FILED IN MY OFFICEDISTRICT COURT CLERK

4t8t201412.49..50 PMGREGORY T, IRELAND

Tracie Laahty

JOSE

AND

STA OF NEW MEX]COTY OF BERNALILLO

ruDICIAL DISTRICT COURT

H C. LEE, THERESA K. LEEOSEPII C. LEE REAL ES'IATE IRA, LLC

Piaintiffs,

BO

, D-202-CV-2014-O2490Case No.

indiviL, WILLIS, CARRIE S. \4TILLIS,lly and as trustees of the BOBBY L.

MEXIPROPPROP

\I/AND CARRIE S.WILLIS TRUST,ASSET MANAGEMENT, LLC,

TIM J. COONEY, COONEY &TES,INC., GOLDEN RULE, LLC, JJ

BON INVESTMENTS, INC. d/b/a NEWTITLE CO,, JTB DEVELOPMENT

.TIES 3, LLC, and JTB DEVELOPMENT'I'IES 4, T,LC,

Defendants.

;;;;;il;;;;il;*" ro,io*us F,oR BREACTT oF,trIDUCIARY DUTY, WRONGF'UL MISREPRES ENTATION,

WRONGF'UL SECURITIES SALES AND IIWESTMENT ADYTSORYPRA.CTICES, COI{\iERSION, BREACH OF, CONTRACT,

G AND TO IMPOSE CONSTRUCTI\TE TITUST'S

intiffs Joseph c. Lee, Theresa K. Lee and the Joseph c. Lee Real Estate IRA, LLC, by arrd

theiru[delsigned attomeys, complain against defendants BobbyL, Willis, Car:r.ie S. Willis,

Bobby

Willis

Willis and Cat'rie S, Willis, as trustees of ths Bobby L. lYillis aud Carrie S. Willis Trust,

Managemerrt, LLC, Tirnothy J. cooney, cooney & Associates, hrc., Golden Rule, JJ

Bond h ttnents, hrc. doing business as New Mexico Title Co., JTB Development pr-oper-ties 3,

I,I,C, A JTB Development Properties 4,LLC as fbllorvs:

PARTIES, PERSONAL JURISDICTION, AND YENUtr

l. Plafurtiffs Joseph C. Lee and Thetesa K. Lee (the 'Zees') are residents of the state of

exico and resirle iu tbis judicial district.

7. Otr infonnation and belief, Tirn Cooney for and on behalf of tl're Lees fonned the

ico, and rvas Willis's spouse, On Marsli 20,2072,hermaniageto Willis rvas dissolved in

actiotr conlnenced in the Eleventlt Judicial Dishict, On information and beliefi presentiy, she

isa ident of the state of New Mexico.

t C. Lee Reai Estate IRA, LLC, a Colorado limited liability cornpany, lvhich, at times rnaterial

action rvas orvned in rvhole or in part by them (the'Ze e LLC' or inconjunction rvith the Lees

'iffr"),

3, At tirnes material to Plaintiffs' claiirts, defendant Bobby L. Willis ("Bobby l1illis")

\YAS A ident of the state of Nerv Mexico and tesided in the Eleventh Judicial Distrtct of the state of

Nerv ico. On infot'tnation and belief, presently he is a rcsident of the state of Missouri,

Ai times material to Plaintiffs' claims, defendant Canie S, Willis ('Carrie ltrillis')

was a idsnt of the state of Nerv Mexico, resided in tlre Elevctrth Judicial Dishict of the state of

Nerv

Nerv

a civi

of the

5, On infomration and bclicf, Dcflenclants l3obby Willis and Carrie Willis are the trustees

obby L. Willis aud Can'ic S, Willis Tlust ("/'/rilis Tt'usf'), rvhich is a trust that Bobtry Willis

arrd 'ie Willis formed in Neu, Mexico.

i. Defendant Willis Asset Managernent, LLC ("lYillis Asset l,luutgenwil") is a Nerv

lirrtited liability colnpany organized by Bobby Willis and, at lirnes material to tlus action,Mex

was

\YiII

fhe la

Bobby

Willis

u'ued itt rt'hole or irt part lry the,r' At ali ti,res rnaterial hcrcto, the e,fity se'ved as Bobb1,

's and cart'ie willis's aitet' ego atrcl tiotriree fbr purposes of rlesigni.g a,d irnplerrrenf ir:g t'ercal investmettts ancl other transactions that arc thc subject matter.of tlie clairns ai issuehereirr.

7. I)efendant Tir,othy J, Coo,cy (,,Coone.y,,)is a 'esicletrt

of tlre state of Coloratlo,

8' nefbndatrt cooncy & Associates, hc. ("c,-t4 , Ittc.')i.s a corpoi.ation organizecl u,der.

of the state of colorado ivith a principal place of busi,ess i' Dura,go, colora4o. At ti,resto this action, it was orvned ancl managed by Cooney,

)' ort infbtlnatiorl and belief the defendant cntitykno', as Golden Rule, LLC (,,Golclett

Rule is a Nerv Mexico limitecl liability cornparly. At all times ,raterial to this actio,, rhe e,tityseryed Bobby willis's and cauie willis's alter ego and ,o*ri'ee for purposes of desig.ing a'd11 ing the teal estate investments and other transacfions that are the subject rnatter of the

claims t issue hercin.

I 0' Detbrida,t JJ Bond Ltvestnrertts ,1nc, ("JJBorlrl') is a Nerv Mcxico cor.poratio, tSat

prev ly conducted a title itt.sulatrce and escron, business in Nerv Mexico as Ne*,Mexico Title co,illis and car:'ie willis set'r'ed as rlit'ectols ancl officcrs of JJBond. Bobby willis arcl carrie

JJBond doirtg busittess as Neiv Mexico 'litle co, as their alter ego ancl norni,ee for

of designing and implementing the real estate inveshnents and other transactio,s that are

the subj matter of the clairns at issue herein.

l ' At all tirnes material hereto, JJBoncl and Golden Rule failed to ernploy persons rvitlrminimal sufficietlt expetieltce in operating a title insularlcc corilparly, ,ranaging titlc t'ausactions,

iltg arl escro\1r business, failed to rrraintain accurate books ancl recorrls, failed to accountol cond

tbL i cash receipts and disbursements, attd oliienvise conducted a title insurauce arrd escrorv

b in an ttnsaf'e aud injurious lnarilrer iu violation of the Nerv fuIexico Title insurancc Larv, $$

1 et seq. (1978) (the "Title Itrsur(mce Lat+,"),the Nerv Mexico Escrou, Company Act, N.M,

t. $$ 58-22- I et seq. (1978) (the "Escrotv Act"), and t'egulatirins prorlulgateci under the Larv

59A-

Stat. .

and t Act.

JJ

12. On February 10, 2012, the state of Neiv Mexico sued Bobby Willis, Ca*:ie Willis,

Golden Rule, a*d others in Finaucial Institutions Division r,. BobbyWillis et al,, CaseNo.

