Raquel Chavez v. WYNAR

District Court, N.D. California·Decided November 8, 2019·No. 5:18-cv-02252·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION

RAQUEL CHAVEZ; LUPITA CHAVEZ; Case No. 18-CV-02252-LHK RITO CHAVEZ; ESEQUIEL LOMBERA, Plaintiffs, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S v. MOTION TO DISMISS Re: Dkt. No. 73 ROAHN WYNAR and DOES 1–100, Defendants. Before the Court is Defendant Roahn Wynar’s (“Wynar”) motion to dismiss Plaintiffs’ second amended complaint. ECF No. 73. Having considered the submissions of the parties, the relevant law, and the record in this case, the Court GRANTS in part and DENIES in part Wynar’s motion to dismiss. Id. A. Factual Background 1. Life Savers Concepts Association, Inc., Background In July 2012, Reverend Nigel Johnson founded an organization called Life Savers Concepts Association, Inc. (“Life Savers”). ECF No. 70 (“SAC”) ¶ 1. The purpose of Life Savers was to assist low-income homeowners throughout Northern California combat foreclosures during the financial crisis. Id. Life Savers’ business model was to enter into membership agreements with homeowners, whereby members transferred claims related to the members’ home loans to Life Savers. Id. ¶ 3. Life Savers then brought suit against the lenders who threatened to foreclose the members’ properties. Id. ¶ 6. Most members also transferred five percent ownership interest in their homes to Life Savers. Id. ¶ 3. Between March 2013 and December 2015, Life Savers assigned all of its acquired rights to Larry Brown (“Brown”). Id. ¶¶ 4, 5. “Based on these assignments, Brown claims to hold a 5 percent ownership interest in each of the properties that secured the home loans of the members.” Id. ¶ 5. The Office of the Monterey County District Attorney and the FBI have investigated Life Savers for fraud since at least 2014. Id. ¶¶ 7, 9. Plaintiffs in the instant case—Lupita Chavez (“Lupita”), Rito Chavez (“Rito”), Raquel Chavez (“Raquel”), and Esequiel Lombera (“Esequiel”)1—are alleged to be employees of Life Savers. Id. ¶¶ 24, 41–42. 2. The FBI’s Execution of a Search Warrant On the morning of July 11, 2017, at around 9:20 a.m., Wynar and several other FBI agents executed a search warrant on Life Savers’ Sunnyvale, California offices. Id. ¶¶ 23, 25. Wynar knocked on the door to the Life Savers offices. Id. ¶ 24. Three of the Plaintiffs, Lupita, Rito, and Raquel, “who all reside in the adjoining living quarters[,] were dressing or still in bed.” Id. Eventually, Raquel answered the door. Id. Wynar and the FBI team entered the Life Savers offices and attempted to open various office doors, but the office doors were locked. Id. ¶ 25. Wynar asked why the office doors were locked and who else was present in the offices. Id. Raquel replied that the office doors were locked because Life Savers did not open until 11:00 a.m., and Raquel indicated that the three other Plaintiffs were also present in the offices. Id. Wynar asked Raquel why Raquel had been sleeping in the Life Savers offices, and Raquel explained that each of the Plaintiffs had resided in the offices for approximately three years. Id. ¶ 26. Wynar was 1 The Court refers to the Plaintiffs by their first names because three of the Plaintiffs share a last name, and because Plaintiffs refer to themselves using their own first names throughout the SAC. See, e.g., SAC ¶ 24. initially surprised and alarmed when Raquel explained to Wynar that Plaintiffs lived in the offices. Id. Raquel also informed Wynar that one of the other Plaintiffs, Esequiel, “had special needs and was mentally deficient,” and that Esequiel “was taking medication and under the care of a doctor.” Id. ¶¶ 29, 30. At some point during the conversation between Raquel and Wynar, 30 FBI agents entered the Life Savers offices with guns drawn. Id. ¶ 27. Wynar produced “a folded piece of paper from his pocket” and informed Raquel that the FBI was there “to execute a search warrant for documents and computers related to Life Savers.” Id. Wynar told Raquel that Wynar would provide a copy of the