31
1 2 3 4 5 6 7 8 9 10 11 12 13 14 'is 16 17 18 19 20 21 22 23 24 25 26 27 28 Jesse Ortiz (CA Bar Assn. No. 176450) , .... \ [email protected] Ben Williams (CA Bar Assn. No. 284884) [email protected] Jesse Ortiz Law 917 7th Street Sacramento, CA 95814 Telephone: (916) 443-9500 Facsimile: (916) 443-9501 Attorneys for Plaintiff . RHONDASMIRA and ORLEANS CONSLUTING GROUP, LLC SUPERIOR COURT OF THE STATE OF CALIFORNIA OF SACRAMENTO ) Case No. ) ) COMPLAINT FOR DAMAGES: RHONDA an indi viduc:.J.; ) ORI.:ENJS CONSLULTING GRO'JP I LLC I } 1. Violation of Business & a California Limited Liabilit'i' } Professions Code 17200; Company, ) ) 2. Declaratory Relief; 3. Violation of the Political Plaintiff, Reform Act; vs, 4. Wrongful Termination in Violation of Public " KEVIN SLOAT, an individuQl; Policy; and SLOAT HIGGENS JENSEN & S. Defamation ASSOCIATES, LLC r A ifornia Limited Liability Company, and DOES 1 through 50, inclusive, Defendan:.s. I I I Plaintiffs, RHONDA SMIRA and ORLEANS CONSULTING GROUP, LLC r hereby complain and allege as follows: PARTIES 1. Plaintiff, RHONDA SMIRA (hereinafter "Plaintiff" and/or "SMIRA") is, and at all times herein mentioned was, an individual residing in Sacramento County, California. 2. Plaintiff, ORLEANS CONSULTING GROUP, LLC (hereinafter "ORLEANS" and/or collectively referred to as "Plaintiffs") is, Complaint for Damages-1

Smira v Sloat lawsuit

Embed Size (px)

DESCRIPTION

Lawsuit filed by Rhonda Smira against Kevin Sloat

Citation preview

Page 1: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

is

16

17

18

19

20

21

22

23

24

25

26

27

28

Jesse Ortiz (CA Bar Assn No 176450)

jessejesseortizlawcom Ben Williams (CA Bar Assn No 284884) benjesseortizlawcom Jesse Ortiz Law 917 7th Street Sacramento CA 95814 Telephone (916) 443-9500 Facsimile (916) 443-9501

Attorneys for Plaintiff RHONDASMIRA and ORLEANS CONSLUTING GROUP LLC

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUN~Y OF SACRAMENTO

) Case No ) ) COMPLAINT FOR DAMAGESRHONDA S~IKA an individucJ )

ORIENJS CONSLULTING GROJP I LLC I 1 Violation of Business ampa California Limited Liabiliti Professions Code 17200Company )

) 2 Declaratory Relief 3 Violation of the PoliticalPlaintiff

Reform Act vs 4 Wrongful Termination in

Violation of Public KEVIN SLOAT an individuQl Policy andSLOAT HIGGENS JENSEN amp S DefamationASSOCIATES LLC r A ifornia Limited Liability Company and DOES 1 through 50 inclusive

