Renowned Chicago Artist filed a multi-million dollar FRAUD Law Suit in Chicago against Golden Globes' publicists which is now at the epicenter of
Hollywood's latest melt down.

There is an entire back story to the latest Golden Globes scandal whose roots run deep into the heart of The Windy City.
The tale reads like a Classic Hollywood
" Who Done It. "

This story could not have had a juicier plot even if it was written by one of Tinsel Town's most creative writers.

The 1st Shot fired:

Nicolosi files a $10 Million FRAUD Law Suit in Cook County Federal Court against Golden Globes' publicists:

Michael Russell;

The Michael Russell Group.

Above: Photo of Michael Russell in happier times.

Following the filing of Nicolosi's FRAUD Law Suit against Russell:

1. The Hollywood Foreign Press Association now confirms with a TMZ reporter that, once Nicolosi's multi-million dollar Federal Law Suit against The Michael Russell Group came to the attention of the HFPA, they immediately and unceremoniously terminated their association with Michael Russell / The Michael Russell Group who had been the Golden Globes' publicist for 18 years.

2. The Ex-Golden Globes publicist, Michael Russell then sues HFPA alleging unethical deals.

3. Globes responds to Michael Russell and his PR Firm:

" We Got Your Fraud Right Here."

The Hollywood Foreign Press Association
responded in a written statement that
Michael Russell's complaint against the
Golden Globes is
"completely without merit"
and that
Michael Russell
is a
disgruntled former employee.

Representatives for the Hollywood Foreign Press Association (HFPA aka: The Golden Globes) tell TMZ that the reason they didn't renew their deal with the Michael Russell Group was that some "troubling allegations of impropriety" committed by The Michael Russell Group came to the attention of the HFPA.

According to The Hollywood Reporter, there was a lawsuit filed in Cook County Federal Court where The Michael Russell Group PR firm was sued for fraud by famed Chicago artist, Nicolosi, among other things, that law suit points to a supposed charity gig where The Michael Russell Group allegedly misrepresented the involvement of several key sponsors and partnerships including Cunard cruise line, Prince Charles' charity, The Princes' Trust and Entertainment Tonight.


In Summary:
Before Russell filed his law suit against The Hollywood Foreign Press, Nicolosi sued Russell and this was the catalyst which sparked the chain reaction that led up to the recent Golden Globes debacle.
In the end, according to the reps for The Hollywood Foreign Press:

"the HFPA chose not to renew their contract (with
The Michael Russell Group)."

Chicago dentist and artist Dr. Nicolosi sued Russell; Locascio; Braunstein and his wife Laura; Donelle Dadigan, founder and president of the Hollywood Museum; and Stars for a Cause, claiming fraud.

Nicolosi charges he was "duped into participating in what he was led to believe was a legitimate charitable fund-raising campaign," only to discover he was being thrust into "a cesspool of greed-driven Hollywood posers" who were "perpetrating a deceptive scheme" that he said was for "their own personal enrichment."

AFP (Associated French Press) News Agency recently spoke with a representative of The Hollywood Foreign Press Association who emphatically dismissed Russell's law suit as being devoid of factual information and "completely without merit."

The HFPA went on the record with AFP stating that...

... " This is no more than a case of a disgruntled former consulting firm, whose contract was not renewed, attempting to take advantage once again of the Globes international stage for their own [personal] gain. "

_____________________________

* Bombshell *

Cunard Cruise Line issued a formal Press Release on their web site, stating that they were indeed an official Sponsor of this charity campaign. Cunard confirms that the celebrities who participated in the alleged "charity" auction that was supposed to benefit
Prince Charles' The Princes' Trust include:

• Daniel Craig



• Leonardo DiCaprio



• Cate Blanchett



• Helen Mirren



• Meryl Streep



• Beyonce



• Jennifer Hudson



• Brad Pitt



• Angelina Jolie



• Matt Damon



• George Clooney



• Sasha Baron Cohen



• Eddie Murphy



• Jack Nicholson



• Geena Davis



• Steve Carell

• Annette Bening



• Penelope Cruz
  
  
• Forest Whitaker.
  

* Ultimately, public records show that there are court documents filed in the Cook County Federal Fraud lawsuit against Michael Russell & co defendants which appear to support the claim that only a small
percentage of all of the monies received by the "charity" organizers ever went to a legitimate charity.

Documents were submitted in the Nicolosi Federal law suit, listed as Exhibits, which support the charge against Michael Russell and his PR firm that Russell helped himself to a compensation amount in excess of $190,000.00 for his "philanthropic" work in helping his favorite "charity cause."

Click Here to read:
This complaint filed in Federal Court by Nicolosi against Michael Russell & co defendants was the catalyst leading to the end of Russell's 18 year relationship with the HFPA which culminated in the latest Golden Globes debacle.

ALERT...Based on the information available online, George Braunstein, Donelle Dadigan, of The Hollywood Museum, Steve LoCascio and Michael Russell, of The Michael Russel Group, have all been named as defendants in numerous FRAUD Lawsuits.On the Charity's web site, Cunard Cruise Line is listed as the Presenting Sponsor of Stars For A Cause which is named as the defendant in FRAUD CaseOn the Charity's web site, The Prince's Trust is listed as one of the Sponsors of Stars For A Cause which is named as the defendant in FRAUD Case.On the Charity's web site, Bonhams & Butterfields is listed as one of the Sponsors of Stars For A Cause which is named as the defendant in FRAUD Case.On the Charity's web site, Auri Footwear is listed as one of the Sponsors of Stars For A Cause which is named as the defendant in FRAUD Case.On the Charity's web site, Robyn Rhodes is listed as one of the Sponsors of Stars For A Cause which is named as the defendant in FRAUD Case.On the Charity's web site, Entertainment Tonight is listed as one of the Sponsors of Stars For A Cause which is named as the defendant in FRAUD Case.Page 1 - Stars For A Cause / Steve Lo Cascio FRAUD...Page 2 - Stars For A Cause / Steve Lo Cascio FRAUD...Page 3 - Stars For A Cause / Steve Lo Cascio FRAUD...Page 4 - Stars For A Cause / Steve Lo Cascio FRAUD...Page 5 - Stars For A Cause / Steve Lo Cascio FRAUD...Page 6 - Stars For A Cause / Steve Lo Cascio FRAUD...Page 7 - Stars For A Cause / Steve Lo Cascio FRAUD...Stars For A Cause . . . . . . . . . . . . . . . . ...Stars For A Cause . . . . . . . . . . . . . . . . .... . . . . . . . Fraud Law Suit Filed Against . . ...READ USA TODAY'S LATEST ARTICLES ON STARS FOR A CAUSE!Full ArticleSTARS FOR A CAUSE FEATURED IN AP GLOBES ARTICLE:http://news.yahoo.com/s/ap/20090111/ap_en_mo/golden_globes_vignettesFrom the article:"MAKE YOUR OWN BLING: For actors and actresses who take home trophies at Sunday's Golden Globe Awards, the bling doesn't stop there. Each winner will also be invited to design their own jewelry to benefit the Stars for a Cause charity.Winning stars will be invited to work with celebrity jeweler Robyn Rhodes to create one-of-a-kind items to wear on the red carpet during awards season. Men can also design their own diamond-studded shoes with Auri Footwear. Once they've worn the custom items, each piece will be auctioned to benefit the star's favorite charity.Rhodes has already interpreted the gem-encrusted visions of William Shatner, Goldie Hawn, Chris "Ludacris" Bridges and Jesse McCartney. Though none designed jewelry before, "they know what they want," Rhodes said."I'm pleasantly surprised because it seems that they do have a vision," she said. (For example, Shatner sought "something celestial" for his cuff links and tuxedo studs.)The only hitch is that some stars have been reluctant to part with their custom pieces, Rhodes said."They actually want to have a replica for their own collection," she said. "They don't want to give it up. They designed it and it's special."All the star-designed items will be auctioned May 28."CHECK OUT 'STARS FOR A CAUSE' BACKSTAGE AT THE GOLDEN GLOBEShttp://latimesblogs.latimes.com/thedishrag/2008/12/whats-going-on.htmlMOVE OVER, HARRY WINSTON! HOLLYWOOD CELEBS DESIGN RED CARPET JEWELRY FOR CHARITY."Entertainment Tonight" Presents "Stars for A Cause" Charity FundraiserSponsored by Cunard Line, Robyn Rhodes Jewerly, Auri Footwear and Bonhams & Butterfields AuctioneersHOLLYWOOD, CA, August 8, 2008 – “Entertainment Tonight” presents the 2008-2009 edition of “Stars For A Cause,” a unique entertainment industry fundraiser in which Hollywood celebrities will design custom hand-crafted jewelry to wear on the Red Carpet at major events including the “60th Primetime Emmy® Awards,” “66th Annual Golden Globe Awards®,” and the “81st Annual Academy Awards®.” Cunard Lines returns as a sponsor of this year’s campaign and is joined by Robyn Rhodes Jewelry, Bonhams & Butterfields Auctioneers and Auri Footwear.“The red carpet at Hollywood’s major awards events is recognized worldwide as the premiere locale to showcase high fashion,” said George Braunstein, co-founder of the “STARS” non-profit organization. “We’re giving this year’s award season nominees and presenters the opportunity to show their creativity by designing their own jewelry to wear on the red carpet. Most importantly, the jewelry will later be offered at auction by Bonhams & Butterfields to raise money for the celebrities’ favorite charities,” added Braunstein.“’Entertainment Tonight’ is pleased to support such a unique and compelling project,” said Linda Bell Blue, executive producer of “Entertainment Tonight” and “The Insider.” “There is nothing better than mixing Hollywood glamour with a charitable cause,” she added.Famous jewelry designer Robyn Rhodes will assist celebrities with their designs and help oversee the manufacturing of the jewelry. Rhodes’ jewelry is cherished by Hollywood’s elite, including Jessica Alba, Penelope Cruz, Scarlett Johansson and Eva Longoria. Incorporating precious and semi-precious stones, pearls, 14K Gold-filled and Sterling Silver chains, Robyn’s creations have been featured in movies, on television and in national magazines.Auri Footwear, the hip, Southern-California based design house of stylish men’s footwear has also partnered with “Stars For A Cause.” Entertainment’s “A” list men will have the opportunity to design their own Auri Footwear shoes and wear them to major red carpet events.The special celebrity-designed shoes will utilize a solid piece of machined billet aircraft aluminum that creates the main backbone of Auri Footwear’s patented new design technology. It is then Sterling Silver plated and the Auri logo embedded with diamonds. This mechanical chassis is topped off by exquisite Italian leather uppers with sheep skin lined interiors and, as with all Auri Footwear, utilizes Outlast temperature regulating materials originally developed for NASA and used in space suites to create even more comfort.The “Stars For A Cause” celebrity-designed jewelry collection and the Auri Footwear Celebrity Men’s Collection will board Cunard’s Queen Mary 2 for its April 26, 2009 Transatlantic Crossing from New York to Southampton, England where they will be previewed in London. Finally, the one-of-a-kind jewelry and footwear will be showcased at gala preview events in New York and Los Angeles hosted by Bonhams & Butterfields. The prestigious auctioneers will open bidding on the custom works during an auction at their gallery in Los Angeles. According to Edward Beardsley, VP and General Manager of Bonham & Butterfields Los Angeles, “We anticipate an international audience will express interest in the jewelry and footwear designed by the stars – and bidding could be quite competitive. Bonhams & Butterfields is honored to join this effort.”“As the most iconic British ocean liner company in the world, Cunard Line has long offered the only way to cross the Atlantic for scores of celebrities, royalty and even their dazzling jewelry. We take great pride in being the Official Liner transporting the Stars For A Cause celebrity jewelry and footwear collection to its unveiling in Europe prior to the worldwide auction,” shared Carol Marlow, President of Cunard Line.The "Stars For A Cause" celebrity-designed jewelry collection and the AuriFootwear Celebrity Men's Collection will board Cunard's Queen Mary 2 for itsApril 26, 2009 Transatlantic Crossing from New York to Southampton, Englandwhere they will be previewed in London. Finally, the one-of-a-kind jewelryand footwear will be showcased at gala preview events in New York and LosAngeles hosted by Bonhams & Butterfields. The prestigious auctioneers willopen bidding on the custom works during a May 28th auction at their galleryin Los Angeles.Aaron Eckhart www.theartofelysium.org Alicia Keys www.keepachildalive.org Amanda Seyfried www.pancreatic.org America Ferrera www.peacegames.org Amy Adams www.ejaf.org Andrew Stanton (Wall-E Dir.) www.redcross.org Angelina Jolie www.mjpasia.org Anna Paquin www.amnestyusa.org Anne Hathaway www.feedingamerica.org Ben Harper http://www.healthychild.org Bette Midler www.nyrp.org Brad Pitt/Angelina Jolie www.mjpasia.org Charlize Theron www.charlizeafricaoutreach.org Chris "Ludacris" Bridges www.mptvfund.org Colin Farrell www.princes-trust.org.uk Colin Farrell/Brendon Gleeson www.princes-trust.org.uk David Duchovny www.unicef.org Debbie Matenopoulos www.starsforacause.org Dule Hill Dustin Hoffman www.welcomebackveterans.org Eddie Montgomery www.camphorsinaround.org Emma Thompson www.actionaid.org Glenn Close www.fountainhouse.org Goldie Hawn www.thehawnfoundation.org Hayden Panettiere www.savethewhales.org Hilary Duff www.kidswithacause.org Hilary Swank http://blueplanetrun.org Jane Krakowski www.hrc.org Jennifer Lopez www.amnestyusa.org Jesse McCartney Jonas Brothers www.stjude.org Jonathon Rhys Meyers www.hopefoundation.org Kate Winslet www.cardboardcitizens.org.uk Kim Cattrall www.lifeball.org Kirsten Dunst www.theartofelysium.org Laura Dern http://www.healthychild.org Mad Men (Cast & Matt Weiner) www.starsforacause.org Maggie Gyllenhaal www.witness.org Maria Menounos www.takeactionhollywood.com Mariah Carey www.wish.org Marisa Tomei www.vday.org Mary Hart/Mark Steines www.childrenshospitalla.org Meryl Streep www.equalitynow.org Michelle Pfeiffer www.cancer.org Mickey Rourke www.hsus.org Miley Cyrus www.thelibbyrossfoundation.com Neil Patrick Harris www.foodonfoot.org Paul Giamatti www.amnestyusa.org Penelope Cruz www.unicef.org Portia de Rossi www.theartofelysium.org Rex Lee Ricky Gervais www.cancer.org Robert Carlock (30 Rock Prod.) www.lymphoma.org.uk Rumer Willis Sally Hawkins www.raysofsunshine.org.uk Sandra Bullock www.warreneastoncharterfoundation.com Sean (Diddy) Combs www.inner-cityarts.org Sigorney Weaver www.theflea.org Slumdog Millionaire (Cast & Danny Boyle) www.doctorswithoutborders.org Stacey 'Fergie' Ferguson www.globalgreen.org Steve Carell www.autismspeaks.org Steven Spielberg www.righteouspersons.org Susan Sarandon & Son www.heifer.org Susan Sarandon/Evan Rachel Wood www.heifer.org Taylor Lautner Tina Fey www.autismspeaks.org Todd English Tom Hanks/Dustin Hoffman www.welcomebackveterans.org Trace Adkins Troy Gentry www.midtnwishes.org Tyra Banks www.dreamfoundation.org Tyson Beckford www.stjude.org Victoria Beckham www.princes-trust.org.uk Viola Davis www.upwardboundhouse.org William Shatner www.horseshow.org Zac Efron www.wish.orgThe "Stars For A Cause" celebrity-designed jewelry collection and the AuriFootwear Celebrity Men's Collection will board Cunard's Queen Mary 2 for itsApril 26, 2009 Transatlantic Crossing from New York to Southampton, Englandwhere they will be previewed in London. Finally, the one-of-a-kind jewelryand footwear will be showcased at gala preview events in New York and LosAngeles hosted by Bonhams & Butterfields. The prestigious auctioneers willopen bidding on the custom works during a May 28th auction at their galleryin Los Angeles."Entertainment Tonight" presents the 2008-2009 edition of "Stars For A Cause," a unique entertainment industry fundraiser. This year Hollywood celebrities get to show their creativity by designing their own jewelry to wear on the red carpet. Cunard Lines returns as a sponsor of this year's campaign and is joined by Robyn Rhodes Jewelry, Bonhams & Butterfields Auctioneers and Auri Footwear.With the help of famed jewelry designer Robyn Rhodes, Stars design custom hand-crafted jewelry to wear at major events including the "60th Primetime EmmyR Awards," "66th Annual Golden Globe AwardsR," and the "81st Annual Academy AwardsR." Incorporating precious and semi-precious stones, pearls, 14K Gold-filled and Sterling Silver chains, Robyn's creations have been featured in movies, on television and in national magazines.George Braunstein has practiced business litigation and entertainment law litigation since 1988. He also has a large transactional entertainment law practice. He is admitted to legal practice by the State Bar of the California Supreme Court, the United States District Court, and the United States Supreme Court. He has handled numerous complex cases in a variety of fields, including entertainment, intellectual property, insurance bad faith, securities, products liability, real estate, constitutional law, and finance.He successfully litigated a copyright infringement case for Mel Gibson’s motion picture production company, Icon Productions in 2004. He currently represents all sides in the motion picture, television, and music recording entertainment industry, including motion picture production companies, distribution companies, and various talent interests including actors, directors, recording artists, music publishers, editors and screenwriters.Mr. Braunstein is intimately aware of all aspects of motion picture financing, production, and distribution, from the initial idea right through to worldwide distribution in both the theatrical and ancillary markets. He is very familiar with the film community and film marketplace on a first hand basis, and has a working relationship with both the American and foreign film production and distribution companies.He is a member of the California Trial Lawyers Association as well as various local bar associations. He is currently serving as a Judge in the International Court of Arbitration is Paris, frequently lectures at UCLA, USC, and has given seminars at the UCLA Independent Film and Television Producers Program. He lives in Brentwood, California with his wife and four children.George Braunstein's client focused practice, easily serves producers, writers and corporate clients. He currently represents all sides in the motion picture, television, and music recording entertainment industry, including motion picture production companies, distribution companies, and various talent interests including actors, directors, recording artists, m

Case 1:09-cv-03011 Document 1 Filed 05/19/2009 Page 1 of 75
IN THE UNII ED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
FILED: MAY 19, 2009
09CV3011
JUDGE SHADUR
) MAGISTRATE JUDGE VALDEZ
v. ) Judge BR
DONELLE DADIGAN, THE HOLLYWOOD )
MUSEUM, a California not for profit Corporation, ) No.
STEVE LOCASCIO, MICHAEL RUSSELL, )
THE MICHAEL RUSSEL GROUP, ) JURY DEMAND
GEORGE BRAUNSTEIN, LAURA BRAUNSTEIN)
AllCase 1:09-cv-03011 Document 1 Filed 05/19/2009 Page 1 of 75
IN THE UNII ED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
FILED: MAY 19, 2009
09CV3011
JUDGE SHADUR
) MAGISTRATE JUDGE VALDEZ
v. ) Judge BR
DONELLE DADIGAN, THE HOLLYWOOD )
MUSEUM, a California not for profit Corporation, ) No.
STEVE LOCASCIO, MICHAEL RUSSELL, )
THE MICHAEL RUSSEL GROUP, ) JURY DEMAND
GEORGE BRAUNSTEIN, LAURA BRAUNSTEIN)
All

Case 1:09-cv-03011 Document 1 Filed 05/19/2009 Page 1 of 75
IN THE UNII ED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
FILED: MAY 19, 2009
09CV3011
JUDGE SHADUR
) MAGISTRATE JUDGE VALDEZ
v. ) Judge BR
DONELLE DADIGAN, THE HOLLYWOOD )
MUSEUM, a California not for profit Corporation, ) No.
STEVE LOCASCIO, MICHAEL RUSSELL, )
THE MICHAEL RUSSEL GROUP, ) JURY DEMAND
GEORGE BRAUNSTEIN, LAURA BRAUNSTEIN)
All
Case 1:09-cv-03011 Document 1 Filed 05/19/2009 Page 1 of 75
IN THE UNII ED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
FILED: MAY 19, 2009
09CV3011
JUDGE SHADUR
) MAGISTRATE JUDGE VALDEZ
v. ) Judge BR
DONELLE DADIGAN, THE HOLLYWOOD )
MUSEUM, a California not for profit Corporation, ) No.
STEVE LOCASCIO, MICHAEL RUSSELL, )
THE MICHAEL RUSSEL GROUP, ) JURY DEMAND
GEORGE BRAUNSTEIN, LAURA BRAUNSTEIN)
Allof The Hollywood Museum, include: cleaning the bathrooms, dusting, vacuuming, giving tours,
working with her staff, dealing with tourists and visitors, dealing with community visitor
convention bureaus, dealing with different studios and production companies that bring exhibits
to the museum and, of course, lots of paperwork.

Case 109cv03011 Document 1 Filed 05192009 Page 1 of 75
IN THE UNII ED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION
FILED MAY 19 2009
09CV3011
JUDGE SHADUR

MAGISTRATE JUDGE VALDEZJudge BR
DONELLE DADIGAN THE HOLLYWOOD
MUSEUM a California not for profit Corporation No
STEVE LOCASCIO MICHAEL RUSSELL
THE MICHAEL RUSSEL GROUP JURY DEMAND
GEORGE BRAUNSTEIN LAURA BRAUNSTEIN
AllJA LAURA AICADE and STARS FOR A
CAUSE a California not for profit Corporation

Defendants
COMPLAINT
NOW COMES Dr Joseph Nicolosi by and through his attorneys and for his complaint
states as follows
Jurisdiction and Venue
i This matter is brought pursuant to 28 USC 1332 because the parties are diverse
and the amount sought is over 75000 exclusive of interest and costs
2 Venue is appropriate in this forum based upon the fact that Nicolosi was solicited
by defendants in this district the Defendants communicated with Nicolosi countless times in this
district Nicolosi performed his obligations that are a material aspect of this case in this district
the defendants organized a Public Art Exhibition to promote SFAC that was conducted in this
district and numerous other acts were performed within this district The only contact that
Nicolosi had with California during his entire year and a half involvement with SFAC was
limited to attending three Award Shows and one Gala Nicolosi has resided in Cook County for
over 25 years Nicolosi is a life long resident of Illinois he hails from a family of several
DR JOSEPH NICOLOSI
Plaintiff

