Professional Documents
Culture Documents
OF NEW MEX]CO
TY OF BERNALILLO
ruDICIAL DISTRICT COURT
Tracie Laahty
Piaintiffs,
Case No.
D-202-CV-2014-O2490
indivi
Defendants.
;;;;;il;;;;il;*"
ro,io*us
S,
Willis,
as trustees
Car:r.ie S.
Willis,
Willis
Managemerrt, LLC, Tirnothy J. cooney, cooney & Associates, hrc., Golden Rule,
Bond h
ttnents, hrc. doing business as New Mexico Title Co., JTB Development pr-oper-ties
3,
I,I,C,
JJ
l.
Nerv
Plafurtiffs Joseph C. Lee and Thetesa K. Lee (the 'Zees') are residents of the state
of
7.
Otr infonnation and belief, Tirn Cooney for and on behalf of tl're Lees fonned the
t C. Lee Reai Estate IRA, LLC, a Colorado limited liability cornpany, lvhich, at times rnaterial
action rvas orvned in rvhole or in part by them (the'Ze e LLC' or inconjunction rvith the Lees
'iffr"),
3,
\YAS A
ident of the state of Nerv Mexico and tesided in the Eleventh Judicial Distrtct of the state
Nerv
of
idsnt of the state of Nerv Mexico, resided in tlre Elevctrth Judicial Dishict of the state
of
in
Nerv
a
rvas dissolved
civi actiotr conlnenced in the Eleventlt Judicial Dishict, On information and beliefi presentiy, she
isa
5,
On infomration and bclicf, Dcflenclants l3obby Willis and Carrie Willis are the trustees
of the
obby L.
arrd
'ie
i.
Mex
that Bobtry
Willis
l,luutgenwil") is a Nerv
lirrtited liability colnpany organized by Bobby Willis and, at lirnes material to tlus action,
was
irnplerrrenf ir:g
t'e
7.
8'
fhe la
'esicletrt
)'
Rule
atrcl
it
i'
as Golden Rule,
LLC (,,Golclett
seryed
Bobby
willis's
and
ego and
e,tity
of desig.ing a'd
11
prev
Bobby
0'
Willis
'litle co,
willis
arcl carrie
'
minimal
ol cond
tbL i
in an ttnsaf'e aud injurious lnarilrer iu violation of the Nerv fuIexico Title insurancc Larv, $$
59A-
Stat.
t. $$ 58-22-
and t
et seq. (1978)
(the "Title Itrsur(mce Lat+,"),the Nerv Mexico Escrou, Company Act, N.M,
Act.
12.
On February 10, 2012, the state of Neiv Mexico sued Bobby Willis, Ca*:ie Willis,
JJ
101
BobbyWillis
et al,, CaseNo.
tltin
that Bobby Willis, Canje Willis, JJBond, and Goldel Rule lrad conducted a title insnrance
and
business in an uilsafe and injurious lllannel in violation of the Title hrsurance Law, the
Escro
13.
Finat
By oldel entered otr Aprll 25,2012, Juclge Rayrrond Ortiz irr the FID Case granted the
al hrstilution I)ivisioit's applicatiou for a receivel and placcd Nerv Mexico'fitte Co.'s
arrcl
14.
tiabili
belief no valid u'rittett operating agtectncnt cxists fol JTLI 3. Upon infbrmation
tla
of JTB 3 as a tllarlager
or'
of the corrpany. Cooney, Bobby Willis and Carrie Willis uscd JTB 3 as tlieit alter ego and
fol
purposes
ions lhat are the subject rnatter of the clairns at issue herefur.
15,
ty company organized by Cooney, Upon infbrrnation and bclief; no valid rvritten operating
exists for JTB
and Can'ie
Willis
have
Willis and Carlie Willis used JTB 4 as thcir aitel ego and nourinec ftrr purposes of <lesigning
and
plementing the real estate inr.eshnents and olhel tlansactious tlrat are the subjcct mattcr oftlte
clai,
at issue herein.
1
6.
Venue for this action in this judicial district is propel under N. M. Stat.
