"AND JUSTICE FOR ALL"
Nachshon Draiman and Multiut charged with a $15 million judgment for fraud $21 million with interest
Honorable John A. Nordberg: Enter Memorandum Opinion and Order.
For the reasons set forth above, defendants motion for summary judgment is granted, and judgment is granted to plaintiff, and against defendants Multiut and Nachshon Draiman, Future Associates
Case 1:02-cv-07446 Document 228 Filed 06/11/2008 Page 1 of 1
UNITED STATES DISTRICT COURT
FOR THE Northern District of Illinois − CM/ECF LIVE, Ver 3.2.1
Eastern Division
Dynegy Marketing and Trade
Plaintiff,
v. Case No.: 1:02−cv−07446
Hon. John A. Nordberg
Multiut Corporation, Nachshon Draiman, Future Associates, et al.
Defendant.
NOTIFICATION OF DOCKET ENTRY
This docket entry was made by the Clerk on Wednesday, June 11, 2008:
MINUTE entry before the Honorable John A. Nordberg:Enter Memorandum
Opinion and Order. For the reasons set forth above, defendants motion for summary judgment is granted, and judgment is granted to plaintiff, and against defendants Multiut and Nachshon Draiman, on Counts I and II of plaintiffs amended complaint, in the amount of
$15,348,244.72 plus interest accruing from October 1, 2004. Judgment is granted for plaintiff Dynegy and against defendants Nachshon Draiman and Multiut on Counts I through VI of defendants
ATTENTION: This notice is being sent pursuant to Rule 77(d) of the Federal Rules of Civil Procedure or Rule 49(c) of the Federal Rules of Criminal Procedure. It was generated by CM/ECF, the automated docketing system used to maintain the civil and criminal dockets of this District. If a minute order or other document is enclosed, please refer to it for additional information.
For scheduled events, motion practices, recent opinions and other information, visit our web site at www.ilnd.uscourts.gov.
Nachshon Draiman, Chicago – nursing home administrator license (044001323). revoked
|
File Format: PDF/Adobe Acrobat - View as HTML
Nachshon Draiman, Chicago – nursing home administrator license (044001323). revoked and fined $2000 for misrepresenting information in his application ...
www.idfpr.com/Forms/DISCPLN/0108_dis.pdf - Similar pages |
Energy Billing Fraud Charges vs Multiut owned by Nachshon Draiman
Multiut Admitted to holding money belonging to customers
In a Class Action proceeding initiated in November 2001 - The case after numerous delays by Multiut, is now proceeding.
Posted on September 9th, 2007:
IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS
COUNTY DEPARTMENT - CHANCERY DIVISION
FILED
JACK GORE on behalf of himself and all ) NOV 28, 2002
other persons or entitles similarly situated, |
•
vs. No. 01 CH 19688
DOROTHY 8ROWN CLERK OF CIRCUIT COURT
MULTIUT CORP, an Illinois corporation, } Judge Stephen A, Schiller
Defendant ) Courtroom 2402
RESPONSE TO §2-619.1 MOTION TO DISMISS J/
Plaintiff JACK GORE (“Gore”). by his attorneys LARRY D DRURY LTD., hereby responds to the Motion to Dismiss 2nd Amended Complaint, pursuant to 735 ILCS 5/2-615 and 619, brought as a combined 2-619.1 motion by defendant MULTIUT CORP. (“Multiut”).
Introduction
Multiut is trying to time-bar this case by transforming express a written agency-service contract drafted by Multiut into a contract for sale of goods, and by disputing Gore's allegations as to concealment and discovery of the wrong – but without submitting any Rule 191 affidavit or documentation. This is a class action arising out of a written contract drafted by Multiut, attached here and to the 2nd Amended Complaint as Exhibit A and B collectively referred to herein as the "contract" or "agreement “ unless otherwise indicated by context): (1)
(A) A service contract to act as Gore's "purchasing representatives" in obtaining natural gas from “off system" suppliers. This contract, entered into on or about December 1990, was titled “Agreement," Exh. A 1, 3-6, 10. And,
{B} A series of supplemental agency contracts to act as Gore’s agent, in so doing with respect to various Properties. These were entered into contemporaneously with the service contract and thereafter, and titled "Natural Gas Purchasing and Agency Agreement.” Exh.-B. (2)
(1) Similarly Multiut refers to them collectively as “the agreement” in its brief (Mem. p. 2, fn. 1). Although the documents are on separately filed pages, they are mutually inclusive and one could not be entered into without the other; e.g. the service contract refers to and incorporates the agency contracts, wherein Multiut refers to itself as Gore's 'exclusive natural gas purchasing agent'. See Exh. A, third introductory paragraph and 16-17; Exh. B 1,
(2) Exh. 8 one of the series, is dated 1998, Exh. C is Gore’s §2-806 affidavit as to the others. Gore has stated he does not have a copy of each, they are inaccessible to him i.e. no longer in his possession, whether missplaced or otherwise, and cannot be located or returned. 2nd Amd.. Compl. {4; Exh, C, in the 1st Amd. Complaint, Count 4 for breach of oral contract was voluntarily dismissed without prejudice after Gore's deposition of May 8,- 2002, when the service contract and the 1998 agency contract were produced by Multiut and adequately established, Exhs, A-B are the same Exhs. 1-2 attached to the Gore transcript, excerpts of which are attached herein as Exh. D, Similarly the missing agency agreements are likely in Multiut’s possession and will be produced in discovery.
The contract was drafted by Multiut, it unequivocally defines Multiut's role in the transactions, and shows that this case is not governed by the UCC. What is at issue here is not the "good" that Multiut obtained for Gore, but the service Multiut provided as his purchasing agent. Gore is suing upon the service and agency contract – not the natural gas - and has alleged that Multiut breached its duties in two respects;
{1} By falsely and intentionally charging and retaining for its own use funds that were to be applied to a City of Chicago 8% gross receipts tax (“Tax”), which it had promised would be placed in escrow and forwarded to the City. Between December 1990 and January 1995 (after the City of Chicago changed the Tax), Multiut collected approximately $14,000 from Gore and at least $1 million to $1.5 million from the Class, for this Tax that was not actually imposed upon Multiut. 2nd Amd. Compl. 7-9, '3! Multiut not only failed to inform Plaintiff and the Class that the money collected was not so applied or escrowed, but also failed to escrow, account for, and refund the funds with interest.
(2) By overcharging for the service of providing natural gas. Multiut was to charge for natural gas actually supplied to Gore and the Class on a set per therm cost basis, plus an amount equal to 1/2 of their respective per therm cost savings per month, instead, Multiut overcharged and billed Gore at least $100.000 and the class millions of dollars and refuses to provide an accounting and refund with interest. Id. 10-11.
Gore has further alleged that Multiut prevented him from discovering the wrongs by intentionally concealing them until at least December 2000, when he discovered the truth and could not reasonably have done so earlier. (Gore testified at his deposition on May 8, 2002 that he first discovered the discrepancies in his bills, the overcharges, the taxes, and failure to escrow the taxes, in December 2000. See Exh, D, pp. 25-28,) Thereafter he was unable to obtain any refund and based thereon, terminated Multiut’s services on or about June 2001, However, the wrongful acts are continuing to date, in that Multiut continues to 'refuse to provide an accounting and refund with interest to Gore and the Class, all to their detriment and damage. They seek imposition of constructive trust (id. 22), an accounting and damages in not less than the foregoing amounts plus interest (id, 9-13, 23).
Gore filed the original Class Action Complaint on Nov. 20, 2001, and in lieu of responding to a motion to dismiss, filed the 1st Amended Class Action Complaint Feb. 14, 2002, setting forth 4 counts for (1) breach of
3-: The City did not and will not collect the 8% Tax, presumably because of U.S. constitutional restrictions as to the interstate commerce clause and exceptions for interstate pipelines and out-of-state suppliers. As a result in 1994 the City changed the tax from an 8% gross receipts tax to a flat rate tax of 1.4 to 1.5 cents per therm. 2nd Amd. Comp. P 8. in Multiut’s response to First Request to Admit {attached hereto as Exh. F), it has admitted the following statements about this Tax; (8) that Multiut collected approximately $14,000 in Tax from Gore between 1991-1994; and (9) that Multiut spent its customers Tax payments on business expenses.. Yehuda Draiman testified to the same effect in his deposition 1-10-02 See transcript excerpts attached hereto as Exh. E, at pp, 36-37,40, 68, and Exh, 6 thereto.
