FILED IN MY OFFICE

DISTRICT COURT CLERK

4t8t201412.49..50 PM
GREGORY T, IRELAND
STA

OF NEW MEX]CO
TY OF BERNALILLO
ruDICIAL DISTRICT COURT

Tracie Laahty

JOSE H C. LEE, THERESA K. LEE

AND OSEPII C. LEE REAL ES'IATE IRA, LLC

Piaintiffs,

Case No.

D-202-CV-2014-O2490

L, WILLIS, CARRIE S. \4TILLIS,

lly and as trustees of the BOBBY L.
AND CARRIE S.WILLIS TRUST,
\I/
ASSET MANAGEMENT, LLC,
TIM
J. COONEY, COONEY &
TES,INC., GOLDEN RULE, LLC, JJ
BON INVESTMENTS, INC. d/b/a NEW
MEXI
TITLE CO,, JTB DEVELOPMENT
PROP
.TIES 3, LLC, and JTB DEVELOPMENT
'I'IES 4, T,LC,
PROP
BO

indivi

Defendants.

;;;;;il;;;;il;*"

ro,io*us

F,oR BREACTT oF,

trIDUCIARY DUTY, WRONGF'UL MISREPRES ENTATION,

WRONGF'UL SECURITIES SALES AND IIWESTMENT ADYTSORY
PRA.CTICES, COI{\iERSION, BREACH OF, CONTRACT,
G AND TO IMPOSE CONSTRUCTI\TE TITUST'S
intiffs Joseph c. Lee, Theresa K. Lee and the Joseph c. Lee Real Estate IRA, LLC, by arrd
theiru[delsigned attomeys, complain against defendants BobbyL, Willis,
Bobby

Willis and Cat'rie

S,

Willis,

as trustees

Car:r.ie S.

Willis,

of ths Bobby L. lYillis aud Carrie S. Willis Trust,

Willis

Managemerrt, LLC, Tirnothy J. cooney, cooney & Associates, hrc., Golden Rule,

Bond h

ttnents, hrc. doing business as New Mexico Title Co., JTB Development pr-oper-ties
3,

I,I,C,

JTB Development Properties 4,LLC as fbllorvs:

JJ

PARTIES, PERSONAL JURISDICTION, AND YENUtr

l.
Nerv

Plafurtiffs Joseph C. Lee and Thetesa K. Lee (the 'Zees') are residents of the state

of

exico and resirle iu tbis judicial district.

7.

Otr infonnation and belief, Tirn Cooney for and on behalf of tl're Lees fonned the

t C. Lee Reai Estate IRA, LLC, a Colorado limited liability cornpany, lvhich, at times rnaterial

action rvas orvned in rvhole or in part by them (the'Ze e LLC' or inconjunction rvith the Lees

'iffr"),

3,
\YAS A

At tirnes material to Plaintiffs' claiirts, defendant Bobby L. Willis ("Bobby l1illis")

ident of the state of Nerv Mexico and tesided in the Eleventh Judicial Distrtct of the state

Nerv

of

ico. On infot'tnation and belief, presently he is a rcsident of the state of Missouri,

Ai times material to Plaintiffs' claims, defendant Canie S, Willis ('Carrie ltrillis')

was

idsnt of the state of Nerv Mexico, resided in tlre Elevctrth Judicial Dishict of the state

of

Willis's spouse, On Marsli 20,2072,hermaniageto Willis

in

Nerv
a

ico, and rvas

rvas dissolved

civi actiotr conlnenced in the Eleventlt Judicial Dishict, On information and beliefi presentiy, she

isa

ident of the state of New Mexico.

5,

On infomration and bclicf, Dcflenclants l3obby Willis and Carrie Willis are the trustees

of the

obby L.

arrd

'ie

i.
Mex

Willis aud Can'ic S, Willis Tlust ("/'/rilis Tt'usf'), rvhich is a trust

that Bobtry

Willis

Willis formed in Neu, Mexico.

Defendant Willis Asset Managernent, LLC ("lYillis Asset

l,luutgenwil") is a Nerv

lirrtited liability colnpany organized by Bobby Willis and, at lirnes material to tlus action,

was

u'ued itt rt'hole or irt part

lry

the,r' At ali ti,res

\YiII 's and cart'ie willis's aitet'

ego
rcal

tiotriree fbr purposes of rlesigni.g

a,d

irnplerrrenf ir:g

t'e

investmettts ancl other transactions

that arc thc subject matter.of tlie
clairns ai issuehereirr.

7.
8'
fhe la

I)efendant Tir,othy J, Coo,cy (,,Coone.y,,)is

a

'esicletrt

nefbndatrt cooncy & Associates,

hc. ("c,-t4 , Ittc.')i.s

of the state of colorado ivith a principal

place of busi,ess
to this action,

)'
Rule

atrcl

rnaterial hcrcto, the e,fity se'ved

as Bobb1,

it

i'

of tlre state of Coloratlo,

a corpoi.ation organizecl u,der.

Dura,go, colora4o. At ti,res

was orvned ancl managed by Cooney,

ort infbtlnatiorl and belief the defendant

cntitykno',

as Golden Rule,

LLC (,,Golclett

is a Nerv Mexico limitecl liability

cornparly. At all times ,raterial to this
actio,, rhe

seryed

Bobby

willis's

and

cauie willis's alter

ego and

,o*ri'ee for purposes

e,tity

of desig.ing a'd

ing the teal estate investments and other

transacfions that are the subject rnatter
of the

11

claims t issue hercin.

I

prev
Bobby

0'

Detbrida,t JJ Bond Ltvestnrertts

,1nc, ("JJBorlrl') is a Nerv Mcxico cor.poratio, tSat
ly conducted a title itt.sulatrce and escron,
business in Nerv Mexico as Ne*,Mexico
Title co,

illis and car:'ie willis

Willis

set'r'ed as rlit'ectols ancl officcrs of

JJBond. Bobby

JJBond doirtg busittess as Neiv

Mexico

'litle co,

willis

arcl carrie

as their alter ego ancl norni,ee for

of designing and implementing the real

estate inveshnents and other transactio,s
that are
the subj

matter of the clairns at issue herein.

l

'

At all tirnes material hereto, JJBoncl and

Golden Rule failed to ernploy persons
rvitlr

minimal

sufficietlt expetieltce in operating

ol cond

iltg arl escro\1r business, failed to rrraintain

accurate books ancl recorrls, failed to account

title insularlcc corilparly, ,ranaging titlc t'ausactions,

cash receipts and disbursements, attd oliienvise conducted a

tbL i

title insurauce arrd escrorv

in an ttnsaf'e aud injurious lnarilrer iu violation of the Nerv fuIexico Title insurancc Larv, $$

59A-

Stat.

t. $$ 58-22-

and t

et seq. (1978)

(the "Title Itrsur(mce Lat+,"),the Nerv Mexico Escrou, Company Act, N.M,

et seq. (1978) (the "Escrotv

Act"), and t'egulatirins prorlulgateci under the Larv

Act.

12.

On February 10, 2012, the state of Neiv Mexico sued Bobby Willis, Ca*:ie Willis,

JJ

Golden Rule, a*d others in Finaucial Institutions Division r,.

101

-2A12-003'18 (Eleventh Judicial Dishict, Nerv Mexic o)

BobbyWillis

et al,, CaseNo.