Am. $ 38-3- I
18,
tJpon infblnration and belicf, Bobby Willis pursuecl discussions rvith Dr. Garncr itt
2009 Hc replesented to Dr. Garnel that he coulcl clesig* au "iuvesftnent prograDr" for hirn, that he
had a
mbel of "good inveshnents" that rvete suiiable for hirn, solicited his interest in investing in
the
lIl
solici
ions, I3obby Willis replesented to Dr, Ganrcr that the Vetet'aus Adrninistration pt'oject
consi
lltese
hospi al and associated private medical clinics, assisted living facilities, and related residential and
19.
Upotr infoltttatiott arrd belief, in thc coLu'se of tirese discussions Bobby Willis
rted to Dt', Ganlcr tlrat he ltad become rvealthy tluough his entrepreneurial efforts, that lris
rveal
and e{forts in the lirtrrre to philantluopl,, and tliat he rvanted lo use a portiorr of his rvealtlr to
ber
hini fol the lest of iris lifc, tlrat lre irrten<led to devotc his busipess
old, infirttt, and disabled vetet'atts, otlier disaclvantaged pelsous, arrd Nativc Arnericaris by
,irlg the Kirtlaud Project attd to diversify thc oi[-and-gas econolrly of San Juan
County by
tirtg its tax base and creating thousands of new jobs for the area.
20'
Dr. Lee was first intloduccd to the defendant Bobby Willis tll'ough Dr, Canrer in
wiili
\Villis
zurcl
that
Kirtland Project consisted of constructing public and private facilities for operating
Lt 2010, Defendanls, individually and tluough the Good offices of Dr. Garner;
r)lorleY ti'om the
them that
r
il1CO1
Lecs. Itt 2010, Bobby Willis lepresentecl to Dr. Garnel and tlie Lees,
if Dr. Carler
aucl
ol their
producing properties and other investments that rvould deliver a "consistent lz%I.efum".
The in
plojec, ilt San.Iuan County, and proposed that Dr. Gamerand Dr. teeparticipatein thedevelopment
of vari
rnedical lines of business including participation as an investor irr the medical businesses
deib,da,ts
22'
Bobby
that
willis
i,
wiris
a,cr trre
willis
represe.ted
the
7s%
I, year fiftee,,
23'
'
A*
tnade
'
of
i,
in
the
issued.
Mexico
thc federal
go,c,u,c.t
prirl'
rvithi. Nerv
Kirtla,d project,
28,
Each of these additional r'eptesentations and assurauccs \vas fulse and material and
Willis tuade eaclt oltltetn for the lrulpose of inducing the Lees to entrLrst their assets to him
for i
trent,
29,
Iti reliance on these misrepresentations and false assul?nces, the Lees agreed to irrvest
the
Sept
30,
Bobby Willis recomrnended to Dr'. Garnel tlrat he engage defendant Cooney to assist
31.
Bobby
\Yillis
estate
iu Nerv Mexico arrd Colorado, aud expert irr mauagiug tax-deferrcd rcal estate exchangcs aud
O\Y
sucir
changes,
32.
ed
defendarrt Crq.A,
Ilc.
ist" recogtrized
Ne'rv
trr:1ow11 as
as a
tax-defened exchange
33.
Bobby Willis and Cooney further rcprcsented that Cooney was certified by the IRS as
34.
The Lees rvere also re-assured by the fact that Dr. Garneu rvas using Cooney.
35'
Willis attd Cooney recommended that to implerneril the "investrnent prograrn" an individual
account should be opened at a bank iu Durango, Colorado aurl BobbyWillis and Cooney
use tlte funds fiorn this accouttt to invest in JTB 3 to acquire real estate for tlie "investrnent
,)
36.
Each of these additional replesentations and assul"nces was false and rnaterial and
each
to him for investrnent. The falsity of these representations did not becarne appare*t to the
Lees
il
about the middle of 2012,when Dr. Gamer called Dr. Lee ancl saicl "let's meet."
3'1.
"iil
*rJ
AdditionallS Bobby Willis artd Cooney recomrnended that the real estate in the
Lee
38.
a Colorado
3,
In late August 2010, Cooney furnished the Lees rvith an operating agleeurent for Lee
39.
