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UNITED STATES DISTRICTCOURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
GEORGIA POULOS, individually and as
Co-Trustee of the Georgia Poulos Inter Vivos
Trust, NICK POULOS, as Co-Trustee of the
Georgia Poulos Inter Vivos Trust Dated
May 29, 1996, and Anastasios Poulos,
Co-Trustee of the Georgia Poulos Inter Vivos Trust
and Beneficiary, Antonios Poulos, Beneficiary of the
Georgia Poulos Inter Vivos Trust, and Basilios Poulos,
Beneficiary of the Georgia Poulos Inter Vivos Trust Agreement
Dated May 29, 1996,
Plaintiffs,
v. Case No: 8:15-cv-888+27-TBM
ROLAND WALLER, an individual, John Taylor, , DEPOSITION
an individual, Matthew Ellrod, an individual,
George Malacos, an individual, Michael Malacos, i ;)'811
an individual, Vince Christian, an individual,
Robin Sweller, an individual,Lynn Gilbert, an individual, I I-
Joni Buscema, an individual, Paula O'Neil, Clerk ofthe Circuit Court
in Pasco County, et aI, Individually and through her official capacity,
Regions Bank Inc, a Alabama corporation,
Old Republic National Title Insurance Company,
a Minneapolis corporation, Waller & Mitchell, P.A.,
a Florida professional associations, all persons unknown claiming
any legal or equitable right, title, estate, lien, or interest in the property
described in the Complaint adverse to Plaintiffs title or any cloud on
Plaintiffs title thereto, and Does 1 through 50, inclusive,
Defendants.
------------------------------------~/
AMENDED COMPLAINT
COMES NOW plaintiffs, Georgia Poulos, individually and as Trustee ofthe Georgia
Poulos Inter Vivos Trust Agreement, Co-Trustee Nick Poulos and the Trust Beneficiaries
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Anastasios, Antonios and Basilios Poulos (hereinafter collectively "plaintiff" or "Poulos" or
"Trustee") by and through the undersigned counsel and files this Complaint against defendants.
I. This case involves a conspiracy to file frivolous lawsuits and to create and record
Fraudulent title documents and to sell property stolen from the Georgia Poulos Trust and to
obtain illegal mortgage loan proceeds. The defendants devised and implemented a scheme to
defraud mortgage lenders and property owners of money and property, including Regions Bank
and the Georgia Poulos and the Nick Poulos Revocable Living Trusts. The Defendants sought to
obtain money and property by means of false and fraudulent pretenses and representations.
Waller's scheme involved using straw buyers to apply for mortgage loans for residential real
estate transactions that mayor may not have involved the actual transfer of ownership of the
property. Waller and others used the mortgage loan proceeds from these transactions to enrich
themselves and to perpetuate the scheme.
2. This is a mortgage fraud I identity theft case in which the defendants and their co
conspirators fraudulently obtained mortgage loan proceeds by arranging fraudulent real estate
transactions in which individuals using stolen and fictitious identities presented themselves at
staged real estate closings as buyers, sellers, and/or their representatives for the purpose of
obtaining the mortgage loan proceeds that were to be "paid" to the purported sellers. The
defendants and their co-schemers arranged these fraudulent real estate transactions without the
actual property owners' knowledge or consent. Moreover, the actual purported purchasers were
unaware that their identities were being used to purchase the subject properties. Nevertheless,
conspiring lenders provided mortgage financing for the transactions, which the co-schemers
obtained as sellers' proceeds.
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3. This was and is a conspiracy involving many players and a large number of false,
fraudulent and forged documents, including fictitious deeds, trust deeds, mortgage loans,
security agreements, corporate operating agreements and judicial orders. But it is, at its core, a
fairly simple case: the defendants and their co-conspirators engaged in lies and omissions
designed to induce lenders such as Regions Bank to fund mortgages for properties that the
defendant borrowers did not own, located in Pasco County, Florida. Absent the lies and
omissions, the lenders would not have funded the mortgages. And, absent the mortgages, the
defendants and their coconspirators would have been unable to unjustly enrich themselves.
4. It was the purpose of the scheme to falsely and fraudulently obtain control ofreal
property owned by others, in order to sell the property to co-conspirators and ultimately third
parties and collect the proceeds of the sale. The defendants would record fraudulent deeds with
the Pasco County Clerk's Office, so that it would appear that the Poulos Property had been
deeded to shell companies controlled by the defendants. Once the fraudulent documents were
recorded in the chain of title, the co-schemers would pose as the new owners and refinance the
property and try to sell plaintiffs' property.
5. It was a further part of the conspiracy that Defendants Waller, Ellrod, Taylor and
Christian sought to steal additional equity from plaintiffs' property through fraudulent refinance
loans and other fraudulent business lines of credit. It was a part of the conspiracy that
defendants, Roland Waller, Matthew Ellrod, Robin Sweller, John Taylor, Vince Christian, and
others caused defendant Malacos to obtain multiple loans on Plaintiffs' 6330 Clark Street,
Hudson, Florida 34667 Property (commonly known as "Hudson Beach Estates, Unit 4") even
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though defendant Malacos was not the owner of the property, but rather a holdover insolvent
commercial tenant facing eviction. In order to induce lenders to lend money to Straw Borrowers
such as Malacos, defendants Waller, Ellrod, Taylor and Christian submitted and caused to be
submitted fraudulent documents to the lenders that made it appear that Straw Borrowers owned
or were purchasing the Plaintiffs' property.
6. It was a further part of the conspiracy that Defendants Waller, Ellrod, Taylor and
Christian sought to steal additional equity from plaintiffs' property through fraudulent refinance
loans and other fraudulent business lines of credit. Upon information and belief, Waller,
Malacos, Taylor, Ellrod and Christian used Plaintiffs unencumbered commercial properties
located in Pasco County to form part of a real property collateral package to secure cross
collateralized loans of over a million dollars from Regions to Roland Waller and George
Malacos and or their corporate and or trust nominees.
7. The conspirators sought to steal the equity Nick and Georgia Poulos acquired
over thirty-four years of ownership of the subject property, which was paid off in 1998 and
mortgage free until George Malacos and the other participants sought to enrich themselves by
unilaterally and fraudulently executing documents of sale and other legal instruments purporting
to grant and/or convey interests in the trust property in order obtain loans and credit using the
trust property as collateraL
PARTIES
8. Plaintiff GEORGIA POULOS is an individual who resides in Pasco County,
Florida. Mrs. Poulos is the active Trustee of the Georgia Poulos Inter Vivos Trust Agreement.
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At all times material to this cause of action, Georgia Poulos was and is a citizen of the State of
Florida. l [Please see exhibit (ltA")].
9. Plaintiff NICK POULOS is an individual who resides in Pasco County, Florida.
Mr. Poulos is the husband of Georgia Poulos and co-trustee of the Georgia Poulos Inter Vivos
Trust Agreement. At all times material to this cause of action, Nick Poulos was and is a citizen
ofthe State of Florida.
10. Plaintiffs, ANASTASIOS POULOS, ANTONIOS POULOS and BASILIOS
POULOS are the sons of Nick and Georgia Poulos and the Beneficiaries of the Georgia Poulos
Inter Vivos Trust Agreement. Anastasios, Antonios and Basilios Poulos are also co-trustees of
the Georgia Poulos Inter Vivos Trust in that order. Anastasios Poulos is a Co-Trustee of the
Georgia Poulos Inter Vivos Trust Agreement Dated May 29, 1996 and Co-Trustee and
beneficiary of the Nick Poulos Irrevocable Trust Agreement dated May 29, 1996. At all times
material to this cause of action, ANASTASIOS POULOS, ANTONIOS POULOS, and
BASILIOS POULOS were citizens of the State of Florida and remain so today.
11. Defendant REGIONS BANK C'Regionstl) was a financial institution with offices
located throughout the United States, including in the State of Florida, and whose accounts were
insured by the Federal Deposit Insurance Corporation ("FDIC"). Defendant Regions is a foreign
corporation organized under the laws ofthe State ofAlabama with its principal place of business
located in Birmingham, Jefferson County, Alabama.
I Exhibit Numbers are taken from the volume of exhibits submitted with Plaintiffs previously filed complaint:
Georgia Poulos Trustee et aI.. v. Regions Bank Incorporated, Case No. 8:14-cv-02481-VMC-EAJ. Exhibits 1-15
have been added for this complaint.
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12. VINCE CHRISTIAN (hereinafter referred to as "Christian") is an individual who
resides in Ocala, Florida and is an agent of Regions Bank. More specifically, in 2013, Mr.
Christian was a Vice-President and a Branch Manager at a Regions Branch located in Ocala,
Florida. Mr. Christian served as a loan officer that processed loans for Regions Bank.