("FID Case"), alleging among other

tltin

that Bobby Willis, Canje Willis, JJBond, and Goldel Rule lrad conducted a title insnrance

and

business in an uilsafe and injurious lllannel in violation of the Title hrsurance Law, the

Escro

Act, and the regulations pronrulgated thereunder,

13.
Finat

By oldel entered otr Aprll 25,2012, Juclge Rayrrond Ortiz irr the FID Case granted the

al hrstilution I)ivisioit's applicatiou for a receivel and placcd Nerv Mexico'fitte Co.'s

arrcl

Rule's escrow opei'atiorrs in a liquidating leceivership.

14.
tiabili

Defendant JTB Developmeut Propertics 3, Ll,C ("JT'B,i") is a Colorado lirnited

colllparty olganizecl b1, Cooncy, at the directiol 9f'Robb1,

Willis, Upon i6formatiorr alrl

belief no valid u'rittett operating agtectncnt cxists fol JTLI 3. Upon infbrmation

Willis and Carrie Willis

rrternb
110rn

tla

each executecl docurnents on behalf

arrd beliel; Cooney,

of JTB 3 as a tllarlager

or'

of the corrpany. Cooney, Bobby Willis and Carrie Willis uscd JTB 3 as tlieit alter ego and

fol

purposes

of desigtting and iurplementing tlic real

estate investrueuts aud other

ions lhat are the subject rnatter of the clairns at issue herefur.

15,

Defendant JTB Developrnent Plopclties 4, Lrc, (*JTB

4") is a Colorado linrited

ty company organized by Cooney, Upon infbrrnation and bclief; no valid rvritten operating
exists for JTB

4. Upon irrfonnatiou and belief, Cooney, Bobby Willis

and Can'ie

Willis

executed docurnents on behalf of JTB 4 as a manager or rnernber of the cornpany. Cootrey

have

Willis and Carlie Willis used JTB 4 as thcir aitel ego and nourinec ftrr purposes of <lesigning

and

plementing the real estate inr.eshnents and olhel tlansactious tlrat are the subjcct mattcr oftlte

clai,

at issue herein.
1

6.

Venue for this action in this judicial district is propel under N. M. Stat.

Am. $ 38-3- I

ADDITIONAL AI,LEGAT'IONS COI,INION TO ALL COUNTS

l7

The Lees have knorvn Dr. Rorurie J, Gamer

f iends. Dr. Gamer's

18,

("Dr. Garnet') for over thirty years and

nrother Alnie M. Lornau u,as defendant Bobby Willis's gteat-autrt.

tJpon infblnration and belicf, Bobby Willis pursuecl discussions rvith Dr. Garncr itt

2009 Hc replesented to Dr. Garnel that he coulcl clesig* au "iuvesftnent prograDr" for hirn, that he
had a

mbel of "good inveshnents" that rvete suiiable for hirn, solicited his interest in investing in

ploject that he clairned to be developing, and solicited his

the

:ans Adrninistration irospital

lIl

iu investing in the stalfiip ol various rnedical busincsses. In coturcctiott rvith

solici

ions, I3obby Willis replesented to Dr, Ganrcr that the Vetet'aus Adrninistration pt'oject

consi

of constructing public and private facilities for operating a Veterans Adrninistration

lltese

hospi al and associated private medical clinics, assisted living facilities, and related residential and

ial improverneuts to be located in Kirtland, Nerv Mexico ("Kirtland Projecf').

19.

Upotr infoltttatiott arrd belief, in thc coLu'se of tirese discussions Bobby Willis

rted to Dt', Ganlcr tlrat he ltad become rvealthy tluough his entrepreneurial efforts, that lris

rveal

B'as sLrfficiertt to last

and e{forts in the lirtrrre to philantluopl,, and tliat he rvanted lo use a portiorr of his rvealtlr to

ber

hini fol the lest of iris lifc, tlrat lre irrten<led to devotc his busipess

old, infirttt, and disabled vetet'atts, otlier disaclvantaged pelsous, arrd Nativc Arnericaris by
,irlg the Kirtlaud Project attd to diversify thc oi[-and-gas econolrly of San Juan
County by

tirtg its tax base and creating thousands of new jobs for the area.

20'

Dr. Lee was first intloduccd to the defendant Bobby Willis tll'ough Dr, Canrer in

2010, Dr. Lee rnet rvitlt 13obby

wiili

\Villis

claitned that lte rvas ilcveloping

and Dr. Garner in 2010 to discuss the Kirtlan(l Project. Bobby

a

Vetelaus Admirristration hospital

zurcl

lepresented to Dr'. Lee

that

Kirtland Project consisted of constructing public and private facilities for operating

Adrninistratiou liospital arid associated prtvate medical clinics.

\Yillis's Solicitation of the Lees to Design,

Inrpleurent, and Manage Their. Investments

Lt 2010, Defendanls, individually and tluough the Good offices of Dr. Garner;
r)lorleY ti'om the

them that

r
il1CO1

Lecs. Itt 2010, Bobby Willis lepresentecl to Dr. Garnel and tlie Lees,

if Dr. Carler

ancl the Lees entlusted hirri rvith ulolley and a porlion

aucl

ol their

t assets, he rvould invest these funds in an "i*vestrnent program" consisting of conseruative

producing properties and other investments that rvould deliver a "consistent lz%I.efum".

The in

trnetrt program that Bobby

Willis was developing

rvas a Veterans Adrninistr.ation hospital

plojec, ilt San.Iuan County, and proposed that Dr. Gamerand Dr. teeparticipatein thedevelopment

of vari

rnedical lines of business including participation as an investor irr the medical businesses

aiid aving a .olc irl rnattagi,,g

the lnedical practice aspecls
of trrc busiress. Bobby

deib,da,ts

22'

Lr or abor'tt August 2010 a,cl

agai,

Bobby
that

kte' that thc Lees rvere i'experie,ced

willis

i,

wiris

a,cr trre

anrl u,sophisticatecl i'r,estor.s.

october 2010, IVh.s. Lee spoke

rvi,r the

rega,cling atr irtvestrrert prog.aur

for the Lees. Bobby

willis

represe.ted

ittYestttreut progl'am lbr

rlre Lees rvoulcl be set up $,ith
a thir.ty year no sell policy
arrcl that fbr
fit'e yeals all inconre rvould be
leirrvestecl tbl gro$,th, In ycar

the

five,Z\o/oof iilcorne rvoukl be

7s%

to tlte Lees' In year tert, 50%

of ittcorne u'oulcl be rlisb,rsecl
to the Lees.

I, year fiftee,,

income rvill be disbursed to

tire Lees.

23'

otr or about octob et'2!,2010, coorey

co,firmecr tire abo'e structure of
the Lees

progl?rn, rvhich rvas directed

and set up by Bobby lVillis.

'

In ocfobel of 2010, Bobby

tDent H'oultl be irtvested irt

A*

willis lepreseiltetl further

vacattf land for flitule grorvtlr anrl

abcrut 50% ri,oulclire

tio, of REC a'cr si.gre farniry p.ope'ties i,

5

tnade

'

to fulrs. Lee that about 50%

of

i,

the lorv-e,cr rnarket,

Each of these l'epresetttatiorts and

assur?nces rva.s false antl

liatcriaI anrl Bobby willis

of thenr fbl the pulpose of irlducing

the Lees to enIust theilrnoney
to Sirn for invcst,rent,
Itr tlte coursc of these discussious,

Bobhywillis I'epr.eselteil turtler to Dr.

car:ier rv'o

relaled te infortnatiort to tlte Lees

that lte *'ouirl obtain aclditional fi*ancfurg
for the Kirtla.il p.ojcct

in

the

issued.