('o
e.v
The operatitrg agt'eettreltt pror,ided tlrat Cooney Real Estate Lrr.estments, LLC
il]al
Lee
aud
.aged by Coottey and seryed as Cootrey's altel ego and nourirree fbr purposes of'assisting
LLC. Ott infottnation and beliel; at all times rnaterial helcto, Cooney LLC rvas oryneil
Bohb Willis with the desigrt, implemetrtalion, and rnanagernent of the Lees' "inveshnent prograrn"
alrd
40,
bet
hr Augr.rst 2010, Cooney also flrndshed the Lees rvith a r]lanilgenleut ageetrtetit
Coorrey LLC and Lee LLC. A copy of the nranagement agleement is attached as Exhibit B.
have the sole and exelusive rlght to manage tlte Properly (Real Estate and Other Non-
Trad ional Investments) in Lee LLC by, arnoilg other things, executing docutnents uecessary for
g, selling, and maintairring the real estate investments transacted through Lee LLC and
ing reuts from the rental of any such real estate, rvhich such rents 1vele to be deposited into a
uew'
vidual retirement account at a barrk in Durango, Colorado knorvn as lst Southwest Bank
("1s/
ilhwest IRA') for Lee LLC and into a separate demand deposit account at the sarne bank
("1s/
the
Account") for the Lees' beneflt, The agreement provided further that
as
tiorr for seruing as rnanagsr, Cooney LLC rvould be paid an "annual asset fee" of "A.25o/o
of
'htyest Bank
et value of all assets acquired for [Lee LLC] payable qualterly in afl'ears." The rninimurn
I asset fee rvas set at $500.00. The agreernent also provided that Cooney LLC rvould charge a
:y managernent
42.
Reiying on Bobby Willis's and Cooney's claimed expettise and tiusting that the
lolls rveie sound, at Cooney's direction and with his guidance irr or about late
43,
On
201 0, Coorrey
3.
{Irtd, Cooney
l0
nt of JTB 3, rvhich specified that the Lee LLC rvas a 5o4 urernber in JTB 3.
JTB
44.
and had
full porver to act on behalf of JTB 3 in all rnatters ircluding executiou of agrcernents
The purpose of .lTB 3 u,tls to acquire, develop and rnanage leal property,
and
Ott infonrtatiott artd belief, tlre articles of organization for iTB 3 rvere t'iied on
45.
9,2010,
46,
nt,
IRA
a custodiarr
of tire Less
Cooney told the Lees to hansfer their retirement funds into his accouut because
at l"tSoutlnvest Bank,
47.
, LLC
accouut allegedly
48.
,
5olo
purch
49.
i LLC
account allegedly in consideration for the IRA rollovel costs in conjunction rvith the
of the
50.
5olo
I* or about lhe sutnmet' of 20l2,tlte Lees first Ieamed tlrat Bobby Willis and Cooney
and etnbezzled the erttilety of their S1,001,145.21 investrnent, rvhich the Lees
11
51.
that
igr
a
Prtor to the rniddle of 2012, the Lees rvere beirrg teassurcd prirnarily by Dr. Gamer
ir investrrent rvas doing ivell. The Lees requests to attend the JTB 3 amrual meetiugs rvere
The Lees \vel'e uever notif-red of any anrtual meetings to attend, despite Cooney's clairn that
52.
Willis, Cooney aM Cooney, LLC have failed to returl the Lees' $1,001,145.21.
The Defendants' Property Transactiotts
53.
cond
di
Willis
teckless
C&A, Inc.,
Rule, JJ Bor:.d, JTB 3 and JTB 4 as rnero alter egos to thetnselves, artd as such, the coufi
also disregard the corpot'ate fornr of all of these eutities.
54.
On infor:nation and belief the follorving pruperties, inler alia,were at the rrratel'ial
orvned by Bobby
Willis, Golden Rulg JJ Bond, JTB 3 aud/or JTB 4 of rvhich the I'}laintiffs
arr iuterest:
a.
a tract
b.
of land irr San Juatt Couuty located on County Road 6446 ("CR6446 Tract");
tract of land itt San Jnau Couttty located otr Couttly Road 6500 (CR6500'l't'ucl");
a
rl,
il
re
peltaining to a 1:aroel
1^
of real estate located at 20 Road 6335 in Fruitland, and (iii) a parcel of leal estate
locate<i
"
e.
,r
D
l.
uililGt|lg
);
f.
propelties located on West Oak Street in Bioornf-ield, Nerv Mexico ("Oak Street
Renlal Proper4l'),
55.
Upou infonnation and belief on ot about May 21, 2010, Bobby Willis, tluough arr
ief, for the entire CR6446 Tmct, Bobby Willis paid $354,380.