Defendans I

I I

Plaintiffs RHONDA SMIRA and ORLEANS CONSULTING GROUP LLC r

hereby complain and allege as follows

PARTIES

1 Plaintiff RHONDA SMIRA (hereinafter Plaintiff

andor SMIRA) is and at all times herein mentioned was an

individual residing in Sacramento County California

2 Plaintiff ORLEANS CONSULTING GROUP LLC (hereinafter

ORLEANS andor collectively referred to as Plaintiffs) is

Complaint for Damages-1

1

2

3

4

5

6

7

B

9

10

11

12

13

14

15

16

17

16

19

20

21

22

23

24

25

26

27

28

and at all herein mentioned was a California Limited Liability

Company

3 Defendant KEVIN SLOAT (hereinafter Defendant andor

SLOAT) is and at all times herein mentioned was an

individual residing in Sacramento County California SLOAT is a

registered lobbyist and is bound by the laws and regulations of

the California Political Reform Act of 1974 (PRA) SLOAT is

the principal and founder of SLOAT HIGGINS JENSEN amp ASSOCIATES

LLC

4 As a registeredlobbyist and the owner of a registered

lobbying firm SLOAT attended regular Ethics Training courses on

the laws and regulations of the PEA The Ethics Training courses

cover the laws and regulationsmiddot of lobbyists making and arranging

gifts and the illegality of lobbyists and lobbying firms making

campaign contributions

5 SLOAT is one of the most connected and powerful

political figures in California and has been ranked as one of

the 100 most powerful people in California politics

6 Defendant SIOAT HIGGINS JENSEN amp ASSOCIATES LLC

(hereinafter SHJ andor collectively referred to as

Defendants) is and at all times herein mentioned was a

California Limited Liability Company

7 SHJ is a registered lobbying firm headquartered in

Sacramento California and is bound by the laws and regulations

of the PRA Plaintiff is informed and believes and thereon

alleges that all directors officers and shareholders of SHJ

reside in Sacramento County California and that all of its

substantive operational decisions are made in Sacramento County

8 SHJ is one of the largest lobbying firms in

California SHJ is consistently one of the top five lobbying

firms in California as measured by annual billings The firm is

Complaint for Damages-2

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

paid millions of dollars by Fortune 500 energyutility and

insurance companies SHJ clients have contributed millions of

dollars of campaign contributions to candidates and elected

officials

9 There exists and at all times herein mentioned there

existed a unity of interest and ownership between defendants

SHJ and SLOAT such that any individuality and separateness

between them have ceased and defendants SHJ is the alter ego of

defendant SLOAT in that Plaintiff is informed and believes and

thereon alleges SLOAT (a) commingles and uses assets and funds

of SHJ for his personal use without adequate consideration

andor recordkeeping (b) uses middotSHJmiddot as a mere shell

instrumentality and conduit to carryon his personal business

and exercises complete control anddominance over SHJ to suchmiddotan

extent that any individuality and separateness between SHJ and

SLOAT does not and at allmiddot relevant times herein mentioned did

not exist and (c) fails to adhere to and disregards corporate

governance recordkeeping and formalities obligations

10 Plaintiffs are ignorant of the true names and

capacities of the defendants sued herein as DOES 1-50

inclusive and therefore sues these defendants by such

fictitious names Plaintiffs will amend the complaint to allege

their true names and capacities when ascertained Plaintiffs are

informed and believes and thereon alleges that each of the

fictitious named defendants are responsible in some manner for

the occurrences herein alleged and that Plaintiffs losses are

herein alleged were proximately caused by such negligent andor

wrongful conduct

FACTUAL ALLEGATIONS

11 On or about January 1 2000 SMlRA became an employee

of SHJ As an employee Plaintiffs responsibilities included

Complaint for Damages-3

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

16

17

18

19

21

22

23

24

26

27

28

registering SHJ as a lobbying firm compiling and submitting the

registration for SHJ lobbyists coordinating the r~gistration of

SHJ clients as lobbyist employers compiling and filing

quarterly lobbying activities and payment disclosure reports

and coordinating and filing out the quarterly lobbying employer

reports Further Plaintiff was responsible for assuring that

SHJ was in compliance with the PRA

12 Defendants regularly hosted elaborate fundraisers at

SLOATs mansion on the exclusive Crocker Road in Sacramento

California in the SHJ offices and at a local wine bar where

Defendants have a wine locker stocked with thousands of dollars

of rare wines The elaborate events were almost exclusively

limited to Defendants clients and contributions were made to

the candidates by both the Defendants clients and Defendants

13 SLOAT acting as the owner ofSHJ and at his sole

discretion chose which candidates and-elected officials

Defendants would host fundraisers for Defendant would consider

several factors when identifying which candidates and elected

officials he would host events and make contributions to If an

elected official was a member of a committee that would hear

bills sponsored by supported by or opposed by Defendants

clients would make contributions to the elected officials If an

elected official were in a special position of power such as

Senate and Assembly leadership posts or if an elected official

was just considered a friend of the firm SLOAT would host a

fundraiser where Defendants as well as Defendants clients would

make a contribution to the elected official Occasionally

elected officials would even ask SLOAT to host events and would

solicit contributions from Defendants and Defendants clients

14 The fundraisers were always attended by SHJs clients

and the candidates received campaign contributions in exchange

complaint for Damages-4

1

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

for attending the fundraisers In many cases SLOAT was meeting

the candidates for the very first time at the hosted fundraiser

15 Once SLOAT decided to host a fundraiser SMIRA was

directed to reach out to the elected official or candidate to

coordinate schedules arrange logistics and establish an

understanding as to how much money the candidate or elected

official could expect to receive by attending the fundraiser A

typical evening at Defendants mansion would result in between

$10000 and $50000 for an elected official

16 Defendants would pay SMIRA to reach out to

Defendants clients to notify the clients of the event and tell

the client how much the client is expected to contribute to the

elected official Defendants had a static list of approximately

30 clients that Plaintiff was directed to invitetomiddotevery

fundraiser hosted by Defendants This list was a partial list of

SJH clients who were told on multiple occasions by Defendants

that Defendants would host private fundraisers for candidates

and the clients were expected to contribute and attend each

event In exchange SJH clients were promised exclusive access

to the Governor legislators or candidates

17 Defendants were very clear with SMlRA that she was

only to invite clients on the list because SLOAT said they were

his go to clients admiddot their campaign contribution budgets were

actually his to distribute at his discretion Plaintiff is

informed and believes and thereon alleges that the clients on

the list were the clients SLOAT Saw as unsophisticated and

clients who did not ask why they were making contributions to

the candidates The more sophisticated clients who required

background or some rationale as to why Defendant was asking them

to contribute were only rarely invited

complaint for Damages-S

III

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

18 Once the attending clients were determined SMlRA

would then reach out to the elected officials representative to

provide a list of all clients who would be attending the event

as well as how much each client would be contributing Plaintiff

would then send invitations to the fundraiser to the designated

list of clients Of the hundreds of invitations sent to

candidates since early 2000 none met the current disclosure and

notification laws set forth by the Fair Political Practices

Commission (FPPC) regulations

19 At these fundraisers SMlRA would hire a caterer

develop a menu sample the caterers cooking purchase cases of

expensive wine and alcohol purchase decorations and spend

hours at the mansion prior to the event making sure the details

of the event were all in order Plaintiff would then attend the

fundraiser as an employee to help manage the caterers act as a

hostess to the clients and the candidates

20 After the eventmiddot SMIR~ would coordinate the clean-upmiddot

of the event make sure staff was paid or invoices were

submitted would follow up with Defendants clients to make sure

campaign contribution checks were delivered to the elected

officials representative Plaintiff would spend between 10-15

hours at each fundraising event at a cost to Defendants of

approximately $1000

21 At each fundraiser Defendants would spend between

$1000 and $2000 on expensive bottles of wine for the events

In addition Defendants would expense decorations flowers

imported cigars and high-end cognac scotched and whiskeys

These expenses were all paid for with SHJ funds

22 Defendants would never charge a rental fee to the

elected officials campaign for the cost of hosting the event at

SLOATs mansion

Complaint for Damages-6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 2: Smira v Sloat lawsuit

