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1 Gary M. Kaplan (State Bar No. 155530)
gkaplan@fbm.com
2 Farella Braun + Martel LLP ELECTRONICALLY
235 Montgomery Street, 17th Floor
3 San Francisco, California 94104 F I L E D
Superior Court of California,
Telephone: (415) 954-4400 County of San Francisco
4 Facsimile: (415) 954-4480
03/11/2022
Clerk of the Court
5 Attorneys for BY: SANDRA SCHIRO
Deputy Clerk
6
7
8 SUPERIOR COURT OF THE STATE OF CALIFORNIA
9 COUNTY OF SAN FRANCISCO
10
11 CRYSTAL LEI, an individual, and Case No. CGC-17-556769
BRYANT FU, an individual,
12 DECLARATION OF BRYANT FU IN
Plaintiffs, SUPPORT OF PLAINTIFFS’ MOTION
13 FOR LEAVE TO FILE FIRST
vs. AMENDED COMPLAINT
14
TINA YAN, individually and as personal Date: April 7, 2022
15 representative of the estate of CHEUK TIN Time: 9:30 am
YAN, deceased; THAI MING CHIU, an Dept.: 501
16 individual; KAMAN LIU, an individual; and The Hon. Charles F. Haines
DOES 1-20 inclusive,
17 [HEARING TO BE CONDUCTED VIA
Defendants. ZOOM VIDEO CONFERENCE
18 PURSUANT TO COURT DIRECTION]
19 I, Bryant Fu, declare:
20 1. I am one of the Plaintiffs in the above-captioned action. I submit this declaration in
21 support of Plaintiffs’ concurrently submitted Motion for Leave to File First Amended Complaint. I
22 have personal knowledge of the facts attested herein, and if I were called to testify about these
23 matters, I would be competent to and would do so.
24 2. Attached hereto as Exhibit A is a true and correct copy of the First Amended
25 Complaint (“FAC”) that Plaintiffs propose to be file in this action.
26 3. Attached hereto as Exhibit B is a true and correct “redline” comparing the FAC to
27 Plaintiffs’ initial Complaint filed herein on January 31, 2017.
28
Farella Braun + Martel LLP
235 Montgomery Street, 17th Floor
San Francisco, California 94104
41312\14667611.3
(415) 954-4400
FU DECL. ISO MOTION FOR LEAVE TO FILE FAC - Case No. CGC-17-556769
Exhibit A
1 Gary M. Kaplan (State Bar No. 155530)
gkaplan@fbm.com
2 Farella Braun + Martel LLP
235 Montgomery Street, 17th Floor
3 San Francisco, California 94104
Telephone: (415) 954-4400
4 Facsimile: (415) 954-4480
5 Attorneys for PLAINTIFFS
6
7
8 SUPERIOR COURT OF CALIFORNIA
9 COUNTY OF SAN FRANCISCO
10
11 BRYANT FU, an individual; and ) Case No.: CGC-17-556769
CRYSTAL LEI, an individual )
12
)
13 Plaintiffs, )
)
14 vs. ) VERIFIED FIRST AMENDED
) COMPLAINT FOR:
15 ) (1) FRAUDULENT TRANSFERS; and
TINA YAN, individually and as personal ) (2) CONSPIRACY TO ENGAGE IN
16 representative of the estate of CHEUK TIN ) FRAUDULENT TRANSFER
YAN, deceased; THAI MING CHIU, an )
17 individual,; KAMAN LIU, an individual; and )
DOES 1-20 inclusive, )
18 )
Defendants. )
19
20
21 INTRODUCTION
22 1. For over 16 years, vexatious litigant and disbarred attorney, Demas Wai Yan a/k/a Dennis Yan
23
(“Yan”) has been pathologically directing a deluge of frivolous litigation against Plaintiffs for
24
the clear purpose of causing them harm. In doing so, Yan acted on his declared intent to get
25
“revenge” against Plaintiffs for thwarting his illegal schemes, by subjecting plaintiffs to abusive
26
litigation and engaging in sanctionable conduct that drained plaintiffs’ time and money.
27
Simultaneously, Yan caused himself to effectively become “judgment-proof” by secreting his
28
Farella Braun + Martel LLP
41312\14654597.2
235 Montgomery Street, 17th Floor
San Francisco, California 94104
(415) 954-4400
VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
1 assets through the aid and assistance of defendants, thereby immunizing himself from liability
2 for the harms and damages he caused. As a direct and proximate result of Yan’s frivolous
3 litigation, Plaintiffs incurred expenses and losses aggregating more than $1 million.
4 PARTIES
5
2. Plaintiff Crystal Lei (“Lei”) and Bryant Fu (“Fu”) (collectively “Plaintiffs”) are, and at all
6
relevant times were, individuals residing in California, and over the age of 18 years old.
7
3. Defendant Thai Ming Chiu a/k/a Simon Chiu (“Chiu”), Kaman Liu (“Liu”), and Tina Yan
8
(collectively, “Defendants”) are, and at all relevant times were, individuals residing in
9
California, and over the age of 18 years old.
10
4. Plaintiffs are ignorant of the true name and capacities of the defendants sued herein as Does 1
11
through 20, inclusive, and therefore sue these defendants by such fictitious names. Plaintiffs
12
will seek leave of the court to insert the correct names of said defendants when the names have
13
14 been ascertained. Plaintiffs are informed and believe and thereon allege that each of the
15 defendants named herein as Doe participated and/or is responsible in some manner for the
16 occurrences herein alleged, and that Plaintiffs’ losses as herein alleged were proximately caused
17 by such acts of the fictitiously named defendants.
18 5. Plaintiffs are informed and believe and on that basis allege that at all times relevant to the acts
19 complained of herein, defendants, including the Doe Defendants, were or are the agents,
20 servants, employees, alter egos and/or representatives of the other defendants, and each of them,
21 acted in concert and conspired with and/or aided and abetted each other to do the acts
22
complained of herein and that Plaintiffs’ damages are proximately caused thereby and that each
23
defendant is responsible in some manner for the occurrences alleged herein in this First
24
Amended Complaint.
25
6. Plaintiffs are further informed and believe and on that basis allege that each of the acts of the
26
aforementioned defendants complained of herein was within the course and scope of the
27
aforementioned agency and/or employment, and was made at the advice, order, instruction,
28
Farella Braun + Martel LLP 2 41312\14654597.2
235 Montgomery Street, 17th Floor
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
1 direction and control of each of the other defendants, and with the knowledge, consent and/or
2 ratification of defendants, and each of them. Defendants’ acts harmed and/or caused harm
3 directly and/or indirectly to Plaintiffs.
