2018 12 14 Complaint Peterson V Burke United States Court District of Massachusetts
2018 12 14 Complaint Peterson V Burke United States Court District of Massachusetts
Plaintiff Jeffrey Peterson, for his complaint in this matter, upon information and
1
PRELIMINARY STATEMENT AND BACKGROUND
“BURKE”) who was formerly the United States Attorney for the District of
including several whom are known for participating in social and political group
Times newspaper as the “Arizona Mafia”,2 including but not limited to Defendants
Marco A. Lopez Jr. (“Lopez Jr.”), Victor Flores (“Flores”), Mario E. Diaz
certain members of whom are affiliated directly or indirectly with Defendant the
1 Background is provided about former U.S. Attorney Dennis BURKE's historical political
relationships and professional activities as Plaintiff's history with key members of the United States Democratic
Party are included amongst material facts that form the basis of this Complaint.
2 "Napolitano’s years at Homeland Security pay dividends for ‘Arizona Mafia’", Arizona Capitol
Times, by Jeremy Duda, July 19, 2013. "Being part of the massive entourage that Janet Napolitano brought with her
from Arizona to the Beltway has been a great career move for some of her loyalists."
2
2. Defendant BURKE, characterized within this Complaint as the group
leader of the Retaliatory Campaign, was formerly employed by the United States
Department of Justice (“DOJ”) as the United States Attorney for Arizona under
3. BURKE quit his post as United States Attorney after tendering his
Holder was questioned why the Fast and Furious weapons trafficking had
3 Background is provided about former U.S. Attorney Dennis Burke's previous political scandal,
as it is an essential part of Plaintiff's story. This background is necessary to explain events leading up to problems
that ensued between BURKE and Plaintiff Jeffrey Peterson throughout their business, social and political
relationship that lasted more than ten years, starting approximately 2003 through present day.
4 See: "Judge rules against Obama on 'Fast and Furious'", thehill.com, by Harper Neidig, 01/19/16
02:05 PM EST. Retrieved December 10, 2018. "U.S. District Court Judge Amy Berman Jackson ordered the
administration to release documents that it has been attempting to withhold by asserting executive privilege.
Operation Fast and Furious was launched by the Bureau of Alcohol, Tobacco, Firearms and
Explosives.
The gun-running operation, which lasted from 2009 to 2011, resulted in the ATF losing over a
thousand firearms ... [t]wo of those weapons were linked to the 2010 murder of a Border Patrol agent in Arizona ...
Many of the weapons are suspected to have landed in the hands of Mexican drug cartels."
3
General James Cole chastised BURKE for "lying....and for leaking."5 BURKE was
subsequently censured and fined by the Arizona Bar for misconduct in March of
2014. 6
under 44 and A.G. Holder, due to the Fast and Furious scandal in which weapons
were trafficked to Mexican drug cartels,8 BURKE began working with Lopez Jr.,
5 See: "Report faults former U.S. Attorney Dennis Burke for Fast and Furious leak", politico.com,
by Josh Gerstein 05/20/2013 01:28 PM EDT. "The report says Deputy Attorney General James Cole concluded, a
couple of months before Burke's resignation, that Burke had lied to him. Cole said he chastised Burke for
"lying....and for leaking."
Burke declined to speak with the IG's investigators, who could not compel him to do so because
he no longer works for the government.
"Mr. Burke’s refusal to cooperate with the Inspector General’s investigation shows me that he
didn’t operate in good faith. His actions are indicative of this administration’s willingness to attack whistleblowers
who cooperate with Congress and show the administration’s commitment to undermine legitimate congressional
oversight," Grassley said in a statement.
6 See: Agreement for Discipline by Consent: Burke, Dennis; Bar # 012076, Arizona Judicial
Branch, reference no. PDJ-2014-9028, March 27, 2014. In connection with the disciplinary proceedings, BURKE
admitted to violating the "Integrity of the Profession", in a Attorney violation involving "dishonesty, fraud, deceit or
misrepresentation;" Rule 42, Ariz. R. Sup. Ct., specifically ERs 1.6 and 8.4(c).
7 Defendant BURKE, during his lengthy career serving interests of the United States Democratic
Party, was employed as a Senior Policy Analyst for the White House Domestic Policy Council during the Clinton
administration. Source: ballardspahr.com, Attorney Profile for Dennis K. Burke. Retrieved December 10, 2018.
8See: "Judge rules against Obama on 'Fast and Furious'", thehill.com, by Harper Neidig, 01/19/16
02:05 PM EST. Retrieved December 10, 2018. "The gun-running operation, which lasted from 2009 to 2011,
resulted in the ATF losing over a thousand firearms ... Many of the weapons are suspected to have landed in the
hands of Mexican drug cartels."
4
who now serves as a consultant to a members of the controversial9 Salinas political
("CSG").10
BURKE and others in an effort to silence and harm Plaintiff, who has significant
knowledge about BURKE and others within his Group of Former Colleagues, due
with parties specified throughout this Complaint during a time period of more than
ten years.
been carried out by BURKE and certain members of Plaintiff's Group of Former
Colleagues and other persons since 2014 when, among other things, a long-
9 See: "Family Tree - Carlos Salinas | Murder Money & Mexico", pbs.org, FRONTLINE.
Retrieved December 10, 2018. "Carlos Salinas de Gortari was president of Mexico from 1988 to December 1994.
He was the ruling PRI's candidate in the election and many believe he won through fraud. Currently living in self-
imposed exile in Ireland, he left Mexico fearing he might be charged with the murder of his chosen successor Luis
Donaldo Colosio.