56.
One-
as
Upon infonnation and belief, Bobby Willis aud Cooney closed the sale of the CR6446
27 ,201 0
millio
57.
C
2010
rvhich Garnet' LLC conveyed the CR6446 O*e-Third h:terest back to Golden Rule.
58.
Upon irtfonuation and belief, on or about May 21,2010 Bobby Willis and Car:'ie
IJ
59.
as
rranagingmenrber ofthe
knorvn as '*Golden Rulg LLC" subsequently signed a rvamanty deed dated July
27
,2010 by
60,
tluou
61,
Nov
Nor
Upon information and belief, Cooney, subsequently signed a rvan:anty deed dated
4, 2010 try which Loman LLC conveyed the Cline Video Property to JTB 4,
62.
alrd
Uport infonnation and belief, on or about April 14, 2010, Bobby Willis, acting
as
ithout Dr, Garner's ot Mrs. Lornan's knorvledgo, subsequeutly sigrred a wananty deed dated
4,2010 by rvhich Lomau LLC conveyed the Fruitland/Farrnington Property to JTB 4,
63,
Upon infonxation and belief, Bobby Willis and Canie Willis in their nominal
as co-trustees
LLC,
of
LLC and u,ithout Dr. Ganter's knorvledge, subsequently sigued a wallauty deed dated
ber' 4, 20 i 0 by
64.
which Garner LLC conveycd the Oak Street ltental Plopelty to JTB 4,
On infbrmrttion and belief, Bobby \\rillis and Carlie Willis acquired a Michigan
Building. Otr information and belie[ the Michigau Office Building is cun:ently owled by
r Rule, and is subiect to the receivership order irr the FID Case.
65.
Upou infonnirtiort and beliefi the flurds plovided lry the I-ees rvcrc used in part to
14
67,
On ilformation and
68,
es'
$ 1,00 I ,145.21
to the
STATEI\{trNT OF CLAIIUS
Count I
of
Ficluciary Duties]
[Breach
69.
70.
71.
TIte Lees lepeatedly requestcd infotlratiorr legarding thc status of theil investrneut
201
a
to the
Lees
artd
2012, l'he Lccs also rcquested to attend arry ureelings of the conlpalty in u4rich they
perceutage. Horvever, neithel Bobby Willis nor Cooncy supplied any specitic inlbntratiorr
regarding the ureetings or horv theilfunds were beirlg invested, In January of 2012, the
reassut'ed by
Dr. Camer that theil ittvestmeut rvas safe and sound and that they had not
72.
fiduci
By actirrg and failirrg to act as alleged herein, Bobby Willis and Cooneybleached their
dLrties,
73.
rr cornper)satory damages
74,
or,
Couut II
[Conversion]
their'
1n
75.
76,
n use or
reckl
for the use ofothels iu concett rvith thern money belonging to the Lees and Lee LLC
atnount of at least
77
as alleged
1,000,000.00.
Bobby Willis
ar-rd
as
Exhibit F,
disregard of the Lees aud Lee LLC's rtghts, title, and intelest in and to lhe rnonies,
Count
III
IFrauclJ
78.
79.
By acting and failing to act as alleged herein, Bobb1,\\Iiltis and Cooney fi.audulently
the Lees and Lee LLC to enltust tlte surn of $1,001,145.21, or such other amount to be
at trial, to them for iur.estrnert.
80.
suffer'
Bobby Willis's and Cooney's fi'aud proxirnately caused the Lees and Lee LLC to
81.
Bolrby Willis atrd Coottey rlefiaucled the Lccs and Lee LLC intentionally
or',
ii,ely, rvith reckless disregarcl of their duties to the Lees and Lee LLC.
Count IY
Securities
Sales Practices]
[\Yrongful
82.
83.
By acting artd liriling to act as allcgcd hcrcin, Bobby Willis and Coouey employed a
schetne or artifice to defi'aud" the Lees and Lee LLC rvithiri the rneaning of tlte Nerv Mexico
r6
84,
JL,.
ding lvithin the meaniug of the New Mexico Uniform Securjties Act, N.M. Stat. Ann. $ 58-
l(B),
85.