4 JURISDICTION AND VENUE
5 7. This Court has subject matter jurisdiction over all causes of action asserted herein pursuant to
6
the California Constitution. Defendants are subject to the jurisdiction of this Court by having
7
caused injuries through their acts and omissions in the State of California and by their violations
8
of California statutory and common law.
9
8. Venue is proper in this Court pursuant to California Code of Civil Procedure Section 395 as
10
this is an action to enforce obligations and liabilities which, in substantial part, arose in this
11
county and which were, in substantial part, performed in this county.
12
GENERAL ALLEGATIONS
13
9. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set
14
15 forth here.
16 10. Plaintiffs obtained: a sanctions award against Yan in the amount of $2,500.00 from the United
17 States District Court for the Northern District of California (the “U.S. District Court”) on
18 January 15, 2020; an attorneys’ fee award against Yan in the amount of $42,687.69 from the
19 San Francisco County Superior Court on October 24, 2019; a judgment for attorneys’ fees and
20 emotional distress damages against Yan in the amount of $337,939.56 from the San Francisco
21 County Superior Court on August 14, 2019; a sanctions award against Yan in the amount of
22 $7,968.75 from the U.S. District Court on March 19, 2019; a sanctions award against Yan of
23
$500.00 per day since February 28, 2018 (which amounts to $730,500 as of February 28, 2022
24
and continues to accrue) from the U.S. District Court on February 18, 2018; a sanctions award
25
against Yan in the amount of $53,910.00 from the San Francisco County Superior Court on
26
June 6, 2016; a sanctions award against Yan in the amount of $35,004.71 from the Ninth Circuit
27
Court of Appeals on June 14, 2014; and several costs awards. These various awards, judgments
28
Farella Braun + Martel LLP 3 41312\14654597.2
235 Montgomery Street, 17th Floor
San Francisco, California 94104
(415) 954-4400
VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
1 and sanctions are collectively referred hereafter as the “Judgments.” Including accrued interest
2 thereon, Yan currently owes more than $1,000,000.00 on the Judgments.
3 11. The Judgments reflects Yan’s malicious and vexatious conduct enabled by defendants’ actions.
4 12. On or about November 15, 2013: Yan transferred his ownership of the real property commonly
5 known as 547 23rd Avenue, San Francisco, California to 547 23rd Avenue, LLC, and Yan
6
transferred his membership interest in 547 23rd Avenue, LLC (collectively, the “Property”) to
7
Defendants (collectively, the “November 2013 Transfers”).
8
FIRST CAUSE OF ACTION
9 (Damages for Fraudulent Transfers)
10 13. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set
11 forth here.
12 14. Plaintiffs have a right to payment from Yan pursuant to the Judgments.
13 15. Yan transferred the Property to Defendants pursuant to the November 2013 Transfers.
14 16. Plaintiffs were creditors of Yan at the time of the November 2013 Transfers.
15 17. The November 2013 Transfers were made for less than reasonably equivalent value.
16
18. The November 2013 Transfers were made with the intent to hinder, delay, and defraud existing
17
and future creditors of Yan, including Plaintiffs.
18
19. The November 2013 Transfers were made while Yan was either insolvent or rendered him
19
insolvent.
20
20. Plaintiffs were harmed as a result of the November 2013 Transfers.
21
21. The conduct of Yan and the Defendants was a substantial factor in causing Plaintiffs harm
22
pursuant to the November 2013 Transfers.
23
24 SECOND CAUSE OF ACTION
(Conspiracy to Engage in Fraudulent Transfer)
25
22. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set
26
forth here.
27
28
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
1 23. Defendants were aware that Yan intended to engage in the November 2013 Transfers to hinder,
2 delay, and defraud Yan’s creditors (including Plaintiffs).
3 24. Defendants agreed with Yan to engage in the November 2013 Transfers to hinder, delay, and
4 defraud Yan’s creditors (including Plaintiffs).
5 25. Defendants acted in concert and conspired with Yan in engaging in the November 2013
6
Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs).
7
26. Plaintiffs were harmed by Defendants’ conspiracy with Yan to engage in the November
8
2013 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs).
9
27. By reason of Defendants’ conspiracy with Yan to hinder, delay, and defraud Yan’s
10
creditors (including Plaintiffs) pursuant to the November 2013 Transfers, Plaintiffs have
11
been damaged by at least the amount of the Judgments which they otherwise would have
12
been able to collect from Yan.
13
28. Defendants are jointly and severally liable for the damages resulting from such conspiracy.
14
15 29. Defendants engaged in the aforementioned conduct with malice, oppression and/or fraud,
16 which warrants an award of punitive damages in an amount to be determined.
17 30. Defendants acted with malice as their aforementioned conduct was engaged in with the
18 intent to cause injury to Plaintiffs and/or such conduct was despicable and done with a
19 willful and knowing disregard of Plaintiffs’ rights.
20 31. Defendants acted with oppression as their aforementioned conduct was despicable and
21 subjected Plaintiffs to cruel and unjust hardship in knowing disregard of Plaintiffs’ rights.
22 PRAYER FOR RELIEF
23 WHEREFORE, Plaintiffs pray for entry of judgment against Defendants including the following
24 relief:
25 1. For avoidance and recovery of the November 2013 Transfers.
26 2. For damages against Defendants, jointly and severally, in the amount of the lesser
27 of (i) the value of the Property, or (ii) the amount necessary to satisfy the Judgments, plus the
28
Farella Braun + Martel LLP 5 41312\14654597.2
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
1 costs of enforcing the Judgment recoverable pursuant to California Civil Code Section 685.040 et
2 seq. (in an amount to be determined), plus interest accruing on the Judgments.
3 3. For punitive damages against Defendants, jointly and severally, in an amount to be
4 determined.
5 4. For an award of prejudgment interest at the maximum legal rate.
6 5. For an award of postjudgment interest at the maximum legal rate.
7 6. For attorneys’ fees.
8 7. For costs of suit
9 8. For an injunction prohibiting any further disposition of the Property, the proceeds
10 thereof, or other assets of Defendants.
11 9. For such other and further relief as this Court may deem just and proper.
12
Dated: March __, 2022 FARELLA BRAUN + MARTEL LLP
13
14 By:
Gary M. Kaplan
15
Attorneys for PLAINTIFFS
16
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25
26
27
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235 Montgomery Street, 17th Floor
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
1 VERIFICATION
We Bryant Fu and Crystal Lei, are the plaintiffs in this matter. We have read the
2
foregoing complaint, and know the contents thereof to be true and correct to the best of our
3
personal knowledge, except as to those matters stated therein upon information and belief, in
4 which case we believe them to be true.
