Terry L. Smith of Pittsburgh, Pennsylvania, United States of America is a Convicted of "Advance Fee Fraud in North Carolina.
Terry L Smith claims to be CEO of a company called CREF-Commercial Real Estate Financing
He claims:
“CREF, Inc., is an international banking and development group that directly provides equity infusion, tailor made debt vehicles and Green Energy Grants for projects in Smart Cities, Commercial Real Estate and Energy Development Projects. Development projects up to $900 million US dollars in size.
In 2015 he tried to pull off another CON against my hometown, Johnstown, Pa.
Smith was convicted in North Carolina of “Advance Fee Fraud”. He also attempted the same scam in Johnstown, Pa.
How does Smith scam? He tells you his company can access millions of dollars in financing for projects. He claims he has a long list of successful projects he has obtained funds for. However, if you ask him to speak with someone he has successfully obtained money for; he'll tell you that his clients want to be kept confidential. Smith then tells you that he needs an “upfront fee” to begin work, do due diligence, etc. He then does NOTHING because he has no connection to money!
However, his contract with your company stipulates that your “Advance Fee” is no refundable!
Below are two cases involving Smith. He was convicted in North Carolina and in Johnstown, Pa. he tried to pull the same scam.
CASE ONE: North Carolina. Terry L. Smith of Pittsburgh, Pa. wass convicted of “Advance Fee” fraud and ordered to pay $850,000. in restitution to his victims.
Terry L. Smith ("Smith") "conspired1to form and successfully implemented a species of Advance Fee Fraud to rob [SCDF] of a substantial deposit."
SOUTHEAST COASTAL DEVELOPMENT FUND, L.L.C., Plaintiff, v. COMMERCIAL REAL ESTATE INC., and TERRY L. SMITH, Defendants.
United States District Court, E.D. North Carolina, Western Division.https://leagle.com/images/logo.png
April 3, 2009.
April 3, 2009.
United States District Court, E.D. North Carolina, Western Division.
ORDER
JAMES C. FOX, District Judge.
This matter is before the court on Defendants' Motion to Dismiss [DE-18]. Also before the court is the Motion to Seal [DE-23] filed by Plaintiff Southeast Coastal Development Fund, L.L.C., and Defendants' Second Motion to File Documents Under Seal [DE-30]. All motions have been briefed and are ripe for ruling.
I. STATEMENT OF THE CASE
Plaintiff Southeast Coastal Development Fund, L.L.C. ("SCDF") initiated this action on January 10, 2008, by filing a Complaint [DE-1] in this court. In the 29-page Complaint, SCDF alleges that Defendants Commercial Real Estate Inc. ("CREF") and Terry L. Smith ("Smith") "conspired1 to form and successfully implemented a species of Advance Fee Fraud to rob [SCDF] of a substantial deposit."2 Compl. [DE-1] at p. 1. SCDF also alleges that Defendants' actions deprived it of "related business opportunities measuring in the millions of dollars." Id. SCDF asserts claims for fraud, constructive fraud, violation of North Carolina's Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. § 75-1.1, and breach of contract. On March 4, 2008, Defendants filed the instant Motion to Dismiss [DE-18], arguing that dismissal is appropriate because (1) the court lacks subject matter jurisdiction over this matter; (2) the court cannot assert personal jurisdiction over Defendants; (3) SCDF has failed to state certain claims, and (4) SCDF has failed to join indispensable parties.
II. STATEMENT OF THE FACTS
The undisputed facts, as taken from the Complaint and the submissions of the parties, are as follows
SCDF is a North Carolina limited liability company whose principal business involves the acquisition, development, and sale of real property. Compl. [DE-1] ¶ 14. Defendant CREF is a small Pennsylvania corporation, with its principal place of business in Sewickley, Pennsylvania. Compl. [DE-1] ¶ 2, Decl. of Mark Wenick [DE-26] ¶ 9. CREF's principal shareholder and officer is Defendant Smith, who is also resident of Pennsylvania. Compl. [DE-1] ¶ 3; Decl. of Mark Wenick [DE-26] ¶ 9-10.