-2A12-003'18 (Eleventh Judicial Dishict, Nerv Mexic o) ("FID Case"), alleging among other101

tltin

and

that Bobby Willis, Canje Willis, JJBond, and Goldel Rule lrad conducted a title insnrance

business in an uilsafe and injurious lllannel in violation of the Title hrsurance Law, the

Escro Act, and the regulations pronrulgated thereunder,

Finat

13. By oldel entered otr Aprll 25,2012, Juclge Rayrrond Ortiz irr the FID Case granted the

al hrstilution I)ivisioit's applicatiou for a receivel and placcd Nerv Mexico'fitte Co.'s arrcl

Rule's escrow opei'atiorrs in a liquidating leceivership.

tiabili

14. Defendant JTB Developmeut Propertics 3, Ll,C ("JT'B,i") is a Colorado lirnited

colllparty olganizecl b1, Cooncy, at the directiol 9f'Robb1, Willis, Upon i6formatiorr alrl

no valid u'rittett operating agtectncnt cxists fol JTLI 3. Upon infbrmation arrd beliel; Cooney,

Willis and Carrie Willis each executecl docurnents on behalf of JTB 3 as a tllarlager or'

of the corrpany. Cooney, Bobby Willis and Carrie Willis uscd JTB 3 as tlieit alter ego and

fol purposes of desigtting and iurplementing tlic real estate investrueuts aud other

belief

rrternb

110rn

tla ions lhat are the subject rnatter of the clairns at issue herefur.

4

15, Defendant JTB Developrnent Plopclties 4, Lrc, (*JTB 4") is a Colorado linrited

ty company organized by Cooney, Upon infbrrnation and bclief; no valid rvritten operating

exists for JTB 4. Upon irrfonnatiou and belief, Cooney, Bobby Willis and Can'ie Willis

have executed docurnents on behalf of JTB 4 as a manager or rnernber of the cornpany. Cootrey

B Willis and Carlie Willis used JTB 4 as thcir aitel ego and nourinec ftrr purposes of <lesigning

plementing the real estate inr.eshnents and olhel tlansactious tlrat are the subjcct mattcr oftlte

at issue herein.

1 6. Venue for this action in this judicial district is propel under N. M. Stat. Am. $ 38-3- I

ADDITIONAL AI,LEGAT'IONS COI,INION TO ALL COUNTS

l7 . The Lees have knorvn Dr. Rorurie J, Gamer ("Dr. Garnet') for over thirty years and

f iends. Dr. Gamer's nrother Alnie M. Lornau u,as defendant Bobby Willis's gteat-autrt.

18, tJpon infblnration and belicf, Bobby Willis pursuecl discussions rvith Dr. Garncr itt

Hc replesented to Dr. Garnel that he coulcl clesig* au "iuvesftnent prograDr" for hirn, that he

mbel of "good inveshnents" that rvete suiiable for hirn, solicited his interest in investing in

and

clai,

2009

had a

the :ans Adrninistration irospital ploject that he clairned to be developing, and solicited his

lIl iu investing in the stalfiip ol various rnedical busincsses. In coturcctiott rvith lltese

ions, I3obby Willis replesented to Dr, Ganrcr that the Vetet'aus Adrninistration pt'ojectsolici

consi

hospi

of constructing public and private facilities for operating a Veterans Adrninistration

al and associated private medical clinics, assisted living facilities, and related residential and

ial improverneuts to be located in Kirtland, Nerv Mexico ("Kirtland Projecf').

19.

rted

Upotr infoltttatiott arrd belief, in thc coLu'se of tirese discussions Bobby Willis

to Dt', Ganlcr tlrat he ltad become rvealthy tluough his entrepreneurial efforts, that lris

B'as sLrfficiertt to last hini fol the lest of iris lifc, tlrat lre irrten<led to devotc his busipess

: and e{forts in the lirtrrre to philantluopl,, and tliat he rvanted lo use a portiorr of his rvealtlr to

old, infirttt, and disabled vetet'atts, otlier disaclvantaged pelsous, arrd Nativc Arnericaris by

,irlg the Kirtlaud Project attd to diversify thc oi[-and-gas econolrly of San Juan County by

tirtg its tax base and creating thousands of new jobs for the area.

20' Dr. Lee was first intloduccd to the defendant Bobby Willis tll'ough Dr, Canrer in

Dr. Lee rnet rvitlt 13obby \Villis and Dr. Garner in 2010 to discuss the Kirtlan(l Project. Bobby

claitned that lte rvas ilcveloping a Vetelaus Admirristration hospital zurcl lepresented to Dr'. Lee

trnetrt program that Bobby Willis was developing rvas a Veterans Adrninistr.ation hospital

ilt San.Iuan County, and proposed that Dr. Gamerand Dr. teeparticipatein thedevelopment

rveal

ber

2010,

wiili

The in

plojec,

of vari

that Kirtland Project consisted of constructing public and private facilities for operating a

v Adrninistratiou liospital arid associated prtvate medical clinics.

\Yillis's Solicitation of the Lees to Design,Inrpleurent, and Manage Their. Investments

Lt 2010, Defendanls, individually and tluough the Good offices of Dr. Garner;

r)lorleY ti'om the Lecs. Itt 2010, Bobby Willis lepresentecl to Dr. Garnel and tlie Lees, aucl

them that if Dr. Carler ancl the Lees entlusted hirri rvith ulolley and a porlion ol their

r t assets, he rvould invest these funds in an "i*vestrnent program" consisting of conseruative

il1CO1 producing properties and other investments that rvould deliver a "consistent lz%I.efum".

s rnedical lines of business including participation as an investor irr the medical businesses

aiid

that

the

d

in the

issued.

aving a .olc irl rnattagi,,g the lnedical practice aspecls of trrc busiress. Bobby wiris a,cr trredeib,da,ts kte' that thc Lees rvere i'experie,ced anrl u,sophisticatecl i'r,estor.s.

22' Lr or abor'tt August 2010 a,cl agai, i, october 2010, IVh.s. Lee spoke rvi,r theBobby willis rega,cling atr irtvestrrert prog.aur for the Lees. Bobby willis represe.ted

ittYestttreut progl'am lbr rlre Lees rvoulcl be set up $,ith a thir.ty year no sell policy arrcl that fbrfit'e yeals all inconre rvould be leirrvestecl tbl gro$,th, In ycar five,Z\o/oof iilcorne rvoukl be

of "industrial re,eurie borcrs" (',IRB") triat lre rvas i, trre process of.a,.augirrg to be

e t'eplresettted fL['ther t]rat lie hacl tlte krtorvleclge, experierrce, aucl contacts rvithi. Nerv

Mexico thc federal go,c,u,c.t to obtai, IRB fina*cirg for the Kirtla,d project,

to tlte Lees' In year tert, 50% of ittcorne u'oulcl be rlisb,rsecl to the Lees. I, year fiftee,,7s% income rvill be disbursed to tire Lees.

23' otr or about octob et'2!,2010, coorey co,firmecr tire abo'e structure of the Leesprogl?rn, rvhich rvas directed and set up by Bobby lVillis.

' In ocfobel of 2010, Bobby willis lepreseiltetl further to fulrs. Lee that about 50% oftDent H'oultl be irtvested irt A* vacattf land for flitule grorvtlr anrl abcrut 50% ri,oulclire i, a

tio, of REC a'cr si.gre farniry p.ope'ties i, the lorv-e,cr rnarket,

5 ' Each of these l'epresetttatiorts and assur?nces rva.s false antl liatcriaI anrl Bobby willistnade of thenr fbl the pulpose of irlducing the Lees to enIust theilrnoney to Sirn for invcst,rent,

Itr tlte coursc of these discussious, Bobhywillis I'epr.eselteil turtler to Dr. car:ier rv'orelaled te infortnatiort to tlte Lees that lte *'ouirl obtain aclditional fi*ancfurg for the Kirtla.il p.ojcct

Dr" Lce n'as prirl' to dlaft docurnents, contracts and diagr-aurrnafical rloclcls lbr the

for i

of recruiting physicians fol the Kirtland Project,

28, Each of these additional r'eptesentations and assurauccs \vas fulse and material and

Willis tuade eaclt oltltetn for the lrulpose of inducing the Lees to entrLrst their assets to him

trent,

29, Iti reliance on these misrepresentations and false assul?nces, the Lees agreed to irrvest

the of One Million Dollars ($1,000,000) rvith BobbyWillis. The inveshnent occun'ed in

Sept and Octobel ol2010.

