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IN THE SUPERIOR COURT
OF DEKALB COUNTY
GEORGIA
ANTHONY S. TRICOLI,
Plaintiff,
vs.
ROB WATTS; RON CARRUTH; JIM
RASMUS; MARK GERSPACHER;
SHELETHA CHAMPION; HENRY
HUCKABY; JOHN FUCHKO; STEVE
WRIGLEY; BEN TARBUTTON; THE BOARD
OF REGENTS OF THE UNIVERSITY
SYSTEM OF GEORGIA; SAM OLENS, THEATTORNEY GENERAL OF GEORGIA; and
ROBIN JENKINS
Defendants.
)
))
)
)
)
)
)
)
)
CIVIL ACTION NO. 14-CV-4911
JURY TRIAL DEMANDED
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20% 73E%3 does not indicate that any matter was considered after
September 22 hearing, despite pleadings containing admissions by the
Attorney General and supporting documents obtained through Open Records
requests. Order, p. 1. That leaves a great deal of pleadings and exhibits in
addition to the Motion that escaped review, including admissions of
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extensive criminal conduct confirming allegations of the original Complaint.
The Order also holds the state departments and agencies protected by
sovereign immunity, without addressing their amenability to injunction,
particularly with respect to OCGA 16-14-6(a). Order, p. 1.
The Order appears to make an additional factual statement upholding
the fraud by which Tricoli was duped into resigning his contracted position
on the promise of a USG central office position, a statement that has no
support whatsoever—that Tricoli did not receive the promised USG job
because of “additional reports of misconduct.” Order, p. 2. There was a false
report of misconduct that is part of the overall pattern of criminal fraud
alleged. There has been no misconduct alleged supporting either the breach
or non-renewal of Tricoli’s contract, much less any additional misconduct
justifying those actions.
The Order states that Tricoli had no written contract of employment,
ignoring the extensive evidence filed by Tricoli contradicting this
sanctionable, false denial by the Attorney General that has no reasonable
basis in law or fact. Order, p 3. This appears to confirm the impression that
the Court did not consider any pleading filed after the September 22 hearing,
including Plaintiff’s Motion for Sanctions and Supplement.
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The Court skirts the voluminous evidence offered to show a written
contract incorporating the policies of the USG by saying that after Tricoli’s
forced resignation, he had no contract. Order, p. 3 (“Tricoli’s employment
contract as President of GPC ended with his resignation”). The Court also
relies on a holding in Liberty County that there is no relief for a state agency
failure to issue a new contract on grounds of discrimination, an opinion that
does not address injunctive relief under the RICO statute (and which also
afforded the plaintiff alternate non-contract claims for defendants’
misconduct). 4.5#$,/ 6&+1,/ 73-8 9.:,8 "8 ;*%%.5+$,&1 A8+W /55WD SZ<@BW
In any case, these rationales do not apply to the instant case, as they
do not address the documented breaches of both the contract and USG
policy during the term in which the contract was in effect, and the admitted
alterations of USG policy after the fact in an attempt to conceal the
wrongdoing. In fact, the Court’s rationale stretches to find a negative
inference instead of following Liberty County:
"A motion to dismiss for failure to state a claim upon which
relief may be granted should not be sustained unless (1) the
allegations of the complaint disclose with certainty that the claimant
would not be entitled to relief under any state of provable factsasserted in support thereof.” Id .
The Order also does not address USG attempts to disguise otherwise
admitted breaches through after-the-fact changes of USG policy, as admitted
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by the Attorney General after this was extensively documented by Plaintiff
in the Notice of Filing of Evidence of Written Contract and Supplement.
The Order dismisses all tort claims. Order, p. 4. The tort claims in the
case are for fraud, fraudulent inducement, intentional infliction of emotional
distress. The Georgia Tort Claims Act (GTCA) does not bar these tort
claims against the state under the exceptions to the waiver of sovereign
immunity for specified tort claims at OCGA § 50-21-24(7). The dismissal of
such tort claims against individual state employees, which Plaintiff does not
contest, does not impact RICO claims against individual state officers,
which clearly can be brought. Caldwell v. State, 321 SE 2d 704, 253 Ga. 400
(1984) (civil RICO action allowed against state official and employees
conducting the Georgia Department of Labor as a RICO enterprise); McCoy
v. Georgia Dept of Administrative Services, (Ga. App. 2014) (civil RICO
judgment against Georgia DFCS workers for fabricating charges and
evidence in the course of their state employment).
Instead of addressing the RICO statute or the case law deciding RICO
claims, the Order relies on a tort action decided under the GTCA. Order, p.5;
Board of Public Safety v. Jordan, 556 S.E.2d 837, 252 Ga. App. 577 (Ga.
App., 2001). However, the plaintiff in Jordan did not allege falsification of
state agency reports. In fact, Jordan admitted his dismissal was proper, but
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alleged defendants caused him emotional distress by bringing accurate facts
to the attention of the media to induce negative stories about him. Jordan,
252 Ga. App. at 582-83. That case certainly does not contain any allegations
supporting claims for criminal mail, wire, and computer fraud, or knowing
falsifications of state agency reports, as in the instant case, and those issues
were not addressed or decided in Jordan.
Moreover, while the Order purports to state this rationale for
dismissing Tricoli’s RICO claims under the pretext that they are tort claims,
instead, the Court never stated any grounds for dismissing the actual tort
claims against the state alleged by Tricoli because there are no GTCA
exceptions for the torts of fraud, fraudulent inducement, or intentional
infliction of emotional distress.