In the early part of 2007, SCDF contracted to purchase a 972-acre tract of land along the Cape Fear River ("the Property") for $33,500,000.00. Id. ¶¶ 15.1, 15.2. The purchase agreement names "Southeast Coastal Development Fund, LLC" as the purchaser. Decl. of Mark Wenick [DE-26] ¶ 6, Ex. 2. The purchase agreement required an escrow deposit of $200,000.00. Compl. [DE-1] ¶ 15.3. Pursuant to the purchase agreement, SCDF agreed that $50,000.00 of the escrow deposit would be transferred to the seller on April 27, 2007, and, in the event that SCDF did not cancel is obligations under the agreement, the remaining $150,000.00 would be transferred to the seller on July 31, 2007. Id. at ¶¶ 15.4-15.5. Closing was to occur no later than August 30, 2007. Id. at ¶ 15.6. SCDF contends that it intended to acquire and develop the property into a high-end golfing and marine-based residential community, and that it required capitalization or debt financing in the aggregate amount of $50,000,000.00. Id. at ¶¶ 16-17.
SCDF admits that it initiated contact with Defendants in or around May 2007, "to determine whether [Defendants were able and willing to assist plaintiff in the procurement of sufficient funds to acquire and preliminarily develop the property." Id. at ¶ 18. SCDF contends that from May through July 2007, its managing members communicated with Smith on many occasions about the prospect of SCDF engaging CREF's services to procure the substantial financing needed for the project. Id. at ¶ 19, Decl. of Mark Wenick [DE-26] ¶¶ 9-24. SCDF alleges that during these communications, Defendants made false representations regarding their abilities, track record, and efforts to be taken on behalf of SCDF. Compl. [DE-1] ¶¶ 20-24.
In late June 2007, Smith sent a proposed "Confidentiality and Business Agreement" ("CBA") to SCDF. The draft agreement included what SCDF characterizes as "several dozen typographical errors," including referring to SCDF as "`Southeast Costal[sic] Development Funds, Fund 11', LLC a.ka. Balmoral."3 Decl. of Mark Wenick [DE-26], Ex. 4. The June Confidentiality and Business Agreement states it was "between the following parties":
Mark J. Wenick, (MW), Individual and CEO, Steve Burch, (SB), individual and Managing Member, and Anthony Jay Mouser, (AJM), Individual and Managing Member of the Special purpose created entity known as Southeast Costal[sic] Development Funds, Fund 11, a.k.a. Balmoral. (Entity), whose address is c/o Don Hunt, Esquire Akins Hunt Attorneys at Law 134 North Main Street, Suite 204, Fuquay-Varina, NC 27526, U.S.A.
AND
Terry L. Smith, (TLS) President of Commercial Real Estate Financing, Inc., (CREF), whose present address is 325 Sixth Avenue, Pittsburgh, PA 15222, U.S.A., and future address of Car Barn Shops, 2nd Floor, P.O. Box 81 Sewickley, PA 15143, U.S.A.
Id. The document provided: "The above referenced parties have entered into this agreement to obtain financing monies, including debt and/or equity for the transaction presently known as `Southeast Costal [sic] Developments Funds, Fund 11, LLC. a.k.a. Balmoral['] (Entity)." Id. The document also explicitly provided:
This Agreement has an expiration date of June 21, 2007 to be accepted and TIME IS OF THE ESSANCE [sic]. Should this Agreement not be accepted by close of business on June 21, 2007, all exclusive rights to the funding and service providers remains with (TLS) & (CREF[)] for life, and the Agreement will need to be negotiated to the terms of (TLS) & (CREF).
Id.
Mark Wenick, the managing member and chief executive officer of SCDF, contends that despite being "alarmed" by the number of "typographical errors," he spoke to Smith over the next several days about the proposed CBA. Decl. of Mark Wenick [DE-26] ¶ 14. Wenick maintains that he discussed with Smith "the misspelling of Southeast Coastal Development Fund, LLC's name and that none of the managing members of the company intended to be personal parties to his proposed transaction." Id. Wenick contends that Smith "indicated that he understood [Wenick's] concerns ... [but] his attorneys would not allow him to modify the text of his proposal." Id. There is no indication that the June 18, 2007, CBA was accepted by SCDF or any other entity.