Cooney's Participation irr Designing, Inlplementing,aucl l{anaging The Lees' Investnients

O\Y

30, Bobby Willis recomrnended to Dr'. Garnel tlrat he engage defendant Cooney to assist

Willis rvith designiug, irnpletuentittg, and managing the "investurent plopgam." Bobby \Yillis

t'epresented that he n as tlte managei' of his investrnent and tlrat Cooney rvas his agerrt.

31. Bobby Willis explained that Cooney was a certified public accountant, real estate

iu Nerv Mexico arrd Colorado, aud expert irr mauagiug tax-deferrcd rcal estate exchangcs aud

a Durango, Colorado corlpatty trr:1ow11 as defendarrt Crq.A, Ilc. tlrat specialized in fhcilitating

sucir changes,

32. Tluough C&A, Iuc., Coottey hel<l hirnself out to the public as a tax-defened exchange

ist" recogtrized as such by the Federation ofExchange Accomrnodators and accredited by the

Ne'rv ico Real Estate Cornmission as ail inshustol of a tax-deferred exchanges continuing

ed n course for Nerv lvlexico license<l real estate brokers.

33. Bobby Willis and Cooney further rcprcsented that Cooney was certified by the IRS as

ian of another inrlivirlual's IRA accouni.

34. The Lees rvere also re-assured by the fact that Dr. Garneu rvas using Cooney.

35' TheLeesacceptedBobbyWillis'srecomrnendationto engageC&A,Inc. and Cooney.

Willis attd Cooney recommended that to implerneril the "investrnent prograrn" an individual

account should be opened at a bank iu Durango, Colorado aurl BobbyWillis and Cooney

use tlte funds fiorn this accouttt to invest in JTB 3 to acquire real estate for tlie "investrnent

,)

Lees

36. Each of these additional replesentations and assul"nces was false and rnaterial and

Wiltis and Cooney rnade each of them for the purpose of inducing the Lees to entrust their

to him for investrnent. The falsity of these representations did not becarne appare*t to the

il about the middle of 2012,when Dr. Gamer called Dr. Lee ancl saicl "let's meet."

3'1. AdditionallS Bobby Willis artd Cooney recomrnended that the real estate in the

"iil ttnent pt'ogratn" should be held in a Colorado Iirnited liability company to be known as

*rJ C, Lee Real Estate IRA, LLC" ("Lee LLC), a Colorado Limited Liability Cornpany. The

Lee rvas set up rvithin the IRA account for the pulpose of "investing" in JTB 3,

38. In late August 2010, Cooney furnished the Lees rvith an operating agleeurent for Lee

A copy of the Operating Agi'eeurent is attached as Exhibit A.

('o

39. The operatitrg agt'eettreltt pror,ided tlrat Cooney Real Estate Lrr.estments, LLC

e.v LLC'), a lirnited iiability company that Cooney organized on May 19,2010, u,outci

il]al

aud

Lee LLC. Ott infottnation and beliel; at all times rnaterial helcto, Cooney LLC rvas oryneil

.aged by Coottey and seryed as Cootrey's altel ego and nourirree fbr purposes of'assisting

Bohb Willis with the desigrt, implemetrtalion, and rnanagernent of the Lees' "inveshnent prograrn"

LLC.

alrd h rnaking real estate investrneuts ort the l.ees' behalf,

40, hr Augr.rst 2010, Cooney also flrndshed the Lees rvith a r]lanilgenleut ageetrtetit

bet Coorrey LLC and Lee LLC. A copy of the nranagement agleement is attached as Exhibit B.

Trad ional Investments) in Lee LLC by, arnoilg other things, executing docutnents uecessary for

g, selling, and maintairring the real estate investments transacted through Lee LLC and

ing reuts from the rental of any such real estate, rvhich such rents 1vele to be deposited into a

wou

uew'

("1s/

("1s/

41. f ire managernent agleetnent provicled that Cooney, actirtg tllnugh Cooney LLC,

have the sole and exelusive rlght to manage tlte Properly (Real Estate and Other Non-

vidual retirement account at a barrk in Durango, Colorado knorvn as lst Southwest Bank

ilhwest IRA') for Lee LLC and into a separate demand deposit account at the sarne bank

'htyest Bank Account") for the Lees' beneflt, The agreement provided further that as

tiorr for seruing as rnanagsr, Cooney LLC rvould be paid an "annual asset fee" of "A.25o/o of

the et value of all assets acquired for [Lee LLC] payable qualterly in afl'ears." The rninimurn

I asset fee rvas set at $500.00. The agreernent also provided that Cooney LLC rvould charge a

:y managernent fee" of "10.00% of rerttal incorne plus any costs ittcut't'ed."

42. Reiying on Bobby Willis's and Cooney's claimed expettise and tiusting that the

irr or about laterveie sound, at Cooney's direction and with his guidance

2010, the Lees attetnpted to open the lst Southwest IRA,

43, On ol about Octob er 21, 201 0, Coorrey notifjed the Lees that tlte Defcitdartts rvere

up JTB 3 for the irrvcstrrents for the {Irtd, Cooney also notified the Lees that the Defendants

oving the propelties into JTB 3. Cooney sent the Lees a draft copy of the operating

lolls

l0

nt of JTB 3, rvhich specified that the Lee LLC rvas a 5o4 urernber in JTB 3.

JTB

and

44. According to the operating agl'eement for JTB 3, Cooneyrvould be the manager of

and had full porver to act on behalf of JTB 3 in all rnatters ircluding executiou of agrcernents

The purpose of .lTB 3 u,tls to acquire, develop and rnanage leal property,

Ott infonrtatiott artd belief, tlre articles of organization for iTB 3 rvere t'iied on

9,2010,

46, Upon information attd belief, Cooney rvas not qualified to be a custodiarr of tire Less

IRA nt, Cooney told the Lees to hansfer their retirement funds into his accouut because

rvas unable to set up a Roth IRA account on behalf of the Lees as the custodian of their

at l"tSoutlnvest Bank,

47. On or about October'25, 2010, the Lees tmnsfemed a paynent of $900,000 to the

for the 5% interest in JTB 3. A copy of this, LLC accouut allegedly in consitleration

ion is attached as Exhibit C,

48. On or about November I 8, 201 0, the Lees transferred a paytent of $ I 00,000 to the

, LLC account allegedly in cousideration fol the balance of the 5olo interest in JTB 3. A copy

tLairsaction is attached as Exhibit D.

49. OnoraboutDecernberZ'7,2010, theLeestrunsferued apayrnentof $1,145.21 tothe

i LLC account allegedly in consideration for the IRA rollovel costs in conjunction rvith the

purch of the 5olo intelest in JTB 3. A copy of this transactiou is attaclred as Exhibit E.

50. I* or about lhe sutnmet' of 20l2,tlte Lees first Ieamed tlrat Bobby Willis and Cooney

and etnbezzled the erttilety of their S1,001,145.21 investrnent, rvhich the Lees

45.

11

ited into Cooney LLC.

