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I DAVID R. GRTFFTTH, ESQ. (SBN 170172)
JAMESON E.P. SHEEHAN, ESQ. (SBN 327287)
2 GRIFFITH HORN & SHEEHAN, LLP 11/12/2020
1530 Humboldt Road, Suite 3
J Chico, California 9 5928
Telephone: (530) 8 12-1 000
4 Facsimile: (530) 809-1 093
Emails: david@davidgrifhthlaw.com
5 j ameson@griffithandhorn.com
6 Attorneys for Plaintiffs
7
I THE SUPERIOR COURT OF THE STATE OF CALIFORNIA
9 IN AND FOR THE COUNTY OF BUTTE
10 BERTON N. BERTAGNA; ) Case No.: 20CV00531
WADE R. PORTER; )
11 JEREMY M. FUNK; ) DECLARATION OF JEREMY M. FUNK
SEBASTIEN TAMARELLE; ) IN SUPPORT OF APPLICATION FOR RIGHT
t2 B. SCOTT HOOD; ) TO ATTACH ORDER AND ORDER F'OR
ROGER HEYM and ROSANNE HEYM; ) ISSUANCE OF WRIT OF ATTACHMENT
l3 )
Plaintiffs, ) Hearing Date: Decenber 16,2020
t4 ) Time: 9:00 A.M.
VS ) Dept.: 1
15 ) Judge: Hon. Tamara L. Mosbarger
DEL REAL INTERNATIONAL, INC., )
t6 a California corporation, )
dba DEL REAL COMPANY; )
I7 M. MAX DEL REAL, )
aka MATTHEW B. DEL REAL, )
18 aka MATTHEW DEL REAL, )
aka MATTHEV/ M. DEL REAL, )
t9 aka MAX DEL REAL;
AMMERICANN DEVELOPMENT, LLC,
20 a California limited liability company;
AMMERICANN HOLDINGS I, LLC,
2l a California limited liability company;
BzuAN PRITCHARD;
22 NORMAN P. MARSHALL;
DOES I through 50, inclusive,
23
Defendants.
24
25 I, JEREMY M. FLTNK, declare:
26 1 . I am a Plaintiff in this action. I make this Declaration in support of the Application for
27 Right to Attach Order and Order for Issuance of Writ of Attachment filed herein by me and the other
28 plaintiffs in this action against Defendant M. MAX DEL REAL, aka MATTHEW B. DEL REAL, aka
Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 1
I MATTHEW DEL REAL, aka MATTHEW M. DEL REAL, aka MAX DEL REAL (hereinafter referred
2 to herein as "MAX DEL REAL"). I have personal knowledge of the matters stated herein, except as to
J those matters stated on information and belief and would and could testifyto those matters if called upon
4 to do so.
5 Factual Background
6 2. I am informed and believe that in or about April 2018, Defendant MAX DEL REAL, by
7 and through DEL REAL INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and
8 AMMERICANN HOLDINGS I,LLC, at MAX DEL REAL's direction and control, began soliciting
9 investors in Butte County, California such as myself and the other plaintiffs herein with information and
l0 representations made in written Investment Memorandum for the establishment of new cannabis
11 dispensaries under the trade name "Treì' in Redding, California. A true and correct copy of the
L2 lnvestment Memorandum for the Redding, California dispensaries is attached to the Complaint filed
l3 herein on February 20,2020, as Exhibit "1".
I4 3. In or about September 2018, Defendant MAX DEL REAL, by and through DEL REAL
15 INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and AMMERICANN
t6 HOLDINGS I, LLC, at MAX DEL REAL's direction and control, began soliciting investors in Butte
l7 County, California such as myself and the other plaintiffs herein with information and representations
18 made in written Investment Memorandum for the establishment of new cannabis dispensaries under the
T9 trade name "Trez" in Oroville, California. A true and correct copy of the lnvestment Memorandum for
20 the Oroville, California dispensaries is attached to the Complaint filed herein on February 20,2020, as
2I Exhibit "2".
