Demand Letter Goals

Demand Letter Goals#expandContractAll updated: 20 Apr 2020

Preferred Outcome
Having had a close relationship with Ted Foley, the Defendant has important knowledge relevant to the second lawsuit (K2000-ELSco lawsuit). Therefore, the Plaintiff would like to achieve a settlement with her in which she "switches sides" and cooperates in the prosecution of the K2000-ELSco lawsuit.
Unfortunately, despite several pleas from the Plaintiff and her two sons, she has repeatedly rejected their invitation to join a unified "Team Family" and help prosecute the K2000-ELSco lawsuit .
Given the failure of that softer petition, the Plaintiff proposes the following approach:

Express to the Defendant the Plaintiff`s Intentions to assert claims and seek damages in a Civil Lawsuit
- Assertion of Claims
  Inform the Defendant that, in a civil lawsuit, the Plaintiff is pursuing the following claims... EXPAND CONTRACT
  - MISUSE OF CHILD-SUPPORT COLLATERAL SHARES
    The lawsuit claims that the Defendant breached an important 'property division' mandate related to the couple`s Child-Support agreement by misusing the 50,000 K2000 collateral shares that the plaintiff had reserved to cover his child-support obligation.
  - FRAUD
    The Plaintiff further makes the claim that the above breach meets the required legal elements of fraud ... EXPAND CONTRACT
    With respect to injuries incurred by the Plaintiff, the deceptions underlying the Defendant`s fraud took the form of her secretly violating the written terms of the collateral established by the Plaintiff to cover his child-support obligations, and instead using the collateral to enter into a Conversion Deal with Ted Foley to acquire Efficient Learning System`s shares, and to subsequently hide her actions from the Plaintiff.
    This fraud represents an egregious violation of the couple`s child-support agreement driven by the Defendant`s dishonest goals for realizing a double financial benefit from 1) the accrual of the Plaintiff`s child-support debt for over a decade in addition to 2) the value appreciation of her fraudulently-acquired Efficient Learning System`s shares.
    The fraud enabled the Defendant to achieve both of these goals.
  - PLAINTIFF`S OWNERSHIP OF EFFICIENT LEARNING SYSTEM`S SHARES
    With respect to the above-mentioned Conversion Deal in August 2006, the Plaintiff claims a legal right to the title of the 23,500 Efficient Learning System`s shares that the Defendant received in that deal.
    The plaintiff makes this claim on the following basis... EXPAND CONTRACT
    Based on the Defendant`s explicit acknowledgement in an email to Ted Foley on 9/23/2012, the Plaintiff asserts (and the Defendant acknowledges in that email) that the "conversion" of the collateral shares was the central premise upon which the Conversion Deal was based (see Central Premise ).
    This is inspite of the Defendant`s later claim in 2017 that the Efficient Learning System`s shares she received in that transaction were a gift and that therefore had nothing to do with the collateral shares.
    AND
    
    From the analysis of Plaintiff`s Title to the Child-Support Collateral Shares claim presented in the "Child-Support Breach" webpage, the Plaintiff claims that it was he, and not the Defendant, who was the owner of the 50,000 K2000 child support collateral shares at the time of the Conversion Deal transaction;
    AND
    
    The Defendant`s acquisition of the 23,500 Efficient Learning Systems shares involved a fraudulent use of those 50,000 K2000 Child-Support collateral shares;
    THEN
    
    Because the Defendant received the 23,500 Efficient Learning Systems shares based on her assumed title to the 50,000 K2000 Child-Support collateral shares (that were actually owned by the Plaintiff at the time), then it was not the Defendant, but the Plaintiff who can claim legal title to those shares; a claim which aligns with the fact that all other K2000 shareholders were the owners of the K2000 shares that they had "converted" to Efficient Learning Systems shares in the original Share Exchange Deal.
  - SUBVERSION OF THE CORNERSTONE PREMISE OF THE PROPERTY DIVISION AGREEMENT
    The Plaintiff further claims that the Defendant`s deceptive actions in carrying out the above fraud subverted the cornerstone good-faith negotiation premise of the 'property division' section of the couple`s Child-Support agreement.
    Accordingly, the Plaintiff will pursue a complete reassessment of the couple`s property division formula.
- Damages Sought
  Inform the Defendant that the Plaintiff is seeking the following damages... EXPAND CONTRACT
  - PROCEEDS FROM SALE OF THE DEFENDANT`S 23,500 EFFICIENT LEARNING SYSTEMS SHARES
    The plaintiff claims rights to the proceeds from the sale of these shares
    ... $103,127 ($89,676+$13,451)
  - INTEREST ON THE DEFENDANT`S PAYOUT
    In addition to the proceeds from the Defendant`s sale of the 23,500 Efficient Learning System`s shares, the Plaintiff seeks damages for the accumulated interest on these proceeds.
    Because the acquisition of those Efficient Learning Systems shares was the booty of a fraud committed by the Defendant which denied the Plaintiff the use of those funds from 2012/2014 to the present, the Plaintiff will seek damages equal to the accummulated interest over that time period.
    
