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Lisa J. Borodkin (CA Bar #196412) lborodkin@zuberlaw.com

Admitted Pro Hac Vice Quarles & Brady LLP
Firm State Bar No. 00443100 Renaissance One, Two North Central Ave. Phoenix, AZ 85004-2391
TELEPHONE 602.229.5200

John S. Craiger (#021731) John.Craiger@quarles.com David E. Funkhouser III (#022449) David.Funkhouser@quarles.com Attorneys for Defendant Lisa Jean Borodkin

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA XCENTRIC VENTURES, L.L.C., an Arizona limited liability company, Plaintiff, v. LISA JEAN BORODKIN and JOHN DOE BORODKIN, husband and wife; RAYMOND MOBREZ and ILIANA LLANERAS, husband and wife; DANIEL BLACKERT and JANE DOE BLACKERT, husband and wife; ASIA ECONOMIC INSTITUTE, LLC, a California limited liability company, DOES 1-10, inclusive, Defendants. No. 2:11-CV-01426-PHX-GMS VERIFIED ANSWER OF DEFENDANT LISA JEAN BORODKIN TO VERIFIED FIRST AMENDED COMPLAINT JURY TRIAL DEMANDED (Assigned to the Honorable G. Murray Snow)

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For her answer to the Verified First Amended Complaint filed by Plaintiff Xcentric Ventures, L.L.C. ("Xcentric"), defendant Lisa Jean Borodkin ("Defendant"), responds as follows: 1. Defendant denies all allegations in paragraph 1. PARTIES 2. Defendant is without sufficient knowledge or information to respond to the

allegations in paragraph 2 and therefore denies the same. 3. With respect to paragraph 3, Defendant admits that she is licensed to

practice law in the States of California and New York. Defendant denies the remaining allegations in paragraph 3. 4. 5. 6. Defendant admits all allegations in paragraph 4. Defendant admits all allegations in paragraph 5. Defendant is without sufficient knowledge or information to respond to the

allegations in paragraph 6 and therefore denies the same. 7. Defendant is without sufficient knowledge or information to respond to the

allegations in paragraph 7 and therefore denies the same. JURISDICTION AND VENUE 8. 9. 10. Defendant denies the allegations in paragraph 8. Defendant admits the allegations in paragraph 9. Defendant admits the allegations in paragraph 10. ALLEGATIONS COMMON TO ALL CLAIMS 11. Defendant admits that the Ripoff Report is, among other things, a website.

Defendant denies all other allegations contained in paragraph 11. 12. Defendant admits that content published on the Ripoff Report often ranks

very high in Google[sic] and that individuals or businesses with complaints on the Ripoff Report website may be negatively impacted. Defendant denies all other allegations

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contained in paragraph 12. 13. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 13 and therefore denies the same. 14. 15. 16. Defendant denies the allegations contained in paragraph 14. Defendant denies the allegations contained in paragraph 15. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 16 and therefore denies the same. 17. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 17 and therefore denies the same. 18. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 18 and therefore denies the same. 19. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 19 and therefore denies the same. 20. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 20 and therefore denies the same. 21. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 21 and therefore denies the same. 22. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 22 and therefore denies the same. 23. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 23 and therefore denies the same. 24. 25. Defendant denies the allegations contained in paragraph 24. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 25 and therefore denies the same. 26. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 26 and therefore denies the same.

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27.

With respect to paragraph 27, Defendant admits only that the Asia Litigation Defendant denies the remaining allegations

was commenced on January 27, 2010. contained in paragraph 27. 28.

