Salazar v Meloul 2025 NY Slip Op 30100(U) January 13, 2025 Supreme Court, New York County Docket Number: Index No. 154280/2024 Judge: Paul A. Goetz Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 154280/2024 NYSCEF DOC. NO. 38 RECEIVED NYSCEF: 01/13/2025
SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. PAUL A. GOETZ PART 47 Justice ---------------------------------------------------------------------------------X INDEX NO. 154280/2024 MARLON SALAZAR, MOTION DATE 07/18/2024 Plaintiff, MOTION SEQ. NO. 001 -v- GABRIEL MELOUL, SAMUEL MELOUL DECISION + ORDER ON MOTION Defendant. ---------------------------------------------------------------------------------X
The following e-filed documents, listed by NYSCEF document number (Motion 001) 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25, 26, 27, 29, 30, 31, 32, 34 were read on this motion to/for ORDER OF ATTACHMENT .
In this fraud action arising from plaintiff’s investment in a business venture, plaintiff
seeks, pursuant to CPLR §§ 6201(1), 6201(3), and 6212, attachment of four properties owned by
defendant Gabriel Meloul (Gabriel) as security for the judgment plaintiff seeks to recover.
BACKGROUND
In 2013, plaintiff became acquainted with Gabriel, who rented one of the properties
plaintiff managed; in 2016, plaintiff met Gabriel’s brother, defendant Samuel Meloul (Samuel),
and the two developed a friendship (NYSCEF Doc No 1, ¶ 9-13). In 2018, after plaintiff
intimated that he was seeking to invest his savings in an entrepreneurial venture, Samuel asked if
he wanted to invest with Gabriel in a real estate venture, but plaintiff declined (id, ¶14-16).
Plaintiff alleges that “at some point thereafter, [defendants] devised a scheme to induce him to
furnish his savings to them under the auspices of a sham investment opportunity” (id, ¶ 17).
In late 2020, defendants allegedly made repeated misrepresentations regarding a
Canadian cannabis venture (the venture), which led plaintiff to invest (id, ¶ 16-19). On January
13, 2021, plaintiff wired $200,000 from his New York bank account to a Canadian bank account 154280/2024 SALAZAR, MARLON vs. MELOUL, GABRIEL ET AL Page 1 of 6 Motion No. 001
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as instructed by defendants (id, ¶23). Thereafter, defendants gradually ceased responding to
plaintiff’s messages and calls. Plaintiff alleges that he never received any share certificates or
other corporate documents reflecting his purchase of securities, or formation or subscription
documents of the venture, nor was he repaid for his $200,000 investment (id, ¶ 24-35).
Plaintiff alleges that defendants made six material misrepresentations, stating that: (i) the
venture had acquired land in Canada to construct a production facility; (ii) Gabriel had
significant and substantial experience founding successful ventures (id, ¶ 21 [Gabriel stating in
an email dated December 16, 2020 that he “has managed investments worth hundreds of millions
of dollars across north America”]); (iii) the venture had secured commitments from experienced
co-founders/collaborators to help navigate the industry (id, ¶ 21 [stating that the team had “50
years of agriculture experience and 20 years of Cannabis Cultivation”]); (iv) the requisite
operational licenses and regulatory approvals were assured; (v) Samuel would be directly and
continuously involved in the management of the business; and (vi) defendants generally intended
to create and operate a bona fide business venture (id, ¶ 19).
DISCUSSION
“A plaintiff seeking an order of attachment must show the probability of its success on
the merits of [their] cause of action, that one or more grounds for attachment provided for in
CPLR 6201 exist, and that the amount demanded from the defendant exceeds all counterclaims
known to the plaintiff (CPLR 6212[a])” (Reed Smith LLP v LEED HR, LLC, 156 AD3d 420, 420
[1st Dept 2017]). “Although evidentiary facts making out a prima facie case must be shown,
plaintiff must be given the benefit of all legitimate inferences and deductions that can be made
from the facts stated” (Considar, Inc. v Redi Corp. Establishment, 238 AD2d 111, 111 [1st Dept
1997]).
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i. Probability of Success on the Merits
“Probability of success on the merits for purposes of an order of attachment requires that
the moving party demonstrate that it is more likely than not that it will succeed on [their] claims
and must show proof stronger than that required to make a prima facie case” (In re Firestar
Diamond, Inc., 657 BR 730, 746 [Bankr SDNY 2024]). “The elements of fraud are ‘a
misrepresentation or a material omission of fact which was false and known to be false by
defendant, made for the purpose of inducing the other party to rely upon it, justifiable reliance of
the other party on the misrepresentation or material omission, and injury’” (Genger v Genger,
152 AD3d 444, 445 [1st Dept 2017], quoting Lama Holding Co. v Smith Barney Inc., 88 NY2d
413, 421 [1996]).