22 4. In or about February 2}l9,Defendant MAX DEL REAL, by and through DEL REAL
23 INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and AMMERICANN
24 HOLDINGS I, LLC, at MAX DEL REAL's direction and control, began soliciting investors in Butte
25 County, California such as myself and the other plaintiffs herein with information and representations
26 made in written Investment Memorandum for the establishment of new cannabis dispensaries under the
ooTnez"
27 trade name in South Lake Tahoe, California. A true and correct copy of the Investment
28 Memorandum for the South Lake Tahoe, California dispensaries is attached to the Complaint filed
Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 2
1 herein on February 20,2020, as Exhibit "3'r.
2 5. I am informed and believe that in or about Ill4ay 2019, Defendant MAX DEL REAL, by
a
J and through DEL REAL INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and
4 AMMERICANN HOLDINGS I,LLC, at MAX DEL REAL's direction and control, began soliciting
5 investors in Butte County, California such as myself and the other plaintiffs herein with information and
6 representations made in written Investment Memorandum for the establishment of new cannabis
7 dispensaries under the trade name "Treì' in Chico, California. A true and correct copy of the Investment
I Memorandum for the Chico, California dispensaries is attached to the Complaint filed herein on
9 February 20,2020, asExhibit "4".
10 The Investment Memorandum for the Redding, Oroville, South Lake Tahoe, and Chico projects
l1 are collectively referred to herein as the "Investment Memorandum".
t2 6. The Investment Memorandum produced and disseminated by Defendant MAX DEL
13 REAL represented that permits for new cannabis dispensaries would initiallybe obtained for Placerville
T4 and South Lake Tahoe in Summer 2019, and would have an estimated valuation of $1,000,000.00 each
15 with estimated projected net profits of $110,625.00 per month in the first year of operation to an
I6 estimated 5240,416.00 per month by the third year. It was represented by Defendant MAX DEL REAL
l7 that for an investment of $25,000, there would be a retum on investment $132,750.00 in 2019 with an
18 estimated three year return on investment of $663,000.00.
I9 7. I am informed and believe that Defendant MAX DEL REAL intended to have the
20 information and representations set forth in the Investment Memorandum reviewed and considered by
21, investors such as myself and the other plaintiffs to induce our investments with Defendants DEL REAL
22 INTERNATIONAL, INC., and BRIAN PRITCHARD, the changes in laws claimed to make obtaining of
23 cannabis dispensary permits achievable, use of invested funds for the projects, the short time frame for
24 the investment to result in high equity positions, and high returns on investments.
25 8. I am informed and believe that Defendant MAX DEL REAL intended that the
26 representations set forth in the Investment Memorandum would be disseminated to the friends, business
27 associates, and family members of me and the other plaintiffs to try and solicit and generate further
28 investments with DEL REAL INTERNATIONAL, INC.
Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment J
1 9. In reliance upon the representations set forth in the Investment Memorandum, I was
2 induced to enter into New Client Agreements and Project Guarantees with Defendant DEL REAL
a
J INTERNATIONAL, INC.
4 10. I invested $29,000.00, summadzed as follows:
5 A. New Client Agreement dated October 8, 2018, for $10,000.00 for a "buy-in" of
6 5olo ownership of the Oroville Project, a true and correct copyof which is attached to the Complaint filed
7 herein on February 20,2020, as Exhibit '(lgtt.
8 B. Project Guarantee dated October 9,2018, for the $10,000.00 obuy-in" of a 5o/o
9 ownership of the Oroville Project, a true and correct copy of which is attached to the Complaint filed
10 herein on February 20,2020, as Exhibit "20tt.
11 C. Project Guarantee dated October9,2018, of $10,000.00 for a "buy-in" of an
t2 additional 5olo ownership of the Oroville Project, a true and correct copy of which is attached to the
13 Complaint filed herein on February 20,2020, as Exhibit "zln.
l4 D. Project Guarantee dated February 5,2019, of $10,000.00, of which I paid
l5 $9,000.00, for a "buy-in" of a 10olo ownership of the Placerville Project and the South l¿ke Tahoe
T6 Project, a true and conect copy of which is attached to the Complaint filed herein on February 20,2020,
t7 as Exhibit '(22tt.
18 11. I am informed and believe that Defendant MAX DEL REAL has diverted, dissipated, and
I9 used the funds invested by me and the other plaintiffs with Defendant DEL REAL INTERNATIONAL,
20 INC., to himself and for his own personal use, and not for the purpose as designated for the respective
2l cannabis dispensary projects, including without limitation, paying cash to his former spouse to purchase
22 and buyout her interest in his personal residence located at 2080 Bidwell Avenue, Chico, California
23 95926.
