Beruflich Dokumente
Kultur Dokumente
Rouge Parish, State of Louisiana, who respectfully files its Second Supplemental and
amends and supplements its entire original and first supplemental and amended
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petitions for damages to allege specific facts based upon the most recently made
available information.
NAMED DEFENDANTS
the laws of the State of Louisiana, with its principal place of business in New
5. Active Solutions, LLC is a limited liability company organized under the laws of
the State of Louisiana, with its principal place of business in New Orleans, LA,
8. Mark St. Pierre is an individual domiciled in the State of Louisiana, and a named
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10. Scott Domke is an individual domiciled in the State of Louisiana, and a named
11. Paul Hastings is an individual domiciled in the State of Louisiana, and a named
13. Dwayne Hodges is an individual domiciled in the State of Louisiana, and a named
16. Imagine Software, LLC d/b/a Imagine Consulting is a limited liability company
organized under the laws of the State of Louisiana, with its principal place of
17. NetMethods, LLC is a limited liability company organized under the laws of the
State of Louisiana, with its principal place of business in Baton Rouge, LA, and a
18. Method Investments, LLC is a limited liability company organized under the laws
of the State of Louisiana, with its principal place of business in New Orleans, LA,
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19. Veracent, LLC is a limited liability company organized under the laws of the State
of Louisiana, with its principal place of business in New Orleans, LA, and a
20. Logistix, LLC is a limited liability company organized under the laws of the State
of Louisiana, with its principal place of business in Metairie, LA, and a named
21. Ellen Kirk is an individual domiciled in the State of California, and a named
22. AMI Consulting, LLC is a limited liability company organized under the laws of
the State of Louisiana, with its principal place of business in Del Mar, CA, and a
23. Billy Ridge is an individual domiciled in the State of Louisiana, and a named
24. Steve Renecker is an individual domiciled in the State of California, and a named
25. Heather Smith is an individual domiciled in the State of Texas, and a named
26. Dell, Inc. is a corporation incorporated under the laws of the State of Delaware,
with its principal place of business at Round Rock, Texas, and a named corporate
defendant herein.
27. Dell Marketing, L.P. is a foreign partnership domiciled in the State of Texas, with
its principal place of business in Round Rock, Texas, and a named corporate
defendant herein.
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28. Ciber, Inc. is a corporation incorporated under the laws of the State of Delaware,
with its principal place of business in Greenwood Village, CO, and a named
29. Donald Evans is an individual domiciled in the State of Louisiana, and a named
30. Bill Tolpegin is an individual domiciled in the State of Georgia, and a named
32. Earthlink, Inc. is a corporation incorporated under the laws of the State of
Delaware, with its principal place of business in Altanta, Georgia, and a named
33. Motorola, Inc. is a corporation incorporated under the laws of the State of
Delaware, with its principal place of business in Schaumburg, IL, and a named
incorporated under the law of the State of Louisiana, with its principal place of
35. For purposes of clarity, CamSoft is not bringing suit against either the City of
Baton Rouge or The City of New Orleans, nor is CamSoft filing a suit against any
of the above named individuals in their official capacity, nor is CamSoft alleging
any type of vicariously liability on behalf of the City of Baton Rouge or the City of
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SUBJECT MATTER JURISDICTION
36. This Honorable Court has previously found subject matter jurisdiction pursuant
VENUE
substantial part of the events or omissions giving rise to the claim occurred
FACTUAL BACKGROUND
38. In April of 2002, C. Ray Nagin (“Mayor Nagin”) accepted public office as Mayor of
New Orleans. Mayor Nagin ran on a platform of ending city corruption and
technologies (“IT Services”). Mayor Nagin also proclaimed his desire to deploy
39. After taking office, Mayor Nagin created the Mayor’s Office of Technology
(“MOT”) and appointed Gregory Meffert (“Meffert”) as the city’s first Chief
Technology Officer (“CTO”) on May 5, 2002. As acting CTO, Meffert hired his
colleagues, Mark St. Pierre (“St. Pierre”), Mark Kurt (“Kurt”), Paul Hastings
(“Hastings”) and Scott Domke (“Domke”), through their jointly owned limited
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Pierre, Kurt, Hastings, Domke, Drake, Hodges, Charbonnet and Stevenson
40. As CTO, Meffert provided business cards to MOT Employees, whose email
addresses indicated that they were direct employees of the City of New Orleans
hereto, the MOT Employees brandished business cards, sent emails, conducted
Consulting.
41. Since June of 1992, Plaintiff, CamSoft Data Systems, Inc. (“CamSoft”), has
provided IT Services in the greater Baton Rouge and New Orleans areas. In
small start-up company, FHP Wireless, Inc. (now known as Tropos Networks,
Inc.) (“Tropos”), and its newly developed technology of wireless Internet access
42. After returning from the trip, CamSoft signed a Reseller Agreement and
the potential of this new technology, CamSoft intended to expand its business by
from other companies, around the Tropos MESH Technology. These new
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applications included software that utilized wireless Internet access for police
developed for police, fire and EMS personnel. CamSoft further intended to
deploy the MESH Technology for paying broadband Internet access customers,
keep any Confidential Information received strictly confidential and only use the
information for the purpose of the Agreement and not to disclose to any third
party any such Confidential Information, except to Users and other Company
44. Knowing that deployment of these new applications would first require the
CamSoft used its own money and resources to deploy the Tropos MESH
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Louisiana. CamSoft also hoped to use the Baton Rouge deployment as a test bed
45. In June of 2003, CamSoft received media from the Baton Rouge Business Report
regarding its planned wi-fi deployment. On July 17, 2003, MacDonald emailed a
Emails indicate that by July 23, 2003, MacDonald was in communications with
to the MESH Technology. By August 11, 2003, MacDonald was in direct email
46. After hearing of MacDonald’s wi-fi deployment in downtown Baton Rouge, Brian
solution for Mayor Nagin’s crime camera initiative. After initial telephone
discussions were held, Fitzpatrick, MacDonald and Perrin agreed to jointly work
together towards designing and developing a crime camera system meeting the
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needs of Mayor Nagin’s crime camera initiative. Active Solutions was co-owned
47. On August 21, 2003, Fitzpatrick wrote to MOT CTO Meffert that MacDonald and
CamSoft would be specifically responsible for designing the wi-fi network used
in the crime camera project. In a reply email dated August 21, 2003, Meffert
stated that Drake and St. Pierre must have access to all info and plans for the
camera NOPD wanted to use in the crime camera project. After obtaining the
Sony camera, MacDonald tested the wireless connectivity of the Sony camera to
Perrin his success in connecting and remotely operating the camera through the
49. In an email dated September 29, 2003, MacDonald notified MOT CTO Meffert
that CamSoft was deploying a free wi-fi Internet deployment in the warehouse
district of New Orleans, similar to the free wi-fi deployment in downtown Baton
Rouge. Although the New Orleans warehouse district deployment was entirely
separate and apart from Mayor Nagin’s crime camera initiative, MacDonald
notified Meffert that the Sony cameras would connect to the wi-fi infrastructure.
50. In an email dated October 22, 2003, MacDonald told Fitzpatrick to finish his
work on getting the crime camera’s power supply box to work with the Sony
camera. MacDonald advised that once the Sony camera had reliable power,
MacDonald and Fitpatrick would then work on changes to the wi-fi part of the
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crime camera system. This email signifies that Active Solutions had not built the
first crime camera prior to MacDonald and CamSoft working on the crime
camera initiative.
51. In addition to the work in New Orleans, by approximately October 30, 2003,
MacDonald was working to schedule meetings with Evans, Baton Rouge’s CTO.
In an email dated November 12, 2003, MacDonald discussed with Chad Guillot,
an employee with the City of Baton Rouge, the availability and use of homeland
52. In an email dated November 25, 2003, Drake, a MOT employee, sent MacDonald
information and a map of camera placements for a proposed pilot project in the
Iberville Housing Project adjacent to NOPD First District (“Pilot Project”). The
Pilot Project called for the deployment of six (6) surveillance cameras installed
throughout the New Orleans housing project, which had a known high crime and
murder rate. Due to the high cost of running hardwires from the police station
to the crime cameras, the Pilot Project’s primarily purpose was to determine the
would not only provide 24 hour monitoring of high crime areas, but the MESH
Technology would allow wi-fi access points, or “hotspots,” from where police
officers could remotely operate the crime cameras from the safety of their Police
jointly build out the Pilot Project using CamSoft’s MESH Technology and a crime
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camera to be built by Active Solutions. As more fully discussed below, the Pilot
Project intentionally did not use existing wireless technologies, such as “point-
to-point” or “point-to-multi-point.”
53. Originally, Fitzpatrick wanted to install CamSoft’s MESH Technology directly into
the crime camera’s box containing the power and communications equipment.
many of the Pilot Project crime cameras would have the Tropos’ equipment
installed inside the box. MacDonald wrote that neither he nor Tropos backed the
installation of the Tropos’ equipment inside the box. MacDonald then directed
Fitzpatrick on the necessary wireless equipment that Active Solutions should use
inside the box to work with the Tropos MESH Technology. Fitzpatrick agreed
fact that only a limited number of Sony cameras could connect to any one Tropos
“node,” which limitation the parties had previously calculated prior to the Pilot
surveillance system network design that took into consideration these data rate
transfer limitations.
54. CamSoft further alleges that the December 8, 2003 emails referenced above,
along with both prior and subsequent emails, contained express confidentiality
clauses at the bottom of the emails indicating the sensitive and confidential
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Southern Electronics and Tropos, were expressly put on notice of the
stated:
55. As part of their joint efforts to deploy the Pilot Project and to sell the eventual
independently pay for and provide the MESH Technology. Active Solutions and
Southern Electronics agreed to pay for and provide the Sony surveillance
or if no future contract with the City of New Orleans arose from their joint
Active Solutions and Southern Electronics had never once discussed subcontract
agreements between the parties. CamSoft alleges the existence of a joint venture
whereby all parties agreed to share in both the profits and losses of the New
Orleans crime camera deployment, particularly the losses if the Pilot Project
proved unsuccessful.
56. As stated above, before the Pilot Project began, CamSoft had previously
determined that the Tropos nodes could only handle a certain number of
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surveillance cameras given the bandwidth limitations of the Tropos equipment
and the large amount of data bandwidth required to transfer seamless video
installed on light poles or other locations throughout a large city area. Each
Tropos “node” could communicate with the other nodes if each node was on the
same frequency channel. That way, if one node was disabled, the other nodes
could transfer data around the “dead” node. However, the large amounts data
sent by the Sony surveillance cameras clogged up the network if the nodes were
all on the same channel. Thus, CamSoft learned early on that the Tropos nodes
could only carry a limited number of cameras at any given frames per second
requirement, and that only a limited number of cameras could be used on any
57. An email dated January 5, 2004 between Fitzpatrick and MacDonald indicates
that work on the First District pilot project had commenced. Fitzpatrick asked if
MacDonald would like to start the installation of the MESH Technology to get the
58. An email dated January 21, 2004 indicates that CamSoft was simultaneously in
Police Department (“BRPD”) headquarters. Mike Murphy of the BRPD noted that
demonstration system in Baton Rouge was not specifically built for surveillance
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cameras, but rather to demonstrate the other useful Police Laptop features.
