United States District Court, E.D. Louisiana
ORDER & REASONS
E. FALLON U.S. DISTRICT COURT JUDGE
the Court are two competing motions. A motion for partial
summary judgment filed by Plaintiff Antone James Lynch, R.
Doc. 23, and a motion to dismiss filed by Defendants
Fountainbleau Management Services, LLC; Roland T.A. von
Kurnatowski, Jr.; BF-1, LLC; and Roland von Kurnatowski, R.
Doc. 24. Both motions are opposed. R. Docs. 25, 26.
Defendants have filed a reply to Plaintiff's opposition
to their motion to dismiss. R. Doc. 30. Having reviewed the
motions and considered the applicable law, the Court rules as
Antone J. Lynch brings this action against Defendants
alleging they “conspired with each other and with
others” to execute a fraud upon Plaintiff “in
connection with the sale of securities, ” causing
Plaintiff to lose “all of the amounts invested”
in “investment contracts sold to Plaintiff by
Defendants.” R. Doc. 1 at ¶¶ 16-17.
to the compliant, “[o]n May 28, 1991, the parties
executed an ‘Investment Agreement' . . . . to
establish an investment fund to trade U.S. Treasury Bonds,
entitled ‘Bond Fund One.'” Id. at
¶ 7. Plaintiff contends that “[a]s of February
2017, Defendants reported to Plaintiff that his share of the
Bond One Fund account had a value of $363, 145.74, ”
but that when Plaintiff made a demand for a return of his
investment “in writing and in compliance with the terms
of contract, ” “Defendants issued a check in the
amount of $3, 000, ” which the bank dishonored.
Id. at ¶¶ 13-15. Plaintiff alleges
“Defendants misappropriated Plaintiff's funds for
their own personal use.” Id. at ¶ 19.
on this factual background, Plaintiff brings the following
(1) Violations of Section 10(b) of the Securities Exchange
Act of 1934, 15 U.S.C.A. § 78j(b), and Rule 10b-5
promulgated thereunder, id. at ¶ 21;
(2) Recession, pursuant to Section 29(b) of the Securities
Exchange Act of 1934, 15 U.S.C. § 78cc(b) based on
Defendants' alleged violations of Section 10(b),
id. at ¶ 27;
(3) Title 51, Section 712 A (2) of the Louisiana Securities
laws, id. at ¶ 30;
(4) Louisiana Civil Code articles 2315 and 2316, id.
at ¶ 34;
(5) Louisiana Civil Code article 2315, id. at ¶
(6) Louisiana Civil Code article 1758, id. at ¶
(7) Louisiana Civil Code article 1953, id. at ¶