13. Defendant - MALACOS INC. is a Florida Corporation. The address of
Defendant's principal place of business is 6330 Clark Street, Hudson Beach, FL 34667 and is
located in Pasco County.
14. Defendant - GEORGE MALACOS (hereinafter referred to as "Mr. Malacos" and
or "Malacos") - is the President of MALACOS INC. and is an individual who resides in Pasco
County. Any reference to Mr. Malacos in the Complaint set forth herein shall be construed as an
act on behalf of MALACOS INC. At various times relevant to Plaintiffs complaint, George
Malacos, aJk/a "George Michael Malacos," aJk/a "Patrick Sullivan," aJk/a "Stephen Matis," aJk/a
"Rick Leone,II the defendant, coordinated the use of the various straw identities to purportedly
buy property using commercial mortgage loans. On occasion, to further the scheme to defraud,
Malacos provided his contact information to mortgage brokers and mortgage lenders to provide
verification of the loan application information of the straw identity being used as the buyer for
a particular property. Malacos knowingly provided false information on mortgage loan
applications and filed and recorded false and fraudulent documents with the Pasco County
Clerk's Office. In addition, Malacos knowingly executed a false and fraudulent trust deed and
trustee affidavit and knowingly signed a false and fraudulent HUD-l Settlement Statement
[Plaintiffs Exhibit ("A")].
15. Defendant - MICHAEL MALACOS aJk/a MICHAEL DAVID MALACOS is an
officer of Malacos Inc., and Malacos Holdings, both Florida Corporations. Michael Malacos is a
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resident of Florida and resides in Pasco County, Florida. Upon information and belief, Michael
Malacos has further the criminal conspiracy described below as either a straw buyer or nominee
seller. In addition, it is believed that he recruited others, including family members to act as
straw buyers. Upon information and belief, Michael Malacos created and submitted false and
fictitious documents with the Pasco County Clerk's Office in furtherance of the Defendants
criminal conspiracy.
16. Defendant MAITHEW ELLROD ESQ. (hereinafter referred to as "Mr. Ellrod"
and or "Ellrod") - is an individual who resides in Pasco County. Further, Mr. Ellrod is a licensed
Florida attorney and practices law primarily in Pasco County at the Law Offices of Matthew
Ellrod, P.A. Mr. Ellrod posed as a "straw seller" or "nominee seller" of the Poulos Trust
Property known as Hudson Beach Estates Unit 4 and knowingly verified information to be true
and signed a false and fraudulent HUD-l Settlement Statement as the seller of property he did
not own.
17. Defendant ROLAND D. WALLER ESQ. (hereinafter referred to as "Mr.
Waller" and or "Waller") - is a citizen of the State of Florida and resides in Pasco County.
During all times relevant to the claims alleged, Waller used numerous alias identities, including
"Ronald D. Waller," "Ronald C. Farchione," "Ricky Leone," and it is Plaintiffs belief based on
records reviewed that Mr. Waller's spouse has also assumed numerous identities, including
"Sharon L. Farchione". Further, Mr. Waller is a licensed Florida attorney and practices law
primarily in Pasco County at the Law Firm of Waller & Mitchell, P.A. Also, Mr. Waller acts as
an agent ofOLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY and provides title
insurance services as the former's agent. Lastly, Mr. Waller was a licensed mortgage broker in
the State of Florida from July 10, 1992 to August 31,2003. The Defendant ROLAND WALLER
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was also a real estate investor who used multiple Straw Corporations and Straw Buyers to
purchase and sell some ofthe properties. Waller acted as an attorney representing Straw Buyers
and Straw Corporations in fraudulent real estate transactions with respect to the Poulos
properties referenced in Plaintiffs complaint.
(A) Defendant Roland Waller knowingly executed and attempted to execute the
aforesaid scheme and artifice to defraud lenders and to obtain money and funds, under the
custody and control of Regions Bank, by means of false and fraudulent pretenses in that
Defendant Roland Waller, aided and abetted by co-schemers Matthew Ellrod and George
Malacos, caused Regions and other lenders to extend a $701,250.00 loan to Malacos, under the
pretense that the loan was a commercial loan secured by commercial income producing
properties in Pasco County, Florida.
(B) Upon information and belief Roland Waller through Waller & Mitchell, P.A., and
with the help of employees and agents of Waller & Mitchell, P.A., and as an agent of Old
Republic National Title Insurance Company prepared and caused to be prepared, materially false
and fraudulent title commitments certifYing that certain nominees in the real estate transactions
owned the real properties involved, when in truth, these nominees did not own the properties at
the time. These title commitments were submitted to banks and other lending institutions to
induce them to make mortgage loans to George Malacos and or a Malacos related corporate
nominee and or to a bogus fictitious Malacos Family trust. In addition, title commitments were
issued to George Malacos d/b/a INN ON THE GULF.
(C) Defendant Waller prepared deeds. mortgages and notes for Malacos in his false
identities and then those deeds, mortgages and notes were recorded in the official land records of
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Pasco County, Florida as well as in the records ofHernando and Bay Counties, which concealed
Malacos's ownership and control of properties.
(D) Upon information and belief, Mr. Waller was also an active participant in the
Enterprise as a seller and buyer in nominee and flip transactions. Waller prepared deeds,
mortgages and notes for Malacos in his false identities and then those deeds, mortgages and
notes were recorded in the official land records of Pasco County, Florida. as well as in the
records of Hernando and Bay Counties, which concealed Malacosts ownership and control of
properties.
(E) Waller then entered into land purchase and sale contracts for properties, using his
false identities. Waller and or his nominees obtained loans from financial institutions to finance
purchases ofthe properties.
(F) Waller participated as buyer, seller, and or borrower through use ofhis false
identities in property settlements.
18. Defendant WALLER & MITCHELL, P.A. is a Florida Law Firm with an office
located at 5332 Main Street, New Port Richey, and Florida 34652.
19. Defendant - OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
(hereinafter referred to as "Old Republic" or "ORNTIC") - Old Republic National Title
Insurance Company is a corporation organized under the laws of the State of Minnesota with its
principal place of business in Minneapolis, Minnesota. Old Republic is a title insurance
company licensed to do business in the State of Florida. Old Republic operates through a
national network of offices, affiliates, authorized agents, and attorneys. Old Republic's local
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office has an address of 1410 N. West Shore Blvd #800, Tampa, FL 33607 and is located in
Hillsborough County.
20. Defendant - JOHN TAYLOR ESQ. (hereinafter referred to as "Mr. Taylor" and
or "Taylor") is an individual who resides in Orlando. Florida. The Defendant John Taylor was
also a purported real estate investor who used multiple Straw Corporations and Straw Buyers to
purchase and sell some of the properties. Taylor acted as an attorney representing Straw Buyers
and Straw Corporations in fraudulent real estate transactions with respect to the Poulos
properties referenced in Plaintiffs complaint. Furthennore, Mr. Taylor is a licensed Florida
attorney and practices law at the Law Finn of Anthony, Fasset, & Taylor, P.A. Taylor is a
licensed loan originator in the State of Florida and fonnerly licensed mortgage broker in the
State of Florida.
(A) John Taylor, Esq. (hereinafter "Taylor" or "Bank Defendants" or "Regions
Defendants") serves as the trustee under the fictitious Mortgage and Deed of Trusts issued to
Regions Bank. Mr. Taylor served as a loan originator for various lenders including Regions
Bank and created and recorded many of the fraudulent mortgage loan documents used by the
Enterprise, including the fraudulent UCC Financing Statements, which were recorded with the
Florida Department of Secured Transactions Registry.
(B) Upon infonnation and belief, Taylor facilitated the submission to Regions Bank
of many of the fake and fraudulent loan documents used by the Enterprise.
21. Defendant - ROBIN SWELLER (hereinafter referred to as "Ms. Sweller" and or
"Sweller") is an individual who resides in Pasco County. Furthennore, Ms. Sweller was an agent
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of the Law Finn of Waller & Mitchell, P.A. And, Ms. Sweller is a fonner licensed mortgage
broker in the State of Florida.
(A) Sweller prepared deeds, mortgages and notes for Malacos in his false identities
and then those deeds, mortgages and notes were recorded in the official land records of Pasco
County, Florida, which concealed Malacos's ownership and control of properties.
(B) Sweller conducted property settlements in which Malacos, Waller as well as
other straw buyers participated as buyers, sellers and or borrowers through the use of false
identities which Sweller concealed from the lenders.
(C) Sweller failed to conduct the settlement transactions as described on the
settlement statements;
(D) Sweller paid over the seller's proceeds as Waller directed.
22. Defendant - URBAN REALTY SOLUTIONS (hereinafter referred to as "URS")
- is a foreign corporation that provides real estate appraisals and serves commercial real estate
markets of the southeastern United States and the Caribbean. H. LINWOOD GILBERT JR.