Thus, CamSoft was not only simply selling a wireless video surveillance system
application, but rather a more purposeful and powerful governmental wi-fi data
59. During Pilot Project’s actual installation and testing, CamSoft further learned
valuable trade secrets. For example, given that the City of New Orleans
expressed a design requirement for 7 frames per second (“fps”), CamSoft learned
that the Tropos equipment alone, and as deployed in the Pilot Project, was not
with the Tropos equipment. Pilot Project testing further revealed that a
with the MESH Technology, could achieve the desired 7 fps, while also providing
the police with “hotspots” for Police Laptop connectivity. This combination
involved the connection of the crime cameras to certain Tropos node ports,
wireless network design following the Pilot Project allowed for a cost effective
solution that could both wirelessly connect the surveillance cameras and also
provide police departments with “hotspots.” From these hotspots, officers could
connect their Police Laptops and PDAs to the network for direct, remote control
applications. After the conclusion of the Pilot Project, no other wireless video
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magnitude. Accordingly, CamSoft’s wireless video surveillance system network
60. On January 30, 2004, Drake notified MacDonald that, “Mark (St. Pierre) loved the
the New Orleans litigation that neither he, St. Pierre nor any other MOT
surveillance system network prior to the Pilot Project. Drake further admitted
that the design of the system was solely that of CamSoft, Active Solutions and
Southern Electronics.
61. During the Pilot Project’s deployment, and after successfully demonstrating the
system’s capabilities with CamSoft’s own equipment and labor costs, Fitzpatrick
Electronics for inclusion in the overall project. In an email dated January 30,
2004, MacDonald wrote Fitzpatrick and Perrin and stated that CamSoft had no
the Tropos equipment to Southern Electronics for inclusion in the crime camera
system. MacDonald directly stated that if part of the camera solution was to
provide wi-fi to the police cars with Tropos equipment, then CamSoft would be
CamSoft had planned and designed the wireless network from the start,
including configuration of the network, and that CamSoft had put many
stated that the profit margin on the equipment sales alone was not enough to
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cover CamSoft’s expenses. Most importantly, MacDonald stated that CamSoft
would protect its proprietary knowledge and trade secrets learned during the
camera deployment. CamSoft expressly stated that it would not simply hand
noted Bellwether, Commtech or anyone else, except for the NOPD employees
partners for business in New Orleans by using the company’s knowledge and
the city employees because MacDonald needed his client to know how the
system worked, including its advantages over competing products, and more
specifically, did not see his client, the City of New Orleans, or its employees, as a
CamSoft and MacDonald remained entirely unaware that the MOT Employees
62. Despite CamSoft’s status as the Tropos reseller, and MacDonald’s original
intention to deploy the MESH Technology for Police Laptop deployments prior to
advised MacDonald that Fitzpatrick would bring MacDonald “up to speed” on the
we [CamSoft] have always been targeting police car access, months before you
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and I even talked….so this needs to be a team effort, not your effort.” While
Fitzpatrick may have had the intent to change the parties’ relationship,
MacDonald clearly viewed himself as part of a team effort rather than merely a
subcontractor.
63. Following MacDonald’s January 30, 2004 email and February 9, 2004 email,
their differences. The parties agreed that CamSoft, Southern Electronics and
response to the City of New Orleans’ crime camera request for proposals process
(“RFP”). The parties agreed that CamSoft would design, install and provide the
parts of the crime camera system as demanded in MacDonald’s January 30, 2004
parts to work with its wireless network; and Southern Electronics would act as
the prime, coordinating contractor. The parties further agreed that Southern
Electronic’s name only, given the subjective nature of the RFP process and
Southern Electronics’ seventy (70) year history in New Orleans. The parties
further agreed that Southern Electronics would coordinate all billing and
properly relay payment to CamSoft and Active Solutions accordingly to their pre-
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parties not be awarded the contract, CamSoft remained subject to financial loss
associated with the Pilot Project. Each party further agreed that they would
independently profit from the type and amount of services that each party would
64. On February 16, 2004, CamSoft continued its email communications with Baton
Rouge city officials regarding the deployment of the Tropos MESH Technology
65. In an email dated February 17, 2004, Kim Fury, a representative of Dell, noted
that Dell’s relationship with the City of New Orleans had improved under
Meffert’s tenure as MOT CTO. After CamSoft, Active Solutions and Southern
video surveillance solution, Ms. Fury noted that Meffert “is also throwing in a
video surveillance piece that he will pull from the street if we can provide it.”
(Emphasis added) In other words, if Dell could sell the crime camera technology,
Meffert would identify the technological parts to the solution’s overall design.
66. After the Pilot Project, CamSoft knew that a single MESH Technology deployment
could not handle the entire crime camera project. Rather, the MESH Technology
would have to be purposefully built for crime cameras, with a separate wide-
MacDonald, Drake and St. Pierre. In preparation for the meeting, CamSoft even
allow police officers to pull up mug shots via their Police Laptops. The existing
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police communication system could not handle these new types of applications
CamSoft.
67. In a March 10, 2004 email, MacDonald sent an email to Drake and St. Pierre at
their MOT email addresses thanking them for allowing CamSoft the opportunity
Pierre replied from his MOT email address, “Thanks to all of you for taking the
representatives of the City of Baton Rouge regarding the city’s desire for a
69. On March 17, 2003, MacDonald contacted Belinda Miller with the Louisiana
Office of State Purchasing (“OSP”) regarding how CamSoft could place its MESH
City of Baton Rouge had requested that CamSoft get its products on state
contract. Ms. Miller replied with a link for administrative procedures. She also
and determined that the sale of the Tropos’ equipment and other video
surveillance equipment was not legal under the State’s Name Brand
discussed later, Dell employees would later learn that sale of the wireless video
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surveillance technology was not permitted through the LANBMPC, but decided
to market and sell the technology to state and local governmental agencies via
70. On April 19, 2004, Tropos drafted a press release regarding the development of
a wireless video surveillance system in New Orleans. Notably, the draft press
well as Active Solutions and Southern Electronics, as the wireless video solution
providers.
71. On April 22, 2004, the City of New Orleans selected the joint proposal of
72. After the City of New Orleans accepted the joint proposal from Southern
Electronics, Active Solutions and CamSoft, the parties further agreed to jointly
market their crime camera solution to the City of Baton Rouge. Given CamSoft’s
prior contacts with City of Baton Rouge officials, the parties agreed to keep the
terms of their arrangements the same, except that CamSoft would act as the
73. In regards to the April 19, 2004 Tropos press release, on April 26, 2004, Drake
sent MacDonald an email wanting the contact information for Tropos. Drake
told MacDonald, “Don’t take it personally, but this is about more than cameras
upset by the whole thing, not just particular comments. Tropos is either a team
player or they are not on the team. That simple.” CamSoft alleges that Drake
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was upset about the press release because CamSoft was getting the media
coverage instead of the MOT Employees. Moreover, this email evidences the
abuse of power and authority MOT Employees would exercise in order to obtain
subsequent reciprocal dealing and tying arrangements for the benefit of the MOT
74. On April 26, 2004, Perrin sent Drake an email and carbon copied Fitzpatrick and
Solutions, Southern Electronics and the MOT Employees, through their private
Project. CamSoft was entirely unaware of the behind the scenes arrangement
CamSoft alleges that Perrin, Fitzpatrick and Burkhardt had absolute knowledge
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knowledge and trade secrets relative to the design and use of the MESH
Technology developed and deployed in the Pilot Project. CamSoft further alleges
protect his trade secrets, later provided the working details of the CamSoft’s
75. On June 10, 2004, Drake wrote Steve Renecker (“Renecker”), an employee of Dell
charged with the responsibility developing Dell’s Public Safety and Criminal
Justice Division. Drake wrote, “I have been working since we met regarding the
packaged format for you to look at…We would love some input from you as to
how we could package this into something you and Dell would be interested in
working with us on…If you decide to pursue this and we can develop the Dell
conference.”
76. On June 14, 2010, Renecker replied, “Currently, I am trying to build the facility
surveillance business here at Dell and was starting with camera and video
software companies. I like the approach you have taken there in New Orleans.
you work exclusively with Tropos or are you open to working with Mesh
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acknowledgement of Tropos evidences that Renecker and Dell knew that the
Pilot Project involved Tropos’ MESH Technology, and that a Tropos reseller and
integrator was likely involved in the design of the Pilot Project’s wireless MESH
Technology network.
77. On June 14, 2010, Drake replied to Renecker, “That sounds great. I will start
planning a meeting for the 8th or 9th of July and let you know what looks
not a “core” partner. They have worked very well for us and we have their
products in the field, working very well.” (Emphasis added) This email clearly
78. In an email dated June 20, 2004, Renecker wrote regarding video surveillance,
solutions (maybe 2-3 pan/tilt/zoom cameras) and then engage Dell Professional
Services to be the installer.” While Dell had the ability and connections to sell
the bundled computer equipment across the world, Dell recognized that an
integrator was necessary to perform the actual in field design, testing and
sought to fill the role of integrator, the very role played by CamSoft in the July 19,
2004 Contract.
79. On June 23, 2004, the City of New Orleans issued Executive Order CRN 04-02,
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procuring professional services through the RFP process. Meffert now had the
80. On June 25, 2004, CamSoft submitted an inquiry to Anne T. Falgout with the City
of Lafayette regarding CamSoft’s desire to build out a free wi-fi area in Lafayette,
similar to the free wi-fi deployment in Baton Rouge and New Orleans. This
81. On July 5, 2004, Drake wrote Renecker of Dell, “Imagine [Consulting] e-mail
account acting up tonight. Sending from home account. July 8th is a go. I have
everyone ready to work with you that morning…With regards to Mesh, I have
purposefully kept the Tropos guy out [MacDonald] of this set of meetings. As
I said, they are not a core team member for use anyway. They just made the
most sense in the New Orleans situation.” (Emphasis added) Drake further
Burkhardt through Active Solutions. CamSoft further alleges that Dell clearly
knew that there was a wireless integrator purposefully being kept out of these
discussions. Despite this knowledge, Renecker and Dell made no effort, and gave
no concern, relative to determining the true role of the “Tropos guy,” who as
purposefully left out of the meeting, in designing the wireless crime camera
system.
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82. On July 8, 2004, Dell officials flew into New Orleans and conducted a meeting
with Drake, Hodges, St. Pierre, Fitzpatrick, Burkhardt and Perrin (“July 8, 2004
network designs for the wireless video surveillance system during the July 8,
2004 Meeting. Active Solutions’ responses are further consistent with Drake’s
testimony in the New Orleans trial, where Drake testified that Fitzpatrick
Drake also testified that Fitzpatrick was very vocal about protecting their
already agreed upon joint venture to further market the system to the City of
Baton Rouge.
83. During the July 8, 2004 Meeting, participants agreed that Southern Electronics
and Active Solutions would provide its surveillance camera to Dell for bundled
prime contractor and integrator, and further use their status and power within
MOT to sell other municipalities and funnel in-coming business referrals from
MOT; and Dell would sell the total surveillance solution, including all bundled
equipment and software, via its state contracts, WSCA contracts, GSA vehicles, or
proposals.
