Free Motion for Order - District Court of Colorado - Colorado

Case 1:01-cv-00275-JLK

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. 01-cv-0275-JLK DOMINICK PAOLONI, et al., Plaintiffs, vs. DONALD I. GOLDSTEIN, et al., Defendants, and NBSA, LLC, et al., Relief Defendants. ______________________________________________________________________________ MOTION FOR ORDER TO SHOW CAUSE _____________________________________________________________________________

COMES NOW the Plaintiffs by and through their attorneys, Dill, Dill, Carr, Stonbraker & Hutchings, P.C. and moves that this Court issue an Order to Show Cause to Mark Wolok why he should not be held in civil contempt for failure to comply with the Preliminary Injunction [Docket Entry #26] entered by this Court on March 2, 2001 and, in support thereof, state as follows: 1. On March 2, 2001, this Court entered a Preliminary Injunction against Mark

Wolok and other Defendants. Paragraph 1 of the Preliminary Injunction ordered that Mark Wolok and his ". . . officers, agents, servants, employees, attorneys and those persons in active concert or participation with [Mark Wolok] who receive actual notice of the Order by personal

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service or otherwise and each of them are hereby restrained and enjoined from directly or indirectly transferring, selling, assigning, dissipating, concealing, encumbering, impairing or otherwise disposing of in any manner funds, assets or other property belonging to or in the possession, custody or control of [Mark Wolok] wherever located . . . ." (Brackets added.) The only exception to the foregoing is that pursuant to subparagraph (a) of paragraph 1 of the Preliminary Injunction Mark Wolok was permitted to expend the amount of $5,000 for ordinary and necessary living expenses. The Preliminary Injunction has remained in effect against Mark Wolok from March 2, 2001 through the present date and continues to remain in effect. (The Preliminary Injunction is attached hereto as Exhibit A.) 2. The Preliminary Injunction was served by the Court upon Larry K. Griffis, Esq. of

Jaffe, Raitt, Heuer & Weiss, P.C., the attorney for Mark Wolok. (See Certificate of Service executed by the Deputy Clerk of the United States District Court for the District of Colorado attached to the Preliminary Injunction.) Thus, by personal service upon his attorney, Mark Wolok had and does have actual knowledge of the Preliminary Injunction. 3. Mark Wolok has violated the Preliminary Injunction by transferring his interest in

property located at 1550 Drexel Avenue, Unit 105, Miami Beach, Florida from himself to his wife on March 23, 2001 after entry of the above-referenced Preliminary Injunction. Furthermore, Mark Wolok has violated the Preliminary Injunction by, on April 12, 2001, encumbering the property located at 5395 Putnam Drive, West Bloomfield, Michigan, which property on February 15, 2001, the date preceding the filing of this litigation, he transferred all of his interest into his wife, Paula Cetean. 4. Mark Wolok's violation of the Preliminary Injunction by transfer of the Drexel

Avenue property was specifically accomplished as follows: on September 18, 2000 Mark Wolok

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and his wife, Paula Cetean, purchased a condominium located at 1550 Drexel Avenue, Unit 105, Miami Beach, Florida, 33139 (the "Drexel Avenue Property") for the sum of $64,000. The Warranty Deed by which Mark Wolok and Paula Cetean purchased the Drexel Avenue Property is attached as Exhibit B. Upon purchase of the Drexel Avenue Property, Mark Wolok and Paula Cetean granted a mortgage to Southeast Banker's Mortgage Corporation in the amount of $57,600 and secured the mortgage with the Drexel Avenue Property. Attached hereto as Exhibit C is the Mortgage granted Southeast Banker's Mortgage Corporation. 5. On March 23, 2001, subsequent to entry of the March 2, 2001 Preliminary

Injunction enjoining Mark Wolok from any transfer or encumbrance of any property interest, Mark Wolok, by Quit Claim Deed, deeded all of his interest in the Drexel Avenue Property to his wife, Paula Cetean for nominal consideration. Attached hereto as Exhibit D is the Quit Claim Deed by which Mark Wolok conveyed his interest in the Drexel Avenue Property to Paula Cetean in violation of the Preliminary Injunction. The transfer of Mark Wolok's interest in the Drexel Avenue Property to his wife, Paula Cetean, was not for fair market value but was for the sum of $10. On June 27, 2006, Paula Cetean obtained a mortgage from Lehman Brothers Bank in the amount of $180,000, and secured the mortgage with the Drexel Avenue Property. Attached hereto as Exhibit E is the Lehman Brothers Bank mortgage obtained by Paula Cetean, the wife of Mark Wolok. 6. The current value of the Drexel Avenue Property is at least $180,000. In

transferring the Drexel Avenue Property to his wife, Paula Cetean, subsequent to entry of the March 2, 2001 Preliminary Injunction, Mark Wolok violated the express terms of the Preliminary Injunction. Furthermore, the transfer then permitted Paula Cetean and Mark Wolok to utilize the accrued equity in the property by Paula Cetean obtaining a mortgage in the amount

