CAUSE NUMBER 2018-51603 STERLING GREEN COMMUNITY IN THE DISTRICT COURT IMPROVEMENT ASSOCIATION, Plaintiff, vs. 55 th JUDICIAL DISTRICT DOROTHY MALVEAUX Defendant. OF HARRIS COUNTY, TEXAS PLAINTIFF S FIRST AMENDED ORIGNAL PETITION AND REQUEST FOR DISCOVERY AND REQUEST FOR TEMPORARY RESTRAINING ORDER TO THE HONORABLE JUDGE OF SAID COURT: NOW COMES Sterling Green Community Improvement Association, hereinafter called Plaintiff, complaining of and about Dorothy Malveaux, hereinafter called Defendant, and for cause of action shows unto the Court the following: Plaintiff is a home owner s association. INTRODUCTION Defendant is a person purporting to be an officer of the home owner s association with authority to act on behalf of the home owner s association as a board member, when she does not possess such authority. She presented minutes of a meeting or a resolution wherein she represented to Wells Fargo Bank that she was elected as an officer (secretary or treasury) and was vested with the authority to make financial decisions on behalf of the home owners association. She does not have the authority to do this. funds. Through fraud, Defendant has stolen money from Plaintiff. Plaintiff seeks the return of the funds, and an order ceasing the wrongful transfer of these Page 1
PARTIES AND SERVICE 1. Plaintiff, Sterling Green Community Improvement Association, is a non-profit domestic corporation located at 14807 S. Silver Green Dr., Houston, Texas 77015 in Harris County, Texas. 2. Defendant, Dorothy Malveaux, is an individual who resides at 1515 Carbonear Drive, Channelview, TX 77530. JURISDICTION AND VENUE 3. The subject matter in controversy is within the jurisdictional limits of this court. 4. Venue in Harris County is proper in this cause under Section 15.002(a)(1) of the Texas Civil Practice and Remedies Code because all or a substantial part of the events or omissions giving rise to this lawsuit occurred in this county. FACTS 5. I, Thomas Olson, am the elected President of Sterling Green Community Improvement Association, located at 14807 S. Silver Green Dr., Houston, Texas 77015. Defendant Dorothy Malveaux has stolen $650,000.00 from Sterling Green Community Improvement Association. This money was taken out of the bank account for Sterling Green Community Improvement Association without the authorization of the board of directors. This money was taken from the association s account at Wells Fargo Bank. Wells Fargo is aware of the theft, and facilitated the taking of the money. 6. Between June 25, 2018 and July 27, 2018, Dorothy Malveaux and Linda Bass have repeatedly attempted to violate multiple parts of Section 209.0051 of the Texas Property Code to conduct business of Sterling Green Community Improvement Association without the transparency guaranteed to the Members therein. Page 2
7. Their attempts to conduct Association Business have been without proper notice or publication of an agenda to the members of the community in contravention of Section 209.0051(e) the Texas Property Code, the Bylaws and the Articles of Incorporation of the Association. 8. Currently, Dorothy Malveaux claims to hold the office of Secretary whereas no vote has been cast to allow for her to hold that office or carry out those responsibilities as prescribed within the Association Bylaws. Additionally, she has attempted to hold board votes on the appointment of a replacement Board Member without a published Agenda or in compliance with Section 209.0051(h)(13) which guarantees the appointment of a replacement Board Member to be conducted publicly or Section 209.0051(h)(15) which guarantees the election of Board Officers to be conducted publicly with transparency in front of the Membership of the Association. 9. In an attempt to gain control of the Association, on July 27th, 2018, Dorothy Malveaux and at least one other party entered a branch of Wells Fargo Bank with the intent and requisite documents to commit Bank Fraud under Title 18 U.S. Code Chapter 1344. Dorothy Malveaux presented a Corporate Resolution or Meeting Minutes to an officer of Wells Fargo Bank, with the claim to be the properly elected or appointed Officer of Sterling Green Community Improvement Association with the authority to conduct financial business on behalf of the Association. Dorothy Malveaux then created new accounts at Wells Fargo Bank. Upon the accounts' creation, Dorothy Malveaux then violated Title 18 U.S. Code Chapter 31 Section 641 (Embezzlement and Theft Public money, property or records) where she transfered in excess of $650,000.00 in funds to the new accounts and closed the existing accounts of the Association. Page 3
On August 1st, 2018. 10. George Abercrombie, Business Relationship Manager for Wells Fargo, disclosed to Thomas Olson, the elected President of Sterling Green Community Improvement Association of the actions taken by Dorothy Malveaux and the second party to assume control of Association's financial assets. STERLING GREEN COMMUNITY IMPROVEMENT ASSOCIATION S CLAIM FOR CONVERSION to Plaintiff. 11. Defendant does not have the authority to manage and/or take the money belonging 12. Defendant produced false documents and represent them to Wells Fargo Bank in order to obtain funds held in the name of Plaintiff and took them for her own benefit. 13. Defendant refuses to tell Plaintiff what she has done with the funds. 14. Plaintiff must pay vendors with these funds, and those funds are unavailable for Plaintiff to use. STERLING GREEN COMMUNITY IMPROVEMENT ASSOCIATION S CLAIM FOR FRAUD AND UNJUST ENRICHMENT AGAINST DEFENDANT DOROTHY MALVEAUX 15. Plaintiff alleges that Defendant, Dorothy Malveaux has improperly and wrongfully taken funds belonging to Plaintiff by using falsified documents that appeared generated by Plaintiff. 16. Plaintiff will show that Defendant has received these funds and has wrongfully denied them access to the funds from their business. 17. Plaintiff will show that Defendant breached the duty of care she owed to Plaintiff as a member of the board. Defendant was unjustly enriched in the following particulars: a. Improperly taking funds that do not belong to her and using those funds in a manner not intended by Plaintiff upon the collection of those funds. Page 4