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84. Ultimately, Tropos further agreed to participate in the overall sales scheme by
(1) either permitting the MOT Employees and their Private Held Companies to
resell the equipment to Dell for subsequent resale, or (2) directly licensed Dell as
and willfully kept secret from CamSoft and MacDonald their business
arrangements with the MOT Employees and their Privately Held Companies and
Dell. This is further despite Tropos’ direct knowledge that CamSoft designed the
wireless network for the crime camera system application during the Pilot
emails, and Allen Carr (“Carr”), a Tropos employee, even flew into New Orleans
and physically observed the Tropos equipment limitations during the Pilot
Project.
85. CamSoft will on occasion refer to all the members of the Dell agreement as the
Companies, Tropos, Carr, Ron Sege (“Sege”), Chief Executive Officer of Tropos,
Dell, Dell Marketing, L.P. (“Dell Marketing”), Renecker, Heather Smith (“Smith”),
another Dell employee, Billy Ridge (“Ridge”), another Dell employee, and Ciber,
Inc. (“Ciber”). CamSoft will further discuss the respective roles played by Sege,
Dell Marketing, Smith, Ridge and Ciber as the chronology of events unfolds.
86. It was not until September 16, 2009 that MacDonald first learned of the secret
were misappropriated and disseminated. CamSoft alleges that the Dell Alliance
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Members did knowingly, unfairly, intentionally, deceptively and fraudulently,
withhold the nature and existence of the July 8, 2004 Meeting from MacDonald
and CamSoft. While falsely posing as direct employees of the City of New
Orleans, and not otherwise identifying their true association with Imagine
the City of New Orleans, which city and employees owed a duty to not
process of law.
87. On July 19, 2004, Southern Electronics consummated the contract with the City
of New Orleans on behalf of both Active Solutions and Southern Electronics (“the
July 19, 2004 Contract”). Again, by July 19, 2004, CamSoft, Active Solutions and
subcontractor agreements. CamSoft still bore a risk of financial loss if the July
88. The following day, on July 20, 2004, Active Solutions surreptitiously executed its
during the July 8, 2004 Meeting. However, in an email dated that same day,
between CamSoft, Active Solutions and Southern Electronics to market and sell
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89. On July 21, 2004, Southern Electronics surreptitiously executed its non-
90. On July 26, 2004, Imagine Consulting executed its non-disclosure agreement
with Dell in accordance with the parties’ discussions during the July 8, 2004
Meeting.
91. An email dated August 17, 2004 evidences CamSoft’s continued direct
BRPD Headquarters.
92. On July 29, 2004, Michael Dorman, Southeast Regional Sales Manager for
towards using Motorola’s line of “Canopy” products during the July 19, 2004
Contract deployment. This email is significant because Drake will later issue
wireless video surveillance system based upon the wireless network designed
93. In an email dated August 24, 2004, Drake wrote Renecker and specifically stated
that Imagine Consulting is looking for mid-size to large jobs using either Dell’s
direct purchase vehicle (i.e. state contract, GSA, etc.) or at least a subject
94. In furtherance of their purported joint venture to sell their video surveillance
system to the City of Baton Rouge, on August 25, 2004, Perrin sent MacDonald
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information regarding camera pricing for his inclusion in the joint proposal by
95. On August 30, 2004, St. Pierre filed articles of organization for NetMethods, LLC
the New Orleans trial that while Imagine Consulting competed for wireless video
for said business outside of New Orleans. Presumably, this is Meffert’s defense
credit card benefits and consulting fees from NetMethods, despite evidence that
96. CamSoft further alleges that the other MOT Employees’ were particularly and
these templates I can use to build out the NetMethods site." He listed two
template links for Meffert’s consideration. Of the second link, Domke noted that
"Mark [St. Pierre] likes this… I have plenty more if you don't see one you like."
97. On August 31, 2004, MacDonald sent Mike Murphy of BRPD pricing information
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98. On September 9, 2004, Charbonnet, a MOT Employee, sent Perrin an email
that CamSoft was on schedule to begin the initial camera installation in the Sixth
District. He further noted that three (3) cameras were installed the week before.
Once the deployment of the Sixth District cameras began, MOT Employees,
networking design for wireless surveillance cameras, CamSoft alleges that these
99. After Active Solutions and Southern Electronics struck their deal with the MOT
Employees/Imagine Consulting and Dell, Perrin asked MacDonald for the very
first time to change the parties’ original agreement and sign a subcontractor
cameras under the July 19, 2004 Contract, an email dated October 10, 2010
indicates that the parties had still not yet come to an agreement. Notably,
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agreement, MacDonald refused to sign it. In fact, after Perrin’s request that
Ultimately, MacDonald advised Perrin that he would not sign the proposed
change the parties’ original agreement. At all times thereafter, CamSoft did in
good faith fulfill its role in joint venture agreement by designing, installing,
maintaining and servicing the wireless component parts of the New Orleans
100. On October 15, 2004, Perrin provided MacDonald with camera pricing
information for Southern Electronics and Active Solutions’ portion of their BRPD
crime camera proposal. Through his prior established contacts with BRPD,
Fitzpatrick, Perrin and Drake. Drake requested that he attend the meeting in
Orleans. As later discussed, Drake was not there to help CamSoft, but rather to
make connections for his later, secret meeting with Baton Rouge officials on
101. After giving CamSoft pricing information for their BRPD proposal, on the
same day, October 15, 2004, Perrin advised Drake and Meffert that Sony wanted
developed in New Orleans. Perrin wrote, “I think this may be the opportunity we
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need to get some really good national exposure.” Meffert replied, “This sounds
great. I would follow the model that Cisco is (sic) where the technology is part of
the vision of a progressive administration, etc. They are using mayor and myself
to highlight their own stuff with credibility.” This email further evidences the
willful, unfair, deceptive and fraudulent behind the scenes arrangement between
venture with CamSoft for the sale of surveillance cameras to Baton Rouge;
knowing full well of their prior deal with the other Dell Alliance Members.
102. On or about November 11, 2004, the recreational division for Pershing
Square Park in Los Angeles, CA selected CamSoft and its wireless subsidiary
company, Verge Wireless, to deploy the Tropos MESH Technology in the park,
103. On November 22, 2004, Drake sent an email to St. Pierre and Charbonnet
Employees could employ in order for the MOT Employees and Imagine
Consulting to take over the crime camera project management from Southern
Electronics. Drake outlined four possible ways of cancelling the July 19, 2004
Contract: 1) Claim that Southern Electronics was overcharging, but Drake noted
that they are not really being overcharged; 2) Make a claim that Southern
concerns, but Drake notes that this argument is flawed because any intellectual
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rights clearly arose prior to the July 19, 2004 Contract; 3) Ask Bellwether
the project, but Drake notes that Bellwether might say “No”; or 4) MOT could
always use the 30 day no-fault clause as a “nuclear weapon.” Drake wrote, “But
if we choose to try to keep the contract in place and use other methods to
achieve our ends, we must work within the terms of the contract if we want
104. This email comports with comments purportedly made by Meffert that the
July 19, 2004 Contract was the largest contract in the city and “we don’t have a
piece of it.” Meffert would consistently use and abuse his power and authority
deals for the financial benefit the MOT Employees’ Privately Held Companies,
which companies Meffert acted as a controlling, silent partner, and from which
105. In an mail dated November 23, 2004, Steven Ellis of Bellwether Technology
arrangements for the camera project are changing, but I do not want to hold up
progress at the 3rd district while we work out the details…We can then figure out
the best possible arrangements for the city going forward.” Meffert replied to
Ellis, “Keep Chris and Michael in the loop to avoid mishap, but I say do it.” In
response, Drake wrote Meffert and Charbonnet, “I’m like you. I don’t want to let
anything we are doing on the other side slow down the rollout. I don’t see any
harm in submitting the order for 3rd [district] at this point. Please advise if we
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should hold up on submitting that order until next week.” (Emphasis added)
Meffert replied to Drake and Charbonnet, “We can roll ahead. But if the
southern guys keep ignoring the changes I laid out, then we do this another
way.” (Emphasis added) These emails clearly establish that the MOT Employees
payment, as a tool of coercion to ensure that the MOT Employees would obtain a
106. In an October 11, 2004 email, Drake requested the logo of Southern
Electronics and Active Solutions from Perrin and Fitzpatrick. Drake did not
request the logo of CamSoft or Verge. Drake’s presentation at the PTI Municipal
WiFi Summit held in New Orleans only mentioned Imagine Consulting, Active
without the CamSoft or Verge logo, on November 18, 2004, MacDonald wrote
Drake, “Hi Chris, I found this power point on the web and noticed all the partners
were listed, but Verge was no where to be seen. Was this an oversight or did we
include all the players and logos if available…What is Imagines (sic) contact
would add the Verge Logo to the partners sections of your presentation.”
(Emphasis added)
107. In an entirely false and deceptive response, Drake wrote, “Carlo Many
apologies…I assure you it was not even an oversight. Your logo was on the one
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that I presented at the conference. Somehow the version that got to the guy that
has to upload them to the web site was missing it. Not sure how that happened.”
Considering the previous agreement between the Dell Alliance Members, Drake
MacDonald on his failure to include the logo on the presentation. This email
associated with Imagine Consulting, then MacDonald would not have had to ask
108. In furtherance of the MOT Employees’ efforts to take over the project
management roles of the July 19, 2004 Contract, Meffert wrote Fitzpatrick,
Perrin, Drake, St. Pierre, Mayor Nagin and Charbonnet in a November 29, 2004
email. Meffert outlined the exact steps that Active Solutions and Southern
Electronics must take or Meffert would find the July 19, 2004 Contract in breach.
recommendation more even distribution of work load to all the subs of the
evidences the MOT Employees’ conspiracy to disrupt the July 19, 2004 Contract,
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particularly in light of Drake’s corresponding email to St. Pierre and Charbonnet
on November 22, 2004 outlining the four (4) ways to terminate the contract.
109. In furtherance of the MOT Employees’ conspiracy and efforts to take over the
project management roles of the July 19, 2004 Contract, St. Pierre paid Meffert’s
membership dues in a New Orleans Mardi Gras parade in the amount of $6,800
110. A December 22, 2004 American Express credit card statement further
indicates that St. Pierre had already issued Meffert a NetMethod’s credit card in
Meffert’s name. Meffert used this NetMethods card for his personal benefit.
