Case 2:08-cv-00129-DB Document 3 Filed 03/26/2008 Page 1 of 6

RONALD S. GEORGE, P.A.

218 W. Paxton Ave.
Salt Lake City, UT 84101
(208) 232-2515

Ronald George #7721 attorney for defendants Atlas Capital, LLC, Atlas Marketing Group, L.C.,
Wade Sleater, Atlas Communications Group and Atlas Ventures

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF UTAH

JEFF JOHNS, SHIRLEY JOHNS and

KENNETH WILSON

Plaintiffs,

vs. ANSWER AND CROSS CLAIM

WADE SLEATER, ATLAS CAPITAL,

LLC, a Utah Limited Liability Company,
ATLAS MARKETING GROUP, L.C., a Case No. 2:08-cv-129
Utah Limited Liability Company, ATLAS
COMMUNICATIONS GROUP, L.C.,a
Utah Limited Liability Company ATLAS
VENTURES a Utah Limited Liability
Company,

Defendants.

WADE SLEATER, ATLAS CAPITAL,

LLC, a Utah Limited Liability Company,
ATLAS MARKETING GROUP, L.C., a
Utah Limited Liability Company, ATLAS
COMMUNICATIONS GROUP, L.C.,a
Utah Limited Liability Company ATLAS
VENTURES a Utah Limited Liability
Company,

Cross claim plaintiffs,

vs.

JEFF JOHNS

Cross claim defendant

 Case 2:08-cv-00129-DB Document 3 Filed 03/26/2008 Page 2 of 6

ANSWER

Comes now defendants, through counsel, and as an answer allege as follows:

1. Defendants deny each and every allegation plaintiff’s complaint not specifically

admitted herein.

2. Defendants admit paragraphs 6, 7, 8, 9, 26, 27, 15.

3. Defendants deny paragraphs 1, 2, 10, 11, 12, 13, 14,16, 39, 47, 48, 49, 50, 51, 52, 53,

54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79,

80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103,

104, 105, 106, 107 and 108.

4. Defendants, for lack of knowledge, deny paragraphs 3, 4, 5, 17, 18, 19, 20, 21, 22, ,

31, 33, 34, 37.

5. Concerning paragraphs 2 and 3 defendants admit the allegations of 23(a)-(e) and

admit that Mr. Johns loaned Atlas Capital the sum of $205,000.00, but for lack of knowledge

deny the allegation that Mr. Johns loaned money to Atlas Capital based upon representations of

Nelson.

6. Concerning paragraph 24 defendants admit the allegations of 24(a)and (b) and admit

that Ms. Johns loaned Atlas Capital the sum of $52,000.00, but for lack of knowledge deny the

allegation that Mr. Johns loaned money to Atlas Capital based upon representations of Nelson.

7. Concerning paragraph 25 defendants admit the allegations of 2(a) and admit that Mr.

Wilson loaned Atlas Capital the sum of $10,000.00, but for lack of knowledge deny the

allegation that Mr. Johns loaned money to Atlas Capital based upon representations of Nelson.

8. Concerning paragraph 28 defendants admit that Atlas Marketing agreed to pay any

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balance charged by Atlas Marketing on Mr. John’s American Express card in the ordinary course

of business but deny all other allegations.

9. Concerning paragraph 29 defendants admit that Atlas Marketing charged $****to Mr.

John’s American Express credit card but deny all other allegations.

10. Concerning paragraph 30 defendants state that only Atlas Marketing had an

obligation to repay the debt incurred by Atlas Marketing on Mr. John’s American Express card

and state that Atlas Marketing has not repaid the debt but deny all other allegations.

11. Concerning paragraph 32 defendants state that only Atlas Capital had an obligation

to repay any debt, other than American Express credit card charges owned to Mr. Johns and

admit that Atlas Capital has not repaid the principle investment as set out in paragraphs 23, 24

and 25 of plaintiffs complaint but deny all other allegations.

12. Concerning paragraph 35 defendants state that only Atlas Capital had an obligation

to repay any debt, to Ms. Johns and Mr. Wilson, and admit that Atlas Capital has not repaid the

principle investment as set out in paragraphs 23, 24 and 25 of plaintiffs complaint but deny all

other allegations.

13. Concerning paragraph 36 defendants admit that starting in October 2007, Atlas

Capital stopped paying Mr. Johns interest payments, but deny all other allegations.

14. Concerning paragraph 38 defendants admit that a promissory note has not been

provided to Mr. Johns, but for lack of knowledge deny all other allegations.

15. Concerning paragraph 40 defendants admit that the principle funds loaned to Atlas

Capital by Mr. Johns, Ms. Johns and Mr. Wilson have not been returned by Atlas Capital, but

deny all other allegations.

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16. Concerning paragraph 41 defendants admit only that Atlas Marketing agreed to pay

off the balance of Mr. John’s American Express card and deny all other allegations.

17. Concerning paragraph 42 defendants admit that only Atlas Marketing has failed to

pay off the balance on Mr. John’s American Express card and deny all other allegations.

18. Concerning paragraph 43 defendants that only Atlas Capital is liable for any

amounts complained of and deny all other allegations.

19. Concerning paragraph 44 defendants that only Atlas Capital is liable for any

amounts complained of and deny all other allegations.

20. Concerning paragraph 45 defendants that only Atlas Capital is liable for any

amounts complained of and deny all other allegations.

21. Concerning paragraph 46 defendants state that only Atlas Marketing is liable for any

amounts complained of and deny all other allegations.

22. Plaintiff’s complaint fails to state a cause of action against Wade Sleater, Atlas

Communications Group, L.C. or Atlas Ventures.

23. Atlas Marketing Group, L.C., filed a Chapter 11 bankruptcy on January 15, 2008,

Case No. 08-20225, and this action is stayed by the automatic stay of 11 USC §362.

24. Defendants are entitled to an offset against any claim of JEFF JOHNS for any

amounts counter claim plaintiffs are awarded against JEFF JOHNS pursuant to their cross claim.

Wherefore defendants pray that judgment be entered only against Atlas Capital and only

for the amount found owing at trial and that the complaint be dismissed and plaintiff take nothing

against Wade Sleater, Atlas Marketing Group, L.C., Atlas Communications Group, L.C. and

Atlas Ventures.

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CROSS CLAIM

Comes now cross claim plaintiffs and as a cross claim against JEFF JOHNS, allege as

follows:

24. JEFF JOHNS solicited, obtained the funds, and received a commission on the funds

obtained from SHIRLEY JOHNS and KENNETH WILSON complained of in plaintiff’s

complaint.

25. JEFF JOHNS is jointly and severally liable with any of the cross claim plaintiffs

found to be liable pursuant to any cause of action complained of by plaintiffs SHIRLEY JOHNS

or KENNETH WILSON.

26. Cross claim plaintiffs are entitled to judgment against JEFF JOHNS for any amounts

for which cross claim plaintiffs are found to be liable to SHIRLEY JOHNS or KENNETH

WILSON.

Wherefore cross claim plaintiffs pray for judgment against JEFF JOHNS for any

amounts for which cross claim plaintiffs are found to be liable to SHIRLEY JOHNS or

KENNETH WILSON.

DATED: March 25, 2008.

/s/ Ronald George

Ronald George, attorney for defendants
cross claim plaintiffs

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CERTIFICATE OF SERVICE

I certify that on March 26, 2008, the foregoing was served VIA/ECF as follows:

Adam D. Ford
Daniel A. Decker
210 N. 1200 East #200
Lehi, UT 84043

/s/ Ronald George