1

2

3

4

5

6

7

B

9

10

11

12

13

14

15

16

17

16

19

20

21

22

23

24

25

26

27

28

and at all herein mentioned was a California Limited Liability

Company

3 Defendant KEVIN SLOAT (hereinafter Defendant andor

SLOAT) is and at all times herein mentioned was an

individual residing in Sacramento County California SLOAT is a

registered lobbyist and is bound by the laws and regulations of

the California Political Reform Act of 1974 (PRA) SLOAT is

the principal and founder of SLOAT HIGGINS JENSEN amp ASSOCIATES

LLC

4 As a registeredlobbyist and the owner of a registered

lobbying firm SLOAT attended regular Ethics Training courses on

the laws and regulations of the PEA The Ethics Training courses

cover the laws and regulationsmiddot of lobbyists making and arranging

gifts and the illegality of lobbyists and lobbying firms making

campaign contributions

5 SLOAT is one of the most connected and powerful

political figures in California and has been ranked as one of

the 100 most powerful people in California politics

6 Defendant SIOAT HIGGINS JENSEN amp ASSOCIATES LLC

(hereinafter SHJ andor collectively referred to as

Defendants) is and at all times herein mentioned was a

California Limited Liability Company

7 SHJ is a registered lobbying firm headquartered in

Sacramento California and is bound by the laws and regulations

of the PRA Plaintiff is informed and believes and thereon

alleges that all directors officers and shareholders of SHJ

reside in Sacramento County California and that all of its

substantive operational decisions are made in Sacramento County

8 SHJ is one of the largest lobbying firms in

California SHJ is consistently one of the top five lobbying

firms in California as measured by annual billings The firm is

Complaint for Damages-2

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

paid millions of dollars by Fortune 500 energyutility and

insurance companies SHJ clients have contributed millions of

dollars of campaign contributions to candidates and elected

officials

9 There exists and at all times herein mentioned there

existed a unity of interest and ownership between defendants

SHJ and SLOAT such that any individuality and separateness

between them have ceased and defendants SHJ is the alter ego of

defendant SLOAT in that Plaintiff is informed and believes and

thereon alleges SLOAT (a) commingles and uses assets and funds

of SHJ for his personal use without adequate consideration

andor recordkeeping (b) uses middotSHJmiddot as a mere shell

instrumentality and conduit to carryon his personal business

and exercises complete control anddominance over SHJ to suchmiddotan

extent that any individuality and separateness between SHJ and

SLOAT does not and at allmiddot relevant times herein mentioned did

not exist and (c) fails to adhere to and disregards corporate

governance recordkeeping and formalities obligations

10 Plaintiffs are ignorant of the true names and

capacities of the defendants sued herein as DOES 1-50

inclusive and therefore sues these defendants by such

fictitious names Plaintiffs will amend the complaint to allege

their true names and capacities when ascertained Plaintiffs are

informed and believes and thereon alleges that each of the

fictitious named defendants are responsible in some manner for

the occurrences herein alleged and that Plaintiffs losses are

herein alleged were proximately caused by such negligent andor

wrongful conduct

FACTUAL ALLEGATIONS

11 On or about January 1 2000 SMlRA became an employee

of SHJ As an employee Plaintiffs responsibilities included

Complaint for Damages-3

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

16

17

18

19

21

22

23

24

26

27

28

registering SHJ as a lobbying firm compiling and submitting the

registration for SHJ lobbyists coordinating the r~gistration of

SHJ clients as lobbyist employers compiling and filing

quarterly lobbying activities and payment disclosure reports

and coordinating and filing out the quarterly lobbying employer

reports Further Plaintiff was responsible for assuring that

SHJ was in compliance with the PRA

12 Defendants regularly hosted elaborate fundraisers at

SLOATs mansion on the exclusive Crocker Road in Sacramento

California in the SHJ offices and at a local wine bar where

Defendants have a wine locker stocked with thousands of dollars

of rare wines The elaborate events were almost exclusively

limited to Defendants clients and contributions were made to

the candidates by both the Defendants clients and Defendants

13 SLOAT acting as the owner ofSHJ and at his sole

discretion chose which candidates and-elected officials

Defendants would host fundraisers for Defendant would consider

several factors when identifying which candidates and elected

officials he would host events and make contributions to If an

elected official was a member of a committee that would hear

bills sponsored by supported by or opposed by Defendants

clients would make contributions to the elected officials If an

elected official were in a special position of power such as

Senate and Assembly leadership posts or if an elected official

was just considered a friend of the firm SLOAT would host a

fundraiser where Defendants as well as Defendants clients would

make a contribution to the elected official Occasionally

elected officials would even ask SLOAT to host events and would

solicit contributions from Defendants and Defendants clients

14 The fundraisers were always attended by SHJs clients

and the candidates received campaign contributions in exchange

complaint for Damages-4

1

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

for attending the fundraisers In many cases SLOAT was meeting

the candidates for the very first time at the hosted fundraiser

15 Once SLOAT decided to host a fundraiser SMIRA was

directed to reach out to the elected official or candidate to

coordinate schedules arrange logistics and establish an

understanding as to how much money the candidate or elected

official could expect to receive by attending the fundraiser A

typical evening at Defendants mansion would result in between

$10000 and $50000 for an elected official

16 Defendants would pay SMIRA to reach out to

Defendants clients to notify the clients of the event and tell

the client how much the client is expected to contribute to the

elected official Defendants had a static list of approximately

30 clients that Plaintiff was directed to invitetomiddotevery

fundraiser hosted by Defendants This list was a partial list of

SJH clients who were told on multiple occasions by Defendants

that Defendants would host private fundraisers for candidates

and the clients were expected to contribute and attend each

event In exchange SJH clients were promised exclusive access

to the Governor legislators or candidates

17 Defendants were very clear with SMlRA that she was

only to invite clients on the list because SLOAT said they were

his go to clients admiddot their campaign contribution budgets were

actually his to distribute at his discretion Plaintiff is

informed and believes and thereon alleges that the clients on

the list were the clients SLOAT Saw as unsophisticated and

clients who did not ask why they were making contributions to

the candidates The more sophisticated clients who required

background or some rationale as to why Defendant was asking them

to contribute were only rarely invited

complaint for Damages-S

III

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

18 Once the attending clients were determined SMlRA

would then reach out to the elected officials representative to

provide a list of all clients who would be attending the event

as well as how much each client would be contributing Plaintiff

would then send invitations to the fundraiser to the designated

list of clients Of the hundreds of invitations sent to

candidates since early 2000 none met the current disclosure and

notification laws set forth by the Fair Political Practices

Commission (FPPC) regulations

19 At these fundraisers SMlRA would hire a caterer

develop a menu sample the caterers cooking purchase cases of

expensive wine and alcohol purchase decorations and spend

hours at the mansion prior to the event making sure the details

of the event were all in order Plaintiff would then attend the

fundraiser as an employee to help manage the caterers act as a

hostess to the clients and the candidates

20 After the eventmiddot SMIR~ would coordinate the clean-upmiddot

of the event make sure staff was paid or invoices were

submitted would follow up with Defendants clients to make sure

campaign contribution checks were delivered to the elected

officials representative Plaintiff would spend between 10-15

hours at each fundraising event at a cost to Defendants of

approximately $1000

21 At each fundraiser Defendants would spend between

$1000 and $2000 on expensive bottles of wine for the events

In addition Defendants would expense decorations flowers

imported cigars and high-end cognac scotched and whiskeys

These expenses were all paid for with SHJ funds

22 Defendants would never charge a rental fee to the

elected officials campaign for the cost of hosting the event at

SLOATs mansion

Complaint for Damages-6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 3: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

paid millions of dollars by Fortune 500 energyutility and

insurance companies SHJ clients have contributed millions of

dollars of campaign contributions to candidates and elected

officials

9 There exists and at all times herein mentioned there

existed a unity of interest and ownership between defendants

SHJ and SLOAT such that any individuality and separateness

between them have ceased and defendants SHJ is the alter ego of

defendant SLOAT in that Plaintiff is informed and believes and

thereon alleges SLOAT (a) commingles and uses assets and funds

of SHJ for his personal use without adequate consideration

andor recordkeeping (b) uses middotSHJmiddot as a mere shell

instrumentality and conduit to carryon his personal business

and exercises complete control anddominance over SHJ to suchmiddotan

extent that any individuality and separateness between SHJ and

SLOAT does not and at allmiddot relevant times herein mentioned did

not exist and (c) fails to adhere to and disregards corporate

governance recordkeeping and formalities obligations

10 Plaintiffs are ignorant of the true names and

capacities of the defendants sued herein as DOES 1-50

inclusive and therefore sues these defendants by such

fictitious names Plaintiffs will amend the complaint to allege

their true names and capacities when ascertained Plaintiffs are

informed and believes and thereon alleges that each of the

fictitious named defendants are responsible in some manner for

the occurrences herein alleged and that Plaintiffs losses are

herein alleged were proximately caused by such negligent andor

wrongful conduct

FACTUAL ALLEGATIONS

11 On or about January 1 2000 SMlRA became an employee

of SHJ As an employee Plaintiffs responsibilities included

Complaint for Damages-3

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

16

17

18

19

21

22

23

24

26

27

28

registering SHJ as a lobbying firm compiling and submitting the

registration for SHJ lobbyists coordinating the r~gistration of

SHJ clients as lobbyist employers compiling and filing

quarterly lobbying activities and payment disclosure reports

and coordinating and filing out the quarterly lobbying employer

reports Further Plaintiff was responsible for assuring that

SHJ was in compliance with the PRA

12 Defendants regularly hosted elaborate fundraisers at

SLOATs mansion on the exclusive Crocker Road in Sacramento

California in the SHJ offices and at a local wine bar where

Defendants have a wine locker stocked with thousands of dollars

of rare wines The elaborate events were almost exclusively

limited to Defendants clients and contributions were made to

the candidates by both the Defendants clients and Defendants

13 SLOAT acting as the owner ofSHJ and at his sole

discretion chose which candidates and-elected officials

Defendants would host fundraisers for Defendant would consider

several factors when identifying which candidates and elected

officials he would host events and make contributions to If an

elected official was a member of a committee that would hear

bills sponsored by supported by or opposed by Defendants

clients would make contributions to the elected officials If an

elected official were in a special position of power such as

Senate and Assembly leadership posts or if an elected official

was just considered a friend of the firm SLOAT would host a

fundraiser where Defendants as well as Defendants clients would

make a contribution to the elected official Occasionally

elected officials would even ask SLOAT to host events and would

solicit contributions from Defendants and Defendants clients

14 The fundraisers were always attended by SHJs clients

and the candidates received campaign contributions in exchange

complaint for Damages-4

1

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

for attending the fundraisers In many cases SLOAT was meeting

the candidates for the very first time at the hosted fundraiser

15 Once SLOAT decided to host a fundraiser SMIRA was

directed to reach out to the elected official or candidate to

coordinate schedules arrange logistics and establish an

understanding as to how much money the candidate or elected

official could expect to receive by attending the fundraiser A

typical evening at Defendants mansion would result in between

$10000 and $50000 for an elected official

16 Defendants would pay SMIRA to reach out to

Defendants clients to notify the clients of the event and tell

the client how much the client is expected to contribute to the

elected official Defendants had a static list of approximately

30 clients that Plaintiff was directed to invitetomiddotevery

fundraiser hosted by Defendants This list was a partial list of

SJH clients who were told on multiple occasions by Defendants

that Defendants would host private fundraisers for candidates

and the clients were expected to contribute and attend each

event In exchange SJH clients were promised exclusive access

to the Governor legislators or candidates

17 Defendants were very clear with SMlRA that she was

only to invite clients on the list because SLOAT said they were

his go to clients admiddot their campaign contribution budgets were

actually his to distribute at his discretion Plaintiff is

informed and believes and thereon alleges that the clients on

the list were the clients SLOAT Saw as unsophisticated and

clients who did not ask why they were making contributions to

the candidates The more sophisticated clients who required

background or some rationale as to why Defendant was asking them

to contribute were only rarely invited

complaint for Damages-S

III

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

18 Once the attending clients were determined SMlRA

would then reach out to the elected officials representative to

provide a list of all clients who would be attending the event

as well as how much each client would be contributing Plaintiff

would then send invitations to the fundraiser to the designated

list of clients Of the hundreds of invitations sent to

candidates since early 2000 none met the current disclosure and

notification laws set forth by the Fair Political Practices

Commission (FPPC) regulations

19 At these fundraisers SMlRA would hire a caterer

develop a menu sample the caterers cooking purchase cases of

expensive wine and alcohol purchase decorations and spend

hours at the mansion prior to the event making sure the details

of the event were all in order Plaintiff would then attend the

fundraiser as an employee to help manage the caterers act as a

hostess to the clients and the candidates

20 After the eventmiddot SMIR~ would coordinate the clean-upmiddot

of the event make sure staff was paid or invoices were

submitted would follow up with Defendants clients to make sure

campaign contribution checks were delivered to the elected

officials representative Plaintiff would spend between 10-15

hours at each fundraising event at a cost to Defendants of

approximately $1000

21 At each fundraiser Defendants would spend between

$1000 and $2000 on expensive bottles of wine for the events

In addition Defendants would expense decorations flowers

imported cigars and high-end cognac scotched and whiskeys

These expenses were all paid for with SHJ funds

22 Defendants would never charge a rental fee to the

elected officials campaign for the cost of hosting the event at

SLOATs mansion

Complaint for Damages-6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 4: Smira v Sloat lawsuit