5
6 Dated:
7
8
___________________
9 Crystal Lei
10 ___________________
Bryant Fu
11
12
13
14
15
16
17
18
19
20
21
22
23
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25
26
27
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Farella Braun + Martel LLP 7 41312\14654597.2
235 Montgomery Street, 17th Floor
San Francisco, California 94104
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY -
Case No. CGC-17 -556769
Exhibit B
1 Mark A. Serlin, CSBN: 122155
Gary M. Kaplan (State Bar No. 155530)
2 gkaplan@fbm.com
SERLIN & WHITEFORD,Farella Braun + Martel LLP
3 235 Montgomery Street, 17th Floor
San Francisco, California 94104
4 700 E Street
Sacramento, CA 95814
5 Telephone: (916415) 446954-07904400
Facsimile: (916415) 446954-07914480
6 Email: mserlingglobelaw.com
7 Attorneys for PlaintiffsPLAINTIFFS
BRYANT FU and CRYSTAL LEI
8
9
10
11
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SAN FRANCISCO
12
13
BRYANT FU, an individual; and ) Case No.: CGC-17-556769
14 )
CRYSTAL LEI, an individual
15 )
Plaintiffs, )
16 )
) VERIFIED FIRST AMENDED
17 vs. ) COMPLAINT FOR:
) (1) FRAUDULENT TRANSFERS; and
18 ) (2) CONSPIRACY TO ENGAGE IN
TINA YAN, individually and as personal ) ) FRAUDULENT TRANSFER
representative of the estate of CHEUK TIN
19 YANrepresentative of the estate of Cheuk Tin ) FRAUDULENT TRANSFERS AND
) ) CONSPIRACY TO DEFRAUD
20 Yan, deceased; THAI MINMING CHIU; ), an )
individual,; KAMAN LIU, an individual; and )
21 )
DOES 1-20, inclusive,
22
Defendants.
23
24
25
INTRODUCTION
26 I. GENERAL ALLEGATIONS
1. For over 16 years, vexatious litigant and disbarred attorney, Demas Wai Yan a/k/a Dennis Yan
27
(“Yan”) has been pathologically directing a deluge of frivolous litigation against Plaintiffs for
28
Farella Braun + Martel LLP
41312\14641025.114654597.2
235 Montgomery Street, 17th Floor
VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD -
San Francisco, California 94104
(415) 954-4400
Case No. CGC-17 -556769
1 the clear purpose of causing them harm. In doing so, Yan acted on his declared intent to get
2 “revenge” against Plaintiffs for thwarting his illegal schemes, by subjecting plaintiffs to abusive
3 litigation and engaging in sanctionable conduct that drained plaintiffs’ time and money.
4 Simultaneously, Yan caused himself to effectively become “judgment-proof” by secreting his
5 assets through the aid and assistance of defendants, thereby immunizing himself from liability
6
for the harms and damages he caused. As a direct and proximate result of Yan’s frivolous
7
litigation, Plaintiffs incurred expenses and losses aggregating more than $1 million.
8
PARTIES
9 1. Plaintiffs Bryant Fu and Crystal Lei ("Lei") (together, "Plaintiffs") are, and at all times
relevant herein were, individuals residing in San Francisco County, California.
10 2. Plaintiff Crystal Lei (“Lei”) and Bryant Fu (“Fu”) (collectively “Plaintiffs”) are, and at all
11 relevant times were, individuals residing in California, and over the age of 18 years old.
12
3. 2. Defendants Tina Yan,Defendant Thai MinMing Chiu, and a/k/a Simon Chiu (“Chiu”),
13
Kaman Liu (“Liu”), and Tina Yan (collectively, "“Defendants"”) are, and at all relevant times
14
relevant herein were, individuals residing in San Francisco County, California. On information
15
and belief, Tina Yan has succeeded to all rights and properties of Cheuk Tin Yan, deceased,
16
and over the age of 18 years old.
17
4. 3. Plaintiffs are unawareignorant of the true namesname and capacities of the defendants sued
18
herein as Does 1 -through 20, inclusive, and therefore sue said Doethese defendants by such
19
fictitious names. Plaintiffs will amend this complaint to state those defendants' true names and
20
capacities whenseek leave of the court to insert the correct names of said defendants when the
21
22 names have been ascertained. Plaintiffs are informed and believe, and thereupon allege,thereon
23 allege that each of the defendants in this matter was the agent, servant or employee of each
24 other defendant, and in doing the things alleged in this complaint acted within the course and
25 scope of that agency, service or employ and with each other defendant's permission and
26 consent.named herein as Doe participated and/or is responsible in some manner for the
27
28
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD -
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Case No. CGC-17 -556769
1 occurrences herein alleged, and that Plaintiffs’ losses as herein alleged were proximately caused
2 by such acts of the fictitiously named defendants.
3 5. Plaintiffs are informed and believe and on that basis allege that at all times relevant to the acts
4 complained of herein, defendants, including the Doe Defendants, were or are the agents,
5 servants, employees, alter egos and/or representatives of the other defendants, and each of them,
6
acted in concert and conspired with and/or aided and abetted each other to do the acts
7
complained of herein and that Plaintiffs’ damages are proximately caused thereby and that each
8
defendant is responsible in some manner for the occurrences alleged herein in this First
9
Amended Complaint.
10
6. 4. Plaintiffs are further informed and believe and thereonon that basis allege that at all times
11
herein mentioned, each of the acts of the aforementioned defendants sued herein was the agent,
12
principal, and/or employee of each and every other defendant, and in doing, saying, or omitting
13
to say the things herein alleged, was actingcomplained of herein was within the course and
14
15 scope of suchthe aforementioned agency and/or employment, and with the permission and
16 consentwas made at the advice, order, instruction, direction and control of each of the other
17 defendants., and with the knowledge, consent and/or ratification of defendants, and each of
18 them. Defendants’ acts harmed and/or caused harm directly and/or indirectly to Plaintiffs.
19 JURISDICTION AND VENUE
II. FIRST CAUSE OF ACTION
20 7. This Court has subject matter jurisdiction over all causes of action asserted herein pursuant to
21 the California Constitution. Defendants are subject to the jurisdiction of this Court by having
22 caused injuries through their acts and omissions in the State of California and by their violations
23 of California statutory and common law.
24
8. Venue is proper in this Court pursuant to California Code of Civil Procedure Section 395 as
25
this is an action to enforce obligations and liabilities which, in substantial part, arose in this
26
county and which were, in substantial part, performed in this county.
