Case 8:09-bk-14465-TA Doc 19 Filed 08/19/09 Entered 08/19/09 16:58:03 Desc

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1 ROBERT G. AISENSTEIN, ESQ.

2114 Fountain Springs Drive
2 Henderson, Nevada 89074
Telephone: (702) 897-1438
3 FAX: (702) 896-8868
E-Mail: Aisenstein@msn.com
4
Counsel for Plaintiff: DESERT PALACE, INC.,
5 doing business as CAESAR’S PALACE HOTEL
& CASINO
6 [Pro Hac Vice Admission Pending]
7 UNITED STATES BANKRUPTCY COURT FOR THE
8 CENTRAL DISTRICT OF CALIFORNIA
9 SANTA ANA DIVISION
10
IN RE: ) CHAPTER 7
11 )
) CASE NUMBER: 8:09-bk-14465-TA
12 MICHAEL NAHASS, )
)
13 )
. ) Judge: Hon. Theodor Albert
14 Debtors. )
____________________________________)
15 DESERT PALACE, INC., doing business ) ADVERSARY NO:
as CAESAR’S PALACE HOTEL &, )
16 CASINO , )
) COMPLAINT TO DETERMINE
17 ) DISCHARGEABILITY OF
) DEBT [11 U.S.C. 523(a)(6)]
18 Plaintiff, )
)
19 v. )
)
20 MICHAEL NAHASS, )
)
21 Defendant. )
____________________________________/
22
Plaintiff complains against Defendant and alleges as follows:
23
PARTIES AND JURISDICTION
24
1. This Court has jurisdiction over this adversary proceeding pursuant to Title 28 U.S.C.:
25
Sections 157 and 1334, and General Order No. 266 dated October 9, 1984. This case is a core
26
proceeding pursuant to 28 U.S.C., Section 157(b)(2)(I).
27
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1 2. Plaintiff, DESERT PALACE, INC., doing business as CAESAR’S PALACE HOTEL

2 & CASINO, is and was, at all times relevant herein, a corporation authorized to do business and doing
3 business in Clark County, Nevada, and the holder of an unrestricted gaming license entitling it to
4 operate a casino and gaming establishment within the State of Nevada.
5 3. Plaintiff is informed, believes and thereon alleges that Defendant is a resident of the
6 City of Laguna Beach; County of Orange, State of California. Defendant filed a Chapter 7
7 petition in the United States Bankruptcy Court for the Central District of California on May 13,
8 2009. Plaintiff’s claims arise pursuant to11 U.S.C. 523(a)(6).
9 COUNT I
ACTION SEEKING DETERMINATION OF DISCHARGEABILITY OF
10 DEBT [11 U. S. C. 523(a)(6)]
11 4. Plaintiff restates and realleges, as though fully set forth herein, the allegations
12 of paragraphs 1 through 4 above.
13 5. This is an action seeking an exception to the discharge of Defendant’s debt to
14 Plaintiff pursuant to 11 U.S.C. 523 (a)(6).
15 6. Plaintiff, DESERT PALACE, INC., doing business as CAESAR’S PALACE HOTEL
16 & CASINO; is a creditor of MICHAEL NAHASS, the above named Debtor / Defendant
17 herein, having a valid claim with an outstanding principal balance in the amount of $705,000.00
18 exclusive of interest, costs and worthless check damages. Plaintiff's valid claim is $720,363.80
19 inclusive of interest, costs, and worthless check damages.
20 7. On or about January 16, 2009, Defendant sought, and was extended, credit from
21 Plaintiff, DESERT PALACE, INC., doing business as CAESAR’S PALACE HOTEL & CASINO,
22 in the aggregate sum of $705,000.00.
23 8. Defendant accessed this credit by signing and tendering credit instruments negotiable
24 instruments number: C1229756 in the amount of $100,000.00; C1229750 in the amount of
25 $100,000.00; C1229766 in the amount of $100,000.00; C1229862 in the amount of $10,000.00;
26 C1229758 in the amount of $95,000.00; C1229745 in the amount of $100,000.00; C1229836 in the
27 amount of $200,000.00;
.