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

16

17

18

19

21

22

23

24

26

27

28

registering SHJ as a lobbying firm compiling and submitting the

registration for SHJ lobbyists coordinating the r~gistration of

SHJ clients as lobbyist employers compiling and filing

quarterly lobbying activities and payment disclosure reports

and coordinating and filing out the quarterly lobbying employer

reports Further Plaintiff was responsible for assuring that

SHJ was in compliance with the PRA

12 Defendants regularly hosted elaborate fundraisers at

SLOATs mansion on the exclusive Crocker Road in Sacramento

California in the SHJ offices and at a local wine bar where

Defendants have a wine locker stocked with thousands of dollars

of rare wines The elaborate events were almost exclusively

limited to Defendants clients and contributions were made to

the candidates by both the Defendants clients and Defendants

13 SLOAT acting as the owner ofSHJ and at his sole

discretion chose which candidates and-elected officials

Defendants would host fundraisers for Defendant would consider

several factors when identifying which candidates and elected

officials he would host events and make contributions to If an

elected official was a member of a committee that would hear

bills sponsored by supported by or opposed by Defendants

clients would make contributions to the elected officials If an

elected official were in a special position of power such as

Senate and Assembly leadership posts or if an elected official

was just considered a friend of the firm SLOAT would host a

fundraiser where Defendants as well as Defendants clients would

make a contribution to the elected official Occasionally

elected officials would even ask SLOAT to host events and would

solicit contributions from Defendants and Defendants clients

14 The fundraisers were always attended by SHJs clients

and the candidates received campaign contributions in exchange

complaint for Damages-4

1

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

for attending the fundraisers In many cases SLOAT was meeting

the candidates for the very first time at the hosted fundraiser

15 Once SLOAT decided to host a fundraiser SMIRA was

directed to reach out to the elected official or candidate to

coordinate schedules arrange logistics and establish an

understanding as to how much money the candidate or elected

official could expect to receive by attending the fundraiser A

typical evening at Defendants mansion would result in between

$10000 and $50000 for an elected official

16 Defendants would pay SMIRA to reach out to

Defendants clients to notify the clients of the event and tell

the client how much the client is expected to contribute to the

elected official Defendants had a static list of approximately

30 clients that Plaintiff was directed to invitetomiddotevery

fundraiser hosted by Defendants This list was a partial list of

SJH clients who were told on multiple occasions by Defendants

that Defendants would host private fundraisers for candidates

and the clients were expected to contribute and attend each

event In exchange SJH clients were promised exclusive access

to the Governor legislators or candidates

17 Defendants were very clear with SMlRA that she was

only to invite clients on the list because SLOAT said they were

his go to clients admiddot their campaign contribution budgets were

actually his to distribute at his discretion Plaintiff is

informed and believes and thereon alleges that the clients on

the list were the clients SLOAT Saw as unsophisticated and

clients who did not ask why they were making contributions to

the candidates The more sophisticated clients who required

background or some rationale as to why Defendant was asking them

to contribute were only rarely invited

complaint for Damages-S

III

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

18 Once the attending clients were determined SMlRA

would then reach out to the elected officials representative to

provide a list of all clients who would be attending the event

as well as how much each client would be contributing Plaintiff

would then send invitations to the fundraiser to the designated

list of clients Of the hundreds of invitations sent to

candidates since early 2000 none met the current disclosure and

notification laws set forth by the Fair Political Practices

Commission (FPPC) regulations

19 At these fundraisers SMlRA would hire a caterer

develop a menu sample the caterers cooking purchase cases of

expensive wine and alcohol purchase decorations and spend

hours at the mansion prior to the event making sure the details

of the event were all in order Plaintiff would then attend the

fundraiser as an employee to help manage the caterers act as a

hostess to the clients and the candidates

20 After the eventmiddot SMIR~ would coordinate the clean-upmiddot

of the event make sure staff was paid or invoices were

submitted would follow up with Defendants clients to make sure

campaign contribution checks were delivered to the elected

officials representative Plaintiff would spend between 10-15

hours at each fundraising event at a cost to Defendants of

approximately $1000

21 At each fundraiser Defendants would spend between

$1000 and $2000 on expensive bottles of wine for the events

In addition Defendants would expense decorations flowers

imported cigars and high-end cognac scotched and whiskeys

These expenses were all paid for with SHJ funds

22 Defendants would never charge a rental fee to the

elected officials campaign for the cost of hosting the event at

SLOATs mansion

Complaint for Damages-6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 5: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

for attending the fundraisers In many cases SLOAT was meeting

the candidates for the very first time at the hosted fundraiser

15 Once SLOAT decided to host a fundraiser SMIRA was

directed to reach out to the elected official or candidate to

coordinate schedules arrange logistics and establish an

understanding as to how much money the candidate or elected

official could expect to receive by attending the fundraiser A

typical evening at Defendants mansion would result in between

$10000 and $50000 for an elected official

16 Defendants would pay SMIRA to reach out to

Defendants clients to notify the clients of the event and tell

the client how much the client is expected to contribute to the

elected official Defendants had a static list of approximately

30 clients that Plaintiff was directed to invitetomiddotevery

fundraiser hosted by Defendants This list was a partial list of

SJH clients who were told on multiple occasions by Defendants

that Defendants would host private fundraisers for candidates

and the clients were expected to contribute and attend each

event In exchange SJH clients were promised exclusive access

to the Governor legislators or candidates

17 Defendants were very clear with SMlRA that she was

only to invite clients on the list because SLOAT said they were

his go to clients admiddot their campaign contribution budgets were

actually his to distribute at his discretion Plaintiff is

informed and believes and thereon alleges that the clients on

the list were the clients SLOAT Saw as unsophisticated and

clients who did not ask why they were making contributions to

the candidates The more sophisticated clients who required

background or some rationale as to why Defendant was asking them

to contribute were only rarely invited

complaint for Damages-S

III

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

18 Once the attending clients were determined SMlRA

would then reach out to the elected officials representative to

provide a list of all clients who would be attending the event

as well as how much each client would be contributing Plaintiff

would then send invitations to the fundraiser to the designated

list of clients Of the hundreds of invitations sent to

candidates since early 2000 none met the current disclosure and

notification laws set forth by the Fair Political Practices

Commission (FPPC) regulations

19 At these fundraisers SMlRA would hire a caterer

develop a menu sample the caterers cooking purchase cases of

expensive wine and alcohol purchase decorations and spend

hours at the mansion prior to the event making sure the details

of the event were all in order Plaintiff would then attend the

fundraiser as an employee to help manage the caterers act as a

hostess to the clients and the candidates

20 After the eventmiddot SMIR~ would coordinate the clean-upmiddot

of the event make sure staff was paid or invoices were

submitted would follow up with Defendants clients to make sure

campaign contribution checks were delivered to the elected

officials representative Plaintiff would spend between 10-15

hours at each fundraising event at a cost to Defendants of

approximately $1000

21 At each fundraiser Defendants would spend between

$1000 and $2000 on expensive bottles of wine for the events

In addition Defendants would expense decorations flowers

imported cigars and high-end cognac scotched and whiskeys

These expenses were all paid for with SHJ funds

22 Defendants would never charge a rental fee to the

elected officials campaign for the cost of hosting the event at

SLOATs mansion

Complaint for Damages-6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 6: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

18 Once the attending clients were determined SMlRA

would then reach out to the elected officials representative to

provide a list of all clients who would be attending the event

as well as how much each client would be contributing Plaintiff

would then send invitations to the fundraiser to the designated

list of clients Of the hundreds of invitations sent to

candidates since early 2000 none met the current disclosure and

notification laws set forth by the Fair Political Practices

Commission (FPPC) regulations

19 At these fundraisers SMlRA would hire a caterer

develop a menu sample the caterers cooking purchase cases of

expensive wine and alcohol purchase decorations and spend

hours at the mansion prior to the event making sure the details

of the event were all in order Plaintiff would then attend the

fundraiser as an employee to help manage the caterers act as a

hostess to the clients and the candidates

20 After the eventmiddot SMIR~ would coordinate the clean-upmiddot

of the event make sure staff was paid or invoices were

submitted would follow up with Defendants clients to make sure

campaign contribution checks were delivered to the elected

officials representative Plaintiff would spend between 10-15

hours at each fundraising event at a cost to Defendants of

approximately $1000

21 At each fundraiser Defendants would spend between

$1000 and $2000 on expensive bottles of wine for the events

In addition Defendants would expense decorations flowers

imported cigars and high-end cognac scotched and whiskeys

These expenses were all paid for with SHJ funds

22 Defendants would never charge a rental fee to the

elected officials campaign for the cost of hosting the event at

SLOATs mansion

Complaint for Damages-6

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 7: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

