Businessman awarded default judgment in vaccine case

The international lawsuit involving US$10 million fraud against Barbadian businessman Mark Maloney has finally come to a close.

On February 27, the United States District Court for the Central District of California awarded a default judgment to Maloney and his company, Radical Investments Ltd, against the final defendant, Moniladae Coley and her company Prestige Pegasus LLC.

Maloney was awarded US$2 million (BDS$4 million) – the exact amount Coley received five years ago to procure COVID-19 vaccines for Barbados, a transaction that was never completed.

When contacted recently, Maloney said: “We have maintained our position from the beginning and continue to pursue all available avenues to ensure justice is done.”

According to court documents, Coley, known as “Millionaire Babe” on social media, was contracted by Alex Moore and his company, Good Vibrations Ltd (GVE), as the “authorised supplier” to secure two million doses of the AstraZeneca vaccine.

The Second Amended Complaint detailed how the funds were handled. Instead of procuring the vaccines, the court found that Coley used the money for personal luxury purchases, items she subsequently posted about on her social media accounts in 2021.

It noted that there was no dispute regarding the facts: “Coley/Prestige received $2 million into their Wells Fargo bank account, failed to deliver the vaccines, yet kept the money anyway.”

While Maloney secured a default judgment against Moore and GVE last year, finalising the case against Coley proved difficult. Although the matter was before the court for three years, Coley never responded to filings or made an appearance.

The court reserved judgment without prejudice initially, granting Maloney additional time to serve Coley with the Second Amended Complaint. She was finally served in November last year. However, despite this and having counsel for the plaintiff confirm they spoke with her multiple times by phone, Coley failed to mount a defence.

In awarding the judgment, District Judge Monica Ramirez Almadani applied the seven factors required for a default judgment, finding that all factors favoured Maloney. She emphasised that Maloney had “diligently litigated this case for years” and that the defendants’ failure to participate left him with “no other recourse”.

The judgment provided a detailed breakdown of the legal claims Maloney successfully proved:

• Civil conspiracy: The court found that Coley entered into an agreement with Moore and GVE to unlawfully obtain the funds. By receiving the money and failing to procure the vaccines, she committed an “overt act in furtherance of the agreement”.

• Fraud and negligent misrepresentation: The court found that Coley conspired to misrepresent her ability to deliver the vaccines to induce Maloney’s reliance. It stated the defendants had
“no reasonable ground to believe they could produce or deliver the vaccine”.

• Conversion: It was ruled that Coley disposed of the money in a manner inconsistent with Maloney’s property rights. “Rather than procure the vaccines, Coley used the money to purchase personal items,” the judgment read.

• Unjust enrichment: The court found it inequitable for Coley to retain the benefit of the US$2 million after failing to uphold her end of the agreement.

• Unfair competition: The court found that the fraudulent business practices triggered liability under California’s Unfair Competition Law.

In its analysis of the financial stakes, the court stated: “Unlike in cases where the value of the remedies sought is subject to debate, here, the value is clear: Plaintiff was defrauded out of a specific amount of money ($2 million) and now requests that the court ensure this money is returned.”

It further noted that the lawsuit was filed in September 2021 and the defendants had ample opportunity to defend themselves. Because the defendants failed to participate, the court found
that a judgment on the merits was “impractical, if not impossible”.

With the granting of the motion for default judgment, the court has officially entered judgment against Coley and Prestige Pegasus LLC, bringing the protracted legal battle over the failed vaccine procurement deal to a definitive end.

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