Blue Citi LLC v. 5Barz International Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 5, 2020
Docket1:16-cv-09027
StatusUnknown

This text of Blue Citi LLC v. 5Barz International Inc. (Blue Citi LLC v. 5Barz International Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blue Citi LLC v. 5Barz International Inc., (S.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT USDC SDNY DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED Case No. 16-CV-9027-VEC DOC #: DATE FILED: 3/5/20 20 BLUE CITI, LLC, Plaintiff, v. 5BARZ INTERNATIONAL, INC., Defendant. ________________________________________/ RECEIVER’S EMERGENCY MOTION TO EXPAND RECEIVERSHIP Andrew K. Levi, the court-appointed Receiver for 5BARZ International Inc. (“BARZ” or the “Receivership Defendant”), through undersigned counsel, respectfully moves pursuant to the February 18, 2020 Order appointing Receiver (ECF No. 123) for an order expanding the Receivership to include Cubera International, Inc., Cubera Management, Inc., and any other Cubera-affiliated entities (collectively “Cubera”). The relief requested is necessary and appropriate because the Receiver’s ongoing investigation has indicated that the Receivership Defendant (and its affiliated entities) and the Cubera Entities are operated as one collective enterprise without due regard for corporate formalities. The Receivership Defendant and Cubera use the same office, and have the same employees and directors. Additionally, Cubera pays for the Receivership Defendant’s expenses it wants to pay for and the Receivership Defendant owns part of Cubera. The Cubera entities are either successors to the Receivership Defendant or the same entity as the Receivership Defendant’s entity. More specifically, one of the Cubera entities is the same company as one of the Receivership Defendant’s related entities, as it merely changed its name in October 2019, two months after Plaintiff Blue Citi moved to appoint a Receiver. Accordingly, it is appropriate to immediately expand the receivership to include Cubera to preserve their assets and bring them under the Receiver’s control. BACKGROUND I. The Judgment Against the Receivership Defendant On September 19, 2019, this Court awarded Plaintiff Blue Citi LLC (“Blue Citi”) a

judgment in the amount of $180,204.36 in damages, $116,950.00 in prejudgment interest, and $5,837.12 in attorneys’ fees, totaling $302,991.48. (ECF Nos. 78-79). The Court then awarded additional attorney’s fees in the sum of $5,552.50 by Order dated December 20, 2019, (see ECF No. 118), thereby increasing the judgment amount to $308,543.98 plus any applicable interest (the “Judgment”). II. The Court Appointed a Receiver over the Receivership Defendant Blue Citi then moved for an order appointing a Receiver to administer, collect, or sell any real or personal property in which Defendant-Judgment Debtor BARZ has an interest and to do any other acts required to satisfy the Judgment. (ECF No. 105). The Court granted Blue Citi’s

motion on December 20, 2019 (ECF No. 118). On February 18, 2020, this Court entered its Order appointing Andrew K. Levi as Receiver “of all of the real and personal property of BARZ…(collectively, the “Receivership Assets”)” (the “Receiver Order”) (ECF No. 123). The Receiver Order authorizes the Receiver to “take over immediate custody, possession, and control of BARZ, to collect any of BARZ’s accounts,…to obtain control of bank accounts, leases, security deposits, and keys necessary to collect BARZ’s assets, and to take any appropriate actions to satisfy the Judgment, including but not limited to obtaining copies of all books and records of any type or nature relating to or evidencing BARZ’s interests or rights in any Receivership Assets, including any entities in which BARZ has an interest, including any entities that are identified after the date hereof and BARZ’s interests, equity, shares of stock, and accounts receivable including those identified by BARZ in response to the information subpoena served upon it…” Id. At 2. (emphasis added). In its response to the information subpoena, BARZ identified various entities it owns shares of, including 5Barz Technology Holdings. (Receiver Decl., ¶ 3; ECF No. 103-1 at Answer to #9).