51. Prtor to the rniddle of 2012, the Lees rvere beirrg teassurcd prirnarily by Dr. Gamer

that ir investrrent rvas doing ivell. The Lees requests to attend the JTB 3 amrual meetiugs rvere

igr The Lees \vel'e uever notif-red of any anrtual meetings to attend, despite Cooney's clairn that

a ing had been held sometime in early 2011.

52. Willis, Cooney aM Cooney, LLC have failed to returl the Lees' $1,001,145.21.

The Defendants' Property Transactiotts

53. On infonnatiou arrd belief Bobby Willis aud Cooney enteled into transactions and

cond ed the businesses of C&A, Inc., Golden Rule, JJ Bond, iTB 3 and JTB 4 rvith teckless

di rd of the corporate fonn, Bobby Willis and Cooney rvere trausactiug business as C&A, Inc.,

Rule, JJ Bor:.d, JTB 3 and JTB 4 as rnero alter egos to thetnselves, artd as such, the coufi

also disregard the corpot'ate fornr of all of these eutities.

54. On infor:nation and belief the follorving pruperties, inler alia,were at the rrratel'ial

orvned by Bobby Willis, Golden Rulg JJ Bond, JTB 3 aud/or JTB 4 of rvhich the I'}laintiffs

arr iuterest:

a tract of land irr San Juatt Couuty located on County Road 6446 ("CR6446 Tract");

a tract of land itt San Jnau Couttty located otr Couttly Road 6500 (CR6500'l't'ucl");

a palcel of real property located at 691Road 6100 il Fruitlaud, Nerv Mcxico at rvhich

a business krro\r,Jr as "Cline Video" lrad operatecl ("Cline ltideo Property"):

(i) trvo palcels of re al e state located at 19 Road 6330 and l0 Road 6271 in Fruitlatrd,

Neiv Mcxico, (ii) the "seller's interest" in a real estate colrtl'act peltaining to a 1:aroel

a.

b.

rl,

1^

of real estate located at 20 Road 6335 in Fruitland, and (iii) a parcel of leal estate

locate<i at 906 Walnut l)r'ive iri Farrnington, New Mexico (collectively,

" F r u i tl rur d /Fann i rtgl on P roper ti e s");

e. a palcei of leal property, including an otfice building ancl othel improrremeuts

tlieLeon, located at 410 East l)rivq in Malshall, Micliigatr ("fufichigan OlJice

D ,r l.uililGt|lg );

f. an itrcotne producing property, tlris iuvestment consisted of six residential rental

propelties located on West Oak Street in Bioornf-ield, Nerv Mexico ("Oak Street

Renlal Proper4l'),

55. Upou infonnation and belief on ot about May 21, 2010, Bobby Willis, tluough arr

tifled irr the tmnsaction as "Golden Rule, LLC", purclrased CR6446 Tract. On information

and ief, for the entire CR6446 Tmct, Bobby Willis paid $354,380.

56. Upon infonnation and belief, Bobby Willis aud Cooney closed the sale of the CR6446

One- ird lnterest to Gauret' LLC on or abont May 27 ,201 0 tluough New Mexico Title Co. for $ I .2

millio

57. Upon infonnatiou and belief, Cooney, purporting to act as nrarraging rnelnber of

C LLC, rvitltout Dr, GatLtet's knorvledge, subsequently signed a rvaranty deed dated July27,

2010 rvhich Garnet' LLC conveyed the CR6446 O*e-Third h:terest back to Golden Rule.

's signafute on the deecl rvas acknowledged before a Notary Public on August 16,2011.

58. Upon irtfonuation and belief, on or about May 21,2010 Bobby Willis and Car:'ie

n furtt caused tlre cntity knoln as "Golclen Rulc, LLC" to purchase CR6500 Tract that u'as

IJ

alrd

Nor

rvith the CR6446 Tract,

59. Upon infounatiort and belief, BobliyWillis, purportedly as rranagingmenrber ofthe

knorvn as '*Golden Rulg LLC" subsequently signed a rvamanty deed dated July 27 ,2010 by

Golden Rule conveycd the CR6500 Tract to JTB 3.

60, Uport infonnation and belief, on or about April 14, 2010, Bobby Willis, acting

tluou Golden Ruie, purchased Cline Video Property.

61, Upon information and belief, Cooney, subsequently signed a rvan:anty deed dated

Nov 4, 2010 try which Loman LLC conveyed the Cline Video Property to JTB 4,

62. Upon information and belief Cooney, purporting to act as ruarugel'of Lornan LLC

ithout Dr, Garner's ot Mrs. Lornan's knorvledgo, subsequeutly sigrred a wananty deed dated

4,2010 by rvhich Lomau LLC conveyed the Fruitland/Farrnington Property to JTB 4,

63, Upon infonxation and belief, Bobby Willis and Canie Willis in their nominal

as co-trustees of ths Willis Trust signed a rvaranty deed dated July 26, 201 0 by which they

the Oak Sh-eet Rental Propelty to Gamer LLC, Cooney, purporting to act as rnanager of

LLC and u,ithout Dr. Ganter's knorvledge, subsequently sigued a wallauty deed dated

ber' 4, 20 i 0 by which Garner LLC conveycd the Oak Street ltental Plopelty to JTB 4,

64. On infbrmrttion and belief, Bobby \\rillis and Carlie Willis acquired a Michigan

Building. Otr information and belie[ the Michigau Office Building is cun:ently owled by

r Rule, and is subiect to the receivership order irr the FID Case.

65. Upou infonnirtiort and beliefi the flurds plovided lry the I-ees rvcrc used in part to

upkeep and/ot maintain sorne or all of the above described properties.

14

Conversion of Other Cash Assefs

The Lees transfeu'ed cash in the arnount of $1,001,145,21 to Cooney LLC.

On ilformation and belief BobbyWillis and Cooney converted this entire balance.

Bobby Willis and Cooney have not returned any of tho Le es' $ 1,00 I ,145.21 to the

STATEI\{trNT OF CLAIIUS

69.

70.

Count I[Breach of Ficluciary Duties]

Plaintiffs incorpotate by reference and reallege each of tlrc foregoing allegations.

Bobby Willis and Cooney rvere fiduciades of the Lees.

71. TIte Lees lepeatedly requestcd infotlratiorr legarding thc status of theil investrneut

201 I artd 2012, l'he Lccs also rcquested to attend arry ureelings of the conlpalty in u4rich they

a perceutage. Horvever, neithel Bobby Willis nor Cooncy supplied any specitic inlbntratiorr

to the regarding the ureetings or horv theilfunds were beirlg invested, In January of 2012, the

Lees reassut'ed by Dr. Camer that theil ittvestmeut rvas safe and sound and that they had not

lly lost any funds.

72. By actirrg and failirrg to act as alleged herein, Bobby Willis and Cooneybleached their

fiduci dLrties,

73. BobbyWillis's and Cooney's breaches offiduciarydutyproximatelycaused the Lees

rr cornper)satory damages in au amonut to bc established at hial.

74, Bobby Willis and Cooney breacherl thcir fiduciary duties intentionally or,

66.

67,

68,

altelrr ively, rvith reckless disregard of their duties to the Lees.