Here, plaintiff has “demonstrate[d] [his] probability of success on the merits of” his fraud
claims “by submitting considerable evidence of” (Reed Smith, 156 AD3d at 420) defendants’
alleged misrepresentations, along with the fact that he was not provided with share certificates or
other documents certifying the investment, or documents showing the formation or subscription
of the venture (NYSCEF Doc No 34, 3). The absence of these documents is sufficient, “on this
prediscovery … motion, to plead that” defendants knew that the misrepresentations were false
and they made them to induce plaintiff’s investment (William Doyle Galleries, Inc. v Stettner,
167 AD3d 501, 504 [1st Dept 2018] [“actual knowledge need only be pleaded generally …
particularly at the prediscovery stage, [since] a plaintiff lacks access to the very discovery
materials which would illuminate a defendant’s state of mind. Participants in a fraud do not
affirmatively declare to the world that they are engaged in the perpetration of a fraud”]). Here,
without the formation and subscription documents, it is unclear whether a venture was formed
and operating at the time of investment; and without the share certificate, it is unclear whether
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plaintiff’s payment was indeed invested in the venture. Further, plaintiff has sufficiently pleaded
that he decided to invest and wired the money to defendants in reliance on their
misrepresentations, and that he was damaged by their misrepresentations.
ii. CPLR 6201 Ground(s)
Plaintiff seeks attachment pursuant to CPLR §§ 6201, which provides that a plaintiff is
entitled to an attachment order if “the defendant is a nondomiciliary residing without the state”
(CPLR § 6201[1]), or “the defendant, with intent to defraud his creditors or frustrate the
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Salazar v Meloul 2025 NY Slip Op 30100(U) January 13, 2025 Supreme Court, New York County Docket Number: Index No. 154280/2024 Judge: Paul A. Goetz Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 154280/2024 NYSCEF DOC. NO. 38 RECEIVED NYSCEF: 01/13/2025
SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. PAUL A. GOETZ PART 47 Justice ---------------------------------------------------------------------------------X INDEX NO. 154280/2024 MARLON SALAZAR, MOTION DATE 07/18/2024 Plaintiff, MOTION SEQ. NO. 001 -v- GABRIEL MELOUL, SAMUEL MELOUL DECISION + ORDER ON MOTION Defendant. ---------------------------------------------------------------------------------X
The following e-filed documents, listed by NYSCEF document number (Motion 001) 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25, 26, 27, 29, 30, 31, 32, 34 were read on this motion to/for ORDER OF ATTACHMENT .
In this fraud action arising from plaintiff’s investment in a business venture, plaintiff
seeks, pursuant to CPLR §§ 6201(1), 6201(3), and 6212, attachment of four properties owned by
defendant Gabriel Meloul (Gabriel) as security for the judgment plaintiff seeks to recover.
BACKGROUND
In 2013, plaintiff became acquainted with Gabriel, who rented one of the properties
plaintiff managed; in 2016, plaintiff met Gabriel’s brother, defendant Samuel Meloul (Samuel),
and the two developed a friendship (NYSCEF Doc No 1, ¶ 9-13). In 2018, after plaintiff
intimated that he was seeking to invest his savings in an entrepreneurial venture, Samuel asked if
he wanted to invest with Gabriel in a real estate venture, but plaintiff declined (id, ¶14-16).
Plaintiff alleges that “at some point thereafter, [defendants] devised a scheme to induce him to
furnish his savings to them under the auspices of a sham investment opportunity” (id, ¶ 17).
In late 2020, defendants allegedly made repeated misrepresentations regarding a
Canadian cannabis venture (the venture), which led plaintiff to invest (id, ¶ 16-19). On January
13, 2021, plaintiff wired $200,000 from his New York bank account to a Canadian bank account 154280/2024 SALAZAR, MARLON vs. MELOUL, GABRIEL ET AL Page 1 of 6 Motion No. 001
1 of 6 [* 1] INDEX NO. 154280/2024 NYSCEF DOC. NO. 38 RECEIVED NYSCEF: 01/13/2025
as instructed by defendants (id, ¶23). Thereafter, defendants gradually ceased responding to
plaintiff’s messages and calls. Plaintiff alleges that he never received any share certificates or
other corporate documents reflecting his purchase of securities, or formation or subscription
documents of the venture, nor was he repaid for his $200,000 investment (id, ¶ 24-35).