Mexico

of "industrial re,eurie borcrs" (',IRB") triat

lre rvas i,

trre process of.a,.augirrg to be

e t'eplresettted fL['ther t]rat lie hacl tlte

krtorvleclge, experierrce, aucl contacts

thc federal

go,c,u,c.t

Dr" Lce n'as

prirl'

to obtai, IRB fina*cirg for the

rvithi. Nerv

Kirtla,d project,

to dlaft docurnents, contracts and diagr-aurrnafical

rloclcls lbr the

of recruiting physicians fol the Kirtland Project,

28,

Each of these additional r'eptesentations and assurauccs \vas fulse and material and

Willis tuade eaclt oltltetn for the lrulpose of inducing the Lees to entrLrst their assets to him
for i

trent,

29,

Iti reliance on these misrepresentations and false assul?nces, the Lees agreed to irrvest

of One Million Dollars ($1,000,000) rvith BobbyWillis. The inveshnent occun'ed in

the

and Octobel ol2010.

Sept

Cooney's Participation irr Designing, Inlplementing,

aucl l{anaging The Lees' Investnients

30,

Bobby Willis recomrnended to Dr'. Garnel tlrat he engage defendant Cooney to assist

Willis rvith designiug, irnpletuentittg, and managing

t'epresented that he n as tlte managei'

31.

Bobby

the "investurent plopgam." Bobby

\Yillis

of his investrnent and tlrat Cooney rvas his agerrt.

Willis explained that Cooney was a certified public accountant, real

estate

iu Nerv Mexico arrd Colorado, aud expert irr mauagiug tax-deferrcd rcal estate exchangcs aud

Durango, Colorado corlpatty

O\Y

sucir

changes,

32.

ed

defendarrt Crq.A,

Ilc.

tlrat specialized in fhcilitating

Tluough C&A, Iuc., Coottey hel<l hirnself out to the public

ist" recogtrized
Ne'rv

trr:1ow11 as

as such by the Federation

as a

tax-defened exchange

ofExchange Accomrnodators and accredited by the

ico Real Estate Cornmission as ail inshustol of a tax-deferred exchanges continuing

n course for Nerv lvlexico license<l real estate brokers.

33.

Bobby Willis and Cooney further rcprcsented that Cooney was certified by the IRS as

ian of another inrlivirlual's IRA accouni.

34.

The Lees rvere also re-assured by the fact that Dr. Garneu rvas using Cooney.

35'

TheLeesacceptedBobbyWillis'srecomrnendationto engageC&A,Inc. and Cooney.

Willis attd Cooney recommended that to implerneril the "investrnent prograrn" an individual
account should be opened at a bank iu Durango, Colorado aurl BobbyWillis and Cooney
use tlte funds fiorn this accouttt to invest in JTB 3 to acquire real estate for tlie "investrnent
,)

36.

Each of these additional replesentations and assul"nces was false and rnaterial and

Wiltis and Cooney rnade

each

of them for the purpose of inducing the Lees to entrust their

to him for investrnent. The falsity of these representations did not becarne appare*t to the
Lees

il

about the middle of 2012,when Dr. Gamer called Dr. Lee ancl saicl "let's meet."

3'1.
"iil
*rJ

AdditionallS Bobby Willis artd Cooney recomrnended that the real estate in the

ttnent pt'ogratn" should be held in a Colorado Iirnited liability company to be known as

C, Lee Real Estate IRA,
rvas set up rvithin the

Lee

38.

LLC" ("Lee LLC),

a Colorado

Limited Liability Cornpany. The

IRA account for the pulpose of "investing" in JTB

3,

In late August 2010, Cooney furnished the Lees rvith an operating agleeurent for Lee

LLC. A copy of the Operating Agi'eeurent is attached as Exhibit A.

39.
('o

e.v

The operatitrg agt'eettreltt pror,ided tlrat Cooney Real Estate Lrr.estments, LLC

LLC'), a lirnited iiability

company that Cooney organized on

May 19,2010, u,outci

il]al

Lee

aud

.aged by Coottey and seryed as Cootrey's altel ego and nourirree fbr purposes of'assisting

LLC. Ott infottnation and beliel; at all times rnaterial helcto, Cooney LLC rvas oryneil

Bohb Willis with the desigrt, implemetrtalion, and rnanagernent of the Lees' "inveshnent prograrn"

alrd

h rnaking real estate investrneuts ort the l.ees' behalf,

40,
bet

hr Augr.rst 2010, Cooney also flrndshed the Lees rvith a r]lanilgenleut ageetrtetit

Coorrey LLC and Lee LLC. A copy of the nranagement agleement is attached as Exhibit B.

41. f ire managernent

wou

agleetnent provicled that Cooney, actirtg tllnugh Cooney LLC,

have the sole and exelusive rlght to manage tlte Properly (Real Estate and Other Non-

Trad ional Investments) in Lee LLC by, arnoilg other things, executing docutnents uecessary for

g, selling, and maintairring the real estate investments transacted through Lee LLC and
ing reuts from the rental of any such real estate, rvhich such rents 1vele to be deposited into a

uew'

vidual retirement account at a barrk in Durango, Colorado knorvn as lst Southwest Bank

("1s/

ilhwest IRA') for Lee LLC and into a separate demand deposit account at the sarne bank

("1s/

the

Account") for the Lees' beneflt, The agreement provided further that

as

tiorr for seruing as rnanagsr, Cooney LLC rvould be paid an "annual asset fee" of "A.25o/o

of

'htyest Bank

et value of all assets acquired for [Lee LLC] payable qualterly in afl'ears." The rninimurn
I asset fee rvas set at $500.00. The agreernent also provided that Cooney LLC rvould charge a
:y managernent

42.

fee" of "10.00% of rerttal incorne plus any costs ittcut't'ed."

Reiying on Bobby Willis's and Cooney's claimed expettise and tiusting that the
lolls rveie sound, at Cooney's direction and with his guidance irr or about late

2010, the Lees attetnpted to open the lst Southwest IRA,

43,

On

ol about Octob er 21,

201 0, Coorrey

up JTB 3 for the irrvcstrrents for the

oving the propelties into JTB

3.

notifjed the Lees that tlte Defcitdartts rvere

{Irtd, Cooney

also notified the Lees that the Defendants

Cooney sent the Lees a draft copy of the operating

l0

nt of JTB 3, rvhich specified that the Lee LLC rvas a 5o4 urernber in JTB 3.

JTB

44.

According to the operating agl'eement for JTB 3, Cooneyrvould be the manager of

and had

full porver to act on behalf of JTB 3 in all rnatters ircluding executiou of agrcernents
The purpose of .lTB 3 u,tls to acquire, develop and rnanage leal property,

and

Ott infonrtatiott artd belief, tlre articles of organization for iTB 3 rvere t'iied on

45.

9,2010,

46,

Upon information attd belief, Cooney rvas not qualified to be

nt,

IRA

a custodiarr

of tire Less

Cooney told the Lees to hansfer their retirement funds into his accouut because

rvas unable to set up a Roth

IRA account on behalf of the Lees as the custodian of their

at l"tSoutlnvest Bank,

47.

On or about October'25, 2010, the Lees tmnsfemed a paynent of $900,000 to the

, LLC

accouut allegedly

in consitleration for the 5% interest in JTB 3. A copy of this

ion is attached as Exhibit C,

48.
,

On or about November I 8, 201 0, the Lees transferred a

LLC account allegedly in cousideration fol the balance of the

paytent of $ I 00,000 to the

5olo

interest in JTB 3. A copy

tLairsaction is attached as Exhibit D.

purch

49.

OnoraboutDecernberZ'7,2010, theLeestrunsferued apayrnentof $1,145.21 tothe

i LLC

account allegedly in consideration for the IRA rollovel costs in conjunction rvith the

of the

50.

