The REMM Group v. Dawood CA4/3

FACTS

In 1996, the D. Robert Johnson Family Projects partnership (FPP) was formed as a California Limited Partnership by D. Robert Johnson and his wife, Odette Semaan Johnson (referred to collectively as the Johnsons). After forming FPP, the Johnsons transferred their assets into the partnership and subsequently transferred limited ownership of FPP to their children and their children’s spouses, Cameron Johnson, Vance Johnson, Joana Johnson, Jesse Johnson, Wynema Johnson, and Sana Johnson (referred to collectively as the Limited Partners). Section 10.5 of the partnership agreement included a deficit restoration obligation (DRO). The Johnsons later realized they would not be successful in avoiding creditors by transferring assets to their children and their children’s spouses through FPP. The Johnsons entered negotiations with Amir Dawood (Amir), Jamal Dawood, and Younan Dawood (collectively referred to as the Dawoods), who claimed they could assist FPP and its partners in defrauding creditors. The Johnsons and the Dawoods devised a plan to transfer assets to the Dawoods through the fabrication of debt instruments and agreements. The Dawoods and the Johnsons planned to split the…