Case 109cv03011 Document 1 Filed 05192009 Page 2 of 75
generations of Illinois residents he is a licensed practicing doctor of dental surgery in Cook
County and has been serving the members of this community as a practicing health professional
in Illinois since graduating from dental school in the 1980s Nicolosi creates portraits of many
of todays top luminaries in entertainment sports political and corporate arenas right here in his
Chicago art studio just off Michigan Avenue and delivers his signature portraits to clients all
over the world In summary Nicolosi spent 1000s of hours of time related to the material
aspects of his involvement with the defendants in this case in Chicago Illinois while spending
approximately 30 hours in California Many of the witnesses are located in this jurisdiction as
well as in NYC Florida and other locations outside of California which are much closer and
more convenient to get to from Chicago than Los Angeles Other than the defendants virtually
all of the witnesses in this case are in the greater Chicagoland area and nonCalifornia residents
Nature of the Case
3 This is the ease of an ardent Chicago Dentist and Illinois native who applied his
exceptional artistic talent and his solid Midwest work ethic over the course of many years of
good oldfashioned hard work to eventually become the globally acclaimed Celebrity Pop Artist
Nicolosi who was duped into participating in what he was led to believe was a legitimate
charitable fundraising campaign only to find himself unknowingly thrust into the middle of a
cesspool of greed driven Hollywood posers who in actuality were perpetrating a deceptive and
multifaceted Ponziesque scheme which manipulates charities and non for profit organizations
and causes for their own personal enrichment Donelle Dadigan who hails from Beverly Hills
and is allegedly a descendent of one of the oldest and wealthiest California families personally
directs her a gents including her publicists and her lifelong close personal friendattorney
George Braunstein on how to perpetrate such a scheme As thiS selfappointed matriarch of her
2
Case 109cv03011 Document 1 Filed 05192009 Page 3 of 75
own 501 c3 corporate family Dadigan has somehow managed to stay below the radar of
governmental regulatory agencies In less than 2 years Dadigan personally enriches herself to
the tune of approximately 150000 while her personal publicists Locascio and Russell and The
Michael Russell Group personally enrich themselves to the tune of approximately 5190000 and
her lifelong close personal friendattorney personally enriches himself and his family to the tune
of approximately 150000 In all Dadigan and her codefendants personally receive and enjoy
close to half a million in monies worldwide first class travel and other benefits as a result of
their association with the purported charities while the charities spend in excess of 15 million
in other nonitemized and questionable expenses and ultimately donate the disproportionately
minute sum of 340000 to legitimate charitable causes In the most recent chapter of this saga
neither Dadigan nor her accomplices ever honor their word or obligations to Dr Nicolosi despite
the thousands of hours that he spent in his Chicago art studio creating celebrity portraits and
otherwise promoting an alleged charity
The Parties
4 Dr Joseph Nicolosi Nicolosi is an adult citizen of Illinois
5 Donelle Dadigan Dadigan is an adult citizen who resides in Beverly Hills
California She is the founder and president of The Hollywood Museum
6 The Hollywood Museum is allegedly a California notforprofit Corporation
Dadigan is the president Dadigans mother Eleanor Dadigan is the treasurer George Braunstein
is the secretary and George Braunsteins wife Laura Braunstein and Dadigans aunt Lillian
Tavlan are on the Board of Directors
7 Steve Locascio Locascio is an adult citizen of California He is a publicist who
offers a full range of marketing and production services to clients in California from a spare
3
Case 1:09cv03011 Document 1 Filed 05192009 Page 4 of 75
bedroom in the house he shares with Michael Russell Upon information and belief he is the
owner or Cinepoint Productions Inc and MU}IS LLC
8 Michael Russell Russell is an adult citizen of California He is a publicist who
offers a fiill range of marketing and production services to clients in California from a spare
bedroom in the house he shares with Locascio
9 The Michael Russell Group is a California limited liability company formed by
Russell which offers a full range of marketing and production services to clients in California
Upon information and belief during all times pertinent to this case The Michael Russell Group
has its only office in spare bedroom in a home Locascio and Russell share The Michael Russell
Groups mailing address is to a mailbox at UPS store that deceptively identifies the mailbox
number as a commercial office suite
10 George Braunstein Braunstein is an adult citizen of California He is an attorney
who upon information and belief is licensed to practice law in California Upon information and
belief he is a lifelong close personal friend of Dadigan and has represented Locascio and Russell
for many years
11 Laura Braunstein is an adult citizen of California She is the wife of George
Braunstein She has used other names and aliases such as Laura Alcade and Laura Braun
12 Stars for a Cause SFAC is a corporation organized and existing under the laws
of the State of California and is allegedly a California notforprofit corporation The articles of
incorporation for this entity were filed on or about August 31 2006 See Exhibit 1
Braunstein is the CEO CFO and the attorney for the SFAC and his wife Laura Braunstein is the
registered agent and secretary The address for SFAC is the same as the law office of George
Braunstein The members of the Board of Directors are Maria Alcade Laura Braunsteins
4Case 109cv03011 Document 1 Filed 05192009 Page 5 of 75
mother Michael Russell Elida Chavez and Timothy McGonigle
13 Upon information and belief during all relevant times Russell and Locascio spoke
with Dadigan numerous times on a daily basis pertaining to matters related to SFAC and took
instruction directly from Dadigan pertainin g to matters related to SFAC Dadigan was
introduced to The Michael Russell Group through the publisher and associate publisher of The
Hollywood Reporter in approximately 2003
14 Upon information and belief Braunstein spoke to Locascio andor Russell on a
daily basis pertaining to matters related to SFAC
15 Upon information and belief Dadigan pays Locascio andor Russell andor
entities they control a 10000 monthly retainer to act as her publicist
Background Facts
16 Locascio has repeatedly and consistently told Nicolosi and many others on
numerous occasions that Dadigan is a descendent of George A Ralph the founder of Ralphs
Grocery the largest food retailer in Southern California Ralphs Grocery was founded in 1873 in
Los Angeles and is the oldest Supet uarket chain west of the Mississippi Ralphs Grocery was a
family owned business until 1968 when the company was sold for 60 million which is the
equivalent to in excess of 500 million today Upon information and belief Dadigan grew up
with great wealth as a member of one Californias oldest and wealthiest families Dadigan
currently resides in a palatial estate in Beverly Hills California Dadigan claims she was a
school teacher for a few years in the late 1970s to early 1980s In approximately 1995
Dadigan purchased the historic Max Factor building in Hollywood California which is right
around the corner from the Hollywood Walk of Fame Dadigan alleges that she personally spent
7 million of her own money to restore the building Dadigan then formed The Hollywood
Case 109cv03011 Document 1 Filed 05192009 Page 6 of 75
Museum allegedly a California not for profit corporation to showcase what Dadigan claims to
be authentic movie memorabilia Dadigan routinely makes representations in person as well as
in the national media that The Hollywood Museum is a not For profit corporation However as
President Dadigan herself directs the charity to lease space in the Max Factor building which
she owns herself for an inordinate sum of money Dadigan is responsible for her "charity" to
accrue an astonishing 105000 per month in rent See Exhibit 2 Statement 10 According to
The Hollywood Museums 2006 IRS Form 990 Tax Return which was signed by Dadigan under
penalties of perjury as of May 20 2008 The Hollywood Museum owes Dadigan the
unimaginable amount of 54 million in accrued rent See Exhibit 2 Statement 10
17 The Hollywood Museums 2006 IRS Form 990 Tax Return covers affairs from
July 1 2006 through June 30 2007 According to the 2006 IRS Foot] 990 Tax Return which
Dadigan signed herself under penalties of perjury The Hollywood Museum obtained 113141
in direct public support and 109398 in program service revenue including government fees and
contracts of 109398 and allegedly incurred 230586 in expenses which included accordin g to
the tax return upon information and belief paying Dadigan 60107 in rent and 20414 for auto
expense See Exhibit 2 page 2 and statement 2 At least one of Dadigans multiple vehicles
which she is commonly known to have been driving in Beverly Hills is a late model mint green
Bentley Coupe Dadigan claims that she works full time at The Hollywood Museum and
according to Dadigans own sworn testimonyher duties and job responsibilities as the President
of The Hollywood Museum include cleaning the bathrooms dusting vacuuming giving tours
working with her staff dealing with tourists and visitors dealing with community visitor
convention bureaus dealing with different studios and production companies that bring exhibits
to the museum and of course lots of paperwork
Case 109cv03011 Document 1 Filed 05192009 Page 7 of 75
18 Dadigan has stated that she works closely with numerous charities and non for
profits including SFAC The Jose Iturbi Foundation The Ebell Women's Club The Hollywood
Women's cl ub The UJF The United Jewish Council The Jewish Federation for Women All
Saints Episcopal Church The Hollywood Police Activities League The Hollywood Police
Communities Board The Hollywood High School Hollywood Chamber of Commerce
Hollywood Historic Trust Hollywood Business Improvements and the Hollywood Property
Owners Organization among others
19 Dadigan is the selfproclaimed beloved goddaughter of both Marion Frances
Seabury and her long time companion Jose Iturbi who was the world renowned conductor
pianist and actor who shattered world records for the sales of classical music in the 1930's and
1940's and who was the first classical artist to sell 1 million records In addition Iturbi was the
first classical musician to receive a star on Hollywood's worldfamous Walk of Fame on
Hollywood Boulevard near The Hollywood Museum Iturbi also appeared in several MGM
movies in the 1940's including Anchor's Away starring Gene Kelly and Frank Sinatra Shortly
after Iturbi's death Dadigan acted quickly to cofound the Jose Iturbi Foundation a California
501c3 exempt private foundation Coincidentally not only is Dadigan the president of the
Jose Iturbi FoUndation but Dadigan's elderly mother Eleanor who is known to be of
compromised physical condition is listed as both the vice president and treasurer Laura Alcalde
alkia Laura Braunstein is the secretary while Dadigan's attorney George Braunstein is a director
of the Foundation See Exhibit 3 statement 10 The mailing address of the Jose Iturbi
Fomdation is 11755 Wilshire Boulevard Suite 2150 Los Angeles CA 90049 which is the same
address as George Braunstein's law office as well as Braunstein's other alleged charity SFAC
See Exhibit 3 page 1
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20 Andther corporation affiliated with Dadigan TSW ill LLC shares the same
address In addition Dadigan is listed as the president of a laundry list of other corporations
including LUCKY PIERRE INC THE HOLLYWOOD STARCOURT LTD GREEN LEAF
CONSTRUCTION MANAGEMENT CORPORATION PLATINUM PENNY INC
BEVERLYHILLS PRIME PROPERTIES INC and ALMA HORIZONS Dadigan lists the
mailing address for each of these corporations as her own personal Beverly Hills residence
Dadigan lists both The Hollywood Museum and BEVERLY HILLS PRIME PROPERTIES as
lines item on the 2007 IRS form 990 Tax Return for the Jose Iturbi Foundation
21 In 2007 the Jose Iturbi Foundation began its annual classical music competition
that is conducted once a year over the course of a few days This competition is allegedly
sponsored by The Hollywood Museum and Cunard Cruise Line In 1980 Jose Irturbi died and
he left his vast estate to his former secretary and longtime companion Marion Frances Seabury
In January of 2006 Marion Seabury died After the death of Seabury Dadigan became a trustee
of the Marion Seabury Living Trust a 501c3 exempt private foundation Upon information
and belief and according to a lawsuit filed in Los Angeles case numbers BP 95224 SP 6928 and
SP 6944 in or around 2003 Braunstein acted as the attorney for Marion Seabury and changed the
terms of her living trust Upon information and belief George Braunstein who was Marion
Seabury's long time lawyer knew Seabury for most of her life Ironically Braunstein is now
representing his life long friend who was also Seabury's supposed goddaughter Donelle
Dadigan Upon information and belief after the death of Marion Seabury a challenge to the
modification of the trust terms was initiated and Braunstein represented Dadigan
22 According to the 2007 IRS Form 990 Tax Return the Marion Seabury Living
Trust has 13679537 in assets See Exhibit 4page 4 In 2007 the Marion Seabury Living
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Trust paid 120000 in compensation to three members of the Board of Directors Despite this
fact there is virtually no evidence to support Dadigan's position that the amount of
disproportionate compensation was justified for "managing" the affairs of her "godmother's"
Living Trust (See Exhibit 4 statement 14 Dadigan who is on the Board of Directors of the
Seabury Trust was paid 40000 based on her questionable and unfounded assertion that she
spent 20 hours per week devoted to her position as a director. See Exhibit 4 statement 14
Despite the fact that Dadician has sworn under oath that her position as Founder and President of
The Hollywood Museum is a full time job she also claims to have spent an average of 20 hours
per week devoted to her duties as one of the directors of The Marion Seabury Living Trust In
addition according to the 2007 IRS Form 990 Tax Return filed by the Jose Iturbi Foundation
which Dadigan signed herself she claims to have spent another 15 hours per week in her role as
president of the Jose Iturbi Foundation See Exhibit 4 statement 14 Exhibit 3 statement 10
By applying elementary mathematical principles to Dadi gan's inconsistent sworn and signed
statements in 2007 Dadigan makes the incredulous assertion that she devotes a total of 75 hours
each and every week of the year working for The Hollywood Museum The Jose Iturbi
Foundation and The Marion Seabury Living Trust of which Dadigan is listed as one of the three
Trustees The 75 hours per week which Dadigan claims to contribute to these three charity
organizations does not include any of the time that she devotes to any of the others charities
which she is involved with nor any of the six corporations each which list her to be president
According to the 2007 IRS Form 990 Tax Return the Marion Seabury Trust paid an
unbelievable 423309 for "maintenance of propertysecurity" 37225 in moving expenses and
the staggering sum of 785180 in legal fees See Exhibit 4 statement 7 and statement 4
respectively After the death of Seabury according to the 2007 tax return the Marion Seabury
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Living Trust donated 559000 to the Jose Iturbi Foundation See Exhibit 4 statement 15
23 There are numerous accounting peculiarities cited in each of the IRS F01111 990
Tax Returns of the charities signed by Donelle Dadigan In 2007 according to the IRS Form
990 Tax Return which Dadigan signed and filed on behalf of the Jose Iturbi Foundation it
received 500000 not 559000 from the Marion Seabury Living Trust See Exhibit 3 page
1 According to the same IRS F01111 990 Tax Return in 2007 the Jose Iturbi Foundation
awarded 280711 in prize money for the music competition and allegedly spent approximately
278000 in expenses See Exhibit 3 statement 5 These facts are inconsistent with statement
made by Dadigan on or about June 20 2008 to the Los Angeles Times when referring to the Jose
Iturbi Foundation that "[w]e raise it [all of the money] ourselves But our staff is very small
believe that all nonprofits should have very little of their funds going to administrative work and
the bulk going to what it is we want to promote" See Exhibit 5
24 The 2007 Marion Seabury Living Trust tax return states that the books are in the
possession of Dadigan See Exhibit 3 page 5 The 2007 IRS form 990 Tax Return for the
Jose Iturbi Foundation filed by Dadigan identifies that some of the alleged expenses incurred by
the "charity" include 76791 in fees for public relations paid to the Michael Russell Group
This despite the fact that there was only one competition all year which lasted only a few days
and involved a limited if not meager public relations campaign On the same form there is also
listed an expense of 38224 for occupancy when the location of the office of the Jose Iturbi
Foundation is Braunstein's law office this fact establishes no basis to justify the redundant cost
of an office space for the charity In that same return Dadigan also identifies other dubious and
unexplained expenses such as 15902 for unidentified meals and entertainment 36219 for
advertising 4745 for telephone bills 14350 for outside services 59848 for miscellaneous
10
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27500 for consulting and 10664 for travel conferences and meetings See Exhibit 3 page 7
and statement 5
25 Dr Nicolosi who is a globally renowned celebrity pop artist was born and raised
in Illinois and has spent all of his adult life in Cook County He creates all of his signature Pop
Artwork in his downtown Chicago art studio For the past several years clients from all around
the world have called upon Nicolosi in Chicago to create one of his trademark creations in their
likeness In 2003 Nicolosi was catapulted onto the world stage after having a chance encounter
with America's favorite Golden Girl Rue McClanahan in February of that year There was an
immediate connection and shortly after the pair met Nicolosi endeavored to create an original
portrait of Rue for her birthday as her lovable Blanche Devereazix character The national
media immediately took note and soon a steady stream of savvy glitterati from all corners of the
planet made their way to Nicolosi's Chicago piedaterre to have the maestro interpret their
image and translate it onto the canvas Though Nicolosi will often hand deliver his works to the
celebrity clients all of his fine athvork continues to be created solely in the same art studio in his
home town of Chicago where it all began Between 2003 and July 2006 Nicolosi created
literally dozens of original celebrity portraits and has developed a strong rapport with his galaxy
of celebrity clientele including Oprah Winfrey Madonna Patricia Neal Marlon Brando Rita
Moreno Eli Wallach Kitty Carlisle Lucy Arnaz Ashton Kutcher Demi Moore Mayor Gavin
Newsom of San Francisco Norman Mailer Helen Gurley Brown Alec Baldwin Larry Hagman
Barbara Eden Senator•Hillary Clinton William Wrigley Jr Marshall Field V Senator Barack
Obama Studs Terkel and Mayor Richard M Daley of Chicago By the middle of 2005 the sale
aim original signed Nicolosi portrait would fetch upwards of 9000 apiece
26 On or about August 14 2005 Nicolosi met Dadigan for the first time at the
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Hollywood Museum At the behest of Nicolosi's professional colleague Johnny Grant the
honorary Mayor of Hollywood and President of the Hollywood Walk of Fame Nicolosi agreed
to meet with Dadigan personally and show her the original autographed portrait of Patricia Neal
which he created on the occasion of Ms Neal's receiving her own Star on The Hollywood Walk
of Fame in May of that year See Exhibit 40 Ms Neal and Nicolosi became fast friends once
they first began working together in March 2004 Ms Neal has been Nicolosi's guest in Chicago
on occasion to raise money for numerous legitimate causes in Chicago and throughout the State
of Illinois Nicolosi had never met Dadigan before and he had never heard of The Hollywood
Museum Grant implored Nicolosi to go to The Hollywood Museum with the portrait of Patricia
Neal as a favor to him Nicolosi's portrait of Ms Neal featured the legendary actress in her
Oscarwinning role from the movie Hud In 1963 Neal won the Academy Award for Best
Actress for her performance in Bud costarring screen legend Paul Newman Because of the
exceptional provenance associated with this particular piece of fine artwork the estimated value
of the autographed portrait in 2005 was set at 25000 See Exhibit 40
27 During that first meeting with Dadigan she introduced the artist to her elderly
mother Eleanor Dadigan also thanked Nicolosi for agreeing to meet with them and especially
for allowing the autographed portrait of Ms Neal to be loaned to The Hollywood Museum
Dadigan advised Nicolosi that she personally would be very interested in working with him as
she was involved with numerous "charitable" endeavors which could greatly benefit from the
level of publicity which Nicolosi and his artwork could bring to any of these worthy causes
During the entire two and one half hour meeting Dadigan never once disclosed to Nicolosi that
she personally would in any way become monetarily enriched through Nicolosi's involvement
with any of her non for profits Dadigan did tell Nicolosi that she would like for him to return to
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the museum again so that she may introduce the artist to Russell and Locascio as The Michael
Russell Group acted as her publicist She informed Nicolosi that The Michael Russell Group
were also the publicists of the Golden Globe Awards and The Hollywood Museum
28 On or about August 16 2005 Nicolosi met Locascio and Russell for the first time
at Mel's Diner At this meeting Dadigan told Nicolosi she had vast experience raising monies
for charities she had no reservations in sharing with Nicolosi her "outstanding reputation in the
Hollywood community" and in its tony fundraising circles In front of Dadigan Locascio
volunteered her privileged pedigree to Nicolosi Dadigan and Locascio gushed over how well
Dadigan was connected in Hollywood and that she had numerous political connections in
California Some of the previous experiences which Locascio and Russell cited as having
participated in with Dadigan as her publicist included familiar celebrity names such as Johnny
Grant Francis Ford Coppola Martin Scorsese and Margaret O'Brien At this meeting Nicolosi
advised Dadigan Locascio and Russell of the details of his standard working arrangement with
charities when he lends his name and likeness to them to raise money and public awareness for
charities Nicolosi explained to them that he creates original artwork for the charity which is
then autographed by the celebrity subject and subsequently goes to auction 40% of the proceeds
from the sale of the artwork would then be given to the charity while 60% of the proceeds would
go to offset Nicolosi's costs which include his time artwork materials airfare hotel costs
meals car rental crating of the artwork shipping of the artwork insuring the artwork etc The
60% which would go to Nicolosi also covers his personal appearance fee as well as a Q&A
Meet and Greet with the artist
29 Between approximately August of 2005 and July of 2006 Nicolosi was
repeatedly and frequently contacted in Chicago by Russell Locascio and Dadigan via telephone
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and email about Nicolosi's artwork the events surrounding the promotion of the artwork the
celebrities who commissioned the artwork and about the potential of possibly working on an
event together with Dadigan in the future During this time Russell Locascio and Dadigan
picked Nicolosi's brain as to more details pertaining to creating joint ventures with artists to raise
money for charities Nicolosi was always happy to help them out and share his expertise on this
topic with them Nicolosi expressed his willingness to help Dadigan personally out in any way
that he was able to do so and he always made his best efforts to make time for Dadigan's phone
calls when possible On or about October 19 2005 Locascio sent Nicolosi an email telling him
he should deal with Dadigan directly about forming a joint venture to raise money for charities
See Exhibit 6
The Fraudulent Inducement of Nicolosi
30 On July 19 2006 Nicolosi received an email in Chicago from Dadigan through
her publicist Russell who asked Nicolosi to immediately contact him about a potential project
See Exhibit 7
31 Shortly after receiving the email on July 19 2006 Nicolosi partook in telephone
conversations with both of Dadigan's publicists During Nicolosi's conversation with Locascio
he reconfirmed with Nicolosi that he and Russell were the publicists for the Golden Globes and
that he Russell The Michael Russell Group and Dadigan wanted to work with Nicolosi on a
project to raise money for the Hollywood Museum and possibly other charities in Los Angeles
Locascio made representations to Nicolosi that he Russell and Dadigan had extensive
connections in the entertainment business and they had attained an impeccable reputation in the
community and fundraising circles When referring to the reputation of Locascio Russell and
The Michael Russell Group in Hollywood during this same time period Dadigan herself has
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stated under sworn oath that "they have a great reputation in town [and] in the entertainment
industry" Still under oath when referring to how lucky Dadigan is to have been chosen by the
Michael Russell Group to be one of their clients Dadigan states "you know were just a little
museum I would have never fathomed being able to have their services or to even get their
attention frankly" Dadigan made these representations to Nicolosi and certainly did everything
in her power to convince Nicolosi of the impeccable reputation and connections that she and The
Michael Russell Group have in the entertainment business and in all of the Hollywood
fundraisin g circles yet in her sworn testimony for the same time period but given in a different
venue Dadigan made a sworn statement that her credibility had been "seriously" and "critically"
damaged in both in the entertainment industry and in charitable fundraising circles Dadigan
through her publicists Locascio and Russell told Nicolosi that they wanted Nicolosi to create
original portraits of various entertainment celebrities in conjunction with Entertainment
Tonight's coverage of virtually all of the award shows during the 20062007 award show season
It was the intention of Dadigan Locascio and Russell that the original portraits created by
Nicolosi would be sold by way of a world wide online auction through Ebay via SFAC's contract
with New York — based LiveAuctioneers and that a percentage of the proceeds from the online
auction would benefit The Hollywood Museum as well as The Grammy Foundation am±AR
headquartered in New York City and The Martin ScorseseFilm Foundation
32 In July andor August of 2006 Nicolosi was told by Locascio Russell The
Michael Russell Group and Dadigan through her publicists that
a The charity campaign was "confirmed" to attend the following award
shows The Emmy Awards — August 27 2006 The Hollywood Film
Festival — October 2006 The Golden Globes — January 15 2007 The
Sundance Film Festival — January 18 2007 The Academy of Motion
Picture Award Show luncheon — February 5 2007 The Screen Actors Guild —
February 8 2007 and The Grammys — February 11 2007
Case 109cv03011 Document 1 Hied 05192009 Page 16 of 75
b The charities involved were New York based amfAR Martin Scorcese Film
Foundation the Grammy Foundation and The Hollywood Museum
c Sharpie agreed to sponsor SFAC and agreed to pay a sponsorship fee of
375000 sponsorship fee
d That via SFAC's contract with New York based Liveauctioneers EBay agreed
to sponsor SFAC and agreed to pay a sponsorship fee of 250000
e That via SFAC's contract with New York based Liveauctioneers EBay agreed
to provide an eight month promotion on EBay home page which was worth
65 million
f That via SFAC's contract with New York based Liveauctioneers EBay agreed
to purchase 1000000 in ad spots on the television show Entertainment
Tonight
g Entertainment Tonight would provide a minimum of 20 minutes of air time for
promotion and
h Entertainment Tonight would provide a link to Nicolosi on its website which was
worth at least 35 million
33 On August 4 2006 Locascio wrote an email to Nicolosi See Exhibit 8 which
stated among other things
a Sharpie had agreed to pay a 375000 sponsorship fee and purchase 600000 in
ads on Entertainment Tonight
b Ebay had agreed to pay a 250000 sponsorship fee provide an 8 month
promotion on the eBay homepage which had a value of 65 million and was
going to purchase 1 million in ads on Entertainment Tonight
c Entertainment Tonight had agreed to provide a link on its website which was
worth 35 million
34 The statements contained in paragraphs 32 and 33 were patently false and known
to be false when stated in that
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and The Grammys
b New York based arnfAR the Martin Scorsese Film Foundation and the Grammy
Foundation were not involved in anyway
c Sharpie had not agreed to pay a 375000 sponsorship fee and had not agreed to
purchase 600000 in ads on ET
d Ebay had not agreed to pay a 250000 sponsorship fee it did not provide an eight
month promotion on the Ebay homepage and did not purchase 1 million in ads
on Entertainment Tonight and
e Entertainment Tonight did not agree and did not provide a link on its website
35 The completely false representations made by Dadigan Locascio Russell and
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Case 109cv03011 Document 1 Filed 05192009 Page 17 of 75
The Michael Russell Group to Nicolosi that they were associated with New York based amfAR
the Martin Scorsese Film Foundation and the Grammy Foundation are especially material as
these charities arc all well known and extremely reputable throughout the world Each of these
charities is well established and enjoys a sterling reputation in the Alist celebrity realm
Working with only the most respected charitable organizations is paramount to Nicolosi He has
toiled for many years to establish a blemishfree "Nicolosi" brand and hence can only afford to
be associated with organizations and individuals with a comparable level of brand integrity
Working with charities of the stature of amfAR headquartered in New York City the 'Martin
Scorsese Film Foundation and the Grammy Foundation lends tremendous gravitas to the
Nicolosi brand which he has worked so hard establish
36 In July or August of 2006 Nicolosi began the process of creating a Biografia
catalogue to promote his involvement with SFAC and the numerous award shows in an effort to
raise money for the charities. See Exhibit 9 Throughout the several week creative process of
putting together the Biografia Nicolosi continually emailed the final draft of each page to The
Michael Russell Group for their final approval They in turn forwarded the images directly to
the Producers of Entertainment Tonight Both Entertainment Tonight and The Michael Russell
Group were overwhelming in their praises and approval of the beautiful pages of Biografia
Nicolosi received their written responses and approval for each and every page of the catalogue
Nicolosi invested over 25000 in materials printing binding color correction page set up
graphic design shipping and administrative costs to create • the Biografia catalogue The
Biografia was completed and delivered to the Mondrian Hotel in Los Angeles on or about
August 25 2006 Nicolosi autographed copies of Biogratia and sent via UPS to the producers at
Entertainment Tonight who were featured in the catalogue On or about August 26 2006
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Nicolosi delivered a copy of the Biografia to Locascio and Russell at the NBC Emmy Nominee
party at Spago in Beverly Hills CA Nicolosi provided Locascio with an additional autographed
Biografia for him to give to Dadigan Both Locascio and Russell told Nicolosi that were excited
about the quality and content of the Biografia
37 On or about August 25 2006 Braunstein created a document and sent it to
Nicolosi's attorney that stated he was the attorney for Locascio Russell and SFAC and among
other things that See Exhibit 10
2 The confirmed events covered by Entertainment Tonight include the Emmy Awards
the Hollywood Film Festival the Golden Globes Awards the Screen Actors Guild
SAG Awards the Academy of Motion Picture Arts and Sciences Oscar luncheon
the Sundance Film Festival and the Grammy Awards
3 Entertainment Tonight to provide link on their website between Entertainment
Tonight and Nicolosi's website
• • • • • • • •
4 eBbay [sic] and Liveauctioneerscom will provide a link to Nicolosi's website
38 The statements contained in paragraph 37 were false and known to be false at the
time they were stated in that:
a The campaign was not "confirmed" and did not attend the Hollywood Film
Festival the Sundance Film Festival the Academy of Motion Picture Arts and
Sciences luncheon the Screen Actors Guild Awards and the Grammy Awards
b Ebay via SFAC's contract with Liveauctioneers were not involved with SFAC
and never provided a link on their website to Nicolosi's website
e Entertainment Tonight had not agreed and did not provide a link to Nicolosi on its
website
39 Braunstein did not infoun Nicolosi or his attorney that SFAC was not yet in
existence or that he was going to be the CEO aid CFO of SFAC as well as its attorney that he
was on the Board of Directors of The Hollywood Museum and was a very close lifelong personal
friend of Dadigan In fact during the entire relationship Braunstein never told Nicolosi that he
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was in fact SFAC instead he always referred to SFAC as his client and that he would need to
discuss matters with his client Nicolosi discovered that Braunstein was actually SFAC in 2008
40 In approximately August of 2006 Locascio told Nicolosi that he would need to
create a website that could handle the traffic that was expected as a result of being on the Home
page of eBay because the websites of some of his past clients crashed as a result of the volume of
traffic In reliance upon the representations that Nicolosi would receive a link to the websites
Nieolosi retained a webmaster to create a server that could handle the traffic expected as a result
of being on the home page of eBay Nicolosi invested approximately 20000 with a webmaster
and another 15000 to 20000 to create a website capable of handling such traffic
41 Based on the flagrantly untrue representations made by each of the defendants
Nicolosi agreed to participate and create 30 original portraits in what he thought was a le gal and
legitimate fundraising campaign In August of 2006 Nicolosi spent virtually all his time
completing the 30 original portraits because the first award show was on August 27 2006
42 In or about August of 2006 Locascio told Nicolosi that if Nicolosi were to need
assistants to help him backstage during the Emory Award show that Nicolosi would need to
bring them with him to the 2006 Emmy Award show Nieolosi advised Locascio that there
would be a total of four individuals plus Nicolosi's attorney who would be flying into Los
Angeles with him for the proper handling of Nicolosi's affairs associated with the Emmy artwork
during all phases of the award show Locascio made it very clear that the charity would not be
responsible for any of their air fare hotels accommodations food or car rental expenses for the
members of Nicolosi's support team but that they would provide for the necessary credentials
and ticketspasses for the members of Nicolosi's team to gain access to all venues associated
with The Emmys Once Nieolosi arrived at Shrine Auditorium the day before the Emmy Awards
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for rehearsal and the setting up of his artwork he and the five members of his team worked with
the producers of Entertainment Tonight During rehearsal Nicolosi was informed that because
of heightened security he would only be able to have one assistant backstage with him the next
day during the actual award show Once Locascio learned of this restriction of backstage
passes he said that he would arrange for the other 4 members of Nicolosi's team to attend the
Emmy Award show inside the Auditorium since it would not be possible for them to be
backstage with Nicolosi That afternoon Locascio phoned Nicolosi's attorney and said that he
had tickets for the four members of the Nicolosi's team for entry into the Emmy Award Show
He apologized for the mix up and assured Nicolosi's attorney that the additional four members
would be close to the backstage area so that they could help Nicolosi after the award show
Then sometime in September long after the Emmy award show Locascio informed Nicolosi
that he had actually paid for the tickets for the four members of Niclolosi's team and that he paid
a total of 2200 out of his own pocket for the tickets Locascio demanded that Nicolosi
reimburse him for the costs of the four tickets because he had allegedly purchased them for 550
apiece Long after the 2006 Ernmy Award Show Locascio gave Nicolosi the ultimatum that if
he did not immediately reimburse him for the costs of the tickets that he would not allow
Nicolosi to attend any of the future award shows Nicolosi requested some form of receipt from
Locascio or some documentation which supported Locascio's claim showing I How much
Locascio had actually paid if any for the four tickets 2 What method of payment Locascio had
used and 3 to whom he had allegedly paid the 2200 Locascio became irate and stated that he
was insulted by Nicolosi's request Locascio said that he did not have access to the
documentation and demanded that Nicolosi pay him the 2200 solely based on Locascio's
"good word" The 550 amount seemed exceedingly high for a single ticket Upon researching
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the cost of Emmy tickets Nicolosi has since confirmed that according to the official Emmy
Award show vyThsite the costs of Emmy tickets range from 200 to 400 The official Erniny
website explains that the 400 tickets are sold out long in advance to the show Locascio never
did provide Nicolosi with any of the supporting documentation which he requested showing if
or how much Locascio had allegedly paid for the four Emmy tickets Upon information and
belief the tickets for the 2006 Emmy Award Show did not cost 55000 and in actuality it is
unlikely that Locascio paid anything at all for the four tickets which he demanded and received
the sum of 2200 from Nicolosi Ultimately based solely on Locascio's word and because of
his threats Nicolosi paid Locascio 2 200 for the four tickets
43 On or about August 18 2006 Nicolosi finished the original portraits During the
month of August 2006 Nicolosi and his attorney repeatedly asked Locascio where the portraits
should be shipped but these requests were completely ignored In the late afternoon of Friday
August 25 2006 Nicolosi was finally provided an address where the portraits should be shipped
Nieolosi's agents in Chicago crated packed insured and shipped 30 original signed Nicolosi
portraits to Los Angeles California for the Emmy Award Show which was scheduled to be
filmed less than two days later on August 27 2006 Because of Braunstein's refusal to respond
in a timely manner and to wait until the last minute to respond to any inquires made on behalf of
Nicolosi as to the address where the artwork needed to be shipped all of the crates of fine
artwork needed to be shipped from Chicago via the extremely costly priority overnight Saturday
delivery The original portraits were all created in Chicago by Nicolosi Nicolosi paid all the
costs associated with creating the original artwork and Locascio agreed to pay the cost to ship the
portraits from Chicago to California
44 Nicolosi also created 30 lithographs one for each of the original portraits in
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Chicago These lithographs were to be presented to eachof the 30 celebrities whose portraits
were created by Nieolosi so as to create a photoop with Nicolosi and each of the celebrity
subjects On August 27 2006 Nieolosi appeared at the 58 th annual Prime Time Emmy Awards
and his original portraits were prominently displayed on the set of Entertainment Tonight at the
award show Entertainment Tonight's host Mark Steines made representations on air that the
portraits would be auctioned online to benefit amfAR When Entertainment Tonight's Emmy
special first aired on national television the following evening ET's Mark Steines is shown
speaking to actress Mariska Hargitay and Nicolosi as Hargitay is shown autographing her own
Nicolosi portrait on the ET set Right after Hargitay finished autographing her Nicolosi portrait
Steines is shown presenting her with her own special Nicolosi lithograph and a copy of the
Biografia catalogue signed by Nicolosi as a special thank you to the actress from Nicolosi and
Entertainment Tonight During the rest of that segment Nieolosi appeared on Entertainment
Tonight accompanied by numerous other celebrities each autographing their own Nicolosi
original portrait including Kiefer Sutherland Julia LouisDreyfus Tony Shalhoub Steve
Carell and the cast of the hit television show The Office. Each of these four additional
celebrities are also shown receiving their own special Nieolosi lithograph and a signed copy of
the Biografia catalogue as a special thank you from Nieolosi and Entertainment Tonillht
45 On the afternoon of August 28 2006 the day after the Emmy Awards Locascio
was entrusted with the remaining 25 lithographs to hold for Nicolosi LoCascio instructed
Nicolosi to deliver the remaining 25 lithographs to Locascio's and Russell's home Nicolosi was
unaware of the fact that LoCascio and Russell operate their business out of small spare bedroom
in their cozy house an hour outside of Los Angeles He only learned such sometime in 2009
LoCascio informed Nieolosi that he would hold the 25 lithographs for safekeeping until the next
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award show when Nicolosi would have the opportunity to hand deliver each lithograph to the
celebrity subject and be photographed with each celebrity and their own Nicolosi artwork
Nicolosi entrusted these 25 lithographs into Locascio's possession Nicolosi never saw his
artworks again Upon information and belief these 25 lithographs were never given to the
celebrities and Nicolosi has no knowled ge as to the ultimate disposition of these lithographs
46 The 30 original portraits had a fair market value of at least 300000 30 x
10000 and the fair market value of the remaining 25 lithographs was approximately 30000
25 x 1200 Nicolosi also created 30 duplicate originals This set of 30 duplicates
accompanied with the set of originals that were stretched on stretcher bars and appeared on the
set of Entertainment Tonight @ the 58 th Annual Emmy Awards The duplicate originals have
disappeared and the last Nicolosi saw of them was when they were dropped off at the home
Russell and Locascio share The duplicate originals have a conservative fair market value of at
least 300000
47 On August 27 2006 Nicolosi appeared at the 2006 Emmy Awards in California
and the original portraits were prominently on display at the award show and Nicolosi and
Entertainment Tonight promoted SFAC at the award show Nicolosi and Entertainment Tonight
promoted SFAC despite the fact that neither was aware that SFAC was not yet in existence
48 After the 2006 Emmy Awards the defendants consistently refused to return phone
calls and emails snit by Nicolosi's attorney failed to timely and adequately respond to emails
failed to adequately and promptly inform Nicolosi about the status of the charity campaign and
constantly misled and misinformed Nicolosi Braunstein also directly contacted Nicolosi
numerous occasions despite the fact he knew Nicolosi had an attorney and was warned on
numerous occasions to stop communicating directly with Nicolosi
Case 109cv03011 Document 1 Filed 05192009 Page 24 of 75
49 In approximately September of 2006 according to a complaint filed by Salon
City Inc a National Consumer Magazine focused on the professional beauty salon industry
Locascio and SFAC made false statements to Salon City As a result of these false statements
Salon City filed a complaint against SFAC Steve Locascio and others See Exhibit 11 The
complaint alleged that false statements were made to Salon City to induce it to pay SFAC
60000 for the benefit of SFAC The complaint alleged that the defendants made the following
false statements
a Liveauctionerscom and eBay would provide a presence on eBay home page
b New York based amfAR was a sponsor and
c that the charity fundraising campaign would go to the Hollywood Film Festival
SAG the Oscar luncheon Grammy Awards and Independent Spirit awards
50 Nicolosi was unaware of the false statements made to Salon City by Locascio
SFAC and others
The Hollywood Film Festival
51 As per the terms of Nicolosi's agreement with the defendants the next Award
show that was to feature Nicolosi and his original artwork after the August 2006 Emmy Awards
was The Hollywood Film Festival which was scheduled to take place during the week of
October 18 2006
52 In September and October of 2006 numerous emails were sent on behalf of
Nicolosi by his attorney in Chicago to Braunstein asking for information regarding the
Hollywood Film Festival and for copies of the contracts SFAC had with Entertainment Tonight
Ebay ainfAR Sharpie New York based Liveauctioneers Mount Blanc Hollywood Museum
and Martin Scorsese Film Foundation These emails were ignored by Braunstein for months
53 During the fall of 2006 Nicolosi's attorney would call Braunstein's office from
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Chicago and a woman would answer the phone This woman would identify herself as
Braunstein's secretary Laura Alcade she never disclosed that she was not only Braunstein's
wife„ but that she was also the registered agent for SFAC It was not until approximately April
of 2007 that Nicolosi initially discovered that Laura Alcade was actually Laura Braunstein and