(hereinafter referred to as "Mr. Gilbert") is an individual who resides in Hillsborough County,
Florida. Mr. Gilbert is a real estate appraiser who is licensed in the State of Florida. Mr. Gilbert
is an agent ofURS.
23. Defendant * PAULA O'NEIL, Clerk of the Circuit Court, Pasco County, is a
governmental entity doing business on behalfofthe State ofFlorida.
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24. Defendant - JONI BUSCEMA is an individual who resided in Pasco County,
Florida and is a licensed Notary Public of the State of Florida. Mrs. Buscema was the former
legal assistant to George Klimis, Esq. Mr. Klimis was Georgia and Nick Poulos' Estates
Planning and Transactional Attorney and drafted all of the Poulos Family's Trust and Estates
documents. Sadly, Mr. Klimis past in 2010. As his legal assistant Mrs. Buscema had intimate
knowledge of the Poulos Trust Documents as demonstrated by the many notations and hand
written notes executed by Mrs. Buscema contained in the original records of Georgia Poulos.
Mrs. Buscema served as a witness to many of the Poulos Trust documents and Trust Deeds. In
furtherance of the defendants scheme to defraud Mrs. Buscema executed a false and fraudulent
Trust Deed and Trustee Affidavit for Defendant George Malacos in the same style and fashion
as the Poulos Trust Deeds, which were executed by Buscema's former boss and Poulos Trust
Attorney. [Please see fictitious trust deed, affidavit and Buscema documents attached as exhibit
(1)].
25. POULOS is informed and believes and on that basis alleges that in addition to the
individuals identified above, other unnamed individuals within the Malacos and Waller
organizations participated in and provided assistance in furtherance of the fraudulent schemes
described in detail herein.
26. POULOS is informed and believes and on that basis alleges that at all times
relevant, Defendant OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY ("Old
Republic") was a Minnesota corporation with its principal place of business in the county of Los
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Angeles, California, and engaged in the business of preparing preliminary title reports and
procuring title insurance for use in real estate transactions.
27. POULOS is informed and believes and on that basis alleges that Defendant
ROLAND WALLER ("Waller") was associated with Old Republic in his capacity as an
employee, shareholder, partner, principal or officer and residing in Pasco County, Florida.
Relevant Background olNon-Parties
28. Armand and Adeline Milazzo (both deceased) - Armand Milazzo and his wife
Adeline Milazzo were very close friends with Plaintiffs Nick and Georgia Poulos and served as
surrogate grandparents to their three sons, who are biological, Grandparents lived in Greece. In
addition to their friendship, Mr. and Mrs. Milazzo purchased a small marina located directly
behind the Poulos Motel and Restaurant in 1983. The Milazzo's shortly thereafter converted a
portion ofthe marina into a small diner, serving breakfast and lunch. In 1986, Pasco County, as
part of a beach revitalization project to tum Hudson Beach into a legitimate County Recreational
Park, began Eminent Domain proceedings against Armand and Adeline Milazzo's Marina and
Restaurant. In 1988, the newly renovated Hudson Beach opened to the public as the Strickland
Memorial Park and where the Milazzo's marina once stood lays the Strickland Park Boat Trailer
Parking Lot reserved for boaters using the County's boat ramp which lies adjacent to the
property.
(A) The Milazzo's property description was very similar to the Plaintiffs Hudson Beach
Estates Unit 4 property description. The full legal description to the Milazzo's Marina property
was Hudson Beach Estates Unit 4, Lot 18, Block C, Plat Book 7, Pgs. 31 and 32. Upon
information and belief, the Defendants played off the similarities in regards to the land
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descriptions between Plaintiffs property and the Milazzo's as well as the fact that Nick Poulos
and his friend Armand Milazzo purchased two separate parcels of property in the past to create
the false appearance that Milazzo was an owner of the Hudson Beach Estates Unit 4 property.
Defendants created and recorded in the public land records of Pasco County "quit claim" and
"warranty" deeds as well as other documents purportedly placing title to the Plaintiffs Hudson
Beach Estates Unit 4 property in the names of Armand and Adeline Milazzo. Defendants
subsequently transferred title of the property from the purported owners (Milazzo's) to one or
more of the defendants or transferred to a fictitious person or entity, and or transferred the
property to a nominee corporation. It was further part of the scheme to defraud that defendants,
Roland Waller, Matthew Ellrod, George Malacos and Michael Malacos would forge and cause
to be forged, signatures of record land owners and purported land owners such as the Milazzo's
on the fictitious deeds created to transfer the property away from the true owners, Nick and
Georgia Poulos and their respective trusts.
(B) Upon information and belief the defendants have utilized the Land Records of
Armand and Adeline Milazzo (both deceased) in furtherance of their conspiracy to steal title to
real properties and to commit bank fraud. Moreover, the defendants have made material
alterations to previously filed and recorded land records and caused records to be falsely re
recorded.
JURISDICTION AND VENUE
29. Plaintiffs bring this action for (i) substantive violations of the Racketeer
Influenced and Corrupt Organization Act ("RICO"), specifically violations of 18 U.S.C. 1341
(relating to mail fraud), section 1343 (relating to wire fraud), and section 1344 (relating to
financial institution fraud), and (ii) conspiracy in violation of RICO.
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30. This Court has subject matter jurisdiction over the claims alleged below pursuant
to 18 U.S.C. §1961 et seq. (the RICO Act) because they arise under the laws of the United
States.
31. This Court also has supplemental jurisdiction over the state law claims alleged
herein pursuant to 28 U.S.C. §1367, because the federal and non-federal claims arise from a
common nucleus ofoperative facts.
32. Venue is proper in this Judicial District under 28 U.S.C. §1391(b) because all
Defendants reside and/or do business in the State of Florida, and because the claims for relief
arise from acts, events, and omissions that occurred in this District or a substantial part of
property that is the subject of the action is situated in this District. The properties at issue in this
Complaint (which are described more fully herein) are situated in Pasco County, Florida.
BACKGROUND
33. Georgia Poulos is married to Nick Poulos, and they had three children:
Anastasios Poulos, Antonios Poulos and Basilios Poulos.
34. On March 29, 1996, Georgia Poulos ("settlor") executed a revocable living trust
agreement entitled the Georgia Poulos Inter Vivos Trust Agreement (hereinafter referred to as
the "Poulos Trust") at the Law Offices of George Klimis, P.A. her attorney. The trust appointed
her husband, Nick Poulos, as Co-Trustee along with her oldest son, Anastasios Poulos, who was
also a beneficiary along with Nick and Georgia Poulos's twin sons, Antonios Poulos and
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Basilios Poulos. Under the tenns of the Trust Agreement, upon the death of the first
spouse/settlor, the surviving spouse/settlor continues to serve as a Co-Trustee of such trust.
35. Georgia Poulos funded the trust with commercial property located at located at
6330 Clark Street, Hudson, FL 34667 (hereinafter referred to as the "Property") which
constitutes beachfront commercial property. The Property has two floors. The first floor consists
of a restaurant, bar, snack area, bathroom facilities, kitchen, and eighteen motel rooms. The
second floor consists of similar items and also includes a patio-deck that overlooks the Gulf of
Mexico. The property has the following legal description:
A. HUDSON BEACH ESTATES UNIT 4, Lot 16, BL C, Plat Book 7, Pages: 31
&32.
B. Short Fonn Legal Description is: HUDSON BEACH ESTATES UNIT 4
Please See Pasco County Property Appraiser's Records obtained via public records request.
[Plaintiffs Exhibit ("2")}.
36. Upon infonnation and belief and based on documents recorded with the Pasco
County Clerk's Office as well as documents received in response to various public records
requests made by Plaintiffs, it is believed that the defendants encumbered additional properties
owned by the Plaintiffs. These additional properties are also commercial properties and
unencumbered debt free real estate.
37. Upon infonnation and belief the Defendants, without any legal right, entitlement
or authority, have caused to be filed various liens against the properties owned by the Poulos
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Trusts. The addresses of the properties against which those fraudulent documents were filed
are:
(A) 14729 US Highway 19, Hudson, Florida 34667, with a Legal Description of
Green Acres Subdivision, S 112 of Lot 1, PB 5, Page 157. Parcel ID: 27-24-16-0180-00000
0011.
(B) GulfCoast Acres Unit 3, Lots 1, PB 5, Page 86. ID: 23-24-16-0050-00100-0010;
Gulf Coast Acres Unit 3, Lot 2, PB 5, Page 86. ID: 23-24-16-0050-00100-0020;
GulfCoast Acres Unit 3, Lot 6, PB 5, Page 86. ID:23-24-16-0050-00100-0060;
Gulf Coast Acres Unit 3, The West 125 :ft of that POR of Land Dedicated to
School, PB 5, Page 86, ID: 23-24-16-0000-00900-0011;
[Please see Pasco County Property Appraiser's Documents obtained via Public Records
Request marked as Exhibit ("3'')].
