The Law Office of Jason Ingber has filed a major business litigation case involving allegations of insider misconduct, data theft, and trade secret violations within the merchant funding industry. The case highlights how misuse of confidential information and unauthorized computer access can devastate a company’s operations, reputation, and client relationships.
A Scheme to Steal and Divert Business Leads
According to the verified complaint filed in Los Angeles County Superior Court, a former insider allegedly gained access to a company’s confidential systems under false pretenses. After securing administrative control, the individual is accused of installing covert email forwarding rules to secretly transmit sensitive client data and business leads to competitors.
These confidential communications included private financial information, such as social security numbers and banking details, data later used by competing businesses to impersonate the company and secure deals intended for it. The result, according to the complaint, was a massive diversion of business opportunities and damages exceeding $2.9 million.
Trade Secret Misappropriation and Computer Crimes
The lawsuit asserts multiple claims, including misappropriation of trade secrets, negligent misrepresentation, and violation of California’s computer crime statute (Penal Code § 502). The filing alleges that the confidential business information stolen, such as lead generation data, marketing systems, and proprietary sales processes, constituted valuable trade secrets developed through years of investment and expertise.
Evidence uncovered through forensic investigation revealed that once the unauthorized email forwarding was removed, the unusual client losses immediately stopped, confirming the extent of the diversion scheme.
Impact on Business Operations
The alleged misconduct caused severe harm to the company’s reputation, client trust, and financial stability. Employees reported confusion and lost morale as promising deals vanished without explanation. The company was forced to spend significant resources on digital forensics, legal action, and rebuilding its client relationships and lead database.
The case underscores how data security and internal controls are vital for protecting trade secrets, particularly in high-volume industries like finance and business funding.
Legal Action to Protect Business Integrity
The lawsuit seeks compensatory and punitive damages, restitution, and injunctive relief to prevent further use or disclosure of the stolen data. It also requests an order requiring the defendants to return all proprietary information and cease using any materials derived from the company’s confidential systems.
Protecting Businesses from Insider Threats
At the Law Office of Jason Ingber, we represent businesses across California in complex commercial disputes, including cases of trade secret theft, fraud, and unfair competition. Our firm works to protect entrepreneurs and companies from insider sabotage, unauthorized data access, and corporate misconduct.
Contact The Law Office of Jason Ingber
If your company has suffered from data theft, unfair competition, or employee misconduct, contact us today for a free consultation. Our firm is dedicated to holding bad actors accountable and restoring justice to businesses harmed by deceptive or unlawful practices.