that she used numerous different aliases such as Laura Braunstein Laura Alcade and Laura
Braun ThiS deception was obviously done to confuse Nicolosi and others
54 On or about October 2 2006 Nicolosi was given the names of celebrities whose
poi Uaits he was to create for the Hollywood Film Festival Nicolosi in good faith immediately
began working on sketches of the portraits in Chicago and spent numerous hours over many days
completing the sketches in Chicago
55 On October 5 2006 Locascio had a phone conversation with Nicolosi's attorney
in Chicago and stated that they were still going to attend the Hollywood Film Festival that he
wanted Nicolosi to create original portraits and that he was waiting for Carlos de Abreu to tell
him the specifics the about location of the Entertainment Tonight booth at the Hollywood Film
Festival
56 On October 6 2006 Locascio sent an email to Nicolosi in Chicago which stated
to "hold off" on finishing the portraits until after he had a meeting with Entertainment Tonight
the next week because he was unsure of identity of the celebrities whose portraits were to be
completed See Exhibit 12
57 Throughout the entire month of October of 2006 Braunstein refused to respond to
numerous entails and phone calls about the status of the Hollywood Film Festival In fact
Braunstein never informed Nicolosi that he would not be creating artwork for nor attending the
Hollywood Film Festival
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58 Ultimately Nicolosi did not completely finish any portraits for the Hollywood
Film Festival because he was told to "hold off" he was never provided with the final list of
celebrities and the failure of Braunstein to communicate with Nicolosi or his attorney
59 After the Hollywood Film Festival Locascio explained to Nicolosi that they did
not attend the Hollywood Film Festival because Tom Cruise had just been fired from Paramount
and Tom Cruise's business partner had influence with The Hollywood Film Festival and that
because Entertainment Tonight was owned by Paramount that Entertainment Tonight would not
be welcome at the Hollywood Film Festival Obviously this cockamamie story manufactured
by Locascio was a figment of Locascio's vivid imagination and used to dupe Nicolosi into
believing that there was some legitimate excuse for not attending the Hollywood Film Festival
60 On or about October 23, 2006 Locascio in an effort to induce Nicolosi to continue
working with all of the Defendants told Nicolosi while he was in Chicago that he had scheduled
an exhibit of Nicolosi's artwork at the Museum of Contemporary Art in Los Angeles California
and that he needed information from Nicolosi It took several days and countless hours for
Nicolosi's Chicago agents to compile organize and forwarded copious photos text and
documentation to Locascio for this wild goose chase which ended as mysteriously as it began
Soon after Locascio received the voluminous set of privy Nicolosi documentation from Chicago
he never brought up the topic of a Nicolosi exhibit at the Museum of Contemporary Art in Los
Angeles again
61 On or about November 6 2006 Locascio told Nicolosi's attorney in Chicago that
they were going to have a phone conference call with the head curator of the Museum of
Contemporary Art on November 9 2006 On November 9 2006 Locascio wrote an email to
Nicolosi's attorney that staled that the phone conference had been rescheduled to November 13
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2006 because "My attorney has still not finalized a document for you" See Exhibit 13
62 On November 13 2006 no phone conference with the head curator occurred and
Nicolosi was never informed that there would be no phone conference call with the head curator
or with any member of the Museum of Contemporary Art On November 13 2006 Nicolosi's
attorney in Chicago wrote an email to Locascio about the status of the phone conference call and
the possibility of Nicolosi obtaining an exhibit at the Museum of Contemporary Art This query
by Nicolosi's attorney went unanswered and the subject was never discussed again by Locascio
2007 The Golden Globes
61 The Golden Globe Award show was scheduled for January 15 2007
64 On January 5 2007 after months of unanswered emalls phone calls voice mail
messages and letters from Nicolosi's attorney in Chicago Braunstein finally emailed Nicolosi's
attorney in Chicago the list of celebrities whose portraits were to be created by Nicolosi
Nicolosi was provided the list of celebrity names and instructed to create 20 original portraits
only 10 days before the Golden Globe Award Show After receiving the names of the celebrity
portraits Nicolosi once again spent virtually all his time in Chicago creating the original portraits
for the 2007 Golden Globes
65 In January of 2007 Braunstein gave Nicolosi an ultimatum to pay almost 3500
in costs to the charity or he would pull the plug on Nicolosi's involvement with the charity and
Entertainment Tonight would sue Nicolosi for not performing
66 On or about January 11 2007 Nicolosi finished 20 original portraits for the 2007
Golden Globes Award show These original portraits were all created in Chicago Illinois and
were shipped to California by Nicolosi These portraits had a Fair Market Value of 200000
20 x 10000 and Nicolosi paid for all the expenses to create these portraits and to ship them to
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California Because of Braunstein's refusal to promptly respond to inquires made on behalf of
Nicolosi and Braunstein's last minute threats and tactics all of the cases of fine artwork had to
be shipped from Chicago via the extremely costly priority overnight service
67 On or about January 12 2007 Nicolosi and SFAC executed a document entitled
Sponsorship Agreement See Exhibit 14 Nicolosi executed and signed the Sponsorship
Agreement in Chicago This document stated in part
2 The confirmed Award Shows for the season covered by ET include the Emmy
Awards the Golden Globe Awards Screen Actor Guild SAG Awards the
Academy of Motion Pictures Arts and Sciences Oscar luncheon the Sundance
Film Festival and the Grammy Awards
ET provide link on their website between ET and Nicolosi's website as soon as
possible
5 eBbay [sic] and New York — based Livcauctioneerscorn will provide link to
Nicolosi website when the auction website for the auction goes live on the
Internet
68 The document executed on January 12 2007 contained falsehoods that were
known to be false when made in that
a Nicolosi was not going to attend and did not attend the Screen Actor Guild
Awards The Academy of Motion Pictures Arts and Science luncheon the
Sunclance Film Festival and the Grammy Awards
b ET was not going to and did not provided a link to Nicolosi's website and
e As represented by SFAC Ebay via SFAC's contract with Liveauctioneers were
not going to and did not provide link to Nicolosi's website
69 Unbeknownst to Nicolosi also on January 12 2007 Braunstein filed a complaint
on behalf of numerous plaintiffs including several of the defendants in this case Dadigan the
Michael Russell Group and The Hollywood Museum against Mario Magro in Los Angeles case
no BC364757 See Exhibit 15 This complaint which was prepared by Braunstein alleged
among other things that Dadigan The Michael Russell Group and The Hollywood Museum were
involved with a charity fundraising campaign with a designer who created purses for celebrities
to kiss at the Golden Globes on January 16 2006 the Grammys on February 8 2006 and the
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Academy Award nominee's luncheon on February 13 2006 In the complaint drafted by
Braunstein (See Exhibit 15) he wrote Dadigan Russell and the Hollywood Museum had
suffered "serious damage to the credibility and reputation of the Plaintiffs both in the
entertainment industry and in charitable fundraising circles" The Michael Russell Group
Dadigan the Hollywood Museum and others "credibility and goodwill in the charity fund raising
community had been critically damaged" That the Plaintiffs had "affiliation and relationships
with key persons and corporate players in the entertainment industry and in the media
specifically Plaintiff's relationships with Access Hollywood Entertainment Tonight Getty
Images and with myriads of celebrities eg actors producers directors journalists etc who
could he called upon to participate in and to support a worthy and credible charity fund raising
effort" According to Braunstein's complaint filed on January 12 2007 the Plaintiffs'
relationships with key persons and corporate players in the entertainment industry and in the
media were seriously damaged as was the reputations of Dadigan Russell and the Hollywood
Museum both in the entertainment industry and in charitable fundraising circles
70 In response to the complaint drafted by Braunstein Mario Magro filed a
counterclaim alleging numerous causes of action See Exhibit 16
71 During discovery conducted in BC364757 on June 7 2007 Ebay provided an
affidavit which stated that it had no record of any kind of ever being contacted by Dadigan
Locascio Russell or Braunstein despite the fact Braunstein LoCascio Russell and Dadigan had
repeatedly stated to Nicolosi that Ebay was a sponsor of SFAC and Nicolosi would receive a link
on the homepage of Ebay See Exhibit 17
72 Dadigan has testified under sworn statement with penalties of perjury that the
damage to her reputation as a result of the actions as alleged by Braunstein in the complaint he
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drafted and filed was "appalling" and that The Hollywood Museum's reputation was ruined and
was unable to work again with the Martin Scorscse Film Foundation and the Grammy
Foundation None of this was ever disclosed to Nicolosi by any of the defendants
73 Virtually all the acts complained of in the January 12 2007 lawsuit drafted by
Braunstein mentioned in paragraph 69 and the resulting "serious" damage to Dadigan Russell
The Michael Russell Group and The Hollywood Museum occurred before Nicolosi became
involved with Dadigan and her brazen cast of unsavory characters who are listed as the plaintiffs
in the case drafted and filed by Braunstein
74 None of the defendants in the instant case informed Nicolosi about the facts as
alleged in the complaint drafted by Braunstein that a lawsuit had been filed and that their
credibility had been "seriously" and "critically" damaged in both in the entertainment industry
and in charitable fundraising circles in the ways alleged in the complaint It was not until
sometime in or around the beginning of 2009 that Nicolosi became aware of the facts alleged in
the complaint drafted by Braunstein and filed on January 12 2007
75 On January 15 2007 Nicolosi appeared at the Golden Globes and his original
portraits were prominently displayed on the set of Entertainment Tonight at the award show
Entertainment Tonight's host Mary Hart promoted SFAC on air with Nicolosi accompanied by
numerous celebrities each autographing their own Nicolosi original portrait including Meryl
Streep Eddie Murphy Jennifer Hudson America Ferrera Alec Baldwin Selma Hayek Helen
Mirren Ryan Seacrest Forest Whitaker Kyra Sedgewick Patrick Dempsey any many more
When Entertainment Tonight's Golden Globes segment aired on national television the
following night El's Mary Hart was shown speaking to Meryl Strecp and Nicolosi who were
both seated on the couch next to Hart As Streep was shown autographing her own Nicolosi
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portrait Hart specifically told Meryl Streep that her Nicolosi portrait would "be auctioned off
next May in Cannes " During the same airing when Mary Hart is seen discussing the SFAC
online auction with Eddie Murphy as he autographs his own Nicolosi portrait Hart tells Murphy
on camera that `an tAR is the major recipient of these monies"
The Sundanee Film Festival The Academy of Motion
Pictures The Screen Actors Guild Awards and the Grammes
76 Immediately after the Golden Globes and continuously through February of 2007
Nicolosi's attorney made numerous requests for in formation pertaining to the remaining award
shows including requests for the names of the celebrities whose portraits Nicolosi was to create
and specific details pertaining to award shows Most of these requests were completely ignored
by Braunstein Locascio Russell and Dadigan Ultimately Nicolosi was not provided with
sufficient or accurate information by the defendants to create original portraits and Nicolosi was
informed at the last minute that he would not be attending any of the award shows The award
shows occurred without Nicolosi attending nor creating original any additional portraits.
77 On January 22 2007 which was the week of the 2007 SAG Awards Locascio
wrote to Nicolosi's attorney and others and informed them that "We have reviewed with ET the
nominees and potential winners at SAG this year and we all aaree that it will look like the
Globes all over again We have decided to skip the SAG Awards and go directly to the
Grammy' s" See Exhibit 18
78 On February 6 2007 less than four days before the Grammy Awards Locascio
told Nicolosi that SFAC would not be appearing at the Grammy's because "we have discussed
this at length internally with ET and with Cunard The consensus is that Movies and television
are more glamorous and appeal to a 'better healed' clientele for the auction and the cruise line
Therefore this year we are going to not attend the Grammy Awards and just concentrate on A
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List movietelevision talent We will be getting a list of portraits for the Ind Spirit Awards this
week from ET I will pass them on to you just as soon as we get them" (See Exhibit 19) The
list of portraits for the Independent Spirit Awards never arrived and again Nicolosi was informed
at the last minute that he would not be creating any portraits nor attending the award show
The SFAC Art Exhibit in Chicago
79 On or about March 10th of 2007 The Hilligoss Galleries on Michigan Avenue in
Chicago hosted an exhibition of Nicolosi's artwork on behalf of SFAC The final draft of the
invitations for the SFAC Chicago Exhibit of original Nicolosi Celebrity portraits in Chicago was
completed by Dadigan's publicists The Michael Russell Group with the full knowled ge and
consent of Braunstein Dadigan and SFAC In fact Braunstein was ced on the entails from the
publicists where they directed and approved of the details for the event The Michael Russell
Group themselves wrote and approved all of the text which was ultimately printed on the
invitations for the SFAC Chicago Exhibit See Exhibit 33 Because of Nicolosi's tremendous
cache in his own hometown of Chicago the publicists were well aware of the fact that a
grandiose exhibit in the city where the artist lives and where he created the entire SFAC
collection would gamer enormous media attention for the upcoming SFAC online auction
Thousands of invitations were mailed to Illinois residents and hundreds of lllinois residents
attended the SFAC Chicago exhibit At the SFAC Chicago exhibit attendees were asked to sign
a guest book and provide their contact information so that they could be sent announcements
When the SFAC online auction would be taking place Virtually all of the attendees signed the
guest book in Chicago were residents of Illinois
80 On January 29 2007 Dadigan through her publicist Locsacio of The Michael
Russell Group sent Nicolosi a draft press release that stated See Exhibit 20 "In April the
Case 109cv03011 Document 1 Filed 05192009 Page 33 of 75
exhibition will be presented at venues in Chicago and New York before boarding Cunard's
Queen Mary 2 New York to South Hampton England on April 18 Cunard and Live
Auctioneers are coordinating the exhibition that will also be showcased at venues in Berlin
Rome and Paris before its exhibition and ensuing worldwide auction culminating on May 20th in
London!'
81 The statements in this press release were patently false and known to be false in
that there was not an exhibition in New York Berlin Rome and Paris and no worldwide auction
on May 20 in London in 2007
82 On or about March 20 2007 Nicolosi's agent sent an email to Russell with a
draft of the invitation to the SFAC Art Exhibit in Chicago which was set for March 30 2007
See Exhibit 21
83 On or about March 20 2007 Russell wrote an email to Nicolosi's agent with
Russell's final draft of the invitation See Exhibit 22
84 On or about March 20 2007 Russell wrote an email to Karl Walter of Getty
Images asking Walter to send images of numerous SFAC portraits to be used at the charity's
exhibition in Chicago See Exhibit 23
85 On March 20 2007 Brian O'Connor of Cunard Cruise Lines wrote an email
addressing the contents of the invitation See Exhibit 43
86 Hilligoss provided the press release approved by Russell to the Chicago news
media and ABC 7 Chicago aired a segment regarding SFAC the gallery exhibit and the
upcoming SFAC online auction The SFAC Chicago Art Exhibit story aired on ABC 7 Chicago
on March 29 2007 and more information about the SFAC online auction was placed on the ABC
7 Chicago website which is still available on ABC 7 Chicago's website
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87 Hillgoss mailed out several hundred invitations and digitally disseminated
thousands of announcements of the SFAC Chicago Art Exhibit to its clients and also sent copies
to Braunstein Russell and Locascio See Exhibit 44 Nicolosi agreed to waive his personal
appearance fee for the SFAC Art Exhibit in Chicago so that Dadigan and SFAC would not have
to incur that expense
88 On April 30 2007 the SFAC Chicago Art Exhibit was held at Hillgoss Galleries
and several of the original portraits created by Nicolosi which were a part of the SFAC Celebrity
Art auction were on display including the autographed portraits of Mariska Hargitay Ashton
Kutcher Rita Moreno Marlon Brando Barbara Eden Larry Hagman Senator Hillary Clinton
Demi Moore Patricia Neal Eli Wallach and Clint Eastwood
89 On July 14 2008 Braunstein wrote a letter to Nicolosi in response to an
investigation being conducted by the Illinois Attorney General as to why Braunstein had not
registered SFAC with the State of Illinois prior to inviting the public to their SFAC Chicago
Exhibit In Braunstein's letter to Nicolosi he made reference to the SFAC Chicago Art
Exhibition and acted as though he had no knowledge of it ever having occurred Braunstein
stated that "such fundraising activities were unknown to SFAC and were never authorized or
sanctioned by SFAC" See Exhibit 24 In that same letter despite the fact Braunstein was
advised by the Illinois Attorney General that raising money in Chicago would be illegal without
having first registered their California 50103 with the State of Illinois Braunstein demanded
any and all monies which were received as a result of the SFAC Chicago Art Exhibit See
Exhibit 24
90 Obviously the statements made by Braunstein in the letter of July 14 2008 were
false and known to be false when made by Braunstein because SFAC Was fully aware of all
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aspects of the Chicago Exhibition because SFAC issued a press release in January of 2007
promoting the exhibition SFAC was involved in all aspects of the planning of the event as can
be understood by reviewing paragraphs 79 to 89 above and Braunstein himself received an
invitation to the event See Exhibit 44
The Cannes Film Festival
91 The Cannes Film Festival was scheduled to commence the week of May 13 2007
92 In early Spring of 2007 in an effort to induce Nicolosi to attend the Cannes Film
Festival Locascio Russell Braunstein The Michael Russell Group and Dadigan through her
publicists told Nicolosi that
a Nicolosi's artwork would be displayed at the Century Club in Cannes with
celebrities signing the portraits and Entertainment Tonight filming the celebrities
signing the portraits
b NiColosi would be going on a European tour to exhibit his artwork which would
start in Cannes and then proceed to Berlin Rome Paris and London
c Nicolosi would be staying in a luxurious Villa on Promenade de is Croisctte near
the Carlton Hotel
d all the expenses associated with the cruise to Europe on the Queen Mary 2 and the
time spent in Europe would be paid for and
e that a reception would occur in New York the night before the cruise
93 Nicolosi relied on the statements made in paragraph 92 in making his decision to
attend the Cannes Film Festival as well as to create additional portraits and to promote SFAC
Prior to leaving for Cannes Nicolosi created original artwork for Cannes which included
portraits of Matt Damon Angelina Jolie George Clooney and the SFAC logo These additional
portraits were created by Nicolosi to be a part of his European Art tour not as a part of the SFAC
collection
94 Prior to leaving for Cannes Nicolosi reached an agreement with South Florida
Global Fine Arts which stated that Nicolosi would create two portraits of the Queen Mary 2 and
a commissioned portrait all three of which were to be auctioned onboard Cunard's QM2 during
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her Trans Atlantic crossing See Exhibit 37 Nicolosi and Global Fine Arts also agreed that
the two portraits of the Queen Mary 2 would be auctioned off during the first part of the cruise
along with the commissioned portrait Nicolosi and Global Fine Arts also agreed that Global
Fine Arts would sell 25 lithographs Nicolosi and Global Fine Arts also agreed that the proceeds
from the auction of these portraits and the sale of the lithographs would be split between the
Global Fine Arts and Nicolosi with Nicolosi receiving approximately 30% of the gross sale
proceeds Cunard's head of PR Brian O'Connor was the agent who facilitated the introduction
and subsequent drafting of the agreement between Global Fine Arts and Nicolosi's agent Based
upon the agreement with Global Fine Arts Nicolosi created two original signed portraits of the
Queen Mary 2 one 36" x 60"and the other 24" x 36" Nicolosi received 1414 from the sale of
the lithographs which sold for 19500 a piece and 2100 from the 9000 sale of the
commissioned portrait
95 The 24" x 36" portrait of the Queen May 2 was sold at the SFAC Auction in
September 2007 The 36" x 60" portrait of the Queen May 2 has disappeared and as far as
Nicolosi !mows the last person in possession of the portrait was SFAC On October 22 2007
Nicolosi made a written demand to Global Fine Arts located in Dania Florida for return of his
property namely the 36 x 60 portrait of the Q1V12 Lisa Marinello of Global Fine Arts promptly
replied that same afternoon that she would send the portrait back to Nicolosi but it never arrived
See Exhibit 46 Nicolosi was told by Braunstein in an email dated September 26 2007 that
the charity cannot address the 36" x 69" QM2 piece as that is a discussion to have with Cunard
directly" See Exhibit 25 para 6 On October 22 2007 Jennifer Kaplan of Global Fine Arts
wrote an email to Brian O'Connor informing him that she was going to return the 36" x 60"
portrait of the Queen Mary 2 to Nicolosi See Exhibit 26 On October 22 2007 Brian
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O'Connor wrote an email to Jennifer Kaplan which stated that the 36"x 60" portrait of the Queen
Mary which had a market value of approximately 50000 "was gifted to Cunard by 'Stars For A
Cause"' and the portrait was not "the property of Nicolosi" See Exhibit 26 Nicolosi never
agreed to give the 36"x 60" portrait to SFAC and did not agree to and was unaware that SFAC
"gifted" it to Cunard Despite the fact that Brian O'Connor claimed that SFAC "gifted" the
extremely valuable painting to Cunard there is no record that SFAC made such gift on the 2006
or 2007 tax returns filed by SFAC See Exhibits 27 and 28 respectively The claims and
representations that O'Connor made in his email to Global Fine Arts are completely false and
baseless because it is improper for a nonforprofit charity to "gift" anything to a for profit
corporation
96 Prior to leaving for Cannes Locascio created a press release that was also
published by Brian O'Connor of Cunard Brian O'Connor was employed by Cunard in some
public relations position in approximately June of 2006 after being previously employed by the
Beverly Hilton While working at the Beverly Hilton Brian O'Connor worked closely with
Locascio because Locascio has been the publicist for Golden Globes for many years and the
Golden Globes is held at the Beverly Hilton In fact Locascio has boasted that he was
responsible for O'Connor obtaining his job at Cunard The press release published by Locascio
which is still available on Cunard's website was published in trade publications and was
disseminated by Brian O'Connor throughout Europe and Australia stated that Nicolosi was set to
"begin a European tour with exhibits planned at the 60th Cannes Film Festival and then to
London where they will be sold during a worldwide live and online auction in early June
Auction proceeds to benefit amFAR Prince's Trust UK and the Hollywood Museum" See
Exhibit 29 This press release contained false statements that were known to be false when
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made in that there was no European tour no exhibit in Cannes no exhibit in London no online
auction in June and amfAR which is based in New York City was never involved with SFAC
97 Nicolosi arrived in New York on April 29 2007 and was told that there would
not be a reception prior to the cruise the following morning Nicolosi paid for his hotel in New
York and the flight from Chicago to New York
98 Nicolosi boarded the Queen Mary 2 on April 30 2007 and the ship arrived in
South HamptOn England on May 6 2007 After boarding the ship and heading out to sea en
route to crossing the Atlantic Ocean Nicolosi was told that Dadigan Locascio Russell and the
others traveling with them would be disembarking in England but that he should stay on the ship
with the artwork until the ship arrived Marseilles France
99 During the cruise to Cannes Locascio told Nicolosi that he would be on the cover
of The Hollywood Reporter and that there was going to be a full page ad in the magazine which
cost 80000 Nicolosi was not on the cover of The Hollywood Reporter but the May 19 2007
edition of The Hollywood Reporter contained two full page ads one for SFAC and one for the
Hollywood Museum See Exhibit 42 The ad stated that amfAR was a beneficiary of SFAC
and that there was going to be a world premiere exhibit in Cannes at the Century Club with 60
celebrity portraits on display The ad contained falsehoods in that amfAR was not a beneficiary
of SFAC and there was not an exhibit of 60 celebrity portraits in Cannes In fact there was
never any SFAC world premiere exhibit of any kind at the Century Club or anywhere else in
Cannes during the 2007 Cannes Film Festival The 2007 SFAC form 990 tax return which was
personally signed by Braunstein under penalties of perjury and the 2007 IRS form 990 tax return
for The Hollywood Museum do not state that it paid for such ads or otherwise mention the ads in
any manner
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100 Nicolosi was told by O'Connor Locascio and Braunstein that the cost for a cabin
on Cunard's Queen Mary 2 for a TransAtlantic cruise is approximately 25000 Upon
information and belief SFAC paid for the cruises and expenses incurred on the cruise or
convinced Cunard to donate monies to SFAC for the cruise After Nicolosi arrived in New York
he became aware of the fact that numerous other people would be traveling with him and the
SFAC collection of artwork onboard the Queen Mary 2 The other persons included George
Braunstein Laura Braunstein George Braunstein's mother in law Donelle Madigan Michael
Russell Steve Locascio Steve Locascio's daughter Chandler Locascio Chandler Locascio's
babysitter Becky Joel Vig an assistant to help with the artwork and Braunstein's personal
photographer Laurent Malachi Braunstein made false representations to Nicolosi and others that
Malachi was a camera man from Entertainment Tonight who would be filming Nicolosi during
his European Tour and that the footage would be aired on Entertainment Tonight
101 In total there were 7 cabins occupied on Cunard's QM2 which upon information
and belief cost SFAC approximately 175000 While in Cannes Braunstein rented a sprawling
apartment in which he stayed with his wife and adult children as well as Russell and Locascio
The cost of such lavish accommodations during the entire Cannes Film Festival would be
approximately 35000 to 50000 per week and which upon information and belief was paid for
by monies donated by Cunard to SFAC
102 When Nicolosi disembarked the Queen Mary 2 ship in Marseilles France there
were no arrangements made by any of the defendants to transport Nicolosi or the artwork to
Cannes Nicolosi was stranded in the dangerons city of Marseilles on the dock for several hours
iAith the artwork before he could locate a vehicle to drive several hours to Cannes Thankfully
Braunstein's personal camera man Laurent Malachi had a cousin who happened to live near
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Marseilles who made arrangements to get the artwork and Nicolosi off the ship and to Cannes
Nicolosi contributed several hundred dollars to secure transportation to Cannes
103 Nicolosi arrived in Cannes on or about May 10 2007 After Nicolosi arrived in
Cannes he learned that no one had made arrangements for a place for Nicolosi to stay Nicolosi
had to locate and pay for his accommodations and a room for the artwork for 7 days During the
remaining days of the Cannes Film Festival Nicolosi resided in cramped studio apartment which
was being used as storage for the 60 original autographed Nicolosi portraits which SFAC sent to
Cannes aboard Cunard's QM2 This make shift storage facility was a far cry from the luxurious
Villa on Promenade de la Croisette near the Carlton Hotel, which SFAC used to induce Nicolosi
to attend the grand SFAC gala in Cannes which never occurred
104 When it became abundantly clear that there would be no SFAC Art exhibit at The
Cannes Film Festival Nicolosi left Cannes a few days early on or about May 22 2007 At the
time of Nicolosi's departure Locascio and Russell had long since gone back to America and all
of the members of the Braunstein family were en route to a friend's wedding in Cairo Egypt
Nicolosi paid approximately 5000 for expenses on the trip after disembarking the QM2 and left
stranded • on the dock in Marseilles These expenses included the cost of food lodging
transportation of the artwork car rental transportation of Nicolosi cellular communication
between him and the art director for safe passage of the artwork internet accessibility etc
105 After arriving in Cannes Nicolosi was told he was going to attend a grand gala
and SFAC Art Exhibit in Cannes much like their exhibit in Chicazo On numerous occasions
SFAC assured Nicolosi that they had made all of the arrangements in registering him for
credentials to attend the Cannes Film Festival There was no exhibit at Cannes and Defendants
did not obtain entry or admission for Nicolosi to the Cannes Film Festival Out of the entire 12
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day period which Nicolosi was stranded in Cannes he was unable to gain access the Film
Festival and literally spent less than a few hours in total with the Defendants
106 Noticeably and suspiciously absent from the Cannes Film Festival was Brian
O'Connor More troubling is the fact that despite the effort of Brian O'Connor to publish a press
release prior to embarking on QM 2's transatlantic crossing stating that an exhibit would occur at
Cannes prior to sailing to Europe and despite the fact that Brain O'Connor personally informed
numerous passengers aboard the Queen Mary 2 that there was going to be an exhibit and lavish
celebrity Gala in Cannes that on May II 2007 O'Connor wrote an email to a frequent VIP
Cunard passenger who wanted to attend the Cannes event In O'Connor's email to that VIP
Cunard passenger he purposely avoided responding to the passengers request to attend the
Cannes event O'Connor disingenuously informed the passenger that "plans for [the
SFAC] display at the Century Cannes venue are still be [sic] sorted out so I do not have much
to share on that front" See Exhibit 30 This email was only a few days before Cunard's
SFAC Art Exhibit at the Cannes Film Festival which never occurred
107 On or about May 19 2007 approximately 6 to 8 of the 60 SFAC portraits were
hung up above the cocktail bar for less than a few hours at The Century Club in Cannes The
portraits were subsequently taken down as directed by a member management at The Century
Club and left on a wet floor in an unsecured area in an unlocked back room and that brief time
of a few portraits hanging above the bar was the extent of Cunard's grand SFAC gala at The
Cannes Film Festival The other approximately 52 portraits never left the boxes they were
shipped in and were never on display the entire trip
108 Each and everyday during the cruise Nicolosi would give lectures in the Theatre
at Sea appeared in the mornings on the closed circuit television programming onboard the ship
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hosted a televised unveiling of the Cannes Film FestivalSFAC Collection for Entertainment
Tonight which never aired participated in forums with the art specialist working onboard the
ship presented art technique demonstrations for the passengers made appearances autographing
lithographs for patrons who had purchased his artwork and otherwise promoted SFAC. There
was absolutely no reason related to SFAC whatsoever for Dadigan or any member of her
entourage to have been present on the cruise and or in Cannes since there was not even a single
public event in either venue which promoted SFAC George Braunstein Laura Braunstein
George Braunstein's mother in law Maria Donelle Dadigan Michael Russell Steve Locascio
Steve Locascio's daughter Chandler Locascio and Chandler Locascio's babysitter Becky did
absolutely nothing on the cruise to benefit or promote Cunard or SFAC Dadigan and her brood
all partook in private chefprepared dining a lavish birthday party for Laura
BraunsteinAlcaldeBraun In fact in New York just before embarkation Dadigan realized that
the cabin which Cunard had assigned to her was not in the top level Ultra Deluxe Queen's
Grille section of the QM2 She threw such a fit that Cunard had no alternative but to give her
what she wanted George and Laura Braunstein were also upgraded to the highest level of luxury
and coincidentally Braunstein's motherin law was also seated in the Queen's Grille
Portrait of Joanna Lumnev
109 In approximately June of 2007 Locascio asked Nicolosi to create an additional
portrait for a Gala to be given by Prince Charles for the Prince's Trust on June 19 2007 in
London Locascio told Nicolosi that he would fly Nicolosi to London and then book passage for
him on the Queen Mary 2 to return to the United States Based upon the representations of
Locascio Nicolosi created a portrait of Joanna Lumney As the date of the Gala approached
Nicolosi's attorney in Chicago wrote numerous emails to Braunstein asking for specific details
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about the Gala and travel arrangements but Braunstein once again ignored the numerous emails
110 On June 4 2007 Locascio wrote an email to Annie L ycett a representative of the
Prince's trust and told her that Nicolosi would be present at the Gala See Exhibit 31
111 On June 14 2007 Nicolosi's attorney spoke to Locascio who restated that
Nicolosi would be attending the Gala in London but later that day Braunstein informed
Nicolosi's attorney that Nicolosi should just send the portrait via courier and that Nicolosi would
not be attending the Gala Nicolosi's attorney informed Braunstein that it would not be possible
for the portrait to be shipped to London in time for the Gala Ultimately Nicolosi and the
portrait did not attend the Gala
112 The portrait of Joanna Lumley ultimately sold for a realized price of 14400
during the online auction in September of 2007 Nicolosi never was reimbursed for creating the
portrait and the cost to create the portrait despite the fact that this portrait was not part of any
prior agreement
113 On June 15 2007 unbeknownst to Nicolosi a meeting of the Board of Directors
of SFAC occurred Present at this meeting were Maria Alcade Michael Russell George
Braunstein and Laura Braunstein At this meeting the Board of Directors amended the Bylaws
of RAC to allow SFAC to pay themselves monies The amendment states as follows Sec
Exhibits 28 last page
Sponsorship fees or other revenue received can be used to pay for advertising and
publicity efforts costs and reimbursements of NIRGCinepoint and for costs
regarding SFAC's office rent utilities parking storage miscellaneous expenses
attorney services and reimbursements of George Braunstein
114 On July 16 2007 NicoloSi received an email from Locascio informing him that
Julien's auction house would be conducting the online auction and that there would be an
opening night Gala at the Hollywood Museum scheduled for August 13 2007 in which all of
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Nicolosi's artwork created for SFAC would be on exhibit at the museum See Exhibit 32)
The email also stated that atnEkR was going to sponsor Gala "We are hopin g to have an
opening night Gala at the Hollywood Museum that night sponsored by amfAR The actual
closing night of the auction will be a combination Live and Internet auction on Ebay on
September 27th The auction will be on the Ebay Home Page beginning September 27th " See
Exhibit 32
115 A few days before the scheduled star studded Gala Nicolosi was told by Locascio
that the Gala was cancelled and they were just going to have the auction without a Gala
Nicolosi was told by Locascio that the Gala was cancelled due to the fact Dadigan had failed to
pay them
The 2007 Emmv Awards
116 The 2007 Emmy Awards show was scheduled for September 17 2007
On August 22 2007 Locascio asked Nicolosi in Chicago if he would be interested in creating
original portraits for the celebrity nominees for the 2007 Emmy Award show
117 In approximately August of 2007 Locascio and Nicolosi agreed that Nicolosi
would create portraits for the 2007 Emmy Awards show and that the portraits would be
auctioned off with the other portraits Nicolosi created and that the proceeds from the online
auction of the 2007 Emmy portraits would be split equally Based upon the agreement that the
proceeds would be split 5050 Nicolosi created 18 additional portraits
118 After entering the agreement with Locascio and creating the 18 additional
portraits Braunstein contacted Nicolosi and told him that the SFAC Board would not give him
50% of the online auction proceeds Braunstein told Nicolosi that the proceeds would have to be
split 75% to SFAC and 25% to Nicolosi
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119 On August 19, 2007 Dadigan wrote an email to Locascio Russell Braunstein
Laura Braunstein Brian O'Connor Nicolosi and others thanking them for all the help with
SFAC and thanking Cunard for its "generosity" See Exhibit 45 This email evidences that
despite the fact Dadigan was not officially a member of SFAC that she really was the one
making all the decisions and in control of all aspects of SFAC
120 Nicolosi attended the 2007 Emmy Awards show and the artwork was prominently
displayed and Nicolosi promoted SFAC
121 After the 2007 Emmy Award show Dadigan invited Nicolosi out for dinner to
thank him for all his work At dinner Dadigan asked Nicolosi to create three additional
portraits one of her one of the Hollywood Museum and one of Johnny Grant the honorary
Mayor of Hollywood and President of the Walk of Fame who allegedly is a close friend of
Dadigan's mother Eleanor Dadigan Dadigan then handed Nicolosi a disc with pictures of her
and Grant See Exhibit 39 Dadigan pointed out that in the photo of Johnny Grant he was
wearing his favorite Gucci tie given to him by Dadigan's mother Nicolosi told Dadigan that he
would not be creating any additional portraits before the SFAC online auction scheduled for
September 27 2007 Dadigan then told Nicolosi that she was on the Board of Directors of the
Hollywood Walk of Fame and could ensure that Nicolosi would be permitted to create portraits
of all the future inductees into the Hollywood Walk of Fame if he did the portraits Nicolosi
never did create the portraits
The SFAC Online Auction
122 An online auction was scheduled to occur on September 27 2007 Nicolosi was
told that a starstudded Gala was to occur at the Hollywood Museum and that AList celebrities
whOse portraits were created by Nicolosi would be in attendance A catalogue identifying the
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paintings that were part of the online auction was created See Exhibit 38 In approximately
August of 2007 Locascio emailed Nicolosi a final proof of the catalogue and asked him to
review and approve the contents Nicolosi carefully reviewed the entire gdf version of the
catalogue and reviewed and approved the contents See Exhibit 41 In the version of the
catalogue reviewed and approved by Nicolosi, the catalogue stated that amfAR was a beneficiary
of SFAC See Exhibit 41 Unbeknownst to NieoIasi after he reviewed and approved the
catalogue page 4 of catalogue that was sent out was altered by deleting the reference to arnfAR
Nicolosi did not discover this until 2009
123 Based on the fact that AList celebrities were attending the Gala Nicolosi decided
to attend the Gala at The Hollywood Museum instead of working to facilitate organizing a Gala
in Chicago in which Nicolosi could have obtained substantial local media coverage and 100s if
not 1000s of attendees On September 27 2007 it was an unseasonably hot evening and when
Nicolosi arrived at the Gala at The Hollywood Museum there were no AList Stars present and
probably less than 100 people were present in the dark nonair conditioned room A substantial
number of the attendees were employed by the auction service who were conducting the online
auction It is obvious that the gala accompanying the online auction was held at Hollywood
Museum and not the auction house or in Chicago because it benefited Dadigan and the
Hollywood Museum Although Nicolosi enjoyed the company and conversation with 1940's
MOM child star Margaret O'Brien and Rose Marie who played Sally Rogers on CBS's early
60's classic sitcom The Dick Van Dyke Show there was no wall of media nor was there a star
studded Alist Celebrity gala to promote the online auction as represented by Dadigan her
publicists and Braunstein
124 For a reason still unknown to Nicolosi On September 25 2007 just two days
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before the SFAC online auction Dadigan's publicist Locascio called Nicolosi's attorney in
Chicago and told her not to have Nicolosi fly out to Los Angeles and that Nicolosi would not be
welcomed to attend the online auction Gala at The Hollywood Museum Locascio also warned
that Nicolosi's guests who were also flying into Los Angeles from all over the world to attend
the Gala would not be allowed to attend either Further Locascio threatened that if Nicolosi
were to show up at the online auction Gala at The Hollywood Museum Locascio would call the
police and Locascio would destroy Nicolosi's reputation and the reputation of his attorney in
Chicago
125 On September 25 2007 Nicolosi received a call from Dadigan herself and she left
a voicemail Nicolosi returned the call and Dadigan asked when Nicolosi would drop offthe
artwork Nicolosi told her what Locascio had said earlier that day and she said she makes the
decision of who comes and goes not Locascio
126 On or about September 26 2007 the internal battles with SFAC had escalated
and Nicolosi was informed by his Chicago counsel that Braunstein had called and said that there
was a screaming match happening behind the scenes between the various factions of SFAC
Braunstein then told Nicolosi's attorney that he would go in front of the national news cameras
and begin his negative but truthful publicity against Nicolosi immediately unless a deal can be
reached today Braunstein continued with his roguish tirade of intimidation tactics by making
false statements that there are many camera crews that have already confirmed attendance to the
auction In one of his emails to Nicolosi's attorney in Chicago Braunstein made representations
that there was an enormous amount of media which had already confirmed to be present to cover
the starstudded Alist celebrity Gala at The Hollywood Museum on September 27'2007 As per
Braunstein's written correspondence he then listed some of the media who had already
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confirmed to be at the Gala by name including Entertainment Tonight The Insider The
Auction Network Art and Living as well as all the local Los Angeles Television stations and
print media journalists From all around the world including the LA Times Hollywood Reporter
AP Reuters etc Based on Braunstein's profound misrepresentation of the truth Nicolosi
ultimately attended the gala and when he arrived there were none of the aforementioned media
present at The Hollywood Museum and certainly no Alist celebrities either
127 On or about September 27 2007 at approximately 900am Nicolosi met with
Dadigan Darren Julien Martin Nolan and Braunstein at Mel's Diner and a document entitled
Sponsorship Agreement Amendment was executed See Exhibit 34
128 On September 27 2007 an online auction was held and the portraits created by
Nicolosi were sold for a total of 175200
After the Online Auction
129 After the auction Nicolosi sought information pertaining to SFAC and the monies
owed to him On November 8 2007 at 321 pm CST Nicolosi received an "auction report'
which stated See Exhibit 35
Hi Nicolosi
George asked me to forward you this for your review
STARS FOR A CAUSE
CHARITY AUCTION REPORT
Amount paid from Auction Proceeds 11900000
Nicolosi Gross Sales 2900300
Less 25% of Tech support of 214480 55193
Net due to Nicolosi 2845107
Sub Total 9045393
Less fee returned to Salon City 1000000
Sub Total 8045393
Check to The Friends of The Prince's Trust 4000000
Check to The Hollywood Museum 4000000
Balance 45300
Best
Laura Alcalde
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Law Offices of George G Braunstein
11755 Wilshire Blvd Suite 2150
Los Angeles CA 90025
130 On November 28 2007 Braunstein wrote to Nicolosi in Chicago and stated that
"The charity has revised the numbers and prepared a final accounting which is different from the
draft and which will be sent to you with your check Please destroy the draft accounting and do
not circulate it Furthermore you are not authorized to disclose any fmancial information about
Stars for a Cause" See Exhibit 36
131 Nicolosi never got the final accounting nor the promised check for the actual
amount owed under the agreements