24 12. I am informed and believe that Defendant MAX DEL REAL has diverted and dissipated
25 the funds and capital of Defendant DEL REAL INTERNATIONAL, INC., for his own benefit, so
26 extremely that the DEL REAL INTERNATIONAL, INC., has become insolvent, unable to pay its
27 creditors, including me and the other plaintiffs herein and its taxes, resulting in DEL REAL
28 INTERNATIONAL, INC., being designated by the State of California as suspended and unable to
Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 4
I conduct lawful business. As such, my and the other plaintiffs' New Client Agreements and Project
2 Guarantees are of no value and worthless.
J As of the date of this declaration, Defendant DEL REAL INTERNATIONAL, INC., is FTB
4 Suspended. A true and correct copy of a printout of the Business Search Information from the website
5 for the California Secretaryof State for Defendant DEL REAL INTERNATIONAL, INC., is attached as
oo1"
6 Exhibit to the Request for Judicial Notice in Support of Application for Right to Attach Order and
7 Order for Writ of Attachment ("Request for Judicial Notice") filed concurrently herewith.
8 Breach of Contract Allesations and Rieht to Judgment against Defendant MAX DEL REAL.
9 13. In the Complaint filed herein on February 20,2020, the other plaintiffs and I alleged as an
l0 alternative cause of action, the sixth cause of action for Breach of Contract against Defendants MAX
11 DEL REAL and DEL REAL INTERNATIONAL,INC., based upon the New Client Agreements and
T2 Project Guarantees.
13 14. I have performed all obligations required of me to be performed under the terms of the
I4 New Client Agreement(s) and Project Guaranty(ees) entered into by me.
15 15. In or about Summer 2019, and thereafter, Defendant DEL REAL INTERNATIONAL,
T6 INC., breached the terms and conditions of the agreements by: 1) failing to obtain any new cannabis
t7 dispensary permits or operations; 2) diverting and dissipating my and the other plaintiffs' investments to
18 its control person MAX DEL REAL, and 3) becoming inactive and FTB Suspended rendering it unable
t9 to lawfully conduct any business.
20 16. At all times relevant herein, Defendant MAX DELREAL is and was the primary
2I shareholder, director, officer, agent, and control person of Defendant DEL REAL INTERNATIONAL,
22 INC. A true and correct copy of the Articles of Incorporation filed on May 25, 2017 , and the Statement
oo3"
23 of lnformation filed on March 6,2020, are attached as Exhibits "2" and to the Request for Judicial
24 Notice filed concurrently herewith.
25 17. I am informed and believe that Defendant MAX DEL REAL has operated DEL REAL
26 INTERNATIONAL, INC., in an undercapitalized condition for the known debts incurred by the
27 corporation to me and the other plaintiffs in the Project Guarantees, and that Defendant MAX DEL
28 REAL diverted, dissipated, and used the funds invested by me and the other plaintiffs with DEL REAL
Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 5
1 INTERNATIONAL, INC., for his own personal use and unjust enrichment to my and the other
2 plaintiffs' detriment, such that the corporate veil of DEL REAL INTERNATIONAL, INC., should be
J pierced with MAX DEL REAL be deemed one and the same as the corporate entity and personally
4 obligated for its debts.
5 18. As a direct and proximate result of the breach by Defendant DEL REAL
6 INTERNATIONAL, INC., I have suffered compensatory damages of $29,000.00, plus accrued pre-
7 judgment interest at the maximum rate of interest allowed by law.
8 The total amount of compensatory damages suffered by me and the other plaintiffs as a resultof
9 the defendant's breach is $357,000.00, plus accrued pre-judgment interest at the maximum rate of
l0 interest allowed by law.
1l Defendant MAX DEL REAL is the alter ego of Defendant DEL REAL INTERNATIONAL,
L2 INC., and is personally and jointly liable for the damages incurred by me and the other plaintifß.
t3 19. From the date of filing of the complaint on February 20,2020, to September 3,2020,
t4 prejudgment interest at the legal rate of 10% simple interest per annum has accrued on the total principal
15 sum due of $357,000.00 from the date of filing of the complaint on February 20,2020 to the present date
t6 in the total amount of $19,268.57 (196 days x dailyrate of $97.81).
l7 20. The total amount of damages incurred by plaintiffs in this matter, including pre-judgment
18 interest, is 5376,268.57 .
