Judy Justice

You made a loan and she hasn't paid you back.

-I said, "You need to pay me." -She said, "I want to help."

-And I said, "Okay." -Never.

-This is my family's charity. -You're in this to make money.

She never said, "I'm gonna make a donation to your side hustle charity."

- This is Judy Justice. -

Sunny Sun is suing her former friend, Dana Gray,

for an unpaid loan she used to start a charity bingo hall.

All rise.

Have a seat, please.

Judge, case 3142, Sun versus Gray.

-Thank you. -You're welcome.

Ms. Sun, it's a relatively simple case that we will unravel.

You alleged that you made a loan to Ms. Gray and she hasn't paid you back.

Ms. Gray said, no, you never made a loan to her.

What you did was you made a charitable donation. That's your defense.

-Is that right? -Correct.

Okay. So I'm gonna start with you. Tell me what kind of work you do.

Sales and customer service.

Right. Tell me what you have to do with bingo.

I've been doing bingo since I was about 18 years old.

What do you mean, you've been doing bingo?

- You're... playing the game? -I... either playing or working it, yes.

What does that mean, playing or working?

Playing, I understand. I've done that a couple of times myself.

-Working, I don't understand. -Well, you have to have a 501(c)(3).

- Yeah. -It has to be a charity

that you are supporting for the bingo games in California.

-Okay. - And...

-Just a second. - Okay.

- So you set up bingo games. - Mhm.

And part of the money that you get, you donate to charity.

-And that is a source of income for you? -No. I don't make any income.

- Nothing? -No.

-I do make tips, though. - Just a second.

-So you make income? - Yes. Correct.

And how long have you been doing that?

About 25 years now.

How much money annually would you say, calculated guess,

that you make from the tips from the business?

Annually, maybe 25,000.

Okay. And how many of these bingo games do you do every year?

-We do it every week, once a week. -Every week?

- Once a week, correct. -And what's the name of your 501(c)(3)?

-Alpha Recovery Life Systems. - Okay. You got it?

-Mhm. -I'm gonna stop there.

I'm gonna take a look at it and I wanna see their last filed tax return.

-They don't pay taxes. It's a charity. -If you're a 501(c)(3), you have to file.

You pay somebody? You have an employee at the 501(c)(3)? One employee?

-I'll find out the answer from this. -No. I don't have any employees.

This is my family's charity.

What I'm saying is, you don't pay anybody from the money

-that you collect at the bingo games. - Correct.

- Nobody gets paid. -Correct.

-So, for a 501(c)(3) look up. - You're located 12 Road?

-Correct. -Who lives there?

My father, another employee at the charity.

What do you mean, another employee of the charity?

First, you said there were none. Hold on. Let's get this straight.

How much does your father get paid from the charity?

- I don't know. - What do you mean, you don't know?

I... it's just a fundraiser for the charity

to help support all the programs they have.

So I don't have anything to do with that part.

According to their filing requirement code,

it says they've stated they make income less than 25,000 per year.

Well, she makes 25,000 a year in tips.

Well, that's just the type of filing, the 990.

-Mhm. -"Required to file Form 990-N,

-income less than 25,000 a year." - Cute.

The charity's only been in existence since April.

Cute. Cute. Cute. Okay.

So I want you to tell me how first did you meet her?

I've been playing bingo with Sunny for over 20 years.

And I want you to tell me about the $6,000 she gave you.

-Well, I was opening up the bingo parlor. - Just a second.

Opening up what bingo parlor and when?

The grand opening was on April the 16th, 2023.

- Where? -In Lake Forest, California.

Who pays the rent?

- Who pays the rent for the... -Who pays the rent?

You were opening up a place...

- Oh! - ...to play bingo.

- We... -Who pays the rent?

We pay the rent from the proceeds of the bingo game.

And then there are people who run the bingo game.

-Correct. - And who pays them?

We're all volunteers.

Well, you're not a volunteer. You make tips. That's the idea.

- All of... -That's how you make money.

-You make 25,000 a year. Tips in cash? -Yes.

Yes. How much do you have to pay to play a game of bingo?

-Between 300 to 3,000. - To play one game?

-One day. -One whole day?

-Yes, ma'am. - Is that right?

You pay either between 300 or 3,000 to play bingo for a day?

For the charity... I'm sorry.

-Are you saying the player? - No. I asked her...

- To play bingo. - ...how much did it cost

-for Ms. Sun to play bingo for a day? -Oh, the buy-in...

- No. I asked her. -Oh, okay.