132 Nicolosi paid approximately 55000 in attorney fees during all relevant times
133 On November 12 2007 Braunstein left a voice mail on Nicolosi's phone in
Chicago In the voicemail Braunstein admitted that he lied to Cunard about the agreement
SFAC had with Nicolosi and misled Nicolosi by failing to disclose that he was the actual charity
not just its attorney when he stated
1li it's George I got your email you know something else has actually come up that's
substantially troubling to me here in Lbs An geles and that is I spoke to Brian O'Connor Cunard
to tell him what was going on and He blew a gasket when 1 told him we were giving potentially
a third of the auction proceeds to you and he said that he said that he had represented to Cunard
that this was you know an option for charity and that they felt that they were not told that a third
of these proceeds would be going to you personally and not for charity and uh it's gonna he said
it going to he a big problem with Cunard and with everybody involved on the inside because he
says you had evidently made some representations that you were contributing your work um I
certainly made those representations as you know I mean I didn't take anything personally I put
in a hundred thousand dollars of legal work over a year's time over this stupid thing and they're
just totally freaked out they just said you can't do it it's not right we didn't get into this to
promote this so that Nicolosi could walk away with thirty thousand dollars I mean they're
hopping mad so give me a call and we can talk about it Bye
134 On November 13 2007 Braunstein left another voicemail for Nicolosi on his
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Case 109cv03011 Document 1 Filed 05192009 Page 50 of 75
phone in Chicago In this voicemail Braunstein admits that he conned Cunard into donating
money to SFAC for "trips" and "parties" that did not occur when he stated
lli it's George listen I got a big problem with Cunard line they are telling me in no uncertain
terms that they did not do all this promotion to benefit you and I got a serious problem on my
hands here so please give me a call and let me see what we can to sort this out you know I had
to do what I had to do to get the auction to go ahead I just had no anticipation that this was going
to be that these people were gonna get upset they said that they spent too much money on trips
to Europe and promotions and supporting us in Cannes and all the parties they gave and
underwrote and things like this to provide it to be to your benefit and as it turns out you're
getting about a third of the proceeds so give me a call so we can discuss it
135 On November 16 2007 Braunstein left another voicemail on Nicolosi's phone in
Chicago In this voicemail Braunstein admits that Cunard "dropped all this money" in Cannes
paid for the trip on the Queen Mary 2 and unbelievably paid for Braunstein's apartment in
Cannes which upon information and belief cost between 35000 to 50000 when he stated
Hi it's George look I got your e mail and you're an extremely intelligent highly educated
licensed doctor you're a bright guy you knew what you were doing when you had those paintings
and you knew the barrel 1 was over and you know your lawyer knew it too and I mean absent
going into some sort of Donnybrook with the police and some sort of insanity you know 1
begrudgingly reached an agreement which has now created a disaster for me here Cunard is not
accepting the fact that they did all this promotion in Cannes where they dropped all that money
to support our venture there the boat trip and all the other things that they put in to support a
payment like that to you it's a problem and I always knew it was going to be a problem that's
why I dreaded the whole situation and now it's a problem that's going to get to be a bigger
problem so what I strongly suggest —cause otherwise I'm going to get put into some crummy
situation here and we're going to be like talking about all this in front of some third party or
arbitrator or worse it will get into the press what I suggest we do and it's not a compromise that
you like or that 1 like is what 1 su ggest you do is you know give me ten thousand dollars from
your share which give to the princess trust which I'll give to go toward the princess trust
you'll wind up with around 18 or 19 whatever that number is and then sell that to them and I
won't have this horror story on my hands otherwise I just haVe a tough situation and I'm forced
with having to deal with it in ways that 1 don't want to do So just give me a call so that we can
just talk about it man to man and get this thing resolved It's a very big problem it's not some
simple problem It's not for me I didn't get a penny I worked for a year and did all this work I
didn't get a dime for it I mean I got my apartment paid for in Cannes you know kit give me a
call today we've got to resolve it I don't want to do it in an arbitrary fashion or in some way
that's going to you know create a horror story that you know we're all going to meet in some
other form sorting it out so give me a call so we can get this worked out 3109144999 or cell
3105612671 or home 3104763752
I think if you will put ten back into the pot I can uh that will give you close to twenty that'll give
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you like 18 or 19 thousand and I can give that to the charity and I think that will get them to
back off and keep them from calling foul
136 In approximately the Spring of 2008 Nicolosi called Brian O'Connor and asked
him why Cunard was directing Braunstein not to pay Nicolosi as Braunstein had indicated in his
correspondence with Nicolosi and his counsel Nicolosi asked O'Connor to enlighten him as to
the basis which he andior Cunard were preventing SFAC frompaying Nicolosi Brain O'Connor
told Nicolosi that he had not raised any concerns with Braunstein about Nicolosi receiving
monies and was not prohibiting SFAC from paying Nicolosi and then strangely and suspiciously
asked Nicolosi if he had anything in writing pertaining to the subject matter Brian O'Connor
ended the conversation by telling Nicolosi that he would speak to Braunstein about the matter
and then he would call Nicolosi back Nicolosi never received a call from Brian O'Connor
137 According to the 2007 Income Tax Return of SFAC filed on November 19 2008
the gross revenue received was 225619 See Exhibit 28 page 1 The 2007 IRS form 990 for
SFAC which was personally signed by Braunstein under penalties of perjury tax return states that
SFAC paid fees to Russell's company in the amount of 39492 and the 2006 tax return states
that the entire amount of gross revenue received by SFAC 20000 was paid to Russell's
company See Exhibit 28 statement 9 and Exhibit 33 statement 5 The 2007 tax return also
states that SFAC paid 2882 for a telephone bill when the phone number for SFAC is the same
phone number to Braunstein's law office paid 4050 for occupancy when there was no need for
an office and the office address for SFAC is Braunstein's law office paid 4979 for
entertainment 1090 for auto expense 2598 for photographs 15614 for postage and
shipping and paid 30000 to Dadigan through The Hollywood Museum See Exhibit 28 page
2 and statement 2
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138 Noticeably absent from the 2007 IRS form 990 tax return of SFAC which eras
personally signed by Braunstein under penalties of perjury is the receipt of any monies from
Cunard in May of 2007 or that certain directors and family and friends of directors received
benefits as a result of their involvement with SFAC despite the admissions made by Braunstein
in the voicemails in paragraphs 133135 that Cunard provided free cruises to the individuals in
paragraphs 100 and 101 provided monies for the lavish villa Braunstein stayed at with his family
in Cannes and provided other monies or benefits provided by Cunard
139 In the end the only donation made by SFAC to a legitimate charity was 60000
to the Prince's Trust.
140 Dadigan is the ringleader of a corrupt and multifaceted scheme of shell charities
and alleged non for profit organizations She and the members of her syndicate manipulate their
positions of wealth and influence to take advantage of the trust of unsuspecting artists and the
public at large The chicanery perpetrated by this group of individuals who are associated with
these dubious charities manufactures false "truths" in order to benefit their own selfish and
greedy ambitions To insulate themselves from public scrutiny Dadigan's nefarious cabal uses
home grown publicist to spin and distort the truth and a lawyer friend who refers to himself as
the consigliere On Braunstein's Law Firm website he boasts that "Clients seek his business and
legal advice as well as his career guidance as their consigliere" According to the Merriam
Webster definition of consigliere is "the chief advisor or aide to a Mafia leader often ironically
applied to any highranking aide" In the modem sense of the word consigliere is an advisor to a
powerful underworld boss or leader of a notorious crime family or syndicate
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Count I
Nicolosi's claim for Conspiracy against Dadigan Locascio
Russell The Michael Russell Grotto Braunstein Laura Braunstein The Hollywood
Museum and SFAC
1140 Nicolosi realleges and incorporates paragraphs I through 140 of the introduction
as paragraphs 1 through 140 of Count I
141 The coconspirators are Dadigan Russell Locascio The Michael Russell Group
Braunstein Laura Braunstein The Hollywood IVIuseurn and SFAC
142 The object of the conspiracy was use the positions of wealth and influence along
with the professional skills of the defendants to perpetrate a corrupt multifaceted scheme to use
charities such as SFAC The Hollywood Museum The Marion Seabury Living Trust and The
Jose Iturbi Foundation under the guise of raising monies for charitable causes when in fact the
real goal was to reap personal gains for themselves at the expense of Nicolosi and others and to
defraud the public at large The defendants conspired to dupe Nicolosi to unwittingly become
involved with the defendants mutifacted wide ranging scheme to help the defendants obtain
their unlawful immoral and wrongful goal of personally enriching themselves by obtaining
monies free worldwide travel entry into glamorous celebrity Hollywood events and parties and
other unknown benefits to the detriment of Nicolosi the charitable entities they purported to be
supporting through unlawful and wrongful means and the public at large
143 Dadigan acted in furtherance of the conspiracy by her actions and that of her
publicists Locascio Russell and the Michael Russell Group and her longtime personal friend
and attorney Braunstein by making false statements to Nicolosi and others to induce Nicolosi and
others to provide goods services promotional efforts and other benefits and by her involvement
in the other fraudulent unlawful and wrongful activities described above The wrongful actions
of Dadigan or that Dadigan is responsible for include but are not limited to:
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a The false statement that she had an impeccable reputation in the entertainment
business and fundraising circles as alleged in paragraphs 27 and 28
b That Nicolosi would be attending all of the award shows that Dadigan and
her publicists individually named as listed in paragraphs 32 33 34 and 37
c The false statements in paragraphs 3234 37 38 49 53 6062 67 6874 89 90
92 96 99 101 105 109 114 117 118 122 123 126 133135
d That amfAR The Martin Scorcese Film Foundation and The Grammy Foundation
were involved with SFAC;
e That Nicolosi should create a website to handle the traffic as a result having a link
to libay and ET
f making false representations to Salon City as described in paragraph 49
g0 By falsely informing Nicolosi that he would have an art exhibit in California as
described in paragraph 60
h By making the false statements as described in paragraphs 6770
i By failing to disclose that a case had been filed against Mario Magro and the
allegations contained in the complaint as described in paragraphs 6972
j by making the false statements pertaining to the Cannes Film Festival as
described in paragraphs 91 to 108
k by upon information and belief accepting benefits provided by Cunard including
but not limited to a free cruise on the Queen Mary 2
1 by making the false statements to Nicolosi to cause him to create a portrait of
Joanna Lumney as described in paragraphs 109111
M by making threats to Nicolosi that he could not attend the online auction
n by accepting monies from SFAC for no good and legitimate reason
o by upon information and belief making false statements in the tax returns filed
by The Hollywood Museum the Jose Itrubi Foundation and the Marion Seabury
Living Trust to obtain monies and benefits that should not have been paid and
P other wrongful actions
144 Russell acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by his involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
145 Locascie acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by his involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
146 The Michael Russell Group acted in furtherance of the conspiracy by making
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false statements to Nicolosi and others and by its involvement in the other fraudulent unlawful
and wrongful activities described above in the paragraphs of the complaint including but not
limited to paragraph 143
147 Braunstein acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by his involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
148 Laura Braunstein acted in furtherance of the conspiracy by making false
statements to Nicolosi and others and by her involvement in the other fraudulent unlawful and
wrongful activities described above in the paragraphs of the complaint including but not limited
to paragraph 143
149 The Hollywood Museum acted in furtherance of the conspiracy by making false
statements to Nicolosi and others and by its involvement in the other fraudulent unlawful and
wrongful activities described above in the paragraphs of the complaint including but not limited
to paragraph 143
150 SFAC acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by its involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
151 The actions of the defendants were unlawful improper wrongful or otherwise
actionable and caused harm to Nicolosi and others who provided goods services promotional
efforts and other benefits based on the false and misleading statements and wrongful conduct of
the defendants
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152 Had Nicolosi been aware of the defendants true motive or the nefarious activities
of the defendants Nicolosi would not have associated with the defendants nor would he have
created the artwork or promoted the interests of the defendants and the entities they controlled or
otherwise been associated with the defendants
153 As a result of the conduct of defendants Nicolosi suffered damage The damages
include but are not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
e No link to ET promoting Nicolosi which was worth according to the defendants at
least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi which
is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
500000
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Enemy Awards is 30000030 x 10000 the value
of the portrait of Joanna Ltunney is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
5100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
i The loss of time and other out of pocket expenses which includes but is not
limited to 25000 to create the Biographia approximately 40000 to create a
website approximately 55000 in attorney fees 198000 in costs associated
with the creation of the artwork thousands in costs associated with transporting
the artwork approximately 10000 in costs incurred by Nicolosi traveling and
promoting the defendants and their causes and the loss of time expended by
Nicolosi
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j The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi
k The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi
m The 2200 Nicolosi paid to Locascio for the tickets for the 2006 Emmy Award
show and
n Other damages
154 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egregious behavior in
the future and based on the defendants' history of misusing various charitable causes to
personally enrich themselves to the detriment of Nicolosi and others they were supposedly
helping
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to
be found due by a jury against the defendants jointly and severally and for further relief that is
just and equitable in the circumstances
Count 11
Nicolosi's Claim for Aiding and Abetting against Dadigan Locascio Russell The Michael
Russell Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
155 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 155 of Count II
156 Dadigan Locascio Russell The Michael Russell Group Braunstein Laura
Braunstein The Hollywood Museum and SFAC aided and abetted one another in carrying out a
conspiracy perpetrating a fraud upon Nicolosi and others and in the other wrongful action
described above
157 Dadigan provided substantial assistance by her actions and that of her publicists
Locascio Russell and the Michael Russell Group and her longtime personal friend and attorney
Braunstein by making false statements to Nicolosi and others to induce Nicolosi and others to
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provide goods services promotional efforts and other benefits and by her involvement in the
other fraudulent unlawful and wrongful activities described above The wrongful actions of
Dadigan or that Dadigan is responsible for include but are not limited to
a The false statement that she had an impeccable reputation in the entertainment
business and fundraising circles as alleged in paragraphs 27 and 28
b That Nicolosi would be attending all of the award shows that Dadigan and
her publicists individually named as listed in paragraphs 32 33 34 and 37
c The false statements in paragraphs 3234 37 38 49 53 6062 67 6874 89 90
92 96 99 101 105 109 114 117 118 122 123 126 133135
d That amfAR The Martin Seorcese Film Foundation and The Grammy Foundation
were involved with SFAC;
e That Nicolosi should create a website to handle the traffic as a result having a link
to Ebay and ET
f making false representations to Salon City as described in paragraph 49
g By falsely informing Nicolosi that he would have an art exhibit in California as
described in paragraph 60
h By making the false statements as described in paragraphs 6770
i By failing to disclose that a case had been filed against Mario Magro and the
allegations contained in the complaint as described in paragraphs 6972
j by making the false statements pertaining to the Cannes Film Festival as
described in paragraphs 91 to 108
k by upon information and belief accepting benefits provided by Cunard including
but not limited to a free cruise on the Queen Mary 2
1 by making the false statements to Nicolosi to cause him to create a portrait of
Joanna Lunmey as described in paragraphs 109111
m by making threats to Nicolosi that he could not attend the online auction
n by accepting monies from SFAC for no good and legitimate reason
o by upon information and belief making false statements in the tax returns tiled
by The Hollywood Museum the Jose Ttrubi Foundation and the Marion Seabury
Living Trust to obtain monies and benefits that should not have been paid and
P other wrongful actions
158 Russell provided substantial assistance by making false statements to Nicolosi and
others and by his involvement in the other fraudulent unlawful and wrongful activities described
above in the paragraphs of the complaint including but not limited to paragraph 157
159 Locascio provided substantial conspiracy by making false statements to Nicolosi
and others and by its involvement in the other fraudulent unlawful and wrongful activities
described above in the paragraphs of the complaint including but not limited to paragraph 157
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160 The Michael Russell Group provided substantial assistance assistance by making
false statements to Nicolosi and others and by its involvement in the other fraudulent unlawful
and wrongful activities described above in the paragraphs of the complaint including but not
limited to paragraph 157
161 Braunstein provided substantial assistance by by making false statements to
Nicolosi and others and by its involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 157
162 Laura Braunstein provided substantial assistance by making false statements to
Nicolosi and others and by its involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 157
163 The Hollywood Museum provided substantial assistance by making false
statements to Nicolosi and others and by its involvement in the other fraudulent unlawful and
wrongful activities described above in the paragraphs of the complaint including but not limited
to paragraph 157
164 SFAC provided substantial assistance by making false statements to Nicolosi and
others and by its involvement in the other fraudulent unlawful and wrongful activities described
above in the paragraphs of the complaint including but not limited to paragraph 157
165 The actions of the defendants were unlawful improper wrongful or otherwise
actionable and caused harm to Nicolosi and others who provided goods services promotional
efforts and other benefits based on the false and misleading statements and wrongful conduct of
the defendants
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166 Had Nicolosi been aware of the defendants true motive or the nefarious activities
Nicolosi would not have associated with the defendants nor would he have created the artwork or
promoted the interests of the defendants and the entities they controlled or otherwise been
associated with the defendants
167 Nicolosi suffered damage as a result of the wrongful conduct of the defendants
The damages include but are not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants at
least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi which
is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f El' did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 30000030 x 10000 the value
of the portrait of Joanna Lunmey is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
5100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
i The loss of time and other out of pocket expenses which includes but is not
limited to 25,000 to create the Biographia approximately 40000 to create a
website approximately 55000 in attorney fees 75000 in costs associated with
the creation of the artwork thousands in costs associated with transporting the
artwork approximately 10000 in costs incurred by Nicolosi traveling and
promoting the defendants and their causes and the loss of time expended by
Nicolosi
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j The failure to have anafAR Martin Scorcese Film Foundation and the Grambay
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi and
k. The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi
m The 2200 Nicolosi paid to Loeascio for the tickets for the 2006 Fmmy Award
show and
n Other damages
168 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants froth enga ging such egegious behavior in
the future and based on the defendants' history of misusing various charitable causes to
personally enrich themselves to the detriment of Nicolosi and others they were supposedly
helping •
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against defendants jointly and severally and for further relief that is just and
equitable in the circumstances
Count III
Nicolosi's Claim for Fraud in Inducement against
Dadigan Locascio Russell The Michael Russell Group Braunstein The Hollywood
Museum and SFAC
169 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 169 Count HI
170 The Defendants intentionally andor negligently made numerous false statements
to Nicolosi with the intent that Nicolosi rely on the false statements and to enter various
agreements with the Defendants or to provide goods and services to the defendants or entities
controlled by them or otherwise provide benefits to the defendants and the entities they
controlled or to cause Nicolosi to become associated with them and to promote them and their
interests
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171 The false statements are identified in paragraphs 143 and 157 which are
incorporated by reference as if set forth as paragraph 171
172 The false statements were material to Nieolosi's decision to become involved
with the defendants to expend enormous amounts of time and energy creating artwork and
promoting theinterests of defendants andor entities they controlled and to entering agreements
with the Defendants
173 Nicolosi relied on the false statements made by the defendants when he decided to
become involved with the defendants when he created original portraits promoted SFAC and
the interests of the defendants when he provided other goods and services when he spent
enormous amounts of time and monies and when he provided the goodwill of his name to
defendants
174 Nicolosi would not have agreed to become involved with the defendants would
not have created original portraits would not have promoted the defendants and the interests of
the defendants would not have provided goods and services to the defendants would not have
spent time and monies would not have provided the goodwill of his name to defendants or
otherwise been associated with Defendants had he known the statements were false
175 Nicolosi suffered damage as a result of the wrongful conduct of defendants in that
he was duped into becoming involved with the Defendants wasted his time effort money and
he suffered other damages including but not limited to
The failure to attend the Hollywood Film Festival Screen Actor Guild
Awards The Academy of Motion Pictures Arts and Science luncheon the
Sundance Film Festival and the Grammy Awards Award shows According
to the sworn testimony of Dadigan the value of such publicity and other
benefits is worth millions and therefore Nicolosi suffered millions in
damages as a result of not attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the
defendants at least 65 million See Exhibit 8
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c No link to ET promoting Nicolosi which was worth according to the
defendants at least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC
exceeds 1 million we need to figure out number portraits times fair market
value
h The fair market value of the other artwork provided by Nicolosi and stolen
by defendants is at least 429360 which is calculated as follows duplicate
originals Nicolosi created for the 2006 Emmy Awards is 30000030 x
10000 the value of the portrait of Joanna Lumney is 15000 the value of
the portrait of Patricia Neal is 25000 the value of the painting of 36" x 60"
painting of the Queen Mary 2 is 50000 the value of the 24" x 36" painting
of the Queen Mary 2 is 5100 the value of the lithographs is 30000 and
the portraits of George Clooney sold for 3360 Matt Damon 900 Angelina
Jolie 600 and the SFAC logo 2400
i The loss of time and other out of pocket expenses which includes but is not
limited to 25,000 to create the Biographia approximately 40000 to create
a website approximately 55000 in attorney fees 75000 in costs
associated with the creation of the artwork thousands in costs associated
with transporting the artwork approximately 10000 in costs incurred by
Nicolosi traveling and promoting the defendants and their causes and the loss
of time expended by Nicolosi
j The failure to have amfAR Martin Scorcese Film Foundation and the
Grammy Foundation involved and associated with Nicolosi which is worth
millions in publicity and other benetits to Nicolosi and
k The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi and
The 2200 Nicolosi paid to Locascio for the tickets for the 2006 Enamy
Award show and
m Other damages
176 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egregious behavior in
the future and based on the defendants' history of misusing various charitable causes to
personally enrich themselves to the detriment of Nicolosi and others they were supposedly
helping
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WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count IV
Nicolosi's claim for Breach of Contract against Dadigan Locascio Russell 13raunstein and
SFAC
177 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 177 of Count IV
178 Nicolosi entered an agreement with the Defendants in August of 2006 that is
evidenced by the writings attached as exhibits 8 and 10
179 The terms of the agreement are as stated in paragraphs 3238 and in Exhibits 8
and 10
180 Nicolosi performed all the obligations he owed pursuant to the terms of the
agreement because he created the original artwork, promoted SFAC and otherwise performed
181 SFAC breached the terms of the agreement in numerous ways including but not
limited to
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and 'the Grammys
b arnfAR' the Martin Scorsese Film Foundation and the Grammy Foundation were
not involved in anyway
c Sharpie had not agreed to pay a 375000 sponsorship fee and to purchase
600000 in ads on ET
d Ebay had not agreed to and did not pay a 250000 sponsorship fee it did not
agree to and did not provide an eight month promotion on the Ebay homepage and
did not agree to and did not purchase 1 million in ads on Entertainment Tonight
and
e Entertainment Tonight did not agree to and did not provide a link on its website
182 As a result of the breach of contract Nicolosi suffered damage
183 Nicolosi was damaged in that he did not receive what was promised which
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Case 109cv03011 Document 1 Filed 05192009 Page 65 of 75
includes but is not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundanee Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants
at least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 30000030 x 10000 the
value of the portrait of Joanna Lutnney is 15000 the value of the portrait of
Patricia Neal is 25000 the value of the painting of 36"x 60" painting of the
Queen Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary
2 is 5100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
The loss of time and other out of pocket expenses which includes but is not
limited to 25000 to create the Biographia approximately 40000 to create a
website approximately 55000 in attorney fees 75000 in costs associated with
the creation of the artwork thousands in costs associated with transporting the
artwork approximately 10000 in costs incurred by Nicolosi traveling and
promoting the defendants and their causes and the loss of time expended by
Nicolosi
j The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi and
k The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi and
m Other damages
184 Dadigan should be personally liable for the Obligations owed under the written
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Case 109cv03011 Document 1 Filed 05192009 Page 66 of 75
agreement because Nicolosi always understood and believed that he and Dadigan were working
together and that the agreement to work together included a term that an entity would be formed
to operate their joint venture Any corporate formalities should be ignored based on Dadigan's
conduct the fact that no corporate entity existed at the time Nicolosi agreed to the initial terms
and substantially performed in August of 2006 the lack of adequate capital the lack of
complying with corporate formalities the fact that SFAC was her alter ego and formed for no
legitimate purpose other than to protect her from liability and for various other reasons the
corporate veil should be pierced
185 Braunstein should be personally liable for the obligations owed under the written
agreement because any corporate formalities should be ignored based on his conduct the fact
that no corporate entity existed at the time Nicolosi agreed to the initial terms and substantially
performed in August 2006 the lack of adequate capital the lack of complying with corporate
formalities the fact that SFAC was his alter ego and formed for no legitimate purpose other than
to protect him from liability and for various other reasons the corporate veil should be pierced
In addition Braunstein should be personally responsible for the obligations of SFAC to Nicolosi
because he was the CFO CEO and the attorney for SEAC
186 Russell should be personally liable for the obligations owed under the written
agreement because any corporate formalities should be ignored based on his conduct, the fact
that no corporate entity existed at the time Nicolosi agreed to the initial terms and substantially
performed the lack of adequate capital the lack of complying with corporate formalities the fact
that SFAC was his alter ego and fointed for no legitimate purpose other than to protect him from
liability and for various other reasons the corporate veil should be pierced In addition Russell
should be personallyliable because he was on the Board of Directors
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Case 109cv03011 Document 1 Filed 05192009 Page 67 of 75
187 Locascio should be personally liable for the obligations owed under the written
agreement because any corporate formalities should be ignored based on his conduct the fact
that no corporate entity existed at the time Nicolosi agreed to the initial terms and substantially
performed in August of 2006 the lack of adequate capital the lack of complying with corporate
formalities the fact that SFAC was his alter ego and formed for no legitimate purpose other than
to protect him from liability and for various other reasons the corporate veil should be pierced
188 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egregious behavior in
the future based on the defendants history of misusing various charitable causes to personally
enrich themselves to the detriment of Nicolosi others and the charities they were supposedly
helping based on the fact that the breaches were tortious in nature as described in Counts I II
III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count V
Nicolosi's claim for Breach of Sponsorship Agreement against Dadigan Locascio Russell
Braunstein and SFAC
189 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 189 of Count V
190 On January 12 2007 Nicolosi entered an agreement with Defendants as stated in
paragraph 67 and Exhibit 14
191 Nicolosi perfoimed all the obligations owed under the agreement because he
created the original artwork promoted SFAC and otherwise performed
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192 SFAC breached the terms of the agreement in numerous ways including but not
limited to
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and The Grammys
b amfAR the Martin Scorsese Film Foundation and the Grammy Foundation were
not involved in anyway
c. Sharpie had not agreed to pay a 375000 sponsorship fee and to purchase
600000 in ads on ET
d Ebay had not agreed to pay a 250000 sponsorship fee it did not provide an eight
month promotion on the Ebay homepage and did not purchase 1 million in ads
on Entertainment Tonight and
e Entertainment Tonight did not agree and did not provide a link on its
website
193 As a result of the breach Nicolosi suffered dama ge in that he did not receive what
was promised includiiw but not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants at
least 15 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi which
is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 3000003 x 10000 the value
of the portrait o ['Joanna Lumney is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
5100 the value of the lithographs is 30000 and the portraits of George
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Case 109cv03011 Document 1 Filed 05192009 Page 69 of 75
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC'
logo 2400 and
The loss of time and other out of pocket expenses which includes but is not
limited to approximately 55000 in attorney fees expended 75000 in costs
associated with the creation of the artwOrk thousands in costs associated with
transporting the artwork approximately 10000 in costs incurred by Nicolosi
traveling and promoting the defendants and their causes and the loss of time
expended by Nicolosi which amounts to
j The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi
194 Nicolosi realleges paragraphs 184187 of Count IV as if set forth fully herein as
paragraph 194
195 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egre gious behavior in
the future based on the defendants history of misusing various charitable causes to personally
enrich themselves to the detrlment of Nicolosi others and the charities they were supposedly
helping based on the fact that the breaches were tortious in nature as described in Counts I IT
III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count VI
Nicolosi's claim for Breach of Amendment
To Sponsorship Agreement against Dadigan Locascio Russell Braunstein and SFAC
196 Nicolosi rcalleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 196 of Count VI
197 On September 27 2007 the parties entered a written agreement as stated in
paragraph 127 and Exhibit 34
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198 Nicolosi perfboued all the obligations owed under the agreement because he
created all the portraits requested promoted SFAC attended the auction and otherwise
performed
199 SFAC breached the terms of the agreement in numerous ways including but not
limited to
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and The Grammys
b amfAR the Martin Scorsese Film Foundation and the Grammy Foundation were
not involved in anyway
c. Sharpie had not agreed to pay a 375000 sponsorship fee and to purchase
600000 in ads on ET
d Ebay had not agreed to pay a 250000 sponsorship fee it did not provide an eight
month promotion on the Ebay homepage and did not purchase 1 million in ads
on Entertainment Tonight and
e Entertainment Tonight did not azree and did not provide a link on its website and
Nicolosi was not paid any monies as identified in paragraphs 35 of the
Amendment and
b did not pay any monies to Nicolosi
200 As a result of the breach Nicolosi was damaged
201 As a result of the breach Nicolosi suffered damage in that he did not receive what
was promised including but not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows •
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants at
least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
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Case 109cv03011 Document 1 Filed 05192009 Page 71 of 75
millions inpublicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 30000030 x 10000 the value
of the portrait o ['Joanna Lumney is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
55100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
j The loss of time and other out of pocket expenses which includes but is not
limited to approximately 55000 in attorney fees expended 75000 in costs
associated with the creation of the artwork thousands in costs associated with
transporting the artwork approximately 10000 in costs incurred by Nicolosi
traveling and promoting the defendants and their causes and the loss of time
expended by Nicolosi which amounts to •
k The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi
1 The failure to receive the monies as identified in pargraphs 36 of the agreement
m Attorney fees; and
n Other damages
202 Nicolosi realleges paragraphs 184187 of Count IV as if set forth fully herein as
paragraph 202
203 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregiousto deter defendants from engaging such egregious behavior in
the future based on the defendants history of misusing various charitable causes to personally
enrich themselves to the detriment of Nicolosi others and the charities they were supposedly
helping based on the fact that the breaches were tortious in nature as described in Counts I IT
III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment his favor in an amount to be
found due by the jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
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Count VII
Nicolosi's claim for Unjust Enrichment against Dadigan Locascio Russell The Michael
Russell Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
204 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 204 of Count VII
205 The Defendants were unjustly enriched when they used Nicolosi's artwork effort
promotional activities and time of Nicolosi as well as his reputation to benefit themselves and
entities controlled by them
206 Nicolosi relied to his detriment on the false statements and other wrongful
conduct of the defendants by creating numerous portraits attending various Award shows
promoting the interests of the defendants and entities controlled by them traveling and otherwise
working to benefits the defendants
207 It would be unjust and unfair for the defendants to retain the benefits provided by
Nicolosi to the defendants
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount
found to be found due by a jury against the defendants jointly and severally and for further relief
that is just and equitable in the circumstances
Count VIII
Nicolosi's claim for Quantum rvIernit against Dadigan Locascio Russell The Michael
Russell Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
208 Nicolosi realleges paragraphs 1140 as if set forth fully herein as paragraph
209 Nicolosi provided valuable services and spent monies that inured to the benefit of
the Defendants
210 Nicolosi should be compensated for the reasonable value of the services he
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Case 109cv03011 Document 1 Filed 05192009 Page 73 of 75
provided
211 It would be unjust and unfair for the defendants to keep the benefits of the
artwork and promotional efforts of Nicolosi to secure personal gain for defendants to the
detriment of Nicole si
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount
found to be by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count IX
Nicolosi's claim for conversion against Dadigan Locascio Russell The Michael Russell
Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
212 Nicolosi realleges paragraphs 1140 as if set forth fully herein as paragraph 212
213 Nicolosi is the owner of 30 duplicate originals he created for the 2006 Emmy
Awards a portrait he created of Patricia Neal a portrait he created of Joanna Lumney the 36" x
60" painting of the Queen Mary 2 the 24" x 36" painting of the Queen Mary 2 25 lithographs
and the portraits he created for the Cannes Film Festival of George Clooney Matt Damon
Angelina Jolie and the SFAC logo
214 Nicolosi has the unconditional right to the property
215 Upon information and belief Dadigan andor Locascio andor Russell andor The
Michael Russell Group andor Braunstein andor Laura Braunstein andor The Hollywood
Museum andor SFAC has possession of the above property
216 Nicolosi has demanded return of the property but the defendants refuse to return
the property
217 The value of the duplicate originals Nicolosi Created for the 2006 Emmy Awards
is 30000030 x 10000 the value of the portrait of Joanna Ltunney is 15000 the value of
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Case 109cv03011 Document 1 Filed 05192009 Page 74 of 75
the portrait of Patricia Neal is 25000 the value of the painting of 36" x 60" painting of the
Queen Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is 5100
the value of the lithographs is 30000 and the portraits of George Clooney sold for 3360 Matt
Damon 900 Angelina Jolie 600 and the SFAS' logo 2400
218 Nicolosi has been damaged by the conversion of the above portraits The fair
market value of this property is at least 429 260
219 Punitive damages should also be assessed based on the willful malicious and
egregious conduct of the defendants and to deter the defendants from such behavior hl the future
WIIEREFORF Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count X
Nieolosi's claim for Breach of Joint VenturePartnership Agreement against Dadigan
220 Nicolosi realleges paragraphs 1140 as if set forth fully herein as paragraph 220
221 In approximately August of 2006 Nicolosi and Dadigan formed a joint
venturepartnership in which Nicolosi would agree to create original artwork and do promotional
work and Dadigan and her agents would take care of the legal work publicity and organization
of operating an entity to raise monies for charities •
222 Dadiagn and Nicolosi also agreed that Dadigan may create an entity to operate the
joint venturepartnership
223 Nicolosi relied on the representations of Dadigan and the agreement and
performed all the obligations he owed under the agreement because he created original artwork
promoted the artwork and the interests of Dadigan and the charitable cause and otherwise
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Case 109cv03011 Document 1 Filed 05192009 Page 75 of 75
performed
224 Dadigan breached the agreement because she did not perform all that was owed
under the agreement Nicolosi realleges paragraph 143 from Count If as if set forth fully herein
225 Nicolosi suffered damage in he did not receive what was promised Nicolosi
realleges pargraph 153 from Count I as if set forth fully herein
226 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious and a violation of the fiduciary duty Dadigan owed Nicolosi to
deter defendants from engaging such egregious behavior in the future based on the defendants
history of misusing various charitable causes to personally enrich themselves to the detriment of
Nicolosi others and the charities they were supposedly helping based on the fact that the
breaches were tortious in nature as described in Counts I II III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendant and for further relief that is just and equitable in the
circumstances.
DR JOSEPH NICOLOSI
By sJoseph T Gentleman
One of His Attorneys
Donald L Johnson (ARDC NO 1342460
Joseph T Gentleman ARDC NO 62411501
Julie A Boynton ARDC NO 6224529
Priya S Dadlani ARDC NO 6292644
33 North Dearborn Street
Suite 1401
Chica263go Illinois 60602
312 7000
Case 109cv03011 Document 1 Filed 05192009 Page 1 of 75
IN THE UNII ED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION
FILED MAY 19 2009
09CV3011
JUDGE SHADUR
MAGISTRATE JUDGE VALDEZ
v Judge BR
DONELLE DADIGAN THE HOLLYWOOD
MUSEUM a California not for profit Corporation No
STEVE LOCASCIO MICHAEL RUSSELL
THE MICHAEL RUSSEL GROUP JURY DEMAND
GEORGE BRAUNSTEIN LAURA BRAUNSTEIN
AllJA LAURA AICADE and STARS FOR A
CAUSE a California not for profit Corporation