On July 9, 2007, Smith faxed a new version of the CBAto SCDF's offices in North Carolina. Id. at ¶ 15, Ex. 5. The July 9, 2007, CBA proposal contained the same description of the "parties" present in the June 18, 2007 proposal. With regard to the timing of acceptance, the July 9, 2007, proposal provided:
This Agreement has an expiration date of July 10, 2007, to be accepted and TIME IS OF THE ESSANCE [sic]. Should this Agreement not be accepted by close of business on July[] 10, 2007, all exclusive rights to the fund and service providers remains with (TLS) & (CRE[)] for life, and the Agreement will need to be negotiated to the terms of (TLS) & (CREF).
Id. The proposal also provided:
Should any party of this transaction cause a breach of this contract, legal action will be taken against the breaching party in the state of the breached party, and any and all legal expenses are to be paid by the breaching party.
By placing your signature on the space provided, any and/or all parties have read, understand and agree to the terms and conditions of this agreement. This Agreement is binding and non-negotiable.
The details of this reporting are incorrect, and are a result of what is our humble opinion, people who are trying to save face, and placing blame on others for their lack of knowledge, and also in our humble opinion, are looking for a scape goat for their poor business conduct!
The truth shall stand when all else fails, and we are standing quite tall indeed, and we always shall be standing tall! As we are celebrating our 19th year in business, we are conducting quality business on a global scale, and are ever expanding!
Terry L Smith Reviews
$37,000 upfront money scammer
Terry is a complete fraud. Do not ever do business with him. He claims he manages 900 million dollars.
Call me you you do not believe me.
Scott Wroblewski
646-924-6491
Terry L Smith from Pittsburgh, Pa is a Convicted CONMAN
Terry L Smith of Pittsburgh, Pa is a CONMAN and has been convicted of Fraud! He is a LIAR and CONMAN.
He will boldly lie to your face.
DO NOT FALL FOR HIS LIES!
"Upfront FEE" Fraud is his game!
He was convicted in North Carolina and tried to con The Johnstown City Council is a Green Energy Scam a few years ago.
Google his name and you'll find court DOXS. Feel free to contact anyone on the North Carolina DOX or in Johnstown; they will gladly tell you
to "avoid him" at all costs.
Upfront Money Scammer
Terry claims he manages 900 million USD but has no car and lives in a hotel. That is all I will say...
Upfront Money Scammer
Terry is an upfront money scammer. Buyer Beware. He is a congenital liar.
Terry L Smith Upfront Money Scam
DO NOT EVER DO BUSINESS WITH TERRY L. SMITH OF SEWICKLEY, PENNSYLVANIA.
HE IS AN UPFRONT MONEY SCAMMER.
Scott J. Wroblewski
646-924-6491
Terry L. Smith/Pittsburgh, Pa
Commercial Real Estate Financing, Inc.
AKA: CREF
P.O. Box 81 Sewickley, PA 15143
Car Barn Shops 409 Broad Street, 2nd Floor, Sewickley, PA15143
412-352-8130 Telephone
[email protected]
Terry L. Smith of Pittsburgh, Pennsylvania, United States of America is a Convicted of "Advance Fee Fraud in North Carolina.
Terry L Smith claims to be CEO of a company called CREF-Commercial Real Estate Financing
He claims:
“CREF, Inc., is an international banking and development group that directly provides equity infusion, tailor made debt vehicles and Green Energy Grants for projects in Smart Cities, Commercial Real Estate and Energy Development Projects. Development projects up to $900 million US dollars in size.
In 2015 he tried to pull off another CON against my hometown, Johnstown, Pa.
Smith was convicted in North Carolina of “Advance Fee Fraud”. He also attempted the same scam in Johnstown, Pa.
How does Smith scam? He tells you his company can access millions of dollars in financing for projects. He claims he has a long list of successful projects he has obtained funds for. However, if you ask him to speak with someone he has successfully obtained money for; he'll tell you that his clients want to be kept confidential. Smith then tells you that he needs an “upfront fee” to begin work, do due diligence, etc. He then does NOTHING because he has no connection to money!
However, his contract with your company stipulates that your “Advance Fee” is no refundable!
Below are two cases involving Smith. He was convicted in North Carolina and in Johnstown, Pa. he tried to pull the same scam.
CASE ONE: North Carolina. Terry L. Smith of Pittsburgh, Pa. wass convicted of “Advance Fee” fraud and ordered to pay $850,000. in restitution to his victims.