Credit card payments through July of 2006 resulted in Meffert’s use of the credit
card in excess of 600 times for total charges of approximately $130,954.70. The
credit card charges included personal related items such as vacations, clothing,
gentlemen’s clubs, jewelry, health food, gym memberships, movie tickets and
visits to Chuck E. Cheese. These credit card payments, along with a later
Meffert’s company, Logistix, LLC (“Logistix”), are the subject of multiple counts
held in the name of Linda Meffert, Meffert’s wife. This too is the subject of the
pending federal indictment. CamSoft alleges that St. Pierre did knowingly pay
these bribes in exchange for Meffert’s beneficial power, authority and influence
as MOT CTO, and for the mutual benefit of the MOT Employees and their
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111. After issuing the November 29, 2004 email regarding breach of the July 19,
copy of the letter. CamSoft alleges that this letter was drafted in full expectation
to cancel the July 19, 2004 Contract, unless Southern Electronics, as prime
112. Following the July 8, 2004 Meeting, Dell took steps towards selling its
Alliance (“WSCA Contract”). Dell Marketing agreed to abide by the terms of the
WSCA Contract for the sale of computer equipment and peripherals according to
a fixed Master Price Agreement. On December 20, 2004, Denise Lea, Director of
Contract Manager for Dell Marketing, entered into a separate contract whereby
computer products and services from Dell Marketing under the terms and
conditions of the prior WSCA Contract (“December 20, 2004 Contract”). The
software purchases compliant with La. R.S. 39:1990 and LAC Title 34, Chapter
55, Section 5505. Given the close working relationship and overlapping
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employee duties related to the business development for Dell and Dell
113. Ultimately, Dell and the other Dell Alliance Members would knowingly,
solution to Louisiana state and local governments that was not otherwise
permitted under the August 26, 2004 WSCA Contract or Dell’s December 20,
2004 Contract. CamSoft further show that that Ciber and the MOT Employees’
114. CamSoft further alleges that the Dell Alliance Members did knowingly enter
into this agreement with the specific intent to unlawfully affect competition for
the sale of wireless surveillance equipment to Louisiana state and local agencies.
The Dell Alliance Members did with specific knowledge and intent illegally sell
circumvention of state public bids laws; thereby, harming all competition for
115. In an email dated December 20, 2006, Drake informed MacDonald that
the Sixth District. Charbonnet, and all other MOT Employees, did intentionally
with CamSoft and MacDonald. The MOT Employees did willfully, intentionally,
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unfairly and deceptively gain valuable proprietary knowledge of CamSoft’s
relative to the types, brands and specifications of wireless products used in the
CamSoft alleges that the MOT Employees did knowingly and deceptively
misappropriate this knowledge for the direct financial benefit of the Dell Alliance
116. On January 6, 2005, MacDonald contacted via email his contacts for the Los
Angeles Pershing Square Park wi-fi deployment, Curtis Gibbs and Bruce
Hammer. MacDonald informed the two men that CamSoft and Verge would bid
on a West Hollywood RFP for public wireless access. MacDonald wrote, “And
this would plug into the Verge Wireless Hot Zone in the city as well. Good start
for a city wide Public Wi-Fi network.” Interestingly, on the same date, January 6,
2005, Drake sent an email to Fitzpatrick, Perrin and Burkhardt regarding their
possible joint proposal for the West Hollywood RFP. Drake wrote, “Short fuse.
Want to bid?...Partner with Tropos for the mesh?” This emails evidences the Dell
Alliance Members’ intent to use CamSoft’s valuable trade secrets and proprietary
directing against MacDonald and CamSoft across the entire United States.
117. On January 1, 2005, Melvin “Kip” Holden (“Mayor Holden”) was sworn into
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as his executive assistant. Mayor Holden retained the services of Evans as Baton
Canopy” sign-in sheet dated January 17, 2005 evidences Drake’s meeting with
officials within the newly elected Holden administration. The sign-in sheet
118. MacDonald and CamSoft were entirely unaware of this meeting until just
within the City of Baton Rouge. During this meeting, Drake, on behalf of
NetMethods and the Dell Alliance Members, claimed that Drake and NetMethods
employees were the designers of the wireless video surveillance systems in New
Orleans. Drake did further indicate that they were working with Dell and the
other Dell Alliance Members to package and sell the same wireless surveillance
system on Dell’s December 20, 2004 Contract. Drake stated that this would
make procurement much easier, which would not require Baton Rouge to issue
an RFP.
119. CamSoft alleges that Drake’s surreptitious meeting on January 17, 2005,
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but worse, a knowing, willful and malicious attempt to harm CamSoft’s business
120. CamSoft further alleges that, despite the joint venture agreement between
Active Solutions and Southern Electronics to sell and market the video
surveillance system to the City of Baton Rouge and BRPD officials, and despite
their joint presentation on October 15, 2004 to BRPD officials, Active Solutions
and Southern Electronics had direct knowledge of Drake’s January 17, 2005
Meeting and Drake’s subsequent business dealings with the City of Baton Rouge.
In fact, after reviewing the New Orleans litigation pleadings and facts in
discovery, CamSoft now knows that Perrin and Fitzpatrick actually brought suit
Dell Alliance Members, and not for damages arising from the interruption of the
121. In order to provide a funding source for St. Pierre’s newly created company,
NetMethods, Meffert used his power as MOT CTO to strike reciprocal dealing and
tying arrangement with Ciber, Inc (“Ciber”). Meffert would approve Ciber’s
invoices to the City of New Orleans. These invoices would include charges for
work performed by NetMethods. Ciber would then funnel the money from the
respectively. The federal indictment against Meffert alleges that this money was
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122. On or about February 1, 2005, Meffert approved payment to Ciber in the
amount of $155,231.40, which money was then used to pay either NetMethods
or Imagine Consulting.
123. Despite CamSoft’s wi-fi deployments in Baton Rouge, New Orleans and Los
3, 2005 email, “Sounds like you guys are squarely positioned where you
Dell Alliance Member and sell its products via Dell’s WSCA Contract and
December 20, 2004 Contract in Louisiana. In fact, Tropos will later offer
Katrina. Tropos, Carr, Sege and the MOT Employees initially saw a symbiotic
relationship, whereby Drake and Meffert could further their careers in municipal
wi-fi, while Tropos reaped the financial rewards of Drake and Meffert promoting
their products to officials at the local, state and national level. Unsatisfied with
conferences and hearings, the MOT Employees would ultimately recruit Tropos
124. On April 7, 2005, MacDonald reached out to his contact at the BRPD to
Entirely unaware of Drake and Stevenson’s January 17, 2005 Meeting with Baton
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Rouge city officials, MacDonald wrote Murphy, “Did we get you enough
information? Drop me a line if you need more info.” Murphy replied, “Too much
information at this point would just confuse them.” MacDonald wrote, “Do you
have a time frame on this deployment?” Murphy replied, “None at all. This was
125. In an April 10, 2005 email, Renecker of Dell asked Patti Laura, another Dell
(“DISP”). Renecker’s request for DISP status was intended to allow Dell to the
sell computer equipment on its WSCA and/or state contracts while permitting
126. On April 6, 2005, Ridge of Dell asked Chuck Boorman, another Dell employee,
“Can we sell cameras via NASPO for video surveillance applications?” This email
was copied to Renecker. Boorman replied to Ridge, Renecker and Smith, again
Dell’s employee in charge of sales under Dell’s December 20, 2004 Contract,
replied, “Are cameras spelled out, or are all S&P items excluded. I am working to
get Sony cameras added to S&P.” “S&P” stands for a supplier of software and
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purchasing and the purchasing agency and be on Dell’s Retail Price List with out
the work camera in it. Suggest you work with Heather if this one is in LA.”
for the State of Louisiana at the moment. Is there any way to see about testing
the waters with adding ‘Optical Surveillance Devices’ which are IP based
network devices for the LA contract. This is very different than a consumer
grade digital camera.” (Emphasis added) Smith replied, “What is the device
called when listed on the price list? Is it listed on the price list already? We can
sell under the normal LA NASPO/WSCA contract anything on our price list that is
not called a ‘camera.’ Thus, if the item isn’t on the price list, we get it on there
without the work ‘camera.’ If it already is on the price list, we determine if the
name contains ‘camera’ and if not, we’re all set. If it’s on the price list and called
a ‘camera’ then we can’t sell it and I’m not sure if we can make changes to names
127. CamSoft alleges that Dell, Renecker, Ridge and Smith did conspire to illegally,
directly sell the wireless video surveillance solution to Louisiana state and local
governmental agencies via Dell’s December 20, 2004 Contract. CamSoft will
further show, and does hereby allege, that Dell knowingly created misleading
names on Dell’s invoices to intentionally conceal the true nature of the products
being sold as part of Dell’s wireless video surveillance solution, including both
Imagine as a Dell Integrated Solutions Provider (DISP) which will allow Dell to
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prime deals and use Imagine as the subcontractor for projects…Billy Ridge has
indicated an opportunity for the State of Louisiana which we would like to prime
with Imagine. Are you still partnered with ONSSI and Southern Electric?” Upon
information and belief, the State of Louisiana opportunity was for a wireless
video surveillance system for the Louisiana State Police headquarters, which Dell
sold through its December 20, 2004 Contract. Drake replied, “Yes we are
focus on our company and we get calls daily from Federal, State and Local
non City of New Orleans business and it is doing mostly camera business
continue to put this type of work just to maintain a separation from our City of
New Orleans work for various corporate reasons.” Drake’s email further noted
that NetMethods would bid a proposal for wireless video surveillance cameras
for the Austin Independent School District “with another large IT integrator that
we are working with on other opportunities.” This large IT integrator was Ciber,
with whom Meffert had already funneled business to the MOT Employees’
millions of dollars in additional business to Ciber pursuant to the June 23, 2004
129. In a string of emails between Dell officials dated April 21, 2005 through April
27, 2005, Renecker and Ridge attempt to persuade Patti Lara of Dell to add
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Imagine Consulting as a Dell DISP. Ridge noted regarding wireless video
surveillance, “We definitely want to be in the business as these deals are driving
Ridge further wrote, “Imagine is the premier vendor for this work because of the
# of systems they have designed and deployed. We will need to be the prime
because of our [state] contracts however we need Imagine to help us win and
deliver the business.” Lara asked for Ridge to value the business opportunities
booths & admin bldg. $100K 2) Dept. of Transp. & Development – Ferry Boat
surveillance on light rail system.” When Lara attempted to steer the business to
an existing services provider, CompuTrac, Ridge wrote, “They are not in the
video surveillance market. Imagine has the largest municipal deployment in the
US. Others are working to model what has been done in the City of New Orleans.
emailed Patti Lara and wrote, “Video Surveillance is an emerging Public Safety
solution for Dell…We plan to add Sony IP cameras into S&P soon, leaving
installation, software and integration as the only pieces of the solution we do not
offer…I estimate the addressable market at $250M per year ($100M likely from
Dell) with a current market share of less than 1% from Dell. Imagine would be a
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130. On April 27, 2005, St. Pierre organized Method Investments, LLC. Method
purportedly worth approximately $300,000, the “Silicon Bayou,” for the benefit
of both St. Pierre, Meffert and the other MOT Employees. Meffert did publicly
proclaim his ownership interest in the yacht. In emails, Meffert wrote, “had the
consultant, asked, “Did your offer for the boat go through? It would be a great
stress relief for you.” Meffert replied, “Yes dear it did. It’s mine baby!” This
yacht was allegedly purchased with proceeds received from the illegal reciprocal
dealing and tying arrangements with Ciber, which fleeced millions of dollars
131. On or about May 12, 2005, Meffert approved payment to Ciber, which money
132. Switching back to the July 19, 2004 Contract deployment, in an April 28,
2005 email, Perrin wrote Charbonnet and Drake, “FYI, I was reviewing things for
our end of year and noticed that we only have 35 cameras deployed under the
original contract with the city. In order to hit 120 cameras in the 1st year, we will
installed the wireless network for all 35 of these cameras. Moreover, CamSoft
was consistently called upon to maintain and service these cameras after
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CamSoft further alleges that reduced camera orders and slow payments were
Contract.