5olo

intelest in JTB 3. A copy of this transactiou is attaclred as Exhibit E.

I* or about lhe sutnmet' of 20l2,tlte Lees first Ieamed tlrat Bobby Willis and Cooney
and etnbezzled the erttilety of their S1,001,145.21 investrnent, rvhich the Lees

11

ited into Cooney LLC.

51.
that
igr
a

Prtor to the rniddle of 2012, the Lees rvere beirrg teassurcd prirnarily by Dr. Gamer

ir investrrent rvas doing ivell. The Lees requests to attend the JTB 3 amrual meetiugs rvere
The Lees \vel'e uever notif-red of any anrtual meetings to attend, despite Cooney's clairn that

ing had been held sometime in early 2011.

52.

Willis, Cooney aM Cooney, LLC have failed to returl the Lees' $1,001,145.21.
The Defendants' Property Transactiotts

53.
cond

di

On infonnatiou arrd belief Bobby

Willis

aud Cooney enteled into transactions and

ed the businesses of C&A, Inc., Golden Rule, JJ Bond,

rd of the corporate

fonn, Bobby Willis

iTB 3 and JTB 4 rvith

and Cooney rvere trausactiug business as

teckless

C&A, Inc.,

Rule, JJ Bor:.d, JTB 3 and JTB 4 as rnero alter egos to thetnselves, artd as such, the coufi
also disregard the corpot'ate fornr of all of these eutities.

54.

On infor:nation and belief the follorving pruperties, inler alia,were at the rrratel'ial

orvned by Bobby

Willis, Golden Rulg JJ Bond, JTB 3 aud/or JTB 4 of rvhich the I'}laintiffs

arr iuterest:
a.

a tract

b.

of land irr San Juatt Couuty located on County Road 6446 ("CR6446 Tract");

tract of land itt San Jnau Couttty located otr Couttly Road 6500 (CR6500'l't'ucl");

a palcel of real property located at 691Road 6100

a
rl,

il

Fruitlaud, Nerv Mcxico at rvhich

business krro\r,Jr as "Cline Video" lrad operatecl ("Cline ltideo Property"):

(i) trvo palcels of

re

al e state located at 19 Road 6330 and l0 Road 6271 in Fruitlatrd,

Neiv Mcxico, (ii) the "seller's interest" in

a real estate colrtl'act

peltaining to a 1:aroel
1^

of real estate located at 20 Road 6335 in Fruitland, and (iii) a parcel of leal estate
locate<i
"

e.

at 906 Walnut l)r'ive iri

Farrnington, New Mexico (collectively,

F r u i tl rur d /Fann i rtgl on P roper ti e s");

a palcei of leal property, including an otfice building ancl othel improrremeuts

tlieLeon, located at 410 East

l)rivq in Malshall, Micliigatr ("fufichigan OlJice

,r

D
l.
uililGt|lg
);

f.

an itrcotne producing property, tlris iuvestment consisted of six residential rental

propelties located on West Oak Street in Bioornf-ield, Nerv Mexico ("Oak Street
Renlal Proper4l'),

55.

Upou infonnation and belief on ot about May 21, 2010, Bobby Willis, tluough arr

tifled irr the tmnsaction

and

"Golden Rule, LLC", purclrased CR6446 Tract. On information

ief, for the entire CR6446 Tmct, Bobby Willis paid $354,380.

56.
One-

as

Upon infonnation and belief, Bobby Willis aud Cooney closed the sale of the CR6446

ird lnterest to Gauret' LLC on or abont May

27 ,201 0

tluough New Mexico Title Co. for $ I .2

millio

57.
C

2010

Upon infonnatiou and belief, Cooney, purporting to act as nrarraging rnelnber of

LLC, rvitltout Dr, GatLtet's knorvledge, subsequently signed

rvaranty deed dated July27,

rvhich Garnet' LLC conveyed the CR6446 O*e-Third h:terest back to Golden Rule.

's signafute on the

58.

deecl rvas acknowledged before a

Notary Public on August 16,2011.

Upon irtfonuation and belief, on or about May 21,2010 Bobby Willis and Car:'ie

n furtt caused tlre cntity

knoln as "Golclen Rulc, LLC" to purchase

CR6500 Tract that u'as

IJ

rvith the CR6446 Tract,

59.

Upon infounatiort and belief, BobliyWillis, purportedly

as

rranagingmenrber ofthe

knorvn as '*Golden Rulg LLC" subsequently signed a rvamanty deed dated July

27

,2010 by

Golden Rule conveycd the CR6500 Tract to JTB 3.

60,
tluou

Golden Ruie, purchased Cline Video Property.

61,
Nov

Nor

Upon information and belief, Cooney, subsequently signed a rvan:anty deed dated

4, 2010 try which Loman LLC conveyed the Cline Video Property to JTB 4,

62.
alrd

Uport infonnation and belief, on or about April 14, 2010, Bobby Willis, acting

Upon information and belief Cooney, purporting to act

as

ruarugel'of Lornan LLC

ithout Dr, Garner's ot Mrs. Lornan's knorvledgo, subsequeutly sigrred a wananty deed dated
4,2010 by rvhich Lomau LLC conveyed the Fruitland/Farrnington Property to JTB 4,

63,

Upon infonxation and belief, Bobby Willis and Canie Willis in their nominal

as co-trustees

of ths Willis Trust signed

rvaranty deed dated July 26, 201 0 by which they

the Oak Sh-eet Rental Propelty to Gamer

LLC,

Cooney, purporting to act as rnanager

of

LLC and u,ithout Dr. Ganter's knorvledge, subsequently sigued a wallauty deed dated
ber' 4, 20 i 0 by

64.

which Garner LLC conveycd the Oak Street ltental Plopelty to JTB 4,

On infbrmrttion and belief, Bobby \\rillis and Carlie Willis acquired a Michigan

Building. Otr information and belie[ the Michigau Office Building is cun:ently owled by
r Rule, and is subiect to the receivership order irr the FID Case.

65.

Upou infonnirtiort and beliefi the flurds plovided lry the I-ees rvcrc used in part to

upkeep and/ot maintain sorne or all of the above described properties.

14

Conversion of Other Cash Assefs

66.

The Lees transfeu'ed cash in the arnount of $1,001,145,21 to Cooney LLC.

67,

On ilformation and

68,

Bobby Willis and Cooney have not returned any of tho

belief BobbyWillis and Cooney converted this entire balance.

Le

es'

$ 1,00 I ,145.21

to the

STATEI\{trNT OF CLAIIUS
Count I
of
Ficluciary Duties]
[Breach
69.

Plaintiffs incorpotate by reference and reallege each of tlrc foregoing allegations.

70.

Bobby Willis and Cooney rvere fiduciades of the Lees.

71.

TIte Lees lepeatedly requestcd infotlratiorr legarding thc status of theil investrneut

201
a

to the
Lees

artd

2012, l'he Lccs also rcquested to attend arry ureelings of the conlpalty in u4rich they

perceutage. Horvever, neithel Bobby Willis nor Cooncy supplied any specitic inlbntratiorr
regarding the ureetings or horv theilfunds were beirlg invested, In January of 2012, the
reassut'ed by

Dr. Camer that theil ittvestmeut rvas safe and sound and that they had not

lly lost any funds.

72.
fiduci

By actirrg and failirrg to act as alleged herein, Bobby Willis and Cooneybleached their

dLrties,

73.

BobbyWillis's and Cooney's breaches offiduciarydutyproximatelycaused the Lees

rr cornper)satory damages

74,

in au amonut to bc established at hial.