T9 2L As of September 3,2020, the other plaintiffs and I have incurred legal costs reimbursable
20 under Cal. Civ. Proc. Code $1033.5 in the sum of $1,494.40.
2l Grounds for Ex Parte Issuance of Writ of Attachment/Issuance of Temporarv Restrainins Order
22 22. If a right to attach order is not issued by this court along with an order for writ of
23 attachment on an Ex Parte basis, the other plaintiffs and I will suffer irreparable harm due to the delay in
24 having to wait for a noticed hearing during which time Defendant MAX DEL REAL can otherwise
25 dissipate, divert, and spend the sums contributed by plaintiffs to DEL REAL INTERNATIONAL, INC.,
26 and misappropriated by MAX DEL REAL.
27 Based on MAX DEL REAL's prior conduct and misappropriation of the funds contributed to
28 DEL REAL INTERNATIONAL, INC., by the other plaintiffs and me, it can be inferred that it is more
Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 6
1 likely than not that MAX DEL REAL will dissipate, divert, conceal, or otherwise hansfer the funds
2 remaining in his possession, or the assets subject to attachment in his ownership.
J 23. In the event the court is not inclined to grant a right to attach order and order for issuance
4 of writ of attachment on an ex parte basis, I request that the court issue a temporaryprotective order until
5 a hearing may be heard on this maffer that:
6 Defendant MAX DEL REAL is restrained from transferring or otherwise disposing of his
properfy subject to attachment as follows: Any and All real properly (includ4g 2080
'nidweli
7 Avdnue, Chico, CA95926), personal propefy, equipment, motorvehicles,
chattel paper, negotiable and other instruments, securities, {eposit accounts, safe deposit-
I boxes, ãcôouirts ieceivable, general intangibles, property subject to pending actions, final
money judgements, and personalty in estates of decedents.
9
10 I declare under penaþ of perjury under the laws of the State of California that the foregoing is
l1 true and correct.
t2 DATED: September 2024.
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Decl. of Jeremy M. Funk in Support of App. for RÍght to Attach Order and Order for Writ of Attachment 7
I PROOF OF SERVICE
2 I am employed in the County of Butte, State of California, I am over the age of 18 years and not a
party to the within action; my business address is 1530 Humboldt Road, Suite 3, Chico, California
J 95928.
4 On this date, I served the foregoing document described as:
5 DECLARATION OF JEREMY M. FUNK IN SUPPORT OF APPLICATION FOR RIGHT TO
ATTACH ORDER AND ORDER FOR WRIT OF ATTACHMENT
6
Said document was served on the interested party or parties in this action by placing a true copy
7 thereof, enclosed in a sealed envelope, and addressed as noted below.
8
Stephen H. Johanson, Esq. Stephan L. Ramazzini, Esq.
9
Johanson & Associates 2656 GuynnAvenue
2020W. El Camino Avenue, Suite 115 Chico, CA95973
10
Sacramento, CA 95833 Telephone : (91 6) 203 -927 I
Telephone: 16) 567-1000 E-mail : sk:unazzil¡u.@ gmail.com
11
Facsimile: t6) 649-1373 [Counsel for M. Max Del Real]
E-mail:
Norman P. Marshalll
t2
13 I am familiar with our firm's practice of collection and processing correspondence for mailing.
Under that practice it would be deposited with the U.S. Postal Service on that same day with postage
t4 thereon fully prepaid at Chico, California in the ordinary course of business. I am aware that on motion
of the party sèrved, service is presumed invalid if the postal cancellation date or postage meter date is
15 more lhan one working day after the date of deposit for mailing in this declaration.
t6 _x_ (By Mail) I deposited such envelope in the mail at Chico, California. The envelope was mailed
wi-h postage thereon fully prepaid to the person(s) at the address(es) set forth above.
I7
I declare under penalty of perjury under the laws of the State of California that the above is true
18 and correct. I further declare that I made the service set forth herein on the date set forth below.
t9 Executed on November 2020, at Chico, California.
