BRENTON L. HORNER (SBN 92399) Horner & Associates 205 South Broadway, Suite 905 Los Angeles, CA 90012 Telephone: (213) 680-1716 Fax: (213) 680-1905 Email: bhornerlaw@aol.com ALLIED ARTISTS INTERNATIONAL, INC., a Nevada Corporation, v. ROBERT N. ROOKS; ALLIED ARTISTS PICTURES CORPORATION, a California Corporation, (see a++ac.hed ) UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA.. ~CV08-0B116 TO: DEFENDANT(S): Robert N. Rooks: Allied Artists Pictures Corporation; Darron Carr, Carlton Jinkins; Jammie Padilla; Mark Nolte; and JOHN DOES 1-25, Inclusive. A lawsuit has been filed against you. Within 20 days after service of this summons on you (not counting the day you received it), you must serve on the plaintiff an answer to the attached Iicomplaint D amended complaint D counterclaim D cross-claim or a motion under Rule 12 of the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff's attorney, Brenton L. Horner, whose address is 205 South Broadway, Suite 905, Los Angeles, CA 90012. If you fail to do so, judgment by default will be entered against you for the relief demanded in the complaint. You also must file your answer or motion with the court. Dated: D_E_C_-_9_2_00_8 _ [Use 60 days if the defendant is the United States or a United States agency, or is an offic 60 days by Rule 12(a)(3)j.
BRENTON L. HORNER (SBN 92399) LISA A. GALLO (SBN 201909) Homer & Associates 205 South Broadway, Suite 905 Los Angeles, CA 90012 Telephone: (213) 680-1716 Fax: (213) 680-1905 Email: bhornerlaw@aol.com Cl.ERK us ;W',yp.lcr CQven CENTR Al DiST, ( CAli. LOS f,ngh.." 6 Attorneys for Plaintiff Allied Artists International, Inc. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA ALLIED ARTISTS INTERNATIONAL, INC., a Nevada Corporation, ROBERT N. ROOKS; ALLIED ARTISTS PICTURES CORPORATION, a California Corporation; ALLIED ARTISTS PICTURES CORPORATION, a Nevada Corporation; DARRON CARR; CARL TON JINKENS; JAMMIE PADILLA; MARK NOLTE; and JOHN DOES 1-25, Inclusive, Case No. CVOa-08116 GAF COMPLAINT FOR TRADEMARK INFRINGEMENT; FALSE DESCRIPTION; INJURY TO BUSINESS REPUTATION (Rl) COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION. AND INJURY TO BUSINESS REPUTATION
1 Plaintiff, ALLIED ARTISTS INTERNATIONAL, INC. (hereinafter "Plaintiff' or 2 "Allied"), by their attorneys, as and for their complaint against Defendants, ROBERT N. 3 ROOKS; ALLIED ARTISTS PICTURES CORPORATION, a California Corporation; 4 ALLIED ARTISTS PICTURES CORPORATION, a Nevada Corporation; DARRON 5 CARR; CARLTON JINKENS; JAMMIE PADILLA; and MARK NOLTE (hereinafter 6 collectively referred to as "Defendants" or individually by Last Name), alleges as follows: 10 False Description arising under 32 and 43 of the Lanham Act, 15 U.S.C. 1114(1) 11 (Trademark Infringement) and 1125(a) (Unfair Competition and False Description) and 12 for Injury to Business Reputation. 14 to 28 U.S.C. 1331 and 1338(a) and 15 U.S.C. 1121. This Court has related claim 15 jurisdiction over the state law tort claim pursuant to 28 U.S.C. 1338(b) and 28 U.S.C. 16 1367. 18 Pictures Corporation, because Defendants maintain their principal place of business in the 19 State of California. 21 Defendants are subject to personal jurisdiction in this district at the time the action is 22 commenced, and under 28 U.S.C. 1391(b) and (c) because a substantial part of the 23 events or omissions giving rise to the claims occurred in this district, a substantial part of 24 the property that is the subject of the action is situated in this district, and the Defendants 25 maintain their principal place of business in this district. COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
