UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Transcription

1 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 1 of 52 Page ID #: JOHN SHAEFFER, SBN FOX ROTHSCHILD LLP 1800 Century Park East, Suite 300 Los Angeles, CA Telephone: Facsimile: jshaeffer@foxrothschild.com Attorney for Defendants WorldVentures Foundation, WorldVentures Holdings, LLC and Wayne Nugent UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION MELODY YIRU, aka SHI YIRU, an individual, and all those similarly situated, v. Plaintiff, WORLDVENTURES HOLDINGS, LLC, a Nevada Limited Liability Company; WORLD VENTURES, a Nevada Limited Liability Company; WORLDVENTURES FOUNDATION, a Texas corporation; WORLDVENTURES MARKETING LLC, a Nevada Limited Liability Company; MICHAEL AZCUE, an individual; WAYNE NUGENT, an individual; and DANIEL STAMMEN, an individual; and DOES 1-100; Defendants. CASE NO.: NOTICE OF REMOVAL OF DEFENDANT WORLDVENTURES FOUNDATION, WORLD VENTURES HOLDING, LLC AND WAYNE NUGENT NOTICE OF REMOVAL

2 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 2 of 52 Page ID #: TO THE CLERK OF THE ABOVE-ENTITLED COURT, ALL PARTIES AND THEIR ATTORNEYS OF RECORD: PLEASE TAKE NOTICE THAT, pursuant to 28 U.S.C and 1446, Defendants WorldVentures Foundation, WorldVentures Holdings, LLC and Wayne Nugent ( Served Defendants, hereby remove to the United States District Court for the Central District of California, Western Division, the civil action styled as MELODY YIRU, aka SHI YIRU, an individual, and all those similarly situated, WORLDVENTURES HOLDINGS, LLC, a Nevada Limited Liability Company; WORLD VENTURES, a Nevada Limited Liability Company; WORLDVENTURES FOUNDATION, a Texas corporation; WORLDVENTURES MARKETING LLC, a Nevada Limited Liability Company; MICHAEL AZCUE, an individual; WAYNE NUGENT, an individual; and DANIEL STAMMEN, an individual; and DOES Case No. BC659422, which was filed in the Superior Court of the State of California, County of Los Angeles, Central District (the State Court Action. This civil action is removable pursuant to pursuant to 28 U.S.C and 1441(a and pursuant to 28 U.S.C and 1441(b. In accordance with the requirement of 28 U.S.C. 1446(a, a short and plain statement of the ground for removal is set forth below. I. INTRODUCTION 1. On or about May 1, 2017, plaintiff Melody Yiru, a.k.a. Shi Yiru ( Plaintiff, filed her Complaint ( Complaint in the Superior Court of the State of California, County of Los Angeles, in the State Court Action. 2. On or about May 11, 2017, Defendant WorldVentures Foundation (the Foundation was served with a copy of the Summons and Complaint. 3. On or about May 26, 2017, Defendants WorldVentures Holdings, LLC ( WorldVentures and Wayne Nugent were served with copies of the Summons and Complaint. 4. Undersigned counsel is not aware of service of the Summons and Complaint upon any other defendant named in the State Court Action. NOTICE OF REMOVAL 1