15

Couut II[Conversion]

75. Plaintitfs incorpot'ate by t'eference and reallege each of the tblegoing allegations.

76, By acting arrd failing to act as alleged heleil, Bobby Willis antl Cooney converted to

their' n use or for the use ofothels iu concett rvith thern money belonging to the Lees and Lee LLC

1n atnount of at least $ 1,000,000.00. A copy of these transactions is attached as Exhibit F,

77 , Bobby Willis ar-rd Cooney cottr.erted these monies inteutionallyor, alter:ratively,, rvith

reckl disregard of the Lees aud Lee LLC's rtghts, title, and intelest in and to lhe rnonies,

Count IIIIFrauclJ

78. Plaintiffs ittcotpolate by t'efercnce ancl leallege each of the foregoing allegations.

79. By acting and failing to act as alleged herein, Bobb1,\\Iiltis and Cooney fi.audulently

the Lees and Lee LLC to enltust tlte surn of $1,001,145.21, or such other amount to be

at trial, to them for iur.estrnert.

80. Bobby Willis's and Cooney's fi'aud proxirnately caused the Lees and Lee LLC to

suffer' rnpensatory damages in an arnount to be established at trial.

81. Bolrby Willis atrd Coottey rlefiaucled the Lccs and Lee LLC intentionally or',

ii,ely, rvith reckless disregarcl of their duties to the Lees and Lee LLC.

Count IY[\Yrongful Securities Sales Practices]

82. Plaintiffs incorporate by refbtence and reallcge each of the folegoing allegatiorrs,

83. By acting artd liriling to act as allcgcd hcrcin, Bobby Willis and Coouey employed a

schetne or artifice to defi'aud" the Lees and Lee LLC rvithiri the rneaning of tlte Nerv Mexico

r6

nn Secudties Act, N.M, Stat. Ann. g 58-13C-501(A).

84, Byacting atd failing to act as alleged hercin, BobbyWillis and Cooneymadeuntrue

of fact and faiied to sfate necessaly rnaterial facts where such all ornission rvould be

lnls ding lvithin the meaniug of the New Mexico Uniform Securjties Act, N.M. Stat. Ann. $ 58-

I JL,. l(B),

85. By acting and failing to act as alleged hercin, Bobby Willis and Cooney engaged in

acts,

LLC

s01(

Mex

86. Bobby Willis's aud Cooney's rvrongful secudties sales practices proxiuately caused

the and Lee LLC to suffer compensatory darnages in an arnount to be established at trial,

87, Bobby Willis aud Coouey deflauded the Lees and Lee LLC intentionally or,

tively, rvitli reckless disregard of their duties to the Lees arrd Lee LLC.

Count \/IWrongfirI Investmcnt Advisory Practiccs]

Plaintift-s ittcorpoltrte by relbrence and reallege each of the foregoing ailegatious.

By acting and failiitg to act as alleged herein, Bobby Willis and Cooney engagecl in

the ttess of pr'oviding the Lees and Lcc LLC rvith invcstrncnt advicc unlarvflllly nndcr thc Ncw

Unifomr Sccr:rities Act, N.N4. Stat, Ann. $$ 5S-13C-403, -404.

90. Byacting and failing to act as alleged herein, Bobby\Yillis and Cooney employed a

ices or a coul'se of business, rvhich operated as a fi'aud or deceit upon the Lees and Lee

ithin the meaning of the Nerv Mexico Unifonn Securities Act, N,M. Stat. Arur, $ 58-13C-

scltetne or artifice to deh'autl" tlte I-ees aucl Lee LLC arrd otherlvise cngaged irr acts,

, and coutses of cotrduct tltat opelatecl as a fi'aud or deceit upou the Lees aud Lee LLC

oouo.

89.

"dcvi

practi

t7

u,it llre rrreaning ol'N,lv{. Stat. Arrn. ss 58-13C-502(AX1) ancl-(2),

91. BoblryWillis's and Cooney's rvrongfi.rl investrncnt advisolypractices proxiuiately

the Lees artd Lee LLC to suffel cotnpettsatory darnages in an arnoult to be establisSeci at trial,

92' Bobby Willis attd Cooney deflauded the Lees ancl Lee LLC intentionally or,

tiveiy, u'ith reckless clisregarclof theil duties to the Lee.s ancl Lee LLC.

Count VI[Unfoir Praetices Act Yiolations]

93. Plairrtitlb incotporate by ret'elence and reallege each of the lbregoirrg allegatiols,

94. By acting and failing to act as alleged irelein, Bobby Willis ancl Cooncy knorvilgly

thlse or misleading oral or u,ritten statelnents and other representatiorrs ancl rnacle tfueur rvit6 a

disregard for their huth in connection with the sale of investrnent advisory services in their

legul course of its trade ol'cotnfilelce.

95, The acts and failutes to act as alleged hercin constifute unfair or deceptive trarle

placti within the meaning of g 57-t2-2(D) of the Nerv Mexico unfair practices AcL

96. By acting and failing to act as alleged lrerein, Bobby Willis and Cooney also

uuconscionable trade pt'actices rvithin the rneaning of g 57- 12-2(EX1), -(2) of the Nerv

Mexi Urtfair Practices Act by takirtg advantage of the Lees' and Lee LLC's lack of knou,ledge,

cxpcricncc or capacity to a grossly unfair degrcc.abiti

under

q7, Bobby Willis attrl Coottey are liable to the Lees autl Lee LLC for actual clamages

-57- 12- 10(B) of the Untair Practices r\ct in a principal amount to be established at the merjts

Bobby Willis and Cooney are liabie to the Lees and Lee LLC for treble darnages

heari

98.

l8

Lee

as all

such

Coor

102. As co-conspirators and as pzuties rvho aided and abetted and acted in concertrvith tlte

other, of defendants is liable to the Lees aud Lee LLC for the rvrongful conduct of the others as

hereirt.

Count VIII[Racketcering Act Violations]

$ 57-12-10(B) of the Unfair Przctices Act.

Count YII[Civil Conspiracy, Aiding and Abetting, arttl Concerted Actionl

99. Plaintiffs incorpomte by reference and reallege each of the foregoing allegations.

100. All the defendants pursued a colrunon coulse of conduct, acted in concett and

rvith, and gave substantial assistance to one auother iu furtherance of tlreil comnon plau ot'

and aided and abetted each other in commission of the wilongs alleged hereirr.

101. The purpose and effect of such common plau or design rvas to defraud the Lees and

to breach Bobby Vlillis's and Cooney's fiduciary duties, and to comr.:rit the othet'lylot1gs

herein by depriving the Lees and Lee LLC of the rnonies at issue hetein and to profit fiorn

ivation to the defendants' oln advantage and for their orvu benefit.

103. Plaintiffs iucorporate by lefelcnce and leallegc each of tlte loregoing allegations.

104. By acting arxl faiiing to act as allegetl ltet'eitt, Bobby Willis, Carlie Willis, and

cngaged in a patterrr of lacketeelilg u,ithin the meauiug ofNerv Mexico's Racketeering Act,

N.M. tat. Aln. $$ 30-42-3(4), -4 (1978).

105. Bobby Willis's, Can'ie Willis's, and Cooney's patteir of racketeet'ilg proxirnately

the Lees and Lee LLC to suftbr compertsatory dauages irt att aLtttlttrtt to be established at tt'iai,

19

106' By acting and failing to act as alleged herein, Bobby lVillis atd Cooley are liable to

the aud Lee LLC for actual datnages anrl treble damages uncler N,M. Stat, Arur. $ 30-42-6(4).