However, in extending GTCA exceptions to tort liability to cover
criminal RICO predicate acts, the Court specifically held that knowing
falsifications of the GPC budget, a crime under OCGA § 16-10-20, are
discretionary acts immunized under a tort exception for negligence in
financial oversight. OCGA § 50-21-24(11). Order, p. 5. The Court
specifically held that such knowing, criminal falsifications, and their
dissemination in violation of federal mail and wire fraud statutes are
immunized under the tort exception for defamation OCGA § 50-21-24(7).
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The “trickery” in procuring Tricoli’s resignation was immunized as tortious
interference with contract rights, though there is no equivalence of elements
of a tortious interference claim with fraud, fraudulent inducement, or
extortion, much less theft by deception and Section 16-10-20 violations,
mail, wire and computer fraud. The Order did not address the amended
claims for computer fraud in violation of the state statute, the Georgia
Computer Systems Protection Act, as the Order was signed prior to the filing
of the amended claims noticed in the Motion filed on November 19.
The Order does not address any of the criminal statutes violated,
crimes that are listed as predicate acts under the RICO statute, except to say
that knowing falsifications of state agency reports, mail and wire fraud,
extortion, criminal violations of the GCSPA, and theft by deception are
“within the ambit of the Board’s discretion inherent to the exercise of its
administrative functions.” OCGA § 50-21-24(2). Order, p. 5-6.
In addition, without any explanation or analysis, the Order says RICO
claims are “premised on the same conduct” as the torts hypothesized by the
Court, so that the GTCA governs the claims that are based on criminal
violations--and not the RICO Act under which the claims are brought.
Nonetheless, the Order does not anywhere say that the claims fail to satisfy
elements of RICO criminal predicate acts, and therefore a civil RICO cause
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of action is authorized. OCGA § 16-14-6(c). In addition to not consulting the
RICO statute, the Order does not mention the case law authorizing civil
RICO claims against state officials. Caldwell v. State, 321 SE 2d 704, 253
Ga. 400 (1984) (civil RICO action allowed against state official and
employees conducting the Georgia Department of Labor as a RICO
enterprise); McCoy v. Georgia Dept of Administrative Services, (Ga. App.
2014) (civil RICO judgment against Georgia DFCS workers for fabricating
charges and evidence in the course of their state employment). Instead, the
Order merely relies on a negative inference with respect to Plaintiff’s claims
in order to grant the dismissal.
In the only actual reference to the RICO statute under which the
claims are brought, the Order claims there is no waiver of sovereign
immunity found in OCGA § 16-14-3(g) [sic]. Order, p. 6. The Order does
not say what Section 16-14-3(6) does mean, if defining a criminal RICO
enterprise to include governmental entities does not mean the RICO Act may
reach into state agencies, as the courts found in Caldwell and McCoy.
The Order does not consider other indicia of waiver of sovereign
immunity found throughout the overall structure of the Georgia RICO Act:
OCGA § 16-14-2 (legislative intent to prevent harm to state and
subversion of state economy).
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OCGA § 16-14-3(9)(A) (inclusion of Section 16-10-20, GCSPA, and
theft by deception as RICO predicate acts—all of which address state
government and contradict the discretionary function immunities relied on
by the Court).
OCGA § 16-14-4 (specifically provides for respondeat superior civil
liability for RICO predicate acts).
OCGA § 16-14-6(a) (authorizing injunctive relief for RICO predicate
acts).
OCGA § 16-14-6(a)(3) (specifically authorizing injunctive relief to
reorganize a governmental entity that is being controlled as a RICO
enterprise).
OCGA § 16-14-6(c) (authorizing civil action and punitive as well as
treble compensatory damages for criminal RICO predicate acts).
OCGA § 16-14-6(e) (equivalence of civil action and criminal
prosecution under the RICO statute). It is clear that government officials are
not immune from criminal prosecution under RICO, and bear civil liability
on the same basis, as demonstrated in Caldwell and McCoy.
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The Order cites respondeat superior immunity under the GTCA for
tort claims, while ignoring the explicit respondeat superior liability
authorized at OCGA §16-14-4 for RICO claims. Order, p. 6.
The Order likewise cites the OCGA § 50-21-30 bar to punitive
damages for tort claims against the state in the GTCA, and does not address
the specific authorization of punitive damages against individual defendants
for criminal RICO predicate acts at OCGA § 16-14-6(c). Order, p. 7.
Finally, the Order states that Plaintiff’s injunctive relief is dependent
on underlying tort and contract claims—with no mention of the RICO Act
specifically authorizing injunctive relief at OCGA § 16-14-6(a) for the
criminal conduct alleged. In fact, the Order never in any way addresses the
criminal nature of the allegations in the Complaint. The Order makes no
reference whatever to the Motion, and its grounds for injunctive relief
founded in the Georgia RICO Act, or of the claims and allegations of the
Amended Verified Complaint noticed in the Motion prior to the premature
filing of the Order.
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CERTIFICATE OF SERVICE
Undersigned counsel hereby certifies that all Defendants in this action have
been served this Motion for Stay via electronic service, this 8th day of
December, 2014, as follows:
Samuel S. OlensDennis R. Dunn
Kathleen M. Pacious
Annette M. Cowart
Loretta L. Pinkston
Christopher A. McGraw
C. McLaurin Sitton
Office of the Attorney General
40 Capitol Square, SW
Atlanta, Georgia 30334-1300
STEPHEN F. HUMPHREYS, P.C.
/s/ Stephen F. Humphreys
___________________________
STEPHEN F. HUMPHREYS
Georgia Bar No. 378099
P.O. Box 192
Athens, GA 30603
1671 Meriweather Drive