By acting and failing to act as alleged hercin, Bobby Willis and Cooney engaged in
ices or a coul'se of business, rvhich operated as a fi'aud or deceit upon the Lees and Lee
acts,
LLC ithin
the meaning of the Nerv Mexico Unifonn Securities Act, N,M. Stat. Arur, $ 58-13C-
s01(
86.
the
Bobby Willis's aud Cooney's rvrongful secudties sales practices proxiuately caused
87,
Bobby Willis aud Coouey deflauded the Lees and Lee LLC intentionally or,
tively, rvitli reckless disregard of their duties to the Lees arrd Lee LLC.
Count \/
Investmcnt
Advisory Practiccs]
IWrongfirI
oo
uo.
89.
By acting and failiitg to act as alleged herein, Bobby Willis and Cooney engagecl in
the
ttess of pr'oviding the Lees and Lcc LLC rvith invcstrncnt advicc unlarvflllly nndcr thc Ncw
Mex
90.
Byacting and failing to act as alleged herein, Bobby\Yillis and Cooney employed
"dcvi
scltetne or artifice to deh'autl" tlte I-ees aucl Lee LLC arrd otherlvise cngaged irr acts,
practi
, and coutses of cotrduct tltat opelatecl as a fi'aud or deceit upou the Lees aud Lee LLC
t7
u,it
91.
58-13C-502(AX1) ancl-(2),
92'
ss
at trial,
Bobby Willis attd Cooney deflauded the Lees ancl Lee LLC intentionally or,
tiveiy, u'ith reckless clisregarclof theil duties to the Lee.s ancl Lee LLC.
Count VI
[Unfoir Praetices Act Yiolations]
93.
94.
By acting and failing to act as alleged irelein, Bobby Willis ancl Cooncy knorvilgly
thlse or misleading oral or u,ritten statelnents and other representatiorrs ancl rnacle tfueur rvit6
disregard for their huth in connection with the sale of investrnent advisory services in their
legul
95,
placti
The acts and failutes to act as alleged hercin constifute unfair or deceptive trarle
within the meaning of g 57-t2-2(D) of the Nerv Mexico unfair practices AcL
96.
By acting and failing to act as alleged lrerein, Bobby Willis and Cooney
also
uuconscionable trade pt'actices rvithin the rneaning of g 57- 12-2(EX1), -(2) of the Nerv
Mexi
abiti
Urtfair Practices Act by takirtg advantage of the Lees' and Lee LLC's lack of knou,ledge,
cxpcricncc or capacity to a grossly unfair degrcc.
q7,
under
-57-
Bobby Willis attrl Coottey are liable to the Lees autl Lee LLC for actual clamages
heari
98.
Bobby Willis and Cooney are liabie to the Lees and Lee LLC for treble darnages
l8
Count YII
Abetting, arttl Concerted Actionl
Aiding
and
Conspiracy,
[Civil
99.
100. All
rvith, and gave substantial assistance to one auother iu furtherance of tlreil comnon plau ot'
and aided and abetted each other in commission of the wilongs alleged hereirr.
101.
The purpose and effect of such common plau or design rvas to defraud the Lees and
the othet'lylot1gs
Lee
to breach Bobby
as all
herein by depriving the Lees and Lee LLC of the rnonies at issue hetein and to profit fiorn
such
102.
other,
oln
As co-conspirators and
concertrvith tlte
of defendants is liable to the Lees aud Lee LLC for the rvrongful conduct of the others as
hereirt.
Count VIII
[Racketcering Act Violations]
Coor
103.
104.
By acting arxl faiiing to act as allegetl ltet'eitt, Bobby Willis, Carlie Willis,
cngaged in a patterrr of
and
105.
the Lees and Lee LLC to suftbr compertsatory dauages irt att aLtttlttrtt to be established at tt'iai,
19
106'
the
aud Lee
LLC for actual datnages anrl treble damages uncler N,M. Stat, Arur.
30-42-6(4).
Count IX
[Breach of Contract]
107.
108'
Bobby Willis and Cooney agleed to fumish to the Lees ancl Lee LLC
the services
of
09'
10,
as alleged herein,
irrtentio
t.
Bobby rffillis and Cooney breached theit agreernents rvith the Lees ancl Lee LLC
aucl Lee
Count X
[Constnrctive Trust]
LLC
as
12.
13.
