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GLYNN & FINLEY, LLP
CLEMENT L. GLYNN, Bar No. 57117
MORGAN K. LOPEZ, Bar No. 215513
One Walnut Creek Center
ELECTRONICALLY
100 Pringle Avenue, Suite 500
Walnut Creek, CA 94596 F I L E D
Superior Court of California,
Telephone: (925) 210-2800 County of San Francisco
Facsimile: (925) 945-1975
11/14/2019
Attorneys for Cross-Defendant/Plaintiff Clerk of the Court
BY: RONNIE OTERO
Shirley Hwang Deputy Clerk
SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE CITY AND COUNTY OF SAN FRANCISCO
10
Lead Case No. CGC-10-503332
11 COMMONWEALTH LAND TITLE (Consolidated for all purposes with
INSURANCE COMPANY, CGC-11-512102)
12
Plaintiff, NOTICE OF ENTRY OF ORDER
13 AMENDING JUDGMENT TO ADD
vs. ADDITIONAL JUDGMENT DEBTORS
14 AND VOIDING CERTAIN TRANSFERS
FEDEX OFFICE AND PRINT SERVICES PURSUANT TO CIVIL CODE 8 3439 ET
15 INC.; WINSTON LUM; KAUSHAL ~SR
NIROULA; JAY CHANDRAKANT
16 SHAH; ELVIA PALOMINO; MORAD
AFRAIMI; MELVIN LEE EMERICH;
17 MARTINI CHNOOGLE; GRACHELLE Original Trial Date: August 7, 2017
LANGUBAN; MERCHANTS BONDING
18 COMPANY, and DOES 1-24,
19 Defendants.
20
SHIRLEY S. HWANG,
CASE NO. CGC-11-512102
Plaintiff,
22
vs.
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FEDEX OFFICE AND PRINT SERVICES
24 INC., WINSTON LUM, KAUSHAL
NIROULA, JAY CHANDRAKANT SHAH, )
25 MELVIN LEE EMERICH, GRACHELLE
LANGUBAN, and MARTINI &
26 CHNOOGLE, and DOES 1-50,
27 Cross-Defendants.
28
NOTICE OF ENTRY OF ORDER AMEND JDGMT. TO ADD ADDT'L JDGMT DEBTORS
I TO PARTIES AND THEIR ATTORNEYS OF RECORD:
PLEASE TAKE NOTICE that on November 13, 2019, the above-entitled Court entered
the attached Order Amending Judgment to Add Additional Judgment Debtors and Voiding
Certain Transfers Pursuant to Civil Code $ 3439 Et Seq.
Dated: November 14, 2019 GLYNN & FINLEY, LLP
CLEMENT L. GLYNN
MORGAN K. LOPEZ
One Walnut Creek Center
100 Pringle Avenue, Suite 500
Walnut Creek, CA 94596
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NOTICE OF ENTRY OF ORDER AMEND JDGMT. TO ADD ADDT'L JDGMT DEBTORS
~PIC ft mp pg g
jrj; EF,B
SuInnror Courr nf Carr fomia
t:oun(r of San FrnncIrco
NOV 13.2019
SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE CITY AND COUNTY OF SAN FRANCISCO
Lead Case No. CGC-10-503332
8 COMMONWEALTH LAND TITLE (Consolidated for all purposes with
INSURANCE COMPANY, CGC-11-512102)
9
Plaintiff, ORDER AMENDING JUDGMENT TO
10 ADD ADDITIONAL JUDGMENT
vs DEBTORS AND VOIDING CERTAIN
11 TRANSFERS PURSUANT TO CIVIL
FEDEX OFFICE AND PRINT SERVICES CODE 8 3439 ET SEO.
INC.; WINSTON LUM; KAUSHAL
NIROULA; IAY CHANDRAKANT
SHAH; ELVIA PALOMNO; MORAD Date: October 1,2019
AFRAIMI; MELVIN LEE EMERICH; Time: 10:00 a.m.
