FILED: NEDON NEW YORK COUNTY CLERK 07/30/2012 INDEX NO /2012 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 07/30/2012.

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1 FILED: NEDON NEW YORK COUNTY CLERK 07/30/2012 INDEX NO /2012 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 07/30/ against - Plaintiff, SUMMONS Date Filed: ~2~00171 YAU ON COMPANY a/k/a YAU ON PAWN SHOP LIMITED, GEMOLOGICAL INSTITUTE OF AMERICA (as Stakeholder), Plaintiff hereby designates as the place of trial. NEW YORK COUNTY Defendants' place of Business: Yau On Company dk/a Yau On Pawn Shop Limited No. 14 G/F Jade Plaza, On Chee Rd Tai Po, NT Hong Kong Gemological Institute Of JAN America 580 Fifth Avenue. Suite 200 CWNn -8 WFICENew York, NY &A. NEWYORK Location of Property: L New York, New York To the above-named Defendant(s); YOU ARE HEREBY SUMMONED to answer the Complaint in this action and to serve a copy of your Answer, or, if the Complaint is not served with this Summons, to serve a Notice of Appearance, on the Plaintiffs attorneyls) within 20 days after the service of this Summons, exclusive of the day of service (or within 30 days after the service is completed if this Summons is not personally delivered to you within the State of New York); and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the Complaint. Dated: New York, New York January 'j-, 2012 Attorney for Plaintiff Graff Diamonds Ltd. 111 Broadway, gth Floor New York, New York (212) Our File No.: Supreme Court Records OnLine Library - page 1 of 9

2 TO DEFENDANTS: YAU ON COMPANY a/md YAU ON PAWN SHOP LIMITED No. 14 G/F Jade Plaza, On Chee Rd Tai Po, NT, Hong Kong GEMOLOGICAL INSTITUTE OF AMERICA 580 Fifth Avenue, Suite 200 New York, NY Supreme Court Records OnLine Library - page 2 of 9

3 I 1 Plaintiff, - against - COMPLAINT Plaintiff, GRAFF DIAMONDS LIMITED, by its attorneys, WADE CLARK MULCAHY, as and for its Complaint against Defendants YAU ON COMPANY a/k/a YAU ON PAWN SHOP LIMITED ( Yau ) and GEMOLOGICAL INSTITUTE OF AMERICA ( GIA ), upon information and belief, respectfully alleges as follows: PARTIES 1. Plaintiff, GRAFF DIAMONDS LIMITED ( Graff ) is a foreign corporation and diamond company with business locations throughout the world, including New York, New York. 2. Upon information and belief, defendant Yau is a Hong Kong entity whose full address is No. 14 G/F Jade Plaza, On Chee Rd Tai Po, NT, Hong Kong. 3. Defendant GIA is a non-profit organization that grades and certifies gems and jewelry with locations throughout the world, including New York, New York. FACTS 4. On July 5, 2007, armed robbers stole more than $20 million in jewelry from a Graff store located at 11 Sloane Street, in London, England ( the Robbery ). 5. One of the pieces of jewelry stolen in the Robbery was a Carat Yellow Diamond ( the Diamond ). 1 Supreme Court Records OnLine Library - page 3 of 9

4 Graff, at all times mentioned herein, was the true owner of the Diamond, Graff, at all times mentioned herein, was the sole owner of the Diamond. Graff, at all times mentioned herein, had full and clear title to the Diamond. Prior to the Robbery, Graff submitted the Diamond to the GIA for analysis, grading, and certification Prior to the Robbery, the GIA analyzed, graded, and certified the Diamond. Upon information and belief, the GIA maintains detailed records of a1 gems and jewelry submitted to the GIA for analysis, including the Diamond. 12. Subsequent to the Robbery, Graff, andlor a party acting on Graff's behalf, notified the GIA that the Diamond had been stolen. 13. Subsequent to the Robbery, Yau either individually or through an authorized agent, submitted a stone to the GIA for analysis, grading, and certification. 14. Analysis performed by the GIA revealed that the stone submitted by Yau to the GIA was the Diamond. 15. The GIA has informed Graff that Yau submitted the Diamond to the GIA. At some point in time after the Robbery, the Diamond was recut and reconstituted as a Carat Modified Cushion Cut diamond. 16. On or about January 26, 2011, Graff demanded that Yau agree to allow the GIA to return the Diamond to Graff, but Yau has refused. 17. Upon information and belief, the GIA has secured the Diamond at its laboratory located in New York pending resolution of the competing claims of ownership between Graff and Yau. 18. The amount in controversy in this matter exceeds the jurisdictional limits of all lower courts which would otherwise exercise jurisdiction over this matter, 2 Supreme Court Records OnLine Library - page 4 of 9