Carlos [Salinas] is extremely unpopular in Mexico where he is blamed for a decreased standard of
living, economic difficulties, the rise of the drug trade and the massive corruption that occurred during his
administration. While some credit Salinas with important reforms and beginning privatization, many Mexicans
blame NAFTA - passed under Salinas - for Mexico's economic problems."
10 See: "Family Tree - Carlos Salinas | Murder Money & Mexico", pbs.org, FRONTLINE.
Retrieved December 10, 2018. "... [regarding] U.S. Justice Department witness testimony in its lawsuit against
Mario Ruiz Massieu. The witnesses implicate ex-president Carlos Salinas de Gortari, his siblings Adriana and Raul,
his father Raul Salinas Lozano, and his ex-brother-in-law Jose Francisco Ruiz Massieu in drug trafficking
operations. Includes documents/notes on witnesses testimony.
...In the version advanced by the Justice Department, the more than nine million dollars seized
from Mario Ruiz Massieu's account at the Houston Commerce Bank are proceeds from the sale of drugs to be
laundered by Mario Ruiz Massieu on behalf of Jose Francisco Ruiz Massieu."
5
Plaintiff, certain members of the Plaintiff's Group of Former Colleagues and other
11. Throughout the Retaliatory Campaign, BURKE has, through his own
efforts and by leading others, engaged in acts and caused defamatory statements to
be made with intent to, among other things, permanently damage the reputation,
the founder of the first Social Network to trade on a national stock exchange in the
United States.11
more defamatory news articles meant to improperly cause harm to Plaintiff were
Harris and published by the Arizona Republic newspaper and the azcentral.com
website with knowledge of falsehood; therefore, inter alia, this Complaint seeks to
11Plaintiff Jeffrey Peterson was the original founder of the first nationally branded Hispanic Social
Network in the United States, Quepasa Corporation, in 1998. See: "Quepasa", wikipedia.org. "In 2010 and 2011,
several media publications reported that Quepasa was the "only publicly traded social network"[20][21] meaning
Quepasa was the only Social Network trading on a Stock Exchange at that time.
Later in 2011, an article claimed that following its Initial Public Offering on May 4, 2011, Renren
became the first publicly-traded social network.[22] Yet at the time of RenRen's IPO, Quepasa was already a well
known publicly traded company with over 30 million[2] users on its social network that had been operating since at
least 2006.[23]
This is especially noteworthy as the Initial Public Offering for the best known Social Network in
history, Facebook, was Friday, May 18, 2012, a year after RenRen's IPO. If these historical dates prove correct,
Quepasa may have been the first Social Network to go public and trade on a Stock Exchange in history."
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remedy defamatory statements that were made with actual malice.12
further BURKE’s own interests and the interests of certain members of Plaintiff's
(a) That BURKE and Lopez Jr. were engaged in significant business,
12 Although the legal concept of actual malice may be recognized differently by Massachusetts law
than the laws of other states, it is an important component of Plaintiff’s case, therefore, the distinction is made
throughout this Complaint.
13 See: "The 10 Most Corrupt Mexicans Of 2013", Forbes Magazine by Dolia Estevez, Dec 16,
2013, 02:40pm. "In the group’s Global Corruption Barometer of 2013, Mexico’s political parties, police, legislature
and judiciary were perceived as the most corrupt, with 91%, 90%, 83% and 80% negative views on corruption … In
Mexico corruption cases are rarely prosecuted.
…(continued) Raúl Salinas de Gortari is largely responsible for destroying his brother Carlos
Salinas de Gortari’s presidential legacy by becoming a symbol of corruption and impunity. Raúl spent ten years in
jail convicted of a high-profile political homicide, but was acquitted in 2005. In July, a Mexican judge exonerated
him on the final charge pending against him of “unlawful enrichment” and ordered $19 million dollars deposited in
twelve bank accounts and 41 properties be returned to him. The decision outraged Mexicans. It was perceived as one
more proof of abuse of power by Mexican elites."
7
Carlos Salinas de Gortari, a former President of Mexico (“CSG”);
(b) That BURKE and Lopez Jr. have earned significant revenue by serving
"the Mexico-PRI"), the Salinas Parties and senior political figures in the United
States, including political figures associated with the United States Democratic
and BURKE were friends, regarding BURKE’s involvement in the Obama-era Fast
(d) That Defendants BURKE, Lopez Jr. and Plaintiff had previously
(e) At the time the December 14, 2017 Arizona Republic news article was
associated with BURKE, Lopez Jr., the DNC and persons associated with the
Mexican PRI political party, known as the “NXIVM Cult” scandal, a Racketeer
Influenced and Corrupt Organizations Act (RICO) case currently pending in the
United States District Court for the Eastern District of New York14 (hereinafter
14 USA v. Keith Raniere, aka "The Vanguard", Case no. 1:2018-cr-00204, Criminal Docket No.
18-204 (S-1) (NGG) (VMS), filed 04/19/2018, E.D.N.Y. Retrieved via PACER on 12/10/2018.
8
referred to as the “NXIVM Case”). The Retaliatory Campaign was intended by
former mutual friends and business contacts of Plaintiff and BURKE in the legal,
involvement with the NXIVM Case from public view. BURKE, mindful of the
advocacy of various parties in connection with the NXIVM Case, hopes to limit
(f) That Lopez Jr., who is a close business associate of BURKE, has, for
many years, been planning to eventually run for public office in his own political
his many years of friendship with BURKE, Lopez Jr., and significant political and
business personalities in both the United States and Mexico, is familiar with the
intricacies of such arrangements, namely how such a future political campaign may
15 See: "Ex-'boy mayor' of Nogales takes vital border slot" Arizona Daily Star newspaper, by
Carmen Duarte, Mar 2, 2009. "Before I hit 40, I want to be governor of Arizona," said López."