14 MARTIM CHNOOGLE; GRACHELLE Dept.: 303
LANGUBAN; MERCHANTS BONDING
15 COMPANY, and DOES 1-24,
16 Defendants. Original Trial Date: August 7, 2017
17
SHIRLEY S. HWANG, )
18 )
Plaintitf, )
FEDEX OFFICE AND PRINT SERVICES ) CASE NO. CGC-11-512102
INC., WINSTON LUM, KAUSHAL )
NIROULA, JAY CHANDRAKANT SHAH, )
MELVIN LEE EMERICH, GRACHELLE
LANGUBAN, and MARTINI &
CHNOOGLE, and DOES 1-50, )
24 Cross-Defendants.
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[ERQIEssED] QRDER AMENDING JDGMNT To ADD JDGMNT DEBTQRs AND YQIDING TRANsFERs
On October 1, 2019, at 10:00 a.m., Plaintiff Shirley Hwang's motion to amend the
judgment to add judgment debtors came on regularly for hearing before the Honorable Newton J.
Lam. Plaintiff Shirley Hwang was represented by her counsel of record. EZRESOURCE Inc.,
Michael Flores, and Investment Property Management LLC ("IPM") (collectively the "Flores
Entities" ) were represented by Jason Estavillo, Esq. Third parties Chandrakant and Mrudula
Shah were represented by Craig Bassett, Esq., who is also Jay Shah's counsel of record.
Having considered the papers filed and arguments presented in support of and in
opposition to the motion, having heard argument and good cause appearing, it is hereby
ORDERED:
10 1. Based on the evidence presented (i) in the related criminal action, San Francisco
Superior Court Case No. 10009193 (the "Criminal Action"), (ii) during tiial and post-judgment
12 proceedings in this action, and (iii) with Plaintiff s moving papers — of which the Court takes
13 Judicial Notice pursuant to Evidence Code, section 453 — Plaintiff has established that the
14 following entities are alter egos of defendant Jay Shah and were created and/or controlled for the
15 purpose of concealing and/or laundering stolen funds: Martini & Chnoogle, Inc., M&K
16 Properties, LLC, and Megan & Kasi Properties, LLC (collectively the "Judgment Debtor
17 Entities"). The court finds there is such a "...unity of interest and ownership between Mr. Shaw
18 and the "Judgment Debtor Entities" that the separate personalities of the individual and the
19 corporation no longer exists..." And... "the facts are such that adherence to the fiction of the
20 separate existence of the corporation would sanction a fiaud or promote injustice." See Misik V.
21 D'Arco (2011) 197 Cal.App.4~ 1065,1073 Accordingly, the Court orders, pursuant to Code of
22 Civil Procedure, section 187, that the judgment in this action be amended to add each of these
23 entities as an addifional judgment debtor,
24 2. Plaintiff presented uncontroverted evidence establishing that following the
25 commission of the criminal conspiracy the Judgment Debtor Entities each owned one or more of
26 the following parcels of real properly, which had been purchased with ill-gotten mortgage funds,
27 as more fully set forth the decision of the First Court of Appeal, Division 2, affinning defendant
28 Jay Shah's criminal conviction (dated July 8, 2016 and reported at 2016 WL 3766427): 530
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[PRO~+] ORDER AMENDING JDGMNT TO ADD JDGMNT DEBTORS AND VOIDING TRANSFERS
1 Adams Ave., Los Banos, CA; 2071 Genoa Court, Los Banos, CA; 317 Crescent Drive, Los
2 Banos, CA, and; 732 Bluff Drive, Los Banos, CA.
3 Based on the factual record in the Criminal Action, of which the Court takes judicial
4 notice, pursuant to Evidence Code, section 452(d), including but not limited to the Preliminary
5 Injunction, dated November 4, 2010 (prohibiting defendant Shah and those acting in concert with
6 him Irom transferring, selling, or encumbering certain of the properties identified herein), as well
7 as the evidence presented by Plaintiff in this acfion, the Court finds that the Judgment Debtor
8 Entities'ransfers of these parcels of real property were voidable pursuant to both the actual and
9 constructive &aud tests set forth in Ca. Civil Code section 53439.04. The Plaintiff had
10 demonstrated at trial that Mr. Flores was employed and had acted ss an agent for Mr. Shaw in his
11 Los Banos properties. The court finds that the network of entities that Mr. Shaw developed in his
12 criminal scheme to conceal and distribute the proceeds of his criminal enterprise in People v.