    $93,289
    ... Total Interest from Dec 2012 to Dec 2019 ($174,753+$21,663-$103,127)
    Monthly Interest in 2020
    ... Approximately $1700 per month [see table]
    Basis for Interest Calculations...EXPAND CONTRACT
    The interest sought is calculated on the following basis:
    
    2012 Principal + Interest
    $174,753 (calculation basis... EXPAND CONTRACT)
    
    Principal ... $89,676
    
    Interest Rate ... 10%
    
    Start Date ... 1st December 2012
    
    End Date ... 1st December 2019
    
    Calculated Principal+Interest =$174,753
    
    2014 Principal + Interest... $21,663 (calculation basis... EXPAND CONTRACT)
    
    Principal ... $13,451
    
    Interest Rate ... 10%
    
    Start Date ... 1st December 2014
    
    End Date ... 1st December 2019
    
    Calculated Principal+Interest =$21,663
    
    2020 Monthly Interest (calculation basis... EXPAND CONTRACT)
    
    Principal ... $196,416 ($174,753+$21,663)
    
    Interest Rate ... 10%
    
    Start Date ... 1st December 2019
    
    End Date ... Court Decided
    
    Monthly interest during 2020 calculated from the following table... EXPAND CONTRACT
    ...EMBED FILE: 2020MonthlyInterest.pdf
  - COMPLETE REASSESSMENT OF THE COUPLE`S PROPERTY DIVISION
    The Plaintiff will pursue a complete reassessment of the couple`s property division formula. In particular, the Plaintiff will seek:
    Title to the house at 285 El Camino Grande
Inform the Defendant that, in addition to prosecuting the above litigation, the Plaintiff is resolved to include the Defendant as an additional defendant in the K2000-ELSco lawsuit.
In that lawsuit, the Plaintiff will make the claim that the Defendant played a critical part in assisting Ted Foley to fraudulently eliminate the Plaintiff`s (and her sons') financial interest in K2000`s Business Assets.
The Plaintiff will further claim that this conspiracy was based on the following deceptive actions by the Defendant that meet the legally required elements of fraud.
- Hiding of the Conversion Deal from Plaintiff to Prevent Discovery... EXPAND CONTRACT
  The Plaintiff will claim that the Defendant was bound by the collateral terms explicitly indicated on the share certificate of the 50,000 K2000 Child-Support shares provided to her by the Plaintiff.
  The Plaintiff will further claim that the Defendant had an obligation to report to the Plaintiff (and the Arizona Division of Child-Support) any action or decision that would materially deviate from those terms.
  The Plaintiff will further claim that the Defendant chose to ignore those terms, enter into the Conversion Deal with Ted Foley to use the collateral shares to acquire Efficient Learning Systems shares, and to collude with him to hide that deal from the Plaintiff (and the Arizona Division of Child-Support).
  Effective Blocking Strategy
  The Plaintiff will further claim that the Defendant and Ted Foley both knew that the Defendant would be using the shares contrary to the "collateral terms" stipulated on both the Child-Support Share Certificate & Usage Mandates and the Reservation Order.
  
  The Plaintiff will further claim that they both knew that the Defendant would be committing a fraud against the Plaintiff and therefore she would need to hide it from the Plaintiff.
  
  The Plaintiff will further claim that the Defendant knew that it was imperative that she not engage the Plaintiff on any matters related to the conversion of their sons` K2000 shares, knowing that it would lead to her perfidy being exposed.
  
