“Exactly.”
“But essentially, Home Hacks is a middleman in the market and they gouge their customers for subscriptions for the service. If you remember, London Technologies’ software would eliminate them, destroying their business, which we know they weren’t happy about.”
Roger cocked his head. “How do we know that? Other than common sense?”
“We know that because the president of Home Hacks threatened Alex Chen, the marketing director for London Technologies, at a trade association meeting. He told Chen that he would put them out of business. I defended the deposition, and Alex is rock-solid on his testimony.”
“Okay.” Roger made a note.
“Alex Chen also testified that Home Hacks took measures against London Technologies to stop them, like the exclusive dealing contracts and so forth, which are anticompetitive business practices unlawful under the Sherman Act. So we know that Home Hacks was attempting to retaliate for being put out of business. In other words, it had it out for London Technologies. That’s why we filed suit on their behalf.”
Roger kept taking notes.
“At the luncheon, we learned that Nick Machiavelli owns a company named Florence Financial, which is part of a consortium that owns Home Hacks. So we came back and did our research.” Mary gestured at an array of documents on the conference table, which they had found online and printed so they could study them. “We did as much digging as we could to learn the company’s value and management. We also wanted to know who are the other owners of Home Hacks, in other words, who makes up the consortium. It wasn’t easy tofind because Home Hacks is a privately held company and they play close to the vest. Business articles place their valuation at approximately $16 million.”
“So it’s lucrative.” Roger’s eyebrows lifted.
“Very. There appear to be only two other investors in the consortium, both corporations. One is called the Roma Holdings, LLC, and the other is called The Milano Group.”
“They’re all Italian cities.”
“Yes, now,youget an A plus,” Mary said, trying to play nice with him, since she couldn’t fire him. “We know that Machiavelli owns Florence Financial, and I’m assuming that he owns the other two companies.”
“Is his name on the other corporate registrations?”
“No, they’re owned by two other corporations, and we didn’t recognize the name of the corporate agents who signed the forms.”
Bennie interjected, “They’re probably shell companies, owned by other shell companies. We’ll task Lou with that, ASAP. But right now, we have the only connection we need, which is with Home Hacks.”
Roger frowned slightly. “So why does Machiavelli use Italian city names, if he’s trying to play it close to the vest, as you say? It’s not hard to see that pattern. And why own Home Hacks outright, through one company, and use shell companies for the other two companies?”
Bennie sipped her coffee. “We don’t have all the answers. Maybe when they were incorporated matters or maybe for tax purposes, or tax shenanigans, but we don’t need to know that now.”
“I think I know how to find out, and I will.” Mary didn’t elaborate, since Roger wouldn’t think that Joey One Eye was as reliable as Dun & Bradstreet. Though Joey One Eye was probably more so. “And of course, the gravamen of the London Technologies Complaint was that both EXMS andHome Hacks conspired to maintain a monopoly on the market together and they jointly required dealerships to deal with them exclusively. The point is, the conduct of the two defendants was so coordinated in the market that we strongly suspect thatbothentities are owned by Machiavelli—not just Home Hacks, but EXMS.”
Rogers eyes flared. “Really.”
“Yes, we researched the corporate registration of EXMS, but that’s a privately held company too, owned by another entity, or shell company. It will take more sophisticated digging to pierce those corporate veils, but we’re working on that assumption for now.”
Isaac frowned in confusion. “But Mary, what does this have to do with anything? I don’t know why any of it matters.”
“Okay.” Mary straightened. “What we think happened is that about six months ago, we filed suit on behalf of London Technologies and the Complaint was drafted by John. John was an antitrust expert and he regarded himself that way. He let it be known generally. The clients liked Anne, but she had to fight the notion in the beginning that he was the brains in the case.”
Anne reddened. “True. Not to speak ill of John, because I never would. But he was definitely regarded as the MVP on the team. He was right, what he said. I was the pretty one, he was the smart one. He took the lead, and in the beginning, I let him.”
Mary could hear the guilt in Anne’s voice. “In any event, John drafted the initial discovery and signed and sent it himself, without Anne or Bennie’s signature. The defendants would have seen John as the prime mover in the litigation.”
Judy cleared her throat. “He drafted a beautifully written Complaint and he would be seen as a serious legal threat by any defendant.”
“Like Machiavelli,” Mary supplied, finishing her best friend’s thought.
Roger nodded. “I’m catching on. So Machiavelli owns Home Hacks, which is under threat by John Foxman. Is that your point, Mary?”
“Yes, bluntly put.” Mary felt her chest tighten, at the depravity of the scheme. “Machiavelli sees his company Home Hacks as being threatened by our client London Technologies, which is represented by MVP John Foxman. So what Machiavelli does is contact three kids that he probably put through law school—Michael Battle, Graham Madden, and Steve McManus. You recognize those names, of course.”
“The plaintiffs in the reverse-discrimination lawsuit.”
“Yes, and we have learned that they have worked for other businesses that Machiavelli owns around the country, before they went to law school. We posit that he puts them through law school, calls in a favor, and they apply with us and are rejected. The only one who gets an interview is Steve McManus, and he’s personable enough to get John Foxman talking. In other words, Machiavelli targets John and sends in McManus, who gets John to say that he feels out of place here, discriminated against because he’s a man.”
