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Filing # 16339226 Electronically Filed 07/25/2014 10:12:20 AM
IN THE CIRCUIT COURT OF THE 11™ JUDICIAL CIRCUIT
IN AND FOR MIAMI-DADE COUNTY, FLORIDA
STANFORD ELECTRONICS, INC. GENERAL JURISDICTION DIVISION
Plaintiff, CASE NO.:
vs.
THE CITY OF SUNRISE, FLORIDA,
DETECTIVE JUAN PENA, AND
SGT. JAMES HUGHES
Defendants.
/
COMPLAINT
COMES NOW, the Plaintiff, Stanford Electronics, Inc. and sues the Defendants, City of
Sunrise, a municipal corporation, Detective Juan Pefia and Sgt. James Hughes, and states.
1. This is an action for damages in excess of $2,400,000.00.
2. This is an action for damages that exceed the Circuit Court Jurisdiction.
3. Plaintiff Stanford Electronics, Inc. is a Florida corporation whose principal place
of business in Miami Dade County, Florida.
4. The City of Sunrise is a Florida municipality.
5. Detective Juan Pefia is a Florida resident who at all times material was employed
by the City of Sunrise, Florida police department and acted in the course and scope of his
employment by it.
6. Sgt. James Hughes is a Florida resident who at all times material was employed
by the City of Sunrise, Florida and acted in the course and scope of his employment by it.
7, Stanford is in the business of importing electronic goods from the Unites States
and the Far East to customers in Latin America including Venezuela.Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes
Complaint
8. As part of its business, Stanford sought out opportunities to exchange the
Venezuela Bolivars paid by its customers in Venezuela for Unites States dollars paid in the
United States.
9. In Plaintiffs search for currency exchange sources it was introduced to an
individual named Pedro Martinez and his company Profesionales de Bolsas and met with Pedro
Martinez in Miami-Dade County, Florida on multiple occasions.
10. Martinez advertised through his website, and represented to Plaintiff in person in
Miami, Florida, to be in the legitimate business of currency exchange and repeatedly assured
Stanford that he could and would exchange Dollars paid in the Unites States for bolivars paid in
Venezuela at an attractive rate.
11. Inreliance upon Martinez's representations, Stanford agreed with Martinez to
have Stanford's Venezuelan customers deposit their payments for goods sold them by Stanford
into one or more Bank of America accounts in Venezuela as directed by Martinez.
12, At the direction of Martinez, Stanford customers deposited $18,560,000.00
bolivars (U.S. $806,956.00 at the then existing exchange rate of 23 B/dollar). The deposits were
made in the Spring and Summer of 2013.
13. At the times Martinez entered into the exchange agreement in Miami and the
Stanford customers deposited funds to the Bank of America in Venezuela, Martinez worked at
the direction of and as an agent for the Sunrise Police Department and was supervised and
controlled by Detective Pefia and Sgt. Hughes with the knowledge and consent of the Chief of
Police of Sunrise, Florida.
14. Martinez's representations and promises of Bolivar exchange to Stanford were a
fiction invented by the Sunrise Police Department, Detective Pefia, Sgt. Hughes and Martinez in
2Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes
Complaint
an enterprise formed with the intent to accomplish by fraud and deceit the seizure of money to
benefit the City of Sunrise.
15. Defendants’ plan was to transfer the Plaintiff's funds from Venezuela to the
United States and then seize them claiming the money was the fruit of illegal activity.
16. Plaintiff is a fully legitimate import/export business dealing solely with legitimate
funds to export and sell electronics in South America.
17. The Defendant and their agent(s) did not convert the Bolivars to Dollars as
promised, leaving Stanford without payment for the goods it sold in Venezuela and for
which the customers paid as instructed by Martinez.
18. During the City's operation, their agent had conversations with Stanford in Miami,
Florida wherein Martinez was portrayed as a legitimate money broker and did not suggest an
illicit source for the dollars.
19. As a result of Defendant's actions, Plaintiff has been deprived of essential
capitalization and was forced to close its Panama office losing a substantial investment in same.
COUNT 1
FRAUD
20. Plaintiff adopts and re-alleges paragraphs 1-19 above and further states:
21. Atall times material, Martinez, acting under the direction and control of
Defendants Pefia and Hughes made false statements and promises to Plaintiff Stanford knowing
they were false.Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes
Complaint
22. The false statements and promises were knowingly made with the intent to
deceive Stanford and others into believing they were entering into a legitimate currency
exchange arrangements when defendants had no intent to exchange dollars for bolivars, but to
seize the funds for the benefit of the Defendant City.