Activity Date: 8/15/2007 Participant: GORE JACK
CASE SET ON STATUS CALL
Court Date: 8/29/2007
Court Time: 0930
Court Room: 2402
Judge: BRONSTEIN, PHILIP L.
RE: MULTIUT CORP. FORMER CUSTOMERS!
Multiut owner is Nachshon Draiman of Cook County, Illinois
PLEASE BE ADVISED THAT YOU ARE PROBABLY DUE A REFUND PLUS INTEREST FOR SALES TAX ON NATURAL GAS WHICH WAS COLLECTED FROM YOU AND WITHHELD BY MULTIUT CORP. TEL # 847-982-0030 at 7514 N. Skokie Bl. Skokie, Illinois.
MULTIUT IS HOLDING APPROXIMATELY OVER ONE MILLION DOLLARS THAT MAY BELONG TO CUSTOMERS.
MULTIUT HAS OVERBILLED CUSTOMERS ON SHARED SAVINGS FOR THE PAST 14 YEARS.
THERE IS CURRENTLY A CLASS ACTION SUIT AGAINST MULTIUT.
I STRONGLY SUGGEST THAT YOU HAVE ALL YOUR BILLS THAT WERE ISSUED BY MULTIUT CORP. AUDITED THOROUGHLY THERE MAY BE STORAGE CREDITS DUE YOU AND ERRORS IN BILLING WHICH CREDITS MAY BE DUE YOU.
Multiut has admitted in Court that they are holding the money.
Gore vs Multiut 01 CH 19688 Circuit Court of Cook County, Illinois
A concerned citizen
For honesty in billing
WHEREFORE, Dynegy requests entry of order granting judgment in. its favor and against Future Associates, voiding the fraudulent transfers and returning the money to Multiut to be used to satisfy the debt to Dynegy; and such other relief as this Court deems appropriate.
63. Dynegy repeats and reasserts the
allegations of paragraphs 1 through 58, inclusive, as paragraph 63.
64. Draiman accepted the Transfers without having provided adequate consideration or reasonably equivalent value for the Transfers.
WHEREFORE, Dynegy requests entry of order granting judgment in its favor and against Nachshon Draiman, voiding the fraudulent transfers and returning the money to Multiut to be used to satisfy the debt to Dynegy; and such other relief as this Court deems appropriate.
COUNT VII
(Breach of Fiduciary Duty)
65. Dynegy repeats and reasserts the allegations of paragraphs 1 through 58, inclusive, as paragraph 65.
-9-
66. When Multiut purchased natural gas from Dynegy in 2001 and 2002, Multiut was
*
insolvent.
67. Because Multiut was insolvent, Draiman, as a director and officer of Multiut, owed a fiduciary duty to Dynegy, as a creditor of Multiut.
68. Draiman breached his fiduciary duty to Dynegy by causing Multiut to take natural gas from Dynegy when Draiman knew that Multiut did not intend to and/or could not pay for it. Draiman also breached his fiduciary duties to Dynegy by making and/or authorizing the Transfers.
WHEREFORE, Dynegy requests entry of an order granting judgment in its favor and against Draiman, for $ 12,504,912.51, plus interest, through the date of judgment, in an amount in excess of $593,997.74, and for punitive damages and any further relief that this Court deems appropriate.
DYNEGY MARKETING and TRADE
By: One of its attorneys: Barry S. Hyman
INCREASING COST OF ENERGY and INFLATED FRAUDULENT BILLING 1
It is not enough that consumers are paying higher cost for energy – Gas, Electric, Tel., Etc.
Due to the market volatility and the increase demand for energy worldwide and the manipulation of market conditions by various corporation.
Deregulation, which was designed to save the consumer on the cost of energy. Many new companies have started selling gas and electric in the past 20 years, as a result of this deregulation. We now have numerous deregulated third party suppliers of Gas and Electric that are gouging the consumers – billing prices higher than the regulated utility companies, inflating the bill, billing for product never delivered, billing phantom tax on the product, reneging on fixed price contract – when market prices go beyond the fixed contract. In short any way they can cheat, deceive and defraud the consumer is fair game.
Among the companies that practice such tactics is MULTIUT CORP or Multiut LLC of Skokie, Illinois the owner of the company Nachshon Draiman is well connected, one of the previous owners of Multiut was a federal judge and therefore has gotten away with numerous over billing and deceptive practices, there are numerous lawsuits for fraud pending against Multiut Corp and its owner Nachshon Draiman among them a Class Action Suit and Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al 1:02-cv-07446 The Federal Court has imposed numerous contempt orders against Multiut and its owner and its owner Nachshon Draiman is involved in numerous other fraud in the Nursing Home business (defrauding the state Nursing License with false documents to obtain a Nursing Home License) and a hotel project where he committed a fraud of $45 million dollars and numerous other fraud and deception too numerous to mention. (Especially since Multiut and its owner Nachshon Draiman is represented by Jack Abramoff Law Firm – which has clout).
Energy Billing Fraud Charges vs Multiut owned by Nachshon Draiman!
Admitted to holding money belonging to customers
In a Class Action proceeding initiated in November 2001 - The case after numerous delays by Multiut, is now proceeding.
Another Company is Santana Energy out of Texas. Some utility companies were forced to refund the consumers hundreds of million of dollars due to manipulation of pricing and billing – many of those shenanigans stem from the Enron debacle some precede it and continue on to date.
Many of these suppliers of Gas and Electric who are promoting saving are actually charging higher prices than the local utility company which defeats the intent of deregulation – Multiut’s billing shows 20% to 30% higher cost and billing for gas that was never delivered. Not to mention Multiut’s billing for non existent City of Chicago Tax on Natural gas and inflated billing for lighting retrofit to various Nursing Homes which inflates the Medicaid billing to the government.
Corporate CEO and other higher ups in the corporate world have been convicted of fraud and sentenced/fined (WorldCom, Enron, Adelphia, Etc.). But it seems that some companies can continue to defraud the public without being hindered by the authorities.
Other frauds by Gas Electric suppliers are: Centerpoint Energy Inc.,
Pending lawsuits are: AG files fraud suit against Sempra affiliate alleging Enron-like games.
JD
This article is presented by Citizen for Honest and Fair Billing
PS
THREE FORMER NICOR ENERGY EXECUTIVES AND OUTSIDE
LAWYER INDICTED IN ALLEGED CORPORATE FRAUD SCHEME
CHICAGO -- Three former executives of Nicor Energy L.L.C. and an outside lawyer for the Lisle, Ill.-based company were indicted today for allegedly engaging in a corporate fraud scheme to obtain $400,000 in bonuses and other benefits for themselves by inflating revenues - at times by as much as $6 million - and understating expenses to make the company appear more profitable than it actually was in 2001. The defendants allegedly fraudulently deprived Nicor Energy - a retail energy marketing company established in 1997 as a 50/50 joint venture by Nicor Inc. and Dynegy Inc. - of their honest services and caused a loss to investors in publicly-traded Nicor, Inc. and Dynegy. On July 18, 2002, Nicor Inc. issued a press release announcing that its financial results for the second quarter and first half of 2002 were negatively affected by several factors, including irregularities in accounting at Nicor Energy, and the following day, the stock price of Nicor Inc. fell approximately 40 percent. Nicor Energy is currently in the process of final liquidation.