23 The expenses associated with hosting the fundraiser

are considered non-monetary campaign contributions Neither

Defendants nor the elected officials would declare the nonshy

monetary contributions to the FPPC andor the Secretary of

State

24 On numerous occasions SMlRA notified Defendants of

her understanding that providing thousands of dollars in wine

and alcohol expensive cigars paying for catering and rentals

utilizing her time as a SHJ employee as well as providing

SLOATs personal residence without charging arental fee were

all illegal non-monetary campaign contributions

25 Due to her growipg concerns regarding the likely

impropriety being committed by Defendants Plaintiff solicited

and received several legal opinions from Legal Counsel for

Defendants regarding the illegality of the non-monetary campaign

contributions Defendants were making

26 Legal Counsel confirmed the impropriety of the nonshy

monetary campaign contributions

27 SMlRA in light of her investigation and research

opined that under the PRA SLOAT and SHJ could not make any

campaign contributions either monetary or non-monetary

Further SMlRA contended that DefendaIlts must charge a rental

fee to the client for some portion of the mortgage on his

mansion because as the sole owner of a lobbying firm he could

not provide a free venue for a fundraiser By not charging a

rental fee defendants were making a non-monetary contribution

to an elected official

28 Plaintiff also communicated on several occasions

directly to Defehdant that Defendants could not use SHJ paid

employees to arrange staff and support the fundraising

activities Defendants paid employees time results in a non-

Complaint for Damages-7

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 8: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

monetary contribution to the elected official SMIRA further

warned that the wine alcohol catering cigars or any other

expense associated with the private fundraisers would constitute

a violation of the PRA

29 Any expenses associated with the fundraising events

were paid for either with the SHJs credit card or with SLOATs

credit card SLOATs personal credit card was and is completely

paid for directly from SHJs accounts

30 After being fully briefed by SMIRA on multiple

occasions Defendants continued to host middotfundraisersmiddotand give

illegal in-kind contributions Plaintiff repeatedly

communicated how uneomfortable she was in participating in the

illegal campaign contributions In response Defendant bluntly

stated that it was part of her job and that if she could not

perfor)11 her job the he would find someone else who could

31 Over the course of several years SMIRA repeatedly

voiced her concerns about the illegal contributions prior to

each fundraising event at SLOATs private residence On every

occasion she was reprimanded by Defendant and was finally

directed by Defendant to never talk to him again about her

concerns On one occasionDefendant was so upset that he did

not talk to Plaintiff for over a week

32 In or about 2010 SMIRA notified Defendants that shemiddot

was very concerned about utilizing SHJ corporate credit cards to

make all the purchases that amounted to illegal campaign

contributions Rather than heed her warning SLOATtold

Plaintiff that she would no longer use the company credit card

for the purchases but that she would now use her own credit card

for the expenses and then she would be reimbursed by SHJ

Plaintiff is informed and believes and thereon alleges that

this was Defendants attempt to hide expenses from any future

Complaint for Damages-8

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 9: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

middot11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

audits as well as punishment for her repeated warnings In so

doing Defendants were making it more difficult for Plaintiff to

do her job

33 subsequently SMIRA conducted more inquiries and

investigation regarding Defendants illegal contributions After

Plaintiff notified Defendant of what she found SLOAT would not

speak to SMIRA for several days and would occasionally ask other

lobbyists in the office if theyneeded to hire another support

person

34 In or aboutmiddot 2010 after receiving continued

complaints from SMIRA SLOAT directed SMIRA to start asking

candidates to pay formiddot catering and use the candidates campaign

account to make deposits for catering However Defendantsmiddotmiddot

continued to use Plaintiffs time as an employeemiddot of SHJ provide

thousands of dollars of wine cigars scotch r and other

alcoholic beverages~ asmiddotwell as utilize SLOATs personal

residence to host the fundraisers without charging a rental fee

While Defendants changed some of their activities they

continued to illegally make in-kind c6ntributions

35 Since 2000 to the present demiddotfendants have hosted

hundreds of fundraisingeventsin which Defendantsmiddot illegally

contributed hundreds of thousands of dollars to dozens of

elected officials including but not limited to 11 Senators 26

Assembly menwomen and various other high ranking public

officials and representatives

36 In addition to being forced to participate in the

delivery of illegal campaign contributions Plaintiff was

constantly expected to arrange illegal gifts as an agent of

Defendants

37 Defendants have season tickets to the Sacramento

Kings professional basketball team These tickets currently

Complaint for Damages-9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 10: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

include two floor seats and in years past as many as six lower

level or floor seat season tickets In addition Defendants have

a VIP parking pass for each home game Defendants pay for the

season tickets with SHJ funds Each individual floor seat ticket

has or had a face value of well over $300

38 From 2000 to the present Defendants often gave the

floor seat tickets to Senators Assembly Members legislative

staff or administrative staff as gifts SLOAT would personally

offer Senators Assembly Members legislative staff or

administrative staff the tickets Defendants gave away illegal

tickets on such a regular basisthat some Legislators~

Legislative staff and Administrative staff eventually contacted

SMIRA and Defendants to request Kings tickets

39 For every Kings game that a Senator Assembly Member

legislative staffer or member of the Governors staff attended

SMIRA was expected to perform all or some of the following

actions contact the recipient of the Kings tickets to confirm

their attendance at the game make arrangements to deliver the

tickets if the recipient was not driving to the game with

defendant and schedule attendance at future games with the

recipients

40 SMIRA was specifically directed by defendants to

never notify the recipients of tickets that attendance would

constitute a gift nor put it on his calendar for a written

record Plaintiff was very uncomfortable with participating in

this process If she voiced her concerns she was frozen out

by SLOAT and left to feel as though her job was in jeopardy

Eventually Defendant asked other staff of SHJ to deliver the

tickets to the Legislators and staff

41 SMIRA advised Defendants that providing the tickets

to Senators Assembly members legislative staff or staff to the

Complaint for Damages-10

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 11: Smira v Sloat lawsuit

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

Governor was a violation of the laws limiting gifts between a

lobbyist or lobbying firm and a Legislator

42 Defendants have represented an Indian Tribe which

owns a casino as well as one of the top ranked golf courses in

Northern California

43 From 2008 to present Defendants hosted countless

legislators legislative staff and administrative staff on

expensive golf outings on the Tribes golf course

44 On most occasions SLOAT or another high level SHJ

employee (Employee) would offer to take the legislator

legislative staff or administrative staff golfing at the award

winning golf course If accepted Defendant or Employee would

then have SMIRA make the necessary arrangements Plaintiff was

expected to do some or all of the following Contact the golf

course and speak directly to the head golf professional to

notify them that a dignitary was coming out schedule the tee

time (schedule the delivery of the gift) confirm the datetime

of the tee time with the recipient of the gift make any special

arrangements with the tribe as directed by Defendant of Employee

(some legislators wanted discounted rooms at the hotelcasino)

Employee or Defendant would then pay-for the entire foursomes

round on Defendants credit cards so there was no expense paid

by the gift recipient

45 Defendants and Employee provided so many free rounds

of golf that eventually gift recipients began contacting

Defendants offices directly and requesting tee times Each

round of golf is valued at well over the $10 gift allowed by the

PRA Many Legislators or candidates received golf as a gift on

multiple occasions

46 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledger as a ftbusiness expense for tax

