Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_04-cv-01402/USCOURTS-cand-3_04-cv-01402-1/pdf.json

Nature of Suit Code: 370
Nature of Suit: Other Fraud
Cause of Action: 28:1331 Fed. Question

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JUDGMENT

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RICHARD M. GRANT, ESQ. (State Bar #55677) 

1040 Main Street, Suite 102 

Napa, CA 94559 

Telephone: (707) 224-4871 

Facsimile: (707)224-4855 

Attorney for Plaintiff 

 UNITED STATES DISTRICT COURT 

 NORTHERN DISTRICT OF CALIFORNIA 

 

ROBERT E. VENER 

Plaintiff, 

v. 

MATHEW SWARTZ, an individual, 

GREENTOWN FINANCIAL, INC., a 

Pennsylvania corporation, JOHN CLARKE, an 

individual, UNITED SPORTS 

Network, LLC, a Pennsylvania limited liablitly 

company, ADORNO & YOSS, P.A., a Florida 

professional association, and DOES 1-25, 

inclusive; 

Defendants. 

_______________________________________/ 

Case No. C 04-1402 SI 

FINDINGS AND ORDER 

DATE: August 26, 2005 

TIME: 9:00 A.M. 

The application of Plaintiff ROBERT E. VENER came on for hearing on August 26, 

2005. The Court having read the pleadings, declarations, exhibits and other evidence 

presented by Plaintiff, and good cause appearing, the following Findings and Order are 

made. 

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 Case 3:04-cv-01402-SI Document 34 Filed 08/30/05 Page 1 of 3
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JUDGMENT

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FINDINGS OF FACT

1. Defendants John Clarke, United Sports Network LLC, Mathew Swartz and 

Greentown Financial, Inc. have not appeared in this action and have not responded to 

the Complaint within the time permitted by law. Default was entered as to said 

Defendants on August 3, 2005. 

2. Plaintiff ROBERT E. VENER is an individual residing in the State of 

California. Plaintiff was the incorporator of CapitalWorks Financial Corporation, a 

California corporation. Plaintiff has been assigned all of the rights and interests of any 

and all claims and causes of action against defendants Mathew Swartz, Greentown 

Financial, Inc., John Clarke and United Sports Network by CapitalWorks Financial 

Corporation. 

3. On or about April 17, 2003 defendant Greentown and CapitalWorks entered 

into a written contract whereby CapitalWorks was to receive a loan from Greentown in 

the sum of $40,000,000.00. 

4. As an inducement to enter into said contract, CapitalWorks received two 

documents supposedly showing that Greentown was a legitimate source of funds and 

vouching for their credibility. Said documents “disclosed” that Mathew Swartz and 

United Sports Network received a loan in the amount of $100,000,000.00 from “Atlantic 

Bank”. Mathew Swartz was listed as Vice President of Finance and John Clarke as the 

Main Shareholder and Director of United Sports Network. 

5. Following April 17, 2003, and pursuant to the instructions of Swartz, 

CapitalWorks forwarded to defendant Greentown the sum of $5,000.00 as partial 

payment of a “due diligence fee”. 

6. CapitalWorks never received any monies or funding whatsoever from 

defendants Greentown or Swartz. Additionally, although repeatedly asked to return the 

due diligence fee, said defendants failed and refused to do so. 

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JUDGMENT

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7. Plaintiff subsequently discovered that the document sent to CapitalWorks 

stating that “Atlantic Bank” had extended a loan in the sum of $100,000,000. to United 

Sports Network was false and a forgery and that, in fact, there was no such transaction. 

 8. Because CapitalWorks never received any funds whatsoever from 

Greentown, and because it relied on defendants’ representations for many months, 

CapitalWorks was never able to carry out its business plan (purchasing healthcare 

receivables) and was never able to do any business or make any profits. Because of the 

fraud of all said defendants, CapitalWorks sustained lost profits of at least $100,000.00. 

9. At the time said representations were made they were false and Defendants 

knew them to be false. The true facts were that Swartz, Greentown, Clarke and United 

Sports Network conspired to deprive CapitalWorks of its monies and never intended to 

loan any amounts whatsoever to CapitalWorks. 

 10. In doing the acts herein alleged, Defendants acted with oppression, fraud and 

malice, and acted with a conscious disregard of the rights of others and with the intent to 

deprive Plaintiff of property or otherwise cause injury. 

11. Plaintiff has incurred costs for filing and service of process. 

 

ORDER

Judgment be granted to Plaintiff and against Defendants MATHEW SWARTZ, 

GREENTOWN FINANCIAL, INC, JOHN CLARKE and UNITED SPORTS 

NETWORK LLC in the amount of $100,000.00 plus punitive damages in the sum of 

$100,000.00 plus costs, jointly and severally. 

Dated: _____________,2005. __________________________ 

HON. SUSAN ILLSTON 

Judge of the District Court 

Case 3:04-cv-01402-SI Document 33 Filed 08/26/2005 Page 3 of 3

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

GRANTED

Judge Susan Illston

Case 3:04-cv-01402-SI Document 34 Filed 08/30/05 Page 3 of 3