13 Shaw was in use during the civil proceedings following his criminal conviction. As set forth in
14 People v. Shaw stolen funds were used to purchase the properties at issue here. In the bifurcated
15 punitive damages portion of the civil trial Mr. Shaw testified... "They just had me sign a bunch
16 of documents because I owed Mr. Flores money, so — and he'd done a lot of work on the
17 property. So I just signed over the — otherwise the properties were going to be lost, so I signed
18 them over. ~e took over the properties because I was going to lose them. I couldn't manage
19 them because I was in prison, so he'd done a lot of work; he was paying the bills. And I just — the
20 lawyers did all the paperwork, and I signed it. I don't know if they have a purchase and sale or
21 what. I don't remember. (Transcript of Court Trial voL 7; pg.765 lines 6-16)
22 The court finds that the circumstances of the Judgment Debtor Entities property transfers
23 to third party Michael Flores, EZ Resource, and Investment Properly Management, LLC at the
24 direction of Mr. Shaw were not protected tmnsfers set forth in Ca. Civil Code section $ 3439.08
25 "Transfer that are not voidable". The transfers by Mr. Shaw through his alter egos, collectively
26 "Judgment Debtor Entities", to EZRESOURCE Inc., Michael Flores, and Investment Property
27 Management LLC ("IPM") (collectively the "Flores Entities" ) was a continuation of his efforts to
28 place his "assets" beyond his creditors, To allow otherwise would be to reward his original
[IiRQEQSED) ORDER AMENDING JDGMNT TO ADD JDGMNT DEBTORS AND VOIDING TRANSFERS
I criminal conduct in acquiring the funds to purchase the properties that was transferred.
2 Accordingly, pursuant to the principles of Civil Code section 3439.07(a)(1) "Avoidance of the
3 transfer or obligation to the extent necessary to satisfy the creditor's claim;" Civil Code section
4 3439.07(a)(3)A "An injunction against further disposition by the debtor or a transferee, or both of
5 the asset transferred..." as well as the Court's inherent power to equitably enforce its judgments,
6 the Court declares the foHowing trausfers null and void:
(a) M dc K Properties LLC's transfer to IPM of 530 Adams Ave. Los Banos,
8 CA, recorded on or about October 17, 2016 (Merced County Recorder's Document
9 Number 2016035393), and any transfer, sale, or encumbrance occurring subsequent
10 thereto;
(b) Martini & Chnoogle, Inc.'s transfer to Elvia Palomino and Maria De Los
12 Angeles Palomino of 2071 Genoa Court, Los Banos, CA, recorded on or about November
13 9, 2009 (Merced County Recorder's Document Number 2009-055171); and any transfer
14 sale, or encumbrance occurring subsequent thereto;
15 (c) Megan and Kasi Properties LLC's transfer of 317 Crescent Drive to IPM,
16 recorded on or about October 17, 2016 (Merced County Recorder's Document Number
17 2016035394), and any transfer, sale, or encutnbrance occurring subsequent thereto;
18 (d) Megan and Kasi Properties LLC's transfer of 732 Bluff Drive to IPM,
19 recorded on or about October 17, 2016 (Merced County Recorder's Document Number
20 2016035395), and any transfer, sale, or encumbrance occurring subsequent thereto.
21 3 Plaintiff produced uncontroverted evidence establishing that defendant Shah's
22 purported transfer of real property located at 659 S. 15th Street, San Jose, CA, to IPM,
23 recorded on or about January 17, 2018 (Santa Clara County Recorder's Document
24 Number 23849722), was voidable under Civil Code section 3439.04 and the Court
25 therefore voids that transaction aud any transfer, sale, or encumbrance occurring
26 subsequent thereto.
27 Dated: Il ) Ia) 3 I
l Newton J. Lam
28 Judge of the Superior Court
[FI~glI ORDER AMENDING JDGMNT TO ADD IDGMNT DEBTORS AND VOIDING TRANSFERS
SUPERIOR COURT OF CALIFORNIA
County of San Francisco
COMMONWEALTH LAND TITLE INSURANCE Case Number: CGC-10-503332
COMPANY, (Consolidated for all purposes with
Plaintiff, CGC-11-512102)
vs,
FEDEX OFFICE AND PRINT SERVICES INC.; CERTIFICATE OF MAILING
WINSTON LUM; KAUSHAL NIROULA; JAY (CCP 1013a (4) )
CHANDRAKANT SHAH; ELVIA PALOMINO;
'ORAD AFRAIMI; MELVIN LEE EMERICH;
MARTINI CHNOOGLE; GRACHELLE
LANGUBAN; MERCHANTS BONDING
COMPANY, AND DOES 1-24,
Defendants.
