Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

WALDOCK v. M.J. SELECT GLOBAL

October 24, 2005.

JOHN H. WALDOCK, et al., Plaintiffs,
v.
M.J. SELECT GLOBAL, LTD., et al., Defendants.



The opinion of the court was delivered by: AMY ST. EVE, District Judge

MEMORANDUM OPINION AND ORDER

Plaintiffs have filed a Third Amended Complaint ("TAC") against multiple Defendants alleging a fraudulent investment scheme in connection with the purchase of shares of M.J. Select Global, Ltd. ("M.J. Select"), a Bahamian mutual fund. Plaintiffs have sued Defendants Southridge Capital Management, LLC ("Southridge"), Stephen M. Hicks and Daniel S. Pickett (collectively, the "Southridge Defendants"), and others for losses resulting from their investments in M.J. Select. The Southridge Defendants move to dismiss all of the federal and state claims against them for lack of personal jurisdiction and failure to state a claim.*fn1 The Court grants their motion and dismisses Plaintiffs' claims against the Southridge Defendants with prejudice.

BACKGROUND

  This case is related to Zurich Capital Markets Inc. v. Coglianese, No. 03 C 7960, (the "ZCM Case"), also pending before the Court. The Court has addressed similar motions in that case. See Zurich Capital Markets Inc. v. Coglianese, 332 F. Supp. 2d 1087 (N.D. Ill. 2004) (the "August 2, 2004 Opinion"); Zurich Capital Markets Inc. v. Coglianese, No. 03 C 7960, 2004 WL 2191596 (N.D. Ill. Sept. 22, 2004) (the "September 22, 2004 Opinion"); and Zurich Capital Markets Inc. v. Coglianese, No. 03 C 7960, 2005 WL 1950653 (N.D. Ill. August 12, 2005) (the "August 12, 2005 Opinion"). Although the ZCM case involves different plaintiffs and a different complaint, because many of the allegations are similar to the ones in this case and because both cases are based on investments in the same allegedly fraudulent scheme, the Court's reasoning in its August 2, 2004, September 22, 2004 and August 12, 2005 opinions applies equally to many of the issues in this case.

  I. The Plaintiffs

  The Plaintiffs in this case all invested in M.J. Select and lost all or substantial portions of their investments. Plaintiffs include: John H. Waldock, solely as Trustee of the John H. Waldock Trust; Mary Jane S. Hill and John E. Rosino, solely as Trustees of the Andrew W. Waldock Trust, John H. Waldock, Jr. Trust, Julia Wright Waldock Trust, Cameron Douglas Waldock Trust, Gary Phillip Liebenthal, II Trust, Samuel Louis Waldock Trust, Benjamin Nicholas Waldock Trust, Dustin J. Houck Trust, Daniel R. Houck Trust, Erik J. VanDootingh Trust, Ian A. VanDootingh Trust, John H. Waldock, III Trust, Andrew W. Waldock, Jr. Trust, Christopher J. Waldock Trust; 766347 Ontario Ltd., a Canadian Corporation; the James Boughner Foundation, a Canadian corporation; Ed Pettegrew, Sr., a citizen of Florida; David Miller, a citizen of California; John A. Copeland, as Trustee under a trust agreement dated April 18, 1988; Jack C. Kenning and Barbara Straka-Kenning, citizens of Ohio; Robert M. Warner, Sr. individually and as beneficiary of Independent Trust Corporation Trust, for Adam Scott Warner and for Andrew Robert Warner, Account No. 180 in the name of Robert Warner, Account No. 263 in the name of Adam S. Warner and Account No. 264 in the name of Andrew Robert Warner; and George Lukas, a citizen of New Jersey. Collectively, these individuals are referred to as "Plaintiffs." (R. 251-1; Third Am. Compl. at ¶¶ 16-45.)

  II. The Southridge Defendants

  Plaintiffs have sued multiple Defendants, including the Southridge Defendants. Southridge is a Connecticut corporation with its principal place of business in Connecticut. Southridge is or was the organizer and sub-advisor of Dominion Capital Fund Limited ("Dominion"). (Id. at ¶ 88.)

  Steven M. Hicks, a Connecticut resident, is one of the principals of Southridge and operates and administers Southridge and Dominion. (Id. at ¶ 89.) Daniel S. Pickett, a Wisconsin resident, was one of the principals of Southridge, and operated and administered Southridge and Dominion. (Id. at ¶ 90.)

  III. The Coglianese Defendants

  Michael Coglianese ("Coglianese"), a citizen of Illinois, is an Illinois certified public accountant. (Id. at ¶ 62.) Michael Coglianese, C.P.A., P.C. is an Illinois professional corporation of which Coglianese is the president, officer, director and sole shareholder. (Id. at ¶ 63.) Gina Coglianese, a citizen of Illinois, is Coglianese's wife. (Id. at ¶ 64.)

  Commodity Compliance Services, Inc. is an Illinois Corporation that acted through its individual agents, Coglianese and Gina Coglianese, and through its corporate agents, CCS, Inc. and GLC Services, Inc. (Id. at ¶ 65.) CCS, Inc. is an Illinois corporation that acted through its individual agents, Coglianese and Gina Coglianese, and through its corporate agents, CCS, Inc. and GLC Services, Inc. (Id. at ¶ 66.)

  GLC Services, Corp. is an Illinois corporation that acted through its individual agents, Coglianese and Gina Coglianese, and through its corporate agents, CCS, Inc. and Commodity Compliance Services, Inc. (Id. at ¶ 67.)

  IV. The Alleged Scheme*fn2

  Plaintiffs allege that Defendants participated in a complex scheme to defraud M.J. Select's investors. They contend that Defendants used false and misleading offering materials to induce Plaintiffs to invest in M.J. Select. (Id. at ¶ 9.) Plaintiffs allege that Defendants falsely represented that Plaintiffs' "investments would be invested in liquid investments and would be redeemable on fifteen days notice." (Id. at ¶ 10.) Plaintiffs further allege that M.J. Select transferred Plaintiffs' money to Global Arbitrage Development Ltd. ("GAD"), an illiquid investment fund. (Id. at ¶ 152.) GAD, in turn, allegedly used Plaintiffs' money to invest in Dominion, a fund that purchased illiquid securities. (Id. at ¶ 165(a).) Plaintiffs allege that Coglianese "was one of the primary organizers and operators of this fraudulent scheme" and that he acted as an agent for the Southridge Defendants when he was defrauding ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.