The five-count indictment returned by a federal grand jury charges Kevin Stoffer, formerly Nicor Energy's President and Chief Executive Officer; Andrew Johnson, former Director of Financial Services; John Fringer, former Vice President of Major Markets and Power Services; and outside counsel Michael Munson, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois
MADIGAN, DALEY ANNOUNCE $196 MILLION SETTLEMENT WITH PEOPLES ENERGY; CUSTOMERS OF PEOPLES GAS AND NORTH SHORE GAS TO RECEIVE $100 MILLION IN CREDITS
Chicago – Attorney General Lisa Madigan and Mayor Richard M. Daley today announced that Peoples Energy has agreed to more than $196 million in consumer credits and benefits as part of a settlement that will provide much-needed relief to current Peoples Gas and North Shore Gas customers, establish a more than $25 million program of conservation and weatherization assistance for low- and moderate-income households and reconnect customers who have been disconnected from their heating services due to an inability to pay the high gas prices.
MADIGAN, DALEY, CUB ANNOUNCE REFUND CREDITS TO APPEAR ON NEXT GAS BILL FOR CUSTOMERS OF PEOPLES GAS AND NORTH SHORE GAS
Chicago — Attorney General Lisa Madigan, City of Chicago Mayor Richard M. Daley and Citizens Utility Board (CUB) Executive Director David Kolata today announced that as a result of their settlement agreement with Peoples Energy more than one million current customers of Peoples Gas and North Shore Gas will see refund credits on their next gas bills.
To compensate for over billing consumers between 2000 and 2004, Peoples Energy has agreed to provide a refund credit to each of the 1,014,071 current customers of Peoples Gas and North Shore Gas. The credits – totaling $100 million – will be included on the first bill received by customers after April 24.
“These refund credits cannot change the conduct of Peoples Energy, but they will help consumers who suffered as a result,” Madigan said. “This is an appropriate response to Peoples' conduct.”
“We are pleased that consumers are finally receiving the refunds that they deserve,” said City of Chicago Corporation Counsel Mara Georges. “Consumers should not have to pay for bad planning and business decisions by Peoples Gas.”
Wednesday, June 13, 2007
Justice Department Investigating NY Energy Markets
New York's wholesale energy market is being investigated for possible antitrust violations, according to a recent news report. A Newsday story indicates that a subject of the investigation may be possible withholding of capacity from the market, to drive prices up. This revelation has raised further questions regarding the proposed merger of National Grid and Keyspan, which controls significant amounts of generation capacity in the New York City markets.
Reliance Energy fraud on consumers
REL power bills have shocked Mumbai citizens, who will now have to pay double the amount they had been paying. A citizen pins down — point-by-point — the discrepancies in this billing and warns of the "REL fraud" perpetrated on the consumer. Oilman on trial in New York was involved in Austin's 1970s energy crisis
Monday, September 10, 2007
Former president of Coastal States Gas charged with wire fraud and conspiracy
Lawyers for Austin and San Antonio also learned that Lo-Vaca was selling gas to utilities serving the Dallas-Fort Worth area at the same time it was curtailing in Austin and San Antonio. In 1974 and 1975, Austin and other customers sued Lo-Vaca for $1.6 billion in rate overcharges.
BP & Reliant - Guilty of Price Fixing
In yet another settlement over the California Energy Crisis, BP & Reliant admit guilt and settle with the State of California.
Source: TheTip, 2003-07-21
Candidate: Enron
Naturally, the settlement does nothing to compensate the hundreds of thousands of people whose jobs and lives were ruined by the FERC-Caused California Recession.
BP Energy agreed to contribute $3 million to fund low-income home energy assistance programs in California and Arizona to settle a case in which federal energy regulators said that they found apparent evidence of power price manipulation.
In March, staff members of the Federal Energy Regulatory Commission issued a report on the 2000-01 energy crisis in the West. It said it found evidence indicating Reliant Resources and BP Energy, both based in Houston, appeared to have engaged in coordinated efforts to manipulate power prices at a trading hub in Arizona.
Both companies were ordered to demonstrate why their authority to sell power on unregulated wholesale markets shouldn't be revoked.
BP Energy doesn't lose that ability under the settlement. But for six months, BP Energy's electricity sales in the West will be subject to review by the FERC with the possibility of refunds.
Mid America Energy Inc.,
The Securities and Exchange Commission said today that it had filed a civil complaint against Gary M. Milby and his company, Mid-America Energy Inc., asserting that they bilked several hundred investors of more than $19 million in what the commission described as "a fraudulent oil-and-gas investment scheme."
SEC charges four more former Nortel execs
Allegations the men manipulated reserves to change Nortel earnings
The Associated Press
Updated: 6:36 a.m. PT Sept 13, 2007
TORONTO - The U.S. Securities and Exchange Commission has charged four more former Nortel Networks Corp. executives with accounting fraud, alleging they manipulated reserves to change Nortel’s earnings statements on the orders of more senior officers of the Canadian networking equipment maker.
Response to Multiut - Nachshon Draiman rebuttle about his fraud
Response to Multiut - Nachshon Draiman rebuttal about his fraud – rev4.
Nachshon Draiman - Multiut Corp. Fraud
You will note that State and Federal Court records in Illinois and elsewhere are replete with lawsuits, judgments and wrongdoing by Nachshon Draiman and his companies. Causing the death of patients in the Nursing homes and a lawsuit by the State of Illinois with civil and criminal conviction People v. Gurell, Nachshon Draiman (1983), 98 Ill.2d 194, 207, 74 Ill.Dec. 516, 456 N.E.2d 18.). Abusing nursing home patients see State of Illinois records.
Multiut Corp and Nachshon Draiman dba Future Associate of Skokie, IL. Are withholding evidence of fraudulent activities in the Energy industry estimated $10 million and inflated Medicaid billing to the government for Nursing Home patients estimated $20 million. Also Bank fraud against their bank by presenting fraudulent and inflated receivable reports in order to get and keep a credit line, Nachshon Draiman was a large stock holder of the bank. Draiman Nachshon • SC 13G • Success Bancshares Inc • On 2/17/98
Filed On 2/17/98 • SEC File 5-53545 • Accession Number 950137-98-586
Just because he was able to cheat the system with political contributions and expired statute of limitations does not make him any less guilty. Everyone eventually pays for his wrongdoings; it is time for Nachshon Draiman and his entities to pay the piper.
Everything stated previously by me against Nachshon Draiman, Multiut, Future Associates and his Nursing Homes can be very easily verified.
State and Federal Court documents confirm the frauds and more.
Where there is smoke - there is fire.
Several courts and administrative bodies have found Nachshon Draiman culpable in providing fraudulent documents and the intentional abuse and negligence of Nursing Homes patients in Illinois – in every case Nachshon tried to blame others for his misdeeds. See People of the State of Illinois vs. Gurell, Nachshon Draiman et al – 456 N.E.2d 18 there has been numerous patient abuse and deaths due to that abuse. In 127 Ill.App.3d 1165, 483 N.E.2d 731, 91 Ill.Dec. 385 Sonnenberg v. Mill View Associates, Nachshon Draiman where millions of dollars had to be paid as damages for abuse and death of a patient, not to mention numerous patients who died falling down an elevator shaft.
Nachshon Draiman former partner from Lydia Healthcare (in Robbins, IL.)Arnold Simensen will testify that Nachshon has been breaking and entering and stealing his personal financial records which is recorded on video tape. Nachshon therefore lost his ownership interest in that home. Numerous Nursing Homes operated by Nachshon Draiman have been closed down by the State due to abuse and deaths of patients – Numerous judgments are entered against Nachshon Draiman’s entities for overcharges $10 million. Not to mention the over 20 litigations that are currently pending. (Such as Dynegy v Nachshon Draiman w 6 contempt of court orders $22 million – Multiut, Israel Discount Bank vs. Nachshon Draiman $45 million, State Financial Bank vs. Nachshon Draiman and others). Inflated gas bill to his own nursing home and his friends and associates in order to increase the expenses and bill Medicaid fraudulently.
Defrauded and took about $8 million dollars plus from his nursing home partners in Burnham Healthcare.
Not to mentioned that he is represented by a Law Firm with attorneys who pleaded guilty to criminal conduct with Jack Abramoff as one of the partners – to say the least and has numerous ethical and criminal transgressions (Greenberg Traurig).
