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RECEIVERSHIP OF DIVERSIFIED LENDING GROUP, INC. AND APPLIED EQUITIES, INC.

 

1.  Complaint Against Bruce Friedman, Jackson National Life Insurance Company, Insiders of Diversified and Sales People:  On March 2, 2010, the Receiver filed a complaint against these defendants seeking, among other things, recovery of damages in the amount of at least $200 million for aiding and abetting fraud and negligent misrepresentation leading to the perpetration of Ponzi scheme by Diversified.  The complaint additionally seeks recovery of the particular transfers made to the defendants as fraudulent transfers.  These include recovery of transfers to Bruce Friedman of more than $57 million.  (USDC Case No. CV 10-01554-R-SS)  See Complaint, Part 2 and 3.  The Receiver is represented in this action by Susman Godfrey L.L.P.


Defendants: 
  1. BRUCE F. FRIEDMAN, an individual 
  2. KAREN O'CALLAGHAN, an individual  
  3. DIANE MARIE CANO, an individual  
  4. KEVIN TODD MEHLMAN, an individual. Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on June 24, 2011. 
  5. SHIRLEY HOWARD, an individual  
  6. BRIAN NATHAN GLEDHILL, an individual  
  7. KEVIN KELLER, an individual  
  8. STEPHANIE IZEN, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed with prejudice on March 17, 2011. 
  9. GIOVANNI BELLINI, an individual dba AMERICAN ACCOUNTING ASSOCIATION, INC. Claims against the defendant have been settled on confidential terms, and the Receiver filed an application to dismiss the defendant without prejudice on June 14, 2011. 
  10. AMERICAN ACCOUNTING ASSOCIATION, INC., a permanently revoked Nevada corporation.  Claims against the defendant have been settled on confidential terms, and the Receiver filed an application to dismiss the defendant without prejudice on June 14, 2011.  
  11. BELVANI ASSOCIATES CORP., a California corporation.  Claims against the defendant have been settled on confidential terms, and the Receiver filed an application to dismiss the defendant without prejudice on June 14, 2011.  
  12. BELVANI ASSOCIATES, INC., a suspended California corporation.  Claims against the defendant have been settled on confidential terms, and the Receiver filed an application to dismiss the defendant without prejudice on June 14, 2011.  
  13. JACKSON NATIONAL LIFE INSURANCE COMPANY, a Michigan corporation  
  14. AMERICAN BENEFIT CONCEPTS, INC., a Michigan corporation  
  15. MILTON LEONARD BELFER, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed with prejudice on October 19, 2011.  
  16. MILT L. BELFER INSURANCE SERVICES, INC., a California corporation.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed with prejudice on October 19, 2011.   
  17. DIANE TESSIE BOUCHER, an individual  
  18. SCOTT THOMAS BRANDT, an individual  
  19. CALIFORNIA FINANCING INC., a suspended California corporation  
  20. JASON ROBERT CAVALIER, an individual.  Defendant dismissed with prejudice 07/23/10, per settlement approved 06/11/10.
  21. CORZAN CAPITAL MANAGEMENT, LLC, a Nevada limited liability company  
  22. STEVEN JOSEPH CORZAN, an individual  
  23. DIVERSIFIED FINANCIAL STRATEGIES, INC., a dissolved California corporation  
  24. ERIC C. CANNON, an individual  
  25. STRATEGIC BENEFITS PLANNING GROUP, INC. dba SBPG INSURANCE SERVICES, a California corporation  
  26. J. RAY AYEVALO, an individual  
  27. ANDREW JOHN FUNNELL, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed with prejudice on January 6, 2011.
  28. MARK STEVEN GUTENTAG, an individual  
  29. SAFE EQUITY PLANNING, LLC, a Wyoming limited liability company  
  30. MICHAEL D. ERONY, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on December 15, 2010. 
  31. ALISTAIR W. WADDELL, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on January 28, 2011. 
  32. FREDDIE HOOKER, an individual  
  33. RYAN LEE KRONER, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on December 15, 2010. 
  34. ROBERT E. KRONER INSURANCE SERVICES, INC., a California corporation  
  35. ROBERT EDWARD KRONER, an individual  
  36. GARY MICHAEL LAVINTMAN, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on December 16, 2010.  
  37. DENNIS ALLEN LAWTON, an individual;  
  38. MEYER LEVY, an individual  
  39. ARMOND MADIROSSIANS, an individual  
  40. ADAM HOWARD MARKOWITZ, an individual  
  41. STEPHEN LOUIS RIVETTI, an individual.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on December 16, 2010. 
  42. STEPHEN L. RIVETTI INSURANCE SERVICES, INC., a California corporation.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on December 16, 2010. 
  43. TONY NILE RUSSON, an individual  
  44. FRANK W. SCROGGINS, an individual  
  45. SCOTT L. SIEMERS, an individual  
  46. SUZALA, INC., a California corporation  
  47. SUZANNE APPEL, an individual  
  48. YOUR PLATINUM DISTRIBUTORS, INSURANCE MARKETING CO., a dissolved Texas corporation.  Claims against the defendant have been settled on confidential terms, and defendant was dismissed without prejudice on July 29, 2011.  
  49. FORREST NOLAN JACKSON, an individual; DXB, Inc., a suspended California corporation  
  50. JOHN CURTIS, an individual 

2.  Complaint Against Family Members:  On March 2, 2010, the Receiver filed a complaint against family members of Bruce Friedman seeking recovery of nearly $10 million in cash and gifts transferred to these defendants by Bruce Friedman. (USDC Case No. CV 10-01552-R-SS)  See Complaint. 
 
