United States District Court, C.D. California
ALUMINICASTE FUNDICION DE MEX. S. DE RL CV
YU FEN SHEN ET AL.
Present: The Honorable CHRISTINA A. SNYDER, U.S DISTRICT
CIVIL MINUTES - GENERAL
DEFENDANT YUFEN SHEN'S MOTION TO STRIKE PORTIONS OF
COMPLAINT (Dkt. 12, filed May 18, 2017)
YUFEN SHEN'S MOTION TO DISMISS (Dkt. 14, filed May 18,
Court finds these motions appropriate for decision without
oral argument. See Fed.R.Civ.P. 78; C.D. Cal. L.R.
7-15. Accordingly, the hearing date of June 26, 2017 is
vacated, and the matters are hereby taken under submission.
Aluminicaste Fundicion De Mexico S. De RL De CV initiated
this action against defendants Yufen Shen and Po Chi
“Eric” Shen on March 22, 2017, asserting five
claims: (1) conversion, (2) fraudulent concealment, (3)
breach of fiduciary duty, (4) unjust enrichment, and (5)
money had and received. Dkt. 1. (“Compl.”). As to
the second, third, and fourth claims, plaintiff alleges that
Yufen Shen aided and abetted Eric Shen's allegedly
unlawful acts. Id. at 7-9. Plaintiff asserts its
claim for money had and received against Yufen Shen alone.
Id. at 9.
18, 2017, Yufen Shen (the “moving defendant”)
filed a motion to strike portions of the complaint that
allegedly refer to privileged material. Dkt. 12
(“MTS”). Specifically, the moving defendant seeks
to strike information that she alleges plaintiff obtained
from Mr. and Ms. Shen's tax returns, which were produced
in the course of a suit before a federal district court in
Texas in which only Mr. Shen is named as a defendant.
Id. at 2-3. Ms. Shen asserts that the allegations in
paragraphs 6, 8, 15, 22, and 30 of plaintiff's complaint
are based on her allegedly privileged tax returns, and thus
seeks to strike those paragraphs under Federal Rule of Civil
Procedure 12(f). Id. at 7. Also on May 18, 2017, the
moving defendant filed a motion to dismiss plaintiff's
complaint against her on the grounds that plaintiff's
claims are barred by the applicable statutes of limitations.
Dkt. 14 (“MTD”). The moving defendant also argues
that plaintiff fails to sufficiently plead several elements
of its second and third claims. Id. On June 2, 2017,
plaintiff filed oppositions to both motions. Dkts. 18
(“Opp'n to MTD”), 19. On June 12, 2017, the
moving defendant filed replies in support of her motions.
Dkts. 23, 24.
carefully considered the parties' arguments, the Court
finds and concludes as follows.
alleges the following facts.
is an aluminum manufacturing and production company organized
under the laws of Mexico “as a Sociedad de
Responsibilidad Limitada de Capital Variable, ”
headquartered in San Jose Iturbide, Guanajuato, Mexico.
Compl. at 2. Yufen Shen is a resident of California and the
former wife of co-defendant Eric Shen. Id. Mr. Shen
has not joined in either of Ms. Shen's motions. In 2011
and 2012, Mr. Shen was an employee of Scuderia Capital
Partners, Inc. (“Scuderia”), a U.S. company based
in Orange County, California. Id. While working for
Scuderia, Mr. Shen was responsible for the oversight and
management of certain aspects of plaintiff's business
operations, including making expenditures concerning the
construction of an aluminum foundry in Mexico. Id.
alleges that in 2011, Mr. Shen was responsible for an
unspecified number of unauthorized wire transfers, totaling
at least €625, 000, amounting to more than $850, 000, to
a bank account at HSBC in Taiwan, in the name of Yufen Shen.
Id. at 4. Plaintiff alleges that at least two of the
wire transfers came from its Deutsche Bank account: the first
on or around September 6, 2011, and the second on or around
October 6, 2011. Id. Mr. Shen did not report or
disclose to plaintiff any of the transfers from the
plaintiff's account to Ms. Shen's account, nor did he
account for the transfers in plaintiff's books.
Id. No consideration was provided for the transfers,
and plaintiff alleges that Mr. Shen's intentionally
concealed the transfers. Id.
the period when Ms. Shen was receiving the transfers, she was
employed by the U.S. Internal Revenue Service
(“IRS”). Id. at 2. Plaintiff alleges
that as a U.S. citizen, Ms. Shen was obligated by law to file
Reports of Foreign Bank and Financial Accounts with respect
to her HSBC account in Taiwan, and that she failed to do so.
Id. at 4. Ms. Shen failed to report any income on
the Taiwan account to the IRS, in violation of federal law.
Id. According to plaintiff, these two omissions were
part of an intentional effort by Ms. Shen to conceal the
illicit transfers that Mr. Shen was directing to her Taiwan
account, and “to further [Mr. Shen's] plan to
defraud Plaintiff and steal Plaintiff's funds.”
Id. Plaintiff alleges that both defendants
personally profited from the transfers, with the funds being
used for “household expenses, ” and for Ms.
Shen's “personal enjoyment.” Id. at
discovered the transfers that Mr. Shen directed from
plaintiff's accounts to his then wife's Taiwan
account until 2016, “after [plaintiff] began a
comprehensive review of its financial records upon
discovering other misconduct by Eric Shen.”
Id. at 2. Plaintiff alleges that the transfers went
undiscovered for so long because ...