PS – THE CONSTITUTION OF THE UNITED STATES
States: “All men are created equal” I state (except those with money, power and influence – who are more equal than others)
NEWSMEAT - NACHSHON DRAIMAN's federal campaign contribution search ...NACHSHON DRAIMAN » IL » 60077 ... Receive an alert every time new records are added to this search for NACHSHON DRAIMAN. Your Email ...
Political Campaign Contributors415777. Paulette Dragul ... Contribution Count/Amount - 1 / $2000 415778. Nachshon Draiman ... Contribution
Count/Amount - 2 / $2000 415779. ...
Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al 1:02-cv-07446.
Court: United States District Court Northern District of Illinois -
Case Title: Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al
Case Number: 1:02-cv-07446
Judge: Hon. John A. Nordberg
Filed On: 10/16/2002
128 01/10/2005 MINUTE ORDER of 1/10/05 by Honorable Michael T. Mason : As stated on the reverse of this order, plaintiff's motion to compel financial documents [124-1] and for sanctions is granted in part and denied in part. [124-2] Defendant's request for reconsideration is denied. (See reverse of minute order.) Notices mailed by judge's staff (hp) (Entered: 01/10/2005)
Multiut Nachshon Draiman lawsuits
2001-CH-19688
GORE JACK MULTIUT CORPORATION 11/20/2001
2002-CH-21586
KSJ CORPORATION TAM FITNESS TENNIS CLUB/ Nachshon Draiman 12/02/2002
2007-L-006471
MADDY MELISSA ADAIR THOMAS, Nachshon Draiman 06/22/2007
2006-L-005786
COWANS ISABELLE BURNHAM HEALTHCARE PROPER, Nachshon Draiman 06/02/2006
2004-L-013384
FEDDELER VIRGINIA PETERSON PARK HEALTH CARE, Nachshon Draiman 11/29/2004
2004-L-008129
STATE FINANCIAL BANK EMBASSY CARE ASSOCIATES, Nachshon Draiman 07/20/2004
2004-L-000663
ISRAEL DISCOUNT BANK LTD DRAIMAN NACHSHON Z 01/20/2004
2006-M1-129654
WEIS DUBROCK DOODY DRAIMAN NACHSHON 04/19/2006
1987-M1-168987
ILLINOIS PUBLIC AI DRAIMAN NACHSHON D 09/09/1987
Case Number Plaintiff Defendant Date Filed
2004-M2-001804
LUBIN ROBERT MULTIUT CORPORATIO 08/02/2004
2004-M1-134094
MCCLURE WILLIAM MULTIUT 06/02/2004
1999-M2-000227
RABIN SCOTT R MULTIUT CORP 01/28/1999
Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al 1:02-cv-07446.
Draiman and Multiut breached the Guaranty by failing to pay after demand, when due, the Unpaid Principal. Balance and the Interest.
WHEREFORE, Dynegy requests entry of a judgment in its favor and against Multiut, for $12,504,912.51, plus interest, through the date of judgement, in an amount in excess of $593,997.74, and such other relief as the Court deems appropriate.
-4-
COUNT III
(Fraudulent Transfer In Law- Multiut)
27. Dynegy repeats and reasserts the allegations of paragraphs 1 through 26, inclusive, as paragraph 27.
28. At all relevant times, Draiman has been a director, officer and/or control ling shareholder of Multiut.
29. At all relevant times, Draiman has been a general partner in Future Associates or otherwise had authority and/or control over the business affairs of Futures Associates or an entity that had authority over the business affairs of Futures Associates.
30. Since at least January 1999, Multiut failed to make timely payment, when due, for some or all of the natural gas delivered by Dynegy.
31. On March 7, 2001, Ginger Wright of Dynegy and Lenore Kamien of Multiut ' agreed that Multiut owed Dynegy approximately $11,000,000, excluding interest.
32. On September 5, 2001, Dynegy representatives Pete Pavluk and Mark Ludwig met with Multiut representatives Lenore Kamien and/or Nachshon Draiman at Multiut's offices to discuss the amount owed by Multiut.
33. At that meeting, Mr. Draiman said that Multiut did not have funds sufficient to pay the debt owed and that Multiut would propose a payment plan by September 17, 2001.
34. In a September 17, 2001 letter, Multiut proposed a payment plan by which it would make monthly payments, from October 2001 through March 2002, in order to pay down the amount owed to Dynegy. The proposed payments ranged from $600,000 in some months to $1,800,000 in other months. According to Mr. Draiman, Multiut was, 'insurefd] [sic] an additional annual profit of $2,000,000' and that, 'in the meantime, [Multiut] was working on bank financing as well as funds from private sources for capital infusion.'
-5-
35 . In an October 4, 2001 letter to Multiut, Dynegy responded to Multiut's September 17, 2001 proposal by asking for 'a detailed formal plan by no later than Wednesday, October 10, 2001 that outlines bringing your account balance current by no later that [sic]-January 15, 2002.'
36. In an October 12, 2001 letter, Multiut responded to Dynegy's October 4, 2001 letter by proposing 'weekly payments for October through January.' The weekly payments proposed by Multiut totaled $7,700,000.
37. Multiut did not make all the weekly payments described in its October 12, 2001
letter.
38. Multiut's check , dated August 23, 2001, made payable to Dynegy for $300,000, was returned for insufficient funds.
39. Multiut's check, dated October 26, 2001, made payable to Dynegy for $150,000, was returned for insufficient funds.
40. Multiut's check, dated November 9, 2001, made payable to Dynegy for $200,000, was returned for insufficient funds.
41. Multiut check no. 1946, made payable to Dynegy for $200,000 and deposited on December 7, 2001, was returned twice due to insufficient funds.
42. On January 8, 2002, Multiut claimed it could not pay the amounts owed to Dynegy because of slow payment by the government in connection with Mr. Draiman's nursing homes.
43. On January 31, 2002, Multiut told Dynegy that it would make a $200,000 payment while it worked to raise cash through a factoring company and while it attempted to arrange a line of credit with Bank Leumi.
-6-
54. Multiut did not receive reasonably equivalent value for the transfer described in paragraph 53.
55. In the years 1999 through 2003, Multiut transferred cash or other assets to Future Associates, Draiman and/or other entities, including Draiman's nursing home, hotel or other business interests when Multiut was indebted to Dynegy.
56. Multiut did not receive reasonably equivalent value for the transfers desciibed in paragraph 55.
57. When Multiut made the transfers described in paragraphs 53 and 55 (the 'Transfers'), Multiut was insolvent and/or became insolvent as a result of the Transfers.
58. The Transfers were fraudulent conveyances in violation of applicable laws.
WHEREFORE, Dynegy requests entry of an order granting judgment in its favor and against Multiut, for $12,504,912.51, plus interest, through the date of judgment, in an amount in excess of $593,997.74; voiding the fraudulent transfers and returning the Transfers to Multiut to be used to satisfy the debt to Dynegy; and such other relief as this Court deems appropriate.
COUNT IV (Fraudulent Transfer In Fact- Multiut)
59. Dynegy repeats and reasserts the allegations of paragraphs 1 through 58, inclusive, as paragraph 59.
60. The Transfers were made with actual intent to hinder, delay or defraud Dynegy, a creditor of Multiut and as-such constituted fraudulent conveyances in violation of applicable laws.
WHEREFORE, Dynegy requests entry of an order granting judgment in its favor and against Multiut, for $12,504,912.51, plus interest, through the date of judgment, in an amount in excess of $593,997.74; voiding the fraudulent transfers and returning the money to Multiut to be
-8-
used to satisfy the debt to Dynegy; punitive damages and such other relief as this Court deems appropriate.
Regarding Nachshon Draiman and Future Associates – Multiut Corp.
