Judge: Armen Tamzarian, Case: 20STCV03727, Date: 2023-03-07 Tentative Ruling

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Case Number: 20STCV03727    Hearing Date: March 7, 2023    Dept: 52

Plaintiff Tommy Alastra’s Request for Court Judgment by Default Against Defendant Troy James Hogg

Plaintiff Tommy Alastra requests court judgment by default against defendant Troy James Hogg.  Plaintiff submits insufficient evidence for the $400,000 in punitive damages he claims.  “[E]vidence of the defendant’s financial condition is a prerequisite to a punitive damages award.”  (Adams v. Murakami (1991) 54 Cal.3d 105, 119.)  The plaintiff bears the burden of introducing such evidence.  (Ibid.) 

Plaintiff’s only evidence of Hogg’s financial condition is the declaration of counsel Christopehr Grivakes.  He states:

I conducted research into the assets of defendant Troy James Hogg in order to prove-up the reasonableness of the request for punitive damages.  Based upon my research, I discovered that Mr. Hogg defrauded investors of $51,000,000 in connection with a cryptocurrency scam and has kept millions for himself.  On September 30, 2022, the U.S. Securities & Exchange Commission filed an action against Hogg, his companies, and his accomplices.   A true and correct copy of the action is attached hereto as Exhibit 1. Hogg was a “control person” (Id., ¶ 9)  who with his co-conspirator Goldberg “made proceeds totaling about $45 million.” (Id., ¶ 80).  (Emphasis added).  Hogg converted his gains into Bitcoin.  (Id., ¶ 81)  On September 30, 2022, the Ontario Securities Commission filed an action against Hogg.  A true and correct copy of the action is attached hereto as Exhibit 2.  According to the Ontario Securities Commission, Hogg ‘received millions of dollars directly and indirectly through companies he controlled, such as TJL and Gables.’  

(Grivakes Decl., ¶¶ 2-5.)

None of this is admissible evidence of Hogg’s financial condition.  Grivakes has no personal knowledge that Hogg defrauded investors in a cryptocurrency scam.  That the SEC and Ontario Securities Commission have alleged Hogg participated in a scam is not evidence he did so.  The court cannot accept those allegations as true.  And even if they were true, the allegations would not establish Hogg’s current financial condition.  The SEC’s complaint arises from events in 2018 and 2019.  (Grivakes Decl., Ex. 1, ¶ 3.)  The Ontario Securities Commission’s statement of allegations concerns the period from May 2017 to June 2019.  (Id., Ex. 2, ¶ 2.)

Plaintiff must either introduce adequate admissible evidence of Hogg’s financial condition or waive his claim for punitive damages.

Plaintiff’s request for court judgment by default is denied without prejudice.  The court hereby continues the order to show cause re: default judgment to April 10, 2023, at 8:30 a.m.