b)
24 l3. Prior to, and on or about August 24, 2007, I accessed the website of the California
25 Secretary of State and conducted a search for 1031 Advance, Inc. The information thatl
26 retrieved listed the corporate address as l0800 Midlothian TNPIK #300, Richmond, Virginia. I
27 printed the webpage showing the information from the California Secretary of State. A true and
28 correct copy of the printout is attached hereto as Exhibit 4 and incorporated by reference.
Pm Law Group 14. I have reviewed the Voluntary Bankruptcy Petition filed inthe United States Bankruptcy
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Case 5:07-cv-02795-JW Document 21 Filed O9/O4/2007 Page 4 of 4 ,
1 Court for the Southern District of New York, Case No. 07-1 I448 (MG). I am informed and I
2 believe that the address of 10800 Midlothian TNPIK #300, Richmond, Virginia, is listed on the
3 Voluntary Bankruptcy Petition of The i03l Tax Group, LLC, as Debtor, as their address. A true Z
4 and correct copy of the Bankruptcy Petition with relevant scheduies is attached hereto as Exhibit _
5 5 and incorporated by reference.
6 15. I ani informed and believe that the addresses for IPofA and HOLDlNGS are 10800 ·
7 Midlothian TNPIK #300, Richmond, Virginia, as is listed on the Statement. (Statement of
3 Financiai Affairs, Attachment 3c, Pages 2 and 4)
9 16. Upon my review of the documents filed in the United States Bankruptcy Court for the
10 Southern District ofbiew York, Case No. 07-11448 (MG), and other preliminary evidence, I
it believe that Defendants OKUN, HOLDINGS, and IPOfA are alter egos of one another and the
12 Debtor, Tax Group, and its associated companies, that they have such unity of interest so as to
13 disregard their separate existence, and that not to disregard the same would cause injustice.
14 17. I also am. inforrned and believed that Tax Group and Defendant IPOfA had such
15 systematic and pervasive contacts with California so as to pennit the exercise of general personal
16 jurisdiction over the Defendants.
17 I declare under penalty of perjury under the laws of the United States of America that the
18 foregoing is true and correct. Executed in San Jose, California.
ig DATE: September 4, 2007 i 1 ( Q 2 _____,_ 2
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22 s Rl, R. PARR
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