The opinion of the court was delivered by: Magistrate Judge Jeffery Cole
MEMORANDUM OF LAW IN SUPPORT OF PLAINTIFF'S PROVE UP OF DAMAGES AGAINST LITTLECHIEF SPECIALTIES
Plaintiff Vincent E. Jackson, ("Jackson") through his attorneys Biederman & Novi, LLC and pursuant to Rule 55 of the Federal Rules of Civil Procedure, asks this Court to enter final judgment on Jackson's RICO and civil conspiracy claims against Defendant Littlechief Specialties and award damages of $17,954,646 plus attorney's fees and costs. In support of this request, Jackson states as follows:
Littlechief Specialties, a named defendant in Jackson v. N'Genuity, et al, actively participated in these proceedings until November 29, 2011 when, despite having been fully warned by Judge Lefkow that the failure to appear would result in a default, Littlechief Specialties threw in the towel and chose not to appear. By virtue of the default, Littlechief Specialties admits that Jackson is a 49% shareholder in N'Genuity and that Littlechief Specialties, along with its RICO co-defendants (Littlechief, Dustin Bowen, Alfred Bowen, IMG, GFI and N'Genuity-Littlechief Enterprises), orchestrated a scheme to defraud Jackson of his interest in N'Genuity by systematically plundering N'Genuity through a pattern of racketeering.
Jackson's damages expert, Michael Pakter, CPA and CFE, conducted a forensic analysis of the financial data recovered and has concluded that Littlechief Specialties and its RICO co-defendants pilfered at least $12,214,045 from N'Genuity of which Jackson is entitled to 49% ($5,984,882). Pursuant to the treble damages provision of the RICO statute, Jackson seeks an award of $17,954,646 plus attorney's fees and costs against Littlechief Specialties and in his favor. Although liability is joint and several, Jackson seeks only the entry of final judgment against Littlechief Specialties at this time in light of the automatic stay provisions in effect against the remaining defaulting defendants, each of whom have filed for bankruptcy. *fn1
II. PROCEDURAL HISTORY The Pleadings
1. On September 22, 2009, Jackson filed a Complaint against Defendants N'Genuity, Valerie Littlechief, Alfred Bowen and Dustin Bowen in DuPage County Court. Defendants removed the matter to federal court. .*fn2
2. On May 20, 2011, Jackson filed his First Amended Complaint ("Complaint") and added Littlechief Specialties, Impact Marketing Group ("IMG"), Global Financial ("GFI") and N'Genuity-Littlechief Enterprises as defendants (collectively "Related Corporate Defendants"). Ex.A. The Complaint included the following counts against Littlechief Specialties:
Count IX Demand for an Accounting
Count XI Civil Conspiracy
Count XII Injunctive Relief
Count XIV Civil RICO Conspiracy
Jackson seeks only his legal remedies pursuant to Counts XI, XIII and XIV.
3. On July 13, 2011, N'Genuity, Littlechief, Alfred Bowen and Dustin Bowen filed an Answer to Jackson's First Amended Complaint. .
4. On July 15, 2011, Attorney Jere Glover filed an Appearance for the Littlechief Specialties and the other Related Corporate Defendants. .
5. On July 15, 2011, Littlechief Specialties and the other Related Corporate Defendants filed an Answer to Jackson's First Amended Complaint. .
6. On July 18, 2011, N'Genuity, Littlechief, Alfred Bowen and Dustin Bowen filed a Motion for Judgment on the Pleadings. . During the pendency of this Motion, N'Genuity filed for bankruptcy thus triggering the automatic stay in proceedings against it. On January 12, 2012, Judge Lefkow denied this motion as to all defendants except N'Genuity because of the automatic stay. .
7. On September 14, 2011, Joseph Siprut filed an Appearance on behalf of Littlechief Specialties and the other Related Corporate Defendants thereby joining Glover as counsel for Littlechief Specialties. .
The TRO and Preliminary Injunction
8. To thwart the type of plundering alleged in Jackson's complaint, Judge Lefkow granted Jackson's request for a Temporary Restraining Order on March 4, 2011. . The Order restrained N'Genuity, Littlechief, Dustin Bowen and Alfred Bowen from divesting or diluting Jackson's ownership interest, paying any business entity in which and the defendants or relatives have an ownership interest, and paying the personal expenses of any defendant.
9. The TRO was extended by agreement of the parties pending the resolution of Jackson's request for preliminary injunction. Jackson v. N'Genuity et al, 2011 U.S.Dist. LEXIS ...