3 herein was, a corporation organized and existing under the laws of the State of Nevada, 4 having a principal place of business at 5415 W. Harmon Avenue, Suite 2001, Las Vegas, 5 Nevada 89103. 7 is, and at all times mentioned herein was, a corporation organized and existing under the 8 laws of the States of California and Nevada, having a principal place of business at 880 9 West 1st Street, #306, Los Angeles, California 90012. 11 herein as DOES 1 through 25, inclusive, and therefore sues these defendants by such 12 fictitious names. Allied will amend this complaint to allege their true names and 13 capacities when ascertained. Allied is informed and believes and therefore alleges that 14 each of the fictitiously named defendants is responsible in some manner for the 15 occurrences herein alleged, and Allied's injuries as herein alleged were proximately 16 caused by such defendants. These fictitiously named defendants along with the 17 defendants named above, are herein referred to collectively as "Defendants." 21 products since the beginning of motion pictures incorporating sound or "talkies." In the 22 early 1980's Robert Abernathy and Richard Smith acquired the rights to use the name 23 Allied Artists and Allied Artists Records. On May 10, 1995, trademark and service mark 24 rights to the name Allied Artists were assigned to William Redmond as the principal of 25 the Allied Entertainment Group. On June 18, 1999, The Allied Entertainment Group 26 incorporated under the laws of the state of Delaware as The Allied Entertainment Group, 27 Inc.. Pursuant to a stock transfer agreement, the Allied Entertainment Group, Inc., a 28 Delaware Corporation was acquired on April 1, 2001 by Plaintiff, Allied Artists 3 COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
1 International, Inc., a Nevada Corporation (formerly Allied Artists Records). Regardless 2 of Plaintiffs corporate name or state of incorporation, it has at all times continued to use 3 the name Allied Artists in commerce, within the entertainment fields, including but not 4 limited to the production and distribution of motion pictures, phonograph records, DVDs, 5 CDs and interactive entertainment software. 8 services of entertainment professionals, namely, talent agency services" in International 9 Class: 035; and "Production and distribution of entertainment services, namely, 10 phonograph records, motion picture films, video tapes, DVDs, and radio and television 11 programs" in International Class: 041, by the United States Patent and Trademark Office 12 ("USPTO"), see Exhibit A. 14 Section 8 of the Trademark Act, 15 U.S.C. 1058(a)(l) and Section 15 of the Trademark 15 Act, 15 U.S.C. 1065, see Exhibit B. Accordingly, Plaintiffs rights to the trademark 16 "ALLIED ARTISTS" in the above mentioned International Classes were deemed 17 "Incontestable" under' Section 15 of the Trademark Act, 15 U.S.C. 1065. 19 was formed under the laws of the State of California on April 30, 2008 and previously 20 under the laws of the State of Nevada on March 28, 2008. Both corporations have 21 consistently listed the name "Mark Nolte" as their agent for service of process. Despite 22 the fact that Mr. Nolte's address is listed in California as 880 W. 1st Street, #306, Los 23 Angeles, California 90012, he is also listed in Nevada at 6515 Villa Del Sol Courts, Suite 24 B, Las Vegas, Nevada 89110. However, Mr. Nolte's mailing address is listed on the 25 Nevada corporation as 880 W. 1st Street, #306, Los Angeles, California 90012, see 26 Exhibit C. 28 once headed by Defendant Robert N. Rooks previously entered into an agreement with 4 COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
