waheed waleed hamed docket entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed...

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IN THE SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX MOHAMMAD HAMED, by his authorized agent WALEED HAMED, P I ai ntiff/Co u nte rcl ai m Defe nd a nt, VS FATHI YUSUF and UNITED CORPORATION, Defe nda nts a nd Cou ntercl ai m a nts. VS. WALEED HAMED, WAHEED HAMED, MUFEED HAMED, HISHAM HAMED, and PLESSEN ENTERPR¡SES, INC., Cou nterclaim Defendants, MOHAMMAD HAMED, Plaintiff, VS. FATHI YUSUF, Defendant Gase No. : SX-2O12-CV -37O ACT¡ON FOR DAMAGES, INJUNCTIVE RELIEF AND DECLARATORY RELIEF JURY TRIAL DEMANDED Case No. : SX-201 4-CV -27 8 ACTION FOR DEBT AND CONVERSION JURY TRIAL DEMANDED MOHAMMAD HAMED, Plaintiff, Case No. : SX-201 4-CV -287 ACTION FOR DEBT AND CONVERSION VS UNITED CORPORATION, JURY TRIAL DEMANDED Defendant REPLY TO YUSUF'S OPPOSITION TO MOTION TO STRIKE THE ,, REVISED BDO REPORT''

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Page 1: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

IN THE SUPERIOR COURT OF THE VIRGIN ISLANDSDIVISION OF ST. CROIX

MOHAMMAD HAMED, by hisauthorized agent WALEED HAMED,

P I ai ntiff/Co u nte rcl ai m Defe nd a nt,

VS

FATHI YUSUF and UNITED CORPORATION,

Defe nda nts a nd Cou ntercl ai m a nts.

VS.

WALEED HAMED, WAHEED HAMED,MUFEED HAMED, HISHAM HAMED, andPLESSEN ENTERPR¡SES, INC.,

Cou nterclaim Defendants,

MOHAMMAD HAMED,

Plaintiff,

VS.

FATHI YUSUF,

Defendant

Gase No. : SX-2O12-CV -37O

ACT¡ON FOR DAMAGES,INJUNCTIVE RELIEF ANDDECLARATORY RELIEF

JURY TRIAL DEMANDED

Case No. : SX-201 4-CV -27 8

ACTION FOR DEBT ANDCONVERSION

JURY TRIAL DEMANDED

MOHAMMAD HAMED,

Plaintiff,

Case No. : SX-201 4-CV -287

ACTION FOR DEBT ANDCONVERSION

VS

UNITED CORPORATION, JURY TRIAL DEMANDED

Defendant

REPLY TO YUSUF'S OPPOSITION TO MOTION TO STRIKE THE,, REVISED BDO REPORT''

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Page 2 - Hamed's Reply to Yusuf's Opposition to Motion to Strike BDO Report

Despite Yusuf's efforts to put a positive spin on it, Judge Brady's scathing

criticism of the BOO report gutted it. Undaunted, Yusuf now submits a "revised" BOO

report, reduced from 62 pages to a 1 page accounting spreadsheet. Yusuf touts this

declaration as a "compilation" of offsetting claims. The revised spreadsheet is still

defective, as it is nothing more than a simple invasion into the tasks assigned to the

Special Master. Moreover, additional 'discovery' will not correct this obvious flaw.

I. The revised BDO report improperly attempts to usurp the Master's role

The revised BOO report tries to "package' an "expert opinion" about multiple,

individual claims into one "super claim", seeking $4.5 million from Hamed, as a "stand­

alone" single claim. It is not. Instead, BDO's revised report is an attempt to decide

multiple claims that the Master needs to resolve -- without any evidentiary or

testimonial support -- and then group them into one "claim." However, the task of

verifying or rejecting each of these claims (and any offsets) one at a time, is for

the Special Master to decide based on actual evidence, not BOO's say so.

A review of this revised report confirms that each entry is a separate claim that

cannot be lumped together, as the Master must find that each one is valid. For example:

1. BOO still seeks to 'assess' Waleed (Wally) Hamed for $1,778,103 for "Amount owed by Hamed family to Yusuf as per agreement before raid Sept 2001." (Emphasis added). See Exhibit 1. However, as noted in the reply seeking to strike this claim, filed at the same time as this response, Judge Brady made it clear that transactions that predated September 17, 2006, were now barred. Thus, the inclusion of this claim in the "revised" BOO report is in direct violation of this Court's order. More to the point here, only the Master, not BDO, can decide if this claim is still valid or is barred.