27
GENERAL ALLEGATIONS
28 (Damages for Fraudulent Transfers)
Farella Braun + Martel LLP 3 41312\14641025.114654597.2
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD -
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Case No. CGC-17 -556769
1 9. 5. Plaintiffs incorporate by reference the allegations of each and every paragraph above as
2 though fully set forth the allegations of 1 through 4, inclusivehere.
3 6. Plaintiffs obtained an award of attorneys' fees against Demas Yan ("Yan") in the
4 amount of $53,910.00 from the San Francisco County Superior Court on June 6, 2016, and Lei
5 obtained a judgment against Yan in the amount of $35,004.71 from the United States District
6 Court for the Northern District of California on June 24, 2014. The attorneys' fees award and
7 judgment are hereinafter referred to together as the "Judgments."
8 10. Plaintiffs obtained: a sanctions award against Yan in the amount of $2,500.00 from the United
9 States District Court for the Northern District of California (the “U.S. District Court”) on
10 January 15, 2020; an attorneys’ fee award against Yan in the amount of $42,687.69 from the
11
San Francisco County Superior Court on October 24, 2019; a judgment for attorneys’ fees and
12
emotional distress damages against Yan in the amount of $337,939.56 from the San Francisco
13
County Superior Court on August 14, 2019; a sanctions award against Yan in the amount of
14
$7,968.75 from the U.S. District Court on March 19, 2019; a sanctions award against Yan of
15
$500.00 per day since February 28, 2018 (which amounts to $730,500 as of February 28, 2022
16
and continues to accrue) from the U.S. District Court on February 18, 2018; a sanctions award
17
against Yan in the amount of $53,910.00 from the San Francisco County Superior Court on
18
June 6, 2016; a sanctions award against Yan in the amount of $35,004.71 from the Ninth Circuit
19
20 Court of Appeals on June 14, 2014; and several costs awards. These various awards, judgments
21 and sanctions are collectively referred hereafter as the “Judgments.” Including accrued interest
22 thereon, Yan currently owes more than $1,000,000.00 on the Judgments.
23 11. The Judgments reflects Yan’s malicious and vexatious conduct enabled by defendants’ actions.
24 12. 7. On or about November 15, 2013,: Yan transferred his ownership of the real property
25 commonly known as 547 23rd Avenue, San Francisco, California to 547 23rd Avenue, LLC.
26 Also on or about November 15, 2013,, and Yan transferred his membership interestsinterest in
27
28
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VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD -
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Case No. CGC-17 -556769
1 547 23rd Avenue, LLC (collectively, the “Property”) to Defendants. Those transfers were made
2 for less than reasonably equivalent value and(collectively, the “November 2013 Transfers”).
3 FIRST CAUSE OF ACTION
(Damages for Fraudulent Transfers)
4
13. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set
5
forth here.
6
14. Plaintiffs have a right to payment from Yan pursuant to the Judgments.
7
8 15. Yan transferred the Property to Defendants pursuant to the November 2013 Transfers.
9 16. Plaintiffs were creditors of Yan at the time of the November 2013 Transfers.
10 17. The November 2013 Transfers were made for less than reasonably equivalent value.
11 18. The November 2013 Transfers were made with the intent to hinder, delay, and defraud existing
12 and future creditors of Yan, including but not limited to Plaintiffs. Further, at the time of the
13 aforesaid transfers,
14 19. The November 2013 Transfers were made while Yan was either insolvent or the transfers
15 rendered him insolvent. That the transfers were made with intent to hinder, delay, and defraud
16
creditors and were made for less than reasonably equivalent value when Yan was insolvent was
17
determined after a trial in San Francisco Superior Court case no. CGC-14-537574.
18
8. The value of the property transferred by Yan as aforesaid in fraud of creditors is
19
greatly in excess of the amounts due from Yan to Plaintiffs under the Judgments. Pursuant to
20
California Civil Code § 3439.08, Plaintiffs are entitled to recover as money damages the lesser of
21
value of the transferred real properties amount due on the Judgments.
22
20. Plaintiffs were harmed as a result of the November 2013 Transfers.
23
21. The conduct of Yan and the Defendants was a substantial factor in causing Plaintiffs harm
24
pursuant to the November 2013 Transfers.
25
9. Plaintiffs are thus entitled to the amount due on the Judgments from Defendants.
26 10. The actions of Defendants as aforesaid were willful, wanton, and fraudulent and
27 thus warrant an award of punitive damages in an amount to be determined, but in no event less
28
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Case No. CGC-17 -556769
1 than $100,000.00.
2 III. SECOND CAUSE OF ACTION
(Conspiracy to DefraudEngage in Fraudulent Transfer)
3
22. 11. Plaintiffs incorporate by referencethe allegations of each and every paragraph above as
4
though fully set forth the allegations of 1 through 10, inclusivehere.
5
12. Unbeknownst to Plaintiffs, on or about November 15, 2013, Defendants and Yan
6
entered into a conspiracy pursuant to which Yan would make the aforementioned transfers to
7
Defendants in order to hinder, delay, and defraud creditors then existing and future creditors such
8
as Plaintiffs.
9
13. In furtherance of such conspiracy, Yan made the transfers to Defendants as
10
aforesaid and Defendants accepted those transfers as part and parcel of the conspiracy.
11
23. Defendants were aware that Yan intended to engage in the November 2013 Transfers to hinder,
12
delay, and defraud Yan’s creditors (including Plaintiffs).
13
24. Defendants agreed with Yan to engage in the November 2013 Transfers to hinder, delay, and
14
15 defraud Yan’s creditors (including Plaintiffs).
16 25. Defendants acted in concert and conspired with Yan in engaging in the November 2013
17 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs).
18 26. Plaintiffs were harmed by Defendants’ conspiracy with Yan to engage in the November
19 2013 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs).
20 27. 14. By reason of the conspiracy and Defendants' knowing and voluntary participation therein
21 in doing the acts described above’ conspiracy with Yan to hinder, delay, and defraud Yan’s
22 creditors (including Plaintiffs) pursuant to the November 2013 Transfers, Plaintiffs have
23
been damaged inby at least the amount of the Judgments which they otherwise would have
24
been able to collect from Yan but for the aforementioned transfers. As such,.
