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Wednesday, June 28, 2017

IF IT'S A DAY THAT ENDS IN A “Y”, THEN ZIA SHLAIMOUN AND ROBERT BUCKHANNON ARE SCAMMING!

Notorious international con artist Zia Shlaimoun just made a rookie mistake—he left a paper trail about a beef with his commercial landlord.

Yes, Mr. “Ill-Gotten Gains”, slapped in 2014 with a $4.75 million civil fraud judgment, tried to skip out on $11,998 in back rent and late fees he owed for an office suite that formerly housed Goldstar Laboratories Missouri, LLC, a clinical testing lab scam business he ran with federally-indicted hedge fund fraudster Robert L. Buckhannon. 

The case was filed on January 17, 2017 by Shlaimoun's former landlord, St. Louis, Missouri based Heyde Management, LLC. Court records show that although Shlaimoun ultimately paid Heyde $11,957, he still owes $167.25 in unsatisfied judgment interest.

If Shlaimoun had stiffed Heyde Management, it would have found itself at the end of a very long line of creditors: on March 15, 2017, Zia Shlaimoun abruptly filed a Chapter 13 bankruptcy petition in the Central District of California just prior to the fourth day of what Orange County Superior Court civil trial documents describe as an “unlawful detainer action”. 

Yes, Shlaimoun did what Wall Street ballers call a “strategic bankruptcy”.

I just call him a deadbeat looking to stall a civil action and escape his debts! 

HERE COMES MALIBU-BOO!  

Briefly, a Superior Court complaint was filed against Shlaimoun by the plaintiff on November 23, 2016, with Shlaimoun responding on December 13, 2016. 

After months of foot-dragging, due primarily to Shlaimoun refusing to participate with pretrial discovery, the trial began on March 13, 2017 and was conducted the next day, March 14. 

On March 15, 2017, testimony resumed at 9:30 a.m. However, although no one participating in the trial is given notice, Shlaimoun’s Chapter 13 bankruptcy petition was filed at 1:27 p.m that afternoon.  An automatic stay went into effect, prohibiting most creditors from continuing with collection activities.

The civil case involved Shlaimoun’s failure to pay the monthly $18,500 rent on a home he was living in with his wife, Oussha, not a party to the bankruptcy. 

The Shlaimouns stopped paying rent within days after the death of the home’s owner, and produced a purported “Lease Extension & Property Purchase Agreement” they’d allegedly executed with the late owner—an option agreement that entitled the Shlaimouns to purchase the property for $4,800,000, when the home was worth approximately $7,000,000. 

Shlaimoun’s ghoulish defense for not paying rent? 

He asserted to the widow that the so-called “option agreement” negated any rent payments because the Shlaimouns had exercised their option to purchase the home, which allowed them to remain in the home without paying any additional rent.

Sounds more like the “sorry your husband’s dead, but I have a below fair market value purchase agreement—screw you” legal defense. (I must have read about it in a Grisham novel.)  

NO MONEY, MO PROBLEMS

On May 25, 2016, an attorney for Jan Properties, Goldstar's landlord at its former Ballwin, MO office, filed a petition for “rent and possession” of their Sovereign Court location. After ducking three hearings, a default judgment was entered against Goldstar on June 22, 2016 ordering Shlaimoun and Buckhannon's lab to vacate. 

More recently, on May 1, 2017, Goldstar Laboratories Missouri LLC was sued by the Laboratory Corporation of America, with motion hearing scheduled for 9:00 a.m. on July 28, 2017. Laboratory Corporation is seeking an unspecified default judgment against Shlaimoun's Goldstar.

So can someone please tell me how these two con artists would have come up with millions to buy a California lab from Advanced Biomedical?

More about that in a minute. 


THE “CROOKED CHIROPRACTOR” GETS EVICTED FROM HIS ST. LOUIS LOFT 

Shlaimoun's not the only one who likes to save money by not paying his bills! His partner in crime, Battle Creek's notorious “crooked chiropractor” Robert Buckhannon, apparently likes to fleece a landlord or three.

On July 18, 2016, Buckhannon's landlord, Asprient Properties, filed a rent and possession action against him in St. Louis for non-payment of rent on a two-bedroom condo in the Ely Walker Lofts building, shown above.