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Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment I
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I DAVID R. GRTFFTTH, ESQ. (SBN 170172) JAMESON E.P. SHEEHAN, ESQ. (SBN 327287) 2 GRIFFITH HORN & SHEEHAN, LLP 11/12/2020 1530 Humboldt Road, Suite 3 J Chico, California 9 5928 Telephone: (530) 8 12-1 000 4 Facsimile: (530) 809-1 093 Emails: david@davidgrifhthlaw.com 5 j ameson@griffithandhorn.com 6 Attorneys for Plaintiffs 7 I THE SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 IN AND FOR THE COUNTY OF BUTTE 10 BERTON N. BERTAGNA; ) Case No.: 20CV00531 WADE R. PORTER; ) 11 JEREMY M. FUNK; ) DECLARATION OF JEREMY M. FUNK SEBASTIEN TAMARELLE; ) IN SUPPORT OF APPLICATION FOR RIGHT t2 B. SCOTT HOOD; ) TO ATTACH ORDER AND ORDER F'OR ROGER HEYM and ROSANNE HEYM; ) ISSUANCE OF WRIT OF ATTACHMENT l3 ) Plaintiffs, ) Hearing Date: Decenber 16,2020 t4 ) Time: 9:00 A.M. VS ) Dept.: 1 15 ) Judge: Hon. Tamara L. Mosbarger DEL REAL INTERNATIONAL, INC., ) t6 a California corporation, ) dba DEL REAL COMPANY; ) I7 M. MAX DEL REAL, ) aka MATTHEW B. DEL REAL, ) 18 aka MATTHEW DEL REAL, ) aka MATTHEV/ M. DEL REAL, ) t9 aka MAX DEL REAL; AMMERICANN DEVELOPMENT, LLC, 20 a California limited liability company; AMMERICANN HOLDINGS I, LLC, 2l a California limited liability company; BzuAN PRITCHARD; 22 NORMAN P. MARSHALL; DOES I through 50, inclusive, 23 Defendants. 24 25 I, JEREMY M. FLTNK, declare: 26 1 . I am a Plaintiff in this action. I make this Declaration in support of the Application for 27 Right to Attach Order and Order for Issuance of Writ of Attachment filed herein by me and the other 28 plaintiffs in this action against Defendant M. MAX DEL REAL, aka MATTHEW B. DEL REAL, aka Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 1 I MATTHEW DEL REAL, aka MATTHEW M. DEL REAL, aka MAX DEL REAL (hereinafter referred 2 to herein as "MAX DEL REAL"). I have personal knowledge of the matters stated herein, except as to J those matters stated on information and belief and would and could testifyto those matters if called upon 4 to do so. 5 Factual Background 6 2. I am informed and believe that in or about April 2018, Defendant MAX DEL REAL, by 7 and through DEL REAL INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and 8 AMMERICANN HOLDINGS I,LLC, at MAX DEL REAL's direction and control, began soliciting 9 investors in Butte County, California such as myself and the other plaintiffs herein with information and l0 representations made in written Investment Memorandum for the establishment of new cannabis 11 dispensaries under the trade name "Treì' in Redding, California. A true and correct copy of the L2 lnvestment Memorandum for the Redding, California dispensaries is attached to the Complaint filed l3 herein on February 20,2020, as Exhibit "1". I4 3. In or about September 2018, Defendant MAX DEL REAL, by and through DEL REAL 15 INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and AMMERICANN t6 HOLDINGS I, LLC, at MAX DEL REAL's direction and control, began soliciting investors in Butte l7 County, California such as myself and the other plaintiffs herein with information and representations 18 made in written Investment Memorandum for the establishment of new cannabis dispensaries under the T9 trade name "Trez" in Oroville, California. A true and correct copy of the lnvestment Memorandum for 20 the Oroville, California dispensaries is attached to the Complaint filed herein on February 20,2020, as 2I Exhibit "2". 22 4. In or about February 2}l9,Defendant MAX DEL REAL, by and through DEL REAL 23 INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and AMMERICANN 24 HOLDINGS I, LLC, at MAX DEL REAL's direction and control, began soliciting investors in Butte 25 County, California such as myself and the other plaintiffs herein with information and representations 26 made in written Investment Memorandum for the establishment of new cannabis dispensaries under the ooTnez" 27 trade name in South Lake Tahoe, California. A true and correct copy of the Investment 28 Memorandum for the South Lake Tahoe, California dispensaries is attached to the Complaint filed Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 2 1 herein on February 20,2020, as Exhibit "3'r. 2 5. I am informed