AND CONSOLIDATED ACTION
I, Felicia Green, a Deputy Clerk of the Superior Court of the County of San
Francisco, certify that I am not a party to the within action.
On November .13, 2019, I served the attached ORDER OVERRULING CCP
170.6'HALLENGE
& ORDER AMENDING JUDGMENT TO ADD ADD1TIONAL JUDGMENT
DEBTORS AND VOIDING CERTAIN TRANSERS PURSUANT TO CIVIL CODE 3439 ET SEQ., by
placing a copy thereof in a sealed envelope, addressed as follows:
Clement L. Glynn, Esq. Gene V. Halavanau, Esq.
Morgan K, Lopez, Esq. HALAVANAU LAW OFFICE
GLYNN & FINLEY, LLP 55 Francisco Street, Suite 403
One Walnut Creek Center, Suite 500 San Francisco, CA 94133
100 Pringle Avenue
Walnut Creek, CA 94956 Craig J. Bassett, Esq.
25 W. First Street
Howard P. Brody Morgan Hill, CA 95037-4559
FIDELITY NATIONAL LAW GROUP
915 Wilshire Blvd., Suite 2100 Edward A, Kunnes
Los Angeles, CA 90017 100 N. Wiget Lane, Suite 150
Walnut Creek, CA 94598
Scott D. Long Jason W. Estavillo
FIDELITY NATIONAL LAW GROUP LAW OFFICE OF JASON W. ESTAVILLO, PC
1550 Parkside Drive, Suite 300 1330 Broadway, Suite 501
Walnut Creek, CA 94596 San Francisco, CA 94612
and, I then placed the sealed envelopes in the outgoing mail at 400 McAllister Street, San Francisco,
CA. 94102 on the date indicated above for collection, attachment of required prepaid postage, and
~
mailing on that date following standard court practices.
Dated: November 13, 2019
By: ~t8g
Felicia Green, Deputy Clerk III
Lead Case No. CGC-10-503332
(consolidated for all purposes with CGC-11-512102)
PROOF OF SERVICE BY U.S. MAIL
I, Gina M. Bentlev, the undersigned, hereby certify and declare under penalty of
perjury that the following statements are true and correct:
l. I am over the age of 18 years and am not a party to the within cause.
2. My business address is One Walnut Creek Center, 100 Pringle Avenue,
Suite 500, Walnut Creek, CA 94596.
3. I am familiar with my employer's mail collection and processing practices;
know that said mail is collected and deposited with the United States Postal Service on the same
10 day it is deposited in interoffice mail; and know that postage thereon is fully prepaid.
4. Following said practice, on November 14, 2019 I served a true and correct
12 copy of the attached document entitled exactly:
13 NOTICE OF ENTRY OF ORDER AMENDING JUDGMENT TO ADD
ADDITIONAL JUDGMENT DEBTORS AND VOIDING CERTAIN
14 TRANSFERS PURSUANT TO CIVIL CODE It 3439 ET SEQ.
15 by placing it in an addressed, sealed envelope and depositing it in regularly maintained
16 interoffice mail to the following:
17 Craig Jay Bassett Yauheni V. Halavanau
Attorney at Law Law Offices of Gene Halavanau
18 25 W. First Street 55 Francisco Street, Suite 403
Morgan Hill, CA 95037 San Francisco, CA 94133-2115
19 T: 408-779-0007; F: 408-778-6005 T: 415-692-5301; F: 415-692-8412
Email: cbassett@garlic.corn Email: gene@halavanau.corn
20 Attorney for Defendant Jay Chandrakant Association of Counsel for Defendant
Shah and Third Parties Chandrakant Shah Jay Chandrakant Shah
21 and Mrudula Shah
22 Jason W. Estavillo,
David I. Blumenfeld
23 Law Offices of Jason W. Estavillo, P.C.
1330 Broadway, Suite 501
24 Oakland, CA 94612
T: 510-982-3001; F: 510-982-3002
25 Email: jason@estavillolaw.corn
david estavillolaw.corn
26 Attorneys for Third Parties Flores et al.
27 Executed this 14th day of Noveinber. 1 t Walnu e
Az "
28 Ginaal. Bentley
(J
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PROOF OF SERVICE
Preview
GLYNN & FINLEY, LLP CLEMENT L. GLYNN, Bar No. 57117 MORGAN K. LOPEZ, Bar No. 215513 One Walnut Creek Center ELECTRONICALLY 100 Pringle Avenue, Suite 500 Walnut Creek, CA 94596 F I L E D Superior Court of California, Telephone: (925) 210-2800 County of San Francisco Facsimile: (925) 945-1975 11/14/2019 Attorneys for Cross-Defendant/Plaintiff Clerk of the Court BY: RONNIE OTERO Shirley Hwang Deputy Clerk SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE CITY AND COUNTY OF SAN FRANCISCO 10 Lead Case No. CGC-10-503332 11 COMMONWEALTH LAND TITLE (Consolidated for all purposes with INSURANCE COMPANY, CGC-11-512102) 12 Plaintiff, NOTICE OF ENTRY OF ORDER 13 AMENDING JUDGMENT TO ADD vs. ADDITIONAL JUDGMENT DEBTORS 14 AND VOIDING CERTAIN TRANSFERS FEDEX OFFICE AND PRINT SERVICES PURSUANT TO CIVIL CODE 8 3439 ET 15 INC.; WINSTON LUM; KAUSHAL ~SR NIROULA; JAY CHANDRAKANT 16 SHAH; ELVIA PALOMINO; MORAD AFRAIMI; MELVIN LEE EMERICH; 17 MARTINI CHNOOGLE; GRACHELLE Original Trial Date: August 7, 2017 LANGUBAN; MERCHANTS BONDING 18 COMPANY, and DOES 1-24, 19 Defendants. 20 SHIRLEY S. HWANG, CASE NO. CGC-11-512102 Plaintiff, 22 vs. 23 FEDEX OFFICE AND PRINT SERVICES 24 INC., WINSTON LUM, KAUSHAL NIROULA, JAY CHANDRAKANT SHAH, ) 25 MELVIN LEE EMERICH, GRACHELLE LANGUBAN, and MARTINI & 26 CHNOOGLE, and DOES 1-50, 27 Cross-Defendants. 28 NOTICE OF ENTRY OF ORDER AMEND JDGMT. TO ADD ADDT'L JDGMT DEBTORS I TO PARTIES AND THEIR ATTORNEYS OF RECORD: PLEASE TAKE NOTICE that on November 13, 2019, the above-entitled Court entered the attached Order Amending Judgment to Add Additional Judgment Debtors and Voiding Certain Transfers Pursuant to Civil Code $ 3439 Et Seq. Dated: November 14, 2019 GLYNN & FINLEY, LLP CLEMENT L. GLYNN MORGAN K. LOPEZ One Walnut Creek Center 100 Pringle Avenue, Suite 500 Walnut Creek, CA 94596 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - I- NOTICE OF ENTRY OF ORDER AMEND JDGMT. TO ADD ADDT'L JDGMT DEBTORS ~PIC ft mp pg g jrj; EF,B SuInnror Courr nf Carr fomia t:oun(r of San FrnncIrco NOV 13.2019 SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE CITY AND COUNTY OF SAN FRANCISCO Lead Case No. CGC-10-503332 8 COMMONWEALTH LAND TITLE (Consolidated for all purposes with INSURANCE COMPANY, CGC-11-512102) 9 Plaintiff, ORDER AMENDING JUDGMENT TO 10 ADD ADDITIONAL JUDGMENT vs DEBTORS AND VOIDING CERTAIN 11 TRANSFERS PURSUANT TO CIVIL FEDEX OFFICE AND PRINT SERVICES CODE 8 3439 ET SEO. INC.; WINSTON LUM; KAUSHAL NIROULA; IAY CHANDRAKANT SHAH; ELVIA PALOMNO; MORAD Date: October 1,2019 AFRAIMI; MELVIN LEE EMERICH; Time: 10:00 a.m. 14 MARTIM CHNOOGLE; GRACHELLE Dept.: 303 LANGUBAN; MERCHANTS BONDING 15 COMPANY, and DOES 1-24, 16 Defendants. Original Trial Date: August 7, 2017 17 SHIRLEY S. HWANG, ) 18 ) Plaintitf, ) FEDEX OFFICE AND PRINT SERVICES ) CASE NO. CGC-11-512102 INC., WINSTON LUM, KAUSHAL ) NIROULA, JAY CHANDRAKANT SHAH, ) MELVIN LEE EMERICH, GRACHELLE LANGUBAN, and MARTINI & CHNOOGLE, and DOES 1-50, ) 24 Cross-Defendants. 