With respect to paragraph 28, Defendant affirmatively states that Exhibit A

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 28 and therefore denies the same. 29. Defendant admits that the Original Complaint in the California Action

asserted, among other things, two RICO causes of action, including one predicated on wire fraud. Exhibit A speaks for itself. Defendant denies the remaining allegations in paragraph 29. 30. 31. Defendant admits the remaining allegations contained in paragraph 30. With respect to paragraph 31, Defendant affirmatively states that Exhibit B

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 31 and therefore denies the same. 32. With respect to paragraph 32, Defendant affirmatively states that Exhibits C

and D attached to the Verified First Amended Complaint speak for themselves. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 32 and therefore denies the same. 33. With respect to paragraph 33, Defendant affirmatively states that Exhibit C

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 33 and therefore denies the same. 34. With respect to paragraph 34, Defendant affirmatively states that Exhibit C

attached to the Verified First Amended Complaint speaks for itself. Defendant is without

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sufficient knowledge or information to respond to the remaining allegations contained in paragraph 34 and therefore denies the same. 35. With respect to paragraph 35, Defendant affirmatively states that Exhibit C

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 35 and therefore denies the same. 36. With respect to paragraph 36, Defendant affirmatively states that Exhibit D

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 36 and therefore denies the same. 37. With respect to paragraph 37, Defendant affirmatively states that Exhibit D

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 37 and therefore denies the same. 38. With respect to paragraph 38, Defendant affirmatively states that Exhibit D

attached to the Verified First Amended Complaint speaks for itself. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 38 and therefore denies the same. 39. 40. Defendant admits the allegations contained in paragraph 39. Defendant is without sufficient knowledge or information to respond to the

allegations contained in paragraph 40 and therefore denies the same. 41. 42. 43. Defendant denies the allegations contained in paragraph 41. Defendant denies the allegations contained in paragraph 42. With respect to paragraph 43, Defendant affirmatively states that Exhibit E

attached to the Verified First Amended Complaint speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in

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paragraph 43. 44. With respect to paragraph 44, Defendant affirmatively states that Exhibit E

attached to the Verified First Amended Complaint speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 44. 45. With respect to paragraph 45, Defendant affirmatively states that Exhibit E

attached to the Verified First Amended Complaint speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 45. 46. With respect to paragraph 46, Defendant affirmatively states that Exhibit E

attached to the Verified First Amended Complaint speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 46. 47. With respect to paragraph 47, Defendant admits only that she did not

withdraw from the Asia Litigation. Defendant denies the remaining allegations contained in paragraph 47. 48. With respect to paragraph 48, Defendant affirmatively states that Exhibits F

and G attached to the Verified First Amended Complaint speak for themselves. Defendant is without sufficient knowledge or information to respond to the remaining allegations contained in paragraph 48 and therefore denies the same. 49. With respect to paragraph 49, Defendant affirmatively states that Exhibit F

attached to the Verified First Amended Complaint speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 49. 50. 51. Defendant denies the allegations contained in paragraph 50. With respect to paragraph 51, Defendant affirmatively states that the Motion

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for Summary Judgment filed by Xcentric and Magedson in the Asia Litigation speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 51. 52. Defendant admits only that she opposed Xcentric's Motion for Summary

Judgment. Defendant denies the remaining allegations contained in paragraph 52. 53. With respect to paragraph 53, Defendant admits only that she filed the Ex

Parte Motion referenced in paragraph 53. Defendant denies the remaining allegations contained in paragraph 53. 54. With respect to paragraph 54, Defendant affirmatively states that the July 9, Defendant denies the

2010 pleading referenced in paragraph 54 speaks for itself. remaining allegations contained in paragraph 54. 55. 56.

Defendant denies the allegations contained in paragraph 55. With respect to paragraph 56, Defendant affirmatively states that the July Defendant denies the

19, 2010 Order referenced in paragraph 56 speaks for itself. remaining allegations contained in paragraph 56. 57.

With respect to paragraph 57, Defendant admits only that she assisted in the

preparation of the First Amended Complaint referenced in paragraph 57. Defendant denies the remaining allegations contained in paragraph 57. 58. With respect to paragraph 58, Defendant admits only that she filed the

Motion for Reconsideration and accompanying declaration in support thereof referenced in paragraph 58. Defendant denies the remaining allegations contained in paragraph 58. 59. 60. Defendant admits the allegations contained in paragraph 59. With respect to paragraph 60, Defendant admits only that she filed the Rule

56(f) Motion referenced in paragraph 60. Defendant denies the remaining allegations contained in paragraph 60. 61. Defendant denies the allegations contained in paragraph 61.