2. BOO allocates $4.1 million in attorney's fees to Hamed and $237,691 to Yusuf for the defense of the criminal case. Those "accounting entries" actually consist of "findings" that this allocation is appropriate, which is a finding reserved for the Special Master, not BDO.1

1 BOO still ignores the un-contradicted declaration of Gordon Rhea, the lawyer who headed up the legal team for the criminal case, submitted at the March 6th hearing that all legal work was done jointly on behalf of all of the Yusuf/Hamed defendants, so that such an allocation was improper. See Exhibit 7 to Hamed's initial motion re BOO.

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Page 3 - Hamed's Reply to Yusuf's Opposition to Motion to Strike BDO Report

3. Yusuf argues on pp. 10-12 of its opposition that BOO did take into account the factthat Mafi Hamed earned rents outside of his Plaza income, attaching Table 26B fromBOO's report for Scotia account 9811 that supposedly supports this argument.However, a review of that table confirms that BOO did not make any suchadjustment for the years prior to 2012, despite Mafi's testimony that all depositsinto this account were rent from a business unrelated to Plaza Extra. SeeExhibit 2. Thus, this obviously incorrect allocation is STILL in the BOO report andSTILL consists of a "finding" that this bank account contains partnershipwithdrawals.2 More to the point, not only is this "accounting entry" incorrect, but itinvolves a finding reserved for the Master.

4. BOO includes the Hamed $2.7 million claim (conceded by Yusuf) as simply anaccounting entry, which it then offsets with other claims, even though that is apending claim now before the Master to decide, as will be the case regarding anyoffsetting claims. Again, BDO is attempting to replace the Master.

These few examples make it clear that Yusuf is trying to use this "revised" BOO report

to have BOO make "findings" that are in fact separate "judgments" as to ultimate issues

-- decisions entrusted to the Special Master, not BOO.

In short, each BOO accounting entry constitutes a separate claim. While Yusuf is

free to raise any claims that Hamed withdrew funds to which he is entitled to an offset,

he must present evidence proving each such specific claim to the Special Master,

not just say "allow it because BOO says so" in an accountant's "compilation" summary.

II. Yusuf's request to do more discovery will not correct this fatal flaw

Because the very nature of the revised BOO report is flawed, no amount of

discovery will cure this defect. Indeed, the mere suggestion that this report may be

further modified "after discovery" runs afoul of the Bar Orders entered in this

accounting phase. BOO's $4.5 million claim is set, which is nothing more than an

unwarranted intrusion into the Master's task of deciding claims. Thus, further discovery

2 See Exhibit 2, attached hereto, with markings in red where no such alleged adjustment was made. It is amazing that Yusuf argues that Mafi's March 6th testimony was addressed by BOO, when no adjustment was made. When will such antics stop?

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Page 4- Hamed's Reply to Yusuf's Opposition to Motion to Strike BOO Report

would be a waste of time and resources, further delaying this matter, as such discovery

will not cure this fatal defect. It would also contravene Judge Brady's orders.

Ill. Conclusion

The revised BOO report--that "packages" multiple "findings" into an alleged single

"claim" of $4.5 million--should be stricken as invading the province of the Special

Master, who has been entrusted with the sole responsibility of making such findings.

Moreover, additional discovery will not change the simple fact that it is the Special

Master, not BOO, who has been entrusted to make these decisions. Thus, BDO's

one page "compilation" should be stricken now, allowing the Master to make all

decisions on each individual claim, rather than allowing BOO to try grouping such

findings it made into a single claim.

Dated: January 22, 2017 e . olt, Esq. w Offices of Joel H. Holt

132 Company Street, Christiansted, VI 00820 Email: [email protected] Tele: (340) 773-8709 Fax: (340) 773-867

Carl J. Hartmann Ill, Esq. 5000 Estate Coakley Bay, L6 Christiansted, VI 00820 Email: [email protected]

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Page 5 - Hamed's Reply to Yusuf's Oppositíon to Motion to Strike BDO Report

CERTIFICATE OF SERVICE

I hereby certify that on this 22nd day of January, 2018, I served a copy of theforegoing by email (via Case Anywhere ECF), as agreed by the parties, on:

Hon. Edgar Ross, Special Master% edgarrossjudge@hotmai l. com

Gregory H. HodgesStefan HerpelCharlotte PerrellLaw House, 10000 Frederiksberg GadeP.O. Box 756St. Thomas, Vl [email protected]

Mark W. EckardHamm, Eckard, LLP5030 Anchor WayChristiansted, Vl [email protected]

Jeffrey B. C. MoorheadCRT Brow Building1132 King Street, Suite 3Christiansted, Vl 00820jeffreym I aw@yahoo. com

CERTIFICATE OF COMPLIAN RULE 6-1(e)

This document complies with the page or word lim set forth in Rule 6-1(e)

Page 6: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

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EXHIBIT

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Page 7: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