38. Nick and Georgia Poulos purchased the Hudson Beach Estates Unit 4 Property in
1980. Nick and Georgia Poulos - as well as the couple's three children - operated a restaurant
and motel on the Property. Plaintiffs named the motel and restaurant the "INN ON THE
GULF," and subsequently registered that name with the Florida Department of State. [Please see
Florida Department of State Trade Name Filing attached as Exhibit ("B It
)].
39. On May 26, 1996, Nick and Georgia Poulos as Grantors/Settlors transferred the 4. •
Property to the Georgia Poulos Revocable Inter-Vivos Trust Agreement via Trust Deed, which
was recorded in the Pasco County Official Records. Grantors selected their three sons as the
Trust's beneficiaries. [A copy of the Poulos Trust is attached hereto as Exhibit ("A")].
40. The Georgia Poulos Inter-Vivos Trust (the "Trust") specifically prohibited
anyone other than Georgia Poulos herself from amending the trust.
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A. Only Georgia Poulos Herself Had the Authority to Amend the Trust
41. Pursuant to Article II of the Georgia Poulos Irrevocable Trust Agreement, titled
"Article II - Right to Amend or Revoke," specifically states that "The Grantor reserves the right
to amend, modifY or revoke this Agreement, in whole or in part, at any time or times, by written
notice delivered to the Trustee, and any amendment, modification or revocation shall be
effective immediately upon delivery to the Trustee ..." (Attached as Plaintiff's Exhibit "A").
42. Additionally, in Georgia Poulos's Durable Power of Attorney which was
executed contemporaneously with her Inter- Vivos Trust Agreement, she appointed her husband
Nick Poulos as her attorney in fact to manage her affairs, granting him certain powers as
indicated in the agreement, however, limitations were placed on his powers as outlined in her
durable power of attorney. [Please See Durable Power of Attorney Attached as Exhibit "e"].
43. Georgia Poulos's husband also executed an identical Trust and DPOA as Mrs.
Poulos which was utilized to hold different pieces of the family's real estate. Georgia and Nick
Poulos's attorney in fact was not given the power to create, amend, modifY, or revoke any
documents or other disposition effective at his or her death or transfer assets to an existing trust
created by her or him unless expressly authorized by the power of attorney; or exercise powers
or authority granted to her or him as trustee or as court-appointed fiduciary. [please See Durable
Power ofAttorney ofNick Poulos Attached as Exhibit "0"].
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44. Consequently, neither Georgia Poulos's attorney-in-fact, nor a court-appointed
person or court-appointed Special Master was empowered by the provisions of the Trust to
amend the Trust or to withdraw real or personal property from the Trust.
45. The Trust specifically provides that only the grantor may utilize any of the
provisions of the Trust (Le., amend the Trust), and not only are conservators, masters or
guardians not allowed to exercise such rights, the Trust provides that no "other person other than
the grantor" may exercise such rights. That is, none of Georgia Poulos's agents, including those
falsely and fraudulently claiming to be agents of the trust, such as, Matthew Enrod and George
Malacos have the power to amend the Poulos Trusts because such authority was reserved strictly
to Georgia Poulos and to Nick Poulos. Accordingly, any trust amendments executed by someone
other than Georgia Poulos and/or Nick Poulos is invalid, ineffective and illegal and this
restriction could not have been overcome by a power of attorney.
46. If Georgia Poulos or Nick Poulos were determined to be incapacitated and unable
to serve as trustee pursuant to the their respective trusts., Anastasios Poulos, Antonios Poulos
and Basilios Poulos, in succession immediately succeeded as Co-Trustees of their parents
Trusts.
GENERAL ALLEGATIONS
47. At all times mentioned, defendant MALACOS, INC was and currently remains a
Florida corporation with its principal place ofbusiness in Pasco County, Florida.
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48. Plaintiffs own in fee simple the real property located at 6330 Clark Street,
Hudson, FL 34667. Plaintiff owned and operated a restaurant known as 1NN ON THE GULF for
twenty (20) years which provided dining and restaurant services to the public (the "Restaurant
Business"). In addition to the restaurant business the Plaintiffs owned and operated a motel on
the same premises as the restaurant which provided accommodations and other motel services to
the public (the "Motel Business"). Plaintiffs purchased the motel and restaurant in 1980 from
Ruth M. Lynch, who purchased the real property in 1972 along with her husband James Lynch.
Subsequent to the Lynch's purchase of the real property they constructed the main structure,
consisting of a first floor restaurant and a twenty-one room motel. However, shortly after
completion of the restaurant and motel which the Lynch's named the Amber Lantern Inn, Mr.
Lynch passed and Ruth Lynch placed the building and property up for sale.
49. Plaintiffs Nick and Georgia Poulos incorporated a Florida Corporation AA&B,
Inc., and purchased the Amber Lantern Inn in December of 1980. Nick and Georgia Poulos
assumed the Lynch's mortgage on the property and in addition, Ruth Lynch financed the
remaining purchase price via a mortgage from Nick and Georgia Poulos to Ruth Lynch. In 1986,
Nick and Georgia Poulos modified the terms of the assumed mortgage. [Please see Poulos
Original Documents Marked as Exhibit ("4")].
50. In 1994, Plaintiffs Nick and Georgia Poulos satisfied the mortgage they assumed
from the Lynch's. [Please see Satisfaction ofMortgage Marked as Exhibit ("4")].
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51. In 1996, Plaintiffs Nick and Georgia Poulos created the Georgia Poulos Inter
Vivos Trust Agreement and transferred the restaurant & motel property to Mrs. Poulos' trust. At
that time the only remaining mortgage on the property was the Poulos' mortgage to Ruth Lynch.
In 1995, Ruth Lynch passed and the mortgage payments were made to the three beneficiaries to
her estate, her nephew Albert Kriescher, Esq, Judith A.Kreischer (Niece) and Peggy Ann Lynch
(step-daughter). Subsequent to Ruth Lynch's passing, Georgia Poulos made the remaining
mortgage payments to the beneficiaries via a check to Mr. Kreischer and a check to Peggy Ann
Lynch who was residing at that time in Illinois. On or about April of 1998, Poulos paid off the
mortgage via a lump sum check to Mr. Kreischer at his Tampa Law Office and a Satisfaction of
Mortgage was recorded by Mr. Kreischer on April 14, 1998, [Please see Satisfaction of
Mortgage attached as Exhibit ("4")].
B. Poulos and Malacos Enter Into Long Term Commercial Lease of Real Property
52. In 1998, Malacos desiring to get into the restaurant business approached Poulos
in response to Poulos' Business for Sale advertisement. Both parties began negotiations and
reached agreement in February of 1998 for the sale of the Restaurant Business and Lease of the
Premises and the Motel Business.
53. In addition to the lease of the Premises and the Motel Business, Malacos was
granted a license for the exclusive use of the trade name "INN ON THE GULF" during the
duration of the lease along with the phone number associated with the business, (813) 868-5623.
The area code in the phone number was later changed to (727) 868-5623 by the telephone
provider. [Please see Exhibit (5)].
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54. The final tenns of their negotiated agreement were memorialized in the Assets
Purchases Agreement with attached Exhibits. As stated in Paragraph 19(B) ofthe Agreement:
"This Agreement and any exhibits contain the final, complete and exclusive expression of
the understanding among the parties with respect to the transactions completed by them
and supersedes any prior contemporaneous documents, the Asset Purchase Agreement
and all the agreement, representation or understanding, oral or written, by either of
them, The terms and provisions of all exhibits areincorporatoo into thisagrEBlslt" .
On March 10, 1998 the parties executed the written lease agreement and incorporated the lease
agreement as Exhibit B of the Assets Purchase Agreement. [A copy of the Lease Agreement is
attached and marked Plaintiff's Exhibit "J",]
55. Plaintiffs Nick and Georgia Poulos, Individually and as Trustees of their
respective trusts, with an address of 7802 Slyvan Drive, Hudson, Florida 34667, and AA&B,
Inc., a Florida corporation, with an address of 6330 Clark Street, Hudson, Florida 34667
(collectively, the "Seller") and George Malacos and or assigns (the "Purchaser") with an address
of 8906 Skymaster Drive, New Port Richey, Florida 34654, entered into an Assets Purchase
Agreement and a Lease from the Seller, for the Premises and the Motel Business. [Please see
Asssets Purchase Agreement attached as exhibit (''J'')].