Upon infonnation attd belief, defendants used money belonging to the Lees and Lee
20
FruitlandiFannington Properties;
E.
F,
1i4,
The Lees arrd Lee LLC are entitled to imposition of a corrstructive trust on each of
ies, fo1 theil [enefit, to secure payrnent of the amouttts due to thern,
15.
funpositiol of the constructive trust for the benefit of the Lees upon these properties,
rvith riority over the interests of defendants in such property, is ttecessary to prevent defendarrts'
emichrnent.
Count XI
[Accounting]
116.
Ll7,
In the circunrstances presented, tlie Lees and Lee LLC are entitted to
complete and
accounting in detail of all the Inoney they enhusted to Bobby Willis and Cooney.
Entry of judgment in their favor attd jointly attd severally against defeudants for
nsatoty damages in au amount to be pl'oven at trial, plus prejudgmeut andI posdudgrnent
thereort to the fullest exteut pennitted by New Mexico larv, plus costs;
B.
Entry of judgrnetrt in their favor and jointly arrd severally agairst defendants for
damages
C'
puniti'
'
Errtry ofjudgrnent in their favor aud jointly and sevemlly against defendants
for tt.eble
'
of
,'e,Jar$s'
plainti
the rcal estate and other putchase transactiots at issue herein and a refurrr
to such
of the illolley they paid, plus prejuitgrnent and postjudgrnent interest thereon
to the fi.rllest
extent
.
arvard
Entry ofjudgtneut in their favor ancl jointly and sevelally against defen4alts
for
lal,
plus costs;
Entry ofjudgrnent in their favor aud jointly and severally against rlefendants for
a1
5s-l3c-s0g(BxI),
(c), -(F l), the Unfair Practices Act (N.M. Stat. Ann. g 57-12-10(B), and the Racketeering
Act,
30-+2-
ad
proper.
22
April 8,2014
"Electronically fiIed"
/s/ Paul Melendres. Attorney at Larv
Melend.res, Melendres & Hauigan p,C.
l0l7 sth Streer NW
NM B7t0Z
(s05) 243-83 I 0 / fax Z4j-92T l
paul@nelendt'eslarv. com
Albuquerque,
23
"t-
OPERATING AGBEEMENT
JOSEPH C, LEE RtrAL ESTATE IRA, LLC
A Colorado Llmited Liability Company
The undersigned, Joseph C. Lee IRA, as sigilatory to this Agreement, does lrereby
enta'into this Operating Agreement, at Durango, La Plata Coturty, Colorado, effective
this l 9th day of A.ugusti 201 0, under the name style of JOSEPH C. LEE REAL ESTATE
IRA, LLC, a Colorado Lirnited Liabififf Company, (the "LLC').
T
Inkoduction
The party has this day formed a limited liability company for the sole purpose of
orvning real estaie and other non-traditional investrnents in their Self-Directed IRA with
l'r Southwest Bank, Druango, Colorado.
II.
Place of Business
The priacipal place of bus,{ness of the LLC shall be 33 Invemess Place, Durango,
Colorado 8l 301, or other such address ts 'rvhiah the business may from time to time bo
moved.
IU.
ry.
Purpose
The purpose ofthe-LlC ls to buy, sell; lease ald develop real propertry and
perform prqperty management for its membef. These fimotlons wilt be performed in the
United Slates of America.
.tr,{embor
Plrur*uer.
EXHIBIT
fi
"A"
v,
Rigbts and Duties of ihe.Member
'
of
the LLC.
u.
Costs and Expenses
LLC.
VII,
Debt
The indebtedness, if any, for the property acquired by the LLC shall be in the
name of the LLC,
VIH.
Meetings
The Member and Man*ger, as defined in Section IX below, shall meet annrrally to
a$sess the function and uso of the LLC. The arurual meeting shall be lreld on the second
A special meoting of the member and
Monday of January, begiruring rvith year 20I
properly
is
and
as
be
recorded
acquired and sol<l by the LLC.
manager shall
held
i.
ix.
Managoment
Management of said LLC shall be by Cooney Real Estate Investments, LLC,
(Manager). AII duties reqnired to be perforrned to accomplish the purposss of the LLC
shall be performed by the Manager, inclrrding exeouting docuraents necessary to buy, sell
and maintain real estate and olher non-traditional investments.
