Case 3:12-cv-01283-B Document 1 Filed 04/25/12 Page 1 of 5 PageID 1 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION ROBERT E. OGLE, RECEIVER, PLAINTIFF, VS. CIVIL ACTION NO. 3:12-cv-1283 LESLIE BOWLIN BENNETT and PR SQUARED, LLC, DEFENDANTS COMPLAINT Plaintiff Robert E. Ogle, Receiver complains of and against Defendants Leslie Bowlin Bennett and PR Squared, LLC, and respectfully states: THE PARTIES 1. Plaintiff Robert E. Ogle, Receiver (the Receiver ) is the court-appointed receiver for the assets and businesses of Arthur Piner Grider, III ( Grider ), including Asgard Resources of Texas, LLC, Blackwell Technical Services, Inc., Talent Force Services, LLC and Leonard Investments, Inc. This Court appointed the Receiver in United States of America v. Arthur Piner Grider, III, et al, Civil Action No. 3:10-CV-0582-D (the Receivership Action ). The Receiver was appointed pursuant to the Agreed Order Granting United States Motion to Appoint a Receiver, signed on April 11, 2011 (docket no. 138 in the Receivership Action). 2. Defendant Leslie Bowlin Bennett is an individual who resides in Houston, Harris County, Texas. Defendant Bennett may be served with Summons at her regular place of business, PR Squared, LLC, 3334 Richmond Ave., Houston, Texas 77098, or wherever she may be found.
Case 3:12-cv-01283-B Document 1 Filed 04/25/12 Page 2 of 5 PageID 2 3. Defendant PR Squared, LLC ( PR Squared ) is a Texas limited liability company with its principal place of business in Houston, Harris County, Texas. Defendant PR Squared may be served with Summons on its registered agent, Leslie Bowlin Bennett, at her regular place of business, PR Squared, LLC, 3334 Richmond Ave., Houston, Texas 77098, or wherever she may be found. JURISDICTION AND VENUE 4. The Court appointed the Receiver to recover assets and prosecute claims for the benefit of the United States of America, Plaintiff-in-Judgment in the Receivership Action. The Court authorized the Receiver to prosecute actions for this purpose in the Order Approving Liquidation Plan, signed on August 11, 2011 (docket no. 169 in the Receivership Action). This Court accordingly has jurisdiction to hear this action pursuant to 28 U.S.C. 1331, 1340, and 1345. 5. This Court expressly retained exclusive jurisdiction and venue to hear all claims by or against the Grider Entities or otherwise concerning the business or assets of Grider or any of the Entities. Order Approving Liquidation Plan at 6. Venue is also proper in this District pursuant to 28 U.S.C. 1391(b)(2) and 1396. FACTS COMMON TO ALL CAUSES OF ACTION The Grider Companies and Judgments 6. Grider owned or controlled a number of business entities, including technical employee staffing businesses, that accrued tens of millions of dollars in liabilities for payroll taxes. These businesses included Transglobal Services, Inc., RMI Pendragon, Inc., Talent Force Technical, LLC, and a number of other companies (collectively, the Grider Companies ). 7. The United States filed numerous federal tax liens against Grider and his businesses. 2
Case 3:12-cv-01283-B Document 1 Filed 04/25/12 Page 3 of 5 PageID 3 The United States also filed two lawsuits, each of which resulted in an agreed judgment in favor of the United States. On March 9, 2011, an Agreed Final Judgment was entered in United States of America v. Rebecca Copeland Dunn-Grider, Arthur Piner Grider, III, and Morgan Stanley Dean Witter Credit Corporation, Civil Action No. 4:10-cv-02827 in the United States District Court for the Southern District of Texas. In this Agreed Final Judgment, judgment was rendered in favor of the United States and against Grider for federal trust fund recovery penalties, under 26 U.S.C. 6672, in amounts totalling more than TWELVE MILLION DOLLARS ($12,000,000.00). 