Defendants
COMPLAINT
NOW COMES Dr Joseph Nicolosi by and through his attorneys and for his complaint
states as follows
Jurisdiction and Venue
i This matter is brought pursuant to 28 USC 1332 because the parties are diverse
and the amount sought is over 75000 exclusive of interest and costs
2 Venue is appropriate in this forum based upon the fact that Nicolosi was solicited
by defendants in this district the Defendants communicated with Nicolosi countless times in this
district Nicolosi performed his obligations that are a material aspect of this case in this district
the defendants organized a Public Art Exhibition to promote SFAC that was conducted in this
district and numerous other acts were performed within this district The only contact that
Nicolosi had with California during his entire year and a half involvement with SFAC was
limited to attending three Award Shows and one Gala Nicolosi has resided in Cook County for
over 25 years Nicolosi is a life long resident of Illinois he hails from a family of several
DR JOSEPH NICOLOSI
Plaintiff



Case 109cv03011 Document 1 Filed 05192009 Page 2 of 75
generations of Illinois residents he is a licensed practicing doctor of dental surgery in Cook
County and has been serving the members of this community as a practicing health professional
in Illinois since graduating from dental school in the 1980's Nicolosi creates portraits of many
of today's top luminaries in entertainment sports political and corporate arenas right here in his
Chicago art studio just off Michigan Avenue and delivers his signature portraits to clients all
over the world In summary Nicolosi spent 1000's of hours of time related to the material
aspects of his involvement with the defendants in this case in Chicago Illinois while spending
approximately 30 hours in California Many of the witnesses are located in this jurisdiction as
well as in NYC Florida and other locations outside of California which are much closer and
more convenient to get to from Chicago than Los Angeles Other than the defendants virtually
all of the witnesses in this case are in the greater Chicagoland area and nonCalifornia residents
Nature of the Case
3 This is the ease of an ardent Chicago Dentist and Illinois native who applied his
exceptional artistic talent and his solid Midwest work ethic over the course of many years of
good oldfashioned hard work to eventually become the globally acclaimed Celebrity Pop Artist
Nicolosi who was duped into participating in what he was led to believe was a legitimate
charitable fundraising campaign only to find himself unknowingly thrust into the middle of a
cesspool of greed driven Hollywood posers who in actuality were perpetrating a deceptive and
multifaceted Ponziesque scheme which manipulates charities and non for profit organizations
and causes for their own personal enrichment Donelle Dadigan who hails from Beverly Hills
and is allegedly a descendent of one of the oldest and wealthiest California families personally
directs her a gents including her publicists and her lifelong close personal friendattorney
George Braunstein on how to perpetrate such a scheme As thiS selfappointed matriarch of her
2
Case 109cv03011 Document 1 Filed 05192009 Page 3 of 75
own 501 c3 corporate family Dadigan has somehow managed to stay below the radar of
governmental regulatory agencies In less than 2 years Dadigan personally enriches herself to
the tune of approximately 150000 while her personal publicists Locascio and Russell and The
Michael Russell Group personally enrich themselves to the tune of approximately 5190000 and
her lifelong close personal friendattorney personally enriches himself and his family to the tune
of approximately 150000 In all Dadigan and her codefendants personally receive and enjoy
close to half a million in monies worldwide first class travel and other benefits as a result of
their association with the purported charities while the charities spend in excess of 15 million
in other nonitemized and questionable expenses and ultimately donate the disproportionately
minute sum of 340000 to legitimate charitable causes In the most recent chapter of this saga
neither Dadigan nor her accomplices ever honor their word or obligations to Dr Nicolosi despite
the thousands of hours that he spent in his Chicago art studio creating celebrity portraits and
otherwise promoting an alleged charity
The Parties
4 Dr Joseph Nicolosi Nicolosi is an adult citizen of Illinois
5 Donelle Dadigan Dadigan is an adult citizen who resides in Beverly Hills
California She is the founder and president of The Hollywood Museum
6 The Hollywood Museum is allegedly a California notforprofit Corporation
Dadigan is the president Dadigan's mother Eleanor Dadigan is the treasurer George Braunstein
is the secretary and George Braunstein's wife Laura Braunstein and Dadigan's aunt Lillian
Tavlan are on the Board of Directors
7 Steve Locascio Locascio is an adult citizen of California He is a publicist who
offers a full range of marketing and production services to clients in California from a spare
3
Case 109cv03011 Document 1 Filed 05192009 Page 4 of 75
bedroom in the house he shares with Michael Russell Upon information and belief he is the
owner or Cinepoint Productions Inc and MU}IS LLC
8 Michael Russell Russell is an adult citizen of California He is a publicist who
offers a fiill range of marketing and production services to clients in California from a spare
bedroom in the house he shares with Locascio
9 The Michael Russell Group is a California limited liability company formed by
Russell which offers a full range of marketing and production services to clients in California
Upon information and belief during all times pertinent to this case The Michael Russell Group
has its only office in spare bedroom in a home Locascio and Russell share The Michael Russell
Group's mailing address is to a mailbox at UPS store that deceptively identifies the mailbox
number as a commercial office suite
10 George Braunstein Braunstein is an adult citizen of California He is an attorney
who upon information and belief is licensed to practice law in California Upon information and
belief he is a lifelong close personal friend of Dadigan and has represented Locascio and Russell
for many years
11 Laura Braunstein is an adult citizen of California She is the wife of George
Braunstein She has used other names and aliases such as Laura Alcade and Laura Braun
12 Stars for a Cause SFAC is a corporation organized and existing under the laws
of the State of California and is allegedly a California notforprofit corporation The articles of
incorporation for this entity were filed on or about August 31 2006 See Exhibit 1
Braunstein is the CEO CFO and the attorney for the SFAC and his wife Laura Braunstein is the
registered agent and secretary The address for SFAC is the same as the law office of George
Braunstein The members of the Board of Directors are Maria Alcade Laura Braunstein's
4
Case 109cv03011 Document 1 Filed 05192009 Page 5 of 75
mother Michael Russell Elida Chavez and Timothy McGonigle
13 Upon information and belief during all relevant times Russell and Locascio spoke
with Dadigan numerous times on a daily basis pertaining to matters related to SFAC and took
instruction directly from Dadigan pertainin g to matters related to SFAC Dadigan was
introduced to The Michael Russell Group through the publisher and associate publisher of The
Hollywood Reporter in approximately 2003
14 Upon information and belief Braunstein spoke to Locascio andor Russell on a
daily basis pertaining to matters related to SFAC
15 Upon information and belief Dadigan pays Locascio andor Russell andor
entities they control a 10000 monthly retainer to act as her publicist
Background Facts
16 Locascio has repeatedly and consistently told Nicolosi and many others on
numerous occasions that Dadigan is a descendent of George A Ralph the founder of Ralph's
Grocery the largest food retailer in Southern California Ralphs Grocery was founded in 1873 in
Los Angeles and is the oldest Supet uarket chain west of the Mississippi Ralphs Grocery was a
family owned business until 1968 when the company was sold for 60 million which is the
equivalent to in excess of 500 million today Upon information and belief Dadigan grew up
with great wealth as a member of one California's oldest and wealthiest families Dadigan
currently resides in a palatial estate in Beverly Hills California Dadigan claims she was a
school teacher for a few years in the late 1970's to early 1980's In approximately 1995
Dadigan purchased the historic Max Factor building in Hollywood California which is right
around the corner from the Hollywood Walk of Fame Dadigan alleges that she personally spent
7 million of her own money to restore the building Dadigan then formed The Hollywood
5
Case 109cv03011 Document 1 Filed 05192009 Page 6 of 75
Museum allegedly a California not for profit corporation to showcase what Dadigan claims to
be authentic movie memorabilia Dadigan routinely makes representations in person as well as
in the national media that The Hollywood Museum is a not For profit corporation However as
President Dadigan herself directs the charity to lease space in the Max Factor building which
she owns herself for an inordinate sum of money Dadigan is responsible for her "charity" to
accrue an astonishing 105000 per month in rent See Exhibit 2 Statement 10 According to
The Hollywood Museum's 2006 IRS Form 990 Tax Return which was signed by Dadigan under
penalties of perjury as of May 20 2008 The Hollywood Museum owes Dadigan the
unimaginable amount of 54 million in accrued rent See Exhibit 2 Statement 10
17 The Hollywood Museum's 2006 IRS Form 990 Tax Return covers affairs from
July 1 2006 through June 30 2007 According to the 2006 IRS Foot] 990 Tax Return which
Dadigan signed herself under penalties of perjury The Hollywood Museum obtained 113141
in direct public support and 109398 in program service revenue including government fees and
contracts of 109398 and allegedly incurred 230586 in expenses which included accordin g to
the tax return upon information and belief paying Dadigan 60107 in rent and 20414 for auto
expense See Exhibit 2 page 2 and statement 2 At least one of Dadigan's multiple vehicles
which she is commonly known to have been driving in Beverly Hills is a late model mint green
Bentley Coupe Dadigan claims that she works full time at The Hollywood Museum and
according to Dadigan's own sworn testimonyher duties and job responsibilities as the President
of The Hollywood Museum include cleaning the bathrooms dusting vacuuming giving tours
working with her staff dealing with tourists and visitors dealing with community visitor
convention bureaus dealing with different studios and production companies that bring exhibits
to the museum and of course lots of paperwork
6
Case 109cv03011 Document 1 Filed 05192009 Page 7 of 75
18 Dadigan has stated that she works closely with numerous charities and non for
profits including SFAC The Jose Iturbi Foundation The Ebell Women's Club The Hollywood
Women's cl ub The UJF The United Jewish Council The Jewish Federation for Women All
Saints Episcopal Church The Hollywood Police Activities League The Hollywood Police
Communities Board The Hollywood High School Hollywood Chamber of Commerce
Hollywood Historic Trust Hollywood Business Improvements and the Hollywood Property
Owners Organization among others
19 Dadigan is the selfproclaimed beloved goddaughter of both Marion Frances
Seabury and her long time companion Jose Iturbi who was the world renowned conductor
pianist and actor who shattered world records for the sales of classical music in the 1930's and
1940's and who was the first classical artist to sell 1 million records In addition Iturbi was the
first classical musician to receive a star on Hollywood's worldfamous Walk of Fame on
Hollywood Boulevard near The Hollywood Museum Iturbi also appeared in several MGM
movies in the 1940's including Anchor's Away starring Gene Kelly and Frank Sinatra Shortly
after Iturbi's death Dadigan acted quickly to cofound the Jose Iturbi Foundation a California
501c3 exempt private foundation Coincidentally not only is Dadigan the president of the
Jose Iturbi FoUndation but Dadigan's elderly mother Eleanor who is known to be of
compromised physical condition is listed as both the vice president and treasurer Laura Alcalde
alkia Laura Braunstein is the secretary while Dadigan's attorney George Braunstein is a director
of the Foundation See Exhibit 3 statement 10 The mailing address of the Jose Iturbi
Fomdation is 11755 Wilshire Boulevard Suite 2150 Los Angeles CA 90049 which is the same
address as George Braunstein's law office as well as Braunstein's other alleged charity SFAC
See Exhibit 3 page 1
Case 109cv03011 Document 1 Filed 05192009 Page 8 of 75
20 Andther corporation affiliated with Dadigan TSW ill LLC shares the same
address In addition Dadigan is listed as the president of a laundry list of other corporations
including LUCKY PIERRE INC THE HOLLYWOOD STARCOURT LTD GREEN LEAF
CONSTRUCTION MANAGEMENT CORPORATION PLATINUM PENNY INC
BEVERLYHILLS PRIME PROPERTIES INC and ALMA HORIZONS Dadigan lists the
mailing address for each of these corporations as her own personal Beverly Hills residence
Dadigan lists both The Hollywood Museum and BEVERLY HILLS PRIME PROPERTIES as
lines item on the 2007 IRS form 990 Tax Return for the Jose Iturbi Foundation
21 In 2007 the Jose Iturbi Foundation began its annual classical music competition
that is conducted once a year over the course of a few days This competition is allegedly
sponsored by The Hollywood Museum and Cunard Cruise Line In 1980 Jose Irturbi died and
he left his vast estate to his former secretary and longtime companion Marion Frances Seabury
In January of 2006 Marion Seabury died After the death of Seabury Dadigan became a trustee
of the Marion Seabury Living Trust a 501c3 exempt private foundation Upon information
and belief and according to a lawsuit filed in Los Angeles case numbers BP 95224 SP 6928 and
SP 6944 in or around 2003 Braunstein acted as the attorney for Marion Seabury and changed the
terms of her living trust Upon information and belief George Braunstein who was Marion
Seabury's long time lawyer knew Seabury for most of her life Ironically Braunstein is now
representing his life long friend who was also Seabury's supposed goddaughter Donelle
Dadigan Upon information and belief after the death of Marion Seabury a challenge to the
modification of the trust terms was initiated and Braunstein represented Dadigan
22 According to the 2007 IRS Form 990 Tax Return the Marion Seabury Living
Trust has 13679537 in assets See Exhibit 4page 4 In 2007 the Marion Seabury Living
8
Case 109cv03011 Document 1 Filed 05192009 Page 9 of 75
Trust paid 120000 in compensation to three members of the Board of Directors Despite this
fact there is virtually no evidence to support Dadigan's position that the amount of
disproportionate compensation was justified for "managing" the affairs of her "godmother's"
Living Trust (See Exhibit 4 statement 14 Dadigan who is on the Board of Directors of the
Seabury Trust was paid 40000 based on her questionable and unfounded assertion that she
spent 20 hours per week devoted to her position as a director. See Exhibit 4 statement 14
Despite the fact that Dadician has sworn under oath that her position as Founder and President of
The Hollywood Museum is a full time job she also claims to have spent an average of 20 hours
per week devoted to her duties as one of the directors of The Marion Seabury Living Trust In
addition according to the 2007 IRS Form 990 Tax Return filed by the Jose Iturbi Foundation
which Dadigan signed herself she claims to have spent another 15 hours per week in her role as
president of the Jose Iturbi Foundation See Exhibit 4 statement 14 Exhibit 3 statement 10
By applying elementary mathematical principles to Dadi gan's inconsistent sworn and signed
statements in 2007 Dadigan makes the incredulous assertion that she devotes a total of 75 hours
each and every week of the year working for The Hollywood Museum The Jose Iturbi
Foundation and The Marion Seabury Living Trust of which Dadigan is listed as one of the three
Trustees The 75 hours per week which Dadigan claims to contribute to these three charity
organizations does not include any of the time that she devotes to any of the others charities
which she is involved with nor any of the six corporations each which list her to be president
According to the 2007 IRS Form 990 Tax Return the Marion Seabury Trust paid an
unbelievable 423309 for "maintenance of propertysecurity" 37225 in moving expenses and
the staggering sum of 785180 in legal fees See Exhibit 4 statement 7 and statement 4
respectively After the death of Seabury according to the 2007 tax return the Marion Seabury
9
Case 109cv03011 Document 1 Filed 051912009 Page 10 of 75
Living Trust donated 559000 to the Jose Iturbi Foundation See Exhibit 4 statement 15
23 There are numerous accounting peculiarities cited in each of the IRS F01111 990
Tax Returns of the charities signed by Donelle Dadigan In 2007 according to the IRS Form
990 Tax Return which Dadigan signed and filed on behalf of the Jose Iturbi Foundation it
received 500000 not 559000 from the Marion Seabury Living Trust See Exhibit 3 page
1 According to the same IRS F01111 990 Tax Return in 2007 the Jose Iturbi Foundation
awarded 280711 in prize money for the music competition and allegedly spent approximately
278000 in expenses See Exhibit 3 statement 5 These facts are inconsistent with statement
made by Dadigan on or about June 20 2008 to the Los Angeles Times when referring to the Jose
Iturbi Foundation that "[w]e raise it [all of the money] ourselves But our staff is very small
believe that all nonprofits should have very little of their funds going to administrative work and
the bulk going to what it is we want to promote" See Exhibit 5
24 The 2007 Marion Seabury Living Trust tax return states that the books are in the
possession of Dadigan See Exhibit 3 page 5 The 2007 IRS form 990 Tax Return for the
Jose Iturbi Foundation filed by Dadigan identifies that some of the alleged expenses incurred by
the "charity" include 76791 in fees for public relations paid to the Michael Russell Group
This despite the fact that there was only one competition all year which lasted only a few days
and involved a limited if not meager public relations campaign On the same form there is also
listed an expense of 38224 for occupancy when the location of the office of the Jose Iturbi
Foundation is Braunstein's law office this fact establishes no basis to justify the redundant cost
of an office space for the charity In that same return Dadigan also identifies other dubious and
unexplained expenses such as 15902 for unidentified meals and entertainment 36219 for
advertising 4745 for telephone bills 14350 for outside services 59848 for miscellaneous
10
Case 109cv03011 Document 1 Filed 05192009 Page 11 of 75
27500 for consulting and 10664 for travel conferences and meetings See Exhibit 3 page 7
and statement 5
25 Dr Nicolosi who is a globally renowned celebrity pop artist was born and raised
in Illinois and has spent all of his adult life in Cook County He creates all of his signature Pop
Artwork in his downtown Chicago art studio For the past several years clients from all around
the world have called upon Nicolosi in Chicago to create one of his trademark creations in their
likeness In 2003 Nicolosi was catapulted onto the world stage after having a chance encounter
with America's favorite Golden Girl Rue McClanahan in February of that year There was an
immediate connection and shortly after the pair met Nicolosi endeavored to create an original
portrait of Rue for her birthday as her lovable Blanche Devereazix character The national
media immediately took note and soon a steady stream of savvy glitterati from all corners of the
planet made their way to Nicolosi's Chicago piedaterre to have the maestro interpret their
image and translate it onto the canvas Though Nicolosi will often hand deliver his works to the
celebrity clients all of his fine athvork continues to be created solely in the same art studio in his
home town of Chicago where it all began Between 2003 and July 2006 Nicolosi created
literally dozens of original celebrity portraits and has developed a strong rapport with his galaxy
of celebrity clientele including Oprah Winfrey Madonna Patricia Neal Marlon Brando Rita
Moreno Eli Wallach Kitty Carlisle Lucy Arnaz Ashton Kutcher Demi Moore Mayor Gavin
Newsom of San Francisco Norman Mailer Helen Gurley Brown Alec Baldwin Larry Hagman
Barbara Eden Senator•Hillary Clinton William Wrigley Jr Marshall Field V Senator Barack
Obama Studs Terkel and Mayor Richard M Daley of Chicago By the middle of 2005 the sale
aim original signed Nicolosi portrait would fetch upwards of 9000 apiece
26 On or about August 14 2005 Nicolosi met Dadigan for the first time at the
11
Case 109cv03011 Document 1 Filed 05192009 Page 12 of 75
Hollywood Museum At the behest of Nicolosi's professional colleague Johnny Grant the
honorary Mayor of Hollywood and President of the Hollywood Walk of Fame Nicolosi agreed
to meet with Dadigan personally and show her the original autographed portrait of Patricia Neal
which he created on the occasion of Ms Neal's receiving her own Star on The Hollywood Walk
of Fame in May of that year See Exhibit 40 Ms Neal and Nicolosi became fast friends once
they first began working together in March 2004 Ms Neal has been Nicolosi's guest in Chicago
on occasion to raise money for numerous legitimate causes in Chicago and throughout the State
of Illinois Nicolosi had never met Dadigan before and he had never heard of The Hollywood
Museum Grant implored Nicolosi to go to The Hollywood Museum with the portrait of Patricia
Neal as a favor to him Nicolosi's portrait of Ms Neal featured the legendary actress in her
Oscarwinning role from the movie Hud In 1963 Neal won the Academy Award for Best
Actress for her performance in Bud costarring screen legend Paul Newman Because of the
exceptional provenance associated with this particular piece of fine artwork the estimated value
of the autographed portrait in 2005 was set at 25000 See Exhibit 40
27 During that first meeting with Dadigan she introduced the artist to her elderly
mother Eleanor Dadigan also thanked Nicolosi for agreeing to meet with them and especially
for allowing the autographed portrait of Ms Neal to be loaned to The Hollywood Museum
Dadigan advised Nicolosi that she personally would be very interested in working with him as
she was involved with numerous "charitable" endeavors which could greatly benefit from the
level of publicity which Nicolosi and his artwork could bring to any of these worthy causes
During the entire two and one half hour meeting Dadigan never once disclosed to Nicolosi that
she personally would in any way become monetarily enriched through Nicolosi's involvement
with any of her non for profits Dadigan did tell Nicolosi that she would like for him to return to
12
Case 109cv03011 Document 1 Filed 05192009 Page 13 of 75
the museum again so that she may introduce the artist to Russell and Locascio as The Michael
Russell Group acted as her publicist She informed Nicolosi that The Michael Russell Group
were also the publicists of the Golden Globe Awards and The Hollywood Museum
28 On or about August 16 2005 Nicolosi met Locascio and Russell for the first time
at Mel's Diner At this meeting Dadigan told Nicolosi she had vast experience raising monies
for charities she had no reservations in sharing with Nicolosi her "outstanding reputation in the
Hollywood community" and in its tony fundraising circles In front of Dadigan Locascio
volunteered her privileged pedigree to Nicolosi Dadigan and Locascio gushed over how well
Dadigan was connected in Hollywood and that she had numerous political connections in
California Some of the previous experiences which Locascio and Russell cited as having
participated in with Dadigan as her publicist included familiar celebrity names such as Johnny
Grant Francis Ford Coppola Martin Scorsese and Margaret O'Brien At this meeting Nicolosi
advised Dadigan Locascio and Russell of the details of his standard working arrangement with
charities when he lends his name and likeness to them to raise money and public awareness for
charities Nicolosi explained to them that he creates original artwork for the charity which is
then autographed by the celebrity subject and subsequently goes to auction 40% of the proceeds
from the sale of the artwork would then be given to the charity while 60% of the proceeds would
go to offset Nicolosi's costs which include his time artwork materials airfare hotel costs
meals car rental crating of the artwork shipping of the artwork insuring the artwork etc The
60% which would go to Nicolosi also covers his personal appearance fee as well as a Q&A
Meet and Greet with the artist
29 Between approximately August of 2005 and July of 2006 Nicolosi was
repeatedly and frequently contacted in Chicago by Russell Locascio and Dadigan via telephone
13
Case 109cv03011 Document 1 Filed 05192009 Page 14 of 75
and email about Nicolosi's artwork the events surrounding the promotion of the artwork the
celebrities who commissioned the artwork and about the potential of possibly working on an
event together with Dadigan in the future During this time Russell Locascio and Dadigan
picked Nicolosi's brain as to more details pertaining to creating joint ventures with artists to raise
money for charities Nicolosi was always happy to help them out and share his expertise on this
topic with them Nicolosi expressed his willingness to help Dadigan personally out in any way
that he was able to do so and he always made his best efforts to make time for Dadigan's phone
calls when possible On or about October 19 2005 Locascio sent Nicolosi an email telling him
he should deal with Dadigan directly about forming a joint venture to raise money for charities
See Exhibit 6
The Fraudulent Inducement of Nicolosi
30 On July 19 2006 Nicolosi received an email in Chicago from Dadigan through
her publicist Russell who asked Nicolosi to immediately contact him about a potential project
See Exhibit 7
31 Shortly after receiving the email on July 19 2006 Nicolosi partook in telephone
conversations with both of Dadigan's publicists During Nicolosi's conversation with Locascio
he reconfirmed with Nicolosi that he and Russell were the publicists for the Golden Globes and
that he Russell The Michael Russell Group and Dadigan wanted to work with Nicolosi on a
project to raise money for the Hollywood Museum and possibly other charities in Los Angeles
Locascio made representations to Nicolosi that he Russell and Dadigan had extensive
connections in the entertainment business and they had attained an impeccable reputation in the
community and fundraising circles When referring to the reputation of Locascio Russell and
The Michael Russell Group in Hollywood during this same time period Dadigan herself has
14
Case 109cv03011 Document 1 Filed 05192009 Page 15 of 75
stated under sworn oath that "they have a great reputation in town [and] in the entertainment
industry" Still under oath when referring to how lucky Dadigan is to have been chosen by the
Michael Russell Group to be one of their clients Dadigan states "you know were just a little
museum I would have never fathomed being able to have their services or to even get their
attention frankly" Dadigan made these representations to Nicolosi and certainly did everything
in her power to convince Nicolosi of the impeccable reputation and connections that she and The
Michael Russell Group have in the entertainment business and in all of the Hollywood
fundraisin g circles yet in her sworn testimony for the same time period but given in a different
venue Dadigan made a sworn statement that her credibility had been "seriously" and "critically"
damaged in both in the entertainment industry and in charitable fundraising circles Dadigan
through her publicists Locascio and Russell told Nicolosi that they wanted Nicolosi to create
original portraits of various entertainment celebrities in conjunction with Entertainment
Tonight's coverage of virtually all of the award shows during the 20062007 award show season
It was the intention of Dadigan Locascio and Russell that the original portraits created by
Nicolosi would be sold by way of a world wide online auction through Ebay via SFAC's contract
with New York — based LiveAuctioneers and that a percentage of the proceeds from the online
auction would benefit The Hollywood Museum as well as The Grammy Foundation am±AR
headquartered in New York City and The Martin ScorseseFilm Foundation
32 In July andor August of 2006 Nicolosi was told by Locascio Russell The
Michael Russell Group and Dadigan through her publicists that
a The charity campaign was "confirmed" to attend the following award
shows The Emmy Awards — August 27 2006 The Hollywood Film
Festival — October 2006 The Golden Globes — January 15 2007 The
Sundance Film Festival — January 18 2007 The Academy of Motion
Picture Award Show luncheon — February 5 2007 The Screen Actors Guild —
February 8 2007 and The Grammys — February 11 2007
Case 109cv03011 Document 1 Hied 05192009 Page 16 of 75
b The charities involved were New York based amfAR Martin Scorcese Film
Foundation the Grammy Foundation and The Hollywood Museum
c Sharpie agreed to sponsor SFAC and agreed to pay a sponsorship fee of
375000 sponsorship fee
d That via SFAC's contract with New York based Liveauctioneers EBay agreed
to sponsor SFAC and agreed to pay a sponsorship fee of 250000
e That via SFAC's contract with New York based Liveauctioneers EBay agreed
to provide an eight month promotion on EBay home page which was worth
65 million
f That via SFAC's contract with New York based Liveauctioneers EBay agreed
to purchase 1000000 in ad spots on the television show Entertainment
Tonight
g Entertainment Tonight would provide a minimum of 20 minutes of air time for
promotion and
h Entertainment Tonight would provide a link to Nicolosi on its website which was
worth at least 35 million
33 On August 4 2006 Locascio wrote an email to Nicolosi See Exhibit 8 which
stated among other things
a Sharpie had agreed to pay a 375000 sponsorship fee and purchase 600000 in
ads on Entertainment Tonight
b Ebay had agreed to pay a 250000 sponsorship fee provide an 8 month
promotion on the eBay homepage which had a value of 65 million and was
going to purchase 1 million in ads on Entertainment Tonight
c Entertainment Tonight had agreed to provide a link on its website which was
worth 35 million
34 The statements contained in paragraphs 32 and 33 were patently false and known
to be false when stated in that
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and The Grammys
b New York based arnfAR the Martin Scorsese Film Foundation and the Grammy
Foundation were not involved in anyway
c Sharpie had not agreed to pay a 375000 sponsorship fee and had not agreed to
purchase 600000 in ads on ET
d Ebay had not agreed to pay a 250000 sponsorship fee it did not provide an eight
month promotion on the Ebay homepage and did not purchase 1 million in ads
on Entertainment Tonight and
e Entertainment Tonight did not agree and did not provide a link on its website
35 The completely false representations made by Dadigan Locascio Russell and
16
Case 109cv03011 Document 1 Filed 05192009 Page 17 of 75
The Michael Russell Group to Nicolosi that they were associated with New York based amfAR
the Martin Scorsese Film Foundation and the Grammy Foundation are especially material as
these charities arc all well known and extremely reputable throughout the world Each of these
charities is well established and enjoys a sterling reputation in the Alist celebrity realm
Working with only the most respected charitable organizations is paramount to Nicolosi He has
toiled for many years to establish a blemishfree "Nicolosi" brand and hence can only afford to
be associated with organizations and individuals with a comparable level of brand integrity
Working with charities of the stature of amfAR headquartered in New York City the 'Martin
Scorsese Film Foundation and the Grammy Foundation lends tremendous gravitas to the
Nicolosi brand which he has worked so hard establish
36 In July or August of 2006 Nicolosi began the process of creating a Biografia
catalogue to promote his involvement with SFAC and the numerous award shows in an effort to
raise money for the charities. See Exhibit 9 Throughout the several week creative process of
putting together the Biografia Nicolosi continually emailed the final draft of each page to The
Michael Russell Group for their final approval They in turn forwarded the images directly to
the Producers of Entertainment Tonight Both Entertainment Tonight and The Michael Russell
Group were overwhelming in their praises and approval of the beautiful pages of Biografia
Nicolosi received their written responses and approval for each and every page of the catalogue
Nicolosi invested over 25000 in materials printing binding color correction page set up
graphic design shipping and administrative costs to create • the Biografia catalogue The
Biografia was completed and delivered to the Mondrian Hotel in Los Angeles on or about
August 25 2006 Nicolosi autographed copies of Biogratia and sent via UPS to the producers at
Entertainment Tonight who were featured in the catalogue On or about August 26 2006
17
Case 109cv030 1 1 Document 1 Filed 051192009 Page 18 of 75
Nicolosi delivered a copy of the Biografia to Locascio and Russell at the NBC Emmy Nominee
party at Spago in Beverly Hills CA Nicolosi provided Locascio with an additional autographed
Biografia for him to give to Dadigan Both Locascio and Russell told Nicolosi that were excited
about the quality and content of the Biografia
37 On or about August 25 2006 Braunstein created a document and sent it to
Nicolosi's attorney that stated he was the attorney for Locascio Russell and SFAC and among
other things that See Exhibit 10
2 The confirmed events covered by Entertainment Tonight include the Emmy Awards
the Hollywood Film Festival the Golden Globes Awards the Screen Actors Guild
SAG Awards the Academy of Motion Picture Arts and Sciences Oscar luncheon
the Sundance Film Festival and the Grammy Awards
3 Entertainment Tonight to provide link on their website between Entertainment
Tonight and Nicolosi's website
• • • • • • • •
4 eBbay [sic] and Liveauctioneerscom will provide a link to Nicolosi's website
38 The statements contained in paragraph 37 were false and known to be false at the
time they were stated in that:
a The campaign was not "confirmed" and did not attend the Hollywood Film
Festival the Sundance Film Festival the Academy of Motion Picture Arts and
Sciences luncheon the Screen Actors Guild Awards and the Grammy Awards
b Ebay via SFAC's contract with Liveauctioneers were not involved with SFAC
and never provided a link on their website to Nicolosi's website
e Entertainment Tonight had not agreed and did not provide a link to Nicolosi on its
website
39 Braunstein did not infoun Nicolosi or his attorney that SFAC was not yet in
existence or that he was going to be the CEO aid CFO of SFAC as well as its attorney that he
was on the Board of Directors of The Hollywood Museum and was a very close lifelong personal
friend of Dadigan In fact during the entire relationship Braunstein never told Nicolosi that he
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was in fact SFAC instead he always referred to SFAC as his client and that he would need to
discuss matters with his client Nicolosi discovered that Braunstein was actually SFAC in 2008
40 In approximately August of 2006 Locascio told Nicolosi that he would need to
create a website that could handle the traffic that was expected as a result of being on the Home