Count IX[Breach of Contract]

107. Plaintiffs incorpotate by reference and reallege each of the foregoing allegatio*s.

108' Bobby Willis and Cooney agleed to fumish to the Lees ancl Lee LLC the services of

their rnoneysafelyand prudentlyancl to fumish suitable fiuancial and inveshnent advisory

09' By acting and failing to act as alleged herein, Bobby Willis and Cooneybreached t6eir

10, BobbyWillis's and Cooney's breaches of agreementcaused theLees apd LeeLLCto

rsatory daurages in an amount to be establishetl at trial,

1 t. Bobby rffillis and Cooney breached theit agreernents rvith the Lees ancl Lee LLC

irrtentio

interest

LLC as

lly or, altematively, rvith reckless disregald of the Lees' aucl Lee LLC's rights, title, apd

n the cash and real propefiy at issue herein,

Count X[Constnrctive Trust]

12. Plaintiffs incotporate by reference and reallege each of the foregoing allegations.

13. Upon infonnation attd belief, defendants used money belonging to the Lees and Lee

lleged herei, to acquire i,terests in the following propertiesr

CR6446 Tract;

CR6500 Tlaet;

20

D.

E.

F,

1i4,

Cline Vidco Propefty;

FruitlandiFannington Properties;

Oak Street Rental PropertY; and

Michigan Office Building.

The Lees arrd Lee LLC are entitled to imposition of a corrstructive trust on each of

ies, fo1 theil [enefit, to secure payrnent of the amouttts due to thern,

rvith

I 15. funpositiol of the constructive trust for the benefit of the Lees upon these properties,

riority over the interests of defendants in such property, is ttecessary to prevent defendarrts'

emichrnent.

Count XI[Accounting]

116. Plairrtiffs incorporate by reference and reallege each of the foregoing allegations,

Ll7, In the circunrstances presented, tlie Lees and Lee LLC are entitted to a complete and

accounting in detail of all the Inoney they enhusted to Bobby Willis and Cooney.

PRAYER FOR RELIEF'

WHEREFORE, plaintiffs Joseph C. Lee, Theresa K. Lee and Joseph C. Lee Real Estate IRA,

for the follorving reliefl

Entry of judgment in their favor attd jointly attd severally against defeudants for

I posdudgrnentnsatoty damages in au amount to be pl'oven at trial, plus prejudgmeut and

thereort to the fullest exteut pennitted by New Mexico larv, plus costs;

B. Entry of judgrnetrt in their favor and jointly arrd severally agairst defendants for

damages in an amount to be plovelr at ttial, plus prejudgtnetit and postjudgrnent interest

21

to the fullest extent per:rnitted rry Nerv Mexico Iaiv, prus costs;

C' Entry of judgnent in their favor anrl jointly ancl severally against defeldalts for

puniti' datnages itt att arnount to be pl'oven at hial, plus prejudgrnent and postjuclgnrent ilterest

to tho fullest extent pe,nitted by Nerv Mexico law, plus costs;

' Errtry ofjudgrnent in their favor aud jointly and sevemlly against defendants for tt.eble

in au atnouut to lre plovell at trial, plus prejuclgrnent arrd postjudgrnent interest thereon to

the tulI extent perrnitted by Nerv Mexico larv, plus costs;

' Entry ofjudgtneut in their favor ancl jointly and sevelally against defen4alts for

,'e,Jar$s' of the rcal estate and other putchase transactiots at issue herein and a refurrr to such

plainti

extent

arvard

(c), -(F

30-+2-

of the illolley they paid, plus prejuitgrnent and postjudgrnent interest thereon to the fi.rllest

tted by New Mexico lal, plus costs;

. Entry ofjudgrnent in their favor aud jointly and severally against rlefendants for a1

attomey's fees under the Unifonn securitiesAct (N.M. stat. Ann. gg 5s-l3c-s0g(BxI), -

l), the Unfair Practices Act (N.M. Stat. Ann. g 57-12-10(B), and the Racketeering Act, g

) to the fullest extent pennitted by Ner.v Mexico larv;

Entry of an order compelling an accounting as requested herein; ancl

An award of such other and furlher relief as is just ad proper.

22

Dated: Albuquerque, Nerv MexicoApril 8,2014

"Electronically fiIed"

/s/ Paul Melendres. Attorney at LarvMelend.res, Melendres & Hauigan p,C.l0l7 sth Streer NWAlbuquerque, NM B7t0Z(s05) 243-83 I 0 / fax Z4j-92T lpaul@nelendt'eslarv. com

23

"t-

OPERATING AGBEEMENT

JOSEPH C, LEE RtrAL ESTATE IRA, LLCA Colorado Llmited Liability Company

The undersigned, Joseph C. Lee IRA, as sigilatory to this Agreement, does lrereby

enta'into this Operating Agreement, at Durango, La Plata Coturty, Colorado, effectivethis l 9th day of A.ugusti 201 0, under the name style of JOSEPH C. LEE REAL ESTATEIRA, LLC, a Colorado Lirnited Liabififf Company, (the "LLC').

TInkoduction

The party has this day formed a limited liability company for the sole purpose oforvning real estaie and other non-traditional investrnents in their Self-Directed IRA withl'r Southwest Bank, Druango, Colorado.

II.Place of Business

The priacipal place of bus,{ness of the LLC shall be 33 Invemess Place, Durango,Colorado 8l 301, or other such address ts 'rvhiah the business may from time to time bo

moved.

IU.Durationof ths LLC

The LLC sltall commence immediately, upon the signing of this Agreement andshall continue for a term ofnot to e.xceed ten (10) years thoreafter unless terrninatedsooner by operation of larv or by agreement or reenacted after such primary term for strchadditional perlods as is determined by lhe member.

ry.Purpose

The purpose ofthe-LlC ls to buy, sell; lease ald develop real propertry andperform prqperty management for its membef. These fimotlons wilt be performed in theUnited Slates of America.

.tr,{emborPlrur*uer.

EXHIBIT!fi "A"

l

v,Rigbts and Duties of ihe.Member

' The menrber agrees to undertake the responsibilities to perform the flInctions ofthe LLC.

u.Costs and Expenses

AII exponses and debt service payments are to be paid by the LLC.

VII,Debt

The indebtedness, if any, for the property acquired by the LLC shall be in the

name of the LLC,VIH.

Meetings

The Member and Man*ger, as defined in Section IX below, shall meet annrrally toa$sess the function and uso of the LLC. The arurual meeting shall be lreld on the second

Monday of January, begiruring rvith year 20I i. A special meoting of the member and

manager shall be held and recorded as properly is acquired and sol<l by the LLC.

ix.Managoment

Management of said LLC shall be by Cooney Real Estate Investments, LLC,(Manager). AII duties reqnired to be perforrned to accomplish the purposss of the LLCshall be performed by the Manager, inclrrding exeouting docuraents necessary to buy, selland maintain real estate and olher non-traditional investments.

The LLC books shall be mai,niained at the office of ihe Mauager at 33 InvemessPlace,Durango,ColoradoBl30l. Thebooksshallbekoptonacalendaryearbasisandshall be closed and balanced at the end ofeach calendar year, All required fllings shallbe prepared and filed as required by larv.

ffi**ru

\r

Books

.;-;-:;;---;l-:..i1-- --i+-:-rJJ;;'1" '"1:;:::--L_r'r:: :'l i:: iir': : ' ' :: 11: l : 1'rr' ' : :

1

)il,lnsuritrce

. Duriitg the holding of the acquired qqPedy, all insuranco lequired to be plaoed on

rtre acquir*d property shail be in the nam* of riru LLe i* the oity, ooulty and state the

properiy is located,

xII,Death of Mernber

ln the everrt oftho deelh of a member,lhe executor or personal representative of

the mernber shall continue with tlro management of the LLC'

IN W]TNESS WHEREOF,lhemembers have hereunto set th+ir hand the day and

year fust above written

JOSEPH C. LBE IRA

__ /:\-.

,/;.- ! - ,R+pr/osePh C\LeeWle{nber. *-

Timotliy J.