3 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 3 of 52 Page ID #: Exhibit 1 hereto constitutes a copy of all process, pleadings and orders served upon the Served Defendants in the State Court Action. 28 U.S.C. 1446(a. 6. Exhibit 2 hereto is a copy of the court s docket in the State Court Action. 7. Plaintiff s Complaint alleges that the WorldVentures is a membershipbased travel services business and that the Foundation and Nugent participate in this business. Plaintiff alleges that WorldVentures is an illegal pyramid scheme. 8. Plaintiff alleges that from 2011 to the present, she and as many as 250,000 other members of her purported class were misled about the financial structure and likelihood of financial gain from their participation (through initial and monthly membership fees in WorldVentures business. 9. Plaintiff alleges that, despite what appeared to be truthful and encouraging Annual Disclosure Statements, the only way to generate income as a Sales Representative was not through the sales of travel-related services, but through the recruitment of additional Sales Representatives. 10. Plaintiff alleges that nearly all Sales Representatives lost money through their involvement with WorldVentures. 11. Based on these allegations, Plaintiff brings three state law claims arising under section of the California Civil Code (Endless Chain Scheme, section 17200, et seq., of the California Business & Professions Code (Unfair and Deceptive Practices, and section 17500, et seq., of the California Business & Professions Code (False Advertising as well as three federal claims arising under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C None of the Served Defendants has filed an answer or other responsive pleading in the State Court Action. 13. As explained below, this Court has subject matter jurisdiction over this matter based on both federal question jurisdiction and diversity jurisdiction. NOTICE OF REMOVAL 2

4 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 4 of 52 Page ID #: II. THE COURT HAS JURISDICTION OVER THE CAUSES OF ACTION ARISING UNDER FEDERAL LAW. 14. Removal of the State Court Action to this Court is proper under 28 U.S.C. 1441(a because the State Court Action is a civil action over which this Court has original jurisdiction founded upon a claim or right arising under the laws of the United States. Here, the Court has original jurisdiction over Plaintiffs claims under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C (Counts IV-VI. 15. Plaintiff s Complaint contains three causes of action arising under the Racketeer Influenced and Corrupt Organizations Act, ( RICO 18 U.S.C , over which this Court has original jurisdiction pursuant to 28 U.S.C Count IV of Plaintiff s Complaint alleges violations of 18 U.S.C. 1962(a arising out of a purported conspiracy which involved the investment of ill-gotten funds in an allegedly fraudulent enterprise. Count V of Plaintiff s Complaint alleges that the defendants named in the State Court Action conducted their purportedly fraudulent affairs as an enterprise through a pattern of racketeering in violation of 18 U.S.C. 1962(c. Count VI of Plaintiff s Complaint alleges a section 1962(d conspiracy by and between the defendants named in the State Court Action to violate sections 1962(a and (c. 16. Regardless of whether a RICO claim is predicated on a violation of state or federal law, this Court has original jurisdiction over such a claim. See Jean Tech., Inc. v. NYDJ Apparel, LLC, 2015 WL , at *2 (C.D. Cal. Aug. 18, 2015 (citing Perryman v. Litton Loan Servicing, LP, 2014 WL , at *6 (N.D. Cal. Oct. 1, 2014 ( the Court has subject-matter jurisdiction over Plaintiff s RICO claims pursuant to 28 U.S.C and 18 U.S.C Accordingly, this Court has original jurisdiction over Plaintiff s RICO claims. NOTICE OF REMOVAL 3

5 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 5 of 52 Page ID #: This Court also has supplemental jurisdiction over Plaintiff s remaining state law claims. See 28 U.S.C. 1367(a ( [I]n any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy. 19. Therefore, removal of the entire State Court Action is warranted based on the Court s original jurisdiction over Plaintiff s RICO claims. III. THE COURT HAS JURISDICTION BASED ON THE DIVERSITY OF THE NAMED PARTIES. 20. Removal of this action is also proper under 28 U.S.C. 1441(b because Plaintiff s purported class action claims are subject to the Class Action Fairness Act ( CAFA, 28 U.S.C. 1332(d, 1453, and , and because the matter satisfies the diversity criteria of 28 U.S.C As this Court has held, CAFA gives district courts original jurisdiction to hear class actions in which the matter in controversy exceeds the sum or value of $5,000,000, exclusive of interest and costs, and in which [, inter alia,] any member of a class of plaintiffs is a citizen of a State different from any defendant. Leon v. Gordon Trucking, Inc., 76 F.Supp.3d 1055 (C.D. Cal (citing 28 U.S.C. 1332(d(2; Luther v. Countrywide Home Loans Servicing LP, 533 F.3d 1031, (9th Cir Further, for CAFA to apply, the aggregate number of members of all proposed classes must exceed 100 individuals. See id. 23. Significantly, under CAFA, complete diversity is not required for the Court to have original jurisdiction or for the case to be removable to federal court. See Luther, 533 F.3d at (citing 28 U.S.C. 1453(b. 24. Here, Plaintiff s purported class action claims satisfy all of the prerequisites for the application of CAFA and, in turn, to confer original jurisdiction over this matter to this Court. NOTICE OF REMOVAL 4