page of eBay because the websites of some of his past clients crashed as a result of the volume of
traffic In reliance upon the representations that Nicolosi would receive a link to the websites
Nieolosi retained a webmaster to create a server that could handle the traffic expected as a result
of being on the home page of eBay Nicolosi invested approximately 20000 with a webmaster
and another 15000 to 20000 to create a website capable of handling such traffic
41 Based on the flagrantly untrue representations made by each of the defendants
Nicolosi agreed to participate and create 30 original portraits in what he thought was a le gal and
legitimate fundraising campaign In August of 2006 Nicolosi spent virtually all his time
completing the 30 original portraits because the first award show was on August 27 2006
42 In or about August of 2006 Locascio told Nicolosi that if Nicolosi were to need
assistants to help him backstage during the Emory Award show that Nicolosi would need to
bring them with him to the 2006 Emmy Award show Nieolosi advised Locascio that there
would be a total of four individuals plus Nicolosi's attorney who would be flying into Los
Angeles with him for the proper handling of Nicolosi's affairs associated with the Emmy artwork
during all phases of the award show Locascio made it very clear that the charity would not be
responsible for any of their air fare hotels accommodations food or car rental expenses for the
members of Nicolosi's support team but that they would provide for the necessary credentials
and ticketspasses for the members of Nicolosi's team to gain access to all venues associated
with The Emmys Once Nieolosi arrived at Shrine Auditorium the day before the Emmy Awards
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for rehearsal and the setting up of his artwork he and the five members of his team worked with
the producers of Entertainment Tonight During rehearsal Nicolosi was informed that because
of heightened security he would only be able to have one assistant backstage with him the next
day during the actual award show Once Locascio learned of this restriction of backstage
passes he said that he would arrange for the other 4 members of Nicolosi's team to attend the
Emmy Award show inside the Auditorium since it would not be possible for them to be
backstage with Nicolosi That afternoon Locascio phoned Nicolosi's attorney and said that he
had tickets for the four members of the Nicolosi's team for entry into the Emmy Award Show
He apologized for the mix up and assured Nicolosi's attorney that the additional four members
would be close to the backstage area so that they could help Nicolosi after the award show
Then sometime in September long after the Emmy award show Locascio informed Nicolosi
that he had actually paid for the tickets for the four members of Niclolosi's team and that he paid
a total of 2200 out of his own pocket for the tickets Locascio demanded that Nicolosi
reimburse him for the costs of the four tickets because he had allegedly purchased them for 550
apiece Long after the 2006 Ernmy Award Show Locascio gave Nicolosi the ultimatum that if
he did not immediately reimburse him for the costs of the tickets that he would not allow
Nicolosi to attend any of the future award shows Nicolosi requested some form of receipt from
Locascio or some documentation which supported Locascio's claim showing I How much
Locascio had actually paid if any for the four tickets 2 What method of payment Locascio had
used and 3 to whom he had allegedly paid the 2200 Locascio became irate and stated that he
was insulted by Nicolosi's request Locascio said that he did not have access to the
documentation and demanded that Nicolosi pay him the 2200 solely based on Locascio's
"good word" The 550 amount seemed exceedingly high for a single ticket Upon researching
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the cost of Emmy tickets Nicolosi has since confirmed that according to the official Emmy
Award show vyThsite the costs of Emmy tickets range from 200 to 400 The official Erniny
website explains that the 400 tickets are sold out long in advance to the show Locascio never
did provide Nicolosi with any of the supporting documentation which he requested showing if
or how much Locascio had allegedly paid for the four Emmy tickets Upon information and
belief the tickets for the 2006 Emmy Award Show did not cost 55000 and in actuality it is
unlikely that Locascio paid anything at all for the four tickets which he demanded and received
the sum of 2200 from Nicolosi Ultimately based solely on Locascio's word and because of
his threats Nicolosi paid Locascio 2 200 for the four tickets
43 On or about August 18 2006 Nicolosi finished the original portraits During the
month of August 2006 Nicolosi and his attorney repeatedly asked Locascio where the portraits
should be shipped but these requests were completely ignored In the late afternoon of Friday
August 25 2006 Nicolosi was finally provided an address where the portraits should be shipped
Nieolosi's agents in Chicago crated packed insured and shipped 30 original signed Nicolosi
portraits to Los Angeles California for the Emmy Award Show which was scheduled to be
filmed less than two days later on August 27 2006 Because of Braunstein's refusal to respond
in a timely manner and to wait until the last minute to respond to any inquires made on behalf of
Nicolosi as to the address where the artwork needed to be shipped all of the crates of fine
artwork needed to be shipped from Chicago via the extremely costly priority overnight Saturday
delivery The original portraits were all created in Chicago by Nicolosi Nicolosi paid all the
costs associated with creating the original artwork and Locascio agreed to pay the cost to ship the
portraits from Chicago to California
44 Nicolosi also created 30 lithographs one for each of the original portraits in
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Chicago These lithographs were to be presented to eachof the 30 celebrities whose portraits
were created by Nieolosi so as to create a photoop with Nicolosi and each of the celebrity
subjects On August 27 2006 Nieolosi appeared at the 58 th annual Prime Time Emmy Awards
and his original portraits were prominently displayed on the set of Entertainment Tonight at the
award show Entertainment Tonight's host Mark Steines made representations on air that the
portraits would be auctioned online to benefit amfAR When Entertainment Tonight's Emmy
special first aired on national television the following evening ET's Mark Steines is shown
speaking to actress Mariska Hargitay and Nicolosi as Hargitay is shown autographing her own
Nicolosi portrait on the ET set Right after Hargitay finished autographing her Nicolosi portrait
Steines is shown presenting her with her own special Nicolosi lithograph and a copy of the
Biografia catalogue signed by Nicolosi as a special thank you to the actress from Nicolosi and
Entertainment Tonight During the rest of that segment Nieolosi appeared on Entertainment
Tonight accompanied by numerous other celebrities each autographing their own Nicolosi
original portrait including Kiefer Sutherland Julia LouisDreyfus Tony Shalhoub Steve
Carell and the cast of the hit television show The Office. Each of these four additional
celebrities are also shown receiving their own special Nieolosi lithograph and a signed copy of
the Biografia catalogue as a special thank you from Nieolosi and Entertainment Tonillht
45 On the afternoon of August 28 2006 the day after the Emmy Awards Locascio
was entrusted with the remaining 25 lithographs to hold for Nicolosi LoCascio instructed
Nicolosi to deliver the remaining 25 lithographs to Locascio's and Russell's home Nicolosi was
unaware of the fact that LoCascio and Russell operate their business out of small spare bedroom
in their cozy house an hour outside of Los Angeles He only learned such sometime in 2009
LoCascio informed Nieolosi that he would hold the 25 lithographs for safekeeping until the next
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award show when Nicolosi would have the opportunity to hand deliver each lithograph to the
celebrity subject and be photographed with each celebrity and their own Nicolosi artwork
Nicolosi entrusted these 25 lithographs into Locascio's possession Nicolosi never saw his
artworks again Upon information and belief these 25 lithographs were never given to the
celebrities and Nicolosi has no knowled ge as to the ultimate disposition of these lithographs
46 The 30 original portraits had a fair market value of at least 300000 30 x
10000 and the fair market value of the remaining 25 lithographs was approximately 30000
25 x 1200 Nicolosi also created 30 duplicate originals This set of 30 duplicates
accompanied with the set of originals that were stretched on stretcher bars and appeared on the
set of Entertainment Tonight @ the 58 th Annual Emmy Awards The duplicate originals have
disappeared and the last Nicolosi saw of them was when they were dropped off at the home
Russell and Locascio share The duplicate originals have a conservative fair market value of at
least 300000
47 On August 27 2006 Nicolosi appeared at the 2006 Emmy Awards in California
and the original portraits were prominently on display at the award show and Nicolosi and
Entertainment Tonight promoted SFAC at the award show Nicolosi and Entertainment Tonight
promoted SFAC despite the fact that neither was aware that SFAC was not yet in existence
48 After the 2006 Emmy Awards the defendants consistently refused to return phone
calls and emails snit by Nicolosi's attorney failed to timely and adequately respond to emails
failed to adequately and promptly inform Nicolosi about the status of the charity campaign and
constantly misled and misinformed Nicolosi Braunstein also directly contacted Nicolosi
numerous occasions despite the fact he knew Nicolosi had an attorney and was warned on
numerous occasions to stop communicating directly with Nicolosi
Case 109cv03011 Document 1 Filed 05192009 Page 24 of 75
49 In approximately September of 2006 according to a complaint filed by Salon
City Inc a National Consumer Magazine focused on the professional beauty salon industry
Locascio and SFAC made false statements to Salon City As a result of these false statements
Salon City filed a complaint against SFAC Steve Locascio and others See Exhibit 11 The
complaint alleged that false statements were made to Salon City to induce it to pay SFAC
60000 for the benefit of SFAC The complaint alleged that the defendants made the following
false statements
a Liveauctionerscom and eBay would provide a presence on eBay home page
b New York based amfAR was a sponsor and
c that the charity fundraising campaign would go to the Hollywood Film Festival
SAG the Oscar luncheon Grammy Awards and Independent Spirit awards
50 Nicolosi was unaware of the false statements made to Salon City by Locascio
SFAC and others
The Hollywood Film Festival
51 As per the terms of Nicolosi's agreement with the defendants the next Award
show that was to feature Nicolosi and his original artwork after the August 2006 Emmy Awards
was The Hollywood Film Festival which was scheduled to take place during the week of
October 18 2006
52 In September and October of 2006 numerous emails were sent on behalf of
Nicolosi by his attorney in Chicago to Braunstein asking for information regarding the
Hollywood Film Festival and for copies of the contracts SFAC had with Entertainment Tonight
Ebay ainfAR Sharpie New York based Liveauctioneers Mount Blanc Hollywood Museum
and Martin Scorsese Film Foundation These emails were ignored by Braunstein for months
53 During the fall of 2006 Nicolosi's attorney would call Braunstein's office from
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Chicago and a woman would answer the phone This woman would identify herself as
Braunstein's secretary Laura Alcade she never disclosed that she was not only Braunstein's
wife„ but that she was also the registered agent for SFAC It was not until approximately April
of 2007 that Nicolosi initially discovered that Laura Alcade was actually Laura Braunstein and
that she used numerous different aliases such as Laura Braunstein Laura Alcade and Laura
Braun ThiS deception was obviously done to confuse Nicolosi and others
54 On or about October 2 2006 Nicolosi was given the names of celebrities whose
poi Uaits he was to create for the Hollywood Film Festival Nicolosi in good faith immediately
began working on sketches of the portraits in Chicago and spent numerous hours over many days
completing the sketches in Chicago
55 On October 5 2006 Locascio had a phone conversation with Nicolosi's attorney
in Chicago and stated that they were still going to attend the Hollywood Film Festival that he
wanted Nicolosi to create original portraits and that he was waiting for Carlos de Abreu to tell
him the specifics the about location of the Entertainment Tonight booth at the Hollywood Film
Festival
56 On October 6 2006 Locascio sent an email to Nicolosi in Chicago which stated
to "hold off" on finishing the portraits until after he had a meeting with Entertainment Tonight
the next week because he was unsure of identity of the celebrities whose portraits were to be
completed See Exhibit 12
57 Throughout the entire month of October of 2006 Braunstein refused to respond to
numerous entails and phone calls about the status of the Hollywood Film Festival In fact
Braunstein never informed Nicolosi that he would not be creating artwork for nor attending the
Hollywood Film Festival
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58 Ultimately Nicolosi did not completely finish any portraits for the Hollywood
Film Festival because he was told to "hold off" he was never provided with the final list of
celebrities and the failure of Braunstein to communicate with Nicolosi or his attorney
59 After the Hollywood Film Festival Locascio explained to Nicolosi that they did
not attend the Hollywood Film Festival because Tom Cruise had just been fired from Paramount
and Tom Cruise's business partner had influence with The Hollywood Film Festival and that
because Entertainment Tonight was owned by Paramount that Entertainment Tonight would not
be welcome at the Hollywood Film Festival Obviously this cockamamie story manufactured
by Locascio was a figment of Locascio's vivid imagination and used to dupe Nicolosi into
believing that there was some legitimate excuse for not attending the Hollywood Film Festival
60 On or about October 23, 2006 Locascio in an effort to induce Nicolosi to continue
working with all of the Defendants told Nicolosi while he was in Chicago that he had scheduled
an exhibit of Nicolosi's artwork at the Museum of Contemporary Art in Los Angeles California
and that he needed information from Nicolosi It took several days and countless hours for
Nicolosi's Chicago agents to compile organize and forwarded copious photos text and
documentation to Locascio for this wild goose chase which ended as mysteriously as it began
Soon after Locascio received the voluminous set of privy Nicolosi documentation from Chicago
he never brought up the topic of a Nicolosi exhibit at the Museum of Contemporary Art in Los
Angeles again
61 On or about November 6 2006 Locascio told Nicolosi's attorney in Chicago that
they were going to have a phone conference call with the head curator of the Museum of
Contemporary Art on November 9 2006 On November 9 2006 Locascio wrote an email to
Nicolosi's attorney that staled that the phone conference had been rescheduled to November 13
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2006 because "My attorney has still not finalized a document for you" See Exhibit 13
62 On November 13 2006 no phone conference with the head curator occurred and
Nicolosi was never informed that there would be no phone conference call with the head curator
or with any member of the Museum of Contemporary Art On November 13 2006 Nicolosi's
attorney in Chicago wrote an email to Locascio about the status of the phone conference call and
the possibility of Nicolosi obtaining an exhibit at the Museum of Contemporary Art This query
by Nicolosi's attorney went unanswered and the subject was never discussed again by Locascio
2007 The Golden Globes
61 The Golden Globe Award show was scheduled for January 15 2007
64 On January 5 2007 after months of unanswered emalls phone calls voice mail
messages and letters from Nicolosi's attorney in Chicago Braunstein finally emailed Nicolosi's
attorney in Chicago the list of celebrities whose portraits were to be created by Nicolosi
Nicolosi was provided the list of celebrity names and instructed to create 20 original portraits
only 10 days before the Golden Globe Award Show After receiving the names of the celebrity
portraits Nicolosi once again spent virtually all his time in Chicago creating the original portraits
for the 2007 Golden Globes
65 In January of 2007 Braunstein gave Nicolosi an ultimatum to pay almost 3500
in costs to the charity or he would pull the plug on Nicolosi's involvement with the charity and
Entertainment Tonight would sue Nicolosi for not performing
66 On or about January 11 2007 Nicolosi finished 20 original portraits for the 2007
Golden Globes Award show These original portraits were all created in Chicago Illinois and
were shipped to California by Nicolosi These portraits had a Fair Market Value of 200000
20 x 10000 and Nicolosi paid for all the expenses to create these portraits and to ship them to
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California Because of Braunstein's refusal to promptly respond to inquires made on behalf of
Nicolosi and Braunstein's last minute threats and tactics all of the cases of fine artwork had to
be shipped from Chicago via the extremely costly priority overnight service
67 On or about January 12 2007 Nicolosi and SFAC executed a document entitled
Sponsorship Agreement See Exhibit 14 Nicolosi executed and signed the Sponsorship
Agreement in Chicago This document stated in part
2 The confirmed Award Shows for the season covered by ET include the Emmy
Awards the Golden Globe Awards Screen Actor Guild SAG Awards the
Academy of Motion Pictures Arts and Sciences Oscar luncheon the Sundance
Film Festival and the Grammy Awards
ET provide link on their website between ET and Nicolosi's website as soon as
possible
5 eBbay [sic] and New York — based Livcauctioneerscorn will provide link to
Nicolosi website when the auction website for the auction goes live on the
Internet
68 The document executed on January 12 2007 contained falsehoods that were
known to be false when made in that
a Nicolosi was not going to attend and did not attend the Screen Actor Guild
Awards The Academy of Motion Pictures Arts and Science luncheon the
Sunclance Film Festival and the Grammy Awards
b ET was not going to and did not provided a link to Nicolosi's website and
e As represented by SFAC Ebay via SFAC's contract with Liveauctioneers were
not going to and did not provide link to Nicolosi's website
69 Unbeknownst to Nicolosi also on January 12 2007 Braunstein filed a complaint
on behalf of numerous plaintiffs including several of the defendants in this case Dadigan the
Michael Russell Group and The Hollywood Museum against Mario Magro in Los Angeles case
no BC364757 See Exhibit 15 This complaint which was prepared by Braunstein alleged
among other things that Dadigan The Michael Russell Group and The Hollywood Museum were
involved with a charity fundraising campaign with a designer who created purses for celebrities
to kiss at the Golden Globes on January 16 2006 the Grammys on February 8 2006 and the
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Academy Award nominee's luncheon on February 13 2006 In the complaint drafted by
Braunstein (See Exhibit 15) he wrote Dadigan Russell and the Hollywood Museum had
suffered "serious damage to the credibility and reputation of the Plaintiffs both in the
entertainment industry and in charitable fundraising circles" The Michael Russell Group
Dadigan the Hollywood Museum and others "credibility and goodwill in the charity fund raising
community had been critically damaged" That the Plaintiffs had "affiliation and relationships
with key persons and corporate players in the entertainment industry and in the media
specifically Plaintiff's relationships with Access Hollywood Entertainment Tonight Getty
Images and with myriads of celebrities eg actors producers directors journalists etc who
could he called upon to participate in and to support a worthy and credible charity fund raising
effort" According to Braunstein's complaint filed on January 12 2007 the Plaintiffs'
relationships with key persons and corporate players in the entertainment industry and in the
media were seriously damaged as was the reputations of Dadigan Russell and the Hollywood
Museum both in the entertainment industry and in charitable fundraising circles
70 In response to the complaint drafted by Braunstein Mario Magro filed a
counterclaim alleging numerous causes of action See Exhibit 16
71 During discovery conducted in BC364757 on June 7 2007 Ebay provided an
affidavit which stated that it had no record of any kind of ever being contacted by Dadigan
Locascio Russell or Braunstein despite the fact Braunstein LoCascio Russell and Dadigan had
repeatedly stated to Nicolosi that Ebay was a sponsor of SFAC and Nicolosi would receive a link
on the homepage of Ebay See Exhibit 17
72 Dadigan has testified under sworn statement with penalties of perjury that the
damage to her reputation as a result of the actions as alleged by Braunstein in the complaint he
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drafted and filed was "appalling" and that The Hollywood Museum's reputation was ruined and
was unable to work again with the Martin Scorscse Film Foundation and the Grammy
Foundation None of this was ever disclosed to Nicolosi by any of the defendants
73 Virtually all the acts complained of in the January 12 2007 lawsuit drafted by
Braunstein mentioned in paragraph 69 and the resulting "serious" damage to Dadigan Russell
The Michael Russell Group and The Hollywood Museum occurred before Nicolosi became
involved with Dadigan and her brazen cast of unsavory characters who are listed as the plaintiffs
in the case drafted and filed by Braunstein
74 None of the defendants in the instant case informed Nicolosi about the facts as
alleged in the complaint drafted by Braunstein that a lawsuit had been filed and that their
credibility had been "seriously" and "critically" damaged in both in the entertainment industry
and in charitable fundraising circles in the ways alleged in the complaint It was not until
sometime in or around the beginning of 2009 that Nicolosi became aware of the facts alleged in
the complaint drafted by Braunstein and filed on January 12 2007
75 On January 15 2007 Nicolosi appeared at the Golden Globes and his original
portraits were prominently displayed on the set of Entertainment Tonight at the award show
Entertainment Tonight's host Mary Hart promoted SFAC on air with Nicolosi accompanied by
numerous celebrities each autographing their own Nicolosi original portrait including Meryl
Streep Eddie Murphy Jennifer Hudson America Ferrera Alec Baldwin Selma Hayek Helen
Mirren Ryan Seacrest Forest Whitaker Kyra Sedgewick Patrick Dempsey any many more
When Entertainment Tonight's Golden Globes segment aired on national television the
following night El's Mary Hart was shown speaking to Meryl Strecp and Nicolosi who were
both seated on the couch next to Hart As Streep was shown autographing her own Nicolosi
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portrait Hart specifically told Meryl Streep that her Nicolosi portrait would "be auctioned off
next May in Cannes " During the same airing when Mary Hart is seen discussing the SFAC
online auction with Eddie Murphy as he autographs his own Nicolosi portrait Hart tells Murphy
on camera that `an tAR is the major recipient of these monies"
The Sundanee Film Festival The Academy of Motion
Pictures The Screen Actors Guild Awards and the Grammes
76 Immediately after the Golden Globes and continuously through February of 2007
Nicolosi's attorney made numerous requests for in formation pertaining to the remaining award
shows including requests for the names of the celebrities whose portraits Nicolosi was to create
and specific details pertaining to award shows Most of these requests were completely ignored
by Braunstein Locascio Russell and Dadigan Ultimately Nicolosi was not provided with
sufficient or accurate information by the defendants to create original portraits and Nicolosi was
informed at the last minute that he would not be attending any of the award shows The award
shows occurred without Nicolosi attending nor creating original any additional portraits.
77 On January 22 2007 which was the week of the 2007 SAG Awards Locascio
wrote to Nicolosi's attorney and others and informed them that "We have reviewed with ET the
nominees and potential winners at SAG this year and we all aaree that it will look like the
Globes all over again We have decided to skip the SAG Awards and go directly to the
Grammy' s" See Exhibit 18
78 On February 6 2007 less than four days before the Grammy Awards Locascio
told Nicolosi that SFAC would not be appearing at the Grammy's because "we have discussed
this at length internally with ET and with Cunard The consensus is that Movies and television
are more glamorous and appeal to a 'better healed' clientele for the auction and the cruise line
Therefore this year we are going to not attend the Grammy Awards and just concentrate on A
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List movietelevision talent We will be getting a list of portraits for the Ind Spirit Awards this
week from ET I will pass them on to you just as soon as we get them" (See Exhibit 19) The
list of portraits for the Independent Spirit Awards never arrived and again Nicolosi was informed
at the last minute that he would not be creating any portraits nor attending the award show
The SFAC Art Exhibit in Chicago
79 On or about March 10th of 2007 The Hilligoss Galleries on Michigan Avenue in
Chicago hosted an exhibition of Nicolosi's artwork on behalf of SFAC The final draft of the
invitations for the SFAC Chicago Exhibit of original Nicolosi Celebrity portraits in Chicago was
completed by Dadigan's publicists The Michael Russell Group with the full knowled ge and
consent of Braunstein Dadigan and SFAC In fact Braunstein was ced on the entails from the
publicists where they directed and approved of the details for the event The Michael Russell
Group themselves wrote and approved all of the text which was ultimately printed on the
invitations for the SFAC Chicago Exhibit See Exhibit 33 Because of Nicolosi's tremendous
cache in his own hometown of Chicago the publicists were well aware of the fact that a
grandiose exhibit in the city where the artist lives and where he created the entire SFAC
collection would gamer enormous media attention for the upcoming SFAC online auction
Thousands of invitations were mailed to Illinois residents and hundreds of lllinois residents
attended the SFAC Chicago exhibit At the SFAC Chicago exhibit attendees were asked to sign
a guest book and provide their contact information so that they could be sent announcements
When the SFAC online auction would be taking place Virtually all of the attendees signed the
guest book in Chicago were residents of Illinois
80 On January 29 2007 Dadigan through her publicist Locsacio of The Michael
Russell Group sent Nicolosi a draft press release that stated See Exhibit 20 "In April the
Case 109cv03011 Document 1 Filed 05192009 Page 33 of 75
exhibition will be presented at venues in Chicago and New York before boarding Cunard's
Queen Mary 2 New York to South Hampton England on April 18 Cunard and Live
Auctioneers are coordinating the exhibition that will also be showcased at venues in Berlin
Rome and Paris before its exhibition and ensuing worldwide auction culminating on May 20th in
London!'
81 The statements in this press release were patently false and known to be false in
that there was not an exhibition in New York Berlin Rome and Paris and no worldwide auction
on May 20 in London in 2007
82 On or about March 20 2007 Nicolosi's agent sent an email to Russell with a
draft of the invitation to the SFAC Art Exhibit in Chicago which was set for March 30 2007
See Exhibit 21
83 On or about March 20 2007 Russell wrote an email to Nicolosi's agent with
Russell's final draft of the invitation See Exhibit 22
84 On or about March 20 2007 Russell wrote an email to Karl Walter of Getty
Images asking Walter to send images of numerous SFAC portraits to be used at the charity's
exhibition in Chicago See Exhibit 23
85 On March 20 2007 Brian O'Connor of Cunard Cruise Lines wrote an email
addressing the contents of the invitation See Exhibit 43
86 Hilligoss provided the press release approved by Russell to the Chicago news
media and ABC 7 Chicago aired a segment regarding SFAC the gallery exhibit and the
upcoming SFAC online auction The SFAC Chicago Art Exhibit story aired on ABC 7 Chicago
on March 29 2007 and more information about the SFAC online auction was placed on the ABC
7 Chicago website which is still available on ABC 7 Chicago's website
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87 Hillgoss mailed out several hundred invitations and digitally disseminated
thousands of announcements of the SFAC Chicago Art Exhibit to its clients and also sent copies
to Braunstein Russell and Locascio See Exhibit 44 Nicolosi agreed to waive his personal
appearance fee for the SFAC Art Exhibit in Chicago so that Dadigan and SFAC would not have
to incur that expense
88 On April 30 2007 the SFAC Chicago Art Exhibit was held at Hillgoss Galleries
and several of the original portraits created by Nicolosi which were a part of the SFAC Celebrity
Art auction were on display including the autographed portraits of Mariska Hargitay Ashton
Kutcher Rita Moreno Marlon Brando Barbara Eden Larry Hagman Senator Hillary Clinton
Demi Moore Patricia Neal Eli Wallach and Clint Eastwood
89 On July 14 2008 Braunstein wrote a letter to Nicolosi in response to an
investigation being conducted by the Illinois Attorney General as to why Braunstein had not
registered SFAC with the State of Illinois prior to inviting the public to their SFAC Chicago
Exhibit In Braunstein's letter to Nicolosi he made reference to the SFAC Chicago Art
Exhibition and acted as though he had no knowledge of it ever having occurred Braunstein
stated that "such fundraising activities were unknown to SFAC and were never authorized or
sanctioned by SFAC" See Exhibit 24 In that same letter despite the fact Braunstein was
advised by the Illinois Attorney General that raising money in Chicago would be illegal without
having first registered their California 50103 with the State of Illinois Braunstein demanded
any and all monies which were received as a result of the SFAC Chicago Art Exhibit See
Exhibit 24
90 Obviously the statements made by Braunstein in the letter of July 14 2008 were
false and known to be false when made by Braunstein because SFAC Was fully aware of all
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aspects of the Chicago Exhibition because SFAC issued a press release in January of 2007
promoting the exhibition SFAC was involved in all aspects of the planning of the event as can
be understood by reviewing paragraphs 79 to 89 above and Braunstein himself received an
invitation to the event See Exhibit 44
The Cannes Film Festival
91 The Cannes Film Festival was scheduled to commence the week of May 13 2007
92 In early Spring of 2007 in an effort to induce Nicolosi to attend the Cannes Film
Festival Locascio Russell Braunstein The Michael Russell Group and Dadigan through her
publicists told Nicolosi that
a Nicolosi's artwork would be displayed at the Century Club in Cannes with
celebrities signing the portraits and Entertainment Tonight filming the celebrities
signing the portraits
b NiColosi would be going on a European tour to exhibit his artwork which would
start in Cannes and then proceed to Berlin Rome Paris and London
c Nicolosi would be staying in a luxurious Villa on Promenade de is Croisctte near
the Carlton Hotel
d all the expenses associated with the cruise to Europe on the Queen Mary 2 and the
time spent in Europe would be paid for and
e that a reception would occur in New York the night before the cruise
93 Nicolosi relied on the statements made in paragraph 92 in making his decision to
attend the Cannes Film Festival as well as to create additional portraits and to promote SFAC
Prior to leaving for Cannes Nicolosi created original artwork for Cannes which included
portraits of Matt Damon Angelina Jolie George Clooney and the SFAC logo These additional
portraits were created by Nicolosi to be a part of his European Art tour not as a part of the SFAC
collection
94 Prior to leaving for Cannes Nicolosi reached an agreement with South Florida
Global Fine Arts which stated that Nicolosi would create two portraits of the Queen Mary 2 and
a commissioned portrait all three of which were to be auctioned onboard Cunard's QM2 during
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her Trans Atlantic crossing See Exhibit 37 Nicolosi and Global Fine Arts also agreed that
the two portraits of the Queen Mary 2 would be auctioned off during the first part of the cruise
along with the commissioned portrait Nicolosi and Global Fine Arts also agreed that Global
Fine Arts would sell 25 lithographs Nicolosi and Global Fine Arts also agreed that the proceeds
from the auction of these portraits and the sale of the lithographs would be split between the
Global Fine Arts and Nicolosi with Nicolosi receiving approximately 30% of the gross sale
proceeds Cunard's head of PR Brian O'Connor was the agent who facilitated the introduction
and subsequent drafting of the agreement between Global Fine Arts and Nicolosi's agent Based
upon the agreement with Global Fine Arts Nicolosi created two original signed portraits of the
Queen Mary 2 one 36" x 60"and the other 24" x 36" Nicolosi received 1414 from the sale of
the lithographs which sold for 19500 a piece and 2100 from the 9000 sale of the
commissioned portrait
95 The 24" x 36" portrait of the Queen May 2 was sold at the SFAC Auction in
September 2007 The 36" x 60" portrait of the Queen May 2 has disappeared and as far as
Nicolosi !mows the last person in possession of the portrait was SFAC On October 22 2007
Nicolosi made a written demand to Global Fine Arts located in Dania Florida for return of his
property namely the 36 x 60 portrait of the Q1V12 Lisa Marinello of Global Fine Arts promptly
replied that same afternoon that she would send the portrait back to Nicolosi but it never arrived
See Exhibit 46 Nicolosi was told by Braunstein in an email dated September 26 2007 that
the charity cannot address the 36" x 69" QM2 piece as that is a discussion to have with Cunard
directly" See Exhibit 25 para 6 On October 22 2007 Jennifer Kaplan of Global Fine Arts
wrote an email to Brian O'Connor informing him that she was going to return the 36" x 60"
portrait of the Queen Mary 2 to Nicolosi See Exhibit 26 On October 22 2007 Brian
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O'Connor wrote an email to Jennifer Kaplan which stated that the 36"x 60" portrait of the Queen
Mary which had a market value of approximately 50000 "was gifted to Cunard by 'Stars For A
Cause"' and the portrait was not "the property of Nicolosi" See Exhibit 26 Nicolosi never
agreed to give the 36"x 60" portrait to SFAC and did not agree to and was unaware that SFAC
"gifted" it to Cunard Despite the fact that Brian O'Connor claimed that SFAC "gifted" the
extremely valuable painting to Cunard there is no record that SFAC made such gift on the 2006
or 2007 tax returns filed by SFAC See Exhibits 27 and 28 respectively The claims and