Terry L. Smith ("Smith") "conspired1to form and successfully implemented a species of Advance Fee Fraud to rob [SCDF] of a substantial deposit."
SOUTHEAST COASTAL DEVELOPMENT FUND, L.L.C., Plaintiff, v. COMMERCIAL REAL ESTATE INC., and TERRY L. SMITH, Defendants.
United States District Court, E.D. North Carolina, Western Division.https://leagle.com/images/logo.png
April 3, 2009.
April 3, 2009.
United States District Court, E.D. North Carolina, Western Division.
ORDER
JAMES C. FOX, District Judge.
This matter is before the court on Defendants' Motion to Dismiss [DE-18]. Also before the court is the Motion to Seal [DE-23] filed by Plaintiff Southeast Coastal Development Fund, L.L.C., and Defendants' Second Motion to File Documents Under Seal [DE-30]. All motions have been briefed and are ripe for ruling.
I. STATEMENT OF THE CASE
Plaintiff Southeast Coastal Development Fund, L.L.C. ("SCDF") initiated this action on January 10, 2008, by filing a Complaint [DE-1] in this court. In the 29-page Complaint, SCDF alleges that Defendants Commercial Real Estate Inc. ("CREF") and Terry L. Smith ("Smith") "conspired1 to form and successfully implemented a species of Advance Fee Fraud to rob [SCDF] of a substantial deposit."2 Compl. [DE-1] at p. 1. SCDF also alleges that Defendants' actions deprived it of "related business opportunities measuring in the millions of dollars." Id. SCDF asserts claims for fraud, constructive fraud, violation of North Carolina's Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. § 75-1.1, and breach of contract. On March 4, 2008, Defendants filed the instant Motion to Dismiss [DE-18], arguing that dismissal is appropriate because (1) the court lacks subject matter jurisdiction over this matter; (2) the court cannot assert personal jurisdiction over Defendants; (3) SCDF has failed to state certain claims, and (4) SCDF has failed to join indispensable parties.
II. STATEMENT OF THE FACTS
The undisputed facts, as taken from the Complaint and the submissions of the parties, are as follows
SCDF is a North Carolina limited liability company whose principal business involves the acquisition, development, and sale of real property. Compl. [DE-1] ¶ 14. Defendant CREF is a small Pennsylvania corporation, with its principal place of business in Sewickley, Pennsylvania. Compl. [DE-1] ¶ 2, Decl. of Mark Wenick [DE-26] ¶ 9. CREF's principal shareholder and officer is Defendant Smith, who is also resident of Pennsylvania. Compl. [DE-1] ¶ 3; Decl. of Mark Wenick [DE-26] ¶ 9-10.
In the early part of 2007, SCDF contracted to purchase a 972-acre tract of land along the Cape Fear River ("the Property") for $33,500,000.00. Id. ¶¶ 15.1, 15.2. The purchase agreement names "Southeast Coastal Development Fund, LLC" as the purchaser. Decl. of Mark Wenick [DE-26] ¶ 6, Ex. 2. The purchase agreement required an escrow deposit of $200,000.00. Compl. [DE-1] ¶ 15.3. Pursuant to the purchase agreement, SCDF agreed that $50,000.00 of the escrow deposit would be transferred to the seller on April 27, 2007, and, in the event that SCDF did not cancel is obligations under the agreement, the remaining $150,000.00 would be transferred to the seller on July 31, 2007. Id. at ¶¶ 15.4-15.5. Closing was to occur no later than August 30, 2007. Id. at ¶ 15.6. SCDF contends that it intended to acquire and develop the property into a high-end golfing and marine-based residential community, and that it required capitalization or debt financing in the aggregate amount of $50,000,000.00. Id. at ¶¶ 16-17.
SCDF admits that it initiated contact with Defendants in or around May 2007, "to determine whether [Defendants were able and willing to assist plaintiff in the procurement of sufficient funds to acquire and preliminarily develop the property." Id. at ¶ 18. SCDF contends that from May through July 2007, its managing members communicated with Smith on many occasions about the prospect of SCDF engaging CREF's services to procure the substantial financing needed for the project. Id. at ¶ 19, Decl. of Mark Wenick [DE-26] ¶¶ 9-24. SCDF alleges that during these communications, Defendants made false representations regarding their abilities, track record, and efforts to be taken on behalf of SCDF. Compl. [DE-1] ¶¶ 20-24.