Ken Ditkowsky
wrote on May 16, 2007 9:52 AM:
' Read your story with interest. In my opinion we apparently have not learned from the Resko transactions. While Government cannot plan and execute a 'one car funeral' it should not delegate its responsibilites 'helter skelter.' The Illinois Court records are replete with information concerning the people involved in the transaction. '
Jerald Dims
wrote on May 16, 2007 8:52 AM:
' See Illinois Court documents federal and state regarding Nachshon Draiman, Future associates, Multiut corp. being involved in fraudulent actions and inflated billing, defrauding partners of $8 million dollars, fraudulent documents to the illinois department of Registration to obtain a Nursing Home License, defrauding the banks in Israel - currently pending a lawsuit and a criminal investigation 02c7446 '
This is just a small sample of the various actions and criminal and fraudulent acts by Nachshon Draiman and his alter ego companies.
Yehuda Draiman 8/31/2007
44. Multiut never raised cash through a factoring company or arranged a line of credit with Bank Leumi in 2002 or 2003.
45. In 2002 and 2003, Multiut did not have cash sufficient to pay the Invoices when due.
46. During 2000 and 2001, Multiut had creditors, in addition to Dynegy, to whom it did not make payments when due in the normal course of its business.
47. On June 19, 1998, Multiut entered into a Natural Gas Sales Agreement with WPS Energy Services, Inc. (“WPS”) for the purchase and sale of natural gas.
48. By June 2000, Multiut was indebted to WPS in the amount of $1,625,472 for natural gas delivered to Multiut prior to May 2000.
49. On September 27, 2000, Multiut gave WPS its promissory note in the amount of $1,570,337.87 (the “WPS” Promissory Note).
50. The WPS Promissory Note was a reaffirmation by Multiut of its debt to WPS incurred under the terms of the Natural Gas Sales Agreement between WPS and Multiut.
51. In the summer and fall of 2001, Multiut did not make payments, when due, in accordance with the WPS Promissory Note.
52. On September 27, 2001, WPS filed a lawsuit against Multiut alleging that Multiut defaulted on its obligation under the WPS Promissory Note by failing to make the required payments due on July 10, 2001, August 10, 2001 and September 10, 2001.
53. According to Multiut’s 2002 tax return, Multiut transferred approximately $2,000,000 (or more) to Future Associates, Draiman and/or other entities, including Draiman’s nursing home, hotel and/or other business ventures, at some time during 2001 when Multiut was indebted to Dynegy.
IDB vs. Nachshon Draiman - 2007 Israel Discount Bank Fraud Lawsuit – filed Jan. 2007 in Jerusalem, Israel. from Globes Financial, in Israel
The charges are that the developers of the hotel Nachshon and Elitzur Draiman committed illegal acts that brought the debt of the hotel to be about $45 million dollars, most of it to Israel Discount Bank (The hotel Jerusalem Pearl is located outside the Jaffa Gate - the old city of Jerusalem)
The court appointed trustees of the Jerusalem Pearl Hotel claim in the municipal court in Jerusalem, to charge the developers in damages of over $20 million dollars - according to the lawsuit filed by the court appointed trustees, the lawyers Yair Green, Yaron Feinshtein and Nitzan Shemueli, claim that the developers of the hotel, the brothers Nachshon Draiman and Elitzur Draiman, committed illegal acts that brought the debt of the hotel to over $45 million dollars, most of it to Israel Discount Bank.
The trustees claim that they are in the process of selling the property, at the asking price of $20 million dollars, and after the sale there will be a debt of about $25 million dollars.
The difference of about $25 million dollars they hold against the brothers Nachshon Draiman and Elitzur Draiman, they developed the hotel with a foreign company that is incorporated in Illinois. (Jerusalem Enterprises)
The Hotel which has 88 rooms and 22 suites, was operated by the Dan Hotels chain, and according to the trustees, the previous owners Nachshon Draiman and Elitzur Draiman owe the Dan Hotel Chain about $250,000.
According to them Nachshon Draiman and Elitzur Draiman committed transfers of funds between various accounts, gave various guarantees in a form of checks that one of the accounts the check was drawn on was closed, presented exhibits and fictitious and false documents as to substantiate their investment in the hotel - which is false and fraud, transferred funds overseas from the funds belonging to the hotel project without explanation or reasoning and inflated the amount of cost of construction (about $2,500 per square meter) amounts that are way greater than any reasonable estimates that would cost to build the hotel.
Additional claim is that Nachshon Draiman and Elitzur Draiman presented false and deceptive documentation to the Israeli government division of development and investment, in order to obtain loans with government guarantees and government grants. (January 15, 2007)
Possible criminal charges may be initiated.
פרקי מלון פנינת דן בירושלים: לחייב את היזמים ב-20 מיליון שקל
טוענים כי יזמי הקמת המלון, נחשון ואליצור דריימן, ביצעו פעולות לא חוקיות שהביאו את המלון לחוב של כ-45 מיליון דולר, רובו לדיסקונט
שמואל דקלו
16:18 15/1/07
המפרקים של מלון פנינת דן שבירושלים דורשים בבית המשפט המחוזי בירושלים לחייב את יזמי הקמת המלון בפיצוי של למעלה מ-20 מיליון שקלים. בתביעה שהגישו המפרקים, עוה"ד יאיר גרין ירון פיינשטיין וניצן שמואלי, הם טוענים כי יזמי הקמת המלון, האחים נחשון ואליצור דריימן, ביצעו פעולות לא חוקיות שהביאו את המלון לחוב של כ-45 מיליון דולר, רובו לבנק דיסקונט
( 904 -0.66% )
.
המפרקים טוענים כי הם מצויים בהליכי מכירת הנכס, כאשר התשלום המבוקש הוא כ-20 מיליון דולר, ולאחר המכירה יגיע סכום החובות לכ-25 מיליון דולר.
את
מודעה
ההפרש הם מבקשים מהאחים דריימן, שהקימו את המלון באמצעות חברת חוץ שהתאגדה באלינוי.
המלון, שבו 88 חדרים ו-22 סוויטות, הופעל על ידי רשת מלונות דן, ולטענת המפרקים בעלי המלון לשעבר חייבים לרשת כ-900 אלף שקל.
לדבריהם, האחים דריימן ביצעו העברות פיקטיביות בין חשבונות; נתנו בטוחות באמצעות צ'קים שאת החשבון ממנו נמשך אחד הצ'קים סגרו; הציגו מצגי שווא בדבר סכום ההשקעה במלון; העבירו כספים לחו"ל מכספי החברה ללא הסבר וניפחו את סכום בניית המלון (כ-2,500 דולר למטר) בסכומים העולים פי כמה על הערכות הסבירות של בניית המלון.
עוד נטען, כי הם הציגו מצג מטעה כלפי מרכז ההשקעות על מנת להשיג הלוואות בערבות מדינה ומענקי
|
Case Information Summary for Case Number
2001-CH-19688
Case Type: CLASS ACTION |
|
|
Division: Chancery Division |
|
|
|
|
District: First Municipal |
|
|
Ad Damnum: $0.00 |
|
|
|
|
Calendar: 09 |
|
|
|
|
|
|
|
|
|
Party Information
|
|
|
|
|
Plaintiff(s) |
|
|
|
|
|
|
Attorney(s) |
|
|
|
|
|
GORE JACK |
|
|
|
|
|
|
DRURY LARRY D |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
205 W RANDOLPH#1430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHICAGO IL, 60606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(312) 346-7950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Service |
|
|
|
Defendant(s) |
|
|
|
|
|
|
Attorney(s) |
|
|
|
|
|
|
MULTIUT CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Case Activity
|
Activity Date: 11/20/2001 |
Participant: GORE JACK |
|
CLASS ACTION COMPLAINT FILED |
It is not enough that consumers are paying higher cost for energy – Gas, Electric, Tel., Etc.
Due to the market volatility and the increase demand for energy worldwide and the manipulation of market conditions by various corporation.
Deregulation, which was designed to save the consumer on the cost of energy. Many new companies have started selling gas and electric in the past 20 years, as a result of this deregulation. We now have numerous deregulated third party suppliers of Gas and Electric that are gouging the consumers – billing prices higher than the regulated utility companies, inflating the bill, billing for product never delivered, billing phantom tax on the product, reneging on fixed price contract – when market prices go beyond the fixed contract. In short any way they can cheat, deceive and defraud the consumer is fair game.