5 i AS AND FOR A FIRST CAUSE OF ACTION DECLARATORY JUDGMENT - VOID SALE 19. Graff repeats and re-alleges each and every allegation contained in paragraphs 1 through 18 as if fully set forth herein. 20. Because the Diamond was stolen from Graff during the Robbery, no party in the chain of custody subsequently possessing the Diamond, including Yau, has good title. 21. Regardless of the circumstances under which Yau obtained the Diamond, Yau obtained nothing more than void title (or no title) to the Diamond. 22. Graff remains the only rightful owner possessing good title to the Diamond. 23. Therefore, Graff is entitled to a judicial determination and declaration that Yau has void title in the Diamond; that Graff is the true owner of the Diamond; that Graff is the only party with good title to and the right to exclusive possession of the Diamond; that Graff is entitled to immediate possession of the Diamond; and that the Diamond must be immediately delivered to Graff. AS AND FOR A SECOND CAUSE OF ACTION FAILURE TO PURCHASE IN GOOD FAITH AND/OR AS A BUYER IN THE ORDINARY COURSE 24. Graff repeats and re-alleges each and every allegation contained in paragraph 1 through 23 as if full set forth herein. 25. Upon information and belief, Yau, purchased the Diamond for less than its fair market value. 26. Upon information and belief, Yau, was and/or should have been aware that the Diamond was sold to it in violation of the rights of the true owner(s). 3 Supreme Court Records OnLine Library - page 5 of 9

6 27. Therefore, upon information and belief, Yau was not a good faith purchaser anc /or buyer in the ordinary course of business Graff remains the only rightful owner possessing good title to the Diamond. Therefore, Graff is entitled to a judicial determination and declaration that Yau was not a good faith purchaser andlor buyer of the Diamond in the ordinary course of business; that Graff is the true owner of the Diamond; that Graff is the only party with good title to and the right to exclusive possession of the Diamond; that Graff is entitled to immediate possession of the Diamond; and that the Diamond must be immediately delivered to Graff. AS AND FOR A THIRD CAUSE OF ACTION FOR REPLEVIN 30. Graff repeats and re-alleges each and every allegation contained in paragraph 1 through 29 as if full set forth herein, 31. At all times herein Graff is and was the true owner of the Diamond and entitled to immediate possession of the Diamond , The GIA is in possession of the Diamond. Yau has only void title to the Diamond. Yau is not a good faith purchaser. Yau is not a buyer in the ordinary course of business. Prior to the commencement of this action, GIA has demanded that Yau allow the GIA to return the Diamond to Graff and Yau has refused. 37. Graff is the only rightful owner possessing good title to the Diamond and the only party with the right to exclusive possession of the Diamond, and therefore Graff 4 Supreme Court Records OnLine Library - page 6 of 9

7 applies to this Court for an order that Yau and the GIA must immediately and unconditionally relinquish, return and replevy the Diamond to Graff. WHEREFORE, Graff demands judgment as follows: a. On the first cause of action: declaring that Yau was not a good faith purchaser and/or buyer of the Diamond in the ordinary course of business; that Graff is the true owner of the Diamond; that Graff is the only party with good title to and the right to exclusive possession of the Diamond; that Graff is entitled to immediate possession of the Diamond; and that the Diamond must be immediately delivered to Graff; b. On the second cause of action: declaring that Yau was not a good faith purchaser and/or buyer of the Diamond in the ordinary course of business; that Graff is the true owner of the Diamond; that Graff is the only party with good title to and the right to exclusive possession of the Diamond; that Graff is entitled to immediate possession of the Diamond; and that the Diamond must be immediately delivered to Graff; c. On the third cause of action: ordering Yau and the GIA to immediately and unconditionally relinquish, return and replevy the Diamond to Graff; d. Awarding Graff the costs of suit incurred herein, including reasonable attorneys fees; 5 Supreme Court Records OnLine Library - page 7 of 9

8 e. Awarding Graff such other d further relief thi Court deems just and proper. Dated: New York New York January A, A ~ By: Michael A. Bono. Esa., 1 Attorney for Plaintiff Graff Diamonds Ltd. I1 1 Broadway, gfh Floor New York, New York (212) Our File No.: Supreme Court Records OnLine Library - page 8 of 9

9 GRAFF DIAMONDS LIMITED. l luintiffi YAO ON COMPANY, a/k/a YAIJ ON PAWN SHOP LIMITED, GEMOLOGICAL INSTITUTE OF AMERICA (LIS stakeholder), To: *** Attorney(s) for *** SUMMONS AND COMPLAINT Wade CLurk MULCU~JJ Attorneys for Plaintiff I I I Broadway, 9 FLOW New York, New York I0006 (212) Our File No.: Service of a copy of the within * * * Dated: *** is hereby admitted... Attorney($ for * * * PLEASE TAKE NOTICE n that the within is a (certified) true copy of a * * * entered in the office of the clerk of the wthin named Court on * * * NOTICE OF ENTRY that an Order of which the within is a true copy will be presented for settlement to the Hon. *** one of the judges of the within named Court, at ***, on ***, at ***. NOTICE OF SETTLEMENT Dated: *** Supreme Court Records OnLine Library - page 9 of 9