23. Asaresult of Defendants' fraudulent conduct, Plaintiff lost a substantial sum of
money.
WHEREFORE, Plaintiff prays the court will award it compensatory and punitive
damages plus the costs of bringing this action.
COUNT If
BREACH OF CONTRACT
23. Plaintiff adopts and re-alleges paragraphs 1-19 above.
24. Defendants Sunrise, Hughes and Pefia through their authorized agent Martinez,
entered into a contract with Stanford to exchange $800,000.00 dollars for $18,560,000.00
bolivars on the condition that Stanford have its customers deposit those bolivars into a certain
Bank of America account in Venezuela.
25. Based upon the agreement made between the Defendants through their agent
Martinez, Stanford caused its customers to deposit the bolivars as instructed by Martinez.
26. While Plaintiff complied with all terms of the contract, defendants have failed and
refused to pay the dollars to Stanford or on Stanford's behalf.
27. Defendants breached their contract with Plaintiff and owe Plaintiff $806,956.00.
WHEREFORE, Plaintiff prays the Court will award the Plaintiff, $806,956.00 in
damages plus the costs of this action and interest.Stanford Electronics, Inc, y. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes
Complaint
COUNT IIT
NEGLIGENCE
28. Plaintiff adopts and re-alleges paragraphs 1-18 above and further states:
29. Atall times material, Defendants had a duty to act honestly and fairly toward the
general public and the duty to care for all property the public placed with it for safekeeping. ,
30. Defendants arranged for Plaintiff to have its bolivars placed in a Venezuelan Bank
of America account for purposes of safeguarding it pending its exchange for dollars.
31. Defendants in conducting its operation breached its duties when it failed to
coordinate its efforts with the Venezuelan government or to confirm with the government or
anyone else that the account was legitimate and not the target of government seizure.
32. Defendants who were operating a currency exchange business failed to take such
precautions as a reasonable money exchange business would take under the same or similar
circumstances causing the seizure and loss of Plaintiffs funds.
33. Plaintiff was damaged by Defendants’ negligence breach of its duties.
WHEREFORE, Plaintiff prays the Court will award damages in the sum of $806,956.00
plus the costs of this action and interest.Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes
Complaint
Respectfully submitted,
John B. Ostrow, P.A.
777 Brickell Avenue
Suite 1210
B/OstiSw (FBN 124324
jostré6w@bellsouth.net
y sttcow@yahoo.com
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Filing # 16339226 Electronically Filed 07/25/2014 10:12:20 AM IN THE CIRCUIT COURT OF THE 11™ JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA STANFORD ELECTRONICS, INC. GENERAL JURISDICTION DIVISION Plaintiff, CASE NO.: vs. THE CITY OF SUNRISE, FLORIDA, DETECTIVE JUAN PENA, AND SGT. JAMES HUGHES Defendants. / COMPLAINT COMES NOW, the Plaintiff, Stanford Electronics, Inc. and sues the Defendants, City of Sunrise, a municipal corporation, Detective Juan Pefia and Sgt. James Hughes, and states. 1. This is an action for damages in excess of $2,400,000.00. 2. This is an action for damages that exceed the Circuit Court Jurisdiction. 3. Plaintiff Stanford Electronics, Inc. is a Florida corporation whose principal place of business in Miami Dade County, Florida. 4. The City of Sunrise is a Florida municipality. 5. Detective Juan Pefia is a Florida resident who at all times material was employed by the City of Sunrise, Florida police department and acted in the course and scope of his employment by it. 6. Sgt. James Hughes is a Florida resident who at all times material was employed by the City of Sunrise, Florida and acted in the course and scope of his employment by it. 7, Stanford is in the business of importing electronic goods from the Unites States and the Far East to customers in Latin America including Venezuela.Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes Complaint 8. As part of its business, Stanford sought out opportunities to exchange the Venezuela Bolivars paid by its customers in Venezuela for Unites States dollars paid in the United States. 9. In Plaintiffs search for currency exchange sources it was introduced to an individual named Pedro Martinez and his company Profesionales de Bolsas and met with Pedro Martinez in Miami-Dade County, Florida on multiple occasions. 10. Martinez advertised through his website, and represented to Plaintiff in person in Miami, Florida, to be in the legitimate business of currency exchange and repeatedly assured Stanford that he could and would exchange Dollars paid in the Unites States for bolivars paid in Venezuela at an attractive rate. 11. Inreliance upon Martinez's representations, Stanford agreed with Martinez to have Stanford's Venezuelan customers deposit their payments for goods sold them by Stanford into one or more Bank of America accounts in Venezuela as directed by Martinez. 