1 Plaintiff that could have resulted in Merit's acquiring the rights to Plaintiffs trademarks 2 and service marks. However, Merit defaulted on certain conditions prior to closing of the 3 transaction, and as a result, the agreement terminated by its own terms. Since the 4 termination of the agreement between Merit and Allied, counsel for Allied has notified 5 Merit of the termination and demanded that Merit and Defendant Robert N. Rooks in 6 particular, cease any use ofthe Allied name or mark, see Exhibit D. 8 without Allied's permission, Merit changed its name to Allied Artists Entertainment 9 Group, Inc. and publicly-traded stock under the Allied Artists name, prompting Allied to 10 issue a demand that Merit immediately Cease and Desist any further use of its 11 trademarked name. 13 name from Allied Ar!ists Entertainment Group, Inc. to International Synergy Holding 14 Company, LTD., seemingly complying with Allied's Cease and Desist demand. 16 California entered a final judgment against Rooks, permanently enjoining him from future 17 violations of Section 1O(b) of the Securities Exchange Act of 1934 and Rule 10b-5 18 thereunder, and ordered Rooks to pay a $100,000 third tier civil penalty. The Court found 19 that in 1996 Rooks disseminated false and misleading information that caused a publicly- 20 traded company's stock price to skyrocket from $.13 to $4, or more than 3,000%, during 21 June through September of 1996 (see Exhibit E). Therefore, as of July 29,2002, Rooks 22 was prohibited from acting as an officer or director of Merit or any other publicly-traded 26 investor had previously done business with Allied and phoned Allied's President, Robert 27 Fitzpatrick, to verify Rooks' claims. Mr. Fitzpatrick advised the investor of Rooks' 28 fraudulent background, explained that the real Allied has no relationship whatsoever with 5 COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
1 Rooks and requested that the investor provide sufficient information as to Rooks' 2 whereabouts to enable Allied to prosecute Rooks and his co-defendants for trademark 3 infringement. The investor was not forthcoming with information, prompting Allied to 4 retain the services of a private investigator, who uncovered Rooks' location and the 5 existence of the two Defendant corporations. 7 fraudulently attract investors, to market and promote its products within the entertainment 8 industry in general is deceptively and confusingly similar to Allied's long-standing 9 trademark for "Promoting the services of entertainment professionals, namely, talent 10 agency services" and "Production and distribution of entertainment services, namely, 11 phonograph records, motion picture films, video tapes, DVDs, and radio and television 12 programs." 14 that holds itself out to be affiliated with the real Allied Artists and invites hopeful artists 15 to sign up with the Defendants' company, passes itself off as the rightful holder of Allied's 16 mark, claims a professional relationship with luminaries such as Jamie Foxx, and 17 references the imposter "Allied Artists Pictures Corporation" as having been acquired by 18 a long time alter ego of Defendant Rooks, International Synergy Holding Company, 19 which appears to now be listed on the Frankfurt Exchange. See Exhibit F. Plaintiffs 20 website, which is the only legitimate website for "Allied Artists" is located at 21 alliedartists.com and can be accessed through the following additional domains, all of 22 which redirect to the primary alliedartists.com site: alliedarists.net, alliedartists.info, 23 alliedartists. ws, alliedartists. us, alliedartists. biz, alliedartists. tv, alliedartist.net, 24 alliedartist.org. Defendants' website located at alliedartistspicturescorp.com is not and 25 has never been authorized by Plaintiffs and exists in further violation of Allied's mark. 27 the same types of wholesale, retail and distribution channels and to the same classes of 28 purchasers as Allied's products and services. 6 COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