Buckhannon, formally served on July 26, 2016, was later evicted.

TRUST ME, WE'VE GOT MILLIONS (EVEN THOUGH I JUST GOT EVICTED)!

On August 22, 2016, Zia Shlaimoun and Robert Buckhannon submitted declarations on behalf of an alleged California-based, seven-figure Goldstar Laboratories LLC/Advanced Biomedical, Inc. testing lab acquisition. An attorney representing Advanced Biomedical, Inc. filed evidentiary objections on August 31, 2016 to the Shlaimoun/Buckhannon declarations, extensively detailing doubts on the duo and the credibility of their declarations. 

Here are the declarations of Robert Buckhannon and Zia Shlaimoun, as filed with the court on August 22, 2016. 

I, ROBERT L. BUCKHANNON, pursuant to 28 U.S.C. § 1746, hereby declare that the following is true: 

 l. All facts set forth herein are based upon my personal knowledge. If were called to testify, I could and would testify competently to the facts set forth herein. 

2. I am the Director of New Business Development and an employee of Goldstar Laboratories LLC ("GS"). 

3. As a result of an agreement between GS and PLS, during the middle October 2015, I started working to increase utilization of PLS’s laboratory services. As a result of my efforts I was able to acquire new referral sources that represented more than 250 additional patient samples per month for PLS. These translated into significant new net revenue for PLS. 

4. I also worked with my team to establish new procedures and to fix existing procedures related to the way in which specimens were logged in at PLS, change the way reports we generated and delivered to referring clinicians by PLS and established protocols to ensure accurate and complete billing procedures for PLS. 

5. I also brought in billing professionals to analyze and suggest methods to increase efficiency and accuracy of the billing and posting of payments at PLS. 

6. I also suggested an implementation plan to upgrade the Laboratory Information System so as to more effectively disseminate information both to and from referring clinicians' offices and to the billing team so as to maximize collections on services performed by PLS. 

7. Additionally, I was present during the negotiations with Dr. Karimi and his counsel Mr. Gardner, and Mr. Shlaimoun. 

8. I have personal knowledge and am a witness to the agreement that was signed involving GS and PLS on October 20, 2015, wherein, GS was to purchase and own 80% of PLS as part of its reorganization plan. 

9. I have personally reviewed the disclosure statement on file with this Court and it is far from full disclosure and the truth. Both Karimi and his lawyer Gardner knew of GS's written agreement which valued the company at $2,400,000.00 and GS's offer to purchase 80% of the company for $1,920,000.00. This would have allowed for all creditors' to be paid in full and the company to be debt free within a few years after confirmation of the Plan. 

Executed this 22nd day of August, 2016 at St. Louis, MO. I declare under the penalty of perjury under the laws of the United States that the foregoing is true and correct. 


I, ZIA SHLAIMOUN, pursuant to 28 U.S.C. § 1746, hereby declare that the following is true: 

1. All facts set forth herein are based upon my personal knowledge. If I were called to testify, I could and would testify competently to the facts set forth herein. 

 2. I am the Managing Member of Goldstar Laboratories LLC (“GS”). I hold 100% of the equity interest in GS. GS is a Party in Interest in this case. 

3. In 2015 my company, GS, in an effort to expand its services and footprint in the United States, was looking to acquire other Laboratories such as the Debtor’s Laboratories. 

4. In October 2015 GS was looking to purchase a clinical laboratory in California and came across Advanced Biomedical Inc. d.b.a. Pathology Laboratory Services (PLS) being advertised for sale. 

5. Through an agent for PLS, I was introduced to the owner Cyrus Karimi (Karimi). During our discussions he did represent that he was in bankruptcy and currently going through Chapter 11 reorganization. 

6. I am not familiar with the Chapter 11 process or procedures. 

7. Sometime around the second week of October 2015, I met with Karimi and his lawyer Mr. Dixon Gardner, who is counsel of the Debtor. Dr. Rob Buckhannon, who is GS’s Director of New Business Development, was present during this meeting. 

8. In this meeting we discussed bringing in our laboratory processes and procedures and marketing power in an effort to increase revenues to PLS and potentially acquire 80% of PLS. At the time PLS was being grossly mismanaged and not able to meet its ongoing obligations. 

