UNITED STATES DISTRICT COURT
CS BUSINESS SYSTEMS, INC., a foreign for-profit corporation, JAMES L. SHELTON AND VIRGINIA SHELTON, husband and wife, BRAD HECKENBERG AND LANA C. HECKENBERG, husband and wife, PJS RENTAL, LLC, a foreign limited liability company, WON Y. SHIN TRUST, WON Y. SHIN TRUSTEE,
BART SUTHERIN AND KA THRYN SUTHERIN, husband and wife, ITZ GROUP, LLC, a foreign limited liability company,
DWIGHT C. SCHAR, PAUL E. SIMONSON,
DCS INVESTMENTS HOLDINGS GP, LLC,
DCS REAL ESTATE INVESTMENTS, LLC, a
Virginia and Florida Limited Liability Company, DCS REAL ESTATE INVESTMENTS, LLC, a Florida Limited Liability Company, DCS REAL ESTATE INVESTMENTS I, LLC, a Florida Limited Liability Company, DCS REAL ESTATE INVESTMENTS II, LLC, a Florida Limited Liability Company DCS REAL ESTATE INVESTMENTS III, LLC, a Florida Limited Liability Company DCS REAL ESTATE INVESTMENTS IV, LLC, a Florida Limited Liability Company DCS REAL ESTATE INVESTMENTS IV-A, LLC, a Florida Limited Liability Company DCS REAL ESTATE INVESTMENTS V, LLC, a Florida Limited Liability Company BELLA COLLINA PROPERTY OWNERS ASSOC., INC., DAVID BURMAN, AEGIS COMMUNITY MANAGEMENT SOLUTIONS, INC., a Florida for-profit corporation, RANDALL F. GREENE, KEITH CLARKE, PAUL LEBREUX, RICHARD C. ARRIGHI, JAMES D. RYAN, MICHAEL J. RYAN, THE RYAN LAW GROUP, LLC, CULLEN D’AMBROSIO, ROCKING RED H, LLC, RICKY L. SCHARICH, BELLA COLLINA TOWERS, LLC
COMPLAIN FOR CIVIL ACTION
TRO AND INJUNCTIVE RELIEF SOUGHT
CS BUSINESS SYSTEMS, INC., a foreign for- profit corporation, at al.,
DWIGHT C. SCHAR, et al.
COMPLAINT FOR CIVIL ACTION
UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION
Plaintiffs, by and through their undersigned counsel, hereby sue the above-captioned Defendants, alleging that they conspired to illegally seize control of the Bella Collina Property Owners Association, Inc., a Florida Nonprofit Corporation (Hereinafter the ‘”POA”). The Defendants used this control to commit illegal acts for the purpose of extorting land, homes and money from lot owners and embezzling the assets and economic opportunities of the POA.
In 2012, the Defendants conspired to create a monopoly in the sale and development of real estate in Bella Collina. An essential element of this Conspiracy was the destruction of property values, forcing owners to abandon lots and homes to business entities controlled by the Conspirators. The Defendants illegally usurped control of the POA. The POA, without member authorization, then filed 400 fraudulent lawsuits for the collection of invalid special assessments, which coerced lot owners to surrender their lots. DCS then used control of the POA to write-off the assessments, obtaining unencumbered title to POA members’ lots to the detriment of the POA and the community.
The Defendants violated fiduciary duties and committed illegal actions, including the recordation of false legal documents, the mailing of false assessment statements, the violation of lot owners’ legal rights and the constant harassment of lot owners. The Conspirators succeeded in acquiring approximately 600 lots and a number of luxurious homes from the targeted owners, for little or no payment, and a monopoly of over eighty percent(80%) of all properties. They use this monopoly to manipulate prices to the detriment of the remaining non-developer lot owners and to the benefit of the conspiracy.
The Plaintiffs seek a Temporary Restraining Order to prevent the Defendants from illegally asserting control of the POA. They then seek an injunction and the Appointment of Receiver to return control of the POA to the non-developer lot owners through a fair election as required by Court Order, the Governing Documents and statutory law, satisfying the important public policy of creating self-governing communities. Finally, they seek class certification, creation of a Constructive Trust, an accounting, and compensatory damages for the POA and the class members, plus treble damages, punitive damages, attorney fees and court costs to remedy the damage caused by the destructive conduct of the Conspirators.
The Plaintiffs seek this relief in accordance with the provisions of The Racketeer Influenced Corrupt Organizations Act, the Sherman Clayton Antitrust Acts, the Fair Debt Collection Practices Act and related Florida statutory and common law causes of action.
- The named Plaintiffs own lots in Bella Collina, a planned, gated, residential community located in Montverde, Lake County, Florida, which consists of 801 lots and is governed by the Bella Collina Property Owners Association, Inc. (hereinafter the “POA”), a Florida Not-For ProfitCorporation.