Cooney

STATE OFNEW IvIEXICO

COTINTY Of ?:fr,,*.r:*0, f.(o

The forogoing was executed and att'oSted to tU" I t aay of.lcrseplr C,Lec, a.s IRA Orvtler.

My Commission Expires; )1torroiSrral

Notary Ptrblic

vo, zotT

)) ss;

)

ATEOF COLORADO

cbuNrv oFLAPLATA

)) ss:

)

The foregoing was executed and attested 1s hs&*dav of 4+n4' 20i0, by

Timothy-J, Cooney as lvlember of Cooney Real Estate @En@s, LI"C'

My CommissiouExpires;seal +/rt/e,r<, ffi

@zoro

]\'IAN A GE I\'IENT r\ GR-EtrI{E NT

' TllIS AGRBEfuIENT is being erltersd into ort ttris, the 19th day of August, 2010,

and arnong Cooney Real Estate.lnvEsfrnertts, LLC (Manager) and Joseph C. Lee IRAOrmcr).

WHBRBAS, Owner has acqulred tbe properli desoribed as SEB EKHIBII'uA",TTACHED, the Property in lhe narao of Jbseph C, LeeReal Estate IRA, LLC, and

WIIEREAS; Mdhager has agleed to mariage the Properfy upon and subject to lheand provisions hereof,

W,.IIIEI{EFORE, for and in consideratjon of the prer:tises and the mutual covenants

i l:enefits herein set forth, Owner and Ma:'rager agtee that durilg the term of thisrment, Manager sirall bavo the sole atrd oxclusivo right to manage the Property,Estate and Other Non-Trarlitioual Inveshlents) in Owrtsr's Self-Directed IRA with

ist Southwesi Bank, Durango, Colorado, upon and subject to the fol]orving teffIls,ari<t mutual co1,en&ntsi

I. Managcmenl:

Orvrrer $atts to Managcr the solo anrl exclnsivB right to perform atl the dutres ofMatrager herein specified. Martager agrees to urrdertake the resportsibilities toperfornr all the drrties required to be performed to accomplish the pwposes of theOrvner, including sxecufing docume.pts neoess&ry to btty, sell and maintain tho

Properfy. 'Iho Manager wilL receive finy lent from any rental of the Properly and

pay the neoessary expenses of the Property,.included bu[ not limited to, taxe$,insurance, mirintenance, mofley managernont fees and proporfy ntanagemeni fees(not to be a d*ry of Manager).

The books shall be kept on a calendar yearbasis and shall be closed and balanced

rrt the encl of eaoh calendar year. Ali finanoial statements-ilrd 16;a peturn$ shirtl bpprepared and EIed as req-uired by larv, All necessary reporting to l'{ SouthwestBark, Durango, Colorado, inoludirrg valuation, will be promptly fiIed, Quarterlyrepo{ing ta tlie Owner will be fumished by the Man*gor.

Qa{= o,*., _]vlanager

Brrying Agent

*.P)"

2. Terml

The initiai term of this Agreement shall commurco on the d*te hereof and shall

terminate rvith the sale of thePrqperty, This Agreemerrt may be termilated by

eifher party for any reason u6:on thirty (30) dayp prior written notice to the other

party.

nents:3. Fces aud Disbursel

The followings'fees rvill be obarged by the Manager:

An::ital Asset Fee; A,25% of the marketv*lue of sll nssets

acquired for tho Orvner payabte quarterly inSrroars.

Miirimum Annual Asset Fee: $500.00

10.00o/o ofrental income plirs any cosls

incuned"Money Marragearent Feel

All rnonies received by Manager for.or ou behalf of Orvner and/or the Properfyshall be deposited by lvlanager in e bank to be deslgnated by Manager, A-fter allrpproved sxpert,ses and disbrusemelrts have be tnade by lvfaitager, tho remainingmonies, if any, will be paid over to i't Soutt*vestBank, Durango, Coloratlo fordeposit into Ownerrs IRA.

4, Govcrr:iug Law:

This Agreenreni shall bo govemed by artd constrr:e<la*d interpreted in accordaricewith the laws of the Stato of Colorado,

ManagurBuying Agent

VL o,r,,*,

[- --t -.--H , "'-W",'l'iI

II

I

5. No Joirrt Ventul'o or }flrt:rershipl

Owner and Matrager herehy renoun0o thc sxistsncB of any form ofjoint venfurc

or padnership beflveen them, and a$ee thai rtothing corrtained herein Or irt arry

document executed in conirectibn herewith shali be oonstrued 8$ making Managerand Owrrer joint verEuers or parkrers,

6. Modific.ttion or Tenrtinationl

This Agreemsnt may be amended, modrfted, terminated or r€leased only by aryritten inshlme,nt pxesuted by Manager and'Ownor.

7. Tottl Agrecment;

This Agreement is s total and completo integtatiorl of any and all, undertakingsregarding management existing botwoon Mdnager atd Orvner and zupersedes alryprior oral or ntiften agle$rnetrts, promi5es or rs,pteserltation$ betrveen them. Ths

headings ofthe vario*s paragraphs ofthis Agreenretrt ar6 for eonvenionce only,and shall not define, irrteqprot, affeol or prescribe tho msaring arrd interpretationof the provisions of ihis Agreement.

i agree with the terms artd condifions of this Management Agreement,

(Jrvucr:

J:rr*,4-

Albuquerquo, New Mexico 871 04

,-li

Managen

CooneyEeet Biatg Invesmrents, LLg33 Iriveraess Place

Duralgo, Colorado B 1 301

Personal Buying Agcnt of Aecount Holdcr:

By:

I

I

I

,)Ir u.p-( -r'-.

u

lrr i'i'-{l'f 1

!]i-:

5oi inlcrcst JTB Dcvelopdrcnt Piopcrlics 3, LLC.

Nnrnr of I ent {i.8., rranis o I assct ifl l,LC, LP or C-Corp, sec clr$ckli.sl ol resl propel(y)

1. Accttu

J

t'riilrfiry l'

2. Fundi

_vI

x'i(h [''ir'sl

I agrcc loinc,lutlc.t, but

Proccss b;':

Tlln Codc:

1\*0tesi

IRA Payment

/ Pnyment Itrfornration

Instrucf ionsWnUi ot'

-

VIA Check or'

x H't S{},{,.il,ttlt'jtil sf $-.*i;l B-lk

and Ftrndirtg fnstt'ttctions

c =LE&___s First Namo [1.1, Ltst Nrtme

WV ]r4crnbcrshio in LLCNumt er Purposo of Fayment (c.g., "Mr:mbcrship in

LLC, Iixpcnse Paynl?nt, purchilsc ProFefiy)