25
28. Defendants are jointly and severally liable for the damages resulting from such conspiracy
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1 Gary M. Kaplan (State Bar No. 155530) gkaplan@fbm.com 2 Farella Braun + Martel LLP ELECTRONICALLY 235 Montgomery Street, 17th Floor 3 San Francisco, California 94104 F I L E D Superior Court of California, Telephone: (415) 954-4400 County of San Francisco 4 Facsimile: (415) 954-4480 03/11/2022 Clerk of the Court 5 Attorneys for BY: SANDRA SCHIRO Deputy Clerk 6 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 COUNTY OF SAN FRANCISCO 10 11 CRYSTAL LEI, an individual, and Case No. CGC-17-556769 BRYANT FU, an individual, 12 DECLARATION OF BRYANT FU IN Plaintiffs, SUPPORT OF PLAINTIFFS’ MOTION 13 FOR LEAVE TO FILE FIRST vs. AMENDED COMPLAINT 14 TINA YAN, individually and as personal Date: April 7, 2022 15 representative of the estate of CHEUK TIN Time: 9:30 am YAN, deceased; THAI MING CHIU, an Dept.: 501 16 individual; KAMAN LIU, an individual; and The Hon. Charles F. Haines DOES 1-20 inclusive, 17 [HEARING TO BE CONDUCTED VIA Defendants. ZOOM VIDEO CONFERENCE 18 PURSUANT TO COURT DIRECTION] 19 I, Bryant Fu, declare: 20 1. I am one of the Plaintiffs in the above-captioned action. I submit this declaration in 21 support of Plaintiffs’ concurrently submitted Motion for Leave to File First Amended Complaint. I 22 have personal knowledge of the facts attested herein, and if I were called to testify about these 23 matters, I would be competent to and would do so. 24 2. Attached hereto as Exhibit A is a true and correct copy of the First Amended 25 Complaint (“FAC”) that Plaintiffs propose to be file in this action. 26 3. Attached hereto as Exhibit B is a true and correct “redline” comparing the FAC to 27 Plaintiffs’ initial Complaint filed herein on January 31, 2017. 28 Farella Braun + Martel LLP 235 Montgomery Street, 17th Floor San Francisco, California 94104 41312\14667611.3 (415) 954-4400 FU DECL. ISO MOTION FOR LEAVE TO FILE FAC - Case No. CGC-17-556769 Exhibit A 1 Gary M. Kaplan (State Bar No. 155530) gkaplan@fbm.com 2 Farella Braun + Martel LLP 235 Montgomery Street, 17th Floor 3 San Francisco, California 94104 Telephone: (415) 954-4400 4 Facsimile: (415) 954-4480 5 Attorneys for PLAINTIFFS 6 7 8 SUPERIOR COURT OF CALIFORNIA 9 COUNTY OF SAN FRANCISCO 10 11 BRYANT FU, an individual; and ) Case No.: CGC-17-556769 CRYSTAL LEI, an individual ) 12 ) 13 Plaintiffs, ) ) 14 vs. ) VERIFIED FIRST AMENDED ) COMPLAINT FOR: 15 ) (1) FRAUDULENT TRANSFERS; and TINA YAN, individually and as personal ) (2) CONSPIRACY TO ENGAGE IN 16 representative of the estate of CHEUK TIN ) FRAUDULENT TRANSFER YAN, deceased; THAI MING CHIU, an ) 17 individual,; KAMAN LIU, an individual; and ) DOES 1-20 inclusive, ) 18 ) Defendants. ) 19 20 21 INTRODUCTION 22 1. For over 16 years, vexatious litigant and disbarred attorney, Demas Wai Yan a/k/a Dennis Yan 23 (“Yan”) has been pathologically directing a deluge of frivolous litigation against Plaintiffs for 24 the clear purpose of causing them harm. In doing so, Yan acted on his declared intent to get 25 “revenge” against Plaintiffs for thwarting his illegal schemes, by subjecting plaintiffs to abusive 26 litigation and engaging in sanctionable conduct that drained plaintiffs’ time and money. 27 Simultaneously, Yan caused himself to effectively become “judgment-proof” by secreting his 28 Farella Braun + Martel LLP 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 1 assets through the aid and assistance of defendants, thereby immunizing himself from liability 2 for the harms and damages he caused. As a direct and proximate result of Yan’s frivolous 3 litigation, Plaintiffs incurred expenses and losses aggregating more than $1 million. 4 PARTIES 5 2. Plaintiff Crystal Lei (“Lei”) and Bryant Fu (“Fu”) (collectively “Plaintiffs”) are, and at all 6 relevant times were, individuals residing in California, and over the age of 18 years old. 7 3. Defendant Thai Ming Chiu a/k/a Simon Chiu (“Chiu”), Kaman Liu (“Liu”), and Tina Yan 8 (collectively, “Defendants”) are, and at all relevant times were, individuals residing in 9 California, and over the age of 18 years old. 10 4. Plaintiffs are ignorant of the true name and capacities of the defendants sued herein as Does 1 11 through 20, inclusive, and therefore sue these defendants by such fictitious names. Plaintiffs 12 will seek leave of the court to insert the correct names of said defendants when the names have 13 14 been ascertained. Plaintiffs are informed and believe and thereon allege that each of the 15 defendants named herein as Doe participated and/or is responsible in some manner for the 16 occurrences herein alleged, and that Plaintiffs’ losses as herein alleged were proximately caused 17 by such acts of the fictitiously named defendants. 18 5. Plaintiffs are informed and believe and on that basis allege that at all times relevant to the acts 19 complained of herein, defendants, including the Doe Defendants, were or are the agents, 20 servants, employees, alter egos and/or representatives of the other defendants, and each of them, 21 acted in concert and conspired with and/or aided and abetted each other to do the acts 22 complained of herein and that Plaintiffs’ damages are proximately caused thereby and that each 23 defendant is responsible in some manner for the occurrences alleged herein in this First 24 Amended Complaint. 25 6. Plaintiffs are further informed and believe and on that basis allege that each of the acts of the 26 aforementioned defendants complained of herein was within the course and scope of the 27 aforementioned agency and/or employment, and was made at the advice, order, instruction, 28 Farella Braun + Martel LLP 2 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 1 direction and control of each of the other defendants, and with the knowledge, consent and/or 2 ratification of defendants, and each of them. Defendants’ acts harmed and/or caused harm 3 directly and/or indirectly to Plaintiffs. 4 JURISDICTION AND VENUE 5 7. This Court has subject matter jurisdiction over all causes of action asserted herein pursuant to 6 the California Constitution. Defendants are subject to the jurisdiction of this Court by having 7 caused injuries through their acts and omissions in the State of California and by their violations 8 of California statutory and common law. 9 8. Venue is proper in this Court pursuant to California Code of Civil Procedure Section 395 as 10 this is an action to enforce obligations and liabilities which, in substantial part, arose in this 11 county and which were, in substantial part, performed in this county. 12 GENERAL ALLEGATIONS 13 9. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set 14 15 forth here. 16 10. Plaintiffs obtained: a sanctions award against Yan in the amount of $2,500.00 from the United 17 States District Court for the Northern District of California (the “U.S. District Court”) on 18 January 15, 2020; an attorneys’ fee award against Yan in the amount of $42,687.69 from the 19 San Francisco County Superior Court on October 24, 2019; a judgment for attorneys’ fees and 20 emotional distress damages against Yan in the amount of $337,939.56 from the San Francisco 21 County Superior Court on August 14, 2019; a sanctions award against Yan in the amount of 22 $7,968.75 from the U.S. District Court on March 19, 2019; a sanctions award against Yan of 23 $500.00 per day since February 28, 2018 (which amounts to $730,500 as of February 28, 2022 24 and continues to accrue) from the U.S. District Court on February 18, 2018; a sanctions award 25 against Yan in the amount of $53,910.00 from the San Francisco County Superior Court on 26 June 6, 2016; a sanctions award against Yan in the amount of $35,004.71 from the Ninth Circuit 27 Court of Appeals on June 14, 2014; and several costs awards. These various awards, judgments 28 Farella Braun + Martel LLP 3 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 1 and sanctions are collectively referred hereafter as the “Judgments.” Including accrued interest 2 thereon, Yan currently owes more than $1,000,000.00 on the Judgments. 3 11. The Judgments reflects Yan’s malicious and vexatious conduct enabled by defendants’ actions. 4 12. On or about November 15, 2013: Yan transferred his ownership of the real property commonly 5 known as 547 23rd Avenue, San Francisco, California to 547 23rd Avenue, LLC, and Yan 6 transferred his membership interest in 547 23rd Avenue, LLC (collectively, the “Property”) to 7 Defendants (collectively, the “November 2013 Transfers”). 8 FIRST CAUSE OF ACTION 9 (Damages for Fraudulent Transfers) 10 13. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set 11 forth here. 12 14. Plaintiffs have a right to payment from Yan pursuant to the Judgments. 13 15. Yan transferred the Property to Defendants pursuant to the November 2013 Transfers. 14 16. Plaintiffs were creditors of Yan at the time of the November 2013 Transfers. 15 17. The November 2013 Transfers were made for less than reasonably equivalent value. 16 18. The November 2013 Transfers were made with the intent to hinder, delay, and defraud existing 17 and future creditors of Yan, including Plaintiffs. 18 19. The November 2013 Transfers were made while Yan was either insolvent or rendered him 19 insolvent. 20 20. Plaintiffs were harmed as a result of the November 2013 Transfers. 21 21. The conduct of Yan and the Defendants was a substantial factor in causing Plaintiffs harm 22 pursuant to the November 2013 Transfers. 23 24 SECOND CAUSE OF ACTION (Conspiracy to Engage in Fraudulent Transfer) 25 22. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set 26 forth here. 27 28 Farella Braun + Martel LLP 4 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 1 23. Defendants were aware that Yan intended to engage in the November 2013 Transfers to hinder, 2 delay, and defraud Yan’s creditors (including Plaintiffs). 3 24. Defendants agreed with Yan to engage in the November 2013 Transfers to hinder, delay, and 4 defraud Yan’s creditors (including Plaintiffs). 5 25. Defendants acted in concert and conspired with Yan in engaging in the November 2013 6 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs). 7 26. Plaintiffs were harmed by Defendants’ conspiracy with Yan to engage in the November 8 2013 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs). 9 27. By reason of Defendants’ conspiracy with Yan to hinder, delay, and defraud Yan’s 10 creditors (including Plaintiffs) pursuant to the November 2013 Transfers, Plaintiffs have 11 been damaged by at least the amount of the Judgments which they otherwise would have 12 been able to collect from Yan. 13 28. Defendants are jointly and severally liable for the damages resulting from such conspiracy. 14 15 29. Defendants engaged in the aforementioned conduct with malice, oppression and/or fraud, 16 which warrants an award of punitive damages in an amount to be determined. 17 30. Defendants acted with malice as their aforementioned conduct was engaged in with the 18 intent to cause injury to Plaintiffs and/or such conduct was despicable and done with a 19 willful and knowing disregard of Plaintiffs’ rights. 20 31. Defendants acted with oppression as their aforementioned conduct was despicable and 21 subjected Plaintiffs to cruel and unjust hardship in knowing disregard of Plaintiffs’ rights. 22 PRAYER FOR RELIEF 23 WHEREFORE, Plaintiffs pray for entry of judgment against Defendants including the following 24 relief: 25 1. For avoidance and recovery of the November 2013 Transfers. 26 2. For damages against Defendants, jointly and severally, in the amount of the lesser 27 of (i) the value of the Property, or (ii) the amount necessary to satisfy the Judgments, plus the 28 Farella Braun + Martel LLP 5 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 1 costs of enforcing the Judgment recoverable pursuant to California Civil Code Section 685.040 et 2 seq. (in an amount to be determined), plus interest accruing on the Judgments. 3 3. For punitive damages against Defendants, jointly and severally, in an amount to be 4 determined. 5 4. For an award of prejudgment interest at the maximum legal rate. 6 5. For an award of postjudgment interest at the maximum legal rate. 7 6. For attorneys’ fees. 8 7. For costs of suit 9 8. For an injunction prohibiting any further disposition of the Property, the proceeds 10 thereof, or other assets of Defendants. 11 9. For such other and further relief as this Court may deem just and proper. 