Case: 1:18-cv-06657 Document #: 1 Filed: 10/01/18 Page 1 of 8 PageID #:1

UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

ANTHONY MARANO COMPANY, )

)
Plaintiff, )
) Case No.
vs. )
) Judge:
TREASURE ISLAND FOODS, INC., t/a )
TREASURE IS 55TH, a/t/a TREASURE IS ) Magistrate Judge:
BROADWAY, a/t/a TREASURE IS )
CLYBOURN, a/t/a TREASURE IS ELM, )
a/t/a TREASURE IS LSD, a/t/a TREASURE )
IS WELLS, MAGAZI, INC. t/a TREASURE )
ISLAND FOODS, a/t/a TREASURE IS )
MAGAZI, MARIA A. KAMBEROS, and )
CHRIST N. KAMBEROS, JR., )
)
Defendants. )

COMPLAINT
(To Enforce Payment From Produce Trust)

Anthony Marano Company (“Marano”), by and through its undersigned counsel, for its

complaint against Defendants, Treasure Island Foods, Inc. (“TIF”), Magazi Inc. t/a Treasure Island

Foods ("Magazi"), Maria A. Kamberos (“M. Kamberos”), and Christ N. Kamberos, Jr. ("C.

Kamberos") alleges:

JURISDICTION AND VENUE

1. Subject Matter Jurisdiction is based on Section 5(c)(5) of the Perishable

Agricultural Commodities Act, 7 U.S.C. § 499e(c)(5), 28 U.S.C. § 1331 and 28 U.S.C. § 2201.

2. Venue in this District is based on 28 U.S.C. § 13391 in that (a) Plaintiff’s claims

arose in this district and (b) Defendants reside in this district.

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PARTIES

3. Plaintiff Marano, an Illinois corporation with its principal place of business in

Chicago, Illinois, is engaged in the business of buying and selling wholesale quantities of perishable

agricultural commodities (hereafter “produce”) in interstate commerce and was at all times pertinent

herein, a dealer subject to and licensed under the provisions of the Perishable Agricultural

Commodities Act, 7 U.S.C. § 499a et seq. (“PACA”) as a dealer.

4. Defendant TIF, an Illinois corporation, with its principal places of business in

Chicago, Illinois, is also engaged in the business of buying and selling wholesale quantities of

produce in interstate commerce and was at all times pertinent herein, a dealer subject to license

under the provisions of the PACA. Defendant TIF operates grocery stores on 55th Street in

Chicago ("Hyde Park"), on Broadway in Chicago ("Broadway"), on N. Clybourn Avenue in

Chicago ("Lincoln Park"), on W. Elm Street in Chicago ("Gold Coast"), on N. Lake Shore Drive

in Chicago ("Streeterville"), and on N. Wells Street in Chicago ("Old Towne"). Upon

information and belief, Defendant TIF is an affiliate or related entity of Defendant Magazi,

sharing common offices, owners and officers.

5. Defendant Magazi, an Illinois corporation, with its principal places of business in

Wilmette, Illinois, is also engaged in the business of buying and selling wholesale quantities of

produce in interstate commerce and was at all times pertinent herein, a dealer licensed under the

provisions of the PACA. Defendant Magazi operates a store on Ridge Road in Wilmette

("Wilmette") (Hyde Park, Broadway, Lincoln Park, Gold Coast, Streeterville, Old Town, and

Wilmette are hereinafter collectively referred to as the “Stores”). Upon information and belief,

Defendant Magazi is an affiliate and related entity of Defendant TIF, sharing common offices,

owners and officers.

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6. Defendant M. Kamberos, upon information and belief is an owner, officer and

director of TIF and Magazi who controlled the day-to-day operations of TIF, Magazi, and the

Stores during the period of time in question and was in a position of control over the PACA trust

assets belonging to Plaintiff.

