Opinion ID: 1195813
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: In 2004, Bhatia was one of several defendants sued in federal court in Texas. The plaintiff was an entity named Inderra Houston, L.P. (Inderra), which was formed to build a real estate project in Houston, Texas. Its principals, Ralph Abercia, Sr. and Ralph Abercia, Jr., sought sources of financing for the project and eventually met with representatives of Wolfe & Turner and Sherwin & Noble, including Bhatia. Bhatia was in charge of both entities, and represented that Sherwin & Noble could fund a $105 million loan upon Inderra's payment of a $1.575 million loan commitment fee. Although the Abercias agreed, and paid the fee, Inderra never received the loan proceeds. It then filed suit against Bhatia and eight other defendants for fraud, negligence, and breach of fiduciary duty. In the midst of discovery, Inderra filed a motion for voluntary dismissal of the action. The court eventually dismissed Bhatia and his co-defendants with prejudice. While the civil proceeding was pending, the government filed a criminal complaint against Bhatia and three other individuals allegedly involved in the Inderra transaction. They were ultimately indicted in federal court in California on three counts of wire fraud, 18 U.S.C. § 1343, and four counts of money laundering, 18 U.S.C. § 1957(a). Bhatia moved to dismiss the criminal indictment on grounds of collateral estoppel and res judicata, and the district court denied the motion. After Bhatia filed his notice of appeal, the government requested that Bhatia's claims of res judicata and collateral estoppel be found not colorable, so as to preclude appellate jurisdiction. The district court denied the government's request.