9
Campaign against Plaintiff, is with intent to improperly impair Plaintiff’s ability to
have a public voice with respect to the facts and circumstances captioned by this
sub-paragraph (f).
Colleagues have engaged in, among other acts, the following improper activities
was investigated by the FBI and indicted in May of 2017,16 accused of taking
16 See: " Ex-AZ Corp. Commissioner ... indicted on bribery charges." azfamily.com. By Morgan
Loew and Derek Staahl, May 25, 2017. " Former Arizona Corporation Commission member Gary Pierce is accused
of soliciting roughly $400,000 in cash and property ...
The indictment states that Pierce “knowingly and willfully, solicited, accepted and agreed to
accept money, ultimately totaling $31,500, and solicited real property valued at approximately $350,000, from
defendant JAMES FRANKLIN NORTON, a retained lobbyist ... knowingly and willfully, solicited, accepted and
agreed to accept money”
17 on July 17, 2018, it was reported U.S. District Court Judge John Tuchi had declared a mistrial
(b) Among other acts, Defendant BURKE, working together with Defendant
with actual malice. The December 14 Article has caused significant disruption and
emotional distress in Plaintiff’s personal life and has harmed Plaintiff’s reputation
(c) Defendants, during a period of time reaching back as far as the year
2014, have, upon information and belief, made numerous defamatory statements to
members of the domestic and international business community, to the media, and
to mutual colleagues, among others, such as the repeated statement Plaintiff was
BURKE and Lopez Jr. authorized such payments themselves with their respective
Board of Directors votes taken at a duly authorized Board meeting while both
Defendants BURKE and Lopez Jr. served on the Board of Directors of the subject
18 See: " Ex-Quepasa head Jeff Peterson faces questions about investors' money", Arizona
company.
stating, for example, that Plaintiff had “fled,” one of many mischaracterizations
spread by BURKE throughout the Retaliatory Campaign with intent to create the
(e) Such improper disparagement of Plaintiff has been done throughout the
ultimately to scare parties away from doing business with, or engaging in any way
with Plaintiff.
Plaintiff, acting in concert with certain members of the Plaintiff’s Group of Former
Colleagues, has intentionally engaged in improper acts and has intentionally made
(g) for the Enrichment of BURKE and others; The improper actions have
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been undertaken by Defendant BURKE, certain members of the Plaintiff’s Group
advance the current and future economic and business interests, and political
(h) to aid BURKE's agenda of concealing the Truth; The improper actions
Campaign, to help conceal current and historical acts of BURKE, Lopez Jr., and
other persons, certain which are allegedly affiliated with 42, the DNC, and/or the
money laundering, currently pending in the United States District Court for the
Complaint.
Government Prosecutor with the DOJ and the State of Arizona,19 has, utilizing his
19 Defendant BURKE, amongst other positions with Government agencies, was employed
previously by the office of Arizona Attorney General as a prosecutor, under Attorney General Janet NAPOLITANO,
from 1999 to 2002. Source: ballardspahr.com, Attorney Profile for Dennis K. Burke. Retrieved December 10, 2018.
"[BURKE] served for four years at the Arizona Attorney General's office, primarily as the Chief Deputy Attorney
General."
13
investigate Plaintiff, Plaintiff’s business colleagues and/or Plaintiff’s principal
business, regarding alleged violations of laws that Defendant BURKE knew never
desperate and misguided effort to forcibly and improperly engage Plaintiff with the
Government Prosecutor with the DOJ and the State of Arizona, has, utilizing his
his business, with alleged violations of criminal laws that Defendant BURKE knew
way possible.
17. As of the date of filing this Complaint, despite the desperate efforts of
Plaintiff has never been charged with a criminal violation, other than minor traffic
violations, in any American state, territory, or for that matter, in any country, in his
entire life.
18. This Complaint states claims for Defamation (Count One), Intentional
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Five), Breach of Fiduciary Duty (Count Six), Civil Conspiracy (Count Seven),
THE PARTIES
an American Citizen who is also a legal resident in the Greater Toronto Area
21. Defendant Marco A. Lopez, Jr. (“Lopez Jr.”) is a resident of the State
of Arizona. Lopez is the Senior Advisor to Mexican billionaire Carlos Slim and is
President, Carlos Salinas de Gortari. On information and belief, Lopez Jr. conducts
business throughout the United States, Mexico, and other international venues.
("Borbon") is a citizen of Mexico who resides in the State of Arizona and conducts
20 At present, Plaintiff is registered as a "United States Citizen living Abroad" with the United
resides in the State of Arizona and conducts business activities in Arizona and
Mexico.
24. Defendant Lisa Flores ("Judge Flores") resides in the State of Arizona
and is the spouse of Defendant Victor Flores. Judge Flores is Superior Court Judge
25. Defendant Mario E. Diaz ("Diaz") resides in the State of Arizona and
conducts business throughout the United States. On information and belief, Diaz
26. Defendant Jane Doe Diaz resides in the State of Arizona and is
fictitiously named Defendant who, together with the named Defendants, may be
wholly or partially responsible for liability inducing conduct toward the Plaintiff. If
and when the true name of this Defendant and the extent of their involvement with
regard to the facts that form the basis of this Complaint become apparent, this
Complaint will either be amended, or the Plaintiff will seek leave to amend the
area who conducts business in the Washington, D.C. area and Massachusetts.