7. Defendant C. Kamberos, upon information and belief is an owner, officer and

director of TIF and Magazi who controlled the day-to-day operations of TIF, Magazi, and the

Stores during the period of time in question and was in a position of control over the PACA trust

assets belonging to Plaintiff.

8. Between July 1, 2018 and October 1, 2018, Plaintiff sold and delivered to TIF and

Magazi wholesale quantities of fresh produce, in interstate commerce, collectively worth

$453,062.30, which remains unpaid, in the following principal amounts:

Hyde Park $172.862.24

Broadway $43,119.09

Lincoln Park $17,337.02

Gold Coast $76,149.37

Streeterville $49,259.23

Old Towne $60,817.84

Wilmette $33,517.51

Total $453,062.30

9. Each of the Stores accepted the produce delivered by Plaintiff.

10. At the time of receipt of the produce, Plaintiff became a beneficiary in a statutory

trust designed to assure payment to produce suppliers. The trust consists of all produce or

produce related assets, including all funds commingled with funds from other sources and all

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assets procured by such funds, in the possession or control of Defendants since the creation of

this trust.

11. Plaintiff preserved its interest in the PACA trust in the principal amount of

$453,062.30 by delivering invoices or other billing statements to the Stores which contained the

language required by 7 U.S.C. § 499e(c)(4) and remains a beneficiary until full payment is made

for the produce. A representative sampling of unpaid ordinary usual invoices or other billing

statements with the requisite statutory language is attached hereto as Exhibits 1 through 7.

12. TIF, Magazi, and their common owners and officers have not disputed the debt in

any way but have failed to make payment to Plaintiff in accordance with the prompt payment

and trust provisions of PACA.

13. The failure of TIF and Magazi to pay Plaintiff demonstrates that TIF, Magazi, and

its owners and officers have failed to maintain sufficient assets in the statutory trust to pay

Plaintiff and have dissipated trust assets.

14. Despite demand for payment, TIF and Magazi have failed and refused to pay

Plaintiff for the wholesale quantities of produce supplied by Plaintiff. TIF and Magazi have

announced they are closing the Stores and employees were given notice that the Stores would

close on or about October 2, 2018, with complete closings by October 16, 2018.

15. The failure of the Stores to pay Plaintiff, as well as the announced closing of the

Stores, indicates that TIF and Magazi are failing to maintain sufficient assets in the statutory trust

to pay Plaintiff and are dissipating trust assets.

Count I
(Failure to Pay Trust Funds)

16. Plaintiff incorporates each and every allegation set forth in paragraphs 1 to 15

above as if fully set forth herein.

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17. The failure of TIF and Magazi to make payment to Plaintiff of trust funds in the

aggregate amount of $453,062.30 from the statutory trust is a violation of the PACA and PACA

regulations and is unlawful.

WHEREFORE, Plaintiff requests an order enforcing payment from the trust by requiring

immediate payment of $453,062.30 to Plaintiff, and for such other and further relief as the Court

deems appropriate.

Count II
(Failure to Pay Promptly)

18. Plaintiff incorporates each and every allegation set forth in paragraphs 1 to 17

above as if fully set forth herein.

19. TIF, Magazi and the Stores received each of the shipments of produce described

above.

20. The PACA requires TIF and Magazi to tender full payment promptly to its unpaid

suppliers of produce.

21. TIF and Magazi failed to pay for the produce supplied by Plaintiff within the

payment terms.

22. As a result of the failure by TIF and Magazi to pay promptly, Plaintiff has

incurred damages in the aggregate principal amount of $453,062.30.

WHEREFORE, Plaintiff request an order enforcing the PACA’s prompt payment

requirements by requiring immediate payment of $453,062.30 to Plaintiff from TIF and Magazi,

jointly and severally, and for such other and further relief as the Court deems appropriate.

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Count III
(Failure to Pay for Goods Sold)

23. Plaintiff incorporates each and every allegation set forth in paragraphs 1 to 22

above as if fully set forth herein.