4 Allied's trademark rights, aimed at preventing Allied from continuing to build a business 5 around a mark that it has long possessed and over which its rights are now incontestable 6 as a matter of law. FIRST CLAIM TRADEMARK INFRINGEMENT UNDER LANHAM ACT 32 13 infringement of Allied's registered trademark "Allied Artists" and is likely to cause 14 confusion, mistake and deception of the public as to the identity and origin of Allied's 15 goods, causing irreparable harm to Allied for which there is no adequate remedy at law. SECOND CLAIM UNFAIR COMPETITION UNDER LANHAM ACT 43 24 services in direct competition with Allied's products and services constitutes Unfair 25 Competition pursuant to 15 U.S.C. 1125(a). Defendants' use of Allied's mark is likely 26 to cause confusion, mistake and deception among consumers. Defendants' unfair 27 competition has caused and will continue to cause damage to Allied, and is causing 28 irreparable harm to Allied for which there is no adequate remedy at law. 7 COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
THIRD CLAIM FALSE DESCRIPTION 6 copy of Allied's trademark established in the entertainment-related market for consumer 7 products that Defendants' use thereof in the context of entertainment is likely to cause 8 confusion, or to cause mistake, or to deceive consumers as to the affiliation, connection or 9 association of Allied's products, or to deceive consumers as to the origin, sponsorship or 10 approval by Allied of the Defendants' counterfeit products. 13 1125(a) (Section 43(a) of the Lanham Act). 14 FOURTH CLAIM COMMON LAW INJURY TO BUSINESS REPUTATION 20 and creates a likelihood of injury to Allied's business reputation because persons 21 encountering Allied and its products and services will believe that Allied is affiliated with 22 or related to or has the approval of Defendants, and any adverse reaction by the public to 23 Defendants and the quality of its products and the nature of its business will injure the 24 business reputation of Allied and the goodwill that it enjoys in connection with its mark 25 "Allied Artists." 26 27 WHEREFORE, Plaintiff prays judgment against Defendants, and each of them, as 28 follows: COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
2 CORPORATION, a California Corporation; ALLIED ARTISTS PICTURES 3 CORPORATION, a Nevada Corporation; DARRON CARR; CARL TON JINKENS; 4 JAMMIE PADILLA; and MARK NOLTE and their agents, officers, employees, 5 representatives, successors, assigns, attorneys and all other persons acting for, with, by, 6 through or under authority from Defendants, and each of them, be preliminarily and 7 permanently enjoined from: 11 any way similar to Allied's trademark "Allied Artists," or that is likely to cause 12 confusion, mistake, deception, or public misunderstanding as to the origin of 13 Allied's products or their connectedness to Defendants. 14 2. The Defendants be required to file with the Court and serve on Allied 15 within thirty (30) days after entry of the Injunction, a report in writing under oath setting 16 forth in detail the manner and form in which Defendants have complied with the 17 Injunction; 19 damages suffered by Allied resulting from the acts alleged herein; 20 4. That, pursuant to 15 V.S.C. 1117, Defendants be compelled to account to 21 Allied for any and all profits derived by it from its illegal acts complained of herein; 22 5. That the Defendants be ordered pursuant to 15 V.S.C. 1118 to deliver up 23 for destruction all containers, labels, signs, prints, packages, wrappers, receptacles, 24 advertising, promotional material or the like in possession, custody or under the control of 25 Defendants bearing a trademark found to infringe on Allied's trademark rights, as well as 26 all plates, matrices, molds, dies, masters and other means of making the same; COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