  The Plaintiff will further claim that the Defendant`s actions resulted in the effective blocking of the "Defendant-Plaintiff Communication Avenue" against the discovery of both the Child-Support Fraud and the Share Elimination Fraud.
- Hiding the elimination of the Plaintiff`s (Sons') interest in K2000`s business assets... EXPAND CONTRACT
  The Plaintiff will further claim that as stated here, the Defendant knew that the Plaintiff had transferred his K2000 shares to their sons in 2002.
  The Plaintiff will further claim that at the very latest by 2012 when the Defendant received the ELSco-JohnWiley Stock Purchase Agreement governing the sale of Efficient Learning Systems to John Wiley & Sons, she would have realized from reading the included Capitalization Table that the Plaintiff`s (sons') K2000 shares had never been "converted" to Efficient Learning Systems shares, and therefore their financial interest in K2000`s business assets had been eliminated.
  The Plaintiff will further claim that the Defendant also knew that the decade-long sales growth of K2000`s primary products had been triggered by the Plaintiff`s internet marketing project in 2002, well before the expropriation into Efficient Learning Systems of K2000`s business assets in 2003, and that therefore the fact that her own sons had no Efficient Learning Systems shares would have been highly suspicious, at least enough so as to warrant a thorough enquiry with the Plaintiff as well as with Ted Foley.
  The Plaintiff will further claim that, nevertheless, the Defendant decided not to contact the Plaintiff to seek answers to how their sons had been cut out of Efficient Learning Systems entirely.
  The Plaintiff will further claim that the Defendant`s motivation was to protect against the discovery by the Plaintiff of the Share Elimination Fraud.
- Nonfeasance with respect to the Initiation of a claim ...EXPAND CONTRACT
  Indemnity Claims
  The Plaintiff will further claim that the Defendant received the ELSco-JohnWiley Stock Purchase Agreement governing the sale of Efficient Learning Systems to John Wiley & Sons, and was therefore aware of its Indemnity clause of potentially valid claims by those K2000 shareholders who had not participated in the 2003 Share Exchange Deal. [The only K2000 shares that had not been "converted" were the Plaintiff`s original K2000 shares (51%) that the Plaintiff had transferred to his sons]. $3.5M was set aside to cover such claims with payout delayed by two years until 2014, presumably to allow some time for such claims to emerge.
  Cognizant of Unconverted Shares
  The Plaintiff will further claim that from the ELSco Capitalization Table contained in that agreement, the Defendant knew that none of the Plaintiff`s (sons') K2000 shares had been converted to Efficient Learning Systems shares. And therefore she knew that owners of those shares (the Plaintiff`s/sons`) were eligible to make a claim against that $3.5M held in escrow until 2014.
  Failure to Investigate or Take Action
  The Plaintiff will further claim that the Defendant failed to take any action to investigate why the Plaintiff`s (sons') K2000 shares had not been converted to Efficient Learning Systems shares, nor did she precipitate any claim for her sons against that escrowed $3.5M. Initiating such a claim successfully would have necessarily required contacting the Plaintiff to gather the exact details of the transfer of the Plaintiff`s K2000 shares to his sons.
  Reluctance to Risk Exposure
  The Plaintiff will further claim that the Defendant contacting the Plaintiff with such a request would have immediately exposed the Share Elimination Fraud when the Plaintiff discovered that his sons owned no Efficient Learning Systems shares (when they should have been the majority shareholders of Efficient Learning Systems).
  The Plaintiff will further claim that her contacting the Plaintiff would also have exposed her perpetration of the Child-Support Fraud.
  The Plaintiff will further claim that in order to protect herself against being exposed, the Defendant chose to maintain her allegiance to Ted Foley`s goals of protecting against discovery 1) of his perfidy with respect to the expropriation of K2000`s business assets, and 2) of the elimination of the Plaintiff`s (son`s) stock interest in those assets.
  The Plaintiff will further claim that this deliberate nonfeasance provides compelling evidence of the Defendant`s complicity in a conspiracy^*** with Ted Foley. It resulted in the Plaintiff being unaware of the availability of making a claim. Thus, the Plaintiff and her own sons were significantly injured by being denied a multi-million dollar inheritance while she was guaranteed of a second payout of ~$13K paid from that escrowed $3.5M in 2014.
  The Plaintiff will further claim that this shocking act of betrayal provides further evidence of her deliberate decision to block any information that could result in the Plaintiff`s discovery of the Share Elimination wrongdoings.
  The Plaintiff will further claim that the Defendant believed that it was more important to her to protect herself against potential discovery rather than enable her sons' to receive a multi-million dollar payout.
  
  ^*** The Plaintiff intends to prosecute the Defendant in the K2000-ELSco lawsuit for her participation in this conspiracy.
Offer to the Defendant the Following settlement terms
The Plaintiff`s governing motivation for both this lawsuit and the K2000-ELSco lawsuit is to win the Plaintiff`s and Defendant`s sons` rightful inheritance from the sale of Efficient Learning Systems.
Accordingly, the Plaintiff extends to the Defendant an offer with the following settlement terms...EXPAND CONTRACT
- The Defendant to make the following settelments:
  - THE PROCEEDS FROM SALE OF THE 23,500 EFFICIENT LEARNING SYSTEMS SHARES ...$103,127
    Make this payment to Mathew and Anthony Walker, split equally between them ...2 x $51,563⁵⁰
  - THE INTEREST ON THE SALE ... $93,289
    Make this payment to an escrow account purposed to supplement the Plaintiff`s legal fund for prosecuting K2000-ELSco lawsuit.
  The Defendant to take the following action:
  - TRANSFER THE TITLE OF 285 EL CAMINO GRANDE IN THE FOLLOWING PROPORTIONS
    
    Mat Walker ... 49%
    
    Anthony Walker ... 49%
    
    Jonathan Walker ... 2%
  The Defendant to make a good-faith commitment
  
  TO COOOPERATE WITH THE PLAINTIFF, MAT WALKER, AND ANTHONY WALKER TO PROSECUTE THE K2000-ELSco lawsuit .