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62. 63.

Defendant denies the allegations contained in paragraph 62. With respect to paragraph 63, Defendant admits only that the District Court Defendant is without sufficient

vacated the hearing referenced in paragraph 63.

knowledge or information to respond to the remaining allegations contained in paragraph 63 and therefore denies the same. 64. With respect to paragraph 64, Defendant affirmatively states that the Order

referenced in paragraph 64 speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 64. 65. With respect to paragraph 65, Defendant affirmatively states that the Order

referenced in paragraph 65 speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 65. 66. With respect to paragraph 66, Defendant affirmatively states that Exhibit H

attached to the Verified First Amended Complaint speaks for itself. To the extent any additional response is necessary, Defendant denies any remaining allegations contained in paragraph 66. FIRST CAUSE OF ACTION WRONGFUL INITIATION OF CIVIL PROCEEDINGS 67. With respect to paragraph 67, Defendant reincorporates each and every

response contained above and incorporates the same herein by reference. 68. With respect to paragraph 68, Defendant affirmatively states that Xcentric's

First Cause of Action does not state a claim for relief against Defendant, and therefore no response is necessary. To the extent any response is necessary, Defendant affirmatively states that she is without sufficient knowledge or information to respond to the allegations contained in paragraph 68 and therefore denies the same. 69. With respect to paragraph 69, Defendant affirmatively states that Xcentric's

First Cause of Action does not state a claim for relief against Defendant, and therefore no

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response is necessary. To the extent any response is necessary, Defendant affirmatively states that she is without sufficient knowledge or information to respond to the allegations contained in paragraph 69 and therefore denies the same. 70. With respect to paragraph 70, Defendant affirmatively states that Xcentric's

First Cause of Action does not state a claim for relief against Defendant, and therefore no response is necessary. To the extent any response is necessary, Defendant affirmatively states that she is without sufficient knowledge or information to respond to the allegations contained in paragraph 70 and therefore denies the same. 71. With respect to paragraph 71, Defendant affirmatively states that Xcentric's

First Cause of Action does not state a claim for relief against Defendant, and therefore no response is necessary. To the extent any response is necessary, Defendant affirmatively states that she is without sufficient knowledge or information to respond to the allegations contained in paragraph 71 and therefore denies the same. 72. With respect to paragraph 72, Defendant affirmatively states that Xcentric's

First Cause of Action does not state a claim for relief against Defendant, and therefore no response is necessary. To the extent any response is necessary, Defendant affirmatively states that she is without sufficient knowledge or information to respond to the allegations contained in paragraph 72 and therefore denies the same. 73. With respect to paragraph 73, Defendant affirmatively states that Xcentric's

First Cause of Action does not state a claim for relief against Defendant, and therefore no response is necessary. To the extent any response is necessary, Defendant affirmatively states that she is without sufficient knowledge or information to respond to the allegations contained in paragraph 73 and therefore denies the same. SECOND CAUSE OF ACTION WRONGFUL CONTINUATION OF CIVIL PROCEEDINGS 74. With respect to paragraph 74, Defendant reincorporates each and every

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response contained above and incorporates the same herein by reference. 75. 76. 77. Defendant denies the allegations contained in paragraph 75. Defendant denies the allegations contained in paragraph 76. With respect to paragraph 77, Defendant affirmatively states that Exhibit I

attached to the Verified First Amended Complaint speaks for itself. Defendant denies any remaining allegations contained in paragraph 77. 78. 79. 80. 81. 82. 83. 84. Defendant denies the allegations contained in paragraph 78. Defendant denies the allegations contained in paragraph 79. Defendant admits the allegations contained in paragraph 80. Defendant denies the allegations contained in paragraph 81. Defendant denies the allegations contained in paragraph 82. Defendant denies the allegations contained in paragraph 83. Defendant denies the allegations contained in paragraph 84. THIRD CAUSE OF ACTION AIDING AND ABETTING TORTIOUS CONDUCT 85. With respect to paragraph 85, Defendant reincorporates each and every

response contained above and incorporates the same herein by reference. 86. 87. 88. 89. 90. 91. 92. Defendant denies the allegations contained in paragraph 86. Defendant denies the allegations contained in paragraph 87. Defendant denies the allegations contained in paragraph 88. Defendant denies the allegations contained in paragraph 89. Defendant denies the allegations contained in paragraph 90. Defendant denies the allegations contained in paragraph 91. Defendant denies each and every allegation contained in the Verified First

