Incognito Coffee Alternative Corporation ("Incognito") was a soy coffee company founded by SP&H client Mr. William Richert ("Plaintiff"). After founding Incognito, Mr. Richert invited his chiropractor and friend, Dr. Ronald Marinaro, to join Incognito as his partner. Subsequent to learning Mr. Richert’s secret formulas and business plans, Dr. Marinaro and his best friend Mr. Jeffrey Dash misappropriated Incognito’s identity, strategy, and product and seamlessly transferred them to his own entity called Rocamojo, Inc. ("Rocamojo" or the "Business"). In the process of growing Rocamojo into a multi-million dollar business, Dr. Marinaro discarded Mr. Richert entirely from the Business.

Aided by Johnson & Rishwain LLP ("Johnson & Rishwain"), Mr. Richert charged Dr. Marinaro and Mr. Dash ("Defendant") with Breach of Contract, Breach of Fiduciary Duty, and Fraudulent Concealment, amongst other wrongdoings, and sought damages for Mr. Richert’s losses as a result of the acts of Dr. Marinaro and Mr. Dash.

SP&H was retained to:

SP&H assembled a team consisting of Mr. Nevin Sanli, ASA, President, and three experienced analysts. SP&H’s analysis found inconsistencies between Rocamojo’s financial statements and its income and expense ledgers, which highlighted possible fraudulent activity. We also discovered numerous non-operating expenses that were inconsistent with what the Defendant’s claimed to be a "failing" business. This analysis proved to be crucial during Mr. Neville Johnson’s direct-examination of Mr. Sanli as well as in his cross-examination of the opposing expert.

The case was tried in front of a jury in the courtroom of the Honorable Judge David Minning, Department 61 of the Los Angeles Superior Court. Dr. Marinaro called witnesses including the owners, employees and experts for Rocamojo, Inc. The Plaintiff called Mr. Sanli as an expert witness to opine on the issues of business value, viability and related damages. After the jury found Dr. Marinaro and Mr. Dash had engaged in fraudulent activity, the Plaintiff, once again, called Mr. Sanli as an expert witness to opine to their personal net worth as a basis for awarding punitive damages. The Defendants were not forthright in providing information pertaining to their net worth as many of the financial documents contained inconsistencies or were completely lacking. Nevertheless, Mr. Sanli was able to calculate the Defendants’ net worth, proving again that the Defendants’ actions were fraudulent.

After presenting our findings in court, the jury found that Dr. Marinaro and Mr. Dash had engaged in fraudulent actions and that Dr. Marinaro had breached his fiduciary duty and partnership agreement with Mr. Richert. The judge ruled that the Plaintiff could not seek a 50% interest in Rocamojo and only monetary damages could be awarded. To compensate Mr. Richert, the jury awarded him in excess of $6,500,000 in damages.

Further, as a result of the Defendants’ fraudulent activities, the jury found that Mr. Richert was entitled to an award of punitive damages in the amount of $8,000,000 against Dr. Marinaro and $250,000 against Mr. Dash.

SP&H’s detailed research and thorough documentation, complimented by Mr. Sanli’s comprehensive testimony, aided Mr. Richert in receiving justice. As one juror stated,

Stay tuned for an upcoming two-hour MCLE presentation on this case. For questions on the William Richert vs. Marinaro et al. case, please contact Mr. Neville Johnson, Mr. Brian Rishwain or Mr. James Ryan of Johnson & Rishwain LLP, at (310) 826-2410; or Mr. Nevin Sanli of Sanli Pastore & Hill, Inc. at (310) 571-3400.