6 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 6 of 52 Page ID #: The requirement that the class exceed 100 members is satisfied because Plaintiff alleges that the members of the Class are greater than 250,000, nationwide. (Complaint Plaintiff also alleges damages well in excess of $5,000, Plaintiff alleges that 99.7% of WorldVentures enrollees average a loss of -$ per year. (Complaint 48(g. 28. Based on Plaintiff s allegation of a 250,000 member class and an alleged loss of $1, per member, the total loss per year alleged is $264,442, As Plaintiff alleges losses occurring from 2011 to present, Plaintiff s total alleged damages on behalf of the class are in excess of $1.5 billion. 30. Finally, CAFA s augmented diversity requirement is satisfied because there is diversity among the parties. 31. Plaintiff alleges that she is an individual residing and doing business in the State of California. (Complaint Plaintiff does not allege that any of the defendants named in the State Court Action are residents of or incorporated under the laws of the State of California. (Complaint The Foundation is alleged to be a Texas corporation. (Complaint WorldVentures is alleged to be a Nevada limited liability company. (Complaint Nugent is alleged to be a resident of the State of Texas. (Complaint Further, each of the additional individual defendants named in the State Court Action is alleged to be a resident of the State of Texas. (Complaint In addition, the other business entities named in State Court Action, WorldVentures Marketing, LLC, and WorldVentures, are all alleged to be entities formed under the law of the State of Nevada. (Complaint As CAFA only requires diversity of one plaintiff and one defendant, the complete diversity of the parties is more than adequate to satisfy this prerequisite. NOTICE OF REMOVAL 5

7 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 7 of 52 Page ID #: Accordingly, removal of the State Court Action is warranted based on the application of the Class Action Fairness Act. 40. In addition, the complete diversity of the parties as pled and the amount in controversy in excess of $75,000 also satisfies the requirement for removal pursuant to 28 U.S.C and 28 U.S.C. 1441(b. IV. THE REMAINING REQUIREMENTS FOR REMOVAL HAVE BEEN SATISFIED 41. All procedural requirements for removal have been satisfied. 42. This Notice of Removal is timely as required by 28 U.S.C. 1446(b, because it is not filed more than one year following the commencement of the action and within thirty (30 days of the service of the Summons and Complaint upon WorldVentures Foundation, the first defendant to be served in this case. See 28 U.S.C. 1446(b(2(B ( Each defendant shall have 30 days after receipt by or service on that defendant of the initial pleadings or summons described in paragraph (1 to file the notice of removal. 43. Removal to this Court and this division is proper, insofar as the State Court Action was pending in Superior Court for the State of California, County of Los Angeles; and the United States District Court for the Central District of California, Western Division, embraces the location of the state court in which the State Court Action was filed. See 28 U.S.C. 1441(a and 1446(a. 44. This notice of removal is accompanied by true and correct copies of all pleadings, process and orders on file in the Superior Court of the State of California, County of Los Angeles. See 28 U.S.C. 1446(a. 45. Pursuant to 28 U.S.C. 1446(d, concurrently with the filing of this Notice of Removal, Served Defendants are serving written notice of the filing of this Notice of Removal, with a copy of this Notice of Removal attached, upon Plaintiff s counsel. Additionally, Served Defendants are filing a copy of this Notice of Removal (including the materials filed in support hereof with the Clerk of the Superior Court NOTICE OF REMOVAL 6