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1 9. At the precise moment that Defendant accessed the credit extended to him by
2 Plaintiff, by signing and tendering seven (7) credit instruments / negotiable instruments to Plaintiff
3 and in the aggregate sum of $705,000.00:
4 A. Defendant had actual and direct knowledge that credit instruments / negotiable
5 instruments number C1229756 in the amount of $100,000.00; C1229750 in the amount of
6 $100,000.00; C1229766 in the amount of $100,000.00; signed and tendered to Plaintiff were drawn
7 against a financial account at J. P. Morgan Chase which Defendant had wrongfully closed (or shortly
8 thereafter would be wrongfully closed) or otherwise did not (and would not) have funds on deposit
9 therein sufficient to honor any of the credit instruments / negotiable instruments; thereby assuring that
10 his credit obligation to Plaintiff would not be satisfied as the instruments would be dishonored when
11 Plaintiff presented them for payment, yet Defendant nevertheless signed and tendered the instruments
12 to Plaintiff; received valuable gaming tokens and cash in exchange therefor; all the while knowing
13 that the instruments were worthless and;.
14 B. Defendant had actual and direct knowledge that credit instruments / negotiable
15 instruments number C1229862 in the amount of $10,000.00; C1229758 in the amount of $95,000.00;
16 C1229745 in the amount of $100,000.00; C1229836 in the amount of $200,000.00; were drawn
17 against a financial account which did not (and would not) have funds on deposit therein sufficient to
18 honor any of the credit instruments / negotiable instruments; thereby assuring that his credit obligation
19 to Plaintiff would not be satisfied as the instruments would be dishonored when Plaintiff presented
20 them for payment; yet Defendant nevertheless signed and tendered these four instruments to Plaintiff
21 received valuable gaming tokens and cash in exchange therefor; all the while knowing that the
22 instruments were worthless and;.
23 C. Defendant knew that he would not have $705,000.00 in his financial
24 account to honor the even credit instruments / negotiable instruments and thereby satisfy his credit
25 obligation to Plaintiff, as the instruments were drawn against a financial account which Defendant
26 had wrongfully closed (or shortly thereafter would be wrongfully closed) or otherwise did not (and
27 would not) have funds on deposit therein sufficient to honor any of the credit instruments / negotiable
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1 instruments; thereby assuring that his credit obligation to Plaintiff would not be satisfied as the
2 instruments would be dishonored when Plaintiff presented them for payment; yet Defendant
3 nevertheless signed and tendered the seven instruments to Plaintiff; received valuable gaming tokens
4 and cash in exchange therefor; all the while knowing that the instruments were worthless and;.
5 D. Defendant knew that his bank account assets would be grossly inadequate
6 to honor the seven credit instruments / negotiable instruments and thereby satisfy his credit
7 obligations to Plaintiff, as the instruments were drawn against a financial account which Defendant
8 had wrongfully closed (or shortly thereafter would be wrongfully closed) or otherwise did not (and
9 would not) have funds on deposit therein sufficient to honor any of the credit instruments / negotiable
10 instruments; thereby assuring that his credit obligation to Plaintiff would not be satisfied as the
11 instruments would be dishonored when Plaintiff presented them for payment; yet Defendant
12 nevertheless signed and tendered the seven instruments to Plaintiff; received valuable gaming tokens
13 and cash in exchange therefor; all the while knowing that the instruments were worthless and;.
14 E. Defendant knew that he did not have cash assets from any other source
15 with which to honor the seven credit instruments / negotiable instruments and thereby satisfy his
16 credit obligation to Plaintiff, yet Defendant nevertheless signed and tendered the seven instruments
17 to Plaintiff; received valuable gaming tokens in exchange therefor; all the while knowing that the
18 instruments were worthless and;
19 F. Defendant had actual and direct knowledge that the seven (7) credit
20 instruments / negotiable instruments were worthless and would be dishonored at such time as Plaintiff
21 presented them for payment, as the instruments were drawn against a financial account which
22 Defendant had wrongfully closed (or shortly thereafter would be wrongfully closed) or otherwise did
23 not (and would not) have funds on deposit therein sufficient to honor any of the credit instruments
24 / negotiable instruments; thereby assuring that his credit obligation to Plaintiff would not be satisfied
25 as the instruments would be dishonored when Plaintiff presented them for payment; yet Defendant
26 nevertheless signed and tendered the seven instruments to Plaintiff; received valuable gaming tokens
27 and cash in exchange therefor; all the while knowing that the instruments were worthless.
