Jeff Wald V NYLA
Jeff Wald V NYLA
Jeff Wald V NYLA
MORRIS
2 State Bar No. 48368
Attorney at Law
3 1407 Oakland Blvd., Suite 200
4 Walnut Creek, California 94596
(925) 934-1100
5 Fax: (925) 934-1122
6 [email protected]
7 Attorney for Plaintiff
8 JEFF WALD
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SUPERIOR COURT OF THE STATE OF CALIFORNIA
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11 COUNTY OF LOS ANGELES, SANTA MONICA COURTHOUSE
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JEFF WALD,
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Plaintiff, No. 20SMCV00832
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v.
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Department P
16 LOUIS ARRIOLA, TARYN ARRIOLA,
17 NYLA Media Group (aka, NYLA PRODUCTIONS),
CAMERON MITCHELL,
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19 Defendants./
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First Amended Complaint for Damages
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22 Plaintiff JEFF WALD alleges, for a cause of action for fraud and breach
23 of contract:
24 Dramatis Personae
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1. Plaintiff JEFF WALD is 76 years old and has been in the
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entertainment business for over 50 years. As a producer, plaintiff has
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28 produced 2300 hours of documentaries, television shows, miniseries, and
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1 movies, including 2 Days in the Valley. As a personal manager, plaintiff WALD
2 has nurtured the careers of Sylvester Stallone, Miles Davis, Oscar Brown Jr.,
3 Roseanne Barr, Mike Tyson, Donna Summer, Crosby Stills and Nash, Helen
4 Reddy, the Turtles, Deep Purple, Chicago, James Brolin, Tiny Tim and others
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too numerous to mention. He was appointed to the 1984 Olympic Committee
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by Mayor Bradley, he was a delegate for Jerry Brown to the 1976 Democratic
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National Convention and for Ted Kennedy in 1980, he has been on the Board
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of Directors of Cedar-Sinai and the Betty Ford Clinic, and he was named
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Humanitarian of the Year by the City of Hope.
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2. Defendant LOUIS ARRIOLA is a convicted fraudster, with a long
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history of engaging in assorted fraudulent endeavors. In 2009, defendant
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LOUIS ARRIOLA was convicted of a felony, a violation of 18 USC §1341, Mail
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14 Fraud, in the United States District Court for the Central District of California,
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1 to, used that company’s tax identification number to order telephone service,
2 and forged the signature of a senior official of that company to open
3 fraudulent accounts with the telecommunications providers
4 4. As the government described a typical telecommunications fraud
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scheme, “[o]ften, the fraud ring steals the identities of real companies and the
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identities of actual company officers to facilitate the process of applying for
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and obtaining telecommunications service from a victim provider…The
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victim providers, believing they have a legitimate customer, install service at
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a physical address designated by the fraud ring which the fraud ring then uses
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as a call forwarding facility….The fraud ring then resells the
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telecommunications service received from the victim providers to the fraud
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ring's own clients at very low rates…The victim providers typically discover
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14 the fraud only after there has been high volume usage of their
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1 6. Upon his plea of guilty, defendant LOUIS ARRIOLA was
2 sentenced to 27 months imprisonment in a federal penitentiary, followed by 3
3 years of supervised release.
4 7. The United States Attorney who prosecuted the fraud case
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concluded that defendant LOUIS ARRIOLA, “has acquired a specialty in
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telecommunications fraud.” It is not surprising then that defendant LOUIS
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had a history of telecommunications fraud.
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8. In 2001, before the events which led to his felony conviction,
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defendant LOUIS ARRIOLA executed a scheme of fraud, victimizing
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Telepacific, a telecommunications company. Defendant LOUIS ARRIOLA
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was employed in the sales department at Telepacific. Defendant LOUIS
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ARRIOLA claimed to have sold Telepacific services to three companies
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14 located in the Los Angeles area. He submitted three applications to Telepacfic
15 in the name of actual companies indicating that these three clients had agreed
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1 10. At the time of sentencing in his federal felony case, the
2 government prophetically told the court that the “government views
3 defendant as an extremely high risk” of reoffending. With more than a little
4 irony, defendant LOUIS ARRIOLA’S on-line biographies now describe him as
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a “chief operations officer…brokering major deals in telecommunications.”
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Most recently, in his capacity as Chief Operating Officer of LDI Networks Inc,
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another telecommunications company, defendant LOUIS ARRIOLA is being
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sued by Alterna Capital Solutions, LLC, in the United States District Court for
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the Central District of California, No. 2:20-cv-07277, for $6,469,958 relating to
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the financing of VoIP telecommunications services for LDI Networks.