4 provided for in 15 D.S.C. 1116 and 1117 or under state law; and, 5 9. For such other and further relief as the Court deems just and proper. 6 Dated: December,2008 7 8 9 10 11 12 13 14 Br nt n L. Homer Att meys for Plaintiff ALLIED ARTISTS INTERNATIONAL, INC. 15 JURY DEMAND 16 Plaintiff hereby demands a trial by jury of all issues triable before a jury. 17 Dated: December -i-, 2008 18 19 20 21 re n L. Homer A omeys for Plaintiff ALLIED ARTISTS INTERNATIONAL, INC. COMPLAINT FOR TRADEMARK INFRINGEMENT, UNFAIR COMPETITION, FALSE DESCRIPTION, AND INJURY TO BUSINESS REPUTATION
~,.-'~. AND TRADEMARK OFFICE Commissioner for Trademarks P.O. Box 1451 Alexandria, VA 22313-1451 www.uspto.gov REGISTRATION NO: 2522770 SERIAL NO: 78/029541 REGISTRATION DATE: 12/25/2001 MARK.: ALLIED ARTISTS AND DESIGN REGISTRATION OWNER: Allied Artists International, Inc. CORRESPONDENCE ADDRESS: ALLIED INTERNATIONAL, INC P.O. BOX 2035 INDUSTRY, CA 91746-0035 NOTICE OF ACCEPTANCE 15 U.S.C. Sec. 1058(a)(l) THE COMBINED AFFIDAVIT FILED FOR THE ABOVE-IDENTIFIED REGISTRATION MEETS THE REQUIREMENTS OF SECTION 8 OF THE TRADEMARK. ACT, 15 U.S.C. Sec. 1058. ACCORDINGLY, THE SECTION 8 AFFIDAVIT IS ACCEPTED. NOTICE OF ACKNOWLEDGEMENT 15 U.S.C. Sec. 1065 THE AFFIDAVIT FILED FOR THE ABOVE-IDENTIFIED REGISTRATION MEETS THE REQUIREMENTS OF SECTION 15 OF THE TRADEMARK. ACT, 15 U.S.C. Sec. 1065. ACCORDINGLY, THE SECTION 15 AFFIDAVIT IS ACKNOWLEDGED. THE REGISTRATION WILL REMAIN IN FORCE FOR CLASS(ES): 035, 041. HENSON, EVERETT J PARALEGAL SPECIALIST POST-REGISTRATION DIVISION 571-272-9500 PLEASE SEE THE REVERSE SIDE OF THIS NOTICE FOR INFORMATION CONCERNING REQUIREMENTS FOR MAINTAINING THIS REGISTRATION
REQUIREMENTS FOR MAINTAINING A FEDERAL TRADEMARK REGISTRATION I) SECTION 8: AFFIDAVIT OF CONTINUED USE The registration shall remain in force for 10 years. except that the registration shall be canceled for failure to file an Affidavit of Continued Use under Section 8 of the Trademark Act. 15 U.S.C. Sec. 1058. at the end of each successive 10-year period following the date of registration. Failure to file the Section 8 Affidavit will result in the cancellation of the registration. The registration shall remain in force for 10 years. subject to the provisions of Section 8. except that the registration shall expire for failure to file an Application for Renewal under Section 9 of the Trademark Act. 15 U.S.C. Sec. 1059. at the end of each successive 10-year period following the date of registration. Failure to file the Application for Renewal will result in the expiration of the registration. NO FURTHER NOTICE OR REMINDER OF THESE REQUIREMENTS WILL BE SENT TO THE REGISTRANT BY THE PATENT AND TRADEMARK OFFICE. IT IS RECOMMENDED THAT THE REGISTRANT CONTACT THE PATENT AND TRADEMARK OFFICE APPROXIMATELY ONE YEAR BEFORE THE EXPIRATION OF THE TIME PERIODS SHOWN ABOVE TO DETERMINE APPROPRIATE REQUIREMENTS AND FEES.
California Business Search http://kepler.sos.ca.gov/corpdata/showalllist?querycorpnumber=c30... 1 of 1 5/18/2008 12:03 AM DISCLAIMER: The information displayed here is current as of MAY 16, 2008 and is updated weekly. It is not a complete or certified record of the Corporation. Corporation ALLIED ARTISTS PICTURES CORPORATION Number: C3039892 Date Filed: 4/30/2008 Status: active Jurisdiction: California Address 880 W 1ST ST #306 LOS ANGELES, CA 90012 Agent for Service of Process MARK NOLTE 880 W 1ST ST #306 LOS ANGELES, CA 90012 Blank fields indicate the information is not contained in the computer file. If the status of the corporation is "Surrender", the agent for service of process is automatically revoked. Please refer to California Corporations Code Section 2114 for information relating to service upon corporations that have surrendered.