Among the companies that practice such tactics is MULTIUT CORP or Multiut LLC of Skokie, Illinois the owner of the company Nachshon Draiman is well connected, one of the previous owners of Multiut was a federal judge and therefore has gotten away with numerous over billing and deceptive practices, there are numerous lawsuits for fraud pending against Multiut Corp and its owner Nachshon Draiman among them a Class Action Suit and Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al 1:02-cv-07446 The Federal Court has imposed numerous contempt orders against Multiut and its owner and its owner Nachshon Draiman is involved in numerous other fraud in the Nursing Home business (defrauding the state Nursing License with false documents to obtain a Nursing Home License) and a hotel project where he committed a fraud of $45 million dollars and numerous other fraud and deception too numerous to mention. (Especially since Multiut and its owner Nachshon Draiman is represented by Jack Abramoff Law Firm – which has clout).
Another Company is Santana Energy out of Texas. Some utility companies were forced to refund the consumers hundreds of million of dollars due to manipulation of pricing and billing – many of those shenanigans stem from the Enron debacle some precede it and continue on to date.
Many of these suppliers of Gas and Electric who are promoting saving are actually charging higher prices than the local utility company which defeats the intent of deregulation – Multiut’s billing shows 20% to 30% higher cost and billing for gas that was never delivered. Not to mention Multiut’s inflated billing for lighting retrofit to various Nursing Homes which inflates the Medicaid billing to the government.
Corporate CEO and other higher ups in the corporate world have been convicted of fraud and sentenced/fined (WorldCom, Enron, Adelphia, Etc.). But it seems that some companies can continue to defraud the public without being hindered by the authorities.
Other frauds by Gas Electric suppliers are: Centerpoint Energy Inc.,
Pending lawsuits are: AG files fraud suit against Sempra affiliate alleging Enron-like games,
This article is presented by Citizen for Honest and Fair Billing
PS
THREE FORMER NICOR ENERGY EXECUTIVES AND OUTSIDE
LAWYER INDICTED IN ALLEGED CORPORATE FRAUD SCHEME
CHICAGO -- Three former executives of Nicor Energy L.L.C. and an outside lawyer for the Lisle, Ill.-based company were indicted today for allegedly engaging in a corporate fraud scheme to obtain $400,000 in bonuses and other benefits for themselves by inflating revenues - at times by as much as $6 million - and understating expenses to make the company appear more profitable than it actually was in 2001. The defendants allegedly fraudulently deprived Nicor Energy - a retail energy marketing company established in 1997 as a 50/50 joint venture by Nicor Inc. and Dynegy Inc. - of their honest services and caused a loss to investors in publicly-traded Nicor, Inc. and Dynegy. On July 18, 2002, Nicor Inc. issued a press release announcing that its financial results for the second quarter and first half of 2002 were negatively affected by several factors, including irregularities in accounting at Nicor Energy, and the following day, the stock price of Nicor Inc. fell approximately 40 percent. Nicor Energy is currently in the process of final liquidation.
The five-count indictment returned by a federal grand jury charges Kevin Stoffer, formerly Nicor Energy's President and Chief Executive Officer; Andrew Johnson, former Director of Financial Services; John Fringer, former Vice President of Major Markets and Power Services; and outside counsel Michael Munson, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois
MADIGAN, DALEY ANNOUNCE $196 MILLION SETTLEMENT WITH PEOPLES ENERGY; CUSTOMERS OF PEOPLES GAS AND NORTH SHORE GAS TO RECEIVE $100 MILLION IN CREDITS
Chicago – Attorney General Lisa Madigan and Mayor Richard M. Daley today announced that Peoples Energy has agreed to more than $196 million in consumer credits and benefits as part of a settlement that will provide much-needed relief to current Peoples Gas and North Shore Gas customers, establish a more than $25 million program of conservation and weatherization assistance for low- and moderate-income households and reconnect customers who have been disconnected from their heating services due to an inability to pay the high gas prices.
MADIGAN, DALEY, CUB ANNOUNCE REFUND CREDITS TO APPEAR ON NEXT GAS BILL FOR CUSTOMERS OF PEOPLES GAS AND NORTH SHORE GAS
Chicago — Attorney General Lisa Madigan, City of Chicago Mayor Richard M. Daley and Citizens Utility Board (CUB) Executive Director David Kolata today announced that as a result of their settlement agreement with Peoples Energy more than one million current customers of Peoples Gas and North Shore Gas will see refund credits on their next gas bills.
To compensate for over billing consumers between 2000 and 2004, Peoples Energy has agreed to provide a refund credit to each of the 1,014,071 current customers of Peoples Gas and North Shore Gas. The credits – totaling $100 million – will be included on the first bill received by customers after April 24.
“These refund credits cannot change the conduct of Peoples Energy, but they will help consumers who suffered as a result,” Madigan said. “This is an appropriate response to Peoples' conduct.”
“We are pleased that consumers are finally receiving the refunds that they deserve,” said City of Chicago Corporation Counsel Mara Georges. “Consumers should not have to pay for bad planning and business decisions by Peoples Gas.”
Response to Multiut - Nachshon Draiman rebuttal about his fraud – rev4.
Nachshon Draiman - Multiut Corp. Fraud
You will note that State and Federal Court records in Illinois and elsewhere are replete with lawsuits, judgments and wrongdoing by Nachshon Draiman and his companies. Causing the death of patients in the Nursing homes and a lawsuit by the State of Illinois with civil and criminal conviction People v. Gurell, Nachshon Draiman (1983), 98 Ill.2d 194, 207, 74 Ill.Dec. 516, 456 N.E.2d 18.). Abusing nursing home patients see State of Illinois records.
Multiut Corp and Nachshon Draiman dba Future Associate of Skokie, IL. Are withholding evidence of fraudulent activities in the Energy industry estimated $10 million and inflated Medicaid billing to the government for Nursing Home patients estimated $20 million. Also Bank fraud against their bank by presenting fraudulent and inflated receivable reports in order to get and keep a credit line, Nachshon Draiman was a large stock holder of the bank. Draiman Nachshon • SC 13G • Success Bancshares Inc • On 2/17/98
Filed On 2/17/98 • SEC File 5-53545 • Accession Number 950137-98-586
Just because he was able to cheat the system with political contributions and expired statute of limitations does not make him any less guilty. Everyone eventually pays for his wrongdoings; it is time for Nachshon Draiman and his entities to pay the piper.
Everything stated previously by me against Nachshon Draiman, Multiut, Future Associates and his Nursing Homes can be very easily verified.
State and Federal Court documents confirm the frauds and more.
Where there is smoke - there is fire.
Several courts and administrative bodies have found Nachshon Draiman culpable in providing fraudulent documents and the intentional abuse and negligence of Nursing Homes patients in Illinois – in every case Nachshon tried to blame others for his misdeeds. See People of the State of Illinois vs. Gurell, Nachshon Draiman et al – 456 N.E.2d 18 there has been numerous patient abuse and deaths due to that abuse. In 127 Ill.App.3d 1165, 483 N.E.2d 731, 91 Ill.Dec. 385 Sonnenberg v. Mill View Associates, Nachshon Draiman where millions of dollars had to be paid as damages for abuse and death of a patient, not to mention numerous patients who died falling down an elevator shaft.
Nachshon Draiman former partner from Lydia Healthcare (in Robbins, IL.)Arnold Simensen will testify that Nachshon has been breaking and entering and stealing his personal financial records which is recorded on video tape. Nachshon therefore lost his ownership interest in that home. Numerous Nursing Homes operated by Nachshon Draiman have been closed down by the State due to abuse and deaths of patients – Numerous judgments are entered against Nachshon Draiman’s entities for overcharges $10 million. Not to mention the over 20 litigations that are currently pending. (Such as Dynegy v Nachshon Draiman w 6 contempt of court orders $22 million – Multiut, Israel Discount Bank vs. Nachshon Draiman $45 million, State Financial Bank vs. Nachshon Draiman and others). Inflated gas bill to his own nursing home and his friends and associates in order to increase the expenses and bill Medicaid fraudulently.