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of $180,000. Thus, Plaintiffs have been damaged by the actions of Mark Wolok in violation of the Preliminary Injunction in an amount not less than $122,400, the difference between the original mortgage at the time Mark Wolok and Paula Cetean purchased the property and the Drexel Avenue Property's current value today. 7. On February 4, 2000 Mark Wolok, then a single man and not married to Paula

Cetean, purchased the property located at 5395 Putnam Drive, West Bloomfield, Michigan (the "Putnam Drive Property") for $535,000. Attached hereto as Exhibit F is the Warranty Deed by which Mark Wolok purchased the Putnam Drive Property. On the same date, February 4, 2000, Mark Wolok, by way of Quit Claim Deed, quit claimed the Putnam Drive Property to Mark Wolok, a single man, and Paula Cetean, a single woman, as joint tenants with full rights of survivorship. Attached hereto as Exhibit G is the Quit Claim Deed by which Mark Wolok quit claimed the Putnam Drive Property to himself and Paula Cetean. Paula Cetean and Mark Wolok were subsequently married on September 9, 2000. The marriage license for Mark Wolok and Paula Cetean is attached hereto as Exhibit H. 8. On February 15, 2001, one day before the filing of this case, Mark Wolok and

Paula Cetean executed a Quit Claim Deed by which Mark Wolok transferred all of his interest in the Putnam Drive Property to his wife, Paula Cetean. The Quit Claim Deed was prepared by the current attorneys for Mark Wolok in this case, Jaffe, Raitt, Heuer & Weiss, P.C. The Quit Claim Deed for Mark Wolok and Paula Cetean of the Putnam Drive Property to Paula Cetean is attached hereto as Exhibit I. Although not a violation of the Preliminary Injunction or previously entered Temporary Restraining Order in this action, the transfer was purposefully made with the intent of hindering and defrauding the Plaintiffs herein and other creditors of Mark Wolok and

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was done so with the express agreement, knowledge and participation of Jaffe, Raitt, Heuer & Weiss, P.C. 9. On April 12, 2001, Mark Wolok and Paula Cetean encumbered the Putnam Drive

Property, in addition to then existing encumbrances, in the amount of $35,000 in violation of the Preliminary Injunction of March 2, 2001, which enjoined Mark Wolok from encumbering any property belonging to or in the possession, custody and/or control of Mark Wolok. Attached hereto as Exhibit J is the April 12, 2001, mortgage of Mark Wolok and Paula Cetean encumbering the Putnam Drive Property in violation of the Preliminary Injunction. Although Mark Wolok had purportedly transferred his interest in the Putnam Drive Property on February 15, 2001, the day prior to the filing of this action, as evidenced by the April 12, 2001 mortgage executed by Mark Wolok on the Putnam Drive Property on April 12, 2001, Mark Wolok clearly possessed, had a beneficial interest in, and/or had custody or control of the Putnam Drive Property. Furthermore, on April 12, 2001, Mark Wolok resided at the Putnam Drive Property with his wife, Paula Cetean. The amount of the April 12, 2001 mortgage is $35,000. The mortgage has impaired the equity of the Putnam Drive Property and thus violated the March 2, 2001 Preliminary Injunction and caused damage to the Plaintiffs in the amount of the mortgage, $35,000. 10. Subsequent to April 12, 2001, Mark Wolok continued to maintain an interest in

the Putnam Drive Property and continued, together with his wife, Paula Cetean, to encumber the Putnam Drive Property in violation of the March 2, 2001 Preliminary Injunction in the following respects. A. On March 9, 2004, Paula Cetean, as trustee of the Paula Cetean Revocable

Trust U/S/D dated January 28, 2003, granted a mortgage in favor of Barrington's Financial, Ltd.,

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a lender, in the amount of $25,000. The mortgage recites: "WITNESSETH, that Mark Wolok and Paula Cetean owe Lender the sum of Twenty-Five Thousand Dollars." attached hereto as Exhibit K. B. On December 10, 2004, Paula Cetean as Trustee of the Paula Cetean The mortgage is