16
28. Defendant David Lopez (“Lopez”) is a resident of California who
30. Upon information and belief, Phoenix Newspapers, Inc. dba Arizona
article, were published to the website azcentral.com. Upon information and belief,
electing local, state, and national candidates of the Democratic Party to public
office throughout the United States. The DNC has members and constituents
documents, "the DNC works closely with Democratic public officials and assists
state parties and candidates by contributing money; making expenditures for their
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benefiting Democratic candidates."
33. John and Jane Does 1 - 100, Red and Black Corporations 1 - 100, and
White entities 1 - 100 are fictitiously named Defendants who, together with the
conduct toward the Plaintiff. If and when the true names of these Defendants and
the extent of their involvement with regard to the facts that form the basis of this
Complaint become apparent, this Complaint will either be amended, or the Plaintiff
34. Pursuant to 28 USC § 1332, this court has jurisdiction over Plaintiff’s
claims based on the diversity of citizenship of the parties and because the amount
substantial part of the events or omissions giving rise to the claims occurred in this
1990’s, during the era of the .com technology boom in the United States, Plaintiff
was founder and CEO of the first online community for U.S. Hispanics,
18
widely publicized Initial Public Offering of stock shares on the Nasdaq Stock
Market at a market value of over $200 million in June of 1999, reaching a peak
37. Quepasa maintains its place in history as one of the top bilingual
English/Spanish internet brands in history and as the first Social Network to trade
publicly on a national stock exchange in the United States. The business founded
by Plaintiff, Quepasa, was endorsed by and did business with national and
and actress Jennifer Lopez, who is the daughter of Defendant David Lopez.
businessman and politician Richard L. Scott in 2006 and a corporate name change
to MeetMe, Inc. in the year 2012 and "The Meet Group" in 2017.
39. Quepasa’s new corporate name is the Meet Group, traded on the
Nasdaq Stock Market with symbol MEET and a current market value of
19
General of the state where Plaintiff resided at the time, Arizona.
42. When JN won the 2003 election and became Governor of Arizona,
of the AMC, Plaintiff was introduced to JN’s trusted circle of friends, political
supporters and colleagues, including Defendants BURKE, Flores, Lopez Jr. and
Barr.
44. During the years 2003 - 2008 Plaintiff interacted frequently with
45. During the years captioned above, Plaintiff interacted frequently with
46. During the years captioned above, Plaintiff interacted frequently with
senior members of the United States Democratic Party including certain political
figures within the DNC, including former DNC Chairman Howard Dean
the Former Group of Colleagues to Mexico City. (the "2007 Mexico City Trip")
48. One of the invited guests on the 2007 Mexico City Trip was John
20
Zidich ("Zidich"), who was, at the time, chief executive of Republic Media and
49. Zidich later became domestic publishing head for Defendant Gannett
Co. Inc.22
50. During the 2008 Mexico City Trip, BURKE observed to Plaintiff,
"We [parties associated with JN] have [John] Zidich in our pocket. (sic) The
51. Plaintiff did not think much of BURKE's statements about the
52. While Plaintiff was involved with JN’s circle of trusted political and
referred to throughout this Complaint as “44,” in his bid for President of the United
States.
Defendant Lopez Jr. (who served JN as Director of the AMC at the time), and
21 See: "NAU’s Haeger joins governor to meet with Mexico president." NAU News, February 5,
2007. "members of Gov. Janet Napolitano’s delegation ... will meet with Mexican President Felipe
Calderon this week in Mexico City ... Haeger will travel to Mexico City Feb. 8, 9 and 10 to
participate in discussions about university relations and student exchanges.
In addition to Napolitano and Haeger, the Arizona delegation includes Ben Campbell, chairman
and CEO of JP Morgan Chase Arizona ... and John Zidich, president and publisher of The Arizona Republic."
22 See: "Gannett domestic publishing head John Zidich to retire in April 2018", usatoday.com by
Mike Snider. Published 7:00 a.m. ET Nov. 2, 2017. "Zidich said Thursday he plans to retire April 3, 2018, as
president of domestic publishing and publisher of USA TODAY. Zidich's role at Gannett has involved oversight of
the company’s 109 local media properties and USA TODAY...
Before moving into his current role in 2015, Zidich was chief executive of Republic Media and
publisher of The Arizona Republic and West Group president."
21
other parties, on a private aircraft, from Phoenix, Arizona, to Denver Colorado to
attend the Democratic National Convention. The private aircraft was paid for by
54. On information and belief, the trip from Phoenix to Denver to attend
Lopez Jr., who served respectively as Chief of Staff and Senior Adviser to JN at
the time.
his former opponent, Hillary Rodham Clinton (hereinafter, "HRC"), to be the next
with 44, Defendant BURKE became a member of the Obama Transition Team.
Security Secretary.
59. In March of 2009, Defendant Lopez Jr. was named Chief of Staff of
60. Also, in 2009, Defendant Barr was named Chief of Staff of U.S.
22
61. On July 10, 2009, Defendant BURKE was nominated by 44 as the
62. On August 30, 2011, in connection with the Fast and Furious arms
trafficking scandal under 44 and A.G. Holder, Defendant BURKE resigned his
63. Also, in 2011, Defendant Lopez Jr. resigned his position as Chief of
a trip made while acting in her official Government capacity in Bogota, Colombia.
Homeland Security.
Intermestic as a business.
68. Defendant Lopez Jr.’s consulting business negotiated its first material
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contract with Grupo Carso, the conglomerate of Mexico's best-known billionaire
entrepreneur, Mr. Carlos Slim Helu (“Slim”), with the assistance of Plaintiff.
Gortari (“CSG”).
72. In early 2013, Plaintiff met with BURKE regarding a civil lawsuit that
communications, and sent a printed copy of the lawsuit to the office of BURKE in
sent copies of the lawsuit to investors in his previous company, and other parties.