representations that O'Connor made in his email to Global Fine Arts are completely false and
baseless because it is improper for a nonforprofit charity to "gift" anything to a for profit
corporation
96 Prior to leaving for Cannes Locascio created a press release that was also
published by Brian O'Connor of Cunard Brian O'Connor was employed by Cunard in some
public relations position in approximately June of 2006 after being previously employed by the
Beverly Hilton While working at the Beverly Hilton Brian O'Connor worked closely with
Locascio because Locascio has been the publicist for Golden Globes for many years and the
Golden Globes is held at the Beverly Hilton In fact Locascio has boasted that he was
responsible for O'Connor obtaining his job at Cunard The press release published by Locascio
which is still available on Cunard's website was published in trade publications and was
disseminated by Brian O'Connor throughout Europe and Australia stated that Nicolosi was set to
"begin a European tour with exhibits planned at the 60th Cannes Film Festival and then to
London where they will be sold during a worldwide live and online auction in early June
Auction proceeds to benefit amFAR Prince's Trust UK and the Hollywood Museum" See
Exhibit 29 This press release contained false statements that were known to be false when
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made in that there was no European tour no exhibit in Cannes no exhibit in London no online
auction in June and amfAR which is based in New York City was never involved with SFAC
97 Nicolosi arrived in New York on April 29 2007 and was told that there would
not be a reception prior to the cruise the following morning Nicolosi paid for his hotel in New
York and the flight from Chicago to New York
98 Nicolosi boarded the Queen Mary 2 on April 30 2007 and the ship arrived in
South HamptOn England on May 6 2007 After boarding the ship and heading out to sea en
route to crossing the Atlantic Ocean Nicolosi was told that Dadigan Locascio Russell and the
others traveling with them would be disembarking in England but that he should stay on the ship
with the artwork until the ship arrived Marseilles France
99 During the cruise to Cannes Locascio told Nicolosi that he would be on the cover
of The Hollywood Reporter and that there was going to be a full page ad in the magazine which
cost 80000 Nicolosi was not on the cover of The Hollywood Reporter but the May 19 2007
edition of The Hollywood Reporter contained two full page ads one for SFAC and one for the
Hollywood Museum See Exhibit 42 The ad stated that amfAR was a beneficiary of SFAC
and that there was going to be a world premiere exhibit in Cannes at the Century Club with 60
celebrity portraits on display The ad contained falsehoods in that amfAR was not a beneficiary
of SFAC and there was not an exhibit of 60 celebrity portraits in Cannes In fact there was
never any SFAC world premiere exhibit of any kind at the Century Club or anywhere else in
Cannes during the 2007 Cannes Film Festival The 2007 SFAC form 990 tax return which was
personally signed by Braunstein under penalties of perjury and the 2007 IRS form 990 tax return
for The Hollywood Museum do not state that it paid for such ads or otherwise mention the ads in
any manner
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100 Nicolosi was told by O'Connor Locascio and Braunstein that the cost for a cabin
on Cunard's Queen Mary 2 for a TransAtlantic cruise is approximately 25000 Upon
information and belief SFAC paid for the cruises and expenses incurred on the cruise or
convinced Cunard to donate monies to SFAC for the cruise After Nicolosi arrived in New York
he became aware of the fact that numerous other people would be traveling with him and the
SFAC collection of artwork onboard the Queen Mary 2 The other persons included George
Braunstein Laura Braunstein George Braunstein's mother in law Donelle Madigan Michael
Russell Steve Locascio Steve Locascio's daughter Chandler Locascio Chandler Locascio's
babysitter Becky Joel Vig an assistant to help with the artwork and Braunstein's personal
photographer Laurent Malachi Braunstein made false representations to Nicolosi and others that
Malachi was a camera man from Entertainment Tonight who would be filming Nicolosi during
his European Tour and that the footage would be aired on Entertainment Tonight
101 In total there were 7 cabins occupied on Cunard's QM2 which upon information
and belief cost SFAC approximately 175000 While in Cannes Braunstein rented a sprawling
apartment in which he stayed with his wife and adult children as well as Russell and Locascio
The cost of such lavish accommodations during the entire Cannes Film Festival would be
approximately 35000 to 50000 per week and which upon information and belief was paid for
by monies donated by Cunard to SFAC
102 When Nicolosi disembarked the Queen Mary 2 ship in Marseilles France there
were no arrangements made by any of the defendants to transport Nicolosi or the artwork to
Cannes Nicolosi was stranded in the dangerons city of Marseilles on the dock for several hours
iAith the artwork before he could locate a vehicle to drive several hours to Cannes Thankfully
Braunstein's personal camera man Laurent Malachi had a cousin who happened to live near
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Marseilles who made arrangements to get the artwork and Nicolosi off the ship and to Cannes
Nicolosi contributed several hundred dollars to secure transportation to Cannes
103 Nicolosi arrived in Cannes on or about May 10 2007 After Nicolosi arrived in
Cannes he learned that no one had made arrangements for a place for Nicolosi to stay Nicolosi
had to locate and pay for his accommodations and a room for the artwork for 7 days During the
remaining days of the Cannes Film Festival Nicolosi resided in cramped studio apartment which
was being used as storage for the 60 original autographed Nicolosi portraits which SFAC sent to
Cannes aboard Cunard's QM2 This make shift storage facility was a far cry from the luxurious
Villa on Promenade de la Croisette near the Carlton Hotel, which SFAC used to induce Nicolosi
to attend the grand SFAC gala in Cannes which never occurred
104 When it became abundantly clear that there would be no SFAC Art exhibit at The
Cannes Film Festival Nicolosi left Cannes a few days early on or about May 22 2007 At the
time of Nicolosi's departure Locascio and Russell had long since gone back to America and all
of the members of the Braunstein family were en route to a friend's wedding in Cairo Egypt
Nicolosi paid approximately 5000 for expenses on the trip after disembarking the QM2 and left
stranded • on the dock in Marseilles These expenses included the cost of food lodging
transportation of the artwork car rental transportation of Nicolosi cellular communication
between him and the art director for safe passage of the artwork internet accessibility etc
105 After arriving in Cannes Nicolosi was told he was going to attend a grand gala
and SFAC Art Exhibit in Cannes much like their exhibit in Chicazo On numerous occasions
SFAC assured Nicolosi that they had made all of the arrangements in registering him for
credentials to attend the Cannes Film Festival There was no exhibit at Cannes and Defendants
did not obtain entry or admission for Nicolosi to the Cannes Film Festival Out of the entire 12
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day period which Nicolosi was stranded in Cannes he was unable to gain access the Film
Festival and literally spent less than a few hours in total with the Defendants
106 Noticeably and suspiciously absent from the Cannes Film Festival was Brian
O'Connor More troubling is the fact that despite the effort of Brian O'Connor to publish a press
release prior to embarking on QM 2's transatlantic crossing stating that an exhibit would occur at
Cannes prior to sailing to Europe and despite the fact that Brain O'Connor personally informed
numerous passengers aboard the Queen Mary 2 that there was going to be an exhibit and lavish
celebrity Gala in Cannes that on May II 2007 O'Connor wrote an email to a frequent VIP
Cunard passenger who wanted to attend the Cannes event In O'Connor's email to that VIP
Cunard passenger he purposely avoided responding to the passengers request to attend the
Cannes event O'Connor disingenuously informed the passenger that "plans for [the
SFAC] display at the Century Cannes venue are still be [sic] sorted out so I do not have much
to share on that front" See Exhibit 30 This email was only a few days before Cunard's
SFAC Art Exhibit at the Cannes Film Festival which never occurred
107 On or about May 19 2007 approximately 6 to 8 of the 60 SFAC portraits were
hung up above the cocktail bar for less than a few hours at The Century Club in Cannes The
portraits were subsequently taken down as directed by a member management at The Century
Club and left on a wet floor in an unsecured area in an unlocked back room and that brief time
of a few portraits hanging above the bar was the extent of Cunard's grand SFAC gala at The
Cannes Film Festival The other approximately 52 portraits never left the boxes they were
shipped in and were never on display the entire trip
108 Each and everyday during the cruise Nicolosi would give lectures in the Theatre
at Sea appeared in the mornings on the closed circuit television programming onboard the ship
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hosted a televised unveiling of the Cannes Film FestivalSFAC Collection for Entertainment
Tonight which never aired participated in forums with the art specialist working onboard the
ship presented art technique demonstrations for the passengers made appearances autographing
lithographs for patrons who had purchased his artwork and otherwise promoted SFAC. There
was absolutely no reason related to SFAC whatsoever for Dadigan or any member of her
entourage to have been present on the cruise and or in Cannes since there was not even a single
public event in either venue which promoted SFAC George Braunstein Laura Braunstein
George Braunstein's mother in law Maria Donelle Dadigan Michael Russell Steve Locascio
Steve Locascio's daughter Chandler Locascio and Chandler Locascio's babysitter Becky did
absolutely nothing on the cruise to benefit or promote Cunard or SFAC Dadigan and her brood
all partook in private chefprepared dining a lavish birthday party for Laura
BraunsteinAlcaldeBraun In fact in New York just before embarkation Dadigan realized that
the cabin which Cunard had assigned to her was not in the top level Ultra Deluxe Queen's
Grille section of the QM2 She threw such a fit that Cunard had no alternative but to give her
what she wanted George and Laura Braunstein were also upgraded to the highest level of luxury
and coincidentally Braunstein's motherin law was also seated in the Queen's Grille
Portrait of Joanna Lumnev
109 In approximately June of 2007 Locascio asked Nicolosi to create an additional
portrait for a Gala to be given by Prince Charles for the Prince's Trust on June 19 2007 in
London Locascio told Nicolosi that he would fly Nicolosi to London and then book passage for
him on the Queen Mary 2 to return to the United States Based upon the representations of
Locascio Nicolosi created a portrait of Joanna Lumney As the date of the Gala approached
Nicolosi's attorney in Chicago wrote numerous emails to Braunstein asking for specific details
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about the Gala and travel arrangements but Braunstein once again ignored the numerous emails
110 On June 4 2007 Locascio wrote an email to Annie L ycett a representative of the
Prince's trust and told her that Nicolosi would be present at the Gala See Exhibit 31
111 On June 14 2007 Nicolosi's attorney spoke to Locascio who restated that
Nicolosi would be attending the Gala in London but later that day Braunstein informed
Nicolosi's attorney that Nicolosi should just send the portrait via courier and that Nicolosi would
not be attending the Gala Nicolosi's attorney informed Braunstein that it would not be possible
for the portrait to be shipped to London in time for the Gala Ultimately Nicolosi and the
portrait did not attend the Gala
112 The portrait of Joanna Lumley ultimately sold for a realized price of 14400
during the online auction in September of 2007 Nicolosi never was reimbursed for creating the
portrait and the cost to create the portrait despite the fact that this portrait was not part of any
prior agreement
113 On June 15 2007 unbeknownst to Nicolosi a meeting of the Board of Directors
of SFAC occurred Present at this meeting were Maria Alcade Michael Russell George
Braunstein and Laura Braunstein At this meeting the Board of Directors amended the Bylaws
of RAC to allow SFAC to pay themselves monies The amendment states as follows Sec
Exhibits 28 last page
Sponsorship fees or other revenue received can be used to pay for advertising and
publicity efforts costs and reimbursements of NIRGCinepoint and for costs
regarding SFAC's office rent utilities parking storage miscellaneous expenses
attorney services and reimbursements of George Braunstein
114 On July 16 2007 NicoloSi received an email from Locascio informing him that
Julien's auction house would be conducting the online auction and that there would be an
opening night Gala at the Hollywood Museum scheduled for August 13 2007 in which all of
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Nicolosi's artwork created for SFAC would be on exhibit at the museum See Exhibit 32)
The email also stated that atnEkR was going to sponsor Gala "We are hopin g to have an
opening night Gala at the Hollywood Museum that night sponsored by amfAR The actual
closing night of the auction will be a combination Live and Internet auction on Ebay on
September 27th The auction will be on the Ebay Home Page beginning September 27th " See
Exhibit 32
115 A few days before the scheduled star studded Gala Nicolosi was told by Locascio
that the Gala was cancelled and they were just going to have the auction without a Gala
Nicolosi was told by Locascio that the Gala was cancelled due to the fact Dadigan had failed to
pay them
The 2007 Emmv Awards
116 The 2007 Emmy Awards show was scheduled for September 17 2007
On August 22 2007 Locascio asked Nicolosi in Chicago if he would be interested in creating
original portraits for the celebrity nominees for the 2007 Emmy Award show
117 In approximately August of 2007 Locascio and Nicolosi agreed that Nicolosi
would create portraits for the 2007 Emmy Awards show and that the portraits would be
auctioned off with the other portraits Nicolosi created and that the proceeds from the online
auction of the 2007 Emmy portraits would be split equally Based upon the agreement that the
proceeds would be split 5050 Nicolosi created 18 additional portraits
118 After entering the agreement with Locascio and creating the 18 additional
portraits Braunstein contacted Nicolosi and told him that the SFAC Board would not give him
50% of the online auction proceeds Braunstein told Nicolosi that the proceeds would have to be
split 75% to SFAC and 25% to Nicolosi
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119 On August 19, 2007 Dadigan wrote an email to Locascio Russell Braunstein
Laura Braunstein Brian O'Connor Nicolosi and others thanking them for all the help with
SFAC and thanking Cunard for its "generosity" See Exhibit 45 This email evidences that
despite the fact Dadigan was not officially a member of SFAC that she really was the one
making all the decisions and in control of all aspects of SFAC
120 Nicolosi attended the 2007 Emmy Awards show and the artwork was prominently
displayed and Nicolosi promoted SFAC
121 After the 2007 Emmy Award show Dadigan invited Nicolosi out for dinner to
thank him for all his work At dinner Dadigan asked Nicolosi to create three additional
portraits one of her one of the Hollywood Museum and one of Johnny Grant the honorary
Mayor of Hollywood and President of the Walk of Fame who allegedly is a close friend of
Dadigan's mother Eleanor Dadigan Dadigan then handed Nicolosi a disc with pictures of her
and Grant See Exhibit 39 Dadigan pointed out that in the photo of Johnny Grant he was
wearing his favorite Gucci tie given to him by Dadigan's mother Nicolosi told Dadigan that he
would not be creating any additional portraits before the SFAC online auction scheduled for
September 27 2007 Dadigan then told Nicolosi that she was on the Board of Directors of the
Hollywood Walk of Fame and could ensure that Nicolosi would be permitted to create portraits
of all the future inductees into the Hollywood Walk of Fame if he did the portraits Nicolosi
never did create the portraits
The SFAC Online Auction
122 An online auction was scheduled to occur on September 27 2007 Nicolosi was
told that a starstudded Gala was to occur at the Hollywood Museum and that AList celebrities
whOse portraits were created by Nicolosi would be in attendance A catalogue identifying the
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paintings that were part of the online auction was created See Exhibit 38 In approximately
August of 2007 Locascio emailed Nicolosi a final proof of the catalogue and asked him to
review and approve the contents Nicolosi carefully reviewed the entire gdf version of the
catalogue and reviewed and approved the contents See Exhibit 41 In the version of the
catalogue reviewed and approved by Nicolosi, the catalogue stated that amfAR was a beneficiary
of SFAC See Exhibit 41 Unbeknownst to NieoIasi after he reviewed and approved the
catalogue page 4 of catalogue that was sent out was altered by deleting the reference to arnfAR
Nicolosi did not discover this until 2009
123 Based on the fact that AList celebrities were attending the Gala Nicolosi decided
to attend the Gala at The Hollywood Museum instead of working to facilitate organizing a Gala
in Chicago in which Nicolosi could have obtained substantial local media coverage and 100s if
not 1000s of attendees On September 27 2007 it was an unseasonably hot evening and when
Nicolosi arrived at the Gala at The Hollywood Museum there were no AList Stars present and
probably less than 100 people were present in the dark nonair conditioned room A substantial
number of the attendees were employed by the auction service who were conducting the online
auction It is obvious that the gala accompanying the online auction was held at Hollywood
Museum and not the auction house or in Chicago because it benefited Dadigan and the
Hollywood Museum Although Nicolosi enjoyed the company and conversation with 1940's
MOM child star Margaret O'Brien and Rose Marie who played Sally Rogers on CBS's early
60's classic sitcom The Dick Van Dyke Show there was no wall of media nor was there a star
studded Alist Celebrity gala to promote the online auction as represented by Dadigan her
publicists and Braunstein
124 For a reason still unknown to Nicolosi On September 25 2007 just two days
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before the SFAC online auction Dadigan's publicist Locascio called Nicolosi's attorney in
Chicago and told her not to have Nicolosi fly out to Los Angeles and that Nicolosi would not be
welcomed to attend the online auction Gala at The Hollywood Museum Locascio also warned
that Nicolosi's guests who were also flying into Los Angeles from all over the world to attend
the Gala would not be allowed to attend either Further Locascio threatened that if Nicolosi
were to show up at the online auction Gala at The Hollywood Museum Locascio would call the
police and Locascio would destroy Nicolosi's reputation and the reputation of his attorney in
Chicago
125 On September 25 2007 Nicolosi received a call from Dadigan herself and she left
a voicemail Nicolosi returned the call and Dadigan asked when Nicolosi would drop offthe
artwork Nicolosi told her what Locascio had said earlier that day and she said she makes the
decision of who comes and goes not Locascio
126 On or about September 26 2007 the internal battles with SFAC had escalated
and Nicolosi was informed by his Chicago counsel that Braunstein had called and said that there
was a screaming match happening behind the scenes between the various factions of SFAC
Braunstein then told Nicolosi's attorney that he would go in front of the national news cameras
and begin his negative but truthful publicity against Nicolosi immediately unless a deal can be
reached today Braunstein continued with his roguish tirade of intimidation tactics by making
false statements that there are many camera crews that have already confirmed attendance to the
auction In one of his emails to Nicolosi's attorney in Chicago Braunstein made representations
that there was an enormous amount of media which had already confirmed to be present to cover
the starstudded Alist celebrity Gala at The Hollywood Museum on September 27'2007 As per
Braunstein's written correspondence he then listed some of the media who had already
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confirmed to be at the Gala by name including Entertainment Tonight The Insider The
Auction Network Art and Living as well as all the local Los Angeles Television stations and
print media journalists From all around the world including the LA Times Hollywood Reporter
AP Reuters etc Based on Braunstein's profound misrepresentation of the truth Nicolosi
ultimately attended the gala and when he arrived there were none of the aforementioned media
present at The Hollywood Museum and certainly no Alist celebrities either
127 On or about September 27 2007 at approximately 900am Nicolosi met with
Dadigan Darren Julien Martin Nolan and Braunstein at Mel's Diner and a document entitled
Sponsorship Agreement Amendment was executed See Exhibit 34
128 On September 27 2007 an online auction was held and the portraits created by
Nicolosi were sold for a total of 175200
After the Online Auction
129 After the auction Nicolosi sought information pertaining to SFAC and the monies
owed to him On November 8 2007 at 321 pm CST Nicolosi received an "auction report'
which stated See Exhibit 35
Hi Nicolosi
George asked me to forward you this for your review
STARS FOR A CAUSE
CHARITY AUCTION REPORT
Amount paid from Auction Proceeds 11900000
Nicolosi Gross Sales 2900300
Less 25% of Tech support of 214480 55193
Net due to Nicolosi 2845107
Sub Total 9045393
Less fee returned to Salon City 1000000
Sub Total 8045393
Check to The Friends of The Prince's Trust 4000000
Check to The Hollywood Museum 4000000
Balance 45300
Best
Laura Alcalde
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Law Offices of George G Braunstein
11755 Wilshire Blvd Suite 2150
Los Angeles CA 90025
130 On November 28 2007 Braunstein wrote to Nicolosi in Chicago and stated that
"The charity has revised the numbers and prepared a final accounting which is different from the
draft and which will be sent to you with your check Please destroy the draft accounting and do
not circulate it Furthermore you are not authorized to disclose any fmancial information about
Stars for a Cause" See Exhibit 36
131 Nicolosi never got the final accounting nor the promised check for the actual
amount owed under the agreements
132 Nicolosi paid approximately 55000 in attorney fees during all relevant times
133 On November 12 2007 Braunstein left a voice mail on Nicolosi's phone in
Chicago In the voicemail Braunstein admitted that he lied to Cunard about the agreement
SFAC had with Nicolosi and misled Nicolosi by failing to disclose that he was the actual charity
not just its attorney when he stated
1li it's George I got your email you know something else has actually come up that's
substantially troubling to me here in Lbs An geles and that is I spoke to Brian O'Connor Cunard
to tell him what was going on and He blew a gasket when 1 told him we were giving potentially
a third of the auction proceeds to you and he said that he said that he had represented to Cunard
that this was you know an option for charity and that they felt that they were not told that a third
of these proceeds would be going to you personally and not for charity and uh it's gonna he said
it going to he a big problem with Cunard and with everybody involved on the inside because he
says you had evidently made some representations that you were contributing your work um I
certainly made those representations as you know I mean I didn't take anything personally I put
in a hundred thousand dollars of legal work over a year's time over this stupid thing and they're
just totally freaked out they just said you can't do it it's not right we didn't get into this to
promote this so that Nicolosi could walk away with thirty thousand dollars I mean they're
hopping mad so give me a call and we can talk about it Bye
134 On November 13 2007 Braunstein left another voicemail for Nicolosi on his
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Case 109cv03011 Document 1 Filed 05192009 Page 50 of 75
phone in Chicago In this voicemail Braunstein admits that he conned Cunard into donating
money to SFAC for "trips" and "parties" that did not occur when he stated
lli it's George listen I got a big problem with Cunard line they are telling me in no uncertain
terms that they did not do all this promotion to benefit you and I got a serious problem on my
hands here so please give me a call and let me see what we can to sort this out you know I had
to do what I had to do to get the auction to go ahead I just had no anticipation that this was going
to be that these people were gonna get upset they said that they spent too much money on trips
to Europe and promotions and supporting us in Cannes and all the parties they gave and
underwrote and things like this to provide it to be to your benefit and as it turns out you're
getting about a third of the proceeds so give me a call so we can discuss it
135 On November 16 2007 Braunstein left another voicemail on Nicolosi's phone in
Chicago In this voicemail Braunstein admits that Cunard "dropped all this money" in Cannes
paid for the trip on the Queen Mary 2 and unbelievably paid for Braunstein's apartment in
Cannes which upon information and belief cost between 35000 to 50000 when he stated
Hi it's George look I got your e mail and you're an extremely intelligent highly educated
licensed doctor you're a bright guy you knew what you were doing when you had those paintings
and you knew the barrel 1 was over and you know your lawyer knew it too and I mean absent
going into some sort of Donnybrook with the police and some sort of insanity you know 1
begrudgingly reached an agreement which has now created a disaster for me here Cunard is not
accepting the fact that they did all this promotion in Cannes where they dropped all that money
to support our venture there the boat trip and all the other things that they put in to support a
payment like that to you it's a problem and I always knew it was going to be a problem that's
why I dreaded the whole situation and now it's a problem that's going to get to be a bigger
problem so what I strongly suggest —cause otherwise I'm going to get put into some crummy
situation here and we're going to be like talking about all this in front of some third party or
arbitrator or worse it will get into the press what I suggest we do and it's not a compromise that
you like or that 1 like is what 1 su ggest you do is you know give me ten thousand dollars from
your share which give to the princess trust which I'll give to go toward the princess trust
you'll wind up with around 18 or 19 whatever that number is and then sell that to them and I
won't have this horror story on my hands otherwise I just haVe a tough situation and I'm forced
with having to deal with it in ways that 1 don't want to do So just give me a call so that we can
just talk about it man to man and get this thing resolved It's a very big problem it's not some
simple problem It's not for me I didn't get a penny I worked for a year and did all this work I
didn't get a dime for it I mean I got my apartment paid for in Cannes you know kit give me a
call today we've got to resolve it I don't want to do it in an arbitrary fashion or in some way
that's going to you know create a horror story that you know we're all going to meet in some
other form sorting it out so give me a call so we can get this worked out 3109144999 or cell
3105612671 or home 3104763752
I think if you will put ten back into the pot I can uh that will give you close to twenty that'll give
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you like 18 or 19 thousand and I can give that to the charity and I think that will get them to
back off and keep them from calling foul
136 In approximately the Spring of 2008 Nicolosi called Brian O'Connor and asked
him why Cunard was directing Braunstein not to pay Nicolosi as Braunstein had indicated in his
correspondence with Nicolosi and his counsel Nicolosi asked O'Connor to enlighten him as to
the basis which he andior Cunard were preventing SFAC frompaying Nicolosi Brain O'Connor
told Nicolosi that he had not raised any concerns with Braunstein about Nicolosi receiving
monies and was not prohibiting SFAC from paying Nicolosi and then strangely and suspiciously
asked Nicolosi if he had anything in writing pertaining to the subject matter Brian O'Connor
ended the conversation by telling Nicolosi that he would speak to Braunstein about the matter
and then he would call Nicolosi back Nicolosi never received a call from Brian O'Connor
137 According to the 2007 Income Tax Return of SFAC filed on November 19 2008
the gross revenue received was 225619 See Exhibit 28 page 1 The 2007 IRS form 990 for
SFAC which was personally signed by Braunstein under penalties of perjury tax return states that
SFAC paid fees to Russell's company in the amount of 39492 and the 2006 tax return states
that the entire amount of gross revenue received by SFAC 20000 was paid to Russell's
company See Exhibit 28 statement 9 and Exhibit 33 statement 5 The 2007 tax return also
states that SFAC paid 2882 for a telephone bill when the phone number for SFAC is the same
phone number to Braunstein's law office paid 4050 for occupancy when there was no need for
an office and the office address for SFAC is Braunstein's law office paid 4979 for
entertainment 1090 for auto expense 2598 for photographs 15614 for postage and
shipping and paid 30000 to Dadigan through The Hollywood Museum See Exhibit 28 page
2 and statement 2
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138 Noticeably absent from the 2007 IRS form 990 tax return of SFAC which eras
personally signed by Braunstein under penalties of perjury is the receipt of any monies from
Cunard in May of 2007 or that certain directors and family and friends of directors received
benefits as a result of their involvement with SFAC despite the admissions made by Braunstein
in the voicemails in paragraphs 133135 that Cunard provided free cruises to the individuals in
paragraphs 100 and 101 provided monies for the lavish villa Braunstein stayed at with his family
in Cannes and provided other monies or benefits provided by Cunard
139 In the end the only donation made by SFAC to a legitimate charity was 60000
to the Prince's Trust.
140 Dadigan is the ringleader of a corrupt and multifaceted scheme of shell charities
and alleged non for profit organizations She and the members of her syndicate manipulate their
positions of wealth and influence to take advantage of the trust of unsuspecting artists and the
public at large The chicanery perpetrated by this group of individuals who are associated with
these dubious charities manufactures false "truths" in order to benefit their own selfish and
greedy ambitions To insulate themselves from public scrutiny Dadigan's nefarious cabal uses
home grown publicist to spin and distort the truth and a lawyer friend who refers to himself as
the consigliere On Braunstein's Law Firm website he boasts that "Clients seek his business and
legal advice as well as his career guidance as their consigliere" According to the Merriam
Webster definition of consigliere is "the chief advisor or aide to a Mafia leader often ironically
applied to any highranking aide" In the modem sense of the word consigliere is an advisor to a
powerful underworld boss or leader of a notorious crime family or syndicate
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Count I
Nicolosi's claim for Conspiracy against Dadigan Locascio
Russell The Michael Russell Grotto Braunstein Laura Braunstein The Hollywood
Museum and SFAC
1140 Nicolosi realleges and incorporates paragraphs I through 140 of the introduction
as paragraphs 1 through 140 of Count I
141 The coconspirators are Dadigan Russell Locascio The Michael Russell Group
Braunstein Laura Braunstein The Hollywood IVIuseurn and SFAC
142 The object of the conspiracy was use the positions of wealth and influence along
with the professional skills of the defendants to perpetrate a corrupt multifaceted scheme to use
charities such as SFAC The Hollywood Museum The Marion Seabury Living Trust and The
Jose Iturbi Foundation under the guise of raising monies for charitable causes when in fact the
real goal was to reap personal gains for themselves at the expense of Nicolosi and others and to
defraud the public at large The defendants conspired to dupe Nicolosi to unwittingly become
involved with the defendants mutifacted wide ranging scheme to help the defendants obtain
their unlawful immoral and wrongful goal of personally enriching themselves by obtaining
monies free worldwide travel entry into glamorous celebrity Hollywood events and parties and
other unknown benefits to the detriment of Nicolosi the charitable entities they purported to be
supporting through unlawful and wrongful means and the public at large
143 Dadigan acted in furtherance of the conspiracy by her actions and that of her
publicists Locascio Russell and the Michael Russell Group and her longtime personal friend
and attorney Braunstein by making false statements to Nicolosi and others to induce Nicolosi and
others to provide goods services promotional efforts and other benefits and by her involvement
in the other fraudulent unlawful and wrongful activities described above The wrongful actions
of Dadigan or that Dadigan is responsible for include but are not limited to:
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Case 109cv03011 Document 1 Filed 05192009 Page 54 of 75
a The false statement that she had an impeccable reputation in the entertainment
business and fundraising circles as alleged in paragraphs 27 and 28
b That Nicolosi would be attending all of the award shows that Dadigan and
her publicists individually named as listed in paragraphs 32 33 34 and 37
c The false statements in paragraphs 3234 37 38 49 53 6062 67 6874 89 90
92 96 99 101 105 109 114 117 118 122 123 126 133135
d That amfAR The Martin Scorcese Film Foundation and The Grammy Foundation
were involved with SFAC;
e That Nicolosi should create a website to handle the traffic as a result having a link
to libay and ET
f making false representations to Salon City as described in paragraph 49
g0 By falsely informing Nicolosi that he would have an art exhibit in California as
described in paragraph 60
h By making the false statements as described in paragraphs 6770
i By failing to disclose that a case had been filed against Mario Magro and the
allegations contained in the complaint as described in paragraphs 6972
j by making the false statements pertaining to the Cannes Film Festival as
described in paragraphs 91 to 108
k by upon information and belief accepting benefits provided by Cunard including
but not limited to a free cruise on the Queen Mary 2
1 by making the false statements to Nicolosi to cause him to create a portrait of
Joanna Lumney as described in paragraphs 109111
M by making threats to Nicolosi that he could not attend the online auction