Defrauded and took about $8 million dollars plus from his nursing home partners in Burnham Healthcare.
Not to mentioned that he is represented by a Law Firm with attorneys who pleaded guilty to criminal conduct with Jack Abramoff as one of the partners – to say the least and has numerous ethical and criminal transgressions (Greenberg Traurig).
PS – THE CONSTITUTION OF THE UNITED STATES
States: “All men are created equal” I state (except those with money, power and influence – who are more equal than others)
NEWSMEAT - NACHSHON DRAIMAN's federal campaign contribution search ...NACHSHON DRAIMAN » IL » 60077 ... Receive an alert every time new records are added to this search for NACHSHON DRAIMAN. Your Email ...
Political Campaign Contributors415777. Paulette Dragul ... Contribution Count/Amount - 1 / $2000 415778. Nachshon Draiman ... Contribution
Count/Amount - 2 / $2000 415779. ...
Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al 1:02-cv-07446.
Court: United States District Court Northern District of Illinois -
Case Title: Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al
Case Number: 1:02-cv-07446
Judge: Hon. John A. Nordberg
Filed On: 10/16/2002
128 01/10/2005 MINUTE ORDER of 1/10/05 by Honorable Michael T. Mason : As stated on the reverse of this order, plaintiff's motion to compel financial documents [124-1] and for sanctions is granted in part and denied in part. [124-2] Defendant's request for reconsideration is denied. (See reverse of minute order.) Notices mailed by judge's staff (hp) (Entered: 01/10/2005)
Multiut Nachshon Draiman lawsuits
2001-CH-19688
GORE JACK MULTIUT CORPORATION 11/20/2001
2002-CH-21586
KSJ CORPORATION TAM FITNESS TENNIS CLUB/ Nachshon Draiman 12/02/2002
2007-L-006471
MADDY MELISSA ADAIR THOMAS, Nachshon Draiman 06/22/2007
2006-L-005786
COWANS ISABELLE BURNHAM HEALTHCARE PROPER, Nachshon Draiman 06/02/2006
2004-L-013384
FEDDELER VIRGINIA PETERSON PARK HEALTH CARE, Nachshon Draiman 11/29/2004
2004-L-008129
STATE FINANCIAL BANK EMBASSY CARE ASSOCIATES, Nachshon Draiman 07/20/2004
2004-L-000663
ISRAEL DISCOUNT BANK LTD DRAIMAN NACHSHON Z 01/20/2004
2006-M1-129654
WEIS DUBROCK DOODY DRAIMAN NACHSHON 04/19/2006
1987-M1-168987
ILLINOIS PUBLIC AI DRAIMAN NACHSHON D 09/09/1987
Case Number Plaintiff Defendant Date Filed
2004-M2-001804
LUBIN ROBERT MULTIUT CORPORATIO 08/02/2004
2004-M1-134094
MCCLURE WILLIAM MULTIUT 06/02/2004
1999-M2-000227
RABIN SCOTT R MULTIUT CORP 01/28/1999
Dynegy Mkg & Trade v. Multiut Corp, Nachshon Draiman et al 1:02-cv-07446.
Draiman and Multiut breached the Guaranty by failing to pay after demand, when due, the Unpaid Principal. Balance and the Interest.
WHEREFORE, Dynegy requests entry of a judgment in its favor and against Multiut, for $12,504,912.51, plus interest, through the date of judgement, in an amount in excess of $593,997.74, and such other relief as the Court deems appropriate.
-4-
COUNT III
(Fraudulent Transfer In Law- Multiut)
27. Dynegy repeats and reasserts the allegations of paragraphs 1 through 26, inclusive, as paragraph 27.
28. At all relevant times, Draiman has been a director, officer and/or control ling shareholder of Multiut.
29. At all relevant times, Draiman has been a general partner in Future Associates or otherwise had authority and/or control over the business affairs of Futures Associates or an entity that had authority over the business affairs of Futures Associates.
30. Since at least January 1999, Multiut failed to make timely payment, when due, for some or all of the natural gas delivered by Dynegy.
31. On March 7, 2001, Ginger Wright of Dynegy and Lenore Kamien of Multiut ' agreed that Multiut owed Dynegy approximately $11,000,000, excluding interest.
32. On September 5, 2001, Dynegy representatives Pete Pavluk and Mark Ludwig met with Multiut representatives Lenore Kamien and/or Nachshon Draiman at Multiut's offices to discuss the amount owed by Multiut.
33. At that meeting, Mr. Draiman said that Multiut did not have funds sufficient to pay the debt owed and that Multiut would propose a payment plan by September 17, 2001.
34. In a September 17, 2001 letter, Multiut proposed a payment plan by which it would make monthly payments, from October 2001 through March 2002, in order to pay down the amount owed to Dynegy. The proposed payments ranged from $600,000 in some months to $1,800,000 in other months. According to Mr. Draiman, Multiut was, 'insurefd] [sic] an additional annual profit of $2,000,000' and that, 'in the meantime, [Multiut] was working on bank financing as well as funds from private sources for capital infusion.'
-5-
35 . In an October 4, 2001 letter to Multiut, Dynegy responded to Multiut's September 17, 2001 proposal by asking for 'a detailed formal plan by no later than Wednesday, October 10, 2001 that outlines bringing your account balance current by no later that [sic]-January 15, 2002.'
36. In an October 12, 2001 letter, Multiut responded to Dynegy's October 4, 2001 letter by proposing 'weekly payments for October through January.' The weekly payments proposed by Multiut totaled $7,700,000.
37. Multiut did not make all the weekly payments described in its October 12, 2001
letter.
38. Multiut's check , dated August 23, 2001, made payable to Dynegy for $300,000, was returned for insufficient funds.
39. Multiut's check, dated October 26, 2001, made payable to Dynegy for $150,000, was returned for insufficient funds.
40. Multiut's check, dated November 9, 2001, made payable to Dynegy for $200,000, was returned for insufficient funds.
41. Multiut check no. 1946, made payable to Dynegy for $200,000 and deposited on December 7, 2001, was returned twice due to insufficient funds.
42. On January 8, 2002, Multiut claimed it could not pay the amounts owed to Dynegy because of slow payment by the government in connection with Mr. Draiman's nursing homes.
43. On January 31, 2002, Multiut told Dynegy that it would make a $200,000 payment while it worked to raise cash through a factoring company and while it attempted to arrange a line of credit with Bank Leumi.
-6-
54. Multiut did not receive reasonably equivalent value for the transfer described in paragraph 53.
55. In the years 1999 through 2003, Multiut transferred cash or other assets to Future Associates, Draiman and/or other entities, including Draiman's nursing home, hotel or other business interests when Multiut was indebted to Dynegy.
56. Multiut did not receive reasonably equivalent value for the transfers desciibed in paragraph 55.
57. When Multiut made the transfers described in paragraphs 53 and 55 (the 'Transfers'), Multiut was insolvent and/or became insolvent as a result of the Transfers.
58. The Transfers were fraudulent conveyances in violation of applicable laws.
WHEREFORE, Dynegy requests entry of an order granting judgment in its favor and against Multiut, for $12,504,912.51, plus interest, through the date of judgment, in an amount in excess of $593,997.74; voiding the fraudulent transfers and returning the Transfers to Multiut to be used to satisfy the debt to Dynegy; and such other relief as this Court deems appropriate.
COUNT IV (Fraudulent Transfer In Fact- Multiut)
59. Dynegy repeats and reasserts the allegations of paragraphs 1 through 58, inclusive, as paragraph 59.
60. The Transfers were made with actual intent to hinder, delay or defraud Dynegy, a creditor of Multiut and as-such constituted fraudulent conveyances in violation of applicable laws.
