Morgan v. Hartman

District Court, S.D. New York·Decided May 16, 2022·No. 1:22-cv-03367·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK MICHAEL MORGAN, Plaintiff, -against- 22-CV-3367 (LTS) SCOTT HARTMAN; MARIO MONELLO; VINCENT PUMA; THAE KWEON; THOMAS ORDER TO AMEND PINOU; ST. MARK’S WORLD ACQUISTIONS LLC; NPM MANAGEMENT, LLC; FLEX EMPLOYEE SERVICES LLC, Defendants. LAURA TAYLOR SWAIN, Chief United States District Judge: Plaintiff, who is appearing pro se, brings this action invoking the Court’s federal question jurisdiction, 28 U.S.C. § 1331.1 Plaintiff cites a federal criminal statute, 18 U.S.C. § 1341, as the basis for his claims. For the reasons set forth below, the Court grants Plaintiff leave to file an amended complaint within 60 days of the date of this order. STANDARD OF REVIEW The Court has the authority to dismiss a complaint, even when the plaintiff has paid the filing fee, if it determines that the action is frivolous, Fitzgerald v. First E. Seventh Tenants Corp., 221 F.3d 362, 363-64 (2d Cir. 2000) (per curiam) (citing Pillay v. INS, 45 F.3d 14, 16-17 (2d Cir. 1995) (per curiam) (holding that Court of Appeals has inherent authority to dismiss frivolous appeal)), or that the Court lacks subject matter jurisdiction, Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 583 (1999). The Court also may dismiss an action for failure to state a claim, “so long as the plaintiff is given notice and an opportunity to be heard.” Wachtler v.

1 Plaintiff paid the filing fees for this action. County of Herkimer, 35 F.3d 77, 82 (2d Cir. 1994) (citation and internal quotation marks omitted). The Court is obliged, however, to construe pro se pleadings liberally, Harris v. Mills, 572 F.3d 66, 72 (2d Cir. 2009), and interpret them to raise the “strongest [claims] that they suggest,” Triestman v. Fed. Bureau of Prisons, 470 F.3d 471, 474 (2d Cir. 2006) (internal

quotation marks and citations omitted) (emphasis in original). BACKGROUND Plaintiff Michael Morgan alleges the following: 1.Defendants have fraudulently induced me to sell them 80% Stocks of a St Marks’s world Inc on 04/25/2016 through making multiple false representations and promises. 2. Defendants had violated all the agreements including but not limited to the Stock Purchase agreement, Shareholder agreement, Service agreemetent and the stipulation of settlemtns. 3. Defendants never paid for the purchase price of the company to date aside from the down payments. 4. Defendants have not paid me ‘the plantiff’ Distributions to date for the years 2016-Present. 5. Defendants have violated fedral Laws and made me ‘the Plantiff’ Liable. 6. Defendants Have lied to courts in multiple proceedings about the nature of the disputes and the representations of the case. 7. Defendants have used the assests of the company to fraudulently apply and get approver for loans through misrperesntation of the status of the ownership. . . . 10. Defendants have conspired to Include me “The Plantiff” in an SBA PPP loan Fraud Scheme.

(ECF 1 at 5-6.)2

Plaintiff brings suit against individuals whom he appears to identify as partners in St. Mark’s World Acquisitions, LLC (Mario Monello, Scott Hartman, and Vincent Puma), as well as

2 All spelling and punctuation in the quoted material is original. against that company’s Secretary Thae Kewon and Chief Financial Officer Thomas Pinou. Plaintiff asserts that Pinou “executes the . . . fake accounting reports,” Thae “signed the SBA PPP,” Puma “orchestrate[s] the frauds” and Monella “signed off on the release of the UCC lien against the company.” (Id. at 11.) Plaintiff also names as defendants Flex Employee Services,

LLC, described as an umbrella company and “approaching company,” and NPM Management, LLC, the “shareholder company.” (Id.) Plaintiff seeks $10 million in damages from Defendants. DISCUSSION The subject matter jurisdiction of the federal district courts is limited. Jurisdiction is available in federal court only when a “federal question” is presented, 28 U.S.C. § 1331, or when plaintiff and all defendants are citizens of different states and the amount in controversy exceeds $75,000, 28 U.S.C. § 1332. “[A]ny party or the court sua sponte, at any stage of the proceedings, may raise the question of whether the court has subject matter jurisdiction.” Manway Constr. Co., Inc. v. Hous. Auth. of the City of Hartford, 711 F.2d 501, 503 (2d Cir. 1983); Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 583 (1999) (“[S]ubject-matter delineations must be policed by the courts on their own initiative . . . .”). “If the court determines at any time that it lacks subject-

matter jurisdiction, the court must dismiss the action.” Fed. R. Civ. P. 12(h)(3). A. Federal Question Jurisdiction To invoke federal question jurisdiction, a plaintiff’s claims must arise “under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. A case arises under federal law if the complaint “establishes either that federal law creates the cause of action or that the plaintiff’s right to relief necessarily depends on resolution of a substantial question of federal law.” Bay Shore Union Free Sch. Dist. v. Kain, 485 F.3d 730, 734-35 (2d Cir. 2007) (quoting Empire Healthchoice Assur., Inc. v. McVeigh, 547 U.S. 677, 690 (2006)). Invoking federal jurisdiction, without pleading any facts demonstrating a federal law claim, does not create federal subject matter jurisdiction. See Nowak v. Ironworkers Local 6 Pension Fund, 81 F.3d 1182, 1188-89 (2d Cir. 1996). Here, Plaintiff asserts that the Court has federal question jurisdiction of this matter because his claims arise under a federal criminal statute prohibiting mail fraud, 18 U.S.C.

§ 1341. His argument seems to be that he is a victim of Defendants’ unlawful activity, in that Defendants have “conspired to include” him in an unlawful scheme, and he seeks money damages from them based on their unlawful conduct. There is no private right of action, however, under this federal criminal statute, 18 U.S.C. § 1341. See, e.g., Off. Publications, Inc. v. Kable News Co., 884 F.2d 664, 667 (2d Cir. 1989) (noting that plaintiff “alleged the claim ‘ar[ose] under the provisions of,’ inter alia, the Mail Fraud Act, 18 U.S.C. §§ 1341 and

Morgan v. Hartman, (S.D.N.Y. 2022).

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