25 26 27 28 [ERQIEssED] QRDER AMENDING JDGMNT To ADD JDGMNT DEBTQRs AND YQIDING TRANsFERs On October 1, 2019, at 10:00 a.m., Plaintiff Shirley Hwang's motion to amend the judgment to add judgment debtors came on regularly for hearing before the Honorable Newton J. Lam. Plaintiff Shirley Hwang was represented by her counsel of record. EZRESOURCE Inc., Michael Flores, and Investment Property Management LLC ("IPM") (collectively the "Flores Entities" ) were represented by Jason Estavillo, Esq. Third parties Chandrakant and Mrudula Shah were represented by Craig Bassett, Esq., who is also Jay Shah's counsel of record. Having considered the papers filed and arguments presented in support of and in opposition to the motion, having heard argument and good cause appearing, it is hereby ORDERED: 10 1. Based on the evidence presented (i) in the related criminal action, San Francisco Superior Court Case No. 10009193 (the "Criminal Action"), (ii) during tiial and post-judgment 12 proceedings in this action, and (iii) with Plaintiff s moving papers — of which the Court takes 13 Judicial Notice pursuant to Evidence Code, section 453 — Plaintiff has established that the 14 following entities are alter egos of defendant Jay Shah and were created and/or controlled for the 15 purpose of concealing and/or laundering stolen funds: Martini & Chnoogle, Inc., M&K 16 Properties, LLC, and Megan & Kasi Properties, LLC (collectively the "Judgment Debtor 17 Entities"). The court finds there is such a "...unity of interest and ownership between Mr. Shaw 18 and the "Judgment Debtor Entities" that the separate personalities of the individual and the 19 corporation no longer exists..." And... "the facts are such that adherence to the fiction of the 20 separate existence of the corporation would sanction a fiaud or promote injustice." See Misik V. 21 D'Arco (2011) 197 Cal.App.4~ 1065,1073 Accordingly, the Court orders, pursuant to Code of 22 Civil Procedure, section 187, that the judgment in this action be amended to add each of these 23 entities as an addifional judgment debtor, 24 2. Plaintiff presented uncontroverted evidence establishing that following the 25 commission of the criminal conspiracy the Judgment Debtor Entities each owned one or more of 26 the following parcels of real properly, which had been purchased with ill-gotten mortgage funds, 27 as more fully set forth the decision of the First Court of Appeal, Division 2, affinning defendant 28 Jay Shah's criminal conviction (dated July 8, 2016 and reported at 2016 WL 3766427): 530 - I- [PRO~+] ORDER AMENDING JDGMNT TO ADD JDGMNT DEBTORS AND VOIDING TRANSFERS 1 Adams Ave., Los Banos, CA; 2071 Genoa Court, Los Banos, CA; 317 Crescent Drive, Los 2 Banos, CA, and; 732 Bluff Drive, Los Banos, CA. 3 Based on the factual record in the Criminal Action, of which the Court takes judicial 4 notice, pursuant to Evidence Code, section 452(d), including but not limited to the Preliminary 5 Injunction, dated November 4, 2010 (prohibiting defendant Shah and those acting in concert with 6 him Irom transferring, selling, or encumbering certain of the properties identified herein), as well 7 as the evidence presented by Plaintiff in this acfion, the Court finds that the Judgment Debtor 8 Entities'ransfers of these parcels of real property were voidable pursuant to both the actual and 9 constructive &aud tests set forth in Ca. Civil Code section 53439.04. The Plaintiff had 10 demonstrated at trial that Mr. Flores was employed and had acted ss an agent for Mr. Shaw in his 11 Los Banos properties. The court finds that the network of entities that Mr. Shaw developed in his 12 criminal scheme to conceal and distribute the proceeds of his criminal enterprise in People v. 13 