Account#. R€Beffi ---

i\{emo Relcrcrtce (liscrorv #, APN #, Invoicc ll)

s900-00q _Amount

Iuter Officc Trtrnsfer_X- YIA

Bank NRnrc: Routirtg ll

Account Nn Coonsy lloa! Estnte Investnrtnts

-Actcunt

# 65610?495 -.-....----'-......'--

Olhtr Inst

3, Autlrot ti6n rnrrst bg nuthorlz.cd by thc A+courrtholtler, Bul,ing Agtut nnd Assct lVlnttnger for tlto nc+ottrlt on fils

llfivesl Bftrrl(,

c. indunrrriff, ricf+ur[ and holtt First Southrvest Bank harmless I'or nny clnims rrrislng oul olthis payment. 'l3tis

nor limired io, claims rfinl rhis pftyrnefit is not prtl(L'n(, proper. tega1, or div$slficd. l_nlso undsrsts[d nnd agrcc

first Sortlh

i rrclud i ng

subjcct to tlll and coirditiorrs oftirc nccouuthotrler'sct,stodial {rgrceo}cnt rvith First Southrvest []ank nntl irll npplic*blc Slate

and Fcdcrai

no,ix itlfr noi bc r"sponsibf" ,i,-inr.r'"ni a.tior rt'rnuiO tHi- in*+itment noled hcrein bucome subject ro defatrtl'

inr.iu.rry, tontrupily, or other coun oi,jer nr lcgal process, 'Ihe Payrncn{ nnd Ftrrxling ltlstrt}clions.aro,furlhcr

C' {"1o

Datll:

r). 1'.-\i

['erson*f lJu rrg Agent the Account lloldcr

Tinr Coorrcy r\s:;ut it'lonagct

Off ice U

EXHIBIT

tr *n,'ELJ

il ":t')'' I lr

orir,., ' 7,,,,.;1.-t(:

? i" r.;

Olly;

I 1;,tl'llt

t'n nlirry

,r'$Nittne ttl

2. FuntlX-V

Bunlt N;r

,\ cr'r) tt t) I

i / Payrtrcnt Infornratlott Account # wffieereb

rlccrtunth Filrt Ntrrnt-Q_ __"r_g.t___-. 7rF"J4 -It{,1. l,as{ Nrtnre

ln s fru cti o ns

r\ WIR[,] or VIA Checlt or' .liVtn lntsr Officc'l'r;tnsfrlr

\olAlt4rilrlr I.l IrJrEr'1r. fi'-r'tiotr nrg.sf lrc uulhnrize4 hy lho Aclorrrrthotdcr, l]uying Agent ortd Assot itl*ortger frrr llio accorrrtt ott lilc

lllttrk.

I iU:r!'c l(linultttlcr. r i)- t)ot lin\it0d irr. clitims tha( lhix pilyrlrtnt is itrt prudcrtt, prttpct, lcgal, 0r rtlYct'slllctl. I olso trttdcr.s(iintl itnd rtgtert

IRA Paylnent and Fumding Lnstructions

ltirtc: ---llll:'1'-

e Only:

_ f)atcl

rlI,t(t

i)(hcr

3, i\uthrvitfi I;irsl

lrirsl ,\ti rrcl rrrl i u;t

srrb.jcc{ ltunri I'crlcr,r h*vs,

l}rrrk *.ill not hc nrsponrihlc tn ilI,,o,tny irctitir't slrorrlrl Ibr: irrvr:s(mcttl notttl h,:rtirt htconrc strlrjt'cl lo rlciirrrll,

irrsolvcrtoy.tlartliruplcl,,rrrurircr0orrttorrl+rorlcgtl pruucss. t'hcl'itytttultlantl {rtlittJitlp, lttis{lilr'liortsuclitrllrcr

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EXHIBIT

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___-. r\ pprtrt,trl by:

Routing ll

. -\Mrl*r.!-ulrft i+r-- r*, L.L5.f',iiiruso ,if Pryruent (6g.. "N{cntburship irr

l-1,(). Iixponrc I'itytncnl, purchrrsc Propcrly)

ttii,*'R. r";i, ie ir:t.i*i +. aiiri'r[ rt"i,i.* tt t

,tpoo. aD

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Q,&* u,c.r

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nR-q Fayrnent and F ttnding trustructions

1. Accou I f ayment ftrfot'rir atiou Account # @keT@p

ilr,L

lta\lorrAk .

Purpose of Payuent (e.g., "Membership inLLC, Expense Paymerr, prrrohas+ prop+rry)

Memo Rclcreace (Bscrorv #, APN ll, Invoie #)

],te' ,r. r.{-{-ztNarne ol (1.c,, namo of as+t lf LLC, LP or GCorp, scc Amoultt

Insfmcfions\YIRE or YIA Check or ,r'-Wlrter Otrice Transfer

BflnN Narflo!

Account

OtberL\c*

0B must be sutborizeit by tbo Acrguntholdcr, Buyiug Agcnt and Asset IlIauager for tLe'rtcouot ou file

Benlc

;e, inrJoruni.fy, dofi.rrd and hold l-irst S+uthrygst Banli hannlas tor axy otaims arising out of this paymenL This

nbt timitra io, cltdms tlat tiis paynrenr is Eqt pludcnt, proper, l+gal, or divsrsificd, I also urderstaad aad Slee

subje+t to a1l

ald Frdcral 1

anrl cotrditioos of rl':e accouatlroldu's cusloClal agr,Jeilcnt rvith lrirsl Southrvesi Bar& and aJI applicablo Sta'te

Dare: { 4' ao'l ?

OfEce Us Onlv:

Proeess byi

Trau Codel Approverl try:

Lasl N*rus

Roudug #

3, Auth\Yltn I rrst

t agree toinclude\ butFtrsllncludiag

^+ecount# cqslt l$'s 49$

Bfif,k will aot be respoosibte tb talc any aetion should tho invsstfleu! noted hergin becomc subJect to defrult,

i::sqlt'i.noy, bariltrrptty, or odrer e.ourt oider or legal process, The Paymcni arrd F\rndlag Instrdctions are tbrthcr

EXHIBITbnn'tt8L_

:

,6

720 tvlain71

t soLrth\,\'dst BanKrmoga . C€n[er r Del Norie ' Corle:rango . Saguache . Pa9o5a SPri.rg$

PO Box 1119'Alatnosa, Colorado 8110'|or 866-641-fswB (3792)

'H C, LEE

&asg&

ACCOIINTNUI}IBER ...TERI'I ,,, I,IATURITY

055 6 5 8t67'1

01/01/10 runu rzl:l/ro,,,, PAGE 1

12l3 1/10 FArRi/TARKET VALUE

ffi

SAVINGS

noi,

INT

FAIR

ACCOUNT '

INCOMfNGA,t'IERII.ITERESTMembe

lieml:ersh

Trans fer

TYPE

RA

PAID TN.2O1O

TO ANOTHER SOURCE

OTH DEBTT TRANSACTIONS

DESCRTPTION DEBITS

IRE FROI{ JOSEPH C I,EE ROIJLOYER IRA TD

REDEEFlED .00

R CONTRIBUTION 1, 000, 000 . oo

., 3- ,]-45 ,2L

L ,145 ,21

1, 000, 000. 00

I'lARl(ri1', I"/AirUE Ott :-2/3L/LO .00

a€se€"{@D

(+)

{+)

(-i

p in Jt'B DeveloPmcnE

p in Jre Developnlent

to rier,i Cusbodian

CREDITS

1000000.001145.2r

ProperL ies900000.00

ProperL ies100000.00

7L45,2L

DATEoB/04/La

oB/Le/Looe/3A/10

tO/25/to

s-t/ts/to

72/2't /10

BAL.ANCE

l-,000r000,001, 001 , 145 ,21

101,145,21

L,L45,?.L

EXHIBIT!.EJ].

x-

.00

Member FDIC wr,rvw.fswb.com An Equal Horrsing Lender

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