Complaint for Damages-ll

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 12: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

purposes plaintiff was specifically directed by SLOAT to never

record who was in attendance

47 In addition to golf the Casino offers regular music

concerts as part of their entertainment offerings at the hotel

and casino Defendant provided concert tickets free of charge

to numerous legislators legislative staff and administrative

staff

48 SLOAT would regularly check the Casino Resorts

website for a listing of upcoming events If Defendant saw

events he thought a legislator legislative staff member or

administrative staff member would be interested in he would

either contact them directly or direct an employee to contact

them directly and offer free tickets

49 Once contacted by SLOAT SMIRA was expected to make

all arrangements including confirming attendance with the

recipient providing directions to the venue purchasing the

concert tickets on the Defendants credit card providing

confirmation to the recipient that the tickets would be held at

will-call for them

50 SMlRA was expected to process the payments and record

them in SHJs QuickBooks ledgers as a business expense for tax

purposes Defendant specifically directed SMlRA to never record

who was in attendance

51 On or about October 7 2010 to October 28 2010

Defendants were provided free tickets to all of th~ San

Francisco Giants home playoff games by one of Defendants

clients Defendants then provided every ticket to Senators

Assembly members and legislative staff

52 SMlRA was directed by SLOAT to confirm directly with

the legislator or legislative staff of their intention to

attend coordinate the delivery of the tickets to the gift

Complaint for Damages-12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 13: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

recipient and report to Def~ndant the recipient of the gifts

Plaintiff was so uncomfortable with this illegal activity that

she approached the SHJ employee (SHJ Employee) responsible for

the client account to state her concerns SHJ Employee agreed

with SMIRA and asked that Plaintiff not have the client send any

tickets to the SHJ offices but rather mail or overnight the

tickets directly to the recipient of the gift

53 SMIRA repeatedly objected to the arranging

coordination and delivery of the gift as illegal Defendant

reprimanded Plaintiff and stated that client could give a gift

to a reportable individual Plaiptiff stated that it was the act

of SHJ and a Lobbyist arranging confirming attendance and

facilitating the delivery of the gift that was illegal in~hisshy

case Defendant told Plaintiff itmiddot was none of her business and

that she better do as she was told

54 Defendants have represented the San Francisco 4gers

(4gers) The 4gers retained Defendants to assist with issues

regarding the development of a new stadium Defendants suggested

to the 4gers that hosting legislators legislative staff and

administrative staff at games was a great way to build a

relationship with influential political figures The 4gers

agreed to provide tickets to SHJ for SLOAT to dispense as he saw

fit The 4gers refused to provide the tickets complimentary so

Defendant told the 4gers that Defendants would take any elected

officials credit card information and then pass it on to the

4gers front office personnel

55 Defendants would personally invite legislators

legislative staff and administrative staff to 4gers home games

and home playoff games Once Defendants extended the invitation

SMIRA was expected to make all arrangements including

confirming attendance with the recipient providing directions

Complaint for Damages-13

I 11 r

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 14: Smira v Sloat lawsuit

1

2

3

4

S

6

7

8

9

10

11

12

13

14

lS

16

17

18

19

20

21

22

23

24

2S

26

27

28

to the venue providing confirmation to the recipient that the

tickets would- be held at will-call for them or even make

arrangements for the delivery of the tickets

56 SMIRA was to obtain credit card information from the

recipient of the gift then pass the credit card information on

to the 4gers to complete the purchase of the tickets Defendant

stated to Plaintiff that she must feel happy that SHJ wasnt

actually paying for the tickets Plaintiff took this as a direct

jab at her constant complaints about defendants illegal actions

pertaining to gifts Defendant even mentioned to Plaintiff that

while he was uncomfortable charging legislators for tickets he

did likemiddotthat fact that if anyone ever asked he could deny that

he had anything to do with the tickets

57 SMIRAmiddotwasmiddoteven directed by SLOAT to attend one home

playoff game on or around January 22 2012 between the 4gers

and the New York Giants Defendant wanted Plaintiff to attend

because he wanted to make su=e one of the attendees Senator A

as completely taken care of SLOAT directed SMlRA-to make

sure Senator A had anything he needed The Defendant even

had Plaintiff make arrangements with the 4gers to get Senator

AU onto the field and into the owners suite

58 Additionallymiddot SLOAT made several political junkets to

Cuba In order to have the trips approved by the US

government Defendants described the trips as charitable

missions and artistic research trips SLOAT purchased thousands

of dollars of art while on his trips and he eventually

befriended several local Cuban artists In several occasions in

2010 and 2011 SLOAT invited and paid for the artists to travel

to his personal residence in the United States SLOAT used SHJs

money to pay for the travel The artists brought art to show and

possibly sell Defendant made arrangements for Assembly member

Complaint for Damages-14

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 15: Smira v Sloat lawsuit

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

A to at tend this private event in which no member of the

general public was allowed to attend

59 SLOAT acting as an agent of SHJ made arrangements

with the artist to sell Assembly member A a particular piece

of art at a deep discount from the asking price Asa favor to

Defendants an agreement was made to sell Assembly member A

the art at nearly 50 below the asking price The price was not

available to any member of the general public

60 The art was delivered to the SHJs offices and

Defendant directed SMlRAto contact Assembly member A tolet

him know his art was at the office and he could come pickmiddotmiddot it up

SMlRA objected and stated that she believed the deep discount

as well as the arrangement and delive~y of the art would

constitute a violation of the PRAShe suggested that Defendant

contact Legal Counsel to get his opinion of the legality of the

situation middotDefendant became very angry and told Plaintiff to

just do your job

61 Further Defehdants regularly hosted expensive

dinners at local restaurants that reportable individuals such as

legislators legislative staff and administrative staff would

attend SLOAT acting as an agent of SHJ would formally and

informally invite these individuals for private dinners attended

by the lobbyists employedbySHJ Defendants would almost always

pay with SHJs credit card and never requested reimbursement for

a gift by the legislator The dinners were always above the

$10 gift limit for a lobbyist

62 While these dinners were regularly occurring events

they were not often planned out well in advance Many times themiddot

dinner occurred the same day the invitation was extended Once

SLOAT invited a legislator legislative staffer or

administrative staffer to dinner he would calltext SMlRA and

Complaint for Damages-1S

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 16: Smira v Sloat lawsuit

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

direct her to make reservationsmiddot Plaintiff was then directed to

confirm with Defendant the other lobbyists qnd the legislator

legislative staffer or administrative staffer

63 SLOAT directed SMlRA to enter the charges for the

- dinner into SHJs QuickBooks as regular business expenses for

tax purposes and Plaintiff was directed to never request

reimbursement from the attendees

64 Plaintiff notified Defendant on many occasions that

this was an illegal action and a-violation of PRA At first

Defendant told her ~if I dont report and there is no written

record and they dont-report it-then it didnt happen As

Plaintiff contiued to complain defendant eventually told her

he had enough of her complaints and he directed her to hire a

low-level personal assistant to handle the scheduling of these

dinners so he never had to hear Plaintiff complain about it

again

65 Plaintiff took this as SLOATs escalation of his

threats toward her employment in retaliation for her complaints

66 SMlRA notified Defendant of her concerns about the

illegality of making-arranging and not reporting all of the

above mentioned gifts Each time Defendant expressed great

displeasure at Plaintiff for even suggesting he was acting

illegally

67 plaintiff is informed and believes and hereby

alleges that Defendant understood_the illegality of his action

because he attended regular Ethics Training courses where the

laws regarding gifts from lobbyists or lobbying firms were

thoroughly explained

68 In addition to the illegal campaign contributions and

unlawful gifts Plaintiff was thrust into further illegal

activity by Defendant and Employee

Complaint for Damages-16

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 17: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

II

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

69 In or around 2010 an Employee of Defendant began

divorce proceedings with his then wife (UEmployees Wife)

Defendant agreed to help the Employee hide income from

Employees wife the Internal Revenue Service (IRS) and the

FPPC They devised a plan to defer all of Employees bontlses

until after the divorce was final Defendant agreed to hold over

$400000 in bonus payments until after the divorce was final

Defendant agreed to then release the hidden bonuses and pay

Employee in two lump sum payments Defendant also agreed to

allow Employee to utilize the company credit card to make

personal purchases and not report them on Employee1s W2 as

compensation

70 Around this time Plaintiff advised defendant that

Employees reimbursement check for Employees leased Audi A7

should be reported on Employees W2 forms as taxable income

Defendant directed Plaintiff not to report the reimbursement as

part of Employees compensation Employee utilized the compariy

credit card for extensive personal charges including clothing

home goods food wine entertainment etc all of which are

supposed to be reported to the IRS as income on Employees W2

Plaintiff briefed Defendant that these credit card charges

should be reported as income to Employee Defendant directed

Plaintiff to enter them into the SHJ books asgeneral business

expenses for SHJ and not as income to the Employee Fearing for

her job Plaintiff complied

71 Defendants concealment of Employees income from the

IRS was in addition to the already ongoing concealment of

illegal gifts not reportable as business expenses from the IRS

and FPPC These were intentional acts and Plaintiff was given

specific directives by Defendant to enter charges into the SHJ

books in such a way as to deceive the IRS and the FPPC SMlRA

complaint for Damages-17

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 18: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

and SLOAT would annually go over the books prior to SMIRA

submitting them to the SHJ accountants

72 From early 2000 to August 21 2012 Plaintiff was

directed by Defendant to make illegal or purposefully neglectful

entries into the SHJ books on hundreds of occasions Each

illegal gift and all illegal campaign contributions were

reported to the IRS as business expenses

73 The conduct of Defendant caused Plaintiff to lose

sleep have severe stomach cramps lose weight suffer extreme

headaches and even lose patches of hair

74 In 2012 and a result of the extraordinary anxiety

that SMIRP_ was experiencing Plaintiff refused to continue to

participate in the above mentioned activities Consequently on

or about August 21 2012 Plaintiff received a letter from

Defendants notifying her of her immediate termination for

undisclosed reasons

JURISDICTION AND VENUE

75 This Court has jurisdiction over this entire action

because this is a civil action wherein the matter in controversy

exceeds $2500000 Venue is proper in Sacramento County

Superior Court since the principal place of business of Both

ORLEANS and SHJ is located in Sacramento County and both SMIRA

and SLOAD reside in Sacramento County

FIRST CAUSE OF ACTION

(Violation of Business and Professions Code section

17200 et seq)