-She said between 300 and 3,000. -Yes.

- Right? -Yes.

And how many people would you say you play with at one time?

-In her place? - Let's start in her place,

because her place, she says, is for charity.

When I start the first day, we had at about 150 people.

And 150 people and you play once a week.

-Once a week. - Okay.

And 150 people is an average number of people?

No. After first week, about 50 to 60 people.

Okay. And those people pay anywhere between $300 and $3,000 to play?

-Maybe 200 to 2... - No.

That's a big span.

You have to buy-in to play bingo.

- Yes. -The minimum buy-in was $40.

-There are side... -And does that go up?

There are side games that you can purchase on your own that are a dollar apiece.

So you can purchase 20, you can purchase 100.

Some people, such as Sunny, will probably spend that much money at one time,

-but there are some people that won't. - Very good.

But the buy-in is $40.

- So if you have 50 people... - Mhm.

...how much of that weekly goes to the charity?

-After the balance, if we have 50 people? - No, no, no, no. You see this face?

-Yes. -This is an old face,

-but it's a smart face. - Of course.

You are not in this business for your charity.

You're in this business for money. That's what it is. I know all about 501(c)(3)s.

I was involved in a 501(c)(3). I got out of a 501(c)(3).

I know all about 501(c)(3)s and I know what the costs are around the 501(c)(3).

So let's understand each other. You are not in this for charity.

You are in it because you make money from it.

The fact that you may donate some of the proceeds to a charity is nice,

but we both know that you're in it to make money.

-Whose account is this? - Mine.

- Your personal account? -Correct.

- -

Your defense to her action is that she was making a charitable donation.

Why isn't this made payable to a charity?

Sunny Sun claims her former friend, Dana Gray,

owes for an unpaid loan used to start a charity bingo hall.

Dana is countersuing for defamation and lost wages.

So let's end any notion that I think that you have totally altruistic motives

for being involved in this charity to rehabilitate people.

-I want us to understand each other. - 100%.

- We got it? -Mhm.

- Okay. Now... -Can I show you

a profit and loss statement so you can see how the breakdown goes?

Do you think that I'm gonna believe that

-after what I just read on the internet... -

...that you said that it makes less than $25,000 a year?

You're gonna want me to believe your profit and loss statement?

-Don't be ridiculous. -No, I want you to see

how it's broken down so that you can see how many people you have,

how much it cost for them to have it.

You're in this to make money.

- For... -Tangentially,

you also support a charity, but you make money. You don't take your $25,000 a year,

if that's all you get, and donate it to the charity.

You don't do that. You keep that. So you're in it to make money.

She gave you $6,000. You've been playing bingo with her for 20 years.

I want you to tell me a story that this old but seasoned face...

- -...is gonna believe.

-Do you understand? -I do.

- Alrighty. Let's start from there. -Okay.

When I was starting up my bingo game, the bingo parlor,

there were startup costs that were associated with it.

Rental, paper, tabs, the whole nine, okay?

-I also... -I understand what you say.

I also have to have attendance. You have to have people coming to play.

If you don't have people coming to play,

spending $300 or $3,000, it doesn't work, okay?

I literally went to Sunny because I called the place that she plays

and I said, "I'm opening up a bingo game. I want you to come."

She lives in the neighborhood. She said, "Let's talk about that."

I said, "Okay." We met for brunch.

-She paid. She said, "Let's talk." - No, no, no, no, no.

-Now you met for lunch. - Yes.

- Brunch. - Brunch, 'cause we went to a cafe.

Go ahead. And now you are opening up a bingo parlor...

-Yes. - ...where you're gonna make money.

-Correct. -And you needed money for startup costs.

- Correct. -Okay.

-So now you're sitting down with Sunny. -Okay.

- Very slowly, so that this face... -

So that this face, madam, believes you.

Okay. Your Honor, I did not need Sunny for startup money.

Just a second. Now, that's called editorializing. Let's meet up for brunch.

-And? -She...that's what she said,

"Let's meet up for brunch." She asked me about the charity.

I told her about the charity. I told her that it was going to cost a lot.

-I have already have things working. - No, no. No, no, no.

Tell me. I want you to say, "She said this to me, we sat down for brunch."

-Okay. -"I ordered..." I don't know.

"I ordered scrambled eggs. She ordered oatmeal with raisins and cinnamon."

- As a matter of fact, that's... -"We both ordered coffee

and we started to talk about my new business."

-Correct. - I want you to tell me

what you said to her and what she said to you.