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Although the complaint in Alterna Capital Solutions, LLC v. Louis Arriola does
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not specifically allege fraud, from the facts stated therein, it appears that fraud
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14 was involved.
15 agreement was reached on the essential terms for the producer’s fees for
16 American Cherry.
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26 Exhibit A, Excerpt of transmittal e-mail
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28 19. The parties’ oral agreement was memorialized in a Memorandum
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1 of Understanding (hereinafter, "MOU"), attached as Exhibit B. On information
2 and belief, the MOU was drafted by an attorney representing defendants. The
3 MOU set forth the terms for the production of American Cherry.
4 20. The MOU set the fee for a script writer, Marcella Cytrynowicz at
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$50,000. On information and belief, defendants LOUIS ARRIOLA and NYLA
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paid Ms. Cytrynowicz $50,000 for her work as a script writer.
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21. The MOU also set the fee for Ms. Cytrynowicz’s work as the
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director of American Cherry at $75,000. On information and belief, defendants
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LOUIS ARRIOLA and NYLA paid Ms. Cytrynowicz in accordance with the
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terms set forth in the MOU.
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22. The MOU set the fee for Sarah May Sommers for her work as co-
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producer at $20,000. Defendants LOUIS ARRIOLA and NYLA paid Ms.
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14 Sommers $20,000 for her work as co-producer of American Cherry.
16 and TARYN ARRIOLA agreed to pay plaintiff WALD the sum of $100,000, in
17 increments of $25,000, to act as a producer for American Cherry. The producer’s
18 fee for plaintiff JEFF WALD included compensation for acquiring the script
19 for American Cherry.
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24 Excerpt of Exhibit B, the MOU
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26 24. From the time the MOU was drafted by counsel for NYLA and sent
27 to plaintiff JEFF WALD, March 12, 2019, to date, the MOU has neither been
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1 thereto. Rather the false promises of payment set forth therein were used by
2 defendants ARRIOLA and NYLA to induce plaintiff JEFF WALD into
3 providing producer services without paying him the agreed upon fee. On
4 information and belief, and consistent with his prior history of fraudulent
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dealings, defendant LOUIS ARRIOLA never had any intention of paying
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plaintiff JEFF WALD his full fee as per the MOU.
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25. Prior to the start of the filming of American Cherry, defendants paid
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plaintiff WALD $25,000 in accordance with the terms of the MOU. Although
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the MOU called for plaintiff WALD to be paid an additional $75,000 in $25,000
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increments, by the time principal photography concluded, defendants, and
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each of them, had failed to pay plaintiff WALD anything in addition to the
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original $25,000 that had already been paid. To date, defendants, and each of
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14 them, have refused to make any further payments to plaintiff WALD that they
15 in Crash, the winner of the 2006 Oscar for Best Picture. However, Ms. Esposito
16 bearing a large stack of papers that had tabs for where she was supposed to
17 sign. Defendant TARYN ARRIOLA falsely told Ms. Sommers, who was 21 at
18 the time, that plaintiff JEFF WALD, her father, knew about the papers, that
19 there was just a name change, and that he had read and approved of the
20 papers. In truth, plaintiff JEFF WALD had neither read the documents, nor
21 was he aware of their existence. He certainly did not approve of them.
22 35. Moreover, rather than a simple name change, the papers that
23 defendant TARYN ARRIOLA tricked Ms. Sommers into signing were drawn
24 up for the purpose of reducing Ms. Sommers salary from $40,000 to $18,000
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for portraying the female lead in American Cherry. The Screen Actors Guild
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(hereinafter, “SAG”) was contacted. On information and belief, SAG told
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NYLA and defendants ARRIOLA that if they did not restore Ms. Sommers’
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salary, they would lose their deposit with SAG. Ms. Sommers salary was
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1 restored.
2 36. Defendants ARRIOLA and NYLA hired Geoff Goodman as a
3 producer for American Cherry. His fee was set at $75,000 in the MOU.
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10 Excerpt of Exhibit B, MOU
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Defendants, and each of them, were well aware that Mr. Goodman had been
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13 working on the script for American Cherry for approximately a year prior to the
14 commencement of filming and his fee was set, in part to recognize the value
15 of that work. Just before the actual filming started, defendant TARYN
16 ARRIOLA informed Mr. Goodman that defendants were unilaterally reducing
17 his fee from $75,000 to $12,500 and that if he did not agree, he would not get a
18 producer’s credit. Mr. Goodman was thus coerced into agreeing to the reduced
19 fee.
20 37. On or about August 14, 2019, defendant CAMERON MITCHELL
21 became the CEO of defendant NYLA.