Entity Details - Secretary of State, Nevada https://esos.state.nv.us/sosservices/anonymousaccess/corpsearch/pri... 1 of 2 5/18/2008 1:33 AM ALLIED ARTISTS PICTURES CORPORATION Business Entity Information Status: Active File Date: 3/28/2008 10:30:54 AM Type: Domestic Corporation Corp Number: E0203342008-7 Qualifying State: NV List of Officers Due: 3/31/2009 Managed By: Expiration Date: Resident Agent Information Name: MARK NOLTE 6515 VILLA DEL SOL COURTS Address 1: SUITE B Address 2: City: LAS VEGAS State: NV Zip Code: 89110 Phone: Fax: Email: Mailing Address 1: 880 W 1ST ST #306 Mailing Address 2: Mailing City: LOS ANGELES Mailing State: CA Mailing Zip Code: 90012 Financial Information No Par Share Count: 0 Capital Amount: $ 100.00 Par Share Count: 100.00 Par Share Value: $ 1.00 Officers President - DARRON CARR Address 1: 880 W 1ST ST #306 Address 2: City: LOS ANGELES State: CA Zip Code: 90012 Country: Status: Active Email: Treasurer - CARLTON JINKENS Address 1: 880 W 1ST ST #306 Address 2: City: LOS ANGELES State: CA Zip Code: 90012 Country: Status: Active Email: Secretary - JAMMIE PADILLA Address 1: 880 W 1ST ST #306 Address 2: City: LOS ANGELES State: CA Zip Code: 90012 Country: Status: Active Email: Director - ROBERT ROOKS Address 1: 880 W 1ST ST #306 Address 2: City: LOS ANGELES State: CA Zip Code: 90012 Country: Status: Active Email: Include Inactive Officers Actions\Amendments Action Type: Articles of Incorporation Document Number: 20080214603-06 # of Pages: 1
Entity Details - Secretary of State, Nevada https://esos.state.nv.us/sosservices/anonymousaccess/corpsearch/pri... 2 of 2 5/18/2008 1:33 AM File Date: 03/28/2008 Effective Date: Initial Stock Value: Par Value Shares: 100 Value: $ 1.00 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 100.00 Action Type: Initial List Document Number: 20080214607-40 # of Pages: 1 File Date: 03/28/2008 Effective Date: (No notes for this action)
BOARD OF DIRECTORS August 15, 2000 Mr. Robert N. Rooks 1801 Avenue of the Stars, Suite 640 Los Angeles, California 90067 Re: Further use of Allied s trade name, trademark or service mark Dear Mr. Rooks: As you know, on July 20, 2000, our General Counsel, Ashley Posner, wrote the attached letter notifying Merit Diversified International, Inc. ( Merit/MP3 ) of a breach of the April 27, 2000 agreement between The Allied Entertainment Group, Inc ( Allied ) and Merit/MP3. To date that breach has not been fully cured, and the contractual termination is scheduled to occur at 12:01 a.m. on August 20, 2000. Given the impending nature of said termination, we are hereby notifying you that any further use of the corporate name The Allied Entertainment Group, Inc. or its trade name, trademark and service mark Allied Artists would in our opinion constitute a material misrepresentation. To be specific, it is our understanding that Merit/MP3 has entered into negotiations with various entities premised upon Allied s future participation. Obviously, subsequent to the aforementioned termination date Merit/MP3 will no longer have any association with Allied, and it would be a serious misrepresentation to enter into any agreement on the basis of an on-going relationship that you know will not exist. Your cooperation will be appreciated. Sincerely yours, /s/ Original Signed MS/iti Cc: Ashley Posner, Esquire Curtis Shaw, Esquire Georgetta H. R. Rainey Stephan Bauer Mandy Shalako, Member, Board of Directors On Behalf of the entire Board of Directors ALLIED ENTERTAINMENT GROUP, INC. CORPORATE HEADQUARTERS 273 West Allen Avenue San Dimas California 91773-1493 Tel: 626.330.0600 Fax: 909.971.9630 Email: Corporate@AlliedArtists.net Internet: www.alliedartists.net