8 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 8 of 52 Page ID #: for the State of California, County of Los Angeles (the court from which the State Court Action was removed. See 28 U.S.C. 1446(d. 46. All defendants served with the Summons and Complaint have joined this removal and have consented to removal. See 28 U.S.C. 1446(b(2(A ( all defendants who have been properly joined and served must join in or consent to the removal of the action. The Served Defendants are not required to obtain the consent of parties who have not been properly served. See Destino v. Reiswig, 630 F.3d 952, 955 (9th Cir Served Defendants have not previously sought similar relief with respect to this matter. 48. The allegations in this Notice of Removal are true and correct. 49. Accordingly, this civil action is properly removable to the United States District Court for the Central District of California, Western Division. WHEREFORE, the Served Defendants respectfully request that the State Court Action be removed to this Court and placed on the docket of this Court for further proceedings as though originally instituted in this Court. If any question arises as to the propriety of the removal of this action, the Served Defendants respectfully request the opportunity to present a brief and oral argument in support of their position that this civil action is removable. Dated: June 12, 2017 By: FOX ROTHSCHILD LLP _/s/john Shaeffer John Shaeffer, Esq. Attorney for Defendants WorldVentures Foundation, WorldVentures Holdings, LLC and Wayne Nugent NOTICE OF REMOVAL 7

9 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 9 of 52 Page ID #:9 EXHIBIT 1

10 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 10 of 52 Page ID #:10

11 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 11 of 52 Page ID #:11

12 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 12 of 52 Page ID #:12

13 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 13 of 52 Page ID #:13

14 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 14 of 52 Page ID #:14

15 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 15 of 52 Page ID #:15

16 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 16 of 52 Page ID #:16

17 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 17 of 52 Page ID #:17

18 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 18 of 52 Page ID #:18

19 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 19 of 52 Page ID #:19

20 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 20 of 52 Page ID #:20

21 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 21 of 52 Page ID #:21

22 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 22 of 52 Page ID #:22

23 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 23 of 52 Page ID #:23

24 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 24 of 52 Page ID #:24

25 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 25 of 52 Page ID #:25

26 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 26 of 52 Page ID #:26

27 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 27 of 52 Page ID #:27

28 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 28 of 52 Page ID #:28

29 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 29 of 52 Page ID #:29

30 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 30 of 52 Page ID #:30

31 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 31 of 52 Page ID #:31

32 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 32 of 52 Page ID #:32

33 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 33 of 52 Page ID #:33

34 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 34 of 52 Page ID #:34

35 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 35 of 52 Page ID #:35

36 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 36 of 52 Page ID #:36

37 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 37 of 52 Page ID #:37

38 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 38 of 52 Page ID #:38

39 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 39 of 52 Page ID #:39

40 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 40 of 52 Page ID #:40

41 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 41 of 52 Page ID #:41

42 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 42 of 52 Page ID #:42

43 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 43 of 52 Page ID #:43

44 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 44 of 52 Page ID #:44

45 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 45 of 52 Page ID #:45

46 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 46 of 52 Page ID #:46

47 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 47 of 52 Page ID #:47

48 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 48 of 52 Page ID #:48

49 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 49 of 52 Page ID #:49

50 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 50 of 52 Page ID #:50 EXHIBIT 2