22 38. On or about August 25, 2019, after the principal photography of
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American Cherry was completed, plaintiff WALD asked defendant LOUIS
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ARRIOLA for the rest of his fee. Defendant LOUIS ARRIOLA refused, falsely
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stating that “I don’t owe you any money!!”
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39. On or about September 21, 2019, plaintiff JEFF WALD and
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defendant MITCHELL spoke on the phone about the MOU and discussed
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11 Exhibit C
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13 moneys owed to plaintiff JEFF WALD by defendants NYLA et al.
14 40. Subsequent to the phone call, e-mails and texts were exchanged. In
15 response to defendant MITCHELL’s e-mail of September 21, 2019, plaintiff
16 WALD made it clear that he was asking for nothing less than full compliance
17 with the terms of the MOU. Plaintiff JEFF WALD informed defendant
18 MITCHELL that he was demanding his whole fee, as set forth in the MOU,
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25 Exhibit D: Plaintiff JEFF WALD Text to defendant MITCHELL
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27 and that the fee was not subject to negotiation
28 41. On September 24, 2019 plaintiff JEFF WALD sent a copy of the
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Exhibit E
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12 MOU to defendant MITCHELL, who acknowledged receipt.
13 42. On or about September 25-26, 2019, defendant MITCHELL
14 ratified the terms of the MOU and told plaintiff JEFF WALD that he had “good
15 news” for him.
16 43. Shortly thereafter, defendant MITCHELL sent plaintiff WALD a
17 text indicating that the matter was settled, that someone named Randy
18 Johnson would be handling it from that point on, that Mr. Johnson would
be sending paperwork attendant to the resolution, and that Mr. Johnson
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had plaintiff WALD’S wiring information so that Mr. Johnson could transmit
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the money.
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Exhibit F
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44. On information and belief, the above representations -- that the
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dispute was settled and that defendant MITCHELL had authorized Randy
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Johnson to wire money to plaintiff JEFF WALD -- were false and defendant
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MITCHELL knew they were false at the time he made them. At no time did
15 defendant MITCHELL intend to pay plaintiff JEFF WALD his full fee as set
16 forth in the MOU.
17 45. No further payment from NYLA was ever received by plaintiff
18 JEFF WALD.
19 46. Plaintiff JEFF WALD was damaged by defendant ARRIOLA’s
20 fraudulent acts vis a vis American Cherry. Because defendant ARRIOLA has
21 refused to pay him his fee, as set forth in the MOU, that he promised to pay,
22 and defendant LOUIS ARRIOLA forced him to hire and pay an attorney to file
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a lawsuit to recover what he is owed.
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47. The conduct of defendants, and each of them, as alleged herein
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was willful, malicious, oppressive and despicable, performed with full
26 knowledge of the adverse effects of their actions on plaintiff WALD and with
27 willful, deliberate and conscious disregard of the consequences to plaintiff
28 JEFF WALD. As a result of the conduct of defendants, and each of them, as
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1 alleged herein, plaintiff JEFF WALD is entitled to exemplary and punitive
2 damages in an amount sufficient to punish and deter defendants, and each
3 of them, as alleged herein, from engaging in such conduct in the future, the
4 exact amount of which is subject to proof at the time of trial.
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Second Cause of Action: Breach of Contract
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48. Plaintiff JEFF WALD realleges each and every allegation contained
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paragraphs 1-47 above and incorporates the same as though fully set forth
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herein.
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49. The above-referenced MOU is a binding memorandum of an oral
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agreement that was reached on March 11, 2019 between plaintiff JEFF WALD
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13 and defendants ARRIOLA and NYLA. The MOU set the terms for plaintiff
15 reliance on the terms of the MOU, to his detriment, plaintiff WALD was
16 induced to travel to and spend 6 (six) weeks in Fayetteville, Arkansas on the
17 set of American Cherry fulfilling his role as a producer.
18 50. Defendants, and each of them, breached their contractual
19 obligations, as set forth in the MOU, by failing to pay plaintiff JEFF WALD the
20 remaining $75,000 of his producer’s fee.
21 WHEREAS Plaintiff JEFF WALD prays that judgment be rendered as
22 follows:
23 First Cause of Action:
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1. Compensatory damages in an amount of proof;
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2. Punitive damages in an amount according to proof;
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3. Treble Damages pursuant to Civil Code §3345.
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4. Costs of suit;
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5. Such other and further relief as the Court deems appropriate.
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1. Compensatory damages in the amount of $75,000.
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2. Costs of suit;
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3. Such other and further relief as the Court deems appropriate.