56. In conjunction with the Assets Purchase by Malacos, Plaintiffs Nick and Georgia
Poulos provided owner financing to Malacos via two Promissory Notes executed by Malacos for
$125,000.00 and $40,000.00. The total purchase price for the assets of the Plaintiffs business
was $325,000.00. A complete list of the assets purchased is attached to the Assets Purchase
Agreement. The items purchased were typical items associated with a restaurant and motel, such
as table, bar stools, fryers, coolers, freezers, bar stools, single and double beds, dressers,
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couches, nightstands and supplies and inventory and all of the goodwill relating to the
Restaurant Business. At that time, the Restaurant had been open for close to twenty years and
had an excellent reputation as seafood restaurant and loyal customer base. After the lease was
signed on March 10, 1998, Nick Poulos stayed on as an unpaid consultant to teach George
Malacos and members of his family the menu and system that he had perfected over close to
twenty years of operation. [Please see original Poulos & Malacos Business Sale Transaction
Documents marked as exhibit (6)].
C. Lease of the Premises and the Motel Business
57. Poulos and Malacos negotiated a long term fifteen (15) year Lease, commencing
March 10, 1998, subject to Plaintiff's option to terminate the lease, as provided in Paragraph 25
of the lease, by giving Defendant 3 (three) day's written notice of termination, to relinquish the
premises. Per the terms of the Agreement the Principals of Malacos, Inc., personally guaranteed
the Lease. On or about March 10, 1998, defendant took possession of the leased premises
pursuant to the terms of the lease agreement which expired on March 10, 2013. However,
Defendants remain in possession pursuant to the fraudulent special masters deed and Regions
Deed ofTrust.
58. On March 13, 2013, plaintiff served on defendant written notice of plaintiff's
election to terminate the lease, effective March 10, 2013, as the terms of the lease agreement
have expired and that tenant is to surrender possession of the premises to plaintiff not later than
March 16, 2013. [A copy ofthis notice and demand so served on defendant, in strict compliance
with Paragraph 19 ofthe lease, is attached and marked as exhibit ("JII)].
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59. By reason of the expiration of the lease and the notice and demand served on
defendant, the lease terminated as of March 10, 2013, and plaintiff was and is entitled to
possession of the above-described property, as of that date, free of any further obligations under
the lease.
60. Despite the service on defendant of such notice and demand and the elapse of
five days after the service of the notice and demand, defendant refused and failed to quit the
premises and surrender possession to plaintiffand still refuses to do so.
61. On August 7, 2013, days prior to the loan closing and without the Plaintiffs
knowledge or consent, the conspirators notarized forged deeds transferring the Poulos Trust
Property to George Malacos. [Please see Special Masters Deed attached as Exhibit (G)).
62. Prior to August 7, 2013, George Malacos held an expired leasehold interest in
Plaintiffs property. On March 11, 20l3, Malacos's fifteen (15) year leasehold interest in the
Property expired. Malacos failed to exercise his renewal option prior to the expiration of the
lease. However, two years prior to the expiration of the leasehold interest Malacos exercised its
option to purchase the property for the second time in five years. [Please see Lease Agreement
and Asset Purchase Agreement attached as Exhibit ("E")).
63. Malacos's first attempt at exercising its option to purchase Poulos's property was
in 2008 after Poulos conducted an inspection of the property and discovered extensive
maintenance and repair issues, including extensive water damage due to roof leaks. Upon entry
of the property in 2008, Poulos discovered close to a dozen water buckets scattered throughout
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the dining room and bar area of the upstairs restaurant. In addition, more than half of the ceiling
tiles in the upstairs restaurant had either fallen down or bowed out due to water absorption.
Under the terms of the long term (15 year) Lease Agreement Malacos was responsible for all
maintenance and repairs. However, after receiving Plaintiff's default letter and opportunity to
cure Malacos chose to exercise its option to purchase rather than repair the damage. Poulos
answered demanding repair to the building and counter-claimed for eviction. At the time of this
exercise to purchase Malacos had affixed to its Notice of Exercise letter an offer to purchase for
$1,450,000.00 based on a property appraisal which was also affixed to the Notice.
64. At the conclusion of the first trial the Court ruled that Malacos was in default of
the lease and not entitled to exercise, however the Court found that forfeiture of the lease would
have been inequitable and denied Poulos's eviction counter-claim. Subsequently while the first
case remained open pending post-judgment motions, Malacos filed the same exact lawsuit
seeking specific performance of the purchase option.
65. Despite attempts by plaintiffs at abating the second identical cause of action
while the first case was pending appeal, the trial court refused and once again the same case was
being tried in the same court, with the same judge. Not surprisingly, Malacos was successful in
the second suit, despite Malacos's continued defaults under the lease agreement. Judgment for
specific performance was entered by the Court in March 2013. (Please see Final Judgment
attached as Exhibit lip,).
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66. During the trial of the second specific performance action, Malacos testified that
he had not secured any financing for the purchase. He testified that he hadn't spoken to a bank in
years and did not have the requisite funds available to purchase the property.
67. Subsequent to the Final Judgment of specific performance, the lease agreement
expired and Malacos stopped making lease payments. Poulos provided Malacos with the
required default notice and the statutory holdover tenant notice. However, despite proper notice
Malacos failed to make the lease payments.
68. In April of2013, Poulos filed a Complaint for Eviction against Malacos and
sought a Writ of Possession. Since the expiration of the Poulos - Malacos Lease Agreement on
March 10, 2013, Malacos failed to place any lease payments in the Court's Registry as per
Florida Statute.
69. On or about July 2013, Malacos lacked sufficient capital to close the sale as per
the court's final judgment. To generate such capital, Malacos along with the other participants
decided to unilaterally and fraudulently mortgage the Trust property without the knowledge or
consent ofNick and Georgia Poulos and or the Trust beneficiaries.
70. On information and belief, Plaintiffs allege that Defendants and others constitute
an associated-in-fact enterprise, through which Defendants participated in, or agreed to
participate in, multiple acts of interstate fraud on a federally chartered savings bank by obtaining
mortgage loans from Regions Bank and other lenders based on fraudulent verified loan
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applications, falsified title documents and data, inflated and/or falsified appraisals, and other
fase or fraudulent pra::l:icesforwhich they creliEble (the" Enterpri~').
71. As detailed below, the Enterprise was an association for the purpose of making
money from repeated criminal activity and which furnished the vehicle for the commission of
two or more predicate acts within the preceding five years of the filing of this Complaint,
including fraud against a financial institution (18 U.S.C. §1344); fraud using the U.S. Postal
Service (18 U.S.C. §1341); fraud using the U.S. wires (18 U.S.C. §1343); and interstate
transportation of money taken by fraud (18 U.S.C. §2314), fraud using the property of another
as more fully shown in the representative transactions.
72. As further detailed below, Defendants operated, managed, and/or directed the
affairs of the Enterprise either as 1) business entities which knowingly provided mortgage,
escrow, realty, or appraisal services in furtherance of the fraudulent verified loan applications
and fraudulent supporting data or documents; 2) business entities which knowingly provided
fraudulent data or documents in furtherance of the fraudulent verified loan applications; 3)
directors, officers, and/or managers of business entities which knowingly participated in
preparing, SUbmitting, or supporting the fraudulent verified loan applications and fraudulent
supporting data or documents; 4) employees and/or agents of business entities which knowingly
participated in preparing, submitting, or supporting the fraudulent verified loan applications and
fraudulent supporting data or documents; 5) purported borrowers who knowingly participated in
preparing, submitting, or supporting the fraudulent verified loan application and fraudulent
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supporting data or documents; and/or 6) the principal of those agents which participated in or
conducted the affairs ofthe Enterprise.
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AGENCY
73. Plaintiffs allege that Christian is the employee/agent of Regions Bank, Inc., such
as to create liability upon Regions for the acts of Christian as its agent/employee. All actions
taken by Christian in regard to the sale of the Poulos Trust property were within the scope of his
authority.
74. Plaintiffs allege that Robin Sweller, Roland Waller is the employees/agents of
Waller & Mitchell, P.A., such as to create liability upon Waller & Mitchell, P.A., for the acts of
Roland Waller & Robin Sweller and or Waller & Mitchell, P.A., as its agents/employees. All
actions taken by Waller, Sweller and or Waller & Mitchell, P.A., in regard to the sale of the
Poulos Trust Properties were within the scope of their authority.
75. Plaintiffs allege that George Malacos and Michael Malacos are the
employees/agents of Malacos Inc, Malacos Holdings, and Gulf Coast Acres II, LLC, such as to
create liability upon Malacos Inc, Malacos Holdings and or Gulf Coast Acres II, LLC for the acts
of George Malacos and Michael Malacos as its agents/employees. All actions taken by George
and Michael Malacos in regard to the sale and mortgage of the Georgia Poulos Trust property
and or the Nick Poulos Irrevocable Trust properties were within the scope oftheir authority.
