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To: Auric Goldfinger who wrote (700)
From: afrayem onigwecher
Thursday, Nov 4 1999 5:54PM ET
Reply # of 723
Defendant STEPHEN N. WORTHINGTON aka "AURIC GOLDFINGER;"
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
ZIASUN TECHNOLOGIES, INC., a Nevada corporation, and ANTHONY L.
TOBIN,
Plaintiffs,
vs.
Defendant FLOYD D. SCHNEIDER aka "FLODYIE;"
STEPHEN N. WORTHINGTON aka "AURIC GOLDFINGER;"
TOM LIVIA aka ?REALMONEY;?
PAUL HARARY aka ?TRADER14U;?
MIKE MORELOCK aka ?CM BURNS;?
DEFENDANT JOHN or JANE DOE 1 aka ?JJS64;?
DEFENDANT JOHN or JANE DOE 2 aka ?GUS SIDERIS;?
DEFENDANT JOHN or JANE DOE 3 aka ?ALPINE SLEUTH.?
Defendants.
No.:
COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF AND JURY
DEMAND
I. PRELIMINARY STATEMENT
1.1. This is a complaint for securities fraud, defamation, violation of Washington's
Consumer Protection Act, violation of Washington's Criminal Profiteering Act, violation
of the Federal RICO statute, and intentional interference with a business expectancy. The
claims arise out of the defendants' use of the Internet to disseminate false and defamatory
information regarding plaintiffs.
II. PARTIES
2.1 Plaintiff ZiaSun Technologies, Inc. is a Nevada corporation with United States
headquarters in San Diego, California.
2.2 Plaintiff Anthony L. Tobin is the President of ZiaSun and an individual resident of
Hong Kong.
2.3 Defendant Floyd D. Schneider is an individual residing in Saddle River, New Jersey.
Defendant Schneider uses the alias ?flodyie? when communicating over the Internet.
2.4. Upon information and/or belief, the actual identity of the Defendant using the alias
?Auric Goldfinger? in his communications over the Internet is Stephen N. Worthington
residing in San Francisco, California.
2.5 Upon information and/or belief, the actual identity of the Defendant using the alias
?realmoney? in his communications over the Internet is Tom Livia residing in Boca Raton,
Florida.
2.6 Upon information and/or belief, the actual identity of the Defendant using the alias
?trader14u? in his communications over the Internet is Paul Harary residing in Boca
Raton, California.
2.7 Upon information and/or belief, the actual identity of the Defendant using the alias ?C
M Burns? in his communications over the Internet is Mike Morelock residing in
Greenwood, Arkansas.
2.8 Defendant Doe 1 is an individual of unknown residency using the alias ?jjs64? in his
communications over the Internet.
2.9 Defendant Doe 2 is an individual of unknown residency using the alias ?GUS
SIDERIS? in his communications over the Internet.
2.10 Defendant Doe 3 is an individual of unknown residency using the alias ?Alpine
Sleuth? in his communications over the Internet.
III. BACKGROUND
3.1 Plaintiff ZiaSun Technologies, Inc. is an Internet related company providing services
to consumers located primarily in Asia. Its business focuses on e-mail services, Internet
advertising, investment research, online stock trading, and e-commerce operations
management. Plaintiff Anthony L. Tobin is the President of ZiaSun.
3.2 ZiaSun is a publicly traded company traded on the OTC. The ZiaSun trading symbol
is "ZSUN."
3.3 Silicon Investor is an online investor website. It is owned by Go2Net, Inc., a
Washington corporation, with its principal place of business in Seattle, Washington.
3.4 The Silicon Investor website includes trading information, stock information and
provides message boards for its members.
3.5 Members of Silicon Investor can post statements on the Silicon Investor message
boards relating to specific stocks. ZiaSun is the subject of at least three Silicon Investor
message boards.
3.6 Each member's posting is subject to the Silicon Investor Terms of Use Agreement,
which each member must agree to before initiating membership. Under the Silicon
Investor Terms of Use Agreement, each member agrees to submit to the personal
jurisdiction of the State of Washington for any cause of action arising out of or relating to
the service.
3.7 Beginning in the fall of 1998, Silicon Investor members began posting statements
about ZiaSun on Silicon Investor message boards.
3.8 In November 1998, a cadre of individuals (?posters?) consisting of the defendants
began using Silicon Investor's ZiaSun message boards for a defamatory campaign
(?cybersmear?) against ZiaSun and ZiaSun officers and directors, including ZiaSun
President, Anthony Tobin. The cybersmear campaign involved the defendants posting
false and defamatory information about ZiaSun, ZiaSun officers and directors, and
plaintiff Tobin.
3.9 The false information being disseminated by the defendants includes but is not limited
to allegations of criminal behavior, involvement in pornography, improper financial
interests, improper promotion techniques and dissemination of false corporate and
misleading information to the public. The cybersmear campaign continues through the
present day.
3.10 As a result of defendants' false statements, ZiaSun share prices have dropped
substantially. Damage has directly resulted to the company, its investors and its officers
and directors.
