District Judge John G. Koeltl


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Defendants moved to dismiss plaintiff’s complaint asserting claims of breach of contract, breach of fiduciary duty, fraud, and RICO violation. Plaintiff’s complaint arose from a series of transactions that, as plaintiff alleged, gave defendants complete control of real estate entities and properties owned by plaintiff and eliminated any interest plaintiff had in said entities and properties. These transactions occurred while plaintiff served a prison sentence for various fraud and obstruction of justice charges. In support of their motion to dismiss, defendants argued that all plaintiff’s claims were barred by the statute of limitations. In response, plaintiff first contended that the limitations periods should have been tolled under the discovery rule, fraudulent concealment doctrine, and equitable estoppel. The court rejected plaintiff’s argument, finding that plaintiff had reason to suspect defendants as early as 2004 when he wrote to them about receiving K-1 forms. Thus, the court ruled that plaintiff’s causes of action were barred by the statutes of limitation–the longest of which was 4 years, since plaintiff had reason as early as 2004 to conduct reasonable diligence into possible claims plaintiff may have had against defendants.