eAdGear filed a civil lawsuit against its former President, Randy Williams, in San Francisco on March 15th. The case, assigned number 13-1186, lists GoFunPlaces as a co-plaintiff in the United States District Court for the Northern District of California.
The complaint names Randal Williams, also known as Randy Williams, along with Prosperity Formula LLC, JubiMax LLC, JubiMax Inc., Affiliate Pro Inc., and John Does 1 to 100 as defendants. eAdGear claims Williams acts as CEO and "alter-ego" for Prosperity Formula and Affiliate Pro. He is also described as the "organizer, officer, director, and managing agent" of JubiMax, and the "founder, officer, director, and managing agent" of JubiMax Inc.
eAdGear accuses Randal Williams and his associated entities of multiple offenses. These include misappropriation of trade secrets and violating the Computer Fraud and Abuse Act. The lawsuit also alleges conversion, breach of fiduciary duty, and breach of duty of loyalty.
The plaintiffs also claim tortious interference with contractual relations and prospective economic advantage. They further allege inducing breach of contract, breach of contract, breach of implied covenant of good faith and fair dealing, and unfair competition.
eAdGear, a Californian corporation, and GoFunPlaces, a British Virgin Islands corporation, state they launched GoFunPlaces through a "Joint Venture Agreement" (JVA). GoFunRewards serves as GoFunPlaces' MLM marketing arm.
The JVA stipulated eAdGear would provide initial working capital for the GoFunPlaces venture. It also allowed Williams, acting for GoFunPlaces, to use eAdGear's member base. This access was for promoting, endorsing, and marketing the joint venture's travel club and auction system to eAdGear's members.
Williams was designated the "Manager" of the GoFunPlaces joint venture under the JVA. His duties included maintaining its books and records and distributing profits as outlined in the agreement. Williams became GoFunPlaces' President after the entity formed, in addition to his manager role.
eAdGear and GoFunPlaces contend that Williams engaged in unlawful conduct shortly after executing the JVA. This occurred while he served as Manager and President of GoFunPlaces. His alleged actions include converting, stealing, embezzling, and misappropriating funds. The suit also cites the theft of trade secrets and confidential information, such as software, member databases, downlines, business plans, and compensation plans.
The complaint also alleges Williams sabotaged their operations. He is accused of publishing false and negative information about the companies.