Bobby Willis and Cooney breacherl thcir fiduciary duties intentionally

or,

altelrr ively, rvith reckless disregard of their duties to the Lees.

15

Couut II
[Conversion]

their'
1n

75.

Plaintitfs incorpot'ate by t'eference and reallege each of the tblegoing allegations.

76,

By acting arrd failing to act

n use or

reckl

heleil, Bobby Willis antl Cooney converted to

for the use ofothels iu concett rvith thern money belonging to the Lees and Lee LLC

atnount of at least
77

as alleged

1,000,000.00.

Bobby Willis

ar-rd

A copy of these transactions is attached

as

Exhibit F,

Cooney cottr.erted these monies inteutionallyor, alter:ratively,, rvith

disregard of the Lees aud Lee LLC's rtghts, title, and intelest in and to lhe rnonies,

Count

III

IFrauclJ

78.

Plaintiffs ittcotpolate by t'efercnce ancl leallege each of the foregoing allegations.

79.

By acting and failing to act as alleged herein, Bobb1,\\Iiltis and Cooney fi.audulently

the Lees and Lee LLC to enltust tlte surn of $1,001,145.21, or such other amount to be
at trial, to them for iur.estrnert.

80.
suffer'

Bobby Willis's and Cooney's fi'aud proxirnately caused the Lees and Lee LLC to

rnpensatory damages in an arnount to be established at trial.

81.

Bolrby Willis atrd Coottey rlefiaucled the Lccs and Lee LLC intentionally

or',

ii,ely, rvith reckless disregarcl of their duties to the Lees and Lee LLC.
Count IY
Securities
Sales Practices]
[\Yrongful

82.

Plaintiffs incorporate by refbtence and reallcge each of the folegoing allegatiorrs,

83.

By acting artd liriling to act as allcgcd hcrcin, Bobby Willis and Coouey employed a

schetne or artifice to defi'aud" the Lees and Lee LLC rvithiri the rneaning of tlte Nerv Mexico

r6

nn Secudties Act, N.M, Stat. Ann. g 58-13C-501(A).

84,

Byacting atd failing to act as alleged hercin, BobbyWillis and Cooneymadeuntrue

of fact and faiied to sfate

lnls
I

JL,.

necessaly rnaterial facts where such all ornission rvould be

ding lvithin the meaniug of the New Mexico Uniform Securjties Act, N.M. Stat. Ann. $ 58-

l(B),

85.

By acting and failing to act as alleged hercin, Bobby Willis and Cooney engaged in

ices or a coul'se of business, rvhich operated as a fi'aud or deceit upon the Lees and Lee

acts,

LLC ithin

the meaning of the Nerv Mexico Unifonn Securities Act, N,M. Stat. Arur, $ 58-13C-

s01(

86.
the

Bobby Willis's aud Cooney's rvrongful secudties sales practices proxiuately caused

and Lee LLC to suffer compensatory darnages in an arnount to be established at trial,

87,

Bobby Willis aud Coouey deflauded the Lees and Lee LLC intentionally or,

tively, rvitli reckless disregard of their duties to the Lees arrd Lee LLC.

Count \/
Investmcnt
Advisory Practiccs]
IWrongfirI
oo
uo.

Plaintift-s ittcorpoltrte by relbrence and reallege each of the foregoing ailegatious.

89.

By acting and failiitg to act as alleged herein, Bobby Willis and Cooney engagecl in

the

ttess of pr'oviding the Lees and Lcc LLC rvith invcstrncnt advicc unlarvflllly nndcr thc Ncw

Mex

Unifomr Sccr:rities Act, N.N4. Stat, Ann. $$ 5S-13C-403, -404.

90.

Byacting and failing to act as alleged herein, Bobby\Yillis and Cooney employed

"dcvi

scltetne or artifice to deh'autl" tlte I-ees aucl Lee LLC arrd otherlvise cngaged irr acts,

practi

, and coutses of cotrduct tltat opelatecl as a fi'aud or deceit upou the Lees aud Lee LLC
t7

u,it

llre rrreaning ol'N,lv{. Stat. Arrn.

91.

58-13C-502(AX1) ancl-(2),

BoblryWillis's and Cooney's rvrongfi.rl investrncnt advisolypractices proxiuiately

the Lees artd Lee

92'

ss

LLC to suffel cotnpettsatory darnages in an arnoult to be establisSeci

at trial,

Bobby Willis attd Cooney deflauded the Lees ancl Lee LLC intentionally or,

tiveiy, u'ith reckless clisregarclof theil duties to the Lee.s ancl Lee LLC.

Count VI
[Unfoir Praetices Act Yiolations]

93.

Plairrtitlb incotporate by ret'elence and reallege each of the lbregoirrg allegatiols,

94.

By acting and failing to act as alleged irelein, Bobby Willis ancl Cooncy knorvilgly

thlse or misleading oral or u,ritten statelnents and other representatiorrs ancl rnacle tfueur rvit6

disregard for their huth in connection with the sale of investrnent advisory services in their

legul

course of its trade ol'cotnfilelce.

95,
placti

The acts and failutes to act as alleged hercin constifute unfair or deceptive trarle

within the meaning of g 57-t2-2(D) of the Nerv Mexico unfair practices AcL

96.

By acting and failing to act as alleged lrerein, Bobby Willis and Cooney

also

uuconscionable trade pt'actices rvithin the rneaning of g 57- 12-2(EX1), -(2) of the Nerv

Mexi
abiti

Urtfair Practices Act by takirtg advantage of the Lees' and Lee LLC's lack of knou,ledge,
cxpcricncc or capacity to a grossly unfair degrcc.

q7,
under

-57-

Bobby Willis attrl Coottey are liable to the Lees autl Lee LLC for actual clamages

12- 10(B) of the

Untair Practices r\ct in a principal amount to be established at the merjts

heari
98.

Bobby Willis and Cooney are liabie to the Lees and Lee LLC for treble darnages

l8

$ 57-12-10(B) of the Unfair Przctices Act.

Count YII
Abetting, arttl Concerted Actionl
Aiding
and
Conspiracy,
[Civil

99.

Plaintiffs incorpomte by reference and reallege each of the foregoing allegations.

100. All

the defendants pursued a colrunon coulse of conduct, acted in concett and

rvith, and gave substantial assistance to one auother iu furtherance of tlreil comnon plau ot'
and aided and abetted each other in commission of the wilongs alleged hereirr.

101.

The purpose and effect of such common plau or design rvas to defraud the Lees and

Vlillis's and Cooney's fiduciary duties, and to comr.:rit

the othet'lylot1gs

Lee

to breach Bobby

as all

herein by depriving the Lees and Lee LLC of the rnonies at issue hetein and to profit fiorn

such

ivation to the defendants'

102.
other,

oln

As co-conspirators and

advantage and for their orvu benefit.

as pzuties rvho aided and abetted and acted in

concertrvith tlte

of defendants is liable to the Lees aud Lee LLC for the rvrongful conduct of the others as
hereirt.

Count VIII
[Racketcering Act Violations]

Coor

103.

Plaintiffs iucorporate by lefelcnce and leallegc each of tlte loregoing allegations.

104.

By acting arxl faiiing to act as allegetl ltet'eitt, Bobby Willis, Carlie Willis,

cngaged in a patterrr of

and

lacketeelilg u,ithin the meauiug ofNerv Mexico's Racketeering Act,

N.M. tat. Aln. $$ 30-42-3(4), -4 (1978).

105.