and believe that in or about Ill4ay 2019, Defendant MAX DEL REAL, by a J and through DEL REAL INTERNATIONAL, INC., AMMERICANN DEVELOPMENT, LLC, and 4 AMMERICANN HOLDINGS I,LLC, at MAX DEL REAL's direction and control, began soliciting 5 investors in Butte County, California such as myself and the other plaintiffs herein with information and 6 representations made in written Investment Memorandum for the establishment of new cannabis 7 dispensaries under the trade name "Treì' in Chico, California. A true and correct copy of the Investment I Memorandum for the Chico, California dispensaries is attached to the Complaint filed herein on 9 February 20,2020, asExhibit "4". 10 The Investment Memorandum for the Redding, Oroville, South Lake Tahoe, and Chico projects l1 are collectively referred to herein as the "Investment Memorandum". t2 6. The Investment Memorandum produced and disseminated by Defendant MAX DEL 13 REAL represented that permits for new cannabis dispensaries would initiallybe obtained for Placerville T4 and South Lake Tahoe in Summer 2019, and would have an estimated valuation of $1,000,000.00 each 15 with estimated projected net profits of $110,625.00 per month in the first year of operation to an I6 estimated 5240,416.00 per month by the third year. It was represented by Defendant MAX DEL REAL l7 that for an investment of $25,000, there would be a retum on investment $132,750.00 in 2019 with an 18 estimated three year return on investment of $663,000.00. I9 7. I am informed and believe that Defendant MAX DEL REAL intended to have the 20 information and representations set forth in the Investment Memorandum reviewed and considered by 21, investors such as myself and the other plaintiffs to induce our investments with Defendants DEL REAL 22 INTERNATIONAL, INC., and BRIAN PRITCHARD, the changes in laws claimed to make obtaining of 23 cannabis dispensary permits achievable, use of invested funds for the projects, the short time frame for 24 the investment to result in high equity positions, and high returns on investments. 25 8. I am informed and believe that Defendant MAX DEL REAL intended that the 26 representations set forth in the Investment Memorandum would be disseminated to the friends, business 27 associates, and family members of me and the other plaintiffs to try and solicit and generate further 28 investments with DEL REAL INTERNATIONAL, INC. Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment J 1 9. In reliance upon the representations set forth in the Investment Memorandum, I was 2 induced to enter into New Client Agreements and Project Guarantees with Defendant DEL REAL a J INTERNATIONAL, INC. 4 10. I invested $29,000.00, summadzed as follows: 5 A. New Client Agreement dated October 8, 2018, for $10,000.00 for a "buy-in" of 6 5olo ownership of the Oroville Project, a true and correct copyof which is attached to the Complaint filed 7 herein on February 20,2020, as Exhibit '(lgtt. 8 B. Project Guarantee dated October 9,2018, for the $10,000.00 obuy-in" of a 5o/o 9 ownership of the Oroville Project, a true and correct copy of which is attached to the Complaint filed 10 herein on February 20,2020, as Exhibit "20tt. 11 C. Project Guarantee dated October9,2018, of $10,000.00 for a "buy-in" of an t2 additional 5olo ownership of the Oroville Project, a true and correct copy of which is attached to the 13 Complaint filed herein on February 20,2020, as Exhibit "zln. l4 D. Project Guarantee dated February 5,2019, of $10,000.00, of which I paid l5 $9,000.00, for a "buy-in" of a 10olo ownership of the Placerville Project and the South l¿ke Tahoe T6 Project, a true and conect copy of which is attached to the Complaint filed herein on February 20,2020, t7 as Exhibit '(22tt. 18 11. I am informed and believe that Defendant MAX DEL REAL has diverted, dissipated, and I9 used the funds invested by me and the other plaintiffs with Defendant DEL REAL INTERNATIONAL, 20 INC., to himself and for his own personal use, and not for the purpose as designated for the respective 2l cannabis dispensary projects, including without limitation, paying cash to his former spouse to purchase 22 and buyout her interest in his personal residence located at 2080 Bidwell Avenue, Chico, California 23 95926. 