9. A number of items were agreed upon during the meeting, which was memorialized into a Confidential Memorandum of Understanding (the “Agreement”), which is being provided to this Court as Exhibit "A". Due to issues of confidentiality a copy will only be provided to Chambers and the United States Trustee’s office. 

10. The Memorandum was memorialized on October 20, 2016 and signed by myself and Mr. Karimi. 

11. Under the Agreement, it was agreed that GS would start representing PLS and that a portion of the profits made each month would go towards purchasing 80% of PLS upon the PLS Bankruptcy Plan being confirmed. 

12. Under the Agreement GS was to provide PLS marketing services. PLS was to process some of the laboratory work or samples of business generated by GS and reference the remainder to other laboratories, which is a common and customary practice in the industry. 

13. The Agreement clearly spelled out the profit share formula, which was 80% of the net profit paid to GS and 20% of the net profit paid to PLS. Furthermore, the Agreement specified that upon confirmation of the bankruptcy plan GS and PLS would enter into a subsequent agreement in which GS would purchase 80% of PLS. The parties agreed the value of PLS would be set at $2.4 million dollars following confirmation for purposes of the Agreement. Pursuant to the agreement $1.92 million dollars would be paid from the GS's share of profits over time as defined by the Agreement. Out of the $1.92 million dollars that would be paid to PLS for the acquisition, the creditors would be paid whatever the bankruptcy plan provided for. Pursuant to the Agreement in exchange for GS’s investment and efforts GS would receive an 80% commission, 50% of which would be applied to its purchase of PLS. These funds were to be used to pay down creditor claims in full. 

14. I also understood that the Agreement was to be disclosed in the bankruptcy proceedings and subject to Court and creditor approval. 

15. As soon as the Agreement was signed GS began to provide marketing services to PLS. Dr. Buckhannon began managing new business development for PLS and began updating PLS’s internal operations so that PLS would start turning a profit within 90 days. 

16. GS paid out over $250,000 for marketing projects to increase the revenues of PLS. 

17. In addition to its marketing efforts GS purchased for PLS equipment worth $80,000 for allergy testing, which PLS did not have and Dr. Karimi wanted. Once Karimi saw the profits rise in PLS, as can be seen from the Monthly Operating Reports. Karimi breached the agreement without justification, told GS and Dr. Buckhannon that they were no longer welcome on the premises and locked them out and wanted to change the Agreement although it had already been signed. 

18. Karimi had stated prior to March 2016 plan confirmation would be completed within weeks and everything was on schedule. However, to this date GS has never received its rightful commissions under the Agreement, which are estimated to be well over $500,000.00. 

19. Unfortunately, Dr. Karimi decided to spend all of the money earned after the Agreement and not pay GS. Further, from a cursory review of the monthly operating reports there appears to be certain anomalies such as payment of laboratory chemicals under an individual’s name, (no last name mentioned). Laboratory chemicals can only be purchased from licensed businesses, not individuals as they are regulated. 

20. I have tried for months now to get a hold of Karimi and his lawyer on the status of the case and the Agreement and all efforts have failed. Attorney Gardner was aware of our intention to enter in to agreement with Karimi and should have known about the valuation of the company at $2,400,000.00, which personally Karimi arrived at. 

21. Additionally, I can show in the month of December 2015 GS brought in a substantial amount of business estimated to be in excess of $500,000 in gross billing. The total number is not yet known as all charges had not been posted to the reports that we were provided and we were never provided the total amount of reports of which Karimi only appears to have collected an amount of $184,000 in a report that was ran in February for collections for December and January. There is potentially significant more monies that would have been collected from GS marketing efforts. Those monies should be apparent in the billing and collection reports within the PLS billing and collection software programs. Of these amounts, GS was is to receive 80% of the net amount as a commission. 

22. I have many of these reports in my records and can make them available to the Court and trustee. 

23. Karimi appears to have mismanaged the business and not been forthcoming with the Court and the Debtor’s creditors. A Trustee should be appointed and I will make an offer to purchase this business 100% and an effort to satisfy all creditors in this case. 

Executed this 22nd day of August, 2016 at Irvine, CA. I declare under the penalty of perjury under the laws of the United States that the foregoing is true and correct. 

Christ on a crutch! These two have no shame.

More to come about this story...

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