Revocable Trust granted a mortgage in the amount of $40,000 in favor of Barrington's Financial, Ltd. The mortgage recited: "WITNESSETH, that Mark Wolok and Paula Cetean owe Lender the principal sum of Forty Thousand Dollars." The mortgage is attached hereto as Exhibit L. C. On March 10, 2006, Paula Cetean, individually and in her capacity as

Trustee of the Paula Cetean Revocable Trust granted a mortgage in favor of Michael A. Leibowitz in the amount of $40,099. The mortgage provides: "This Mortgage is joined in by Mark Wolok, husband of Paula Cetean, for the purpose of subjecting any interest he may now have or after acquire in the premises hereinafter described the lien of this Mortgage." Furthermore, Mark Wolok executed the mortgage in favor of Michael A. Leibowitz. mortgage is attached hereto as Exhibit M. 11. Each of the three mortgages identified in the immediately preceding paragraph are The

in violation of the March 2, 2001 Preliminary Injunction for reason that, although Mark Wolok purported to deed the Putnam Drive Property to his wife, Paula Cetean, prior to entry of the Preliminary Injunction, the deed is invalid as a fraudulent conveyance and, in addition thereto, Mark Wolok continued to maintain possession, custody, control and/or a beneficial interest in the property. The encumbrances set forth in paragraphs 10.(a) and (b) above were to secure a debt owed by Mark Wolok. The encumbrance identified in paragraph 10.(c) above is in direct violation of the Preliminary Injunction as Mark Wolok personally encumbered the Putnam Drive Property. As a result of the three encumbrances placed upon the Putnam Drive Property by

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Mark Wolok with the aid and assistance of his wife, Paula Cetean, the Plaintiffs have been damaged in the amount of such encumbrances, or $105,099. 12. As a direct result of Mark Wolok's violations of the March 2, 2001 Preliminary

Injunction, the Plaintiffs have been damaged in at least the amount of $262,499. 13. In accordance with D.C.Colo.L.Civ.R. 7.1A, on August 16, 2006, Plaintiffs'

counsel sent Larry Griffis, counsel for Mark Wolok, the attached letter, Exhibit N in an effort to resolve this matter without this Court's intervention. On August 29, 2006, Larry K. Griffis advised Plaintiffs' counsel that Mark Wolok was broke and the filing and pursuing of this matter would be a waste of Plaintiffs' time and money. WHEREFORE, the Plaintiffs respectfully request that this Court enter an Order to Show Cause to Mark Wolok why he should not be held in civil contempt of this Court. Respectfully submitted this 1st day of September, 2006. DILL DILL CARR STONBRAKER & HUTCHINGS, P.C.

s/ John A. Hutchings John A. Hutchings Robert A. Dill 455 Sherman Street, Suite 300 Denver, Colorado 80203 Telephone: (303) 777-3737 Facsimile: (303) 777-3823 E-mail: [email protected] [email protected] ATTORNEYS FOR PLAINTIFFS

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CERTIFICATE OF SERVICE I hereby certify that on September 1, 2006 I electronically filed the foregoing MOTION FOR ORDER TO SHOW CAUSE with the Clerk of Court using CM/ECF System, which will send notification of such filing to the following e-mail addresses: [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

and I hereby certify that I have mailed the MOTION FOR ORDER TO SHOW CAUSE to the following non-CM/ECF participants by depositing same in the United States mail, postage prepaid, addressed to the following on September 1, 2006: Thomas B. Quinn, Esq. White & Steele 950 17th Street, 21st Floor Denver, Colorado 80202-2804 Akerman Senterfitt 350 East Las Olas Boulevard Suite 1600 Ft. Lauderdale, Florida 33301 Robert S. Harrison, Esq. Matthew D. Klakulak, Esq. Robert Harrison & Associates, PLC 240 East Merrill Street Birmingham, Michigan 48009 Gary Hoskie Professional Consultants & Managers, Inc. 1706 Surfside Drive Hutchinson Island, Florida 34949

Mr. Isadore Cohen 1920 East Hallandale Boulevard Suite 626 Hallandale, Florida 33009
Larry K. Griffis, Esq. Jaffe, Raitt, Heuer & Weiss, P.C. 27777 Franklin Road, Suite 2500 Southfield, Michigan 48034-8214

s/ Charlene Huffman

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