3.11 Upon information and/or belief, defendants' cybersmear campaign is intended to
negatively impact ZiaSun stock prices to defendants' financial benefit.
3.12 Upon information and/or belief, defendants' are working in concert to drive ZiaSun
stock prices down for the defendants' collective benefit.
3.13 Upon information and/or belief, defendants maintain ?short? positions in ZiaSun
stock, and have a direct financial interest in driving ZiaSun share prices down.
IV. JURISDICTION AND VENUE
4.1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. §1331 because
the district courts have original jurisdiction of all civil actions arising under the laws of the
United States.
4.2. This Court has jurisdiction over the state law claims set forth herein pursuant to 28
U.S.C. § 1367, which provides that when the District Court has original jurisdiction, the
District Court shall have supplemental jurisdiction over all other claims that are so related
to claims in the action within such original jurisdiction that they form part of the same case
or controversy.
4.3. This Court has specific personal jurisdiction over non-resident defendants pursuant
to the Washington long arm statute, RCW §
4.28.185 (1)(b), and the Due Process clause of the Fourteenth Amendment to the
United States Constitution. By initiating activities within the State of Washington and
consenting to judgment there, defendants have purposefully availed themselves of this
Court's jurisdiction, the claims arise out of defendants' contacts within the state, and the
exercise of jurisdiction is reasonable.
4.4. This jurisdictional district is a proper venue pursuant to 28 U.S.C. § 1391(b)(2)
because a substantial part of the events giving rise to the claims occurred in Seattle,
Washington.
V. FIRST CAUSE OF ACTION: SECURITIES FRAUD (17 C.F.R. §240.106.5)
5.1 Paragraphs 1.1 through 4.4 are incorporated as if fully set forth herein.
5.2 The defendants posted misleading statements about plaintiffs ZiaSun and Anthony L.
Tobin.
5.3 The statements disseminated by defendants include but are not limited to false
allegations of criminal behavior, involvement in pornography, improper financial interests,
improper promotion techniques, and dissemination of false and misleading company and
other information to the public.
5.4 The statements disseminated by defendants were material because a reasonable
investor would attach importance to them in determining his/her investment strategy with
regards to ZiaSun stock.
5.5 Defendants' statements were made in connection with the purchase and/or sale of
securities in the United States.
5.6 Defendants' statements were made with scienter because they were disseminated
with the purpose of negatively impacting ZiaSun stock for defendants' own benefit.
VI. SECOND CAUSE OF ACTION: SECURITIES FRAUD (RCW.21.20 ET SEQ.)
6.1 Paragraphs 1.1 through 5.6 are incorporated as if fully set forth herein.
6.2 Defendants were involved directly or indirectly in connection with the offer, sale or
purchase of ZiaSun securities.
6.3 Defendants made untrue statements of material fact with regards to ZiaSun
Technologies, Inc. and ZiaSun executives.
6.4 Defendants' statements were made in connection with the purchase and/or sale of
securities.
6.5 Defendants are civilly liable under RCW §21.20.430(2).
VII. THIRD CAUSE OF ACTION: SECURITIES FRAUD (RCW 21.20.ET SEQ.)
7.1 Paragraphs 1.1 through 6.5 are incorporated as if fully set forth herein.
7.2 The statements disseminated by defendants on the Silicon Investor message boards
were false and/or made with malicious intent.
7.3 The statements disseminated by defendants on the Silicon Investor message boards
were unprivileged communications.
7.4 Defendants' dissemination of the statements on the Silicon Investor message boards
was negligent and/or made with reckless disregard for the truth.
7.5 The statements disseminated by defendants on the Silicon Investor message boards
caused substantial damages to plaintiffs.
VIII. FOURTH CAUSE OF ACTION: WASHINGTON CONSUMER
PROTECTION ACT VIOLATION (RCW 19.86.ET SEQ)
8.1 Paragraphs 1.1 through 7.5 are incorporated as if fully set forth herein.
8.2 Defendants' acts or practice of disseminating false and misleading statements on the
Silicon Investor message boards are unfair or deceptive.
8.3 Defendants' dissemination of the false and misleading statements on the Silicon
Investor message boards occurred in trade or commerce.
8.4 Defendants' dissemination of the false and misleading statements on the Silicon
Investor message boards has a public interest impact.
8.5 Plaintiffs suffered injury to their business or property as a direct result of Defendants'
dissemination of the false and misleading statements on the Silicon Investor message
boards.
8.6 Plaintiffs' damages were caused by, and a direct result of, defendants' dissemination
of the false and misleading statements on the Silicon Investor message boards.
IX. FIFTH CAUSE OF ACTION: INTENTIONAL INTERFERENCE WITH
BUSINESS EXPECTANCY
9.1 Paragraphs 1.1 through 8.6 are incorporated as if fully set forth herein.
9.2 Plaintiffs have, and have had, valid contractual business expectancies of which
Defendants have, and have had, knowledge.
9.3 By disseminating the false and misleading statements on the Silicon Investor message
boards, defendants intentionally interfered with plaintiffs contractual relationships and/or
business expectancies, and induced or caused the breach or termination of those
relationships and/or expectancies.