24
that he had reviewed the entire lawsuit. BURKE observed to Bivens and to
Plaintiff, inter alia, that the lawsuit was "complete", and "well written."
78. At the time BURKE reviewed the lawsuit, BURKE had been provided
with a detailed analysis of substantially all pending legal and business matters in
Bivens.
81. BURKE and Lopez Jr. encouraged a mutual friend who was formerly
Lopez Jr.'s superior at CBP, Alan Bersin, ("Bersin") to become an investor in C1.
82. BURKE and Lopez Jr. told Plaintiff that Bersin would be able to
substantially assist C1, as Bersin was a close colleague of HRC and 42.
83. Plaintiff noted in media reports that Bersin was, in fact, a close
84. Lopez Jr. encouraged one of his business partners, Jim Messina,
("Messina") who was formerly the manager of the 2008 Presidential Campaign for
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44, to join the Advisory Board of C1.
87. Defendant BURKE became the head of the compliance committee for
C1.
89. On May 16, 2013, a telephonic Board Meeting for C1 ("the May 16th
Board Meeting") was held. During the May 16th Board Meeting, a Trademark
License Agreement between C1 and Inter123 (“the TLA”) was authorized by the
C1 Board of Directors with supervision of inside and outside counsel for C1 and
committee.
(“Padilla”) of the California law firm, Wilson Sonsini, Goodrich & Rosati
Padilla was licensed to practice law and was a member of his State Bar, in good
standing.
26
91. The Board Meeting was attended by Attorney Errol Shifman, general
counsel for, among other corporate entities, C1. At the time of the meeting,
Shifman was licensed to practice law and was a member of his State Bar, in good
standing.
92. The Board Meeting was attended by outside counsel for Inter123,
Attorney Damon Ashcraft (“Ashcraft”) of the law firm Snell & Wilmer. At the
time of the meeting, Ashcraft was licensed to practice law and was a member of
93. The Board Meeting was attended by Defendant BURKE, who acted,
among other roles, in his capacity as a member of the Board of Directors of C1,
and as head of the compliance committee of C1. At the time of the meeting,
BURKE was licensed to practice law and was a member of his State Bar, in good
Defendants and Lopez Jr., were provided with Terms and Conditions of the TLA
(the "T&C’s”) by Attorneys Shifman and Ashcraft, who were representing C1 and
presentation by Attorneys Shifman and Ashcraft about the T&C’s of the TLA, the
Board of Directors of C1, including Defendants BURKE and Lopez Jr., voted to
27
96. It was noted by Attorney Shifman, during the vote to authorize the
Trademark License Agreement, that C1 Director Peterson had abstained from the
vote.
Activity.
outside counsel for C1, the California law firm of Wilson, Sonsini, Goodrich and
Rosati ("WSGR").
were made by WSGR with the United States Securities and Exchange
Commission.
BURKE and Lopez Jr. were members of the Board of Directors of C1.
Lopez Jr. introduces Plaintiff to Emiliano Salinas, the Junior Statesman from
Mexico’s most influential political family
28
104. In early 2014, Plaintiff was introduced by Defendant Lopez Jr. to
Emiliano Salinas Occelli (“ESO”), by telephone. Lopez Jr. explained that ESO is
the son of the former President of Mexico, Carlos Salinas de Gortari (“CSG”).
105. Shortly thereafter, in early 2014, Plaintiff met with ESO at the Salinas
106. At the Mexico City Meeting, ESO stated he was the owner of a
start-ups, and that in connection with the Corporate Finance Activity of C1, he
107. Also at the Mexico City Meeting, ESO stated he was involved with a
108. Plaintiff departed the Mexico City Meeting without further discussing
ESP.
109. At the time of the Mexico City meeting, ESO did not disclose to
Plaintiff that ESP was the Mexican branch of a group based in the United States, in
23 See: "Inside the NXIVM Sex Cult’s Secret Plot to Take Over Mexico" thedailybeast.com, by
Amy Zimmerman. September 09, 2018 4:56 AM ET. "...“The group was composed of Mexico City’s elite,
wealthiest, high-society types,” Oxenberg writes. “The children of four former Presidents of Mexico have been
involved with ESP.”
Emiliano Salinas, the son of former Mexican President Carlos Salinas, reportedly led NXIVM’s
Mexico branch. According to Executive Success Programs’ website, Salinas was a member of ESP’s Executive
Board since 2009 and co-owned ESP centers in Mexico City, Guadalajara and Los Angeles.
29
110. Subsequent to the Mexico City meeting, Prorsus Capital invested
$50,000 in C1.
Debbie Stabenow, Plaintiff traveled to Detroit, MI, on March 23, 2014, to attend a
115. At the dinner meeting, 42 asked Plaintiff to explain details about how
... From what I heard from high-ranking defectors, the supposed plan was to get Emi into office in
Mexico’s next Presidential election in the summer of 2018 so that a top-ranking Espian and Nxivm devotee would
have power on the world’s political stage. His father, Carlos, would use his Machiavellian methods to ensure his
son’s election win."
30
"meaningful relationship" with the Salinas parties of Mexico.
event at the residence of Lopez Jr., near Washington D.C., which was also attended
by Defendant Barr.
118. During the social event, Peterson noted Defendants Barr and Lopez Jr.
spoke about "close contacts" each had maintained within U.S. Federal Government
resignations subsequent to BURKE's resignation due to the Fast and Furious arms
119. During the social event, Peterson noted Defendants Barr and Lopez Jr.
spoke, among other things, about their abilities to order such "close contacts"
120. During the social event, Peterson noted Defendant Lopez Jr. was
121. During the social event, Peterson observed when Defendant Lopez Jr.
was speaking with ESO on Lopez Jr.’s mobile phone, Lopez Jr. had mentioned
Bersin.