WHEREFORE, Dynegy requests entry of an order granting judgment in its favor and against Multiut, for $12,504,912.51, plus interest, through the date of judgment, in an amount in excess of $593,997.74; voiding the fraudulent transfers and returning the money to Multiut to be
-8-
used to satisfy the debt to Dynegy; punitive damages and such other relief as this Court deems appropriate.
Regarding Nachshon Draiman and Future Associates – Multiut Corp.
Ken Ditkowsky
wrote on May 16, 2007 9:52 AM:
' Read your story with interest. In my opinion we apparently have not learned from the Resko transactions. While Government cannot plan and execute a 'one car funeral' it should not delegate its responsibilites 'helter skelter.' The Illinois Court records are replete with information concerning the people involved in the transaction. '
Jerald Dims
wrote on May 16, 2007 8:52 AM:
' See Illinois Court documents federal and state regarding Nachshon Draiman, Future associates, Multiut corp. being involved in fraudulent actions and inflated billing, defrauding partners of $8 million dollars, fraudulent documents to the illinois department of Registration to obtain a Nursing Home License, defrauding the banks in Israel - currently pending a lawsuit and a criminal investigation 02c7446 '
This is just a small sample of the various actions and criminal and fraudulent acts by Nachshon Draiman and his alter ego companies.
Yehuda Draiman 8/31/2007
44. Multiut never raised cash through a factoring company or arranged a line of credit with Bank Leumi in 2002 or 2003.
45. In 2002 and 2003, Multiut did not have cash sufficient to pay the Invoices when due.
46. During 2000 and 2001, Multiut had creditors, in addition to Dynegy, to whom it did not make payments when due in the normal course of its business.
47. On June 19, 1998, Multiut entered into a Natural Gas Sales Agreement with WPS Energy Services, Inc. (“WPS”) for the purchase and sale of natural gas.
48. By June 2000, Multiut was indebted to WPS in the amount of $1,625,472 for natural gas delivered to Multiut prior to May 2000.
49. On September 27, 2000, Multiut gave WPS its promissory note in the amount of $1,570,337.87 (the “WPS” Promissory Note).
50. The WPS Promissory Note was a reaffirmation by Multiut of its debt to WPS incurred under the terms of the Natural Gas Sales Agreement between WPS and Multiut.
51. In the summer and fall of 2001, Multiut did not make payments, when due, in accordance with the WPS Promissory Note.
52. On September 27, 2001, WPS filed a lawsuit against Multiut alleging that Multiut defaulted on its obligation under the WPS Promissory Note by failing to make the required payments due on July 10, 2001, August 10, 2001 and September 10, 2001.
53. According to Multiut’s 2002 tax return, Multiut transferred approximately $2,000,000 (or more) to Future Associates, Draiman and/or other entities, including Draiman’s nursing home, hotel and/or other business ventures, at some time during 2001 when Multiut was indebted to Dynegy.
IDB vs. Nachshon Draiman - 2007 Israel Discount Bank Fraud Lawsuit – filed Jan. 2007 in Jerusalem, Israel. from Globes Financial, in Israel
The charges are that the developers of the hotel Nachshon and Elitzur Draiman committed illegal acts that brought the debt of the hotel to be about $45 million dollars, most of it to Israel Discount Bank (The hotel Jerusalem Pearl is located outside the Jaffa Gate - the old city of Jerusalem)
The court appointed trustees of the Jerusalem Pearl Hotel claim in the municipal court in Jerusalem, to charge the developers in damages of over $20 million dollars - according to the lawsuit filed by the court appointed trustees, the lawyers Yair Green, Yaron Feinshtein and Nitzan Shemueli, claim that the developers of the hotel, the brothers Nachshon Draiman and Elitzur Draiman, committed illegal acts that brought the debt of the hotel to over $45 million dollars, most of it to Israel Discount Bank.
The trustees claim that they are in the process of selling the property, at the asking price of $20 million dollars, and after the sale there will be a debt of about $25 million dollars.
The difference of about $25 million dollars they hold against the brothers Nachshon Draiman and Elitzur Draiman, they developed the hotel with a foreign company that is incorporated in Illinois. (Jerusalem Enterprises)
The Hotel which has 88 rooms and 22 suites, was operated by the Dan Hotels chain, and according to the trustees, the previous owners Nachshon Draiman and Elitzur Draiman owe the Dan Hotel Chain about $250,000.
According to them Nachshon Draiman and Elitzur Draiman committed transfers of funds between various accounts, gave various guarantees in a form of checks that one of the accounts the check was drawn on was closed, presented exhibits and fictitious and false documents as to substantiate their investment in the hotel - which is false and fraud, transferred funds overseas from the funds belonging to the hotel project without explanation or reasoning and inflated the amount of cost of construction (about $2,500 per square meter) amounts that are way greater than any reasonable estimates that would cost to build the hotel.
Additional claim is that Nachshon Draiman and Elitzur Draiman presented false and deceptive documentation to the Israeli government division of development and investment, in order to obtain loans with government guarantees and government grants. (January 15, 2007)
Possible criminal charges may be initiated.
פרקי מלון פנינת דן בירושלים: לחייב את היזמים ב-20 מיליון שקל
טוענים כי יזמי הקמת המלון, נחשון ואליצור דריימן, ביצעו פעולות לא חוקיות שהביאו את המלון לחוב של כ-45 מיליון דולר, רובו לדיסקונט
שמואל דקלו
16:18 15/1/07
המפרקים של מלון פנינת דן שבירושלים דורשים בבית המשפט המחוזי בירושלים לחייב את יזמי הקמת המלון בפיצוי של למעלה מ-20 מיליון שקלים. בתביעה שהגישו המפרקים, עוה"ד יאיר גרין ירון פיינשטיין וניצן שמואלי, הם טוענים כי יזמי הקמת המלון, האחים נחשון ואליצור דריימן, ביצעו פעולות לא חוקיות שהביאו את המלון לחוב של כ-45 מיליון דולר, רובו לבנק דיסקונט
( 904 -0.66% )
.
המפרקים טוענים כי הם מצויים בהליכי מכירת הנכס, כאשר התשלום המבוקש הוא כ-20 מיליון דולר, ולאחר המכירה יגיע סכום החובות לכ-25 מיליון דולר.
את
מודעה
ההפרש הם מבקשים מהאחים דריימן, שהקימו את המלון באמצעות חברת חוץ שהתאגדה באלינוי.
המלון, שבו 88 חדרים ו-22 סוויטות, הופעל על ידי רשת מלונות דן, ולטענת המפרקים בעלי המלון לשעבר חייבים לרשת כ-900 אלף שקל.
לדבריהם, האחים דריימן ביצעו העברות פיקטיביות בין חשבונות; נתנו בטוחות באמצעות צ'קים שאת החשבון ממנו נמשך אחד הצ'קים סגרו; הציגו מצגי שווא בדבר סכום ההשקעה במלון; העבירו כספים לחו"ל מכספי החברה ללא הסבר וניפחו את סכום בניית המלון (כ-2,500 דולר למטר) בסכומים העולים פי כמה על הערכות הסבירות של בניית המלון.
עוד נטען, כי הם הציגו מצג מטעה כלפי מרכז ההשקעות על מנת להשיג הלוואות בערבות מדינה ומענקי
|
Case Information Summary for Case Number
2001-CH-19688
Case Type: CLASS ACTION |
|
|
Division: Chancery Division |
|
|
|
|
District: First Municipal |
|
|
Ad Damnum: $0.00 |
|
|
|
|
Calendar: 09 |
|
|
|
|
|
|
|
|
|
Party Information
|
|
|
|
|
Plaintiff(s) |
|
|
|
|
|
|
Attorney(s) |
|
|
|
|
|
GORE JACK |
|
|
|
|
|
|
DRURY LARRY D |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
205 W RANDOLPH#1430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHICAGO IL, 60606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(312) 346-7950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of Service |
|
|
|
Defendant(s) |
|
|
|
|
|
|
Attorney(s) |
|
|
|
|
|
|
MULTIUT CORPORATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Case Activity
|
Activity Date: 11/20/2001 |
Participant: GORE JACK |
|
CLASS ACTION COMPLAINT FILED |
|