Legal Question in Civil Litigation in California

Plaintiff has just made me as defendant in a small claim action-$1750. I sold a multiple unit building to plaintiff. The loan existing on the property called for payoff at sale. An offer was presented to me wherein no payoff would be made and the loan payments would be silently made by plaintiff. Originally I was persuaded that no adverse consequences could occur. Later I was advised that my credit could be jeopardized by engaging with plaintiff in an ongoing effort to defraud the lender. However, I was threatened with lawsuits for not performing on the contract and I sold the property. Plaintiff recorded sale of property in their name. Thereafter plaintiff purchased property insurance in my name to perpetuate this fraud in which I became an unwilling co-conspirator. After 2 1/2 years plaintiff got a new loan and a pro ration for insurance payments was sent to me-$1750. Plaintiff now sues for that insurance refund of a policy in my name, only in my name, because plaintiff sought to defraud the lender. Do I have a legal obligation to forward $1750 to plaintiff?

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