BDOùrdley, Topperalld Feuerzeig, LLP

itof¡arnmad lfuned v. Fathi Yusuf and United CorporationCivil No- 9(-12-CV-99 (October 20Ol to ltecember 20f 2)

Accourt ûrnecFinancial l¡rstih¡tion:Type cfÁccouneAccount Number:

,tttrfeed Hamed / Watly Hamed

Scotiabank

Checking Account

058'1560981'l

Barred by JudgeBrady's Opinion

2mr lot15t2fm1 10t1t2ú1 $ 5,mo.(x) s 4,000-00 A' Br'l2001 11t15t2æ',1 No depæit -/ 72û1 12t15t2fr1 No deposit 2

TotalYear 2ü11 s,(X)O.00 (1,æO.(Xr) 4,(X10.(xt

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Tot¡l Year Z(þ2 11 4

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EXHIBIÏ

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Page 8: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

Barred by JudgeBrady's Opinioin

2m6 111512û7 l2l20.r2û6 1,4(n-00 ./ 1,4(þ-00 A2M 1n5t2ú7 12t20t2lil6 2,(n0.00 / 2,ü)0.m A

Tdal Year 2O06 3,4(X,.(X¡

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Y ear Statement Date Transaction D¡te Deposits Äd justment Adjuste, ÂmountTicþ.merks;

Page 9: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

Rents Collected by Mafi Hamedunrelated to Partnership, butallocated as a Partnershipwithdrawal by BDO

2ü// 10lt5t2ür7 9n9tzvtf 3,695.fl) A10115t?ßn 9t19tN| 3,(Iþ.00 3,(no.m A10r15tzmir 10n5tztfi, 0.90 (0.90 3naI 11t1512011 11nslzgn 0.30 (0.30) 3zgn 1Zn5tZW7 11t20t2w7 2,585.m 2,585.q! A

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krnarks¡Note

Y ear Statement Date Transactjcn Date D eoos'ì s

Page 10: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

Rents Collected by Mafi Hamedunrealted to Partnerhship, butallocated as a Partnershipwithdrawal by BDO

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^2ß) 2t15t2æ9 ltzltzw) 2,5/'/J.-(n A2ß 7t1 1l23tztß' 7to-æ Tto-w AM 2t15t2W 2n3t2W) 0-90 (0.e0) Ar32W 2t 5,819.q) 5,Elg-m Â2W 3tËt?lIlg ut7 Tto-æ no-00 Axß 4t15t2$9 3t37t2æ9 TTO.@ A20ut 4t15t2üJ9 3t31t7ú9 7,24lJ'-ü)2W 4115t2ætt 4I1I2Wt 3,il)o-m 3,000.fx)

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6t15t2æ9 6t3r?:W9 2,170.m A2W 6t15t2æ9 6111l2[n9 2,5(Xr.(I) Azû9 7l15t2W 7l10tm9 3,ft60.00 A2æ9 711 Tnotzqn 1,ilO.(n f,54o.(x) Azlng 8115t2W9 8t3r2æ9 2,9ü)-flt 2,9(x)-m A2æ9 8t3r2ñ9 2,ó05.m 2,605.00 Az(w t5r2g09 8t14t2ñ9 0-60 (0.60) Ar32M 15tzffi 9tu?frg 3,510-Ul Azgw 9115Ãn9 9t2tzxtg Tro-æ Tto-æ A

Yea r Stàteinent Dàte Tr¡,rsar-tio¡ Date 0 epos tt s c k ma rks/Note

ItI

Page 11: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

Rents collected by Mafi Hamedunrelated to Partnership, butallocated as a Partnershipwithdrawal by BDO

2W 9t15t?ñ9 9n5t2æ9 1-5f)2:W9 10t15t20t, 10tEt2ñ9 2,27O.(n 2,270.(n A7û9 10t75tzxn ßr8/zmg 3,770-m 3,77O-æ A2W 10115t2ffi 10t8t?ffi9 7,(xx).00 7,(m-æ A2W 10115tzjIJ9 10t15t2rw) t.m (1.20) Á"3zflæ 11t15tm9 11t3tzffi TIO-Ut no-n

^zwg 11n5t2æ9 11n3tzffi' 0-60 4,32W 11n5tzclJl) 11t3t7ffi) 3,E75.(n 3,875.00 AlUUAng Tto.æ 7IO.æ

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Page 12: WAHEED WALEED Hamed Docket Entries/2018... · 2018. 1. 22. · waleed hamed, waheed hamed, mufeed hamed, hisham hamed, and plessen enterpr¡ses, inc., cou nterclaim defendants, mohammad

Rents collected by Mafì Hamedunrelated to Partnership , butallocated as a Partnershipwithdrawal by BDO

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