122. Bersin had previously served as Lopez Jr's superior at the United
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and 44.
123. When Plaintiff asked Lopez Jr. about Lopez Jr.’s conversation with
ESO, Lopez Jr. threatened Plaintiff. Lopez Jr. stated that if Plaintiff were to
disclose the fact to any third party that Lopez Jr. was working with Bersin, ESO
and/or the Salinas Parties of Mexico, “they [the Salinas Parties],” would “kill your
124. After Lopez Jr. made the threats described above, Plaintiff departed
the social event, and proceeded to distance himself from Defendants Lopez Jr. and
BURKE.
125. The threats described above, made by Lopez Jr. to Plaintiff, caused
The Arizona Republic, who Burke had previously stated he had "in his
pocket," provides favorable press coverage of Burke; a Member of congress
criticizes BURKE with respect to BURKE's retaliation against a Fast and
Furious whistle-blower.
126. On March 28, 2014, with respect to the Fast and Furious weapons
article titled "Dennis Burke should've been celebrated, not sanctioned" (the "March
127. In the March 28, 2014 Article, the "editorial board" of the Arizona
Republic tended to defend BURKE, on the one hand, while making certain
observations.
32
128. According to the "editorial board" in the March 28, 2014 Article, with
respect to BURKE's actions throughout the Fast and Furious arms trafficking
BURKE, titled "Bar findings questioned in Fast and Furious reprimand" (the
130. In the April 1, 2014 Article, a member of the United States Congress,
Rep. Darrell Issa, R-Calif., stated, "His [BURKE's] actions to selectively leak a
single document supporting a misleading narrative ... was a cowardly and self-
serving action intended to smear a whistle-blower ... I'm deeply troubled to see him
describe, and have the state Bar apparently accept at face value, the idea that his
effort to retaliate against a Fast and Furious whistle-blower was intended as an act
of 'transparency.'"
131. On June 30, 2015, the ACC filed a Notice of Opportunity for Hearing
("C2"), Justin Billingsley, John Ayers, and Jeffrey Peterson, (the “2015 ACC
132. The ACC has been characterized as a State agency in Arizona that has
33
faced challenges in the media due to possible corruption.
133. The former Director of the ACC was investigated by the FBI and
134. The internal Docket No. of the 2015 ACC Action at the ACC was S-
20932A-15-0220.
136. At the time the 2015 ACC Action was filed, BURKE had previous
137. At the time the 2015 ACC Action was filed, C2 was defunct, having
been previously taken over by a different management group. Plaintiff had not
been made aware of complaints with respect to C2; Plaintiff had not heard about
C2 for years.
C2 was making a $10,000 loan from Plaintiff's personal funds, to C2, to pay legal
to C2, except the $10,000 loan Plaintiff made to C2, captioned in paragraph 138
above.
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140. Plaintiff was named as a Defendant in the 2015 ACC action by virtue
141. In 2015 and 2016, Plaintiff spoke with numerous persons who stated
Defendant Lopez Jr. had made inaccurate, defamatory statements about Plaintiff.
142. For example, in 2016, Plaintiff spoke with the mayor of Phoenix,
Arizona, Greg Stanton (“GS”), who stated Lopez Jr. had made inaccurate,
143. In 2015 and 2016, Plaintiff spoke with numerous persons who stated
144. For example, in October of 2016, Plaintiff travelled from his residence
146. Plaintiff thought the questions emerging from BURKE in early 2017
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were peculiar, because BURKE, in his previous role as head of the compliance
committee for C1, and member of the Board of Directors of C1, already knew the
148. At the time BURKE asked, “What is Inter123,” BURKE already what
Inter123 was, and had known about Inter123 since at least ten years prior.
149. Peterson felt BURKE was asking questions of which he already knew
the answers, part of an attempt by BURKE to create the appearance of doubt and
communications.
above, Plaintiff, recalling threats previously made by Lopez Jr. described under
section VII of this Complaint, and for other reasons, felt threatened by BURKE.
36
leverage his contacts within the Government to cause what were, in BURKE's
prosecution against Plaintiff and Plaintiff's business partner, were causing "unrest"
Michael Silberman (“Silberman”) and that if BURKE needed to make such threats,
it would be Plaintiff's preference that BURKE apply such pressure only Plaintiff,
not Silberman.
prosecution, possibly by BURKE himself, in some way that Plaintiff and his
159. On June 30, 2017, it was announced that the son of Plaintiff's business
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160. Plaintiff sent an email message to BURKE, in which Plaintiff
observed to BURKE, that BURKE's veiled threats had contributed to unrest in the
household of Plaintiff's business partner, and that Plaintiff's business partner had
161. BURKE did not show compassion or caring about the death of
162. The series of events and threats described above, made by BURKE to
163. The series of events leading to the death of the son of Plaintiff's
business partner, and the death of Plaintiff’s business partner as described within
paragraphs 156 to 161 above, caused Plaintiff significant emotional distress and
other harm.
Peterson disengages from BURKE, hires legal counsel in Boston and Phoenix;
BURKE, attempting to improperly create the appearance of "criminal"
circumstances, spreads rumors Plaintiff had “fled”
among other things, asked Peterson questions of which BURKE already knew the
answers, and BURKE insinuated that Plaintiff and/or his business partner would be
subject to "prosecution" for reasons Plaintiff did not understand, Plaintiff was
advised by an Attorney friend it would be wise to stop speaking with BURKE, and
38
that Plaintiff should hire legal counsel to speak with BURKE on Plaintiff’s behalf.