76. Plaintiffs allege that Waller is the employee/agent of Old Republic National Title
Insurance Company, such as to create liability upon Old Republic for the acts of Roland Waller
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as its agent/employee. All actions taken by Waller in regard to the sale and mortgage of the
Poulos properties were within the scope of his authority.
77. Plaintiff is informed and believes, and on that basis alleges, that the Defendants,
and each of them, including DOES 1 through 100, inclusive, were, at all material times, the
agents, servants, employees, or partners of each of the other Defendants, and in doing the things
alleged herein, said Defendants, and each of them, were acting within the course and scope of
their agency, and with the consent, approval, and/or ratification of each ofthe other Defendants.
78. Plaintiff is further informed and believes, and on that basis alleges. that
Defendants, and each of them, had knowledge of, joined in the formation of, and participated in
a scheme to defraud Plaintiff with each of the other Defendants by committing the acts and
omissions alleged herein, and that said acts and omissions were committed in furtherance of a
conspir~ to defraJd Acintiff resulting in Acintiff'sdanages as set forth hErein. As such ea::h
Defendant who concurred in the tortious scheme with knowledge of its unlawful purpose is
liable irrespective ofwhether he/she was a direct actor.
79. Plaintiff is informed and believes, and on that basis alleges, that Defendants, and
each of them, ratified, consented to, and/or approved of, the conduct of each of the remaining
Defendants.
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80. This lawsuit concerns loans that the defendants fraudulently obtained from
Regions and other lenders, including private lenders. As set forth in more detail below, the
defendants defrauded Regions by helping to create or by submitting loan applications and
documents, title reports and appraisals, on which the lenders relied to their detriment that
misrepresented material facts and injured Regions. Defendants organized numerous loan
transactions which were based on fraudulent, false and inaccurate loan applications, grossly
inaccurate appraisals and false title reports in order to fraudulently induce loans from Regions
and other lenders and to deprive the Plaintiffs of their property and the income generated by the
properties. The loans taken against the Plaintiffs property were used to refinance allegedly
existing loans secured by the properties. These loans never existed. The fraudulently obtained
loans were diverted and converted by the defendants and, primarily, by the Waller and Malacos
Defendants (and by entities which they controlled).
THE FRAUDULENT SCHEME
81. On information and belief, the fraudulent scheme which is the subject of this
action typically worked as follows: Roland Waller, and other individuals working with him,
referred loan files to Regions and other lenders for funding. The Waller Defendants would send a
completed loan application to Region's Ocala, Florida branch. The loans were referred to
Regions employees who were cooperating in the scheme, such as Vince Christian, who ensured
that the fraudulent loan applications would be approved. In addition, it is believed that Christian
prepared false and fraudulent back dated cross-collateralized mortgages that could be used to
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create false foreclosure scenarios and or non-judicial foreclosure sales and REO (real estate
owned) purchases.
82. The loan applications prepared by Defendants falsely represented that borrower
Malacos and or Waller and or their corporate and or Trust nominees had owned a property for a
number of years, misrepresented the value of the property and other income and credit
information regarding the borrower, and misrepresented that the purpose of the application was
to refinance allegedly existing loans secured by the properties.
83. The defendants pretended, through various buyer and seller nominees to engage
in legitimate real estate transactions involving mortgage-fmanced sales of commercial and
residential property and the refinancing of mortgages. In truth, they schemed to deprive owners
of their rights & property and lenders of their money. The defendants, through a concerted effort
to obtain money generated from fraudulent real estate transactions financed by straw buyer
mortgage loans, employed numerous deceits, machinations, forgeries, bribes, falsified
documents, and illusory promises such as the following:
(A) Identifying properties with characteristics or owners that were suitable to their
scheme to use the real estate as collateral for mortgage loans to finance the ostensible sale of the
properties or, in some instances, to obtain money by refinancing fictitious mortgage debt on the
properties.
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(B) Convincing straw buyers, such as Malacos to attend and participate in property
closings by offering cash payments and making false assurances that the straw buyers would not
be responsible for making monthly mortgage payments.
(C) Manufacturing, through bribery and other means, false records and forged
documents in fraJdul a'rt 10CI1 CJ>pI icci:i ens cJesignai to Slha1ce straN buya-s' income, a;;sets,
employment and other data.
(D) Senlring falsa property CJ>praisais wholly divorcaj from a propsty's true value,
which included altered or entirely false photographs and false data regarding comparable
properties in the same neighborhood as the appraised property. Appraisals that failed to include
the income approach for income producing property.
(E) SJbverting 1endS"s' unda-writing s::rutiny by bribing lending institution
employees and paying attorneys who represented the lending institutions at property closings to
violate their ethical duties to their clients by concealing the true nature ofthe transactions.
(F) Orchestrating the use of the same straw buyer in multiple property transactions
within a short time period to obtain additional loans before credit reporting agencies had enough
time to reflect the mortgage liabilities ofthe initial transaction. Consequently, straw buyer credit
reports generated for subsequent transactions omitted substantial debt obligations of the
mortgage applicant
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(G) Lying to the sellers of property about the proceeds of a sale. misrepresenting to
lenders the details of loan disbursements. and using shell companies to receive misappropriated
funds and launder them for the benefit of the schemers, all in a concerted effort to acquire and
keep as much of the mortgage proceeds from sham transactions as possible. In addition, the
schemers fabricated fictitious reasons to hold funds belonging to sellers in escrow, and
ultimately diverted the funds to themselves through fraud and forgery.
(H) Engaging in multiple incidents of fraud and forgery involving ownership title to
real property which deceived title insurance firms and caused public offices to record deeds and
mortgages that were inaccurate.
84. It was further part of the scheme that after these fraudulent real estate
transactions closed, defendant Roland Waller and his co-schemers fraudulently obtained the
mortgage loan proceeds that were paid to the imposter sellers and their nominees.
85. It was further part of the scheme that the purported buyers in the fraudulent
real estate transactions orchestrated by defendant Roland Waller were told that they would not
have to make any mortgage payments or pay any closing fees. In George Malacos's case.
he was promised by Waller continued possession of the Poulos property without having to
pay rent, a $14,000 a month savings plus he was provided with cash back from the loan
proceeds despite the fact that he was technically the buyer of the property. Waller was able to
secure Malacos cash back from the loan proceeds via a fraudulent judicial order where he
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was awarded $222,000.00 dollars in appellate attorney's fees. There was no hearing
conducted for the issuance of these fees, it was entered ex parte and recorded with the Pasco
County Clerk's Office on July 15, 2014. Upon infonnation and belief, much of the illegally
obtained loan proceeds taken in by the Defendants have been laundered via bogus and
fraudulent judicial disbursement orders. [Please see December 20, 2013 Disbursement Order
marked as Plaintiffs Exhibit ("7")).
86. In the Plaintiffs case, there have been multiple fraudulent disbursement
orders issued by the Circuit Court wherein illegally obtained loan proceeds are washed or
laundered through disbursement orders issued by a Pasco County Court. In the Plaintiffs
case there was absolutely no basis for the Court to issue a disbursement order of any kind.
Upon the entry of a final judgment for specific perfonnance, the Court's job is done. There
was never a receiver appointed by the Court in the Pasco County action, but yet the Poulos
property was sold as if there was a receiver appointed to conduct some sort of liquidation of
the property or to conduct some sort of estate sale.
87. It was further part of the scheme that defendant Roland Waller recruited and
paid individuals, including defendants George Malacos, Michael Malacos, Matthew Ellrod and
others to knowingly pose as buyers, sellers and the purported representatives of buyers
and sellers in the fraudulent real estate transactions defendant Roland Waller arranged.
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88. It was further part of the scheme that defendant George Malacos fraudulently
posed at multiple closings for the fraudulent real estate transactions involving the Plaintiffs
property as a buyer, seller, or the purported representative of a buyer or seller, using
various stolen and false identities, including Greg Henry, Patrick Sullivan, Stephen Matis
and Ricky Leone. In furtherance of the scheme to defraud George Malacos as George
Michael Malacos rented P.O. Box 6841 in Hudson to receive mail associated with the
various frauds he and the other defendants are involved with. Additionally, in furtherance of
the scheme to defraud, Mr. Malacos has obtained e-mail addresses using his aliases. For
example, using his Greg Henry identity he has secured the following e-mail addresses,
[email protected], [email protected], [email protected], [email protected] and
[email protected].
89. It was further part of the scheme that defendant George Malacos fraudulently
posed at a closing for a real estate transaction as a buyer using the identity ofanother.
90. It was further part of the scheme that defendants Roland Waller, John Taylor and
others knowingly prepared and submitted and caused to be prepared and submitted to Mortgage
Lenders, false and fraudulent loan applications and supporting documents in the names and on
behalf of purported buyers using stolen and false identities, including false and fraudulent
appraisals, and verifications of income, assets and rent.