Plaintiff alleges that defendants made six material misrepresentations, stating that: (i) the
venture had acquired land in Canada to construct a production facility; (ii) Gabriel had
significant and substantial experience founding successful ventures (id, ¶ 21 [Gabriel stating in
an email dated December 16, 2020 that he “has managed investments worth hundreds of millions
of dollars across north America”]); (iii) the venture had secured commitments from experienced
co-founders/collaborators to help navigate the industry (id, ¶ 21 [stating that the team had “50
years of agriculture experience and 20 years of Cannabis Cultivation”]); (iv) the requisite
operational licenses and regulatory approvals were assured; (v) Samuel would be directly and
continuously involved in the management of the business; and (vi) defendants generally intended
to create and operate a bona fide business venture (id, ¶ 19).
DISCUSSION
“A plaintiff seeking an order of attachment must show the probability of its success on
the merits of [their] cause of action, that one or more grounds for attachment provided for in
CPLR 6201 exist, and that the amount demanded from the defendant exceeds all counterclaims
known to the plaintiff (CPLR 6212[a])” (Reed Smith LLP v LEED HR, LLC, 156 AD3d 420, 420
[1st Dept 2017]). “Although evidentiary facts making out a prima facie case must be shown,
plaintiff must be given the benefit of all legitimate inferences and deductions that can be made
from the facts stated” (Considar, Inc. v Redi Corp. Establishment, 238 AD2d 111, 111 [1st Dept
1997]).
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i. Probability of Success on the Merits
“Probability of success on the merits for purposes of an order of attachment requires that
the moving party demonstrate that it is more likely than not that it will succeed on [their] claims
and must show proof stronger than that required to make a prima facie case” (In re Firestar
Diamond, Inc., 657 BR 730, 746 [Bankr SDNY 2024]). “The elements of fraud are ‘a
misrepresentation or a material omission of fact which was false and known to be false by
defendant, made for the purpose of inducing the other party to rely upon it, justifiable reliance of
the other party on the misrepresentation or material omission, and injury’” (Genger v Genger,
152 AD3d 444, 445 [1st Dept 2017], quoting Lama Holding Co. v Smith Barney Inc., 88 NY2d
413, 421 [1996]).
Here, plaintiff has “demonstrate[d] [his] probability of success on the merits of” his fraud
claims “by submitting considerable evidence of” (Reed Smith, 156 AD3d at 420) defendants’
alleged misrepresentations, along with the fact that he was not provided with share certificates or
other documents certifying the investment, or documents showing the formation or subscription
of the venture (NYSCEF Doc No 34, 3). The absence of these documents is sufficient, “on this
prediscovery … motion, to plead that” defendants knew that the misrepresentations were false
and they made them to induce plaintiff’s investment (William Doyle Galleries, Inc. v Stettner,
167 AD3d 501, 504 [1st Dept 2018] [“actual knowledge need only be pleaded generally …
particularly at the prediscovery stage, [since] a plaintiff lacks access to the very discovery
materials which would illuminate a defendant’s state of mind. Participants in a fraud do not
affirmatively declare to the world that they are engaged in the perpetration of a fraud”]). Here,
without the formation and subscription documents, it is unclear whether a venture was formed
and operating at the time of investment; and without the share certificate, it is unclear whether
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plaintiff’s payment was indeed invested in the venture. Further, plaintiff has sufficiently pleaded
that he decided to invest and wired the money to defendants in reliance on their
misrepresentations, and that he was damaged by their misrepresentations.
ii. CPLR 6201 Ground(s)
Plaintiff seeks attachment pursuant to CPLR §§ 6201, which provides that a plaintiff is
entitled to an attachment order if “the defendant is a nondomiciliary residing without the state”
(CPLR § 6201[1]), or “the defendant, with intent to defraud his creditors or frustrate the
enforcement of a judgment that might be rendered in plaintiff’s favor, has assigned, disposed of,
encumbered or secreted property, or removed it from the state or is about to do any of these acts”
(CPLR § 6201[3]).