- As members of the POA, the Plaintiffs have standing to redress any “‘alleged failure or refusal to comply with” the provisions of the Florida Homeowners Association Act, §720.301, Florida Statutes, et seq., pursuant to §720.305, Florida Statutes.
- Defendant Dwight C. Schar (hereinafter “Schar”) resides at Ocean Blvd., South Palm Beach, Florida, and at all relevant times, funded and commanded the efforts of the Conspirators.
- DCS Real Estate Investments, LLC, aka DCS Real Estate Investments, LLC of Virginia, (hereinafter DCS) is a foreign for profit corporation with its headquarters at 6809 Metro Park Drive, Suite 500, Alexandria, Virginia 22310 and its principal address and the address of its registered agent at 51 Third St., Building 10, Shalimar, Florida 32579.
- DCS Investment Holdings, GP (hereinafter “DCS Holdings”), is a Florida limited liability company, managed by DCS Investment Holdings GP, LLC, with a principal address at 505 South Flagler Drive, Suite 900, West Palm Beach, Florida 33401,
- DCS Real Estate Investments, LLC (hereinafter “‘DCS Florida”) is a Florida limited liability company, managed by DCS Investment Holdings GP, LLC, with a principal address at 505 South Flagler Drive, Suite 900, West Palm Beach, Florida 33401,
- The Bella Collina Club, LLC (hereinafter the “Golf Club”) is a foreign limited liability company with its principal address at 200 Ocean Crest Drive, Suite 31, Palm Coast Florida 32137, but that owned and operated the Bella Collina golf club and related facilities until 2012.
- The Club at Bella Collina, LLC (hereinafter “the Golf Club”) is a Florida limited liability company, managed by DCS Investment Holdings GP, LLC, with a principal address at 505 South Flagler Drive, Suite 900, West Palm Beach, Florida 33401, that owns and operates the golf club and related facilities at Bella Collina.
- DCS Real Estate Investments, LLC I, II, Ill, IV, IV-A, and V (hereinafter “DCS 1-V”) are six Florida limited liability companies that hold real estate obtained by the illegal actions described in this Complaint with principal address at 505 South Flagler Drive, Suite 900, West Palm Beach, Florida 33401,
- Bella Collina Towers, LLC (hereinatter”BC Towers”) is a company owned and managed by DCS, Schar and Simonson, and was formed to construct and operate a hotel in this residential community, which construction has been facilitated by the filing of false legal documents, violates the Original CC&Rs and diminishes the property values of Bella Collina as hereinafter described.
- Schar, at all relevant times, owns and controls DCS Holdings, DCS, DCS Florida, the Golf Club, DCS 1-V, the Club at Bella Collina, LLC, and BC Towers (hereinatlercollectively referred to as “the Schar Entities”).
- Schar and DCS wholly control the POA and use it to perpetrate the illegal activities described herein.
- DCS Holdings is the managing member of the entities owned and controlled by Schar.
- Paul E. Simonson (hereinafter “Simonson”) is the registered agent and chief executive officer of the Schar Entities.
- Defendant David Burman (hereinafter ”Burman”) is a Florida licensed community association manager who resides in Auburndale, Florida, and, at all relevant times, was a board member, officer and controller of the POA, and the owner and operator of Aegis Management Solutions, Inc. (hereinafter “Aegis”).
- Aegis is a Florida for-profit corporation, owned and operated by Burman, with headquarters at 8390 Championsgate Boulevard, Championsgate, Florida.
- Randall F. Greene (hereinafter “Greene”) is an employee, agent or officer of DCS, who resides in Montverde, Lake County, Florida, and at all relevant times was appointed as board member of the POA by DCS.
- Keith Clarke (hereinafter “Clarke”) is an officer of Phoenix Homes, a DCS designated builder, who resides at Montverde, Lake County, Florida, and at all relevant times was a DCS appointed board member of the POA
- Paul Lebreux (hereinafter “Lebreux”) is a builder who resides in Montverde, Lake County, Florida, controls 5 lots, and, at all relevant times, is a DCS appointed board member of the POA.
- James D. Ryan, Michael J. Ryan (hereinafter the “Ryans”) and The Ryan Law Group are licensed Florida attorneys with offices at 636 U.S. Highway One, Suite 110, North Palm Beach, Florida 33408, who, at all relevant times, represented DCS, the POA, Rocking Red H, LLC and various Schar entities.
- Cullen D’ Ambrosio (hereinafter “D’ Ambrosio”) is a licensed Florida Attorney who works for the Ryan Law Group and resides in Palm Beach County, Florida.
- Rocking Red H, LLC is a Florida Limited Liability Company with headquarters at 636 U.S. Highway One, Suite 110, North Palm Beach, Florida 33408, whose managing member is D’Ambrosio.
- Ricky L. Scharich (hereinafter “Scharich”) is a Florida licensed specialty contractor, mortgage broker and real estate broker with headquarters at 17034 Medici Way, Montverde, Florida 34756.
Prepared by: Don Juravin protects homeowners