51 6/12/2017 LASC - Case Summary Page 1 of 2 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 51 of 52 Page ID #:51 Case Summary Please make a note of the Case Number. Click here to access document images for this case. If this link fails, you may go to the Case Document Images site and search using the case number displayed on this page. Case Number: BC MELODY YIRU ET AL VS WORLDVENTURES HOLDINGS LLC ET AL Filing Date: 05/01/2017 Case Type: Racketeering Case (General Jurisdiction Status: Pending Future Hearings 07/14/2017 at 10:00 am in Department 310 at 600 South Commonwealth Ave., Los Angeles, CA Initial Status Conference(file Joint ISC Report by 6/30/17 Documents Filed Proceeding Information Parties AZCUE MICHAEL - Defendant/Respondent DOES Defendant/Respondent LINDEMANN LAW FIRM APC - Attorney for Plaintiff/Petitioner NUGENT WAYNE - Defendant/Respondent STAMMEN DANIEL - Defendant/Respondent WORLD VENTURES - Defendant/Respondent WORLDVENTURES FOUNDATION - Defendant/Respondent WORLDVENTURES HOLDINGS LLC - Defendant/Respondent WORLDVENTURES MARKETING LLC - Defendant/Respondent YIRU MELODY - Plaintiff/Petitioner YIRU SHI - Plaintiff/Petitioner's DBA Case Information Party Information Proceeding Information Documents Filed (Filing dates listed in descending order 05/23/2017 Notice (OF COURT ORDER RE NEWLY FILED CLASS ACTION AND NT OF ISC Filed by Attorney for Plaintiff/Petitioner 05/17/2017 Order (Initial Status Conference Order Filed by Court 05/03/2017 Summons Filed Filed by Attorney for Plaintiff/Petitioner 05/01/2017 Complaint

52 6/12/2017 LASC - Case Summary Page 2 of 2 Case 2:17-cv PA-KS Document 1 Filed 06/12/17 Page 52 of 52 Page ID #:52 Case Information Party Information Documents Filed Proceedings Held (Proceeding dates listed in descending order 05/17/2017 in Department 310, Kenneth R. Freeman, Presiding Order-Complex Determination - Case Determined to be Complex Case Information Party Information Documents Filed Proceeding Information