CPLR § 6201(1) is met here. Although Gabriel “resided in New York State for nearly a
decade starting in the 2010s,” “owns three properties in New York State,” and travels to and
visits New York City regularly (NYSCEF Doc No 32), this does not demonstrate that he
currently has a residence in New York (compare Fritch v Bron, 73 Misc3d 860, 861-862
[Suffolk Co SC 2021] [plaintiff alleges that defendant is a nondomiciliary residing in Florida, but
defendant “submitted an affidavit in which he avers that he resides in Suffolk County and works
in New York City”]; see also Rayo v Vitale, 38 Misc3d 1211[A] [Kings Co SC 2012] [“although
defendant Vitale’s primary residence is in Florida, he has submitted an affidavit in which he
avers that he also maintains a residence and works in a real estate office in Staten Island”]). It is
undisputed that defendant currently resides in New Jersey and not New York, and thus, the
requirement of CPLR § 6201(1) is satisfied.1
1 However, plaintiff failed to establish that CPLR § 6201(3) applies. Plaintiff himself confirms that “the property has not been conveyed” (NYSCEF Doc No 11, ¶ 27, 31, 33) and he does not provide any evidence that Gabriel is likely to assign, dispose of, encumber, or secret the properties (Cyngiel v Krigsman, 192 AD3d 762, 763 [2nd Dept 2021] [“Affidavits containing allegations raising a mere suspicion of an intent to defraud are insufficient. It must appear 154280/2024 SALAZAR, MARLON vs. MELOUL, GABRIEL ET AL Page 4 of 6 Motion No. 001
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iii. The Amount Demanded from Defendants Exceeds All Counterclaims Known to
Plaintiff
Here, the “potential recovery on [plaintiff’s] claims exceeds any counterclaims from
defendants (see CPLR 6212 [a])” (Halse v Hussain, 193 AD3d 1140, 1141 [3rd Dept 2021]), as
defendants have not set forth any counterclaims against plaintiff.
iv. Out-of-State Property
Plaintiff is entitled to an order of attachment pursuant to CPLR § 6201(1). However,
among the four properties plaintiff seeks to be attached, one is located in New Jersey, and
“prejudgment attachment is typically based on jurisdiction over property” (Koehler v Bank of
Bermuda Ltd., 12 NY3d 533, 537 [2009]). While the Court of Appeals held that “a court with
personal jurisdiction over a nondomiciliary present in New York has jurisdiction over that
individual’s tangible or intangible property, even if the situs of the property is outside New
York” (Hotel 71 Mezz Lender LLC v Falor, 14 NY3d 303, 312 [2010]), the First Department
later clarified: “Hotel 71 Mezz Lender LLC [] is distinguishable [in that it] involved
uncertificated ownership/membership interests in limited liability companies and a corporation,
which could be attached by serving the manager of the entities in New York. By contrast, a
sheriff levies on real property by filing with the clerk of the county in which the property is
located a notice of attachment (CPLR 6216)” (JSC VTB Bank, etc. v Mavlyanov, 154 AD3d 560,
561-62 [1st Dept 2017] [internal citation and quotation marks omitted]). Since the out-of-state
property here is real property, Hotel 71 Mezz Lender LLC does not apply, and the New Jersey
property will be excluded from the attachment order.
that such fraudulent intent really existed in the defendant’s mind.”] [internal citations omitted]) Nevertheless, plaintiff only need show one basis for attachment under CPLR § 6201, and he has done so. 154280/2024 SALAZAR, MARLON vs. MELOUL, GABRIEL ET AL Page 5 of 6 Motion No. 001
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CONCLUSION
Based on the foregoing, it is
ORDERED that plaintiff’s motion for an order of attachment is granted; and it is further
ORDERED that the attachment is in effect as of the date of this order; and it is further
ORDERED that the amount to be secured by this order of attachment, inclusive of
probable interest, costs, and Sheriff’s fees and expenses, shall be $200,000; and it is further
ORDERED that the undertaking of $500.00 posted by plaintiff shall remain in place; and
it is further
ORDERED that the Sheriff of Orange County of the State of New York shall levy within
their jurisdiction, at any time before final judgment, upon such real property in which defendants
have an interest and upon such debts owing to defendants as will satisfy $200,000, together with
probable interest, costs, and the Sheriff’s fees and expenses, the following real properties: 44
Sussex Street, Port Jervis, New York, NY 12771; 16 Airport Road, Port Jervis, New York, NY
12771; and 24 Airport Road, Port Jervis, New York, NY 12771; and that the Sheriff proceed
herein in the manner and make their return within the time prescribe by law.
1/13/2025 DATE PAUL A. GOETZ, J.S.C. CHECK ONE: CASE DISPOSED X NON-FINAL DISPOSITION
X GRANTED DENIED GRANTED IN PART OTHER
APPLICATION: SETTLE ORDER SUBMIT ORDER
CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN FIDUCIARY APPOINTMENT REFERENCE
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