Robert N. Rooks, John W. Duffell III, and Charles E. Yost II : Lit. Rel. N... http://www.sec.gov/litigation/litreleases/lr17640.htm 1 of 2 5/18/2008 2:41 AM Home Previous Page Securities and Exchange Commission Litigation Release No. 17640 / July 31, 2002 Securities and Exchange Commission v. Robert N. Rooks, John W. Duffell III, and Charles E. Yost II Civil Action No. EDCV 01-846 (SGLx) (Central District of California, Eastern Division) CEO ENJOINED AND ORDERED TO PAY $100,000 PENALTY FOR SECURITIES FRAUD Recidivist Securities Law Violator also liable for violating securities registration provisions The Securities and Exchange Commission announced today that Robert N. Rooks, former CEO of JDMC Global Corp., was found liable for securities fraud by a Los Angeles federal court. On July 29, 2002, the United States District Court for the Central District of California entered a final judgment against Rooks, a resident of Malibu, California, age 57, permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering him to pay a $100,000 third tier civil penalty. The Court found that in 1996 Rooks disseminated false and misleading information about JDMC Global's financial condition and a supposed South African housing project. The Court found that Rooks' false and misleading information caused JDMC Global's stock price to skyrocket from $.13 to $4, or more than 3,000%, during June through September 1996. At the time of Rooks' fraud, JDMC Global was a publicly-traded company based in Los Angeles, California that purportedly engaged in mining, construction, and entertainment. The Court also found that John W. Duffell, JDMC Global's stock promoter and a repeat securities law offender, violated the securities registration provisions of the federal securities laws, Sections 5(a) and 5(c) of the Securities Act of 1933. Duffell, an American living in France, age 52, promoted JDMC Global's unregistered stock and directed the company's sales efforts in the United States. The Court will decide in later proceedings the appropriate remedies against Duffell, including the amount of disgorgement and civil penalties and whether to issue an injunction for violating the federal securities registration provisions. In September 1996, the Commission suspended trading in the stock of JDMC Global, whose stock was traded on the Over-The-Counter Bulletin Board. (See Lit. Release No. 34-37681, September 16, 1996.) In May 2000, the SEC sued Rooks, Duffell and Charles E. Yost, another stock promoter, for fraudulently selling unregistered stock of JDMC Global. (See Lit. Release No. 16550, May 12, 2000.) The trial against Duffell and Yost for federal securities fraud is set for December 3, 2002. In 1979, in another SEC action, the United States District Court for the Central District of California issued a permanent injunction against
Robert N. Rooks, John W. Duffell III, and Charles E. Yost II : Lit. Rel. N... http://www.sec.gov/litigation/litreleases/lr17640.htm 2 of 2 5/18/2008 2:41 AM Duffell for securities fraud and registration violations of the federal securities laws. In 1982, Duffell was convicted and sentenced to prison for securities fraud arising out of the same conduct in the 1979 SEC action. http://www.sec.gov/litigation/litreleases/lr17640.htm Home Previous Page Modified: 07/31/2002
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Case 2:00-cr-00302-LRH-RJJ Document 1-397433 Filed 09/06/2000 Page 11 of 12
Case 2:00-cr-00302-LRH-RJJ Document 1-397433 Filed 09/06/2000 Page 12 of 12
