The opinion of the court was delivered by: BUA
NICHOLAS J. BUA, UNITED STATES DISTRICT JUDGE
Plaintiff's three-count complaint names three defendants as participants in a scheme to defraud. One of the defendants, Donald Alloian, has filed a motion to dismiss. For the reasons stated herein, Alloian's motion to dismiss is denied.
The allegations contained in plaintiff's first amended complaint, which must be taken as true for purposes of this motion to dismiss,
depict an unsophisticated civil conspiracy that netted an unsuspecting, wealthy philanthropist.
The philanthropist, plaintiff Mark Markarian, was first lured into the alleged fraudulent scheme by his personal airplane pilot, Gary Alloian.
In April 1989, Gary presented Markarian with an opportunity to invest in a remarkable invention. Gary explained that he was acquainted with two individuals, defendants Zakar Garoogian and Dr. Jack Wilkinson, who had developed a device that could generate energy through "cold fusion" -- a discovery which, if valid, would revolutionize today's methods of energy production.
Gary stated that he had already invested $ 75,000 in the invention, and that the invention could potentially earn billions of dollars. According to Gary, "Zakar [Garoogian] had just turned down a [sic] offer of $ 500,000,000.00 from agents of the Korean Government for the invention." First Amended Complaint, para. 10. He further indicated that "they did not want the invention to fall into foreign hands"; nor did they "want the American Government to steal the invention." Id. Gary informed Markarian that Garoogian wanted Markarian's help in marketing the invention.
Apparently, Markarian was enticed by Gary's proposal because in May 1989, Markarian met with Gary, Garoogian, and Wilkinson to discuss the deal. During this meeting, Garoogian and Wilkinson told Markarian that the power source was housed in a small black box that created "perpetual energy out of core electricity." Id. para. 12. To show that the invention actually worked, Garoogian conducted two small demonstrations. Garoogian and Wilkinson then allegedly told Markarian:
that they had worked on the invention for fourteen years;
that people would kill for it and people had been trying to steal it;
that helicopters flew over Zakar's house trying to steal the invention;
that they had a $ 500,000,000 offer from the Koreans but they did not want to accept it because they did not want to deal with foreigners;
that Gary had seen the $ 500,000,000 check from the Koreans;
that the whole world will change when this invention comes into use;
that Zakar is Armenian and he wanted to share the invention with an Armenian who he could trust like Markarian;