By Cherrie Anne E. Villahermosa
Variety News Staff

THE United Micronesia Development Association Inc. and UMDA Laolao LLC have sued a former director and various shareholders for fraud, breach of fiduciary and statutory obligations, misapporpriationsof funds and negligence.
UMDA and UMDA Laolao LLC through attorney Michael W. Dotts filed the complaint in Superior Court on Friday against G.E.T. Realty Trust, Thomas C. Sorenson individually and his capacity as trustee for G.E.T. REalty Trust; Concorde Trust, Rothschild Trust Guersey Limited as trustee of the Concorde Trust; Rothschild Trust Guernsey Limited Account 2299; Davina Limited; Pirouette LLC Profit Sharing Plan, Monte Perucho Investiduras LLC; Raymond D. McCall; John Larson; Robert Pfaff; David Amir Makov; Morley Inc. Employee Stock Ownership Plan and Trust; Point Du Hoc Irrevocable Trust and its Trustee; WS Investment Trust; Norskanvest LLC; Pigavest A.G,. Irizarry, McCall & Squarell, P.C.; Irizarry & McCall P.C. Profit Sharing Plan; Global Leader Consulting Inc., Profit Sharing of Global Leader Consulting Inc., Keysdale Ventures LLLP, First Court Ltd. Re Account #2305 and Does 1-50.
The plaintiffs filed 13 causes of action against the defendants and are seeking a declaration that the defendants have no claim to the funds, have no claim to any distributions received from the plaintiffs as a result of the stock ownership by the defendants; a declaration that no distribution is required of the fund; a declaration that the defendants have breached their fiduciary and statutory obligations to the plaintiffs and a declaration confirming that the defendants’ stocks have been repurchased for fair market value at the times of their wrongful taking of corporate assets and that such price “shall be offset against the amounts owed to the plaintiffs by the defendants.”
The plaintiff are also seeking compensatory damages, restitution, disgorgement, constructive trust, rescission, indemnity, punitive damages; an order relieving or discharging the plaintiffs from any further liability on any claim arising from the actions of defendants while they were improperly associated with them; attorney fees and cost and for such other relief just and equitable.
Robert Pfaff and John Larson are lawyers and accountants from the U.S. mainland who are under federal indictment for tax evasions.
Their cohorts include Raymond McCall, also a lawyer who was retained as UMDA’s counsel beginning in the mid-1990’s.
The complaint stated that McCall was involved in illegal tax shelters along with Pfaff and Larson.
Sorenson is the brother-in-law of Pfaff and the trustee of G.E.T. Realty Trust.
Makov is the director of Morley Inc and is currently under indictment for tax evasion.
The complaint stated that the defendants insinuated themselves into UMDA and Laolao LLC and then misused their positions of trust, power and authority to obtain secret “side fees” at UMDA’s expense and to suit their own improper purposes.
According to the complaint, the defendants breached their duties to the plaintiffs, violated their agreements with the plaintiffs and have caused injuries and will continue to cause injuries.
Jose Lifoifoi, chairman of UMDA in a press statement on Friday, said: “We will take whatever legal action is necessary to insure that UMDA is fully protecting the interest of its shareholders.”
He added, “UMDA seeks to recover any and all legal expenses associated with loss of investment opportunities and monetary penalties to be awarded by the court. Our board of directors fully support this effort and understands that we are committed to spend the resources and time necessary to achieve this objective.”