53 JS 44 (Rev. 06/17 CIVIL COVER SHEET The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM. I. (a PLAINTIFFS DEFENDANTS Melody Yiru, aka Shi Yiru, an individual, and all those similarly situated Worldventures Holdings, LLC, et al. (b County of Residence of First Listed Plaintiff Los Angeles County of Residence of First Listed Defendant Collin County, TX (EXCEPT IN U.S. PLAINTIFF CASES (IN U.S. PLAINTIFF CASES ONLY NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. (c Attorneys (Firm Name, Address, and Telephone Number Attorneys (If Known Blake J. Lindemann (SBN and Daren M. Schlecter (SBN LINDEMANN LAW FIRM, APC Law Office of Daren M. Schlecter, APC 433 N. Camden Drive, 4 th Floor 1925 Century Park East, Ste. 830 Beverly Hills, CA Los Angeles, CA Tel: Tel: II. BASIS OF JURISDICTION (Place an X in One Box Only 152 Recovery of Defaulted Student Loans (Excludes Veterans John Shaeffer (SBN FOX ROTHSCHILD LLP 1800 Century Park East, Ste. 300 Los Angeles, CA / Tel: III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an X in One Box for Plaintiff (For Diversity Cases Only and One Box for Defendant 1 U.S. Government 3 Federal Question PTF DEF PTF DEF Plaintiff (U.S. Government Not a Party Citizen of This State 1 1 Incorporated or Principal Place 4 4 of Business In This State 2 U.S. Government 4 Diversity Citizen of Another State Defendant (Indicate Citizenship of Parties in Item III 2 2 Incorporated and Principal Place 5 5 Citizen or Subject of a of Business In Another State Foreign Country 3 3 Foreign Nation 6 6 IV. NATURE OF SUIT (Place an X in One Box Only Click here for: Nature of Suit Code Descriptions. CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES 110 Insurance PERSONAL INJURY PERSONAL INJURY 625 Drug Related Seizure 422 Appeal 28 USC False Claims Act 120 Marine 310 Airplane 365 Personal Injury - of Property 21 USC Withdrawal 376 Qui Tam (31 USC 130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC (a Liability 367 Health Care/ 400 State Reapportionment 140 Negotiable Instrument Pharmaceutical PROPERTY RIGHTS 320 Assault, Libel & 150 Recovery of Overpayment Personal Injury 410 Antitrust Slander 820 Copyrights & Enforcement of Judgment 430 Banks and Banking 330 Federal Employers 830 Patent 151 Medicare Act Liability 450 Commerce 835 Patent - Abbreviated 340 Marine New Drug Application 460 Deportation Product Liability 368 Asbestos Personal Injury Product Liability PERSONAL PROPERTY 345 Marine Product 840 Trademark Liability 153 Recovery of Overpayment 370 Other Fraud LABOR SOCIAL SECURITY 350 Motor Vehicle of Veteran s Benefits 371 Truth in Lending 710 Fair Labor Standards 861 HIA (1395ff 160 Stockholders Suits 355 Motor Vehicle Act Product Liability 380 Other Personal 862 Black Lung ( Other Contract Property Damage 720 Labor/Management 360 Other Personal Relations 863 DIWC/DIWW (405(g 195 Contract Product Liability Injury 385 Property Damage 740 Railway Labor Act 864 SSID Title XVI 196 Franchise Product Liability 362 Personal Injury Family and Medical 865 RSI (405(g Medical Malpractice Leave Act REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS FEDERAL TAX SUITS 790 Other Labor Litigation Habeas Corpus: 210 Land Condemnation 440 Other Civil Rights 870 Taxes (U.S. Plaintiff 463 Alien Detainee 791 Employee Retirement or Defendant 220 Foreclosure 441 Voting Income Security Act 510 Motions to Vacate 230 Rent Lease & Ejectment 442 Employment IMMIGRATION 871 IRS Third Party Sentence 26 USC Torts to Land 443 Housing/ 462 Naturalization Application 530 General Accommodations 245 Tort Product Liability 465 Other Immigration 535 Death Penalty 445 Amer. w/disabilities- Actions 290 All Other Real Property Other: Employment 446 Amer. w/disabilities- Other 448 Education V. ORIGIN (Place an X in One Box Only 1 Original 2 Removed from Proceeding State Court VI. CAUSE OF ACTION VII. REQUESTED IN COMPLAINT: VIII. RELATED CASE(S IF ANY DATE June 12, 2017 FOR OFFICE USE ONLY Case 2:17-cv PA-KS Document 1-1 Filed 06/12/17 Page 1 of 2 Page ID #: Mandamus & Other 550 Civil Rights 555 Prison Condition 560 Civil Detainee - Conditions of Confinement 3 Remanded from Appellate Court 4 Reinstated or Reopened 5 Transferred from Another District 470 Racketeer Influenced and Corrupt Organizations 480 Consumer Credit 490 Cable/Sat TV 850 Securities/Commodities/ Exchange 890 Other Statutory Actions 891 Agricultural Acts 893 Environmental Matters 895 Freedom of Information Act 896 Arbitration 899 Administrative Procedure Act/Review or Appeal of Agency Decision 950 Constitutionality of State Statutes RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE American LegalNet, Inc. (specify Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity: 18 U.S.C Brief description of cause: RICO CHECK IF THIS IS A CLASS ACTION UNDER RULE 23, F.R.Cv.P. (See instructions: JUDGE DEMAND $ 1,500,000,000 SIGNATURE OF ATTORNEY OF RECORD /s/john Shaeffer 6 Multidistrict Litigation- Transfer 8 Multidistrict Litigation - Direct File CHECK YES only if demanded in complaint: JURY DEMAND: Yes No DOCKET NUMBER