76 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 75 inclusive as though fully

set forth herein

77 From 2000 to the present Defendant regularly hosted

elaborate fundraisers for various elected officials at his

Complaint for Damages-18

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 19: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2S

26

27

28

mansion At these fundraisers Defendants made contributions to

elected officials by providing catering expensive wine

decorations flowers imported cigars and high-end cognac

scotches and whiskeys Further Defendants did not charge a

rental fee to the elected officials campaign for the cost of

hosting the event at SLOATs mansion nor did Defendants charge

for the costs of labor to set-up host and clean-up

fundraisers The costs of the fundraisers were all in excess of

$50000

78 By making these contributions Defendants made nonshy

monetary campaign contributions in violation of Government Code

Sections 85702 and 91005

79 From 2000 to the present Defendants provided

Sacramento Kings tickets San Francisco Giants tickets San

Francisco 4gers tickets rounds of golf and concert tickets

valued in excess of $1000 to the Governors staff Senators

Assembly members andor legislative staff Defendants further

arranged for the delivery of the tickets delivered the tickets

made scheduling arrangements and confirmed attendance all acts

performed were in violation of Government Code section 86203

80 In 2011 Defendants arranged for a 50 discount for

the price paid for a piece of art bought by a legislator a

discount not available to the general public Such act being in

violation of Government Code section 86203

81 From 2000 to the present Defendants have regularly

invited arranged scheduled and paid for meals in excess of

$1000 -all acts done were in violation of Government Code

section 86203

82 Plaintiffs are informed and believe and thereon

allege that Defendants performed the above-mentioned acts for

the purpose of injuring Plaintiffs and other competitors

Complaint for Damages-19

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 20: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

83 Defendants continue to perform the above-mentioned

acts in violation of California Government Code sections 86203

85702 and 91005 By performing said actions Defendants are

engaging in an unlawful business practice and are therefore in

violation of sections 17200 et seq of the California Business

and Professions Code

84 As a proximate result of the above-mentioned acts of

Defendants ORLEANS has been deprived of the patronage of a

large number of its actual and potential customers at to its

damage in an amount in excess of the jurisdictional minimum of

the Court according to proof

WHEREFORE Plaintiffs pray for judgment against

Defendants as follow

1 For an order requiring Defendants and each of them

to show cause if any they have why they should not

be enjoined as set forth below during the pendency

of this action

2 For a temporary restraining order a preliminary

injunction and a permanent injunction all

enjoining Defendants from making campaign

contributions hosting fundraisers at Defendants

mansion residence or office making or arranging

gifts including meals tickets to events or any

other legally defined gift

3 For disgorgement of Defendants profits for the

period of liability

4 For civil penalties pursuant Business and

Professions Code section 17206

5 For treble damages

6 For costs of suit including reasonable attorneys

fees

Complaint for Damages--20

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 21: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

7 For any other and further relief as the Court deems

appropriate

SECOND CAUSE OF ACTION

(Declaratory Relief)

85 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 84 inclusive as though fully

set forth herein

86 By making campaign contributioristo elected

officials Defendants were in violation of Government Code

sections 85702 and 91005

87 By making arranging and delivering gifts Defendants

were in violation of Government Code section 86203

88 By arranging for a discount on a rare piece of art

not available to the general public the Defendant was in

violation of Government Code section 86203

WHEREFORE Plaintiffs seek judgment as follows

1 For a declaration that Defendants actions are in

violation of state law

2 For such other and further relief as the Court deems

appropriate

THIRD CAUSE OF ACTION

(Violation of Political Reform Act of 1974)

89 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 88 inclusive as though fully

set forth herein

90 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of the Political

Reform Act of 1974 by failing to keep detailed accounts

records bills and receipts of payments made and expenses

incurred in connection with activities which are reportable

including but not limited to following payments and expenses

Complaint for Damages-21

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 22: Smira v Sloat lawsuit

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

cash contributions rental fees to host fundraisers employees

labor costs to set up host and clean-up fundraisersi the cost

of catering decorations flowers expensive wine alcohol and

cigars at fundraisersi cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants ~nd San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners Defendants failure to keep detailed accounts

records bills and receipts was in violation of Government Codemiddot

section 86110

91 From 2000 to the present Defendants intentionally or

negligently violated reporting requirements of thePRAby

failing to provide all of the information required as to

activity expenses including without limitation rental fees to

host fundraisersi employeesmiddotlabor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount aIld the costs of expensive dinners

Defendants failure to provide all of the information required

as to activity expenses was in violation of Government Code

section 86110

92 From 2000 to the present Defendants intentionally or

negligently violation the reporting requirement of the PRA by

failing to include on invitations to candidates fundraisersor

letters attached to the invitations the statementmiddotattendance

at his event by a public official will constitute acceptance of

a reportable gift Defendants failure to include this

Complaint for Oamages-22

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 23: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

J4

15

16

17

18

19

20

21

22

23

24

25

26

27

28

statement on invitations was in violation of section 861123 of

the Government Code

93 From 2000 to the present Defendants intentionally

or negligently violating the reporting requirements of the PRA

by failing to provide the required information as to each

beneficlary of a reportable gift including without limitation

the following reportable gifts rental fees to host fundraisers

employees labor costs to set up host and clean-up

fundraisers the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a substantial

discount and the costs of expensive dinners Defendants

failure to provide the required information to each beneficiary

was in violation of Government Code section 861125

94 From 2 000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including without limitation rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to complete and verify a periodic report

was in violation of Government Code section 86113

Complaint for Damages-23

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 24: Smira v Sloat lawsuit

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

95 From 2000 to the present~ SHJ intentionally or

negligently violated reporting requirements of the PRA by

failing to complete and verify a periodic report which contains

a report of all activity expenses and contributions during the

reporting period including but not limited to cash

contributions rental fees to host fundraisers employees labor

costs to set up host and clean-up fundraisers the costmiddotof

catering decorations flowers expensive wine alcohol and

cigars at fundraisers cost of Sacramento Kings floor tickets

costs of rounds of golf costs of San Francisco Giants and San

Francisco 4gers playoff tickets cost of arranging sale of fine

art at a substantial discount and the costs of expensive

dinners SHJs failure to complete and verify a periodic report

was in violation of Government Code section 86114

96 From 2000 to the present SLOAT intentionally or

negligently violated reporting requirements of the PRA by

failing to file a periodic report which contains a report of all

activity expenses and contributions during the reporting period

including but not limited to cash contributions rental fees to

host fundraisers employees labor costs to set up host and

clean-up fundraisers the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisers

cost of Sacramento Kings floor tickets costs of rounds of

golfi costs of San Francisco Giants and San Francisco 4gersi

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

Defendants failure to file a periodic report was in viOlrtion

of Government Code section 86116 I

97 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

84300 made cash contributions in amounts of one hundred dollars

Complaint for Damages-24

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 25: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

($10000) or more The exact amount and dates of these

contributions are not presently known but Plaintiff will seek

leave of court to amend this complaint when the exact

information is ascertained

98 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of section 84304 of the

Government Code made anonymous contributions to a candidate

committee or any other person totaling one hundred dollars

($10000) or more in a calendar year The exact amount and

dates of these contributions are not presently known but

Plaintiff will ask leave of court to amend this complaint when

the exact information is ascertained

99 Plaintiffs are informed and believe and thereon

allege that Defendant in violation of Government Code section

86203 made gifts to persons aggregating more than ten dollars

($1000)in a calendar month including but not limited to

rental fees to host fundraisersi employees labor costs to set

up host and clean-up furrdraisers the cost of catering

decorations flowers expensive wine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs of