8. On April 11, 2011, an Agreed Final Judgment and Permanent Injunction was entered in United States of America v. Arthur Piner Grider, III, et al, Civil Action No. 3:10-CV-0582-D in this Court (the Receivership Action). In this Agreed Final Judgment, judgment was rendered in favor of the United States and against Grider for federal trust fund recovery penalties, federal unemployment taxes (940 and 941), and miscellaneous penalty tax liabilities, plus interest and statutory additions thereon, in amounts totaling more than ONE HUNDRED AND FIVE MILLION DOLLARS ($105,000,000.00). Grider s Dealings with the Defendants 9. PR Squared is a public relations firm owned and controlled by Bennett. 10. From 2007 to 2010, the Grider Companies purported to retain PR Squared to provide public relations services. During that period of time, the Grider Companies made payments to PR Squared totaling $638,512.94. 11. PR Squared did not provide services to the Grider Companies of any substantial fair value, certainly not of a value commensurate with the payments made. In fact, the payments were thinly veiled gifts to Bennett, who had a personal relationship with Grider. 3
Case 3:12-cv-01283-B Document 1 Filed 04/25/12 Page 4 of 5 PageID 4 12. In 2009, the Grider Companies made payments direct to Bennett in the total amount of $47,000. Bennett also did not provide valuable consideration to the Grider Companies in exchange for those payments. 13. Grider and the Grider Companies also gave extravagant gifts to Bennett. The gifts included earrings valued at more than $65,000 and a Porsche 911 Carrera Cabriolet automobile, model year 2007, valued at more than $85,000. CAUSE OF ACTION: RECOVERY OF FRAUDULENT TRANSFERS 14. Grider and the Grider Companies did not receive reasonably equivalent value in exchange for the above-described payments and other gifts. And at the time of each such payment or gift, Grider or the Grider Company making the payment or gift was insolvent. All of those payments and gifts were therefore fraudulent pursuant to Section 24.006(a) of the of the Uniform Fraudulent Transfer Act (the UFTA ), TEX.BUS.&COM. CODE 24.006(a). 15. The above-described payments and other gifts were given with intent to hinder, delay or defraud creditors of Grider and the Grider Companies, including the United States. On information and belief, those transfers to Bennett and PR Squared were comprised, in whole or in part, of trust funds that were withheld from the paychecks to employees of the Grider Companies, namely federal payroll taxes and federal income tax withholdings. All such transfers are thus fraudulent pursuant to UFTA 24.005(a)(1). 16. Pursuant to Section 24.008(a) of the UFTA, the above-described fraudulent transfers should be avoided and judgment should be rendered against Defendants Bennett and PR Squared, jointly and severally, for the amounts and values of the above-described payments and gifts. 17. The Receiver has found it necessary to retain the undersigned counsel to prosecute 4
Case 3:12-cv-01283-B Document 1 Filed 04/25/12 Page 5 of 5 PageID 5 this action for recovery of fraudulent transfers. The Receiver requests an award of costs and reasonable attorney s fees pursuant to UFTA 24.013, TEX.BUS.&COM.CODE 24.013. WHEREFORE, Plaintiff Robert E. Ogle, Receiver prays that Defendants Leslie Bowlin Bennett and PR Squared, LLC be served with process and be required to appear herein; and that, upon final hearing or trial, the Court render judgment of and against said Defendants, jointly and severally, for all actual damages, as described above, together with pre-judgment interest thereon, reasonable attorney s fees, costs of court, post-judgment interest on all sums awarded, and such other and further relief to which the Plaintiff may be entitled. Respectfully submitted, /s/ H. Miles Cohn H. Miles Cohn Texas Bar No. 04509600 Joshua A. Eberle Texas Bar No. 24062706 SHEINESS, SCOTT, GROSSMAN & COHN, LLP 1001 McKinney St., Suite 1400 Houston, Texas 77002-6420 Telephone: (713) 374-7020 Facsimile: (713) 374-7049 ATTORNEYS FOR PLAINTIFF, ROBERT E. OGLE, RECEIVER /s/ Ramona S. Notinger RAMONA S. NOTINGER Ramona.S.Notinger@usdoj.gov Texas Bar No. 19158900 U.S. Department of Justice, Tax Division 717 N. Harwood, Suite 400 Dallas, Texas 75201 (214) 880-9766 Telephone (214) 880-9742 Fax ATTORNEYS FOR UNITED STATES AND LOCAL COUNSEL FOR PLAINTIFF, ROBERT E. OGLE, RECEIVER 5