Bobby Willis's, Can'ie Willis's, and Cooney's patteir of racketeet'ilg proxirnately

the Lees and Lee LLC to suftbr compertsatory dauages irt att aLtttlttrtt to be established at tt'iai,

19

106'
the

By acting and failing to act as alleged herein, Bobby lVillis atd

Cooley are liable to

aud Lee

LLC for actual datnages anrl treble damages uncler N,M. Stat, Arur.

30-42-6(4).

Count IX
[Breach of Contract]

107.

Plaintiffs incorpotate by reference and reallege each of the foregoing

allegatio*s.

108'

Bobby Willis and Cooney agleed to fumish to the Lees ancl Lee LLC
the services

of

their rnoneysafelyand prudentlyancl to fumish suitable fiuancial and inveshnent

advisory

09'

By acting and failing to act

10,

BobbyWillis's and Cooney's breaches of agreementcaused theLees apd LeeLLCto

as alleged herein,

Bobby Willis and Cooneybreached t6eir

rsatory daurages in an amount to be establishetl at trial,

1

irrtentio

t.

Bobby rffillis and Cooney breached theit agreernents rvith the Lees ancl Lee LLC

lly or, altematively, rvith reckless disregald of the Lees'

aucl Lee

LLC's rights, title, apd

interest n the cash and real propefiy at issue herein,

Count X
[Constnrctive Trust]

LLC

as

12.

Plaintiffs incotporate by reference and reallege each of the foregoing allegations.

13.

Upon infonnation attd belief, defendants used money belonging to the Lees and Lee

lleged herei, to acquire i,terests in the following propertiesr

CR6446 Tract;
CR6500 Tlaet;

20

Cline Vidco Propefty;

D.

FruitlandiFannington Properties;

E.

Oak Street Rental PropertY; and

F,

Michigan Office Building.

1i4,

The Lees arrd Lee LLC are entitled to imposition of a corrstructive trust on each of
ies, fo1 theil [enefit, to secure payrnent of the amouttts due to thern,

15.

funpositiol of the constructive trust for the benefit of the Lees upon these properties,

rvith riority over the interests of defendants in such property, is ttecessary to prevent defendarrts'
emichrnent.

Count XI
[Accounting]

116.

Plairrtiffs incorporate by reference and reallege each of the foregoing allegations,

Ll7,

In the circunrstances presented, tlie Lees and Lee LLC are entitted to

complete and

accounting in detail of all the Inoney they enhusted to Bobby Willis and Cooney.

PRAYER FOR RELIEF'

WHEREFORE, plaintiffs Joseph C. Lee, Theresa K. Lee and Joseph C. Lee Real Estate IRA,
for the follorving reliefl

Entry of judgment in their favor attd jointly attd severally against defeudants for
nsatoty damages in au amount to be pl'oven at trial, plus prejudgmeut andI posdudgrnent
thereort to the fullest exteut pennitted by New Mexico larv, plus costs;

B.

Entry of judgrnetrt in their favor and jointly arrd severally agairst defendants for

damages

in an amount to be plovelr at ttial, plus prejudgtnetit and postjudgrnent interest

21

to the fullest extent per:rnitted rry Nerv Mexico Iaiv, prus

costs;

C'
puniti'

Entry of judgnent in their favor anrl jointly ancl severally

against defeldalts for

datnages itt att arnount to be pl'oven at hial, plus prejudgrnent

and postjuclgnrent ilterest

to tho fullest extent pe,nitted by Nerv Mexico law, plus costs;

'

Errtry ofjudgrnent in their favor aud jointly and sevemlly against defendants
for tt.eble

in au atnouut to lre plovell at trial, plus prejuclgrnent arrd postjudgrnent

interest thereon to
the tulI

extent perrnitted by Nerv Mexico larv, plus costs;

'
of

,'e,Jar$s'

plainti

the rcal estate and other putchase transactiots at issue herein and a refurrr
to such

of the illolley they paid, plus prejuitgrnent and postjudgrnent interest thereon
to the fi.rllest

extent

tted by New Mexico

.
arvard

Entry ofjudgtneut in their favor ancl jointly and sevelally against defen4alts
for

lal,

plus costs;

Entry ofjudgrnent in their favor aud jointly and severally against rlefendants for
a1

attomey's fees under the Unifonn securitiesAct (N.M. stat. Ann. gg

5s-l3c-s0g(BxI),

(c), -(F l), the Unfair Practices Act (N.M. Stat. Ann. g 57-12-10(B), and the Racketeering
Act,

30-+2-

) to the fullest extent pennitted by Ner.v Mexico larv;

Entry of an order compelling an accounting as requested herein; ancl

An award of such other and furlher relief as is just

ad

proper.

22

Dated: Albuquerque, Nerv Mexico

April 8,2014
"Electronically fiIed"
/s/ Paul Melendres. Attorney at Larv
Melend.res, Melendres & Hauigan p,C.
l0l7 sth Streer NW

NM B7t0Z
(s05) 243-83 I 0 / fax Z4j-92T l
paul@nelendt'eslarv. com
Albuquerque,

23

"t-

OPERATING AGBEEMENT
JOSEPH C, LEE RtrAL ESTATE IRA, LLC
A Colorado Llmited Liability Company

The undersigned, Joseph C. Lee IRA, as sigilatory to this Agreement, does lrereby
enta'into this Operating Agreement, at Durango, La Plata Coturty, Colorado, effective
this l 9th day of A.ugusti 201 0, under the name style of JOSEPH C. LEE REAL ESTATE
IRA, LLC, a Colorado Lirnited Liabififf Company, (the "LLC').
T

Inkoduction
The party has this day formed a limited liability company for the sole purpose of
orvning real estaie and other non-traditional investrnents in their Self-Directed IRA with
l'r Southwest Bank, Druango, Colorado.

II.
Place of Business
The priacipal place of bus,{ness of the LLC shall be 33 Invemess Place, Durango,
Colorado 8l 301, or other such address ts 'rvhiah the business may from time to time bo
moved.

IU.

Durationof ths LLC

The LLC sltall commence immediately, upon the signing of this Agreement and
shall continue for a term ofnot to e.xceed ten (10) years thoreafter unless terrninated
sooner by operation of larv or by agreement or reenacted after such primary term for strch
additional perlods as is determined by lhe member.

ry.
Purpose
The purpose ofthe-LlC ls to buy, sell; lease ald develop real propertry and
perform prqperty management for its membef. These fimotlons wilt be performed in the
United Slates of America.

.tr,{embor

Plrur*uer.

EXHIBIT

fi

"A"

v,
Rigbts and Duties of ihe.Member

'

The menrber agrees to undertake the responsibilities to perform the flInctions

of

the LLC.

u.
Costs and Expenses

AII exponses and debt service payments

are to be paid by the

LLC.

VII,
Debt
The indebtedness, if any, for the property acquired by the LLC shall be in the
name of the LLC,

VIH.
Meetings
The Member and Man*ger, as defined in Section IX below, shall meet annrrally to
a$sess the function and uso of the LLC. The arurual meeting shall be lreld on the second
A special meoting of the member and
Monday of January, begiruring rvith year 20I
properly
is
and
as
be
recorded
acquired and sol<l by the LLC.
manager shall
held

i.

ix.
Managoment
Management of said LLC shall be by Cooney Real Estate Investments, LLC,

(Manager). AII duties reqnired to be perforrned to accomplish the purposss of the LLC
shall be performed by the Manager, inclrrding exeouting docuraents necessary to buy, sell
and maintain real estate and olher non-traditional investments.

\r
Books
The LLC books shall be mai,niained at the office of ihe Mauager at 33 Invemess
Place,Durango,ColoradoBl30l. Thebooksshallbekoptonacalendaryearbasisand

shall be closed and balanced at the end ofeach calendar year,

be prepared and filed as required by larv.