133. Eventually, the MOT Employees, through their Privately Held Companies,
conspired with Dell to even remove Active Solutions and Southern Electronics as
Dell Alliance Members. Again, it was Meffert’s intention to terminate the July 19,
and crime camera system for Baton Rouge, on May 20, 2005, CamSoft emailed
Barry Rider, a Baton Rouge city official, CamSoft’s cost estimate for an
around East Baton Rouge Parish via a wi-fi system. Ultimately, Baton Rouge
135. After working with Ciber on the Austin ISD video surveillance project,
according to Executive Order CRN 04-02. This contract furthered the reciprocal
dealing and tying arrangements already in place; whereby, Ciber would hire the
invoice the City of New Orleans for the work of the MOT Employees’ Privately
Held Companies. The City of New Orleans would in turn pay Ciber, who would
then pay the Privately Held Companies. In exchange for the reciprocal dealing
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and tying arrangements, St. Pierre allowed Meffert to spend hundreds of
136. An email dated June 27, 2005 from Meffert to Drake, St. Pierre and Hodges
and requested that Drake give him feedback on an email that Meffert intended to
Meffert wrote, “As you already know, the city of New Orleans has worked very
hard and gone very far in terms of different camera solutions to address inner
city crime. In that time, we have learned much of what does and doesn’t work in
the long run.” Meffert wrote this email for the purpose of negotiating contracts
work for the City of Chicago through the subcontracting agreement with
NetMethods. This email is further significant because it shows that the MOT
Employees were also working with Cathy Adduci of Unisys, a very large, national
develop for Unisys a wireless video surveillance system design based upon the
137. On or about June 30, 2005, Meffert approved payment to Ciber in the amount
Consulting.
138. In an email dated July 13, 2005 from Drake to St. Pierre and Hodges, Drake
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to handle them. I told Steve Renecker what we are mainly interested in is the
type of deal where someone asks Dell for help with a camera solution and they
139. On or about July 28, 2005, Meffert approved payment to Ciber in the amount
Consulting.
designing, installing and maintaining the crime camera wireless network, and to
contrast Meffert’s claims that MOT Employees had learned what “does works
employee within NOPD, “We dispatched Verge [CamSoft] yesterday. They are
cameras fully operational.” This clearly shows that CamSoft, and its wholly
owned subsidiary company, Verge, were primarily responsible for keeping the
New Orleans wireless video surveillance systems up and running, and all MOT
141. On or about August 11, 2005, Meffert approved payment to Ciber in the
Imagine Consulting.
142. On August 31, 2005, Hurricane Katrina devastated parts of New Orleans.
Despite the lack of dependable electricity and downed phone lines, CamSoft’s
Mayor Nagin and his staff. The communication offered by the MESH Technology
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made world news. Tropos quickly mobilized its media forces to gain national
its zeal to capitalize on New Orleans’ horrific situation, Tropos offered gratuities
to Drake and Meffert in an effort to gain their testimonial support before media
and Congress.
wireless base station on top of the Entergy building. They can now pipe Internet
gather peoples names staying at the center and so they can begin assisting them
in financial and other basic needs.” Following Hurricane Katrina, local and
federal officials turned to MacDonald, CamSoft and Verge given their prior
MacDonald’s email, “A good summary of what is happening with Tropos gear NO,
etc. Let’s see if any of the cameras claimed to be operating are on the Tropos
mesh. If so, this is the *best* endorsement of the value of mesh in an emergency
every (sic) and should be publicized…Coordinate the press and DC activity, too.
Allen, can you get Vonage WiFi phones to Chris Drake ASAP?”
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145. The following day, Carr wrote Ellen Kirk (“Kirk”) and Sege, “Chris [Drake] has
been tasked by Greg [Meffert] to set up the EOC for the reconstruction effort. He
focal point for materials request at LA State Police. Whatever he needs, the
request will flow to State Police who will complete the procurement. Chris has
handed us the oppty to influence who can deliver wireless broadband mesh
146. In an email dated September 7, 2005, Jeff Turner (“Turner”), a lobbyist with
Patton Boggs in Washington, D.C., wrote several Tropos executives and a third
party venture capital funds supporting Tropos. Turner advised that Senator
Mary Landrieu was working on legislation that would provide $19 million in
funding. Turner lobbied for the word “mesh” in the bill as opposed to “wireless.”
Turner asked whether Tropos had any prior relationship with Baton Rouge
officials. Carr replied, “I only have relationship with admin level in the Police
headed the chamber of commerce, leadership role in the high tech community,
knows the mayor and all other city officials as well…use him as needed. Very
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147. On September 14, 2005, Kirk wrote in an email, “Tropos is partnering with
Orleans, the New Orleans airport, the Mobile refinery in Chalmette, Shreveport,
Baton Rouge, the Houston Astrodome, and the safe haven community in
Gonzales, LA.”
they live?” MacDonald replied, “We are going into the city tomorrow to do some
reviews of the network and get some of the nodes back online. I don’t know
where the camera project is yet, but will shortly…I don’t know if you guys are
149. On September 16, 2005, Gordon Cook of Cook Report reported on a summary
of the wi-fi activity occurring in New Orleans following Hurricane Katrina that
was prepared by MacDonald. MacDonald wrote, “Anyway you look at it, wireless
this story to the guys on the Hill with the money….Look what technology is
150. In a September 19, 2005 email from Turner of Patton Boggs to various Senate
officials, Turner wrote, “I understand from one of my colleagues that you may
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Ron Sege, the CEO of Tropos Networks, will be in Washington on Thursday…As a
brief overview, Tropos has the following underway in the Gulf area now:…2)
151. However, in another email dated Friday, September 9, 2005, Carr wrote
Drake and Kirk, “Chris…nice write up by greg [Meffert] in wall street journal
today.” Drake replied, “We need to discuss data communications needs short
and long term. Please limit the call to a Tropos representative (one of you) at
this point…I need to get a heads up on the status for IACP. I can still go, Greg
152. In a September 20, 2005 email from Sege to Devabhaktuni “Sri” Srikrishna,
Tropos’ founding engineer and a primary share holder, Sege wrote, “Sri, You can
[MacDonald] at Verge is doing more. Use for background but do not distribute.”
153. These internal Tropos emails indicate two things: (1) the hard work of
devastated Gulf South Region; and (2) Tropos intentionally playing both
MacDonald and Drake for maximum media and political exposure, despite the
fact that MacDonald had no idea that the Dell Alliance Members were conspiring
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154. In an email dated September 26, 2005, Ken Belson with the New York Times
wrote to Sege, “Can you send me any contacts for the guys from US Wireless who
would be best.”
155. While MacDonald and CamSoft were leaders in the effort to restore
assistant to Mayor Kip Holden of Baton Rouge. The quotation was for “a 50
Camera Pilot Surveillance System.” Drake wrote, “This system is based on the
very successful New Orleans system that we designed and manage…Along with
just the product, you get our years of experience in making these systems work.”
156. This quotation was initially intended to benefit the Dell Alliance Members,
including Active Solutions and Southern Electronics. And despite the accolades
bestowed upon MacDonald by Sege for his hard work during the post-Hurricane
included Tropos products, clearly establishes that Tropos, Sege and Carr knew
full well that the MOT Employees were intending to misappropriate CamSoft’s
built and deployed by CamSoft in the Pilot Project and July 19, 2004 Contract
deployment.
157. After MacDonald learned that Tropos nodes were being installed in New
Orleans, and also believing that CamSoft was the sole licensed reseller and
installer of Tropos nodes in the New Orleans area, in an October 7, 2005 email,
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MacDonald wrote Carr. Carr replied, “Tropos supplied Chris [Drake] directly
with 25 units…that is what you saw in the EOC…he is adamant that City staff be
used to deploy the network…driving a larger point to FEMA and TELCO’s (sic)….”
158. Tropos at all times maintained that Tropos donated these nodes to help
expedite the Hurricane Recovery effort. As later discussed, the free equipment,
and more specifically those gratuities paid to Drake and Meffert, were primarily
Tropos’ primary competitor, Cisco. In fact, Cisco donated its MESH Technology
to the City of New Orleans, and Drake and Meffert intentionally did not deploy
the Cisco products due to Tropos’ gratuities and status as a Dell Alliance
Member.
159. Entirely unaware of NetMethod’s quotation to Baton Rouge officials for the
response to an email sent by MacDonald to Mike Murphy on July 19, 2005, Mike
Murphy eventually replied months later on October 6, 2005, and wrote, “Sorry it
took so long to get back with you. As you can imagine, things have been a little
crazy here. We are still trying to get off square one with this…Give me a call and
let’s see if we can set something up, if you are not to (sic) busy trying to rebuild
160. Although Baton Rouge officials and BRPD officials were well aware of
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Baton Rouge, and also CamSoft efforts to market the MESH Technology as
asked for a competing bid; nor was MacDonald ever notified that NetMethods
161. In an October 5, 2005 email from Michael Calabrese of New America to Sege
and Turner of Patton Boggs, Calabrese asked if the two men could put him in
touch with Drake for testimony in Congress before Senator McCain. Calabrese
wrote, “I’m open to whoever has the most compelling, hands-on story about the
local public safety benefits of a wireless mesh.” Kirk wrote, “Allen, Ron Can you
each check with, respectively, Chris [Drake], Carlo [MacDonald] and Tony about
their availability to speak at this even in D.C.? We only need one, but we can
162. In response to this request, Sege and Carr chose Meffert and Drake to testify
“Cathleen is having a tough time getting detailed answers on units for NO…I need
the additional 50 units down there next week to continue with the Centeral
Business district deployment…the goal is to create a large thin layer of
coverage with the donated equipment minimizing the possibility of a
[competing] vendor (CISCO/Motorola) unseating us as incombent (sic)…our
window on this deal is very small, competition very tough, the customer is doing
all that they can to assist us and I am asking our team to step up and out of the
box a little. (Emphasis added; Cisco/Motorola comment was not added)
Chris [Drake] and Greg Meffert have agreed to travel to DC the week of the 18th
to support a request from us to testify for Sen. McCain on mesh and 700 Mhz…I
have requested we set other meetings with Sen. Staff for them to stress the
importance of city wide mesh deployment for their reconstruction/repopulation
effort…very powerful if they can say the CBD was built out by the City staff,
providing government and business services with broadband capability in a
matter of weeks when the Telco’s are claiming a year or more to restore
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services…(thus the reason Chris [Drake] is not accepting offers of help from
MCI and other on this deployment, and has asked us to supply professional
svcs [services] direct for supporting City staff…time for us to help the City
shine and we need radios to get r done…thanks, ac (Emphasis added)
163. On October 10, 2005, Kirk asked Patton Boggs to provide, “[A] seemless
hosting experience for Chris [Drake] and Greg [Meffert] while they’re in D.C.”