18. Each of the above acts, omissions, and practices taken together or singularly, constitute a proximate cause of Plaintiff s damages described herein. PLAINTIFF S CLAIMS FOR MONEY HAD AND RECEIVED 19. Defendant, Dorothy Malveaux, holds money that, in equity and good conscience, belongs to Plaintiff. Defendant collected assessments for property owners by Plaintiff. That money is in the sole custody of Defendant. Defendant refuses to make available to Plaintiff any portion of those funds, although Plaintiff is entitled to these funds. PLAINTIFF S CLAIM FOR EXEMPLARY DAMAGES 20. Pursuant to 41.003 of the Texas Civil Practices and Remedies Code, Plaintiff seeks recovery of exemplary damages against Defendant. Defendants engaged in conduct that was willful, grossly negligent, and/or malicious. REQUEST FOR EX-PARTE TEMPORARY RESTRAINING ORDER AND REQUEST FOR INJUNCTIONS 21. Plaintiff respectfully requests the Court after the posting of a minimum bond issue and ex-parte temporary restraining orders regarding the funds taken by Defendant. Plaintiff requests that the clerk of this Court issue a temporary restraining order restraining Defendant, DOROTHY MALVEAUX, and any attorney and/or agent of Defendant from a distributing the funds she has taken other than to return those funds immediately to Plaintiff, and Defendant be immediately restrained, from: 01. Keeping, distributing, transferring any funds held in any account at any financial institution that were taken from or by Plaintiff, Sterling Green Community Improvement Association. 02. Defendant shall immediately turn over to the custody of Plaintiff, and the elected President of Plaintiff, any and all financial documents related to these funds, along with check books, deposit and withdrawal slips, and account details. Defendant shall not maintain custody of these documents, but shall turn them over to the elected President, Thomas Olson, of Plaintiff. Page 5
Plaintiff respectfully requests the Temporary Restraining Order be made into an injunction for the benefit of Plaintiff to protect Plaintiff from the future wrongful harm of Defendant. REQUESTS FOR DISCLOSURE 22. Pursuant to Rule 194 of the Texas Rules of Civil Procedure, you are requested to disclose within 50 days of service of this request, the information or material described in Rule 194.2 of the Texas Rules of Civil Procedure. REQUESTS FOR PRODUCTION 23. Pursuant to Rule 196.1 of the Texas Rules of Civil Procedure, you are requested to produce within 50 days of service of this request, the documents or material described below. Plaintiff requests the Defendant produce copies of all closing documents upon the purchase or sale of real and/or tangible property AND rental agreements with tenants for: 1. Copies of all documents generated since January 1, 2018 that directly affect funds in possession of Defendant that are held from or on behalf of Defendant and/or Plaintiff. DAMAGES 24. Plaintiff sustained the following damages as a result of the actions and/or omissions of Defendant described hereinabove: a. All reasonable and necessary attorney's fees incurred by or on behalf of Plaintiff; b. All reasonable and necessary costs incurred in pursuit of this suit; c. All funds collected and wrongfully held by Defendant; d. Expert fees as the Court deems appropriate; e. Inconvenience; f. damage to property; g. Exemplary and Punitive Damages; h. Interest. Page 6
T.R.C.P. 47 Plaintiff seeks monetary relief in an amount greater than $20,000.00, but less than $1,000,000.00. Plaintiff seeks judgment from the Court for all relief both at law and in equity to which he is entitled. RULE 193.7 NOTICE Plaintiff hereby gives notice to Defendants that any and all documents produced may be used against Defendant at any pretrial proceeding and/or trial of this matter without the necessity of authenticating the documents. PRAYER WHEREFORE, PREMISES CONSIDERED, Plaintiff, Sterling Green Community Improvement Association, respectfully prays that the Defendant, Dorothy Malveaux, be cited to appear and answer herein, and that upon a final hearing of the cause, judgment be entered for the Plaintiff against Defendant, jointly and severally, for damages in an amount within the jurisdictional limits of the Court; together with interest as allowed by law; costs of court; and such other and further relief to which the Plaintiff may be entitled at law or in equity. Respectfully submitted, LAW OFFICE OF NIXON & ASSOCIATES, P.C. By:/s/Thomas P. Nixon Thomas P. Nixon Attorney-in-Charge Texas Bar No. 24048692 5444 Westheimer, Suite 125 Houston, Texas 77056 Tel. (713) 893-4439 Fax. (888) 591-6924 nxnlaw@gmail.com tom@tnixonlaw.com Attorney for Plaintiff Sterling Green Community Improvement Association Page 7