All required fllings shall

ffi**ru

:'l i::

'"1:;:::--L_r'r::

--i+-:-rJJ;;'1"

.;-;-:;;---;l-:..i1--

iir':

: ' ' ::

11: l

)il,
lnsuritrce

to be plaoed on
Duriitg the holding of the acquired qqPedy, all insuranco lequired
LLe i* the oity, ooulty and state the
rtre acquir*d property shail be in the nam* of riru
properiy is located,

xII,
Death of Mernber

of
ln the everrt oftho deelh of a member,lhe executor or personal representative
the mernber shall continue with tlro management of the LLC'
the day and
IN W]TNESS WHEREOF,lhemembers have hereunto set th+ir hand
year fust above written
JOSEPH C. LBE IRA
__

/:\-.

,/;.- !

pr/osePh C\Lee
Wle{nber. *-

Timotliy

,R+

J.

Cooney

STATE OFNEW IvIEXICO

COTINTY

Of ?:fr,,*.r:*0, f.(o

)
) ss;
)

The forogoing was executed and att'oSted to

.lcrseplr C,Lec, a.s IRA Orvtler.

tU"

aay

Notary Ptrblic
My Commission
Srral

Expires; )1torroi

vo, zotT

of

1'rr'

' : :

ATEOF COLORADO

cbuNrv oFLAPLATA

ss:

hs&*dav

The foregoing was executed and attested 1s

Timothy-J, Cooney as lvlember of Cooney Real Estate

My CommissiouExpires;

seal

+/rt/e,r<,

of

20i0, by
4+n4'
LI"C'

@En@s,

ffi
@zoro

]\'IAN A GE I\'IENT r\ GR-EtrI{E NT

'

erltersd into ort ttris, the 19th day of August, 2010,

LLC (Manager) and Joseph C. Lee IRA
Estate.lnvEsfrnertts,
and arnong Cooney Real

TllIS AGRBEfuIENT is being

Ormcr).
WHBRBAS, Owner has acqulred tbe properli desoribed as SEB EKHIBII'uA"
,TTACHED, the Property in lhe narao of Jbseph C, LeeReal Estate IRA, LLC, and
WIIEREAS; Mdhager has agleed to mariage the Properfy upon and subject to lhe
and provisions hereof,

W,.IIIEI{EFORE, for and in consideratjon of the prer:tises and the mutual covenants
i

l:enefits herein set forth, Owner and Ma:'rager agtee that durilg the term of this
rment, Manager sirall bavo the sole atrd oxclusivo right to manage the Property,

Estate and Other Non-Trarlitioual Inveshlents) in Owrtsr's Self-Directed IRA with

ist Southwesi Bank, Durango, Colorado, upon and subject to the fol]orving teffIls,
ari<t

I.

mutual co1,en&ntsi

Managcmenl:

Orvrrer $atts to Managcr the solo anrl exclnsivB right to perform atl the dutres of
Matrager herein specified. Martager agrees to urrdertake the resportsibilities to
perfornr all the drrties required to be performed to accomplish the pwposes of the
Orvner, including sxecufing docume.pts neoess&ry to btty, sell and maintain tho
Properfy. 'Iho Manager wilL receive finy lent from any rental of the Properly and
pay the neoessary expenses of the Property,.included bu[ not limited to, taxe$,
insurance, mirintenance, mofley managernont fees and proporfy ntanagemeni fees
(not to be a d*ry of Manager).
The books shall be kept on a calendar yearbasis and shall be closed and balanced
rrt the encl of eaoh calendar year. Ali finanoial statements-ilrd 16;a peturn$ shirtl bp
prepared and EIed as req-uired by larv, All necessary reporting to l'{ Southwest
Bark, Durango, Colorado, inoludirrg valuation, will be promptly fiIed, Quarterly

repo{ing ta tlie Owner will be fumished by the Man*gor.

Qa{=

o,*.,

_]vlanager

Brrying Agent

*.P)"

2. Terml
The initiai term of this Agreement shall commurco on the d*te hereof and shall
terminate rvith the sale of thePrqperty, This Agreemerrt may be termilated by
eifher party for any reason u6:on thirty (30) dayp prior written notice to the other

party.

3.

Fces aud Disbursel nents:

The followings'fees rvill be obarged by the Manager:

An::ital Asset Fee;

A,25% of the marketv*lue of sll nssets

acquired for tho Orvner payabte quarterly in
Srroars.

Miirimum Annual Asset Fee: $500.00

Money Marragearent Feel

10.00o/o

ofrental income plirs any cosls

incuned"

All

rnonies received by Manager for.or ou behalf of Orvner and/or the Properfy

shall be deposited by lvlanager in e bank to be deslgnated by Manager, A-fter all
rpproved sxpert,ses and disbrusemelrts have be tnade by lvfaitager, tho remaining
monies, if any, will be paid over to i't Soutt*vestBank, Durango, Coloratlo for
deposit into Ownerrs IRA.

4,

Govcrr:iug Law:

This Agreenreni shall bo govemed by artd constrr:e<la*d interpreted in accordarice

with the laws of the Stato of Colorado,

VL

o,r,,*,

Managur

Buying Agent

[t

W",'

--

, "'-

-.--

,-li

l'
i
I

I
I
I

5.

No Joirrt Ventul'o or }flrt:rershipl

Owner and Matrager herehy renoun0o thc sxistsncB of any form ofjoint venfurc
or padnership beflveen them, and a$ee thai rtothing corrtained herein Or irt arry
document executed in conirectibn herewith shali be oonstrued 8$ making Manager
and Owrrer joint verEuers or parkrers,

6.

Modific.ttion or Tenrtinationl

This Agreemsnt may be amended, modrfted, terminated or rleased only by a

ryritten inshlme,nt pxesuted by Manager and'Ownor.

7. Tottl

Agrecment;

This Agreement is s total and completo integtatiorl of any and all, undertakings
regarding management existing botwoon Mdnager atd Orvner and zupersedes alry
prior oral or ntiften agle$rnetrts, promi5es or rs,pteserltation$ betrveen them. Ths
headings ofthe vario*s paragraphs ofthis Agreenretrt ar6 for eonvenionce only,
and shall not define, irrteqprot, affeol or prescribe tho msaring arrd interpretation
of the provisions of ihis Agreement.

agree with the terms artd condifions of this Management Agreement,

(Jrvucr:

J:rr*,4Albuquerquo, New Mexico 871 04

I
I
I

Managen

CooneyEeet Biatg Invesmrents,

LLg

33 Iriveraess Place

Duralgo, Colorado

B1

301

Personal Buying Agcnt of Aecount Holdcr:

By:

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sf

S{},{,.il,ttlt'jtil

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IRA Payment and Ftrndirtg fnstt'ttctions

1. Accttu
J

Namo

s First

WV
t'riilrfiry l'

Account#.
c[1.1,=LE&___ RBeffi ---

/ Pnyment Itrfornration

Numt

Ltst

Nrtme

]r4crnbcrshio in LLC
Purposo of Fayment (c.g., "Mr:mbcrship in

er

i\{emo Relcrcrtce (liscrorv #, APN #, Invoicc ll)

LLC, Iixpcnse Paynl?nt, purchilsc ProFefiy)

5oi inlcrcst
Nnrnr of I

2. Fundi

_vI

Instrucf ions

WnUi ot'