24 12. I am informed and believe that Defendant MAX DEL REAL has diverted and dissipated 25 the funds and capital of Defendant DEL REAL INTERNATIONAL, INC., for his own benefit, so 26 extremely that the DEL REAL INTERNATIONAL, INC., has become insolvent, unable to pay its 27 creditors, including me and the other plaintiffs herein and its taxes, resulting in DEL REAL 28 INTERNATIONAL, INC., being designated by the State of California as suspended and unable to Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 4 I conduct lawful business. As such, my and the other plaintiffs' New Client Agreements and Project 2 Guarantees are of no value and worthless. J As of the date of this declaration, Defendant DEL REAL INTERNATIONAL, INC., is FTB 4 Suspended. A true and correct copy of a printout of the Business Search Information from the website 5 for the California Secretaryof State for Defendant DEL REAL INTERNATIONAL, INC., is attached as oo1" 6 Exhibit to the Request for Judicial Notice in Support of Application for Right to Attach Order and 7 Order for Writ of Attachment ("Request for Judicial Notice") filed concurrently herewith. 8 Breach of Contract Allesations and Rieht to Judgment against Defendant MAX DEL REAL. 9 13. In the Complaint filed herein on February 20,2020, the other plaintiffs and I alleged as an l0 alternative cause of action, the sixth cause of action for Breach of Contract against Defendants MAX 11 DEL REAL and DEL REAL INTERNATIONAL,INC., based upon the New Client Agreements and T2 Project Guarantees. 13 14. I have performed all obligations required of me to be performed under the terms of the I4 New Client Agreement(s) and Project Guaranty(ees) entered into by me. 15 15. In or about Summer 2019, and thereafter, Defendant DEL REAL INTERNATIONAL, T6 INC., breached the terms and conditions of the agreements by: 1) failing to obtain any new cannabis t7 dispensary permits or operations; 2) diverting and dissipating my and the other plaintiffs' investments to 18 its control person MAX DEL REAL, and 3) becoming inactive and FTB Suspended rendering it unable t9 to lawfully conduct any business. 20 16. At all times relevant herein, Defendant MAX DELREAL is and was the primary 2I shareholder, director, officer, agent, and control person of Defendant DEL REAL INTERNATIONAL, 22 INC. A true and correct copy of the Articles of Incorporation filed on May 25, 2017 , and the Statement oo3" 23 of lnformation filed on March 6,2020, are attached as Exhibits "2" and to the Request for Judicial 24 Notice filed concurrently herewith. 25 17. I am informed and believe that Defendant MAX DEL REAL has operated DEL REAL 26 INTERNATIONAL, INC., in an undercapitalized condition for the known debts incurred by the 27 corporation to me and the other plaintiffs in the Project Guarantees, and that Defendant MAX DEL 28 REAL diverted, dissipated, and used the funds invested by me and the other plaintiffs with DEL REAL Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 5 1 INTERNATIONAL, INC., for his own personal use and unjust enrichment to my and the other 2 plaintiffs' detriment, such that the corporate veil of DEL REAL INTERNATIONAL, INC., should be J pierced with MAX DEL REAL be deemed one and the same as the corporate entity and personally 4 obligated for its debts. 5 18. As a direct and proximate result of the breach by Defendant DEL REAL 6 INTERNATIONAL, INC., I have suffered compensatory damages of $29,000.00, plus accrued pre- 7 judgment interest at the maximum rate of interest allowed by law. 8 The total amount of compensatory damages suffered by me and the other plaintiffs as a resultof 9 the defendant's breach is $357,000.00, plus accrued pre-judgment interest at the maximum rate of l0 interest allowed by law. 1l Defendant MAX DEL REAL is the alter ego of Defendant DEL REAL INTERNATIONAL, L2 INC., and is personally and jointly liable for the damages incurred by me and the other plaintifß. t3 19. From the date of filing of the complaint on February 20,2020, to September 3,2020, t4 prejudgment interest at the legal rate of 10% simple interest per annum has accrued on the total principal 15 sum due of $357,000.00 from the date of filing of the complaint on February 20,2020 to the present date t6 in the total amount of $19,268.57 (196 days x dailyrate of $97.81). l7 20. The total amount of damages incurred by plaintiffs in this matter, including pre-judgment 18 interest, is 5376,268.57 . T9 2L As of September 3,2020, the other plaintiffs and I have incurred legal costs reimbursable 20 under Cal. Civ. Proc. Code $1033.5 in the sum of $1,494.40. 