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1 10. A copy of the seven credit instruments / negotiable instruments tendered to

2 Plaintiff is annexed and affixed hereto as Composite Exhibit #1 and are incorporated herein by
3 reference.
4 11. Plaintiff alleges that Defendant’s actions:
5 A. Consisted of willful conduct toward Plaintiff as, at all times material hereto,
6 Defendant deliberately and intentionally injured Plaintiff by signing and tendering the seven
7 instruments (annexed and affixed hereto as Composite Exhibit #1 to Plaintiff and receiving valuable
8 gaming tokens and cash in exchange therefor; all the while knowing that instruments were drawn
9 against a financial account which Defendant had wrongfully closed (or shortly thereafter would be
10 wrongfully closed) or otherwise did not (and would not) have funds on deposit therein sufficient to
11 honor any of the credit instruments / negotiable instruments at issue herein; and that the instruments
12 were worthless and;
13 B. Consisted of malice toward the Plaintiff as, at all times material hereto:
14 Defendant committed a wrongful act; which Defendant committed intentionally; which necessarily
15 caused injury to Plaintiff; and which Defendant committed without just cause or excuse, to wit:
16 signing and tendering the seven instruments at issue herein to Plaintiff; receiving valuable gaming
17 tokens and cash in exchange therefor; all the while knowing that the instruments were worthless as
18 Defendant had wrongfully closed (or shortly thereafter would be wrongfully closed) or otherwise did
19 not (and would not) have funds on deposit therein sufficient to honor any of the credit instruments
20 / negotiable instruments at issue herein; that the instruments were worthless, and that such conduct
21 would result in injury to Plaintiff and;
22 C. Were the sole and proximate cause of injury to Plaintiff to the extent of the
23 face value of the seven instruments, was a necessary product of the Defendant’s willful and malicious
24 acts, to wit: signing and tendering the seven instruments (annexed and affixed hereto as Composite
25 Exhibit #1 to Plaintiff and receiving valuable gaming tokens and cash in exchange therefor; all the
26 while knowing that instruments were worthless as they were drawn against a financial account which
27 Defendant had wrongfully closed (or shortly thereafter would be wrongfully closed) or otherwise did
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1 not (and would not) have funds on deposit therein sufficient to honor any of the credit instruments
2 / negotiable instruments at issue herein.
3 12. Defendant's agreement with Plaintiff provides for the payment of interest, costs and
4 attorney fees, should court action be necessary to collect the debt.
5 13. Plaintiff has suffered injury and damage as a direct and proximate result of
6 Defendant's willful, malicious, and intentional conduct, hence Plaintiff asserts that Defendant's debt
7 to the Plaintiff (plus costs, interest, worthless check damages, and attorney fees emanating therefrom)
8 should be held to be nondischargeable in bankruptcy pursuant to 11 U.S.C. 523 (a)(6).
9 WHEREFORE, Plaintiff prays:
10 1. That the debts owed to the Plaintiff determined to be nondischargeable pursuant to
11 11 U. S. C. 523(a)(6).
12 2. For judgment in favor of Plaintiff on all claims for relief;
13 3. For costs and attorney fees incurred in prosecuting this action;
14 4. For punitive and exemplary damages in an amount to be proven at trial;
15 5. For a money judgment in favor of Plaintiff in an amount to be proven at trial, but not
16 less than $720,363.80 or, in the alternative; for a judgment in favor of Plaintiff which determines
17 Defendant’s debt to Plaintiff to be nondischargeable in bankruptcy; and which terminates and annuls
18 the Automatic Stay as to Defendant’s debt to Plaintiff; thereby permitting Plaintiff to commence
19 litigation in the U. S. District Court for District of Nevada in an effort to secure a final and valid
20 judgment against Defendant, then domesticate and enforce that Final Judgment against Defendant in
21 the appropriate court of any jurisdiction where Defendant or his assets can be located. and,
22 6. for such other and further relief as the Court may deem just and proper.
23 DATED this 20th day of August, 2009.
24 ROBERT G. AISENSTEIN, ESQ.
Counsel for Plaintiff
25 2114 Fountain Springs Drive
Henderson, Nevada 89074
26 Telephone: (702) 897-1438 FAX: (702) 896-8868
E-Mail: Aisenstein@msn.com
27
28 BY: /s/ Robert G. Aisenstein
ROBERT G. AISENSTEIN
[Pro Hac Vice Admission Pending]
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