54 JS 44 Reverse (Rev. 06/17 Case 2:17-cv PA-KS Document 1-1 Filed 06/12/17 Page 2 of 2 Page ID #:54 INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44 Authority For Civil Cover Sheet The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows: I.(a (b (c II. III. IV. Plaintiffs-Defendants. Enter names (last, first, middle initial of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title. County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved. Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting in this section "(see attachment". Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a, F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below. United States plaintiff. (1 Jurisdiction based on 28 U.S.C and Suits by agencies and officers of the United States are included here. United States defendant. (2 When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box. Federal question. (3 This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be marked. Diversity of citizenship. (4 This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity cases. Residence (citizenship of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section for each principal party. Nature of Suit. Place an "X" in the appropriate box. If there are multiple nature of suit codes associated with the case, pick the nature of suit code that is most applicable. Click here for: Nature of Suit Code Descriptions. V. Origin. Place an "X" in one of the seven boxes. Original Proceedings. (1 Cases which originate in the United States district courts. Removed from State Court. (2 Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section When the petition for removal is granted, check this box. Remanded from Appellate Court. (3 Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date. Reinstated or Reopened. (4 Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date. Transferred from Another District. (5 For cases transferred under Title 28 U.S.C. Section 1404(a. Do not use this for within district transfers or multidistrict litigation transfers. Multidistrict Litigation Transfer. (6 Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section Multidistrict Litigation Direct File. (8 Check this box when a multidistrict case is filed in the same district as the Master MDL docket. PLEASE NOTE THAT THERE IS NOT AN ORIGIN CODE 7. Origin Code 7 was used for historical records and is no longer relevant due to changes in statue. VI. VII. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction. Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded. VIII. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket numbers and the corresponding judge names for such cases. Date and Attorney Signature. Date and sign the civil cover sheet. American LegalNet, Inc.

55 Case 2:17-cv PA-KS Document 1-2 Filed 06/12/17 Page 1 of 2 Page ID #: JOHN SHAEFFER, SBN FOX ROTHSCHILD LLP 1800 Century Park East, Suite 300 Los Angeles, CA Telephone: Facsimile: jshaeffer@foxrothschild.com Attorney for Defendants WorldVentures Foundation, WorldVentures Holdings, LLC and Wayne Nugent UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION MELODY YIRU, aka SHI YIRU, an individual, and all those similarly situated, v. Plaintiff, WORLDVENTURES HOLDINGS, LLC, a Nevada Limited Liability Company; WORLD VENTURES, a Nevada Limited Liability Company; WORLDVENTURES FOUNDATION, a Texas corporation; WORLDVENTURES MARKETING LLC, a Nevada Limited Liability Company; MICHAEL AZCUE, an individual; WAYNE NUGENT, an individual; and DANIEL STAMMEN, an individual; and DOES 1-100; Defendants. CASE NO.: CERTIFICATE OF SERVICE CERTIFICATE OF SERVICE

56 Case 2:17-cv PA-KS Document 1-2 Filed 06/12/17 Page 2 of 2 Page ID #: CERTIFICATE OF SERVICE STATE OF CALIFORNIA, COUNTY OF LOS ANGELES At the time of service, I was over 18 years of age and not a party to this action. I am employed in the County of Los Angeles, State of California. My business address is 1800 Century Park East, Suite 300, Los Angeles, California On June 12, 2017, I served the following document(s described as: 1. NOTICE OF REMOVAL OF DEFENDANTS WORLDVENTURES FOUNDATION, WORLD VENUTRES HOLDINGS, LLC AND WAYNE NUGENT; 2. CIVIL COVER SHEET; AND 3. CERTIFICATION AND NOTICE OF INTERESTED PARTIES on the interested parties in this action as follows: Blake J. Lindemann, Esq. LINDEMANN LAW FIRM, APC 433 N. Camden Drive, 4 th Floor Beverly Hills, CA Tel.: Fax: blake@lawbl.com Darren M. Schlecter, Esq. Law Office of Daren M. Schlecter, APC 1925 Century Park East, Ste. 830 Los Angeles, CA Tel: Counsel for Plaintiff Melody Yiru and Those Similarly Situated [ ] BY PERSONAL SERVICE: I caused said document to be personally delivered the document(s to the person at the addresses listed above by leaving the documents in an envelope or package clearly labeled to identify the attorney being served with a receptionist or an individual in charge of the office. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on June 12, 2017, at Los Angeles, California. CERTIFICATE OF SERVICE 1