VIA Check

inc,lutlc.t, but

first
i

Sortlh

rrclud i ng

subjcct to tlll
and Fcdcrai

Amount

YIA Iuter Officc Trtrnsfer

Routirtg ll

Olhtr Inst

I agrcc lo

_X-

# 65610?495

Coonsy lloa! Estnte Investnrtnts

Account Nn

x'i(h [''ir'sl

or'

Bank NRnrc:

3, Autlrot

s900-00q

JTB Dcvelopdrcnt Piopcrlics 3, LLC.

ent {i.8., rranis o I assct ifl l,LC, LP or C-Corp, sec clr$ckli.sl ol resl propel(y)

-.-....----'-......'--

-Actcunt
ti6n

rnrrst bg nuthorlz.cd by thc A+courrtholtler, Bul,ing

Agtut nnd Assct lVlnttnger for tlto nc+ottrlt on fils

llfivesl Bftrrl(,
payment. 'l3tis
c. indunrrriff, ricf+ur[ and holtt First Southrvest Bank harmless I'or nny clnims rrrislng oul olthis
nnd agrcc
undsrsts[d
l_nlso
or
prtl(L'n(,
proper.
tega1,
div$slficd.
pftyrnefit
not
is
rhis
rfinl
nor limired io, claims
ro defatrtl'
no,ix itlfr noi bc r"sponsibf" ,i,-inr.r'"ni a.tior rt'rnuiO tHi- in*+itment noled hcrein bucome subject
'Ihe Payrncn{ nnd Ftrrxling ltlstrt}clions.aro,furlhcr
inr.iu.rry, tontrupily, or other coun oi,jer nr lcgal process,
rvith
First Southrvest []ank nntl irll npplic*blc Slate
{rgrceo}cnt
and coirditiorrs oftirc nccouuthotrler'sct,stodial

r)
1'.-\i

['erson*f lJu rrg Agent

{"1o

C'

the Account

lloldcr
Datll:

Tinr Coorrcy

Off ice U

r\s:;ut it'lonagct

Olly;

Proccss b;':

Tlln

Codc:

1\*0tesi

tr
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EXHIBIT

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IRA Paylnent and Fumding Lnstructions

wffieereb
Account #
i / Payrtrcnt Infornratlott
-Q_ __"r_g.t___-. 7rF"J4 It{,1. l,as{
Filrt Ntrrnt
Nrtnre

rlccrtunth

-\Mrl*r.!-ulrft i+r-- r*,

L.L5.

f',iiiruso ,if Pryruent (6g.. "N{cntburship

t'n nlirry

ttii,*'R. r";i, ie ir:t.i*i

irr

+.

aiiri'r[ rt"i,i.* tt t

l-1,(). Iixponrc I'itytncnl, purchrrsc Propcrly)

,tpoo.

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ln s fru cti

2. Funtl

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r

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fi'-r'

uulhnrize4 hy lho Aclorrrrthotdcr, l]uying Agent ortd Assot itl*ortger frrr llio accorrrtt ott lilc

rtgtert
lin\it0d irr. clitims tha( lhix pilyrlrtnt is itrt prudcrtt, prttpct, lcgal, 0r rtlYct'slllctl. I olso trttdcr.s(iintl itnd
l}rrrk *.ill not hc nrsponrihlc tn ilI,,o,tny irctitir't slrorrlrl Ibr: irrvr:s(mcttl notttl h,:rtirt htconrc strlrjt'cl lo rlciirrrll,
irrsolvcrtoy.tlartliruplcl,,rrrurircr0orrttorrl+rorlcgtl pruucss. t'hcl'itytttultlantl {rtlittJitlp, lttis{lilr'liortsuclitrllrcr

i)- t)ot

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Only:
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f)atcl
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pprtrt,trl by:

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EXHIBIT

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,6

sE ffier"-[d
nR-q Fayrnent and F ttnding trustructions
1. Accou

f ayment ftrfot'rir atiou

ilr,L Lasl N*rus

*i>o+ N*na,

lta\lorrAk

Purpose of Payuent (e.g., "Membership in

LLC, Expense Paymerr, prrrohas+ prop+rry)

Narne

ol

(1.c,, namo of

Memo Rclcreace (Bscrorv #, APN ll, Invoie #)

],te'

YIA Check

,r.

r.{-{-zt

Amoultt

as+t lf LLC, LP or GCorp, scc

Insfmcfions

\YIRE or

@keT@p

Account #

or ,r'-Wlrter

Otrice Transfer

Roudug #

BflnN Narflo!

^+ecount# cqslt

Account

l$'s 49$

L\c*

Otber

0B must be sutborizeit by tbo Acrguntholdcr, Buyiug Agcnt and Asset IlIauager for tLe'rtcouot ou file

3, Auth

Benlc

\Yltn I rrst

Ftrsl
lncludiag
subje+t to

hannlas tor axy otaims arising out of this paymenL This

nbt timitra io, cltdms tlat tiis paynrenr is Eqt pludcnt, proper, l+gal, or divsrsificd, I also urderstaad aad Slee
Bfif,k will aot be respoosibte tb talc any aetion should tho invsstfleu! noted hergin becomc subJect to defrult,
i::sqlt'i.noy, bariltrrptty, or odrer e.ourt oider or legal process, The Paymcni arrd F\rndlag Instrdctions are tbrthcr
anrl cotrditioos of rl':e accouatlroldu's cusloClal agr,Jeilcnt rvith lrirsl Southrvesi Bar& and aJI applicablo Sta'te

;e, inrJoruni.fy, dofi.rrd and hold l-irst S+uthrygst Banli

t agree to

include\ but

a1l

ald Frdcral

Dare: { 4'

OfEce Us Onlv:
Proeess byi

Trau Codel

Approverl try:

EXHIBIT
b

n
n'tt

8L_

ao'l

."..:

-.:ri i',.: : :'.u:-....-,' -:- 4

t soLrth\,\'dst BanK
rmoga . Cn[er r Del Norie ' Corle:
rango . Saguache . Pa9o5a SPri.rg$

PO Box

720 tvlain
71

055

8t67'1

1119'Alatnosa, Colorado 8110'|

or 866-641-fswB (3792)

'H C, LEE

ffi

&asg&

01/01/10 runu
,,,,

RA

SAVINGS

NUI}IBER ...TERI'I

,,,

i/TARKET VALUE

I,IATURITY

.00

REDEEFlED

ase"{@D

noi,

R CONTRIBUTION

(+)

INT

PAID TN.2O1O

{+)

TO ANOTHER

(-i

SOURCE

CREDITS

DEBITS

DESCRTPTION
'

.,

3-

,]-45 ,2L

,145 ,21

IRE FROI{ JOSEPH C I,EE

00

.00

FAIR I'lARl(ri1', I"/AirUE Ott :-2/3L/LO

ACCOUNT
INCOMfNG

1, 000, 000 . oo

1, 000, 000.

DEBTT TRANSACTIONS

OTH

12l3 1/10 FArR

ACCOIINT
TYPE

rzl:l/ro

PAGE

ROIJLOYER

A,t'IER

II.ITEREST

p in Jt'B DeveloPmcnE ProperL ies

Membe
900000.00
lieml:ersh p in Jre Developnlent ProperL ies
100000.00
Trans fer to rier,i Cusbodian

DATE

BAL.ANCE

oB/04/La

IRA TD
1000000.00 oB/Le/Lo
1145.2r oe/3A/10

l-,000r000,00

tO/25/to

101,145,21

s-t/ts/to

L,L45,?.L

72/2't /10

.00

7L45,2L

1, 001 , 145 ,21

EXHIBIT
!.EJ].

x-

Member FDIC

wr,rvw.fswb.com

An Equal Horrsing Lender