n by accepting monies from SFAC for no good and legitimate reason
o by upon information and belief making false statements in the tax returns filed
by The Hollywood Museum the Jose Itrubi Foundation and the Marion Seabury
Living Trust to obtain monies and benefits that should not have been paid and
P other wrongful actions
144 Russell acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by his involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
145 Locascie acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by his involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
146 The Michael Russell Group acted in furtherance of the conspiracy by making
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Case 109cv03011 Document 1 Filed 05192009 Page 55 of 75
false statements to Nicolosi and others and by its involvement in the other fraudulent unlawful
and wrongful activities described above in the paragraphs of the complaint including but not
limited to paragraph 143
147 Braunstein acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by his involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
148 Laura Braunstein acted in furtherance of the conspiracy by making false
statements to Nicolosi and others and by her involvement in the other fraudulent unlawful and
wrongful activities described above in the paragraphs of the complaint including but not limited
to paragraph 143
149 The Hollywood Museum acted in furtherance of the conspiracy by making false
statements to Nicolosi and others and by its involvement in the other fraudulent unlawful and
wrongful activities described above in the paragraphs of the complaint including but not limited
to paragraph 143
150 SFAC acted in furtherance of the conspiracy by making false statements to
Nicolosi and others and by its involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 143
151 The actions of the defendants were unlawful improper wrongful or otherwise
actionable and caused harm to Nicolosi and others who provided goods services promotional
efforts and other benefits based on the false and misleading statements and wrongful conduct of
the defendants
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152 Had Nicolosi been aware of the defendants true motive or the nefarious activities
of the defendants Nicolosi would not have associated with the defendants nor would he have
created the artwork or promoted the interests of the defendants and the entities they controlled or
otherwise been associated with the defendants
153 As a result of the conduct of defendants Nicolosi suffered damage The damages
include but are not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
e No link to ET promoting Nicolosi which was worth according to the defendants at
least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi which
is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
500000
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Enemy Awards is 30000030 x 10000 the value
of the portrait of Joanna Ltunney is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
5100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
i The loss of time and other out of pocket expenses which includes but is not
limited to 25000 to create the Biographia approximately 40000 to create a
website approximately 55000 in attorney fees 198000 in costs associated
with the creation of the artwork thousands in costs associated with transporting
the artwork approximately 10000 in costs incurred by Nicolosi traveling and
promoting the defendants and their causes and the loss of time expended by
Nicolosi
56
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j The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi
k The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi
m The 2200 Nicolosi paid to Locascio for the tickets for the 2006 Emmy Award
show and
n Other damages
154 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egregious behavior in
the future and based on the defendants' history of misusing various charitable causes to
personally enrich themselves to the detriment of Nicolosi and others they were supposedly
helping
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to
be found due by a jury against the defendants jointly and severally and for further relief that is
just and equitable in the circumstances
Count 11
Nicolosi's Claim for Aiding and Abetting against Dadigan Locascio Russell The Michael
Russell Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
155 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 155 of Count II
156 Dadigan Locascio Russell The Michael Russell Group Braunstein Laura
Braunstein The Hollywood Museum and SFAC aided and abetted one another in carrying out a
conspiracy perpetrating a fraud upon Nicolosi and others and in the other wrongful action
described above
157 Dadigan provided substantial assistance by her actions and that of her publicists
Locascio Russell and the Michael Russell Group and her longtime personal friend and attorney
Braunstein by making false statements to Nicolosi and others to induce Nicolosi and others to
57
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provide goods services promotional efforts and other benefits and by her involvement in the
other fraudulent unlawful and wrongful activities described above The wrongful actions of
Dadigan or that Dadigan is responsible for include but are not limited to
a The false statement that she had an impeccable reputation in the entertainment
business and fundraising circles as alleged in paragraphs 27 and 28
b That Nicolosi would be attending all of the award shows that Dadigan and
her publicists individually named as listed in paragraphs 32 33 34 and 37
c The false statements in paragraphs 3234 37 38 49 53 6062 67 6874 89 90
92 96 99 101 105 109 114 117 118 122 123 126 133135
d That amfAR The Martin Seorcese Film Foundation and The Grammy Foundation
were involved with SFAC;
e That Nicolosi should create a website to handle the traffic as a result having a link
to Ebay and ET
f making false representations to Salon City as described in paragraph 49
g By falsely informing Nicolosi that he would have an art exhibit in California as
described in paragraph 60
h By making the false statements as described in paragraphs 6770
i By failing to disclose that a case had been filed against Mario Magro and the
allegations contained in the complaint as described in paragraphs 6972
j by making the false statements pertaining to the Cannes Film Festival as
described in paragraphs 91 to 108
k by upon information and belief accepting benefits provided by Cunard including
but not limited to a free cruise on the Queen Mary 2
1 by making the false statements to Nicolosi to cause him to create a portrait of
Joanna Lunmey as described in paragraphs 109111
m by making threats to Nicolosi that he could not attend the online auction
n by accepting monies from SFAC for no good and legitimate reason
o by upon information and belief making false statements in the tax returns tiled
by The Hollywood Museum the Jose Ttrubi Foundation and the Marion Seabury
Living Trust to obtain monies and benefits that should not have been paid and
P other wrongful actions
158 Russell provided substantial assistance by making false statements to Nicolosi and
others and by his involvement in the other fraudulent unlawful and wrongful activities described
above in the paragraphs of the complaint including but not limited to paragraph 157
159 Locascio provided substantial conspiracy by making false statements to Nicolosi
and others and by its involvement in the other fraudulent unlawful and wrongful activities
described above in the paragraphs of the complaint including but not limited to paragraph 157
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160 The Michael Russell Group provided substantial assistance assistance by making
false statements to Nicolosi and others and by its involvement in the other fraudulent unlawful
and wrongful activities described above in the paragraphs of the complaint including but not
limited to paragraph 157
161 Braunstein provided substantial assistance by by making false statements to
Nicolosi and others and by its involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 157
162 Laura Braunstein provided substantial assistance by making false statements to
Nicolosi and others and by its involvement in the other fraudulent unlawful and wrongful
activities described above in the paragraphs of the complaint including but not limited to
paragraph 157
163 The Hollywood Museum provided substantial assistance by making false
statements to Nicolosi and others and by its involvement in the other fraudulent unlawful and
wrongful activities described above in the paragraphs of the complaint including but not limited
to paragraph 157
164 SFAC provided substantial assistance by making false statements to Nicolosi and
others and by its involvement in the other fraudulent unlawful and wrongful activities described
above in the paragraphs of the complaint including but not limited to paragraph 157
165 The actions of the defendants were unlawful improper wrongful or otherwise
actionable and caused harm to Nicolosi and others who provided goods services promotional
efforts and other benefits based on the false and misleading statements and wrongful conduct of
the defendants
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166 Had Nicolosi been aware of the defendants true motive or the nefarious activities
Nicolosi would not have associated with the defendants nor would he have created the artwork or
promoted the interests of the defendants and the entities they controlled or otherwise been
associated with the defendants
167 Nicolosi suffered damage as a result of the wrongful conduct of the defendants
The damages include but are not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants at
least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi which
is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f El' did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 30000030 x 10000 the value
of the portrait of Joanna Lunmey is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
5100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
i The loss of time and other out of pocket expenses which includes but is not
limited to 25,000 to create the Biographia approximately 40000 to create a
website approximately 55000 in attorney fees 75000 in costs associated with
the creation of the artwork thousands in costs associated with transporting the
artwork approximately 10000 in costs incurred by Nicolosi traveling and
promoting the defendants and their causes and the loss of time expended by
Nicolosi
60
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j The failure to have anafAR Martin Scorcese Film Foundation and the Grambay
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi and
k. The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi
m The 2200 Nicolosi paid to Loeascio for the tickets for the 2006 Fmmy Award
show and
n Other damages
168 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants froth enga ging such egegious behavior in
the future and based on the defendants' history of misusing various charitable causes to
personally enrich themselves to the detriment of Nicolosi and others they were supposedly
helping •
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against defendants jointly and severally and for further relief that is just and
equitable in the circumstances
Count III
Nicolosi's Claim for Fraud in Inducement against
Dadigan Locascio Russell The Michael Russell Group Braunstein The Hollywood
Museum and SFAC
169 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 169 Count HI
170 The Defendants intentionally andor negligently made numerous false statements
to Nicolosi with the intent that Nicolosi rely on the false statements and to enter various
agreements with the Defendants or to provide goods and services to the defendants or entities
controlled by them or otherwise provide benefits to the defendants and the entities they
controlled or to cause Nicolosi to become associated with them and to promote them and their
interests
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171 The false statements are identified in paragraphs 143 and 157 which are
incorporated by reference as if set forth as paragraph 171
172 The false statements were material to Nieolosi's decision to become involved
with the defendants to expend enormous amounts of time and energy creating artwork and
promoting theinterests of defendants andor entities they controlled and to entering agreements
with the Defendants
173 Nicolosi relied on the false statements made by the defendants when he decided to
become involved with the defendants when he created original portraits promoted SFAC and
the interests of the defendants when he provided other goods and services when he spent
enormous amounts of time and monies and when he provided the goodwill of his name to
defendants
174 Nicolosi would not have agreed to become involved with the defendants would
not have created original portraits would not have promoted the defendants and the interests of
the defendants would not have provided goods and services to the defendants would not have
spent time and monies would not have provided the goodwill of his name to defendants or
otherwise been associated with Defendants had he known the statements were false
175 Nicolosi suffered damage as a result of the wrongful conduct of defendants in that
he was duped into becoming involved with the Defendants wasted his time effort money and
he suffered other damages including but not limited to
The failure to attend the Hollywood Film Festival Screen Actor Guild
Awards The Academy of Motion Pictures Arts and Science luncheon the
Sundance Film Festival and the Grammy Awards Award shows According
to the sworn testimony of Dadigan the value of such publicity and other
benefits is worth millions and therefore Nicolosi suffered millions in
damages as a result of not attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the
defendants at least 65 million See Exhibit 8
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c No link to ET promoting Nicolosi which was worth according to the
defendants at least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC
exceeds 1 million we need to figure out number portraits times fair market
value
h The fair market value of the other artwork provided by Nicolosi and stolen
by defendants is at least 429360 which is calculated as follows duplicate
originals Nicolosi created for the 2006 Emmy Awards is 30000030 x
10000 the value of the portrait of Joanna Lumney is 15000 the value of
the portrait of Patricia Neal is 25000 the value of the painting of 36" x 60"
painting of the Queen Mary 2 is 50000 the value of the 24" x 36" painting
of the Queen Mary 2 is 5100 the value of the lithographs is 30000 and
the portraits of George Clooney sold for 3360 Matt Damon 900 Angelina
Jolie 600 and the SFAC logo 2400
i The loss of time and other out of pocket expenses which includes but is not
limited to 25,000 to create the Biographia approximately 40000 to create
a website approximately 55000 in attorney fees 75000 in costs
associated with the creation of the artwork thousands in costs associated
with transporting the artwork approximately 10000 in costs incurred by
Nicolosi traveling and promoting the defendants and their causes and the loss
of time expended by Nicolosi
j The failure to have amfAR Martin Scorcese Film Foundation and the
Grammy Foundation involved and associated with Nicolosi which is worth
millions in publicity and other benetits to Nicolosi and
k The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi and
The 2200 Nicolosi paid to Locascio for the tickets for the 2006 Enamy
Award show and
m Other damages
176 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egregious behavior in
the future and based on the defendants' history of misusing various charitable causes to
personally enrich themselves to the detriment of Nicolosi and others they were supposedly
helping
63
Case 109ov03011 Document 1 Filed 05192009 Page 64 of 75
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count IV
Nicolosi's claim for Breach of Contract against Dadigan Locascio Russell 13raunstein and
SFAC
177 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 177 of Count IV
178 Nicolosi entered an agreement with the Defendants in August of 2006 that is
evidenced by the writings attached as exhibits 8 and 10
179 The terms of the agreement are as stated in paragraphs 3238 and in Exhibits 8
and 10
180 Nicolosi performed all the obligations he owed pursuant to the terms of the
agreement because he created the original artwork, promoted SFAC and otherwise performed
181 SFAC breached the terms of the agreement in numerous ways including but not
limited to
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and 'the Grammys
b arnfAR' the Martin Scorsese Film Foundation and the Grammy Foundation were
not involved in anyway
c Sharpie had not agreed to pay a 375000 sponsorship fee and to purchase
600000 in ads on ET
d Ebay had not agreed to and did not pay a 250000 sponsorship fee it did not
agree to and did not provide an eight month promotion on the Ebay homepage and
did not agree to and did not purchase 1 million in ads on Entertainment Tonight
and
e Entertainment Tonight did not agree to and did not provide a link on its website
182 As a result of the breach of contract Nicolosi suffered damage
183 Nicolosi was damaged in that he did not receive what was promised which
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Case 109cv03011 Document 1 Filed 05192009 Page 65 of 75
includes but is not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundanee Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants
at least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 30000030 x 10000 the
value of the portrait of Joanna Lutnney is 15000 the value of the portrait of
Patricia Neal is 25000 the value of the painting of 36"x 60" painting of the
Queen Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary
2 is 5100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
The loss of time and other out of pocket expenses which includes but is not
limited to 25000 to create the Biographia approximately 40000 to create a
website approximately 55000 in attorney fees 75000 in costs associated with
the creation of the artwork thousands in costs associated with transporting the
artwork approximately 10000 in costs incurred by Nicolosi traveling and
promoting the defendants and their causes and the loss of time expended by
Nicolosi
j The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi and
k The unauthorized use of a trademark created by Nicolosi
1 The loss of reputation suffered by Nicolosi and
m Other damages
184 Dadigan should be personally liable for the Obligations owed under the written
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Case 109cv03011 Document 1 Filed 05192009 Page 66 of 75
agreement because Nicolosi always understood and believed that he and Dadigan were working
together and that the agreement to work together included a term that an entity would be formed
to operate their joint venture Any corporate formalities should be ignored based on Dadigan's
conduct the fact that no corporate entity existed at the time Nicolosi agreed to the initial terms
and substantially performed in August of 2006 the lack of adequate capital the lack of
complying with corporate formalities the fact that SFAC was her alter ego and formed for no
legitimate purpose other than to protect her from liability and for various other reasons the
corporate veil should be pierced
185 Braunstein should be personally liable for the obligations owed under the written
agreement because any corporate formalities should be ignored based on his conduct the fact
that no corporate entity existed at the time Nicolosi agreed to the initial terms and substantially
performed in August 2006 the lack of adequate capital the lack of complying with corporate
formalities the fact that SFAC was his alter ego and formed for no legitimate purpose other than
to protect him from liability and for various other reasons the corporate veil should be pierced
In addition Braunstein should be personally responsible for the obligations of SFAC to Nicolosi
because he was the CFO CEO and the attorney for SEAC
186 Russell should be personally liable for the obligations owed under the written
agreement because any corporate formalities should be ignored based on his conduct, the fact
that no corporate entity existed at the time Nicolosi agreed to the initial terms and substantially
performed the lack of adequate capital the lack of complying with corporate formalities the fact
that SFAC was his alter ego and fointed for no legitimate purpose other than to protect him from
liability and for various other reasons the corporate veil should be pierced In addition Russell
should be personallyliable because he was on the Board of Directors
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187 Locascio should be personally liable for the obligations owed under the written
agreement because any corporate formalities should be ignored based on his conduct the fact
that no corporate entity existed at the time Nicolosi agreed to the initial terms and substantially
performed in August of 2006 the lack of adequate capital the lack of complying with corporate
formalities the fact that SFAC was his alter ego and formed for no legitimate purpose other than
to protect him from liability and for various other reasons the corporate veil should be pierced
188 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egregious behavior in
the future based on the defendants history of misusing various charitable causes to personally
enrich themselves to the detriment of Nicolosi others and the charities they were supposedly
helping based on the fact that the breaches were tortious in nature as described in Counts I II
III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count V
Nicolosi's claim for Breach of Sponsorship Agreement against Dadigan Locascio Russell
Braunstein and SFAC
189 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 189 of Count V
190 On January 12 2007 Nicolosi entered an agreement with Defendants as stated in
paragraph 67 and Exhibit 14
191 Nicolosi perfoimed all the obligations owed under the agreement because he
created the original artwork promoted SFAC and otherwise performed
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192 SFAC breached the terms of the agreement in numerous ways including but not
limited to
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and The Grammys
b amfAR the Martin Scorsese Film Foundation and the Grammy Foundation were
not involved in anyway
c. Sharpie had not agreed to pay a 375000 sponsorship fee and to purchase
600000 in ads on ET
d Ebay had not agreed to pay a 250000 sponsorship fee it did not provide an eight
month promotion on the Ebay homepage and did not purchase 1 million in ads
on Entertainment Tonight and
e Entertainment Tonight did not agree and did not provide a link on its
website
193 As a result of the breach Nicolosi suffered dama ge in that he did not receive what
was promised includiiw but not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants at
least 15 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi which
is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
f ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
millions in publicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 3000003 x 10000 the value
of the portrait o ['Joanna Lumney is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
5100 the value of the lithographs is 30000 and the portraits of George
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Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC'
logo 2400 and
The loss of time and other out of pocket expenses which includes but is not
limited to approximately 55000 in attorney fees expended 75000 in costs
associated with the creation of the artwOrk thousands in costs associated with
transporting the artwork approximately 10000 in costs incurred by Nicolosi
traveling and promoting the defendants and their causes and the loss of time
expended by Nicolosi which amounts to
j The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi
194 Nicolosi realleges paragraphs 184187 of Count IV as if set forth fully herein as
paragraph 194
195 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious to deter defendants from engaging such egre gious behavior in
the future based on the defendants history of misusing various charitable causes to personally
enrich themselves to the detrlment of Nicolosi others and the charities they were supposedly
helping based on the fact that the breaches were tortious in nature as described in Counts I IT
III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count VI
Nicolosi's claim for Breach of Amendment
To Sponsorship Agreement against Dadigan Locascio Russell Braunstein and SFAC
196 Nicolosi rcalleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 196 of Count VI
197 On September 27 2007 the parties entered a written agreement as stated in
paragraph 127 and Exhibit 34
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198 Nicolosi perfboued all the obligations owed under the agreement because he
created all the portraits requested promoted SFAC attended the auction and otherwise
performed
199 SFAC breached the terms of the agreement in numerous ways including but not
limited to
a The charity campaign was not committed to attend and did not attend the
Hollywood Film Festival The Sundance Film Festival The Academy of Motion
Picture Award Show The Screen Actors Guild and The Grammys
b amfAR the Martin Scorsese Film Foundation and the Grammy Foundation were
not involved in anyway
c. Sharpie had not agreed to pay a 375000 sponsorship fee and to purchase
600000 in ads on ET
d Ebay had not agreed to pay a 250000 sponsorship fee it did not provide an eight
month promotion on the Ebay homepage and did not purchase 1 million in ads
on Entertainment Tonight and
e Entertainment Tonight did not azree and did not provide a link on its website and
Nicolosi was not paid any monies as identified in paragraphs 35 of the
Amendment and
b did not pay any monies to Nicolosi
200 As a result of the breach Nicolosi was damaged
201 As a result of the breach Nicolosi suffered damage in that he did not receive what
was promised including but not limited to
a The failure to attend the Hollywood Film Festival Screen Actor Guild Awards
The Academy of Motion Pictures Arts and Science luncheon the Sundance Film
Festival and the Grammy Awards Award shows According to the sworn
testimony of Dadigan the value of such publicity and other benefits is worth
millions and therefore Nicolosi suffered millions in damages as a result of not
attending the award shows •
b No link to Ebay promoting Nicolosi which was worth according to the defendants
at least 65 million See Exhibit 8
c No link to ET promoting Nicolosi which was worth according to the defendants at
least 35 million See Exhibit 8
d Ebay did not purchase 1 million in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
e Sharpie did not purchase 600000 in advertising on ET promoting Nicolosi
which is worth millions to Nicolosi
ET did not provide 20 minutes of airtime promoting Nicolosi which is worth
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millions inpublicity to Nicolosi
g The fair market value of Nicolosi artwork provided by Nicolosi to SFAC exceeds
1 million we need to figure out number portraits times fair market value
h The fair market value of the other artwork provided by Nicolosi and stolen by
defendants is at least 429360 which is calculated as follows duplicate originals
Nicolosi created for the 2006 Emmy Awards is 30000030 x 10000 the value
of the portrait o ['Joanna Lumney is 15000 the value of the portrait of Patricia
Neal is 25000 the value of the painting of 36" x 60" painting of the Queen
Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is
55100 the value of the lithographs is 30000 and the portraits of George
Clooney sold for 3360 Matt Damon 900 Angelina Jolie 600 and the SFAC
logo 2400
j The loss of time and other out of pocket expenses which includes but is not
limited to approximately 55000 in attorney fees expended 75000 in costs
associated with the creation of the artwork thousands in costs associated with
transporting the artwork approximately 10000 in costs incurred by Nicolosi
traveling and promoting the defendants and their causes and the loss of time
expended by Nicolosi which amounts to •
k The failure to have amfAR Martin Scorcese Film Foundation and the Grammy
Foundation involved and associated with Nicolosi which is worth millions in
publicity and other benefits to Nicolosi
1 The failure to receive the monies as identified in pargraphs 36 of the agreement
m Attorney fees; and
n Other damages
202 Nicolosi realleges paragraphs 184187 of Count IV as if set forth fully herein as
paragraph 202
203 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregiousto deter defendants from engaging such egregious behavior in
the future based on the defendants history of misusing various charitable causes to personally
enrich themselves to the detriment of Nicolosi others and the charities they were supposedly
helping based on the fact that the breaches were tortious in nature as described in Counts I IT
III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment his favor in an amount to be
found due by the jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
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Count VII
Nicolosi's claim for Unjust Enrichment against Dadigan Locascio Russell The Michael
Russell Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
204 Nicolosi realleges and incorporates paragraphs 1 through 140 of the introduction
as paragraph 204 of Count VII
205 The Defendants were unjustly enriched when they used Nicolosi's artwork effort
promotional activities and time of Nicolosi as well as his reputation to benefit themselves and
entities controlled by them
206 Nicolosi relied to his detriment on the false statements and other wrongful
conduct of the defendants by creating numerous portraits attending various Award shows
promoting the interests of the defendants and entities controlled by them traveling and otherwise
working to benefits the defendants
207 It would be unjust and unfair for the defendants to retain the benefits provided by
Nicolosi to the defendants
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount
found to be found due by a jury against the defendants jointly and severally and for further relief
that is just and equitable in the circumstances
Count VIII
Nicolosi's claim for Quantum rvIernit against Dadigan Locascio Russell The Michael
Russell Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
208 Nicolosi realleges paragraphs 1140 as if set forth fully herein as paragraph
209 Nicolosi provided valuable services and spent monies that inured to the benefit of
the Defendants
210 Nicolosi should be compensated for the reasonable value of the services he
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provided
211 It would be unjust and unfair for the defendants to keep the benefits of the
artwork and promotional efforts of Nicolosi to secure personal gain for defendants to the
detriment of Nicole si
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount
found to be by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count IX
Nicolosi's claim for conversion against Dadigan Locascio Russell The Michael Russell
Group Braunstein Laura Braunstein The Hollywood Museum and SFAC
212 Nicolosi realleges paragraphs 1140 as if set forth fully herein as paragraph 212
213 Nicolosi is the owner of 30 duplicate originals he created for the 2006 Emmy
Awards a portrait he created of Patricia Neal a portrait he created of Joanna Lumney the 36" x
60" painting of the Queen Mary 2 the 24" x 36" painting of the Queen Mary 2 25 lithographs
and the portraits he created for the Cannes Film Festival of George Clooney Matt Damon
Angelina Jolie and the SFAC logo
214 Nicolosi has the unconditional right to the property
215 Upon information and belief Dadigan andor Locascio andor Russell andor The
Michael Russell Group andor Braunstein andor Laura Braunstein andor The Hollywood
Museum andor SFAC has possession of the above property
216 Nicolosi has demanded return of the property but the defendants refuse to return
the property
217 The value of the duplicate originals Nicolosi Created for the 2006 Emmy Awards
is 30000030 x 10000 the value of the portrait of Joanna Ltunney is 15000 the value of
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the portrait of Patricia Neal is 25000 the value of the painting of 36" x 60" painting of the
Queen Mary 2 is 50000 the value of the 24" x 36" painting of the Queen Mary 2 is 5100
the value of the lithographs is 30000 and the portraits of George Clooney sold for 3360 Matt
Damon 900 Angelina Jolie 600 and the SFAS' logo 2400
218 Nicolosi has been damaged by the conversion of the above portraits The fair
market value of this property is at least 429 260
219 Punitive damages should also be assessed based on the willful malicious and
egregious conduct of the defendants and to deter the defendants from such behavior hl the future
WIIEREFORF Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendants jointly and severally and for further relief that is just
and equitable in the circumstances
Count X
Nieolosi's claim for Breach of Joint VenturePartnership Agreement against Dadigan
220 Nicolosi realleges paragraphs 1140 as if set forth fully herein as paragraph 220
221 In approximately August of 2006 Nicolosi and Dadigan formed a joint
venturepartnership in which Nicolosi would agree to create original artwork and do promotional
work and Dadigan and her agents would take care of the legal work publicity and organization
of operating an entity to raise monies for charities •
222 Dadiagn and Nicolosi also agreed that Dadigan may create an entity to operate the
joint venturepartnership
223 Nicolosi relied on the representations of Dadigan and the agreement and
performed all the obligations he owed under the agreement because he created original artwork
promoted the artwork and the interests of Dadigan and the charitable cause and otherwise
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performed
224 Dadigan breached the agreement because she did not perform all that was owed
under the agreement Nicolosi realleges paragraph 143 from Count If as if set forth fully herein
225 Nicolosi suffered damage in he did not receive what was promised Nicolosi
realleges pargraph 153 from Count I as if set forth fully herein
226 Punitive damages should be assessed because the actions of defendants were
willful malicious and egregious and a violation of the fiduciary duty Dadigan owed Nicolosi to
deter defendants from engaging such egregious behavior in the future based on the defendants
history of misusing various charitable causes to personally enrich themselves to the detriment of
Nicolosi others and the charities they were supposedly helping based on the fact that the
breaches were tortious in nature as described in Counts I II III and IX and for other reasons
WHEREFORE Nicolosi prays that a jury enter a judgment in his favor in an amount to be
found due by a jury against the defendant and for further relief that is just and equitable in the
circumstances.
DR JOSEPH NICOLOSI
By sJoseph T Gentleman
One of His Attorneys
Donald L Johnson (ARDC NO 1342460
Joseph T Gentleman ARDC NO 62411501
Julie A Boynton ARDC NO 6224529
Priya S Dadlani ARDC NO 6292644
33 North Dearborn Street
Suite 1401
Chicago Illinois 60602
312 2637000
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