12 Dated: March __, 2022 FARELLA BRAUN + MARTEL LLP 13 14 By: Gary M. Kaplan 15 Attorneys for PLAINTIFFS 16 17 18 19 20 21 22 23 24 25 26 27 28 Farella Braun + Martel LLP 6 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 1 VERIFICATION We Bryant Fu and Crystal Lei, are the plaintiffs in this matter. We have read the 2 foregoing complaint, and know the contents thereof to be true and correct to the best of our 3 personal knowledge, except as to those matters stated therein upon information and belief, in 4 which case we believe them to be true. 5 6 Dated: 7 8 ___________________ 9 Crystal Lei 10 ___________________ Bryant Fu 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Farella Braun + Martel LLP 7 41312\14654597.2 235 Montgomery Street, 17th Floor San Francisco, California 94104 (415) 954-4400 VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY - Case No. CGC-17 -556769 Exhibit B 1 Mark A. Serlin, CSBN: 122155 Gary M. Kaplan (State Bar No. 155530) 2 gkaplan@fbm.com SERLIN & WHITEFORD,Farella Braun + Martel LLP 3 235 Montgomery Street, 17th Floor San Francisco, California 94104 4 700 E Street Sacramento, CA 95814 5 Telephone: (916415) 446954-07904400 Facsimile: (916415) 446954-07914480 6 Email: mserlingglobelaw.com 7 Attorneys for PlaintiffsPLAINTIFFS BRYANT FU and CRYSTAL LEI 8 9 10 11 SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SAN FRANCISCO 12 13 BRYANT FU, an individual; and ) Case No.: CGC-17-556769 14 ) CRYSTAL LEI, an individual 15 ) Plaintiffs, ) 16 ) ) VERIFIED FIRST AMENDED 17 vs. ) COMPLAINT FOR: ) (1) FRAUDULENT TRANSFERS; and 18 ) (2) CONSPIRACY TO ENGAGE IN TINA YAN, individually and as personal ) ) FRAUDULENT TRANSFER representative of the estate of CHEUK TIN 19 YANrepresentative of the estate of Cheuk Tin ) FRAUDULENT TRANSFERS AND ) ) CONSPIRACY TO DEFRAUD 20 Yan, deceased; THAI MINMING CHIU; ), an ) individual,; KAMAN LIU, an individual; and ) 21 ) DOES 1-20, inclusive, 22 Defendants. 23 24 25 INTRODUCTION 26 I. GENERAL ALLEGATIONS 1. For over 16 years, vexatious litigant and disbarred attorney, Demas Wai Yan a/k/a Dennis Yan 27 (“Yan”) has been pathologically directing a deluge of frivolous litigation against Plaintiffs for 28 Farella Braun + Martel LLP 41312\14641025.114654597.2 235 Montgomery Street, 17th Floor VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD - San Francisco, California 94104 (415) 954-4400 Case No. CGC-17 -556769 1 the clear purpose of causing them harm. In doing so, Yan acted on his declared intent to get 2 “revenge” against Plaintiffs for thwarting his illegal schemes, by subjecting plaintiffs to abusive 3 litigation and engaging in sanctionable conduct that drained plaintiffs’ time and money. 4 Simultaneously, Yan caused himself to effectively become “judgment-proof” by secreting his 5 assets through the aid and assistance of defendants, thereby immunizing himself from liability 6 for the harms and damages he caused. As a direct and proximate result of Yan’s frivolous 7 litigation, Plaintiffs incurred expenses and losses aggregating more than $1 million. 8 PARTIES 9 1. Plaintiffs Bryant Fu and Crystal Lei ("Lei") (together, "Plaintiffs") are, and at all times relevant herein were, individuals residing in San Francisco County, California. 10 2. Plaintiff Crystal Lei (“Lei”) and Bryant Fu (“Fu”) (collectively “Plaintiffs”) are, and at all 11 relevant times were, individuals residing in California, and over the age of 18 years old. 12 3. 2. Defendants Tina Yan,Defendant Thai MinMing Chiu, and a/k/a Simon Chiu (“Chiu”), 13 Kaman Liu (“Liu”), and Tina Yan (collectively, "“Defendants"”) are, and at all relevant times 14 relevant herein were, individuals residing in San Francisco County, California. On information 15 and belief, Tina Yan has succeeded to all rights and properties of Cheuk Tin Yan, deceased, 16 and over the age of 18 years old. 17 4. 3. Plaintiffs are unawareignorant of the true namesname and capacities of the defendants sued 18 herein as Does 1 -through 20, inclusive, and therefore sue said Doethese defendants by such 19 fictitious names. Plaintiffs will amend this complaint to state those defendants' true names and 20 capacities whenseek leave of the court to insert the correct names of said defendants when the 21 22 names have been ascertained. Plaintiffs are informed and believe, and thereupon allege,thereon 23 allege that each of the defendants in this matter was the agent, servant or employee of each 24 other defendant, and in doing the things alleged in this complaint acted within the course and 25 scope of that agency, service or employ and with each other defendant's permission and 26 consent.named herein as Doe participated and/or is responsible in some manner for the 27 28 Farella Braun + Martel LLP 2 41312\14641025.114654597.2 235 Montgomery Street, 17th Floor VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD - San Francisco, California 94104 (415) 954-4400 Case No. CGC-17 -556769 1 occurrences herein alleged, and that Plaintiffs’ losses as herein alleged were proximately caused 2 by such acts of the fictitiously named defendants. 3 5. Plaintiffs are informed and believe and on that basis allege that at all times relevant to the acts 4 complained of herein, defendants, including the Doe Defendants, were or are the agents, 5 servants, employees, alter egos and/or representatives of the other defendants, and each of them, 6 acted in concert and conspired with and/or aided and abetted each other to do the acts 7 complained of herein and that Plaintiffs’ damages are proximately caused thereby and that each 8 defendant is responsible in some manner for the occurrences alleged herein in this First 9 Amended Complaint. 10 6. 4. Plaintiffs are further informed and believe and thereonon that basis allege that at all times 11 herein mentioned, each of the acts of the aforementioned defendants sued herein was the agent, 12 principal, and/or employee of each and every other defendant, and in doing, saying, or omitting 13 to say the things herein alleged, was actingcomplained of herein was within the course and 14 15 scope of suchthe aforementioned agency and/or employment, and with the permission and 16 consentwas made at the advice, order, instruction, direction and control of each of the other 17 defendants., and with the knowledge, consent and/or ratification of defendants, and each of 18 them. Defendants’ acts harmed and/or caused harm directly and/or indirectly to Plaintiffs. 19 JURISDICTION AND VENUE II. FIRST CAUSE OF ACTION 20 7. This Court has subject matter jurisdiction over all causes of action asserted herein pursuant to 21 the California Constitution. Defendants are subject to the jurisdiction of this Court by having 22 caused injuries through their acts and omissions in the State of California and by their violations 23 of California statutory and common law. 24 8. Venue is proper in this Court pursuant to California Code of Civil Procedure Section 395 as 25 this is an action to enforce obligations and liabilities which, in substantial part, arose in this 26 county and which were, in substantial part, performed in this county. 27 GENERAL ALLEGATIONS 28 (Damages for Fraudulent Transfers) Farella Braun + Martel LLP 3 41312\14641025.114654597.2 235 Montgomery Street, 17th Floor VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD - San Francisco, California 94104 (415) 954-4400 Case No. CGC-17 -556769 1 9. 5. Plaintiffs incorporate by reference the allegations of each and every paragraph above as 2 though fully set forth the allegations of 1 through 4, inclusivehere. 