Kirk also asked another employee at Tropos, Taryn Peck, to coordinate travel
arrangements for Drake and Meffert. An internal Tropos Market Status Report
dated October 10, 2005 further evidenced Tropos’ payment of hotel rooms for
Drake and Meffert, “Secured hotel rooms for Chris and Greg; this may not seem
like a big deal, but it may actually be the accomplishment of the week….”
I can tell you the City’s vision…The City of NO would like to build a city wide
Tropos Mesh using some type of Wi Max wireless backhaul to distribute
bandwidth across the city to feed the mesh. The City nor NetMethods, the City’s
outsource IT consulting firm, (Chris Drake is NetMethods, he is not a City
employee, but manages all of the Mayor’s Office f (sic) Technology on an
outsource contract) has the engineering expertise to design this type of
wireless system. They would like to subcontract this design effort.
NetMethods will do the deployment, setup and configuration using local New
Orleans contractors…they will manage the infrastructure as an extension of the
City’s network…I was with Greg and Chris this week in NO…they are pumped
about the visit. ac" (Emphasis added)
165. According to plan, on March 17 and 18, 2005, Meffert and Drake testified
before Congress and Senator McCain regarding the benefits of the Tropos MESH
166. On October 18, 2005, Carr wrote Kirk, “Usually not a conference [APCO Intl.
3rd Annual Winter Summit] we attend…but given the focus, thought we may
want to capture a few speaking spots…Tropos, MCI, Chris Drake (he has a 5 year
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old would love Disney in Feb)….” This email reflects Tropos’ actions relative to
keeping Drake and Meffert busy on the legislative and technology conference
touring circuits.
167. While Tropos was busy using gratuities to land deals with Drake and Meffert,
MacDonald was desperately trying to get paid for his work on the July 19, 2004
yesterday…Also, I need to know that these invoices are taken care of before I can
168. In another email dated November 12, 2005, MacDonald wrote Perrin, “I can’t
reach you…we dropped everything to help you out a few weeks ago…I am now at
risk of losing two projects because we didn’t do them during the week you
needed us to help you. Please let me know when I can expect some payments
and when I can get paid for some of the $70,000 you already received from the
city.”
169. On or about November 17, 2005, St. Pierre paid Meffert’s membership dues
for a New Orleans Mardi Gras parade in the amount of $700. In fact, between
November 2005 through March 2007 St. Pierre directed the payment of more
170. On December 1, 2005, Drake forwarded a media article to Meffert, St. Pierre
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celebrated French Quarter.” Meffert forwarded the message to Carr of Tropos.
Carr replied, “Ouch! (it hurts so good!)” (Emphasis added) This email further
171. Given that Southern Electronics was not forwarding payments to CamSoft,
and that Meffert had all but stopped the camera deployment under the July 19,
2004 Contract, on December 27, 2005, MacDonald wrote to Perrin, “We need to
talk about the camera project and other work with the city moving forward. Let
me know what your thoughts are and how you want to move forward. I never
doing the work now. I have heard that Chris [Drake] hired some wireless guys
under this own company name, rumor on the street is he is using them to
manage the wifi network in new orleans.” Perrin replied, “Imagine or the
Mayor’s Office of Technology is doing the wifi system in the city. The camera
system is at a standstill until we see further payments. I will keep you posted
when the camera system proceeds.” This email further evidences that CamSoft
and MacDonald still had no idea of Drake’s association with Imagine Consulting
or NetMethods.
Consluting.
173. On January 10, 2006, Carr forwarded a news article written after Drake gave
a presentation at the APCO Intl. 3rd Annual Winter Summit in Orlando, FL.
Internal Tropos documents indicate that Tropos paid for Drake’s flight to this
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conference. After MacDonald independently read the news article, MacDonald
The camera system has nothing to do with the free wifi network built nor was it
ever a part of it. The city took the knowledge and guidance from a vendor
[CamSoft] over the past 3 years and deployed its own network without
compensating that vendor for their knowledge or time…I am curious if the
mayor knows that the network you deployed was the exact thing Verge Wireless
presented to him 3 years ago in his office on my laptop and spent three years
teaching Economic development departments, countless city officials, and travel
and tourism departments of your city, so that when the time is right you would
get complete buy in…I am under the assumption at this point that the city DID
NOT spend any money on the wifi network, as is the public and the
broadband council of Louisiana…[I]f there are dollars being spent on this
network, we would have appreciated an opportunity to assist…I am going to
support TROPOS, because I believe in their model. Their product works and it’s
the best solution for New Orleans, but you already know that. I wont do
anything to harm them or their business, but I am speaking at W2i and Esme’s
conference and New Orleans will come up and I want to make sure what you are
saying is actually what is going on. We don’t need different stories coming out of
New Orleans at this time, we have had plenty of those over the past few
months…I am however disappointed in you, Greg, and the city in the lack of
support for local vendors and the effort of Verge Wireless. From the get go, we
have not been included in any presentations you or your ‘private’ company has
presented, yet other vendors have been included, AKA power points, etc. I am
glad to have helped the city because its good for Louisiana…It is however
with great disappointed (sic), that I would like to let the City of New Orleans
and Southern Electronics know that we will no longer be involved in the
camera project for the city of New Orleans and that all TROPOS purchases
should be directed to another vendor or through TROPOS directly.
(Emphasis added)
174. On January 10, 2006, St. Pierre formed Veracent, LLC. After Veracent was
formed, Kurt, one of the former owners of Imagine Consulting, began his direct
employment with Veracent. Moreover, Veracent now also employed Drake and
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175. Still unpaid by Southern Electronics, on January 13, 2006, MacDonald wrote
Perrin, “We need to get our invoices that we all agreed upon paid…You already
176. Following Hurricane Katrina and the media storm regarding governmental
Congress and the Louisiana state legislature regarding: (1) a municipality’s right
to independently pay for and build out wireless broadband networks for its
with Internet Service Providers (“ISP”), whereby ISPs could build out the
network and pay for access to the city’s electricity, light poles, etc.
177. Seeing another lucrative business opportunity for Meffert and the MOT
Employees’ Privately Held Companies, Meffert used his influence as MOT CTO to
advocate a New Orleans city council ordinance that would grant an ISP a
franchise agreement with the city. Initially, Microsoft, Yahoo and Google were
178. Meffert and the MOT Employees then used their power and influence
with whomever Meffert chose to advocate for the franchise agreement. A city
email from Drake stated, “Basically only main difference is Yahoo wants
NetMethods running the show, Google wants to give it to a WFI or Motorola and
let them sub some pieces of it to NM [NetMethods]. Pluses and minuses both
ways.”
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179. On January 31, 2006, Meffert sent an email to Sege, Carr, Drake, Dave Hanna
Meffert wrote:
Guys, I have worked out the last details and we no longer have to go out for
any competitive bid for this (even for formality like we already told the feds
we were doing). Got everyone from mayor, to fema signed off on this. To help
more, I just got off today with the governor’s chief of staff and even got
additional legislation pushed on the current legislative call for this special
session that even gives more rights to whoever gets this gig…In that spirit, I have
decided to go with Google over the other competitors. Please drop any other
traffic that feeds competitive feeling here out, cut out any noise outside that
could interfere, and we should prepare to send out official appropriate
documents to all when we get the google proposal to move forward in the next
48 hours. Ok guys got the work set over here, let’s rock. Greg.
(Emphasis added) This email is important for a couple of reasons. First, the
bid laws.
180. Eventually, Tropos would advocate to Meffert and Drake that the deal go to
cities. Eventually, Google, Yahoo and Microsoft dropped their plans for building
out the New Orleans’ wi-fi system. Meffert would eventually negotiate through
Tropos the reciprocal dealing and tying arrangements in landing Earthlink the
franchise agreement.
181. Again, switching back to Baton Rouge, on or about February 20, 2006,
Executive Assistant to Mayor Holden. The document more clearly laid out the
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Rouge. This initial deployment ultimately became known as the “Phase I”
with a total sales price of $811,739.51. CamSoft duly notes that nowhere does
the list of equipment in either the “Time and Materials” or “Acceptance and
authorization” section state the word “camera” or identify the Tropos wireless
WSCA Contract restrictions and other LANBMPC restrictions. Knowing full well
that Dell could not legally sell “camera” equipment through its WSCA contract, or
that the sale of Tropos’ equipment was permitted under the OSP LANBMPC, the
Dell Alliance Members did knowingly agree, conspire and act to circumvent the
state public bid laws by knowingly, willfully and illegally selling the Phase 1
182. A second sign-in sheet entitled “Security Canopy Meeting” dated February 23,
183. After CamSoft had already left the July 19, 2004 Contract, in an email dated
February 21, 2006, Meffert and Drake discussed with New Orleans city attorneys
whether the July 19, 2004 Contract could be unilaterally assigned to another
company. The MOT Employees further drafted an entirely new request for
the July 19, 2004 Contract were abandoned. Ultimately, Meffert decided to
circumvent the July 19, 2004 Contract entirely by simply purchasing the bundled
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surveillance camera equipment through Dell’s December 20, 2004 Contract.
Meffert then conspired with Ciber to install the camera equipment by running
the installation charges through Ciber’s contract with the City of New Orleans.
employees. Those prior emails to Sege and Carr clearly indicate that Tropos was
184. Still waiting for an opportunity to respond to a request for proposal issued by
New Orleans for deployment of a large scale multi-use (i.e. public and private)
municipal wi-fi system, MacDonald wrote Meffert in an March 22, 2006 email, “I
am starting a new company with some new individuals and our goal is to build
the very network you are attempting not only in new orleans, but other areas of
the country by assisting cities in obtaining the funding or coordinating the deal
between the googles and earthlinks of the world…New Orleans has to get an RFP
out asap on this network and see who answers…I don’t know how much you
know about me, but Marx suggests you may not know to (sic) much as my
dealings have been with Chris [Drake]…I was upset about all the work we did on
the TROPOS and Intel Deals as well as the camera project only to be pushed
aside…But again, you may not know anything about it as Chris was the one
working that issue.” MacDonald’s comments further evidence his entire lack of
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185. Meffert self-servingly replied, “Carlo, I do not think its ok, when anyone,
much less someone who helped on wifi, are ‘pushed aside.’” I will ask Nicole to
set something up, but I still would like Chris [Drake] and Michael [Charbonnet]
there as I do not see how they would do anyone wrong. BTW, you are about to
see a huge announcement relative to what you discussed but I wills et (sic, set)
Earthlink to deploy the very municipal wi-fi system that MacDonald was waiting
186. On March 28, 2006, Meffert wrote MacDonald and St. Pierre, “Mark, with
things accelerating on this stuff, can you get Chris [Drake] and Michael
[Charbonnet] together with Carlo to see if we have a fit here in what we are
doing? Then we can have meaningful meeting after that?” St. Pierre never
contacted MacDonald. This email further evidences Meffert’s control over the
187. In an email dated March 21, 2006 from Don Berryman (“Berryman”), former
couple of quick questions so we can finish the Term Sheet…Would you be okay
with the city buying a dedicated portion of the network, (say 20%)…so we can
use our current vendors and a known quicker solution with dedicated nodes in
police cars, fire trucks other city vehicles (Tropos 4210’s) that the city would
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sunsetted with our pre-K [Katrina] crime camera network contract, but only