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Dated: September 9, 2020
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8 FA R RY L . M O R R I S
9 Attorney for Plaintiff
JEFF WALD
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Proof of Service by e-Mail
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First Amended Complaint
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26 BAl^RYL.MORRIS
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Exhibit A
From: Jenny Alonzo <[email protected]>
Date: Tue, Mar 12, 2019 at 9:16 PM
Subject: Amended MOU for Fishbowl
To: Jeff Wald <[email protected]>
Cc: Louis Arriola <[email protected]>, David Ross
<[email protected]>, Taryn Sims
<[email protected]>, Jadyn Arriola
<[email protected]>
Jeff,
Attached is the Fishbowl amended MOU per yesterday's conversation with Louis, our
conversation this morning, and the notes you sent back this afternoon.
As you will see, the terms for producer payments are all the same. However, per Lou's
agreement with you while on the call, he will be giving you an advance of $25k upon
signage of this MOU. In addition, as agreed, Louis will be executing the payment to
secure the script/chain of title with Marcella and also release a $5k payment to get the
casting director working immediately. Until a bank account for the Fishbowl LLC SVP is
established, you will be held responsible for the $5k payment for the casting director.
Please review and make sure the rest of your team signs off on the memorandum so we
can proceed to a termsheet.
Thanks so much!
Be great!
Jenny
Alonzo | m. 917.972.4771 | e. [email protected]
Exhibit B
NYLA MEDIA GROUP
MEMORANDUM OF UNDERSTANDING
PROJECT: FISHBOWL
INVESTMENT/BUDGET: $2.6M
CREDITS:
The Picture shall have the following producing and company credits:
• Each Producer shall be entitled to a “Produced by” credit, with at least two
NYLA producers included in the top three positions.
• Investor shall be entitled to the following credits:
o Lou Arriola, Executive Producer in first position
o Taryn Sims Producer
o Dave Ross Producer
o Jadyn Arriola Associate Producer
o Jenny Alonzo, Executive Producer in second position behind only
Lou Arriola.
• Producer’s production company shall be entitled to a production company
credit and, subject to distributor approval, which the parties each agree to
use good faith efforts to obtain, an animated company logo at the
beginning of the Picture, and a bug logo in all paid advertising, provided
that in no event shall Investor be required to give up or reduce its logo
entitlements.
• The Director’s production company shall be entitled to a production
company credit
PAYMENT SCHEDULE:
Upon the signing of the MOU, a termsheet will be generated and the following
payment schedule will be executed according to the terms within each of the
following sections/party:
FISHBOWL MOU
CONFIDENTIAL – 03.12.19
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Page 1 of 3
Director: Marcella Cytrynowicz
Total Fee: $75,000 (1st 25% upon duly executed termsheet; 2nd 25% at start of
principal photography; 3rd 25% at end of principal photography; 4th and final 25%
when final cut is delivered.) $18,750 each installment
Casting Director: $5k to start casting process; paid upon signage of MOU.
WATERFALL: TBD
APPROVALS:
Final Cut: Company and Director shall have the right to prepare the “festival
cut” and/or “distributor screening” cut of the Picture; provided, that (i) final
cut rights may be granted to any distributor or (ii) if the Picture does not sell
based on the “festival cut” or “distributor screening” cut, Investor shall have
the right to re-cut the Picture , provided that final cut rights shall be reserved
to any distributor or Investor if necessary or desirable to effect a sale in
Investor’s good faith opinion.
FISHBOWL MOU
CONFIDENTIAL – 03.12.19
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Page 2 of 3
Talent: Investor, Company, and Director to have mutual approval
over key cast, with Investor having tie-break in the event of a disagreement;
Investor shall have true mutual approval over the roles of “Finn,” “Dale,” and
“Louise. The role of “Eliza” will be played by Sarah May Sommers.
Music: Investor shall have the right to collaborate with Director and Company on
music direction and choices. In the event of a disagreement, Director shall be the
tie-breaker.
SUBSEQUENT PRODUCTIONS:
_____________________________
Jeff Wald, Producer
03.13.19
FISHBOWL MOU
CONFIDENTIAL – 03.12.19
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Page 3 of 3
Exhibit C
From: Cameron Mitchell <[email protected]> Date: September 21,
2019 at 8:42:44 AM PDT To: Jeff WALD <jeff[email protected]> Cc: Taryn
Arriola <[email protected]>, David Ross
<[email protected]> Subject: Re: CONTRACT
Good speaking to you this morning. Sorry we didn’t connect before the
email.
Best, Cameron
Exhibit D
On Sep 21, 2019, at 8:34 AM, Jeff WALD <jeff[email protected]> wrote:
Good morning Cameron, Let’s make this very simple and cut to the chase.
You are the CEO and per our conversation you said you understood my very
clear position.