12, At the direction of Martinez, Stanford customers deposited $18,560,000.00 bolivars (U.S. $806,956.00 at the then existing exchange rate of 23 B/dollar). The deposits were made in the Spring and Summer of 2013. 13. At the times Martinez entered into the exchange agreement in Miami and the Stanford customers deposited funds to the Bank of America in Venezuela, Martinez worked at the direction of and as an agent for the Sunrise Police Department and was supervised and controlled by Detective Pefia and Sgt. Hughes with the knowledge and consent of the Chief of Police of Sunrise, Florida. 14. Martinez's representations and promises of Bolivar exchange to Stanford were a fiction invented by the Sunrise Police Department, Detective Pefia, Sgt. Hughes and Martinez in 2Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes Complaint an enterprise formed with the intent to accomplish by fraud and deceit the seizure of money to benefit the City of Sunrise. 15. Defendants’ plan was to transfer the Plaintiff's funds from Venezuela to the United States and then seize them claiming the money was the fruit of illegal activity. 16. Plaintiff is a fully legitimate import/export business dealing solely with legitimate funds to export and sell electronics in South America. 17. The Defendant and their agent(s) did not convert the Bolivars to Dollars as promised, leaving Stanford without payment for the goods it sold in Venezuela and for which the customers paid as instructed by Martinez. 18. During the City's operation, their agent had conversations with Stanford in Miami, Florida wherein Martinez was portrayed as a legitimate money broker and did not suggest an illicit source for the dollars. 19. As a result of Defendant's actions, Plaintiff has been deprived of essential capitalization and was forced to close its Panama office losing a substantial investment in same. COUNT 1 FRAUD 20. Plaintiff adopts and re-alleges paragraphs 1-19 above and further states: 21. Atall times material, Martinez, acting under the direction and control of Defendants Pefia and Hughes made false statements and promises to Plaintiff Stanford knowing they were false.Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes Complaint 22. The false statements and promises were knowingly made with the intent to deceive Stanford and others into believing they were entering into a legitimate currency exchange arrangements when defendants had no intent to exchange dollars for bolivars, but to seize the funds for the benefit of the Defendant City. 23. Asaresult of Defendants' fraudulent conduct, Plaintiff lost a substantial sum of money. WHEREFORE, Plaintiff prays the court will award it compensatory and punitive damages plus the costs of bringing this action. COUNT If BREACH OF CONTRACT 23. Plaintiff adopts and re-alleges paragraphs 1-19 above. 24. Defendants Sunrise, Hughes and Pefia through their authorized agent Martinez, entered into a contract with Stanford to exchange $800,000.00 dollars for $18,560,000.00 bolivars on the condition that Stanford have its customers deposit those bolivars into a certain Bank of America account in Venezuela. 25. Based upon the agreement made between the Defendants through their agent Martinez, Stanford caused its customers to deposit the bolivars as instructed by Martinez. 26. While Plaintiff complied with all terms of the contract, defendants have failed and refused to pay the dollars to Stanford or on Stanford's behalf. 27. Defendants breached their contract with Plaintiff and owe Plaintiff $806,956.00. WHEREFORE, Plaintiff prays the Court will award the Plaintiff, $806,956.00 in damages plus the costs of this action and interest.Stanford Electronics, Inc, y. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes Complaint COUNT IIT NEGLIGENCE 28. Plaintiff adopts and re-alleges paragraphs 1-18 above and further states: 29. Atall times material, Defendants had a duty to act honestly and fairly toward the general public and the duty to care for all property the public placed with it for safekeeping. , 30. Defendants arranged for Plaintiff to have its bolivars placed in a Venezuelan Bank of America account for purposes of safeguarding it pending its exchange for dollars. 31. Defendants in conducting its operation breached its duties when it failed to coordinate its efforts with the Venezuelan government or to confirm with the government or anyone else that the account was legitimate and not the target of government seizure. 32. Defendants who were operating a currency exchange business failed to take such precautions as a reasonable money exchange business would take under the same or similar circumstances causing the seizure and loss of Plaintiffs funds. 33. Plaintiff was damaged by Defendants’ negligence breach of its duties. WHEREFORE, Plaintiff prays the Court will award damages in the sum of $806,956.00 plus the costs of this action and interest.Stanford Electronics, Inc. v. The City of Sunrise, Florida, Detective Juan Pefia, and Sgt. James Hughes Complaint Respectfully submitted, John B. Ostrow, P.A. 777 Brickell Avenue Suite 1210 B/OstiSw (FBN 124324 jostré6w@bellsouth.net y sttcow@yahoo.com