50% done building out the crime camera network. It is a signature show piece of
wants to finish it. It seems it might make things even easier for me to allocate
whatever existing budget money I have for that and FEMA reimbursement
money as part of in kind package and build that at same time.” This email
also evidences Meffert’s control as MOT CTO to interrupt the deployment of the
July 19, 2004 Contract, which Meffert will soon use as a tool to negotiate a
reciprocal dealing and tying arrangement with Earthlink and Motorola for the
188. In a later reply email dated March 23, 2006, Bill Tolpegin (“Tolpegin”) of
Earthlink wrote Meffert and Berryman, “Hello Greg: We’ve spoken to our legal
team (including a local attorney in New Orleans) and they are convinced that the
189. Berryman forwarded this email to Sege of Tropos and wrote, “Ron I’m on a
plane headed to Pasadena but wanted to get this to you…I’ll know more
190. Sege forwarded the email to Carr and Kirk, “Lawyers… Do not forward.”
(Emphasis added) In reply, Carr wrote, “The camera system has already been
bid and is separate from this agreement. Not sure why these are being
connected.” (Emphasis added) The reason for Meffert connecting the Earthlink
deal and the camera deal is clear. Subsequent emails show that Meffert was
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using the July 19, 2004 Contract’s camera deployment as leverage to strike a
191. On or about March 29, 2006, MacDonald learned of Meffert’s deal to let
Earthlink unilaterally take over the wireless networking equipment and assets
owned by the City of New Orleans. MacDonald wrote, “[H]ow can EarthLink take
over equipment and assets owned by the public without putting out an RFP? I
think EarthLink is a great partner, but are you running into a risk that someone
is going to put a thumb on this without proper procedure and protocal? Aka
Bellsouth.”
192. Meffert replied on March 20, 2006, “Man, what the hell are you talking about?
Earthlink offered to help fund the cameras as favor, but it immediately got
spooked by all the demands we got back from contractor. The contract will stay
as is for the most part, but will be hard to fund otherwise. Check your info,
that’s great that they offered, whoever take over the Wi-Fi should try to tie in
some cameras as well…Without an RFP, the other “guys” may try to stop
it…Greg, I don’t care about the cameras other then they are important to the
city, that was never my bag, except for the wireless part. I am a muniwireless
economic issue for any city. Just like I did 4 years ago.” (Emphasis added)
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194. Regarding MacDonald’s comment regarding his lack of “care” about the
cameras, CamSoft would note that it was perfectly willing to purchase crime
wanted to protect its wireless network designs used to connect the crime
fully keep this information confidential. CamSoft believed that other vendors
could expend their own time, money and resources to learn what would and
and Perrin had surreptitiously filed a patent application relative to the design of
the surveillance camera, and had claimed sole credit therein for designing not
only the power connections, but also the wireless component parts of the
dating back to late-2003. This patent application, if granted, would preclude any
196. Moreover, CamSoft further alleges that Perrin, Fitzpatrick and Burkhardt
nature and scope to the New Orleans litigation as it related to the crime cameras.
For example, Perrin, Fitzpatrick and Burkhardt did knowingly and willfully do
the following: 1) falsely stated that the New Orleans litigation was for loss of
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profits relative to the New Orleans July 19, 2004 Contract only; 2) withheld their
and actively intended to profit from Dell Alliance Members’ business dealings
with the City of Baton Rouge; 5) withheld the fact that Active Solutions and
Orleans litigation, which CamSoft and MacDonald did not learn about until these
damage claims surfaced in media reports just days prior to the scheduled New
Orleans trial in October of 2009. CamSoft maintains that these reasons clearly
197. An email from St. Pierre to Perrin dated March 30, 2006, and relative to a
downtown Dallas, shows that St. Pierre and Perrin were still working together
prior emails, Active Solutions and Southern Electronics were obviously unaware
of the MOT Employees’ true intent to fully disrupt the July 19, 2004 Contract and
Members. Notably, the email further evidences the Dell Alliance Members’
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surveillance cameras a “pod” (“Chris/Iggie As we finalize the components of the
DPD bid with Securenet I would like to get specifics on the pods for the job…I
would like Active Solutions to provide the pods (same design as City of N.O.) for
the Tropos mesh…Please let me know how you would like to handle the pods
and Burkhardt, “Iggie, Brian, Brad – NetMethods just pulled out of DPD. Can you
provide the wireless portion (Tropos, etc.) and pods before the April 14th
Electronics clearly knew of the plan to change the name of the wireless video
199. Around this same time, Tropos continued to actively market Drake’s
engagements. On April 6, 2006, Tropos coordinated with Drake for the GovSec
wrote, “Bert That looks great…MCI/Skytel hung out at the airport and said city
seemed too dangerous. They and US Wireless [MacDonald] came in later when it
was ‘safe.’ And half the apps [applications] you list on ‘their’ network are not
there (sic), they are ours. Video surveillance in particular.” This illustrates that
Tropos personnel clearly knew that MacDonald and CamSoft had developed the
video surveillance solutions, but that Drake was now taking credit for the
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Held Companies. Internal documents further show that Tropos paid for Drake’s
200. Ultimately, Kirk of Tropos jointly presented with Drake at the GovSec
presentation in Washington, D.C. While there, Kirk and Drake began having a
extramarital affair that would ultimately lead to Drake, Kirk and Meffert joining
Meffert’s company, Logistix, LLC after Meffert resigned as MOT CTO in July of
2006.
201. In an ongoing effort to provide Ciber with a source of money from the City of
New Orleans to pay the MOT Employees’ Privately Held Companies, on April 16,
2006, Meffert executed two additional contract extensions with Ciber: Contract
respectively.
202. Around the same time, Meffert was also negotiating a reciprocal dealing and
contractual tying arrangement with Motorola and Earthink on behalf of the MOT
deals on behalf of the MOT Employees’ Privately Held Companies, with which he
had a financial interest therein. The New Orleans council’s vote was scheduled
203. Four days before the vote, on May 21, 2006, Drake wrote Sege, Kirk and Carr,
“The feeling is really electric in the City right now. Everyone is calling wanting to
help, etc. We really need to work on EL [Earthlink] and nail down whatever
issues they are having…Also, Allen, I have not heard back from Motorola
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after we submitted our pricing proposal to them for the EL NO job last week.”
(Emphasis added) These emails clearly indicate that Tropos, Sege and Carr, who
had already paid gratuities to Meffert and Drake, were now engaging in the
204. On May 25, 2006, the New Orleans city council voted unanimously for the
Earthlink municipal wi-fi franchise agreement. On May 25, 2006, Kirk wrote
Drake regarding the council vote, “I’m sure you know, but…” Drake replied, “Yes,
I knew. Now comes the bitching. Everyone has their deal lined up except the
guys who put it all together. I’m gonna come unglued here at some point
really soon. I can’t pimp Tropos and Earthlink the rest of my freakin life, and
neither can other folks (Darth Vader) [Meffert] without some ROI [return on
investment]. This is getting out of hand. Allen [Carr] said he would call
Tolpegin back when he gets off the plane to Altanta and let him know that we
will be the holdup on this if EL can’t get a deal done with us and get their
panties out of a wad over the fact that we have worked for the City like right
now… Scuse (sic) me if I don’t join the celebration just yet… C”. (Emphasis
added)
205. In another email, Drake wrote Kirk, “And you can tell Steve Lowe, Ron Sege
and Dave [Hanna] ‘I’m duck hunting in Argentina’ Freaking Hannah I said so.
This is not how one takes care of one of one’s best partners who can hand
deliver something like this. There are bigger networks to be built, but there are
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NO BETTER press opportunities on a GLOBAL SCALE than New Orleans right
now. Sorry, not directed at you, but I am REALLY frustrated.” (Emphasis added)
206. When Kirk asked whether Earthlink or Tropos was the problem, Drake
Minneapolis gig in jeopardy because the (sic) [they] are fritzing around over
our work at CNO. We have every lawyer in the world saying there is no conflict
of interest and they can’t seem to let go. The other issue is the deal with
Motorola. We of course don’t mind being a sub to them, but saying that we
have to get the deal landed before they will work out our piece of it, and then
almost pulled out and believe me if we pulled out (yes even now) the little
light would go read on the go/no-go board…I don’t take credit for much, but
this one thing I know: EL/New Orleans does not happen without NetMethods,
and it does not even become the seed of a possibility without a LOT of work
on my part. FYI, Tropos is now officially “my boy”. As in Chris, your boy Tropos
never responded on the Mayor’s campaign event. Chris, your boy Tropos does
not seem to have a clue what we are doing for them. See how none of these are
Chris, your boy Tropos finally came through? I like Tropos a lot and because
they have the superior product and by far the best marketing machine around
we stay. But one sided relationships don’t work forever, or usually even very
long. And right now it would not take much to get us to roll something else. I
have a dozen donated Cisco radios sitting on our office floor that we stood in
the gap and refused to deploy even when Greg kind of wanted to see them go
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up….Whew, I think I’m a little bitter! But it will all get better if Moto
[Motorola] gives us a good rate on CNO rollout and EL [Earthlink] give us the
Minneapolis pilot pretty soon here.” (All emphasis added) Basically, this email
says it all. Drake’s emails clearly indicate that Drake and Meffert were using
their political power and influence within MOT to position and land more
lucrative deals for themselves and the MOT Employees’ Privately Held
Companies.
207. These emails further show that Motorola and Earthlink were clearly
discussing the use of illegal bribes and kickback arrangements for political
order to secure the MOT Employees’ favorable recommendation before the New
to news agencies that Earthlink contracted with Motorola to build out the
million building out the municipal wi-fi network for the City of New Orleans.
Upon information and belief, Earthlink did not shut down its New Orleans wi-fi
208. On May 25, 2005, the New Orleans city council also approved the payment to
Auditor, the software manufacturer valued the value of the software at only
$100,000 to $200,000. However, Ciber never delivered this software to the City
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of New Orleans. Ciber claims that New Orleans did not get approval for the
charter schools for which the software was purchased. Rather than return the
money, Ciber claims it gave a “credit” to the City of New Orleans for Ciber’s work
on future initiatives. CamSoft alleges that the missing $1,850,000 “credit” was,
in part, used to pay the MOT Employees’ Privately Held Companies. Ciber’s
“gift cards,” “client gifts,” and “golf memberships” to New Orleans city
employees.
209. The Louisiana Legislative Auditor noted that these gratuities, reciprocal
dealings and tying arrangements may have violated Section 14 of the Louisiana
and La. R.S. 42:1115 (prohibiting public servants from soliciting or accepting,
210. Regarding the Dell Alliance Members’ deployment of crime cameras in New
Orleans, on May 27, 2006, Kim Fury wrote Ridge, “In speaking w/Greg [Meffert]-
they need a bunch of the cameras. They don’t want to use the last vendor [i.e.
Active Solutions and Southern Electronics].” Ridge replied, “So talk to St. Pierre
or Chris Drake?” Fury replied, “He [Meffert] said mark st”. Ridge replied, “Will
do.” This email marks the official moment when the MOT Employees and Dell
Members.