2l Grounds for Ex Parte Issuance of Writ of Attachment/Issuance of Temporarv Restrainins Order 22 22. If a right to attach order is not issued by this court along with an order for writ of 23 attachment on an Ex Parte basis, the other plaintiffs and I will suffer irreparable harm due to the delay in 24 having to wait for a noticed hearing during which time Defendant MAX DEL REAL can otherwise 25 dissipate, divert, and spend the sums contributed by plaintiffs to DEL REAL INTERNATIONAL, INC., 26 and misappropriated by MAX DEL REAL. 27 Based on MAX DEL REAL's prior conduct and misappropriation of the funds contributed to 28 DEL REAL INTERNATIONAL, INC., by the other plaintiffs and me, it can be inferred that it is more Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment 6 1 likely than not that MAX DEL REAL will dissipate, divert, conceal, or otherwise hansfer the funds 2 remaining in his possession, or the assets subject to attachment in his ownership. J 23. In the event the court is not inclined to grant a right to attach order and order for issuance 4 of writ of attachment on an ex parte basis, I request that the court issue a temporaryprotective order until 5 a hearing may be heard on this maffer that: 6 Defendant MAX DEL REAL is restrained from transferring or otherwise disposing of his properfy subject to attachment as follows: Any and All real properly (includ4g 2080 'nidweli 7 Avdnue, Chico, CA95926), personal propefy, equipment, motorvehicles, chattel paper, negotiable and other instruments, securities, {eposit accounts, safe deposit- I boxes, ãcôouirts ieceivable, general intangibles, property subject to pending actions, final money judgements, and personalty in estates of decedents. 9 10 I declare under penaþ of perjury under the laws of the State of California that the foregoing is l1 true and correct. t2 DATED: September 2024. t3 14 15 16 17 18 l9 20 2t )') 23 24 25 26 27 28 Decl. of Jeremy M. Funk in Support of App. for RÍght to Attach Order and Order for Writ of Attachment 7 I PROOF OF SERVICE 2 I am employed in the County of Butte, State of California, I am over the age of 18 years and not a party to the within action; my business address is 1530 Humboldt Road, Suite 3, Chico, California J 95928. 4 On this date, I served the foregoing document described as: 5 DECLARATION OF JEREMY M. FUNK IN SUPPORT OF APPLICATION FOR RIGHT TO ATTACH ORDER AND ORDER FOR WRIT OF ATTACHMENT 6 Said document was served on the interested party or parties in this action by placing a true copy 7 thereof, enclosed in a sealed envelope, and addressed as noted below. 8 Stephen H. Johanson, Esq. Stephan L. Ramazzini, Esq. 9 Johanson & Associates 2656 GuynnAvenue 2020W. El Camino Avenue, Suite 115 Chico, CA95973 10 Sacramento, CA 95833 Telephone : (91 6) 203 -927 I Telephone: 16) 567-1000 E-mail : sk:unazzil¡u.@ gmail.com 11 Facsimile: t6) 649-1373 [Counsel for M. Max Del Real] E-mail: Norman P. Marshalll t2 13 I am familiar with our firm's practice of collection and processing correspondence for mailing. Under that practice it would be deposited with the U.S. Postal Service on that same day with postage t4 thereon fully prepaid at Chico, California in the ordinary course of business. I am aware that on motion of the party sèrved, service is presumed invalid if the postal cancellation date or postage meter date is 15 more lhan one working day after the date of deposit for mailing in this declaration. t6 _x_ (By Mail) I deposited such envelope in the mail at Chico, California. The envelope was mailed wi-h postage thereon fully prepaid to the person(s) at the address(es) set forth above. I7 I declare under penalty of perjury under the laws of the State of California that the above is true 18 and correct. I further declare that I made the service set forth herein on the date set forth below. t9 Executed on November 2020, at Chico, California. 20 By 2T 22 23 24 25 26 27 28 Decl. of Jeremy M. Funk in Support of App. for Right to Attach Order and Order for Writ of Attachment I