\r
Books
The LLC books shall be mai,niained at the office of ihe Mauager at 33 Invemess
Place,Durango,ColoradoBl30l. Thebooksshallbekoptonacalendaryearbasisand
ffi**ru
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lnsuritrce
to be plaoed on
Duriitg the holding of the acquired qqPedy, all insuranco lequired
LLe i* the oity, ooulty and state the
rtre acquir*d property shail be in the nam* of riru
properiy is located,
xII,
Death of Mernber
of
ln the everrt oftho deelh of a member,lhe executor or personal representative
the mernber shall continue with tlro management of the LLC'
the day and
IN W]TNESS WHEREOF,lhemembers have hereunto set th+ir hand
year fust above written
JOSEPH C. LBE IRA
__
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pr/osePh C\Lee
Wle{nber. *-
Timotliy
,R+
J.
Cooney
Of ?:fr,,*.r:*0, f.(o
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) ss;
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tU"
aay
Notary Ptrblic
My Commission
Srral
Expires; )1torroi
vo, zotT
of
1'rr'
' : :
ATEOF COLORADO
cbuNrv oFLAPLATA
ss:
hs&*dav
My CommissiouExpires;
seal
+/rt/e,r<,
of
20i0, by
4+n4'
LI"C'
@En@s,
ffi
@zoro
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Ormcr).
WHBRBAS, Owner has acqulred tbe properli desoribed as SEB EKHIBII'uA"
,TTACHED, the Property in lhe narao of Jbseph C, LeeReal Estate IRA, LLC, and
WIIEREAS; Mdhager has agleed to mariage the Properfy upon and subject to lhe
and provisions hereof,
W,.IIIEI{EFORE, for and in consideratjon of the prer:tises and the mutual covenants
i
l:enefits herein set forth, Owner and Ma:'rager agtee that durilg the term of this
rment, Manager sirall bavo the sole atrd oxclusivo right to manage the Property,
I.
mutual co1,en&ntsi
Managcmenl:
Orvrrer $atts to Managcr the solo anrl exclnsivB right to perform atl the dutres of
Matrager herein specified. Martager agrees to urrdertake the resportsibilities to
perfornr all the drrties required to be performed to accomplish the pwposes of the
Orvner, including sxecufing docume.pts neoess&ry to btty, sell and maintain tho
Properfy. 'Iho Manager wilL receive finy lent from any rental of the Properly and
pay the neoessary expenses of the Property,.included bu[ not limited to, taxe$,
insurance, mirintenance, mofley managernont fees and proporfy ntanagemeni fees
(not to be a d*ry of Manager).
The books shall be kept on a calendar yearbasis and shall be closed and balanced
rrt the encl of eaoh calendar year. Ali finanoial statements-ilrd 16;a peturn$ shirtl bp
prepared and EIed as req-uired by larv, All necessary reporting to l'{ Southwest
Bark, Durango, Colorado, inoludirrg valuation, will be promptly fiIed, Quarterly
Qa{=
o,*.,
_]vlanager
Brrying Agent
*.P)"
2. Terml
The initiai term of this Agreement shall commurco on the d*te hereof and shall
terminate rvith the sale of thePrqperty, This Agreemerrt may be termilated by
eifher party for any reason u6:on thirty (30) dayp prior written notice to the other
party.
3.
10.00o/o
incuned"
All
4,
Govcrr:iug Law:
VL
o,r,,*,
Managur
Buying Agent
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5.
Owner and Matrager herehy renoun0o thc sxistsncB of any form ofjoint venfurc
or padnership beflveen them, and a$ee thai rtothing corrtained herein Or irt arry
document executed in conirectibn herewith shali be oonstrued 8$ making Manager
and Owrrer joint verEuers or parkrers,
6.
Modific.ttion or Tenrtinationl
7. Tottl
Agrecment;
This Agreement is s total and completo integtatiorl of any and all, undertakings
regarding management existing botwoon Mdnager atd Orvner and zupersedes alry
prior oral or ntiften agle$rnetrts, promi5es or rs,pteserltation$ betrveen them. Ths
headings ofthe vario*s paragraphs ofthis Agreenretrt ar6 for eonvenionce only,
and shall not define, irrteqprot, affeol or prescribe tho msaring arrd interpretation
of the provisions of ihis Agreement.