search warrant to Raquel later. Id. Eventually, Raquel called out for the other three Plaintiffs to emerge from their rooms. Id. ¶ 32. Lupita emerged from her room “not completely dressed and barefoot.” Id. Lupita requested permission to return to her room to retrieve her blouse and shoes, and Lupita was initially instructed to wait. Id. “After some time,” Lupita was permitted to return to her room and fully clothe herself in the presence of male FBI agent, who accompanied Lupita to the room. Id. ¶ 33. Wynar and the FBI agents trained weapons on Plaintiffs. Id. ¶ 35. Wynar requested keys to the Life Savers offices from Raquel, and Raquel delivered Wynar a set of keys. Id. ¶ 34. Wynar then requested handcuffs from another agent, who allegedly told Wynar that handcuffs were not necessary but nonetheless complied with Wynar’s request. Id. Wynar handcuffed Rito and Esequiel. Id. ¶¶ 36, 37. Rito alleges that Wynar grabbed him “with excessive force, twisting his hands and handcuffing him with his hands behind his back and ordered him to face the wall.” Id. ¶ 37. Similarly, Esequiel alleges that Wynar grabbed him “with great force, pushed him against the wall with force, twisted his arm, searched and handcuffed him with his hands behind his back and ordered him to face the wall.” Id. ¶ 36. After Rito and Esequiel were handcuffed, approximately 20 more FBI agents entered the Life Savers offices. Id. Wynar pointed a gun at Rito and Esequiel after Rito and Esequiel were already handcuffed. Id. ¶ 92. This conduct caused Rito and Esequiel to feel “that they were going to be shot at any moment.” Id. ¶ 40. The agents then began to perform a search of the Life Savers offices. Id. ¶ 36. Rito and Esequiel allege that their handcuffs “were tight.” Id. ¶ 38. Rito and Esequiel also allege that they “were cramping, thirsty, and needed to use the bathroom.” Id. ¶ 39. The FBI prevented any of the Plaintiffs from leaving, kept Rito and Esequiel handcuffed and facing the wall, and prevented the Plaintiffs from using their cell phones or office phones. Id. ¶ 42. At some point, Raquel asked whether she could use the bathroom, and Wynar instructed her to wait. Id. ¶ 46. Raquel repeated the request approximately fifteen minutes later, and a third time approximately an hour later. Id. Wynar permitted Raquel to use the bathroom upon the third request. Id. By that time, Rito and Esequiel had been handcuffed for over 30 minutes. Id. Plaintiffs allege that the search concluded at around 10:00 a.m., approximately 20 minutes after the search began. Id. ¶¶ 43, 97. Rito and Esequiel remained handcuffed for some unspecified period after the search concluded, id. ¶ 47, but the two Plaintiffs’ handcuffs were eventually removed, id. ¶ 48. Wynar then ordered the Plaintiffs to join Wynar and an IRS agent named “Arlette” at the front desk of the Life Savers offices. Id. Wynar instructed another FBI agent to take identification from Rito, Lupita, and Esequiel. Id. Wynar also informed Lupita that she still could not use her cell phone. Id. ¶ 49. Rito and Esequiel were then questioned by Wynar and others. Id. ¶¶ 50–54, 93. Eventually, Lupita, Rito, and Esequiel “were instructed to leave.” Id. ¶ 54. Rito was permitted to take Raquel’s cell phone. Id. ¶ 63. However, Raquel herself “was prevented from leaving and told to sit down.” Id. ¶ 54. Rito lingered nearby and eventually checked on the status of Raquel, at which point Wynar informed Rito that “there was nothing to be worried about.” Id. ¶ 55. As Rito departed from the Life Savers offices, Rito learned that five Life Savers members “who were coming to the office” had been questioned by FBI agents and told that Life Savers was a scam. Id. ¶ 57. Raquel was questioned by Wynar and Arlette concerning potential fraud involving Life Savers. Id. ¶¶ 58–61. Four other FBI agents accompanied Raquel, Wynar, and Arlette in the room, and these agents held weapons. Id. ¶ 65. As the questioning of Raquel concluded, Rito received a phone call from Brown on

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