fraud

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Lacagnina v. Comprehend Sys. Inc., 25 Cal. App. 5th 955 (2018)

David Lacagnina sued his former employer for fraud, breach of contract, breach of the implied covenant of good faith and fair dealing and “theft of labor by false pretenses” in violation of Cal. Pen. Code §§ 484 and 496.  The jury awarded $556,446 in damages, including $226,446 in damages for fraud and…

United States v. Nosal, 676 F.3d 854 (2012) (en banc)

In this criminal proceeding brought under the Computer Fraud and Abuse Act (“CFAA”), the United States government filed a 20-count indictment against David Nosal (a former employee of Korn/Ferry International) and his accomplices (also from Korn/Ferry) as a result of their obtaining information from their employer’s computer system for the purpose of defrauding Korn/Ferry…

NewLife Sciences, Inc. v. Weinstock, 197 Cal. App. 4th 676 (2011)

NewLife terminated the employment of Ronald Weinstock, the purported inventor of a Therapeutic Magnetic Resonance Device (“TMRD”), which NewLife had purchased approximately one year before the termination. In connection with its purchase of the TMRD, NewLife had obtained a non-compete covenant, which prohibited Weinstock from competing for five years after the termination of…

U.S. v. Nosal, 642 F.3d 781 (2011)

In this criminal proceeding brought under the Computer Fraud and Abuse Act (“CFAA”), the United States government filed a 20-count indictment against David Nosal (a former employee of Korn/Ferry International) and his accomplices (also from Korn/Ferry) as a result of their obtaining information from their employer’s computer system for the purpose of defrauding Korn/Ferry and helping Nosal…

Baker v. American Horticulture Supply, Inc., 186 Cal. App. 4th 1059 (2010)

Edwin Baker worked as an independent wholesale sales representative for American Horticulture Supply, Inc. (“AHS”). A jury returned verdicts in Baker’s favor on his breach of contract and fraud claims, but the trial court ordered a new trial on the grounds of insufficiency of evidence, excessive damages and juror misconduct. The trial court granted AHS’s motion for directed verdict as to Baker’s statutory claim for violation of the Independent Wholesale Sales Representatives Contractual Relations Act of 1990 (Cal. Civ. Code § 1738.10, et seq.) on the ground that there was no evidence that AHS’s violation of the statute was “willful.” The Court of Appeal affirmed the trial court’s ordering a new trial on the non-statutory claims, but reversed its dismissal of the statutory claim after concluding that “there is no evidence … the Legislature intended to immunize a nonwillful violation of the Act.”

Wald v. Truspeed, 184 Cal. App. 4th 378 (2010)

Alex Wald, who is in the business of “finding, buying and then selling again used Porsches,” found 11 Porsches for Truspeed (a car dealer), which Truspeed sold without paying Wald the finder’s fee. In response to Wald’s lawsuit against Truspeed alleging breach of contract, unjust enrichment and fraud, Truspeed asserted that Wald lacked a dealer’s…

Casella v. SouthWest Dealer Services, 157 Cal. App. 4th 1127 (2007)

Zachary Casella was employed as a sales representative for SouthWest Dealer Services, which sells its aftermarket auto products to auto dealerships and helps train auto dealership finance and insurance salespeople on how to promote and sell SouthWest’s products. Casella moved from New York to California to accept the position. After his employment was…

Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit, 547 U.S. 547 U.S. 71, 126 S. Ct. 1503 (2006)

Shadi Dabit, a former Merrill Lynch broker, filed this class action on behalf of himself and all other former or current brokers who, while employed by Merrill Lynch, owned and continued to own securities. Dabit alleged Merrill Lynch breached the fiduciary duty and covenant of…

Leegin Creative Leather Prods., Inc. v. Diaz, 131 Cal. App. 4th 1517 (2005)

Leegin Creative Leather Products, Inc. filed a civil fraud complaint against one of its employees after it learned that the employee had filed a false workers’ compensation claim against the company. Leegin alleged that it had been damaged by the filing of the false claim because its insurance premiums and reserves…

In re Cossu, 410 F.3d 591 (9th Cir. 2005)

Jefferson Pilot Securities filed a claim in the bankruptcy proceeding of Claude Cossu, one of its former broker-dealers, who had failed to report his outside business activities to Jefferson Pilot (for which he was an NASD-registered representative). Cossu was aware that under NASD guidelines, he was not permitted to engage in private securities transactions without…