The Receiver Order also provides that the Receiver is “to identify by its review of the relevant books and records, and any other source of information, any entity in which BARZ has an interest, whether partial or impartial, and whether direct or indirect, and to include any such entity as part of the Receivership Assets.” (ECF No. 123 at 3). The Receiver Order further provides that “the Receiver may at any time apply to this Court for further instructions and orders related to this Order and for additional powers necessary to enable the Receiver to perform the Receiver’s duties properly at any time on noticed motion…” (ECF No. 123 at 5). III. Corporate Records Confirm Cubera Entities are Either the Same as the Receivership Defendant or Successor Entities.

Immediately after his appointment, the Receiver commenced investigating the Receivership Defendant’s affairs and discovered that the Receivership Defendant and Cubera are related entities, are operated as one collective enterprise without due regard for corporate formalities, and have the same employees and directors. (Receiver Decl., ¶ 5). The Receiver’s review of the public corporate records for the Receivership Defendant showed that the Receivership Defendant was incorporated in Nevada on November 14, 2008. (Id., ¶¶ 6-7). The Nevada corporate records show that the registered agent of the Receivership Defendant in Nevada is Nevada Business Services, located at 1805 N. Carson Street, Suite X, Carson City, NV, 89701, and that the registered agent individuals with authority to act are Ellen Ramsey and/or Clinton Reeves. (Id., ¶ 8). The Receivership Defendant was registered in Florida on March 6, 2014. (Id., ¶ 9). When the Receivership Defendant was registered in Florida on March 6, 2014, it listed Gil Amelio and Daniel Bland as directors, and Daniel Bland as president, secretary, and treasurer. (Id., ¶ 10). The last filed corporate document for the Receivership Defendant in Florida is dated June 13, 2019, and shows that its principal place of business and current mailing address is located at 78 SW 7th Street, Ste. 09-149, Miami, Florida 33130, and that

Gil Amelio and Daniel Bland are directors, and Daniel Bland is CEO and CFO. (Id., ¶ 11). The Receiver also reviewed the public corporate records for the Cubera entities. (Id., ¶ 12). Cubera International, Inc. was formed in Nevada on December 17, 2019, four months after Blue Citi moved to appoint a receiver, and a mere three days before this Court granted the motion to appoint a receiver. (Id., ¶ 13). The current directors of Cubera International, Inc. are Daniel Bland, Gil Amelio, and Samartha Nagabhushanam, and Daniel Bland is the current president. (Id., ¶ 14). The current addresses for these directors according to Cubera International, Inc.’s corporate filing is 78 SW 7th Street, Suite 09-149, Miami, Florida 33130. (Id., ¶ 15). While a Florida office address (the same as the one for the Receivership Defendant) is provided for Cubera International, Inc.’s

directors, Cubera International, Inc. is not registered to do business in Florida. (Id., ¶ 16). The Receiver found another Cubera entity: Cubera Management Inc. (Id., ¶ 17). Cubera Management Inc. was formed in Nevada on March 7, 2016. (Id., ¶ 18). Daniel Bland is Cubera Management, Inc.’s director, president, secretary and treasurer. (Id., ¶ 19). The Nevada corporate records show that the registered agent of Cubera Management, Inc. is Nevada Business Services, located at 1805 N. Carson Street, Suite X, Carson City, NV, 89701, and that the registered agent individuals with authority to act are Ellen Ramsey and/or Clinton Reeves. (Id., ¶ 20). A corporation by the same name (Cubera Management, Inc.) was incorporated as a Florida corporation on June 28, 2017. (Id., ¶ 21). The Articles of Incorporation for Cubera Management, Inc. show that the corporation was originally named 5Barz Technology Holdings Inc., and had a principal place of business address listed at 1805 N. Carson Street, Suite X, Carson City, NV 89701. (Id., ¶ 22).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Blue Citi LLC v. 5Barz International Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/blue-citi-llc-v-5barz-international-inc-nysd-2020.