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners The

exact amount and dates are not presently known but Plaintiffs

will seek leave of court to amend this complaint when the exact

information is ascertained

100 Plaintiffs are informed and believe-and thereon

allege that Defendants in violation of Government Code section

86203 acted as an agent or intermediary in the making of gives

to persons aggregating more than ten dollars ($1000) in a

calendar month including but not li~ited to rental fees to

Complaint for Damages-25

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 26: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

host fundraisersi employees labor costs to set up host and

clean-up fundraisersi the cost of catering decorations

flowers expensive wine alcohol and cigars at fundraisersj

cost of Sacramento Kings floor tickets costs of rounds of

golf costs of San Francisco Giants and San Francisco 4gers

playoff tickets cost of arranging sale of fine art at a

substantial discount and the costs of expensive dinners

101 Plaintiffs are informed and believe and thereon

allege that Defendants in violation of Government Code section

86203 arranged for the making of gifts by any other person

aggregating more than ten dollars ($1000) in a calendar month

including but not limited to rental fees to host fundraisersi

employees labor costs to set up host and clean-up

fundraisersi the cost of catering decorations flowers

expensive wine alcohol and cigars at fundraisers cost of

Sacramento Kings floor tickets costs of rounds of golf costs

of San Francisco Giants and San Francisco 4gers playoff

tickets cost of arranging sale of fine art at a sUbstantial

discount and the costs of expensive dinners

102 Plaintiffs shall make a written request to the City

Attorney of the City of Sacramento California that he file a

civil action for damages based on the violations alleged herein

WHEREFORE Plaintiffs pray for judgment as follows

1 For damages in an amount to be determined at trial

representing the value of gifts contributions and

expenditures not properly reported under the

Government Codej

2 For damages in an amount to be determined at trial

which is three times the amount of each gift

contribution and expenditure made in violation of

the Government Code

Complaint for Damages~26

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 27: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3 For payment of 50 percent of the damages recovered

to Plaintiff and payment of the remaining 50 percent

to the General Fund of the State of California

pursuant to section 91009 of the Government Code

4 For costs of suit including reasonable attorneys

fees

5 For such other and further relief as the Court made

deem appropriate

FOORTH CAOSE OF ACTION

(Wrongful Termination in Violation of Public Policy)

103 Plaintiffs re-allege and incorporate hereby by

reference paragraphs 1 through 102 inclusive as though fully

set forth herein

104 From January 1 2000 to August 21 2012 SMIRA was

employed by SHJ as a Managing Assistant SMIRAs

responsibilities included registering SHJ as a lobbying firm

compiling and submitting the registration for SHJ lobbyists

coordinating the registration of SHJ clients as lobbyist

employers compiling and ~filing quarterly lobbying activities

and payment disclosure reports and coordinating and filing out

the quarterly lobbying employer reports Further SMIRA was

responsible for assuring that SHJ was in compliance with the

California Political Reform Act of 1974

105 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

reporting requirements of the PRA by not keeping detailed

accounts records bills and receipts of reportable gifts ~

contributions and expenses by failing to complete verify and

file these reports

106 From early 2000 to August 21 2012 Defendants

continually proposed and insisted that Plaintiff violate the

bull Complaint for Oamages-27

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 28: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

I

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contribution gift and expenditure limitations of the PRA by

acting as an agent or intermediary in the making of any gift of

more than ten dollars ($1000) in a calendar month and by

arranging for the making of any such gift The gifts that

Defendants insisted Plaintiff actas agent in the making of or

arranging for the making of include cash contributions rental

fees to host fundraisers employees labor costs to set up

host and clean-up fundraisersi the cost of catering

decorations flowerse~pensivewine alcohol and cigars at

fundraisers cost of Sacramento Kings floor tickets costs o~shy

rounds of golf costs of San Francisco Giants and San Francisco

4gers playoff tickets cost of arranging sale of fine art at a

substantial discounti and the costs of expensive dinners

107 Further beginning in or around 2010 Defendants

continually proposed and insisted that Plaintiff hide and

Employees income and Defendants illegal gifts from the IRS and

the FPPC

108 In or around August 2012 Plaintiff refused to

participate in any manner in the violations of the PRA as

alleged herein and refused to participate in the illegal

concealing of income and gifts from the IRS-and the FPPCas

also alleged herein

109 The actions Defendants ordered Plaintiff to engage

in would be in violation of Government Code sections 86110

86112 861123 861125 86114 86116- 84300 84304 and 86203

the United States Internal Revenue Code and Government Code

section 83100 et seq

110 As a proximate result of Plaintiffs refusals and

conduct as set forth above in paragraph lOB Defendants

terminated Plaintiffs employment on August 21 2012

Complaint for Oamages-28

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 29: Smira v Sloat lawsuit

5

10

15

20

25

1

2

3

4

6

7

8

9

11

12

13

14

16

17

18

19

21

22

23

24

26

27

28

111 As a proximate result of Defendants conduct

Plaintiff has suffered harm including lost earnings and other

employment benefits humiliation embarrassment and mental

anguish all to her damage in an amount to be established at

trial

112 In doing the acts set forth above Defendants knew

that the conduct that they would have required of Plaintiff was shy

unlawful and required Plaintiff to choose between violating the

law and losing her job Notwithstanding this knowledge

Defendants subj ect-ed Plaintiff to cruel and unjust hardship in

conscious disregard of Plaintiffs rights by insisting Plaintiffmiddot

violate the law a1d terminating Plaintiffs employment whenshy

Plaintiff refused to do ~o and castigating Plaintiff in front

of her colleagues and co-workers This malicious and oppressive

conduct justifies and award of punitive damages in an amount

sufficient to punish Defendants and deter others from engaging

in similar conduct

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For damages for bieach of contract according to

proof

2 For compensatory damages for lost wages benefits

and emotional distress according to proof

3 For interest on lost earnings and benefits at the

legal rate

4 For punitive damages in an amount appropriate to

punish Defendants and deter others from engaging in

similar conduct

S For costs of suit incurred and

6 For such other and further relief as the Court deems

appropriate

Complaint for Damages-29

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 30: Smira v Sloat lawsuit

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

FIFTH CAUSE OF ACTION

(Defamation)

113 Plaintiffs r~-allege and incorporate hereby by

reference paragraphs 1 through 112 inclusive as though fully

set forth herein

114 In or around November 2012 SLOAT spoke the

following words of and concerning SMIRA that SMIRA had

committed improprieties against Defendants including felony

theft

115 The words were heard by prospective employers and

members of the community

116 These words were slanderous per se as they accuse

Plaintiff of committing the crime of theft

117 The words uttered were a false statement because

Plaintiff has not at any point committed the crime of theft

against Defendants

118 As a result of the above-described words Plaintiff

has suffered general damages to her reputation

119 As a further proximate result of the slanderous and

untrue statements of SLOAT Plaintiff has suffered injury to her

business trade profession and occupation according to proof

120 AS a further proximate case of the slanderous

statements of SLOAT Plaintiff has suffered extreme emotional

and physical distress according to proof at trial

121 The above-described words were spoken by SLOAT with

malice oppression and fraud in that SLOAT knew that SMIRA haa

not committed theft yet he made the defamatory statements in his

effort to punish Plaintiff and to silence her from revealing the

violations of the PRA as alleged herein An award of exemplary

and punitive damages is appropriate

complaint for Damages-30

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f

Page 31: Smira v Sloat lawsuit

1

2

3

4

5

6

7

8

9

10

11

12

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WHEREFORE Plaintiff prays for judgment against

Defendants as follows

1 For general damages according to proof

2 For special damages according to proof i

3 bull For punitive damages

4 For costs of suit incurred herein

5 For such other and further relief that the Court

deems appropriate

DATED December 24 2013

Je s~r Ortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

DEMAND FOR JURY TRIAL

Plaintiffs hereby demand and request a trial by jury in

this matter

Dated December 24 2013

J~ea~ Law

Jeortiz Attorneys for Plaintiffs Rhonda Smira and Orleans Consulting Group LLC

Complaint for Damages-31

f