In late June 2007, Smith sent a proposed "Confidentiality and Business Agreement" ("CBA") to SCDF. The draft agreement included what SCDF characterizes as "several dozen typographical errors," including referring to SCDF as "`Southeast Costal[sic] Development Funds, Fund 11', LLC a.ka. Balmoral."3 Decl. of Mark Wenick [DE-26], Ex. 4. The June Confidentiality and Business Agreement states it was "between the following parties":
Mark J. Wenick, (MW), Individual and CEO, Steve Burch, (SB), individual and Managing Member, and Anthony Jay Mouser, (AJM), Individual and Managing Member of the Special purpose created entity known as Southeast Costal[sic] Development Funds, Fund 11, a.k.a. Balmoral. (Entity), whose address is c/o Don Hunt, Esquire Akins Hunt Attorneys at Law 134 North Main Street, Suite 204, Fuquay-Varina, NC 27526, U.S.A.
AND
Terry L. Smith, (TLS) President of Commercial Real Estate Financing, Inc., (CREF), whose present address is 325 Sixth Avenue, Pittsburgh, PA 15222, U.S.A., and future address of Car Barn Shops, 2nd Floor, P.O. Box 81 Sewickley, PA 15143, U.S.A.
Id. The document provided: "The above referenced parties have entered into this agreement to obtain financing monies, including debt and/or equity for the transaction presently known as `Southeast Costal [sic] Developments Funds, Fund 11, LLC. a.k.a. Balmoral['] (Entity)." Id. The document also explicitly provided:
This Agreement has an expiration date of June 21, 2007 to be accepted and TIME IS OF THE ESSANCE [sic]. Should this Agreement not be accepted by close of business on June 21, 2007, all exclusive rights to the funding and service providers remains with (TLS) & (CREF[)] for life, and the Agreement will need to be negotiated to the terms of (TLS) & (CREF).
Id.
Mark Wenick, the managing member and chief executive officer of SCDF, contends that despite being "alarmed" by the number of "typographical errors," he spoke to Smith over the next several days about the proposed CBA. Decl. of Mark Wenick [DE-26] ¶ 14. Wenick maintains that he discussed with Smith "the misspelling of Southeast Coastal Development Fund, LLC's name and that none of the managing members of the company intended to be personal parties to his proposed transaction." Id. Wenick contends that Smith "indicated that he understood [Wenick's] concerns ... [but] his attorneys would not allow him to modify the text of his proposal." Id. There is no indication that the June 18, 2007, CBA was accepted by SCDF or any other entity.
On July 9, 2007, Smith faxed a new version of the CBAto SCDF's offices in North Carolina. Id. at ¶ 15, Ex. 5. The July 9, 2007, CBA proposal contained the same description of the "parties" present in the June 18, 2007 proposal. With regard to the timing of acceptance, the July 9, 2007, proposal provided:
This Agreement has an expiration date of July 10, 2007, to be accepted and TIME IS OF THE ESSANCE [sic]. Should this Agreement not be accepted by close of business on July[] 10, 2007, all exclusive rights to the fund and service providers remains with (TLS) & (CRE[)] for life, and the Agreement will need to be negotiated to the terms of (TLS) & (CREF).
Id. The proposal also provided:
Should any party of this transaction cause a breach of this contract, legal action will be taken against the breaching party in the state of the breached party, and any and all legal expenses are to be paid by the breaching party.
By placing your signature on the space provided, any and/or all parties have read, understand and agree to the terms and conditions of this agreement. This Agreement is binding and non-negotiable.
Incorrect and False Information Being Reported
The details of this reporting are incorrect, and are a result of what is our humble opinion, people who are trying to save face, and placing blame on others for their lack of knowledge, and also in our humble opinion, are looking for a scape goat for their poor business conduct!
The truth shall stand when all else fails, and we are standing quite tall indeed, and we always shall be standing tall! As we are celebrating our 19th year in business, we are conducting quality business on a global scale, and are ever expanding!
Sincerely and Respectfully,
Terry L. Smith
President & CEO