No. 1-07-3509
6
In count I of the complaint, plaintiffs advance a claim for fraud. They specifically
contend that Anderson, Erickson, and Edwards (the Richum Defendants) misrepresented to
plaintiffs that the funds they deposited into the Illinois escrow account would not be transferred
out of that account and would be used only as a bond to secure a loan, that they would be paid a
premium if such a loan was secured, that their money would be returned if the loan was not
received, and that they were dealing in good faith with third parties, “such as Defendants Guidry,
Taylor, and Carter.” Plaintiffs alleged that these intentional false representations induced them to
give the Richum Defendants $390,000, which the defendants never intended to return. They
further alleged:
“Upon information and belief, Defendants Carter, Guidry, and Taylor
defrauded Plaintiffs when they induced the principals and agents of the Richum
Group to pay over Plaintiff’s funds from the Richum Group escrow account to the
escrow account controlled by PHD Management, LLC, Charles C. Gudry, P.C.,
and Taylor. In the alternative, upon information and belief, Defendants Edwards,
Erickson, Anderson, Guidry, Carter, and Taylor fraudulently induced Erickson
and Anderson to pay over the funds while in fact all of said Defendants had
actually agreed to split up the funds among themselves.”
Plaintiffs next assert that Carter and Taylor, on behalf of PHD, misrepresented to the Richum
Group that they secured a loan on the Richum Group’s behalf. Plaintiffs allege that these false
statements induced the Richum defendants to remit $350,000 to PHD.
In count II, plaintiffs allege that defendants’ actions violated the Illinois Consumer Fraud