9.4 By disseminating the false and misleading statements on the Silicon Investor message
boards, defendants interfered for an improper purpose and or used improper means.
9.5 Plaintiffs' damages are a direct result of defendants' conduct.
X. SIXTH CAUSE OF ACTION: FEDERAL RICO (28 USC §1962)
10.1 Paragraphs 1.1 through 9.5 are incorporated as if fully set forth herein.
10.2 Upon information and/or belief, defendants are part of an enterprise, working in
concert for the same purpose.
10.3 Defendants' enterprise conducts its activities via the Internet, and affects interstate
commerce.
10.4 Defendants are associated with the above-described enterprise.
10.5 Defendants participated either directly or indirectly in the conduct of the affairs of
the enterprise.
10.5 Defendants participated in the commission of at least two racketeering acts.
10.6 By reason of defendants' acts set forth in Paragraphs 10.2 through 10.5, defendants
have caused injury to plaintiffs' business or property.
XI. SEVENTH CAUSE OF ACTION: WASHINGTON'S CRIMINAL
PROFITEERING ACT (RCW 9A.82 ET SEQ)
11.1 Paragraphs 1.1 through 10.6 are incorporated as if fully set forth herein.
11.2 Plaintiffs sustained injury to their business and property by act of defendants'
criminal profiteering that is a pattern of criminal profiteering.
11.3 Defendants' act of securities fraud is criminal profiteering under RCW
§9A.82.060(4).
XII. EIGHTH CAUSE OF ACTION: INJUNCTIVE RELIEF (RCW §7.4.ET SEQ.)
12.1 Paragraphs 1.1 through 11.3 are incorporated as if fully set forth herein.
12.2 Plaintiffs have clear legal and equitable rights which are being irreparably harmed by
virtue of defendants' acts, as stated above.
12.3 By virtue of defendants' acts, as stated above, plaintiffs have a well grounded fear
of immediate invasion of their legal and equitable rights.
12.4 Defendants' acts complained of are resulting in and will result in actual and
substantial injury to plaintiffs for which there is no adequate remedy at law.
12.5 Plaintiffs' are entitled to a temporary and permanent injunction against each
defendant, enjoining him from engaging in the acts set forth above.
XIII. DAMAGES
13.1 Defendants' conduct directed at plaintiffs was malicious, willful, wanton, reckless,
vexatious, oppressive, intentional, and/or in blatant disregard of the truth and/or safety
and rights of others. Although subject to jurisdiction in Washington, each defendants'
most significant relationship to the controversy exists in their respective home states.
Plaintiffs are therefore entitled to an award of enhanced compensatory damages and
punitive damages pursuant to the laws of each defendants' home state.
13.2 The effect of defendants' false and misleading statements on the Internet has
resulted in direct harm to ZiaSun Technologies' reputation, share values, business
relationships, contracts and dealings with others, in an amount to be proven at trial.
13.3 The effect of defendants' false and misleading statements has resulted in direct harm
to Anthony L. Tobin's reputation, business relationships, contracts and dealings with
others in an amount to be proven at trial.
13.4 The defendants, through their dissemination of false and misleading statements about
plaintiffs, have improperly made significant profits, all of which should be disgorged.
13.5 Defendants, through their false and misleading statements about ZiaSun
and Mr. Tobin, have caused plaintiffs to incur significant direct consequential damages,
including attorney's fees, costs, employment time and other such damages in an amount
to be proven at trial.
WHEREFORE, Plaintiffs ZiaSun Technologies, Inc. and Anthony L. Tobin request that
this Court grant the following relief:
(a) Judgment for compensatory damages, together with interest thereon, at legal rate,
plus additional and consequential damages, in an amount to be determined at trial;
(b) Judgment for enhanced compensatory damages and punitive damages according to
the law where each defendant's acts were undertaken;
(c) Judgment for enhanced damages as authorized by R.C.W. 19.86 et seq;
(d) Judgment for costs incurred herein, including attorneys' fees, to the fullest extent
allowed by law;
(d) Judgment to permanently enjoin the defendants from issuing malicious, false and
misleading statements concerning plaintiffs;
(e) Such other and legal and equitable relief as this court may deem just and equitable.
RESPECTFULLY SUBMITTED this ____ day of June, 1999.
WEISS, JENSEN, ELLIS & HOWARD
__________________________________
Christopher H. Howard, WSBA# 11074
Brian L. Myers, WSBA# 14467
Patrick S. Pearce, WSBA# 20857
of Attorneys for Plaintiffs
DEMAND FOR JURY
Pursuant to Federal Rule of Civil Procedure 38, these plaintiffs demand trial on all issues
pertaining to it in this matter be by a jury of six (6).
DATED this ______ day of June, 1999.
WEISS, JENSEN, ELLIS & HOWARD
__________________________________
Christopher H. Howard, WSBA# 11074
Brian L. Myers, WSBA# 14467
Patrick S. Pearce, WSBA# 20857
of Attorneys for Plaintiffs |