Shaw was in use during the civil proceedings following his criminal conviction. As set forth in 14 People v. Shaw stolen funds were used to purchase the properties at issue here. In the bifurcated 15 punitive damages portion of the civil trial Mr. Shaw testified... "They just had me sign a bunch 16 of documents because I owed Mr. Flores money, so — and he'd done a lot of work on the 17 property. So I just signed over the — otherwise the properties were going to be lost, so I signed 18 them over. ~e took over the properties because I was going to lose them. I couldn't manage 19 them because I was in prison, so he'd done a lot of work; he was paying the bills. And I just — the 20 lawyers did all the paperwork, and I signed it. I don't know if they have a purchase and sale or 21 what. I don't remember. (Transcript of Court Trial voL 7; pg.765 lines 6-16) 22 The court finds that the circumstances of the Judgment Debtor Entities property transfers 23 to third party Michael Flores, EZ Resource, and Investment Properly Management, LLC at the 24 direction of Mr. Shaw were not protected tmnsfers set forth in Ca. Civil Code section $ 3439.08 25 "Transfer that are not voidable". The transfers by Mr. Shaw through his alter egos, collectively 26 "Judgment Debtor Entities", to EZRESOURCE Inc., Michael Flores, and Investment Property 27 Management LLC ("IPM") (collectively the "Flores Entities" ) was a continuation of his efforts to 28 place his "assets" beyond his creditors, To allow otherwise would be to reward his original [IiRQEQSED) ORDER AMENDING JDGMNT TO ADD JDGMNT DEBTORS AND VOIDING TRANSFERS I criminal conduct in acquiring the funds to purchase the properties that was transferred. 2 Accordingly, pursuant to the principles of Civil Code section 3439.07(a)(1) "Avoidance of the 3 transfer or obligation to the extent necessary to satisfy the creditor's claim;" Civil Code section 4 3439.07(a)(3)A "An injunction against further disposition by the debtor or a transferee, or both of 5 the asset transferred..." as well as the Court's inherent power to equitably enforce its judgments, 6 the Court declares the foHowing trausfers null and void: (a) M dc K Properties LLC's transfer to IPM of 530 Adams Ave. Los Banos, 8 CA, recorded on or about October 17, 2016 (Merced County Recorder's Document 9 Number 2016035393), and any transfer, sale, or encumbrance occurring subsequent 10 thereto; (b) Martini & Chnoogle, Inc.'s transfer to Elvia Palomino and Maria De Los 12 Angeles Palomino of 2071 Genoa Court, Los Banos, CA, recorded on or about November 13 9, 2009 (Merced County Recorder's Document Number 2009-055171); and any transfer 14 sale, or encumbrance occurring subsequent thereto; 15 (c) Megan and Kasi Properties LLC's transfer of 317 Crescent Drive to IPM, 16 recorded on or about October 17, 2016 (Merced County Recorder's Document Number 17 2016035394), and any transfer, sale, or encutnbrance occurring subsequent thereto; 18 (d) Megan and Kasi Properties LLC's transfer of 732 Bluff Drive to IPM, 19 recorded on or about October 17, 2016 (Merced County Recorder's Document Number 20 2016035395), and any transfer, sale, or encumbrance occurring subsequent thereto. 21 3 Plaintiff produced uncontroverted evidence establishing that defendant Shah's 22 purported transfer of real property located at 659 S. 15th Street, San Jose, CA, to IPM, 23 recorded on or about January 17, 2018 (Santa Clara County Recorder's Document 24 Number 23849722), was voidable under Civil Code section 3439.04 and the Court 25 therefore voids that transaction aud any transfer, sale, or encumbrance occurring 26 subsequent thereto. 