Amended Complaint not expressly admitted herein. 93. Defendant requests its attorneys' fees and costs in this matter, pursuant to

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the provisions of Fed. R. Civ. P. 11 and, if applicable, A.R.S. 12-349. AFFIRMATIVE DEFENSES 1. Xcentric's Verified First Amended Complaint fails to state a claim upon

which relief can be granted as against Dcvefendant and must, therefore, be dismissed as to her. 2. Plaintiff's injuries, if any, were the result of the conduct of the other named

defendants and/or that of non-parties who are or may be wholly or partially at fault. 3. Plaintiff's injuries, if any, were the result of Plaintiff's sole and separate

negligence, or of its contributory or comparative negligence, or of its assumption of the risk, and Plaintiff's claims are barred thereby, in whole or in part. 4. 5. Plaintiff is judicially, legally and equitably estopped from the claims herein. Plaintiffs allegations are barred by the doctrine of res judicata, collateral

estoppel, issue preclusion, or claim preclusion. 6. 7. Plaintiff's injuries, if any, are barred by the doctrine of unclean hands. Plaintiff's injuries, if any, are not the direct and proximate result of any

action or inaction by Defendant, but were caused by intervening or superseding causes. 8. Defendant alleges that she is entitled to recover the attorneys fees and costs

incurred in defending Plaintiff's claims pursuant to the provisions of Fed.R.Civ.P. 11 and, if applicable, A.R.S. 12-349. 9. Defendant reserves the right to assert additional affirmative defenses that

may be discovered in the course of this lawsuit, including but not limited to those set forth in Rule 8(c) of the Federal Rules of Civil Procedure. JURY DEMAND Defendant hereby demands a jury trial of all issues in this action that are triable to a jury. WHEREFORE, having fully answered the claims in the Verified First Amended

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Complaint, Defendant requests the following relief: A. That Plaintiff take nothing by its Verified First Amended Complaint, and

that the Court dismiss with prejudice the claims set forth therein; B. C. That the Court award Defendant her costs and attorneys' fees; and That the Court award such other and further relief as it may deem just and

proper under the circumstances. RESPECTFULLY SUBMITTED this 19th day of October, 2012. By /s/ Lisa J. Borodkin Lisa J. Borodkin Admitted Pro Hac Vice QUARLES & BRADY LLP Renaissance One, Two North Central Avenue Phoenix, AZ 85004-2391 John S. Craiger David E. Funkhouser III Attorneys for Lisa Jean Borodkin

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 EXECUTED ON: October 19, 2012 /s/ Lisa J. Borodkin LISA BORODKIN Pursuant to 28 U.S.C. 1746, I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. VERIFICATION I, LISA JEAN BORODKIN, hereby state that I have read the foregoing Verified Answer to the Verified First Amended Complaint and know the contents therein to be true to the best of my knowledge, except as to those matters herein stated upon information and belief, and as to such matters, I believe them to be true.

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CERTIFICATE OF SERVICE I hereby certify that on October 19, 2012, I electronically transmitted the attached document to the Clerk's Office using the CM/ECF System for filing and transmittal of a Notice of Electronic Filing to the following CM/ECF registrants:

David S. Gingras, Esq. (David@GingrasLaw.com) Attorneys for Plaintiff Raymond Mobrez (Raymond@asiaecon.org) Pro se Iliana Llaneras (iliana@asiaecon.org) Pro se /s/ Lisa J. Borodkin

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