24. TIF and Magazi refused to pay Plaintiff the aggregate amount of $453,062.30

owed to Plaintiff for produce received from Plaintiff.

WHEREFORE, Plaintiff request judgment in favor of Plaintiff and against TIF and

Magazi, jointly and severally, in the amount of $453,062.30, and for such other and further relief

as the Court deems appropriate.

Count IV
(Unlawful Dissipation of Trust Assets
by a Corporate Official – Maria A. Kamberos)

25. Plaintiff incorporates each and every allegation set forth in paragraph 1 to 24

above as if fully set forth herein.

26. Defendant, M. Kamberos, was an owner and officer of TIF and Magazi during the

period in question and was in a position of control over the PACA trust assets belonging to

Plaintiff.

27. Defendant, M. Kamberos, failed to direct TIF and Magazi to fulfill their statutory

duties to preserve PACA trust assets and pay Plaintiff for the produce supplied.

28. Defendant, M. Kamberos', failure to direct TIF and Magazi to maintain PACA

trust assets and pay Plaintiff for the produce supplied was a breach of fiduciary duty and an

unlawful dissipation of trust assets by a corporate official.

29. As a result of said unlawful dissipation of trust assets, Plaintiff has been deprived

of its rights as beneficiary in the produce trust and has been denied payment for the produce it

supplied.

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WHEREFORE, Plaintiff request judgment against Defendant, Maria A. Kamberos, in the

amount of $453,062.30, and for such other and further relief as the Court deems appropriate.

Count V
(Unlawful Dissipation of Trust Assets
by a Corporate Official – Christ N. Kamberos, Jr.)

30. Plaintiff incorporates each and every allegation set forth in paragraph 1 to 29

above as if fully set forth herein.

31. Defendant, C. Kamberos, was an owner and officer of TIF and Magazi during the

period in question and was in a position of control over the PACA trust assets belonging to

Plaintiff.

32. Defendant, C. Kamberos, failed to direct TIF and Magazi to fulfill their statutory

duties to preserve PACA trust assets and pay Plaintiff for the produce supplied.

33. Defendant, C. Kamberos', failure to direct TIF and Magazi to maintain PACA

trust assets and pay Plaintiff for the produce supplied was a breach of fiduciary duty and an

unlawful dissipation of trust assets by a corporate official.

34. As a result of said unlawful dissipation of trust assets, Plaintiff has been deprived

of its rights as beneficiary in the produce trust and has been denied payment for the produce it

supplied.

WHEREFORE, Plaintiff request judgment against Defendant, Christ N. Kamberos, Jr., in

the amount of $453,062.30, and for such other and further relief as the Court deems appropriate.

Count VI
(Interest and Attorney’s Fees)

35. Plaintiff incorporates each and every allegation set forth in paragraphs 1 to 34

above as fully set forth herein.

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36. As a result of Defendants’ failure to make full payment promptly for the produce

sold and delivered to the Stores, Plaintiff has lost the use of said money.

37. As a further result of Defendants’ failure to make full payment promptly for the

produce sold and delivered to the Stores, Plaintiff has been required to pay attorneys’ fees and

costs in order to bring this action to require Defendants to comply with their statutory duties.

38. PACA and the invoices of the Plaintiff entitle Plaintiff to recover prejudgment

interest and attorneys’ fees and costs incurred to collect any balance due from Defendants.

WHEREFORE, Plaintiff requests judgment against each of the Defendants, jointly and

severally, for prejudgment interest, attorneys’ fees and costs, and for such other and further relief

as the Court deems appropriate.

Dated this 1st day of October, 2018 Respectfully submitted,

By: /s/ Robert Marcus

Robert B. Marcus, #6304891
Maksimovich & Associates, P.C.
8643 Ogden Avenue
Lyons, Illinois 60534
(708) 447-1040
(708) 447-1846 – fax
rmarcus@attorneymm.com

Counsel for Anthony Marano Company