27 Dated: Il ) Ia) 3 I l Newton J. Lam 28 Judge of the Superior Court [FI~glI ORDER AMENDING JDGMNT TO ADD IDGMNT DEBTORS AND VOIDING TRANSFERS SUPERIOR COURT OF CALIFORNIA County of San Francisco COMMONWEALTH LAND TITLE INSURANCE Case Number: CGC-10-503332 COMPANY, (Consolidated for all purposes with Plaintiff, CGC-11-512102) vs, FEDEX OFFICE AND PRINT SERVICES INC.; CERTIFICATE OF MAILING WINSTON LUM; KAUSHAL NIROULA; JAY (CCP 1013a (4) ) CHANDRAKANT SHAH; ELVIA PALOMINO; 'ORAD AFRAIMI; MELVIN LEE EMERICH; MARTINI CHNOOGLE; GRACHELLE LANGUBAN; MERCHANTS BONDING COMPANY, AND DOES 1-24, Defendants. AND CONSOLIDATED ACTION I, Felicia Green, a Deputy Clerk of the Superior Court of the County of San Francisco, certify that I am not a party to the within action. On November .13, 2019, I served the attached ORDER OVERRULING CCP 170.6'HALLENGE & ORDER AMENDING JUDGMENT TO ADD ADD1TIONAL JUDGMENT DEBTORS AND VOIDING CERTAIN TRANSERS PURSUANT TO CIVIL CODE 3439 ET SEQ., by placing a copy thereof in a sealed envelope, addressed as follows: Clement L. Glynn, Esq. Gene V. Halavanau, Esq. Morgan K, Lopez, Esq. HALAVANAU LAW OFFICE GLYNN & FINLEY, LLP 55 Francisco Street, Suite 403 One Walnut Creek Center, Suite 500 San Francisco, CA 94133 100 Pringle Avenue Walnut Creek, CA 94956 Craig J. Bassett, Esq. 25 W. First Street Howard P. Brody Morgan Hill, CA 95037-4559 FIDELITY NATIONAL LAW GROUP 915 Wilshire Blvd., Suite 2100 Edward A, Kunnes Los Angeles, CA 90017 100 N. Wiget Lane, Suite 150 Walnut Creek, CA 94598 Scott D. Long Jason W. Estavillo FIDELITY NATIONAL LAW GROUP LAW OFFICE OF JASON W. ESTAVILLO, PC 1550 Parkside Drive, Suite 300 1330 Broadway, Suite 501 Walnut Creek, CA 94596 San Francisco, CA 94612 and, I then placed the sealed envelopes in the outgoing mail at 400 McAllister Street, San Francisco, CA. 94102 on the date indicated above for collection, attachment of required prepaid postage, and ~ mailing on that date following standard court practices. Dated: November 13, 2019 By: ~t8g Felicia Green, Deputy Clerk III Lead Case No. CGC-10-503332 (consolidated for all purposes with CGC-11-512102) PROOF OF SERVICE BY U.S. MAIL I, Gina M. Bentlev, the undersigned, hereby certify and declare under penalty of perjury that the following statements are true and correct: l. I am over the age of 18 years and am not a party to the within cause. 2. My business address is One Walnut Creek Center, 100 Pringle Avenue, Suite 500, Walnut Creek, CA 94596. 3. I am familiar with my employer's mail collection and processing practices; know that said mail is collected and deposited with the United States Postal Service on the same 10 day it is deposited in interoffice mail; and know that postage thereon is fully prepaid. 4. Following said practice, on November 14, 2019 I served a true and correct 12 copy of the attached document entitled exactly: 13 NOTICE OF ENTRY OF ORDER AMENDING JUDGMENT TO ADD ADDITIONAL JUDGMENT DEBTORS AND VOIDING CERTAIN 14 TRANSFERS PURSUANT TO CIVIL CODE It 3439 ET SEQ. 15 by placing it in an addressed, sealed envelope and depositing it in regularly maintained 16 interoffice mail to the following: 17 Craig Jay Bassett Yauheni V. Halavanau Attorney at Law Law Offices of Gene Halavanau 18 25 W. First Street 55 Francisco Street, Suite 403 Morgan Hill, CA 95037 San Francisco, CA 94133-2115 19 T: 408-779-0007; F: 408-778-6005 T: 415-692-5301; F: 415-692-8412 Email: cbassett@garlic.corn Email: gene@halavanau.corn 20 Attorney for Defendant Jay Chandrakant Association of Counsel for Defendant Shah and Third Parties Chandrakant Shah Jay Chandrakant Shah 21 and Mrudula Shah 22 Jason W. Estavillo, David I. Blumenfeld 23 Law Offices of Jason W. Estavillo, P.C. 1330 Broadway, Suite 501 24 Oakland, CA 94612 T: 510-982-3001; F: 510-982-3002 25 Email: jason@estavillolaw.corn david estavillolaw.corn 26 Attorneys for Third Parties Flores et al. 27 Executed this 14th day of Noveinber. 1 t Walnu e Az " 28 Ginaal. Bentley (J -1- PROOF OF SERVICE