(Jrvucr:
I
I
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Managen
LLg
33 Iriveraess Place
Duralgo, Colorado
B1
301
By:
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Ir
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sf
S{},{,.il,ttlt'jtil
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s First
WV
t'riilrfiry l'
Account#.
c[1.1,=LE&___ RBeffi ---
/ Pnyment Itrfornration
Numt
Ltst
Nrtme
]r4crnbcrshio in LLC
Purposo of Fayment (c.g., "Mr:mbcrship in
er
2. Fundi
_vI
Instrucf ions
WnUi ot'
VIA Check
inc,lutlc.t, but
first
i
Sortlh
rrclud i ng
subjcct to tlll
and Fcdcrai
Amount
Routirtg ll
Olhtr Inst
I agrcc lo
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# 65610?495
Account Nn
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or'
Bank NRnrc:
3, Autlrot
s900-00q
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-Actcunt
ti6n
llfivesl Bftrrl(,
payment. 'l3tis
c. indunrrriff, ricf+ur[ and holtt First Southrvest Bank harmless I'or nny clnims rrrislng oul olthis
nnd agrcc
undsrsts[d
l_nlso
or
prtl(L'n(,
proper.
tega1,
div$slficd.
pftyrnefit
not
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nor limired io, claims
ro defatrtl'
no,ix itlfr noi bc r"sponsibf" ,i,-inr.r'"ni a.tior rt'rnuiO tHi- in*+itment noled hcrein bucome subject
'Ihe Payrncn{ nnd Ftrrxling ltlstrt}clions.aro,furlhcr
inr.iu.rry, tontrupily, or other coun oi,jer nr lcgal process,
rvith
First Southrvest []ank nntl irll npplic*blc Slate
{rgrceo}cnt
and coirditiorrs oftirc nccouuthotrler'sct,stodial
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the Account
lloldcr
Datll:
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rtgtert
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irrsolvcrtoy.tlartliruplcl,,rrrurircr0orrttorrl+rorlcgtl pruucss. t'hcl'itytttultlantl {rtlittJitlp, lttis{lilr'liortsuclitrllrcr
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nR-q Fayrnent and F ttnding trustructions
1. Accou
*i>o+ N*na,
lta\lorrAk
Narne
ol
(1.c,, namo of
],te'
YIA Check
,r.
r.{-{-zt
Amoultt
Insfmcfions
\YIRE or
@keT@p
Account #
or ,r'-Wlrter
Otrice Transfer
Roudug #
BflnN Narflo!
^+ecount# cqslt
Account
l$'s 49$
L\c*
Otber
0B must be sutborizeit by tbo Acrguntholdcr, Buyiug Agcnt and Asset IlIauager for tLe'rtcouot ou file
3, Auth
Benlc
\Yltn I rrst
Ftrsl
lncludiag
subje+t to
t agree to
include\ but
a1l
ald Frdcral
Dare: { 4'
OfEce Us Onlv:
Proeess byi
Trau Codel
Approverl try:
EXHIBIT
b
n
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ao'l
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t soLrth\,\'dst BanK
rmoga . Cn[er r Del Norie ' Corle:
rango . Saguache . Pa9o5a SPri.rg$
PO Box
720 tvlain
71
055
8t67'1
'H C, LEE
ffi
&asg&
01/01/10 runu
,,,,
RA
SAVINGS
NUI}IBER ...TERI'I
,,,
i/TARKET VALUE
I,IATURITY
.00
REDEEFlED
ase"{@D
noi,
R CONTRIBUTION
(+)
INT
PAID TN.2O1O
{+)
TO ANOTHER
(-i
SOURCE
CREDITS
DEBITS
DESCRTPTION
'
.,
3-
,]-45 ,2L
,145 ,21
00
.00
ACCOUNT
INCOMfNG
1, 000, 000 . oo
1, 000, 000.
DEBTT TRANSACTIONS
OTH
ACCOIINT
TYPE
rzl:l/ro
PAGE
ROIJLOYER
A,t'IER
II.ITEREST
DATE
BAL.ANCE
oB/04/La
IRA TD
1000000.00 oB/Le/Lo
1145.2r oe/3A/10
l-,000r000,00
tO/25/to
101,145,21
s-t/ts/to
L,L45,?.L
72/2't /10
.00
7L45,2L
EXHIBIT
!.EJ].
x-
Member FDIC
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