j)istrict COURT, CENTRAL DISTRICl CIVIL COVER SHEET DEFENDANTS ROBERT N. ROOKS; ALLIED ARTISTS PICTURES CORPORATION; DARRON CARR; CARLTON JINKENS; JAMMIE PADILLA; MARK NOLTE AND DOES 1-25, Inclusive (b) County of Residence Los Angeles of First Listed Plaintiff (Except in US. Plaintiff Cases): County of Residence of First Listed Defendant (In US. Plaintiff Cases Only): Los Angeles (c) Attorneys (Firm Name, Address and Telephone Number. If you are representing yourself, provide same.) Brenton L. Homer (SBN 92399) (213) 680-1716 Law Offices of Homer & Associates 205 South Broadway, Suite 905 Los Angeles, CA 90012 III. CITIZENSHIP OF PRINCIPAL PARTIES - For Diversity Cases Only (Place an X in one box for plaintiff and one for defendant.) ~3 Federal Question (US. Government Not a Party) 02 US. Government Defendant 0 4 Diversity (Indicate Citizenship Citizen of Another State of Parties in Item III) PTF DEF PTF DEF 01 01 Incorporated or Principal Place 04 04 of Business in this State 02 02 Incorporated and Principal Place 05 05 of Business in Another State IV. ORIGIN (Place an X in one box only.) ~I Original 02 Removed from 0 3 Remanded from 0 4 Reinstated or 0 5 Transferred from another district (specdy): 0 6 Multi- Proceeding State Court Appellate Court Reopened District Litigation o 7 Appeal to District Judge from Magistrate Judge VI. CAUSE OF ACTION (Cite the US. Civil S atute under which you are filing and write a brief statement of cause. Do not cite jurisdictional statutes unless diversity.) 15 USC 1114, 15 USC 1125(a), Trademark Infringement OTHER STA1'O.TES 400 State Reapportionment 110 Insurance 410 Antitrust 0120 Marine 430 Banks and Banking 130 Miller Act o 450 CommercelICC 140 Negotiable Instrument Rates/etc. o 150 Recovery of o 460 Deportation Overpayment & 0470 Racketeer Influenced Enforcement of and Corrupt Judgment Organizations 151 Medicare Act 480 Consumer Credit o 152 Recovery of Defaulted 490 Cable/Sat TV Student Loan (Excl. 810 Selective Service Veterans) o 850 Securities/Commodities o 153 Recovery of /Exchange Overpayment of o 875 Customer Challenge 12 Veteran's Benefi ts USC 3410 o 160 Stockholders' Suits o 890 Other Statutory Actions o 190 Other Contract 0891 Agricultural Act o 195 Contract Product o 892 Economic Stabilization Liability Act o 196 Franchise 893 Environmental Matters R$ALPRQPERTx 894 Energy Allocation Act o 210 Land Condemnation o 895 Freedom of Info. Act 0220 Foreclosure 0900 Appeal of Fee Determination Under Equal 0240 Torts to Land o 230 Rent Lease & Ejectment Access to Justice 245 Tort Product Liability o 950 Constitutionality of o 290 All Other Real Property State Statutes PEI~SCINAL INJURY 0310 Airplane 0315 Airplane Product Liability o 320 Assault, Libel & Slander 0330 Fed. Employers' Liability 0340 Marine o 345 Marine Product Liability 0350 Motor Vehicle 0355 Motor Vehicle Product Liability o 360 Other Personal Injury o 362 Personal Injury- Med Malpractice o 365 Personal Injury- Product Liability o 368 Asbestos Personal Injury Product Liability PROPERTY Motions to 0370 Other Fraud Vacate Sentence 0371 Truth in Lending Habeas Corpus 0380 Other Personal 0530 General Property Damage 0535 Death Penalty 0385 Property Damage 0540 Mandamus/ Product Liability Other aan&.r.'u~cy 0 550 Civil Rights o 422 Appeal 28 USC 0 555 Prison Condition 158 F'OllFEITUREl o 423 Withdrawal 28 PENALTY o 610 Agriculture o 620 Other Food & 441 Voting Drug o 442 Employment o 625 Drug Related 0443 Housing/Accommodations Seizure of Property 21 USC 444 Welfare 881 o 445 American with 0630 Liquor Laws Disabilities - o 640 R.R. & Truck Employment o 650 Airline Regs o 446 American with o 660 Occupational Disabilities - Safety /Health Other 0690 Other o 440 Other Civil Rights Act o 720 Labor/Mgmt. Relations o 730 Labor/Mgmt. Reporting & Disclosure Act 740 Railway Labor Act o 790 Other Labor Litigation 0791 Empl. Ret. Inc. Security Act PROPERTY RIGHTS o 820 Copyrights 0830 Patent ~ 840 Trademark SQCIALSECURlTY 0861 HIA (I 395ft) 0862 Black Lung (923) o 863 DIWC/DIWW (405(g» o 864 SSID Title XVI 0865 RSI (405(g» FEDERAL TAX SUITS 0870 Taxes (US. Plaintiff or Defendant) o 871 IRS-Third Party 26 USC 7609 VIII(a). IDENTICAL CASES: Has this action been previously filed and dismissed, remanded or closed? If yes, list case number(s): _F_O_R_O_F_F_I_C_E_U_SE_O_N_L_Y_: c_as_e_n_um_b_er_: ===:::_.-_-~===================:_ CV-71 (07/05) CIVIL COVER SHEET Page I of2 _