Tran

FACTS

Hamilton, acting as attorney for Ly, filed the main complaint in August 2013. The complaint asserts various causes of action against Tran, Harbor Automotive, Inc. (Harbor), and others, arising out of two failed agreements. The first was an alleged agreement by which Ly would invest $1,000,000 in Harbor, with the expectation of thereby qualifying for an EB 5 immigration visa. According to the complaint, the parties’ agreement specified that if the visa application was denied, Ly’s money would be returned to her. However, when Ly’s visa application was denied, Tran allegedly refused to refund her investment. The second agreement was an alleged partnership through which Ly and Tran would purchase and quickly rehabilitate single family homes with the goal of reselling them for a profit. Ly alleges she invested significant sums in the partnership, while Tran invested no money of his own. She further alleges that while five properties

2 were purchased and resold by the partnership, Tran wrongfully diverted at least a portion of the profits and other partnership funds for his own use. Tran filed his cross-complaint in May 2014, naming not only Ly, but also Hamilton, as…