Plaintiff poured over records of communications with BURKE, together with his
168. In Arizona, Plaintiff retained the law firm of Ryan Rapp &
Underwood, lawyers Andrew Pacheco and Chris Rapp, (the “Arizona Attorneys”)
170. After the meeting, Plaintiff's Arizona Attorneys informed Plaintiff that
BURKE had acted “strange” and “highly agitated” during the meeting, that
BURKE stated Plaintiff was “going to prison,” for reasons BURKE could not
39
published by a highly motivated journalist who takes the extraordinary step
of covering the same story twice in the same day
171. On October 23, 2017, during the relevant time period of the
Defendant Harris, with the title “State orders failed internet payday loan venture to
inaccuracies and other defamatory statements about Plaintiff pertaining to the 2015
Harris acting in concert with Defendants BURKE, Lopez Jr. and other persons who
knew, collectively as a group, certain statements were not true. Therefore, it is the
argument of Plaintiff that the October 23 Article was conceptualized and authored
173. For example, the third paragraph of the October 23 Article stated,
174. The statement in the October 23 Article that Plaintiff “is a ... founder
defamatory statement because, among other reasons, the Social Media business
40
founded by Peterson originally known as Quepasa, is not defunct.
QUEPASA COM INC., operated continuously for approximately ten years before
merging and later changing its corporate name in 2012 to MeetMe Inc.
("MeetMe") and in 2017 to The Meet Group, Inc. (“TMG”). The surviving
company is still engaged in the Social Media business and still publicly listed on
176. TMG continues registered with the same SEC filer number today as
QUEPASA COM INC., the company founded by Plaintiff in 1998 and incorrectly
177. The Social Media business founded by Plaintiff Jeffrey Peterson, first
known as Quepasa.com, Inc., now known as TMG, is not defunct, as was reported
a total of 4.87 million active users per day ("DAUs"), with third quarter 2018
prior year. Nine-month revenues for the period ending September 30, 2018, were
41
179. Defendants Harris, Phoenix Newspapers, and Gannett Co. Inc., knew
the statement characterized in paragraph 173 above, that Plaintiff “is a ... founder
because, among other reasons, the Arizona Republic itself previously published
numerous news articles about Quepasa, including articles that followed Quepasa
through its lengthy corporate history, including an article reporting that investor
the Dec. 14, 2017 Arizona Republic Article; continued attempts to criminalize
Plaintiff and the "hope" of bringing additional investigations
180. On December 14, 2017, the Arizona Republic published a news article
titled “Ex-Quepasa head Jeff Peterson faces questions about investors' money” (the
“December 14 Article”).
181. The December 14 Article was intended by BURKE, Harris and others,
who knowingly acted in concert, to create the appearance a crime had occurred;
that Plaintiff was very bad person; ultimately, as suggested by the December 14
Article, a criminal, which has been, ultimately, the long-term objective of the
law enforcement agencies, and somehow, through any means, criminalize the
Plaintiff for the benefit of BURKE and the AZM Defendants as they seek to
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182. In the December 14 Article, numerous inaccurate, untrue statements
were made by one or more Defendants in an attempt to vilify Plaintiff, who was, to
the best of his knowledge, not "facing questions" ... "from investors" as suggested
183. In the December 14 Article, Defendant BURKE stated, inter alia, that
he "was unaware of the [C2] private placement offering until October 2017."
History, by stating, "It's like mentioning Bonnie but not Clyde. (sic)"
board member, said (sic) Peterson has a lot of explaining to do." Furthermore,
Lopez Jr. stated, with respect to the TLA described in paragraph 89 of this
186. In the December 14 Article, Defendant David Lopez stated, inter alia,
"...I thought I could help. After a while, I realized we were being snookered. "
187. Contrary to statements made by Lopez Jr. and BURKE throughout the
December 14 Article, including the statement by Lopez Jr. that "There was never
any mention of money," Lopez Jr. was well aware the T&C's of the C1 TLA
43
Defendants BURKE and Lopez Jr. previously served as directors of C1 and
authorized the TLA themselves on May 16, 2013, at a telephonic meeting of the
WSGR), the General Counsel of C1 and counsel for Inter123. At the May 13, 2013
Board Meeting, BURKE and Lopez Jr. voted to authorize the TLA after
Shifman and Ashcraft, who were representing C1 and Inter123 respectively in their
was the duty of BURKE, a licensed Attorney himself, to be familiar with material
company contracts pertaining to C1. Importantly, Lopez Jr. was provided with
many of the same disclosures as BURKE and at the time Lopez Jr. voted to
authorize the TLA as a member of the C1 Board of Directors, Lopez Jr. was
dealings with Plaintiff and Lopez Jr.'s years of close friendship with Plaintiff.
Article were false, because, among other reasons, he had previously served on the
44
Board of Directors of the subject company and while doing so, Diaz authorized
transactions himself.
189. Defendant Diaz knew his statements were false, because, among other
reasons, as he had constantly been connected with Plaintiff on social media sites
such as Facebook, and never so much as attempted to contact Plaintiff during the
December 14 Article were false, because, among other reasons, he had previously
served on the Board of Directors of the subject company and while doing so,
the December 14 Article were false, as Plaintiff had previously entered in to one or
actress Jennifer Lopez, while Plaintiff was Chief Executive Officer of the original
concert with BURKE and others, authored the following statement at the
conclusion of the December 14 Article: "Investors and some board members plan
45
to turn over the various companies' internal documents, including bank records, to
law enforcement, the Corporation Commission ... and the IRS in hopes of bringing
additional investigations."
business partner received numerous notices that documents had been subpoenaed
196. On March 27, 2018, the leader of a "Cult" group known as NXIVM,
the same group which ESO had invited Plaintiff to join several years prior, as
197. The individual arrested in the NXIVM case is known by the alias,
"The Vanguard."
and others, among other things, of human trafficking, immigration violations, and
46
199. One of the defendants in the NXIVM matter is Clare Bronfman,
more.