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91. It was further part of the scheme that defendants Waller, Taylor and others
submitted and caused to be submitted to Mortgage Lenders loan applications in connection
with the fraudulent real estate transactions arranged by defendant Roland Waller, which
defendants Waller, Taylor, Ellrod and Malacos knew contained materially false representations
and material omissions, including:
(A) the true O\\ller ofthe property;
(B) the assets and income ofthe borrower;
(C) the identity ofthe true purchaser;
(D) fictitious leases;
(E) back dated deeds;
(F) that the borrower was not currently involved in litigation;
(0) that the borrower was receiving rental income from the Hudson Beach
Estates property as lesser when in truth and in fact he was a holdover and
insolvent tenant;
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(H) that George Malacos was the owner of the trade name "INN ON THE
GULF'" when in truth in fact Malacos held an expired license to use the trade
name for the duration of his leasehold, which expired on March 10, 2013. The
Poulos Trust is the rightful owner ofthe trade name and has been so since 1981.
(I) that the borrowing entities held good and marketable title of record for
the pledged properties and that the properties were free and clear of all liens and
encumbrances, when, as defendants Malacos, Waller, Ellrod, Taylor and
Christian knew, the borrowing entities did not hold good and marketable title
to any of the plaintiffs properties used as collateral by the defendants.
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OBJECT OF THE CONSPIRACY
92. It was the purpose of the scheme to falsely and fraudulently obtain control of real
property owned by POULOS, in order to sell the property to various co-conspirators and
unsuspecting third parties and collect the proceeds ofthe sale. The goal ofthe conspiracy was to
steal and possess money in the form of mortgage loan proceeds funded by banks and other
mortgage lending firms. To effectuate their goal, the conspirators agreed to create numerous
false and forged documents designed to enhance the qualifications of straw buyers by inflating
their assets, income and employment credentials on loan applications submitted to prospective
lenders, and to convey the pretense that these buyers were parties to bona fide residential real
estate transactions. In so doing, the conspirators sought to defraud lending institutions by
submitting false loan applications that, when approved, yielded mortgage commitments to
finance the ostensible sale of property.
93. It was further the purpose and the object ofthe conspiracy for the defendants and
their co-conspirators to unlawfully enrich themselves by defrauding the true owners of property
located in Pasco County, Florida, as well as banks, mortgage companies, title insurance
companies and third-party purchasers, by fraudulently conveying interests in properties through
the use of false and fraudulent quit-claim deeds, warranty deeds, special warranty deeds and
false and fraudulent mortgage loan documents. Defendants submitted false and fraudulent
mortgage loan applications, title commitments and related documents to banks and other lending
institutions, thereby inducing the banks and lending institutions to make loans to Malacos and
the Defendants corporate and trust nominees.
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94. It was a further part of the scheme and artifice to defraud the Plaintiffs of their
property and the income generated from the property that George Malacos, a holdover tenant of
the Georgia Poulos trust applied for a equity refinance loan and a business line of credit through
Regions Bank collateralized by the Plaintiffs Hudson Beach Estates Unit 4 property. Malacos
secured the loans by claiming income from lease payments associated with the Plaintiffs
property. Malacos provided Regions with a fictitious lease agreement and lied about being the
owner of the property. In addition, it is believed that Malacos and Waller have made material
misrepresentations regarding other unencumbered commercial properties owned by the plaintiffs
in order to secure additional loan proceeds and or to increase lines of credit.
95. Upon information and belief, it was a purpose of the conspiracy for the
defendants to use the equity in Plaintiffs property in order to obtain loans to satisfY the
Defendants debts associated with properties that they are the actual owners of.
96. It was a further part of the conspiracy and scheme to defraud that the defendants
filed and caused others to file false and fraudulent court documents, in response to Plaintiffs
efforts to regain lawful possession and control of the Hudson Beach Estates Unit 4 property
which plaintiffs have owned for almost thirty-five (35) years.
MANNER AND MEANS OF THE CONSPIRACY
The manner and means by which the defendants sought to accomplish the title theft
conspiracy included the following:
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97. It was a further part of the conspiracy that co-conspirators Waller, Ellrod, Taylor,
Christian and others purportedly purchased properties in the names of general and limited
partnerships; Waller and Malacos would then recruit individuals to re-purchase these same
properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising
the buyers that they would not be required to: make financial contributions toward the purchase
of the properties; pay the monthly mortgage payments or expenses; or maintain the properties
(Waller, Taylor and the other conspirators would continue to control the properties after the
buyer's purchases).
98. Co-conspirator Vince Christian ("Christian") was a licensed Florida Mortgage
Broker and Branch Manager of a Regions Branch located in Ocala, Florida. Upon information
and belief, Christian used his position to assist Waller and Malacos by advising them ofthe loan
application items which would be required to obtain mortgage loans in the names of the straw
buyers.
99. Co-conspirator Roland Waller created real estate contracts he knew to be with
straw purchasers in non-arms-Iength transactions.
100. Co-conspirator Robin Sweller was an employee of Waller & Mithcell, P.A. and
worked as a closing agent and followed the direction ofdefendant Roland Waller.
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101. ROLAND WALLER and the other defendants identified commercial and
residential real properties that were equity rich and income producing and recruited nominees to
participate in the sale and resale of the properties.
102. LYNN GILBERT prepared false and fraudulent appraisals of the properties, in
many cases reflecting inflated and or deflated property values, depending on the transaction, in
order to support the mortgage loan applications for Malacos and Waller. Most importantly, the
appraisals would falsely and fraudulently misrepresent the true ownership of properties involved
in the real estate transactions.
103. Waller, Sweller and or Taylor prepared and caused to be prepared materially
false and fraudulent title commitments certifying that certain nominees in the real estate transact
ions owned the real properties involved when in truth these nominees did not own the properties
at the time. These title commitments were submitted to banks and other lending institutions to
induce them to make mortgage loans to Malacos and Waller.
104. It was a further part of the scheme that the defendants arranged for false and
fraudulent deeds to be recorded purporting to transfer title to real property which references the
legal description of the Plaintiffs Hudson Beach Estates Unit 4 property.
105. It was a further part of the scheme that the defendants recorded fictitious back
dated deeds commencements, mortgages, notes, satisfactions which reflect and reference the
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legal description of the Plaintiffs Hudson Beach Estates restaurant and motel property and place
title to the property in Armand and Adeline Milazzo. [Please see exhibit (8)).
106. It was a further part of the scheme that the defendants and their co-conspirators
altered many of the plaintiffs previously recorded title documents by adding Armand Milazzo to
the deed and or the address of the plaintiffs restaurant and motel property to one of the deeds to
property that was purchased by Nick Poulos and Armand Milazzo. Defendants sought to create
the appearance that Nick Poulos owned the restaurant and motel property with Armand Milazzo
and not his wife Georgia Poulos. This was all done with the purpose and intent to rid Georgia
Poulos from the chain of title. In 1996, the property was placed in the Georgia Poulos Inter
Vivos Trust, thus the defendants had to purge Mrs. Poulos from the title in order to effectuate
their mortgage fraud and identity theft scheme. Upon information and belief, it was much easier
for defendant George Malacos to steal and assume the identity ofhis landlord Nick Poulos rather
that Georgia Poulos. [Please see Exhibit (9)).
107. Defendants and their co-conspirators also utilized false and fraudulent cross
collateralized mortgages placed on the Plaintiffs Gulf Coast Acres properties in order to create a
bogus foreclosure scenario. Plaintiffs have discovered multiple back dated and fictitious Regions
Bank mortgages purportedly secured by the Plaintiffs property. For example, in 2001, Plaintiffs
Nick and Georgia Poulos and Armand and Beatrice Milazzo sold a vacant commercial piece of
property located on U.S. Highway 19N in Hudson, Florida to Dr. Pariksith Singh and his wife
Dr. Scunziano, who were close friends of Armand and Beatrice Milazzo. As such, Plaintiffs and
the Milazzo's held the note and Dr. Singh and his wife Dr. Scunziano gave plaintiffs and the
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Milazzo's a mortgage. The satisfaction of that mortgage was recorded on December 10, 2003;
however, plaintiffs have discovered a cross-collateralized mortgage for $300,000.00 recorded
against the property in November 2003, which in addition to the property is secured by an
assignment of rents, leases and profits. [Please See Exhibit (10)]. However, the Gulf Coast
Acres, Unit 7 property was vacant unimproved property in 1986 when Plaintiffs purchased the
property and remains so today.
108. Defendants and their co-conspirators duplicated and forged notary stamps on the
various documents used to complete the fraudulent real estate transactions.
109. Defendants and their co-conspirators caused the false and fraudulent quit-claim
deeds, warranty deeds, special warranty deeds, and satisfaction of mortgages to be recorded in
the Land Records at the Pasco County Clerk's Office. The recorded deeds, mortgages,
commencements, declarations, affidavits, orders and other documents were returned to the
defendants through the United States Mail.