3 6. Plaintiffs obtained an award of attorneys' fees against Demas Yan ("Yan") in the 4 amount of $53,910.00 from the San Francisco County Superior Court on June 6, 2016, and Lei 5 obtained a judgment against Yan in the amount of $35,004.71 from the United States District 6 Court for the Northern District of California on June 24, 2014. The attorneys' fees award and 7 judgment are hereinafter referred to together as the "Judgments." 8 10. Plaintiffs obtained: a sanctions award against Yan in the amount of $2,500.00 from the United 9 States District Court for the Northern District of California (the “U.S. District Court”) on 10 January 15, 2020; an attorneys’ fee award against Yan in the amount of $42,687.69 from the 11 San Francisco County Superior Court on October 24, 2019; a judgment for attorneys’ fees and 12 emotional distress damages against Yan in the amount of $337,939.56 from the San Francisco 13 County Superior Court on August 14, 2019; a sanctions award against Yan in the amount of 14 $7,968.75 from the U.S. District Court on March 19, 2019; a sanctions award against Yan of 15 $500.00 per day since February 28, 2018 (which amounts to $730,500 as of February 28, 2022 16 and continues to accrue) from the U.S. District Court on February 18, 2018; a sanctions award 17 against Yan in the amount of $53,910.00 from the San Francisco County Superior Court on 18 June 6, 2016; a sanctions award against Yan in the amount of $35,004.71 from the Ninth Circuit 19 20 Court of Appeals on June 14, 2014; and several costs awards. These various awards, judgments 21 and sanctions are collectively referred hereafter as the “Judgments.” Including accrued interest 22 thereon, Yan currently owes more than $1,000,000.00 on the Judgments. 23 11. The Judgments reflects Yan’s malicious and vexatious conduct enabled by defendants’ actions. 24 12. 7. On or about November 15, 2013,: Yan transferred his ownership of the real property 25 commonly known as 547 23rd Avenue, San Francisco, California to 547 23rd Avenue, LLC. 26 Also on or about November 15, 2013,, and Yan transferred his membership interestsinterest in 27 28 Farella Braun + Martel LLP 4 41312\14641025.114654597.2 235 Montgomery Street, 17th Floor VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD - San Francisco, California 94104 (415) 954-4400 Case No. CGC-17 -556769 1 547 23rd Avenue, LLC (collectively, the “Property”) to Defendants. Those transfers were made 2 for less than reasonably equivalent value and(collectively, the “November 2013 Transfers”). 3 FIRST CAUSE OF ACTION (Damages for Fraudulent Transfers) 4 13. Plaintiffs incorporate the allegations of each and every paragraph above as though fully set 5 forth here. 6 14. Plaintiffs have a right to payment from Yan pursuant to the Judgments. 7 8 15. Yan transferred the Property to Defendants pursuant to the November 2013 Transfers. 9 16. Plaintiffs were creditors of Yan at the time of the November 2013 Transfers. 10 17. The November 2013 Transfers were made for less than reasonably equivalent value. 11 18. The November 2013 Transfers were made with the intent to hinder, delay, and defraud existing 12 and future creditors of Yan, including but not limited to Plaintiffs. Further, at the time of the 13 aforesaid transfers, 14 19. The November 2013 Transfers were made while Yan was either insolvent or the transfers 15 rendered him insolvent. That the transfers were made with intent to hinder, delay, and defraud 16 creditors and were made for less than reasonably equivalent value when Yan was insolvent was 17 determined after a trial in San Francisco Superior Court case no. CGC-14-537574. 18 8. The value of the property transferred by Yan as aforesaid in fraud of creditors is 19 greatly in excess of the amounts due from Yan to Plaintiffs under the Judgments. Pursuant to 20 California Civil Code § 3439.08, Plaintiffs are entitled to recover as money damages the lesser of 21 value of the transferred real properties amount due on the Judgments. 22 20. Plaintiffs were harmed as a result of the November 2013 Transfers. 23 21. The conduct of Yan and the Defendants was a substantial factor in causing Plaintiffs harm 24 pursuant to the November 2013 Transfers. 25 9. Plaintiffs are thus entitled to the amount due on the Judgments from Defendants. 26 10. The actions of Defendants as aforesaid were willful, wanton, and fraudulent and 27 thus warrant an award of punitive damages in an amount to be determined, but in no event less 28 Farella Braun + Martel LLP 5 41312\14641025.114654597.2 235 Montgomery Street, 17th Floor VERIFIED COMPLAINT FOR FRAUDULENT TRANSFERS AND CONSPIRACY TO DEFRAUD - San Francisco, California 94104 (415) 954-4400 Case No. CGC-17 -556769 1 than $100,000.00. 2 III. SECOND CAUSE OF ACTION (Conspiracy to DefraudEngage in Fraudulent Transfer) 3 22. 11. Plaintiffs incorporate by referencethe allegations of each and every paragraph above as 4 though fully set forth the allegations of 1 through 10, inclusivehere. 5 12. Unbeknownst to Plaintiffs, on or about November 15, 2013, Defendants and Yan 6 entered into a conspiracy pursuant to which Yan would make the aforementioned transfers to 7 Defendants in order to hinder, delay, and defraud creditors then existing and future creditors such 8 as Plaintiffs. 9 13. In furtherance of such conspiracy, Yan made the transfers to Defendants as 10 aforesaid and Defendants accepted those transfers as part and parcel of the conspiracy. 11 23. Defendants were aware that Yan intended to engage in the November 2013 Transfers to hinder, 12 delay, and defraud Yan’s creditors (including Plaintiffs). 13 24. Defendants agreed with Yan to engage in the November 2013 Transfers to hinder, delay, and 14 15 defraud Yan’s creditors (including Plaintiffs). 16 25. Defendants acted in concert and conspired with Yan in engaging in the November 2013 17 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs). 18 26. Plaintiffs were harmed by Defendants’ conspiracy with Yan to engage in the November 19 2013 Transfers to hinder, delay, and defraud Yan’s creditors (including Plaintiffs). 20 27. 14. By reason of the conspiracy and Defendants' knowing and voluntary participation therein 21 in doing the acts described above’ conspiracy with Yan to hinder, delay, and defraud Yan’s 22 creditors (including Plaintiffs) pursuant to the November 2013 Transfers, Plaintiffs have 23 been damaged inby at least the amount of the Judgments which they otherwise would have 24 been able to collect from Yan but for the aforementioned transfers. As such,. 25 28. Defendants are jointly and severally liable for the damages resulting from such conspiracy