FILED: NEW YORK COUNTY CLERK 09/13/2016 07:43 PM INDEX NO. 651052/2015 NYSCEF DOC. NO. 47 RECEIVED NYSCEF: 09/13/2016 Exhibit 1
FILED: NEW YORK COUNTY CLERK 03/31/2015 06:03 PM INDEX NO. 651052/2015 NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/31/2015 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK NORMA LOREN, Plaintiff, -v- JOSEPH E. SARACHEK and TRIAX CAPITAL ADVISORS, LLC, Defendants. SUMMONS Index No. Date Index Number Purchased: March 31, 2015 To the Person(s) Named as Defendant(s) above: PLEASE TAKE NOTICE THAT YOU ARE HEREBY SUMMONED to answer the Complaint of the Plaintiff herein and to serve a copy of your answer on the plaintiff at the address indicated below within twenty (20) days after service of this Summons (not counting the day of service itself) where service is made by delivery upon you personally within the state, or within thirty (30) days after completion of service where service is made in any other manner. TAKE NOTICE THAT should you fail to answer, a judgment will be entered against you by default for the relief demanded in the Complaint and any additional interest the Court deems applicable.
VENUE: Plaintiff designates New York County as the place of trial. The basis of this venue is CPLR is 503(a). Dated: March 31, 2015 Ben i. Fi her MORVILLO ABRAMOWITZ GRAND IASON & ANELLO P.C. 565 Fifth A venue New York, New York 10017 (212) 856-9600 (telephone) (212) 856-9494 (facsimile) To Defendants: Joseph Sarachek 620 Fifth Avenue, New York, New York 10020 Triax Capital Advisors, LLC 10 Rockefeller Plaza, Suite 601, New York, New York 10020 2
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK NORMA LOREN, Plaintiff, -v- JOSEPH E. SARACHEK and TRIAX CAPITAL ADVISORS, LLC, Defendants. Index No. COMPLAINT AND DEMAND FOR JURY TRIAL Plaintiff Norma Loren ( Loren ), by her attorneys, Morvillo Abramowitz Grand Iason & Anello P.C., for her Complaint, alleges as follows: OVERVIEW 1. This is an action by Normal Loren against Joseph E. Sarachek ( Sarachek ) and Triax Capital Advisors, LLC ( Triax ) (collectively, Sarachek and Triax are referred to as the Defendants ) for breach of contract arising out of Defendants failure to honor their contractual obligations and repay Ms. Loren funds due and owing to her under a valid and enforceable contract between them. 2. On or about February 3, 2010, Loren loaned $500,000 to Triax (the Loan. ). Repayment of the Loan was personally guaranteed by Sarachek. The terms of the Loan are set forth in a written agreement dated February 3, 2010 ( the Note ). 3. To date, neither Triax nor Sarachek has made any payment of interest or principal on the Loan, despite the fact that such amounts are due and owing and have been repeatedly requested by Ms. Loren and agents acting on her behalf.
4. In this action, Plaintiff seeks to enforce her right to repayment on the Loan, and to hold Triax and Sarachek accountable for their complete disregard for their contractual obligations. PARTIES 5. Plaintiff Norma Loren at all relevant times was and is a resident of the state of Florida. 6. Defendant Joseph E. Sarachek at all relevant times was and is a resident of the State of New York, County of Westchester. 7. Defendant Triax Capital Advisors, LLC is, upon information and belief, a limited liability company organized and existing under the laws of New York, with its principal place of business in New York County. JURISDICTION AND VENUE 8. Personal jurisdiction is proper over Sarachek in New York because he is a New York State resident. 9. Personal jurisdiction is proper over Triax in New York because it is a New York limited liability company. 10. Venue is proper in this Court pursuant to N.Y. C.P.L.R. 503(a). FACTS 11. In July 2009, Ms. Loren was introduced to Sarachek, who was then the Managing Partner of Triax, and held himself out as a successful attorney and businessman with expertise in financial restructuring. Shortly thereafter, in or about late 2009, Sarachek solicited a short-term $500,000 loan from Plaintiff to Triax. 2
12. On or about February 3, 2010, Ms. Loren loaned Triax $500,000. The terms of the Loan are set forth in the Note. 13. Under the terms of the Note, the total loaned amount of $500,000 was divided into two components. Specifically, $400,000 of the Loan constituted a general business loan to Triax that bore interest at 12% per annum. The remaining $100,000 bore interest at 6% per annum, and was to be used to fund Sarachek s capital contribution in a business, Debt Acquisition Group, which had been formed in or about February 2010 by Sarachek and Loren s son. Interest on each portion of the Loan was required to be paid to Loren on a monthly basis, beginning on the first business day of the following month (i.e., March 2010). of the Note. 14. Defendants failed to make a single required interest payment pursuant to the terms 15. The Note provided that the term of the Loan was approximately 9 months from the date of the Note, or November 1, 2010. Defendants have failed to repay the Loan, despite multiple requests from Plaintiff and her agents for full payment. 16. Under the terms of the Note, repayment was personally guaranteed by Sarachek. 17. As of April 2015, a total of $774,500 remains due and owing, comprised of $500,000 in principal and $274,500 in interest. First Cause of Action (Breach of Contract against all Defendants) 18. Plaintiff repeats and realleges each and every allegation contained in paragraphs 1 through 14 of this Complaint as though fully set forth herein. 19. The Loan, as described in the Loan Note, is a valid, binding and enforceable contract between Plaintiff and Defendants. 20. Plaintiff has performed all of her obligations under the parties agreement. 3
21. In breach of the Loan Note, Defendants have failed and refused to make any payment of principal or interest on the Loan. 22. Plaintiff has been damaged, in an amount to be proven at trial, of no less than $774,500. WHEREFORE, Plaintiff Norma Loren demands judgment against Defendants as follows: 1. Awarding damages in favor of Plaintiff in an amount to be determined at trial; 2. Awarding Plaintiff her costs and expenses incurred in connection with this action, including her reasonable attorney's fees; 3. Awarding applicable interest; 4. Awarding Plaintiff such other relief as the Court may deem just and proper. Dated: March 31, 2015 Respectfully submitted, MORVILLO ABRAMOWITZ GRAND IASON & ANELLO P.C. By: -T-~-=~~~~~~~~~~-. en]ami S. Fischer 565 Fifth A venue New York, New York 10017 (212) 856-9600 (telephone) (212) 856':"9494 (facsimile) Attorneys for Plaintiff Norma Loren 4