110. Defendants and their co-conspirators created false and fraudulent loan
documents, which they submitted and caused to be submitted for approval to various banks and
mortgage companies, including defendant Regions Bank. Defendants and their co-conspirators
sent and caused the loan documents to be sent to various banks and mortgage companies by the
U.S. Postal Service and private or commercial interstate carriers.
_ _....,._.". .....~v
--,.-~ ~ ~
."w_~
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Ill. Defendants and their co-conspirators caused banks, mortgage companies, and
closing agents to distribute the proceeds of the fraudulently obtained mortgages and loans to
their nominees.
112. Defendants and their co-conspirators opened bank accounts under fictitious
names and nominee corporations in order to receive and distribute the proceeds from the
fraudulent real estate transactions.
113. Defendants and their co-conspirators fraudulently obtained title and control over
unencumbered commercial income producing property in Pasco County, which Plaintiffs have
owned since 1980.
114. Defendant co-conspirators and others would record fraudulent deed at the Pasco
County Clerk's Office, so that it would appear that the true owners of real property had deeded
their properties to shell companies controlled by the co-conspirators.
115. Once the fraudulent documents were recorded in the chain of title, the co
schemers would pose as the new owners and immediately try to sell the properties. Defendant
co-conspirators used a plethora of aliases and a host of sham businesses to pose as the owner of
properties they listed for sale, and set up bank accounts for the sham companies so that fraud
proceeds could be funneled out of the scheme. In this way, the conspirators would take all the
proceeds ofthe sale, and the true owners ofthe properties would get nothing.
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116. This is precisely what has happened to the Plaintiffs who have owned the Hudson
Beach Estates property since 1980. Plaintiffs Nick and Georgia Pools arrived in Florida in 1980
after closing the doors to a restaurant they owned in Houston, Texas after just six months.
Determined to succeed, husband and wife Nick and Georgia Poulos packed up their three sons
and headed to the great state of Florida and within months happened upon the Amber Lantern
Inn, a restaurant and motel located directly across the street from the Gulf of Mexico. The
Plaintiffs purchased the Amber Lantern from its then owner Ruth M. Lynch who purchased the
property along with her husband James Lynch in 1972. The Lynch's then constructed the
existing first floor restaurant and a 21 room motel on the property called the Amber Lantern. In
the mid-1980s, Nick and Georgia Poulos expanded the first floor restaurant and also added a
second story restaurant and outdoor patio called the "Upper Deck." In addition to the restaurant
and motel business, the property served as the Poulos family residence from 1980 to 1986 as
Nick and Georgia Poulos saved, in order to expand the business in the future.
117. Under false and fraudulent pretenses, Defendants and their co-conspirators made
substantial profits on the sale of the fraudulently obtained properties to various third-party
nominee purchasers.
118. It was a part ofthe conspiracy that defendants ROLAND WALLER, MATTHEW
ELLROD, GEORGE MALACOS, MICHAEL MALACOS and their co-conspirators used
defendant Waller and Sweller's position as title and settlement agents for real estate transactions
by conducting multiple fraudulent real estate transactions and fraudulent loan transactions
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related to the Hudson Beach Estates Unit 4 property as well as other properties owned by
Plaintiffs.
119. It was a part ofthe conspiracy that WALLER and MALACOS and others would
and did obtain bank accounts in the Middle District of Florida in their own names and the names
of entities they controlled for the purpose of receiving and disbursing funds to commit,
perpetuate, and conceal the fraudulent scheme described in the following paragraphs.
120. It was further a part of the conspiracy that MALACOS would and did obtain and
seek to obtain funds, loans, mortgages, and lines of credit from federally-insured financial
institutions, including Regions Bank and others. It was further a part of the conspiracy that
MALACOS would and did submit and cause the submission of documents to those financial
institutions that contained materially false and fraudulent pretenses, representations, and
promises. In particular, MALACOS would and did submit and cause the submission of
documents to those financial institutions that, among other things: (a) contained false
information concerning the income and assets of the person or entity in whose name MALACOS
sought the loans, mortgages, and lines of credit; (b) were false and forged business and personal
tax return documents; (c) were false and forged financial statements that purported to be from
financial institutions; (d) were false and forged bank statements; (e) were a false and forged
official check; and (t) were false and forged correspondence from Waller & Mitchell, P.A. that
purported to show funds held for the benefit of entities that MALACOS controlled, which funds
did not actually exist. On occasion, MALACOS also would and did submit to the fmancial
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institutions materially false loan applications supported by the foregoing false documents and
would and did sign documents certifying to the accuracy ofthe foregoing false documents.
121. It was further a part of the conspiracy that in reliance upon the materially false
and fraudulent pretenses, representations, and promises contained within the documents
submitted by and caused to be submitted by MALACOS to federally-insured financial
institutions, those federally-insured financial institutions, including Regions Bank, would and
did provide funds, loans, mortgages, and lines of credit to MALACOS and entities controlled by
MALACOS.
122. It was further a part of the conspiracy that MALACOS would and did use the
funds, loans, mortgages, and lines of credit that he obtained through fraud for his own purposes
and to fund his lifestyle and other businesses he controlled.
123. It was further a part ofthe conspiracy that MALACOS would and did perform
acts and make statements to hide and conceal, and cause to be hidden and concealed, the purpose
of the scheme and the acts committed in furtherance ofthe scheme.
124. It was a further part of the conspiracy that defendants ROLAND WALLER,
MATIHEW ELLROD, GEORGE MALACOS, MICHAEL MALACOS and their co
conspirators caused defendant George Malacos to obtain a mortgage loan on the Hudson Beach
Estates Unit 4 property even though defendant Malacos was not the owner ofthe property.
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125. It was a further part of the conspiracy that defendants ROLAND WALLER,
MATIHEW ELLROD, GEORGE MALACOS, MICHAEL MALACOS and their co
conspirators caused defendant Malacos to obtain multiple loans on the Plaintiffs properties based
on fraudulent loan applications and other documents that contained, among other things,
materially false statements about the defendant Malacos's income and assets.
126. In order to induce mortgage lenders to lend money to the Straw Borrowers,
defendants Waller, Taylor, Christian and others submitted and caused to be submitted fraudulent
documents to the lenders that made it appear that the straw borrowers owned or were purchasing
the Plaintiffs properties.
127. It was a further part of the conspiracy that defendants Waller, Ellrod, Malacos,
Taylor, Christian and others created and submitted to mortgage lenders fraudulent mortgage loan
applications in the Straw Borrowers' names that contained materially false personal and financial
information about the borrowers, such as their employment history, income, assets, rental
income, rental history, true identity, involvement in current litigation, debt history and true
identity, upon which the mortgage lenders relied when deciding whether to approve the loans.
128. It was a further part ofthe conspiracy that defendants Waller and Sweller acted as
the settlement agent at the closings of the fraudulent transactions and failed to disburse the loan
proceeds in accordance with the HUD-I Settlement Statement. It was a further part of the
conspiracy that defendants Waller and Sweller created and submitted to mortgage lenders
fraudulent HUD-I s that falsely stated, among other things, that the borrower brought sufficient
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funds to close when in fact the borrower failed to bring any funds to close as reflected in the
HUD-l Settlement Statement. [Please see HUD-l Settlement Statement attached as Exhibit
("K")].
129. On August 7, 2013, days prior to the loan closing and without the Plaintiffs
knowledge or consent, the conspirators notarized forged deeds transferring the Poulos Trust
Property to George Malacos.
130. It was a further part of the scheme that, Malacos thereafter engaged in a scheme to
misappropriate the assets of the Poulos Trust by mortgaging the property and eventually
conveying the Property to third parties in exchange for funds paid to Malacos through a bank
account that he fraudulently set up in the name of Nick Poulos and or the Poulos Trust or Gulf
Coast Acres II, LLC.
(A) On August 12, 2013, Roland Waller and Robin Sweller, acting as the title agent
and closing agents, conducted a closing in which Matthew Ellrod as Seller sold the Trust
property located at 6330 Clark Street, Hudson, Florida 34667 to George Malacos of Malacos,
Inc. Waller and Sweller created two U.S. Department of Housing and Urban DeVelopment
Settlement Statements (commonly referred to as the "HUD-l "). The first HUD-l was submitted
to the lender Regions Bank and contained a material misrepresentation by omission by not
disclosing to the lender the disbursement of $224,205.92 for attorneys fees and the $213,352.39
for rents and credits disbursed to Malacos, Inc., a company in which George Malacos is the
principal, from the loan proceeds. [Please see HUD-l attached with Loan Documents].
, _............. _ . _ - - - - - - - - - - - - - - - - - - - - -
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