Defendants: 
  1. WENDY ANN MEHLMAN, an individual  
  2. GARY FRIEDMAN, an individual  
  3. WORLDWIDE FINANCIAL INVESTMENTS, INC., a California corporation  
  4. DARYN I. FRIEDMAN, an individual.  Defendant dismissed with prejudice 10/07/11, per settlement approved 08/09/11.  
  5. DOROTHY FRIEDMAN, an individual  
  6. SHAWNA ARIELLE FRIEDMAN, an individual.  Defendant dismissed with prejudice 07/09/10, per settlement approved 06/25/10. 
  7. KARRY S. FRIEDMAN aka KARRY S. LIKER, an individual.  Defendant dismissed with prejudice 10/07/11, per settlement approved 08/09/11.  
  8. STEPHANIE MEHLMAN, an individual.  Defendant dismissed with prejudice 11/15/10, per settlement approved 11/08/10. 
  9. KELLY P. MEHLMAN, an individual  
  10. JULIE SITOMER aka JULIE MEHLMAN, an individual.  Defendant dismissed with prejudice 12/13/10, per settlement approved 11/08/10. 
  11. ROBERT G. SITOMER, an individual.  Defendant dismissed with prejudice 12/13/10, per settlement approved 11/08/10.

3.  Complaint Against Net Winner Investors:  On March 2, 2010, the Receiver filed a complaint against the investors in Diversified who received amounts back from Diversified in excess of the amount that they had invested in Diversified. These net amounts exceed $1.4 million.  This complaint does not include approximately $1 million received from similar persons pursuant to settlements made before filing.  (USDC Case No. CV  10-01551-R-SS)  See Complaint.

 

Defendants: 

  1. DAVID R. MILLER, an individual. Voluntarily dismissed without prejudice on 05/10/10.
  2. ROBERT R. ROHN, an individual 
  3. MARY ROHN, an individual  
  4. CHARLES A. MATTERA, an individual.  Voluntarily dismissed without prejudice on 05/10/10. 
  5. CANDI ORTIZ, an individual.   Voluntarily dismissed without prejudice on 05/17/10.
  6. GABINO A. ORTIZ, an individual.  Voluntarily dismissed without prejudice on 05/17/10. 
  7. DAVID L. SARDESON, an individual.  Voluntarily dismissed without prejudice on 05/17/10. 
  8. THERESA M. SARDESON, an individual.  Voluntarily dismissed without prejudice on 05/17/10. 
  9. LESLIE W. COLLETT, an individual.  Voluntarily dismissed without prejudice on 07/26/10. 
  10. ROBERT MICHAEL ROHN, an individual  
  11. BENICIA CASTRO aka BERNICE L. CASTRO, an individual  
  12. CHARLES M. RICHARDSON, an individual  
  13. WILLIAM A. FRANKENSTEIN, an individual.  Voluntarily dismissed without prejudice on 05/25/10. 
  14. WILLIAM A. FRANKENSTEIN, as trustee of the WILLIAM A. FRANKENSTEIN TRUST.  Voluntarily dismissed without prejudice on 05/25/10. 
  15. YAKOV TENTSER, an individual.  Voluntarily dismissed without prejudice on 03/25/10. 
  16. YAKOV TENSTER, as trustee of the TENTSER FAMILY TRUST.  Voluntarily dismissed without prejudice on 03/25/10. 
  17. NATA TENTSER, an individual.  Voluntarily dismissed without prejudice on 03/25/10. 
  18. NATA TENSTER, as trustee of the TENTSER FAMILY TRUST.  Voluntarily dismissed without prejudice on 03/25/10. 
  19. SEENA SHER ROTHSCHILD, an individual  
  20. MALLORY A. KRONER, an individual  
  21. SANDY SMALLWOOD, as trustee of the WALTER G. WULFF TRUST  
  22. GEORGE KNOPFLER, an individual  
  23. SEYED A. AZIMI, an individual
  24. FARIDEH AZIMI, an individual  

4.  Complaint Against Elizabeth Versten and Lizzy's Heavenly Stuff:  On March 1, 2010, the Receiver filed a complaint against these defendants seeking recovery of $400,000 in connection with unpaid delinquent promissory note owed to Diversified. Litigation is ongoing.  (USDC Case No. CV 10-01500-R-SS)  See Complaint. 

