SAN FRANCISCO – A complaint was filed in the U.S. District Court for the Northern District of California by a financial company who claims it provided finances to a man starting a temporary staffing company who misappropriated the payments for his own personal use.
The complaint was filed June 22 over allegations of breach of contract, fraud and deceit, conversion, breach of guaranty and breach of implied covenant of good faith and fair dealing.
According to the suit, Flexible Funding LTD Liability Co., a financial services provider for starting temporary staffing companies, agreed to a contract with Apollo Research Partners LLC and the owner of Apollo, Jeremy Hare, in 2017. The parties executed a factoring agreement as well as a guaranty agreement. Flexible alleges it was led to believe Apollo focused on placing “high-level accounting and financing personnel, including high-demand, hard-to-find candidates.”
Flexible agreed to advance Apollo money to pay temporary employees for the invoices and time sheets Apollo sent to Flexible. The suit states Hare also signed a factoring agreement where Flexible bought all of Apollo’s accounts receivable, and a guaranty that authorized Flexible to receive payments.
From June to August 2017, Flexible alleges it wired $411,838.31 to Apollo. Hare submitted time cards signed by a manager along with invoices to Flexible for services temporary employees provided to several companies; Harbor Linens, The Results Cos. and Boyds LP.
Flexible contacted Hare in August 2017 to ask whether The Results Cos. invoice was being paid. Flexible then contacted The Results Co. directly, who confirmed that the invoices and time cards were fake. An employee for Flexible stated that Hare was “double dipping providing us with bogus invoices.” Flexible claims to date it has not heard a response from the other two companies or Hare.
Flexible alleges that Hare provided names of real individuals for the three companies to perpetuate his scam, and that Hare manufactured invoices using false information that he sent to Flexible and used the money Flexible wired for his own personal gain.
Flexible alleges that the amount owed to it is $411,838.31 and is requesting the amount owed plus the maximum rate of interest, compensatory, punitive and exemplary damages, as well as attorney’s fees and court costs.
Flexible Funding is represented by Catherine Schlomann Robertson of Pahl & McKay in San Jose.
U.S. District Court for the Northern District of California case number 3:18-cv-03720-JCS