201. According to reports in the United States and Mexican media, one of
the key personalities associated with the NXIVM organization is ESO, who
203. The individual conducting the interview was a licensed Attorney. The
Attorney stated he was acting as a liaison between the FBI and victims in the
204. The Attorney who conducted the interview told Peterson the
(a) That BURKE had made phone calls to witnesses in the NXIVM
47
matter.
SUN U.K. reporter, threatening legal action. BURKE, on information and belief,
sent a “Cease and Desist” letter to the SUN U.K. reporter. Furthermore, BURKE,
207. When BURKE contacted the SUN U.K. reporter, BURKE made
Plaintiff, the SUN U.K. declined to run the previously planned story about
Plaintiff.
48
211. On information and belief, BURKE encouraged the lawyer to include
212. In doing so, BURKE acted fraudulently and with an evil mind to
take BURKE at his word with respect to Plaintiff's character and alleged past
were included within the text of official court documents filed as part of WM's
Delaware lawsuit.
BURKE was involved in his own dispute between prior business partners
involving Plaintiff.
Plaintiff would tend to justify the Retaliatory Campaign BURKE had orchestrated
against Plaintiff, to the extent such inaccurate depictions of Plaintiff's character and
past business activities would then be available for citation by BURKE in future
49
215. On information and belief, BURKE did not disclose to WM that
218. Defendant FLORES stated that he didn't care if Plaintiff recorded their
telephonic conversation.
219. When Plaintiff spoke with Defendant Flores by phone, Flores overtly
stated to Plaintiff that Flores knew people in Phoenix, Arizona, who were capable
of murdering Plaintiff.
220. Threats made by Defendants Lopez Jr., BURKE, and FLORES, were
BURKE, and FLORES, and certain other persons are known for participating in a
social and political group related to former United States Homeland Security
Mafia".24
24 "Napolitano’s years at Homeland Security pay dividends for ‘Arizona Mafia’", Arizona Capitol
Times, by Jeremy Duda, July 19, 2013. "Being part of the massive entourage that Janet Napolitano brought with her
from Arizona to the Beltway has been a great career move for some of her loyalists."
50
CLAIMS OF PLAINTIFF JEFFREY PETERSON
Count One
(Defamation - against all Defendants)
Count Two
(Intentional infliction of Emotional Distress - against BURKE, Marco A.
Lopez, Jr., Luis Borbon Holguin, Victor Flores and Mario E. Diaz)
recited herein.
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emotional distress caused by their conduct.
conduct. The conduct described by this Count Two was intentional and/or reckless.
committed intentionally and with an evil mind, therefore the award of punitive
Count Three
(Tortious Interference with a Contract against Burke and Borbon Holguin)
recited herein.
235. Plaintiff had significant contractual relationships with with Lopez Jr.
with Plaintiff's contractual relations with Lopez Jr. and other parties.
237. This interference caused Plaintiff harm both monetarily and to his
reputation.
Count Four
(Tortious Interference with Business Relations against Borbon Holguin, Barr
and Diaz)
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238. Plaintiff restates and re-alleges all preceding allegations as if fully
recited herein.
239. Plaintiff had significant business relationships with Lopez Jr. and
other parties.
with Plaintiff's business relationships with Lopez Jr. and other parties.
241. This interference caused Plaintiff harm both monetarily and to his
reputation.
Count Five
(Retaliation - against all Defendants)
recited herein.
between the conduct and the adverse action. Mole v. University of Massachusetts,
opposed any practices forbidden under this chapter or because she has filed a
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245. As described throughout this complaint, Plaintiff opposed the
practices of Burke, Lopez Jr., and others in connection with the Salinas parties of
247. This interference caused Plaintiff harm both monetarily and to his
severe emotional distress, embarrassment, and the loss of enjoyment of his life.
Count Six
(Breach of Fiduciary Duty against BURKE, Lopez Jr., Diaz, and David
Lopez)
recited herein.
249. Defendants have committed various torts against Peterson that have
caused injury;
250. Barr and Diaz knew that Defendants conduct was tortious; and
251. Barr and Diaz substantially encouraged and assisted Defendants in the
Count Seven
(Civil Conspiracy against BURKE, Lopez Jr., Luis Borbon Holguin, Diaz,
Barr, Harris, David Lopez)
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252. Plaintiff restates and re-alleges all preceding allegations as if fully
recited herein.
Count Eight
(Multiple Damages)
committed intentionally and with the requisite evil mind to permit the award of
multiple damages.
Count Nine
(Punitive Damages)
committed intentionally and with the requisite evil mind to permit the award of
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punitive damages.
RESERVATION OF RIGHTS
amend this and all subsequent pleadings, should future events and/or discoveries
prove that he has failed adequately to comprehend the full extent of the damage(s)
which he suffered at the hands of the Respondents, and other involved parties, both
named and unnamed, now and at all times in the future. See Rules 8, 15, and 18 of
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PRAYER FOR RELIEF
following relief:
determined at trial;
(e) Award Plaintiff court costs, expenses and reasonable legal fees in
provided by law;
Defendants BURKE, Lopez Jr., and affiliated persons to have colleagues shut
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(h) Award Plaintiff such other and further relief, at law and in equity as the
58