 

Defendants: 

  1. ELIZABETH VERSTEN, an individual
  2. LIZZI'S HEAVENLY STUFF, INC., a California corporation

5.  Complaint Against Lenders Depot, Inc. and PetroReal Energy, Inc. et al.:  On March 2, 2010, the Receiver filed a complaint against these defendants seeking recovery of $500,000 in connection with a payment made by Diversified to PetroReal Energy, Inc. on account of an obligation owed by Lenders Depot, Inc. to PetroReal Energy, Inc.  (USDC Case No. CV 10-01468-R-SS)  See Complaint. 

 

Defendants: 

  1. PETROREAL ENERGY INC. fka PETROREAL OIL CORPORATION, a Canadian corporation
  2. PETROREAL OF AMERICA, INC., a Nevada corporation
  3. PETROREAL OF LOUISIANA, LLC, a Louisiana company
  4. LENDERS DEPOT, INC., a California corporation

6.  Complaint Against Lenders Depot, Inc. and Tierra Rejada Golf Club, LLC:  On February 26, 2010, the Receiver filed a complaint against these defendants seeking recovery of $22,250 in connection with a payment made by Diversified to Tierra Rejada Golf Club, LLC on account of an obligation owed by Lenders Depot, Inc. to PetroReal Energy, Inc.  (USDC Case No. CV 10-01475-R-SS)  See Complaint. 

 

Defendants: 

  1. TIERRA REJADA GOLF CLUB, LLC, a California company
  2. LENDERS DEPOT, INC., a California corporation 

7.  Complaint Against Shawna Friedman:  On December 7, 2009, the Receiver filed a complaint in the United States District Court against Shawna Friedman to avoid and recover allegedly fraudulent transfers, for unjust enrichment, constructive trust and equitable lien, for transfers totaling $345,442.  The United States Marshal has served a writ of attachment on Ms. Friedman's residence pending resolution of the litigation.  Litigation is ongoing. (USDC Case No. CV 09-08978-R-RR)  See Complaint.  Defendant dismissed on 06/18/10 per settlement.


 

8.  Complaint Against Julie and Robert Sitomer:  On December 7, 2009, the Receiver filed a complaint in the United States District Court against Julie and Robert Sitomer to avoid and recover allegedly fraudulent transfers, for unjust enrichment, constructive trust and equitable lien, for transfers totaling $470,929.  The United States Marshal has served a writ of attachment on Mr. and Mrs. Sitomer's residence pending resolution of the litigation.  (USDC Case No. CV 09-08975-R-SS)  See Complaint.  On 12/08/10, the case was closed pursuant to settlement agreement approved 11/08/10.
 
9.  Complaint Against Karen O'Callaghan:  On June 26, 2009, the Receiver filed a complaint in the United States District Court for the Central District of California against Karen O'Callaghan, Diversified Lending Group, Inc.'s, Chief Financial Officer and sometime President, to avoid and recover allegedly fraudulent transfers, for unjust enrichment, constructive trust and equitable lien, relative to transfers totaling more than $1.35 Million.  The U.S. Marshal has served a writ of attachment on Ms. O'Callaghan?s residence pending resolution of the litigation.  On 11/10/10, the Court granted the Receiver's Motion for Summary Adjudication against Karen O'Callaghan.  On 12/21/10, the Court entered a Judgment in favor of the Receiver and against Karen O'Callaghan for the actually fraudulent transfer of over $1.35 million plus interest.  Accordingly, this case is closed.  (USDC Case No. CV 09-4632-R-SS)  See Complaint.

10.  Complaint Against Kevin T. Mehlman:  On August 7, 2009, the Receiver filed a complaint in the United States District Court against Kevin T. Mehlman to avoid and recover allegedly fraudulent transfers, for unjust enrichment, constructive trust and equitable lien, for transfers totaling $310,000.  The United States Marshal has served a writ of attachment on Mr. Mehlman?s residence pending resolution of the litigation.  On 11/08/10, the Court approved the settlement between the Receiver and Kevin Mehlman.  This action was dismissed with prejudice on 11/15/10.  (USDC Case No. CV 09-5797-R-E)  See Complaint. 


11.  Complaint Against Kevin M. Keller:  On June 26, 2009, the Receiver filed a complaint in the United States District Court, Central District of California, against Kevin M. Keller, a diversified employee, to avoid and recover allegedly fraudulent transfers, for unjust enrichment, constructive trust and equitable lien, relative to transfers of Diversified assets totaling more than $1.3 Million.  The U.S. Marshal has served a writ of attachment on Mr. Keller's residence pending resolution of the litigation.  A settlement has been reached that will recover the house for the benefit of the receivership estate.  (USDC Case No. CV 09-4630-R-SS)  See Complaint.  Defendant dismissed with prejudice 04/05/10 per settlement approved 03/08/10.


 
 
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