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211. As evidence of Meffert’s arbitrary and capricious effort to interrupt the
Contract, Fitzpatrick noted in a June 13, 2006 email that the City of New Orleans
212. In an email dated June 15, 2006, Ridge of Dell noted that a video surveillance
project for the Louisiana State Police Headquarters was not yet completed.
Therefore, it appears that as the Dell Alliance Members did sell a video
surveillance system via Dell’s December 20, 2004 Contract prior to June 15,
2006.
213. On June 27, 2006, Drake wrote Kirk and asked whether Kirk knew Sheila
a bit to do some kind of lock up on wireless ip camera stuff and she is now
just seeing an opportunity. I am clear (sic) they [Motorola] will screw us as soon
as it makes sense for them to.” Ironically, Drake was concerned that Motorola
would “screw” them; yet, Drake had not problem “screwing” CamSoft or
MacDonald. In fact, Drake will later use the valuable knowledge he gained from
CamSoft’s Pilot Project and July 19, 2004 Contract camera deployments to
structure high paying consulting deals for wireless video surveillance design
fact that such large IT Services companies are turning to Drake’s “expertise” in
knowledge regarding the proper design for such wireless (i.e. IP) camera
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systems, as well as the potential value of these wireless video surveillance
designs.
214. On or about June 30, 2006, Meffert ordered no less than 25 surveillance
215. Just before leaving his position as MOT CIO, on July 6, 2006, Meffert approved
216. Only nine (9) days later, on or about July 15, 2006, Meffert left his position as
acting MOT CTO. The day Meffert left his employment Meffert approved
payment to Ciber in the amount of $836,132.20. CamSoft alleges that this money
was then used to pay NetMethods and/or Veracent, both controlled by St. Pierre.
July 6, 2006 and July 15, 2006 may have been designed to, in part, fund Meffert’s
exorbitant $67,000 per month consulting fee arrangement between Logistix and
217. Prior to leaving office, Meffert also appointed as MOT CTO, Kurt, an employee
Ciber and the MOT Employees’ Privately Held Companies, Imagine Consulting,
Veracent and NetMethods, specifically. Kurt was also an owner and managing
218. Like Meffert, Kurt continued to deny or delay the crime camera deployments
pursuant to the July 19, 2004 Contract. Instead, Kurt continued to purchase the
Contract. Kurt continued also to pay his former employer and co-business
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partner, St. Pierre, through Veracent for camera installations made through
Ciber’s contract. Like Meffert, Kurt also approved payment to Ciber without ever
219. CamSoft further alleges that an examination of Dell’s invoices to the City of
New Orleans shows that Dell continued to intentionally not use the word
“camera” in its product descriptions during Kurt’s tenure as MOT CTO. Dell
intentionally withheld the true nature of the surveillance “cameras” and Tropos
wireless networking equipment not otherwise permitted for sale under its
LANBMPC. This evidences the Dell Alliance Members’ knowledge and intent to
illegally sell the bundled wireless video surveillance equipment through Dell’s
December 20, 2004 Contract, except that Southern Electronics and Active
Solutions have now been kicked out of the club. Drake testified during the New
Orleans trial proceedings that Hodges, a MOT Employee, advocated that the
group not use Active Solutions and Southern Electronics so that the MOT
220. On the same date, July 18, 2006, Walter Monsour of Baton Rouge replied to a
prior email with a subject entitled, “RE: SECURITY CANOPY IS A GO!” On July 20,
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221. Despite MacDonald’s continued contact with BRPD officials, particularly Mike
Murphy, not a single person advised CamSoft or MacDonald that Baton Rouge
222. On July 24, 2006, Ed Long, an employee of Dell wrote, “Ziad, this account, City
of New Orleans, needs to have the credit hold lifted. Can you approve and
forward to the correct parties in order to get this order processed? There is also
more to come, as discussed in the past meetings regarding City of New Orleans.”
Considering Meffert’s resignation from as MOT CTO on July 18, 2006, this
internal Dell email clearly evidences that Dell and the MOT Employees,
Ultimately, during Meffert’s and Kurt’s tenure as MOT CTO, the City of New
223. On July 27, 2006, Meffert formed Logistix. Initially, Logistix was supposed to
employ both Drake and Kirk after they left their respective positions within MOT
surveillance design. After Logistix was formed, St. Pierre, through NetMethods,
agreed to pay Meffert a consulting fee of $67,000.00 per month. St. Pierre paid
this “consulting fee” and other American Express credit card charges in exchange
for the business Meffert referred to the MOT Employees’ Privately Held
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$647,426.25 in regular contractual payments from NetMethods. This amount
does not include other expenses paid by NetMethods for Logistix, such as
Meffert’s health insurance, office rent, car lease and legal fees, totaling
approximately $58,000.
224. Still trying unsuccessfully to deploy cameras under the July 19, 2004
Contract, Perrin and Fitzpatrick began direct talks with Kurt, now acting CTO of
MOT. On August 22, 2006 Perrin wrote Charbonnet, “What about Mark Kurt?
Any word on where he wants to go with the project? Should I just tally up all
fees and charges and do a final billing to you guys? Everyone in NOPD seem to
want to attempt to move things forward, however, if the city just can’t afford to
move forward, maybe we should bill everything now and go into a holding
pattern.”
225. As further proof that Dell did knowingly and willfully alter its invoices for the
sale of wireless crime camera surveillance systems through its December 20,
2004 Contract, on September 24, 2006, Ridge of Dell wrote, “We are not allowed
to sell cameras under the WSCA contract so you will have to quote it without the
contract number.”
226. Upon information and belief, on November 16, 2006, Ridge of Dell forwarded
to Brent Lajaunie a faxed order for video surveillance equipment from the City of
Baton Rouge. Lajuanie forwarded same to St. Pierre and Hodges. St. Pierre
replied to Hodges, “Got it. This is for (redacted) [presumably “BR”] to dell, which
means it will be (redacted) [presumably “BR”] to us. I thought this was for
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227. On or about November 21, 2006, Denise Lea, Director of OSP, learned that
Dell was improperly selling surveillance camera equipment off of its December
20, 2004 Contract. Denise Lea issued a OSP Memorandum 07-03 stating that
hubs, network bridges, wireless access points, firewalls and wiring and cabling),
and other equipment used for video surveillance solutions, was improperly
being sold under the states LABNMPC. Moreover, Ms. Lea further stated that
pricing for installation of this equipment could only be used at the time of the
Despite Ms. Lea’s November 21, 2006 Memorandum, Dell knowingly and illegally
continued to sell the wireless video surveillance equipment off its state contract.
228. In an email dated December 14, 2006, Kurt wrote Perrin an email advising
Perrin that Kurt did not intend to purchase all originally quoted 1,000 cameras
from the July 19, 2004 Contract. Rather, Kurt was only intending to purchase a
as a MOT employee on August 22, 2006, wherein Perrin asked Charbonnet for
Kurt’s intentions on moving the July 19, 2004 Contract deployment forward.
Now, Charbonnet is sending emails to Kurt from his NetMethods’ account for
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230. Sometime around January 1, 2007, Kurt even went so far as to request that
Perrin not provide the surveillance camera equipment, but simply install the
cameras. In an email dated January 2, 2007, Perrin wrote Kurt advising that they
would not simply install the cameras as it would constitute a material change in
231. Another invoice from Dell to the City of New Orleans dated January 11, 2007
Dell invoice does not use the word “camera.” In all, New Orleans’ city records
indicate that 53 cameras were purchased from Dell through Dell’s December 20,
2004 Contract. In a later email to Mayor Nagin, Kurt admitted to approving the
232. CamSoft alleges that, despite Ms. Lea’s November 21, 2006 Memorandum 07-
Dell continued to knowingly and illegally sell the wireless video surveillance
233. As further evidence of Meffert’s abuse of power as MOT CTO, and apparently
unhappy with the contract rate Motorola agreed to pay to NetMethods in order
I do not want this VCC-based deal and only reason I have been answering trying
to help here is that it confirms my main reason of where I have believed we can
truly help them [Earthlink]. Not as some two-bit “vote fixer”, but rather as a
long term partner in relating their services to city and state governments,
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and help them address a gaping hole in their approach I saw the first day I met
them…But they obviously think they got governments figured out as something
you just throw a few bucks at to get them to stay out of your way, and nowhere is
this need more clearly shown than how they handle this situation, and continued
sophomoric approach to politics here. I can handle that they still have no clue
how/why New Orleans really happened, gave us zero credit, and that they did
not understand how much we did internally to make the franchise happen in
new orleans. They think it was a couple of city council attorney deals, buying the
old-school pitch all the way…All said, I was ok even when they politely told us to
go to hell hours after they got their franchise …It was their money they wasted
on ‘access guys’ and they didn’t realize I had already worked the deal for
different reasons. They got suckered and paid, but I didn’t care, but we never
pushed a pass-through firm, legal counsel, a donation, never got a damn thing
but grief out of that deal. I did it because the city needed it, and yes I would
even do it again. Man I know you guys worked this, but on this, I think I give up.
I just see they don’t feel they have any real need here, and just want to buy off
a board and be done with us again. They still think that’s how it worked with
the city council here, and now even want me to play part of cheap rent-a-
thug for them here and even commit to targets. Yes, I know all those people
on VCC very well, and helped allot of them in various ways through the years.
Yes, I have gotten every vote I ever asked for from all the boards and
commissions. And what’s worse, I would probably help for free if they chose to
be a REAL long term partner of ours and the city, and would go further to
actually help unlock things nationally with all the other CTOs call me asking my
help in how to work with them (you know which ones I am talking about)…So
please tell them they got the wrong partner if board votes in new orleans is
all they think we are about…better yet, I will copy and do it myself.
(Emphasis added) After this email, Earthlink rescinded all negotiations between
Logistix.
hasn’t put a bid out and really wants to work with us. I really do.” Fitzpatrick
replied, “Why would he need to? They have obviously figured our how to direct
235. On February 12, 2007, Kurt quit as MOT CTO. Anthony Jones, who was also
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about May of 2007, Kurt began his employment with Ciber, the company with
employment with Ciber was simply repayment for the millions of dollars in IT
Services Kurt directed to Ciber and the MOT Employees’ Privately Held
Company.
236. On February 14, 2007, Dell issued an invoice for wireless video surveillance
cameras under its December 20, 2004 Contract to the City of Gretna. Again, the
invoice did not mention the word “camera.” Upon information and belief,
237. Although AMI Consulting was legally filed with the Secretary of State’s office
on May 15, 2007, Drake continued to use CamSoft’s trade secrets in selling his
contract for AMI Consulting with British Telecom, the United Kingdom’s largest
239. On March 2, 2007, AMI Consulting entered into a teaming agreement with
design. Eventually, AMI Consulting, Kirk and Drake provided Unisys with
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CamSoft’s valuable trade secret information relative to the design of wireless
240. On March 2, 2007, and in response to press inquiries regarding the sale of
have never been authorized to provide service on the Dell contract. We have
discussed this…They do not hold and never have (to my knowledge) held any
241. In a follow-up email, Lea wrote, “I have asked Dell to hold up selling products
information technology group and we can determine how the state will proceed
with these type (sic) of items. This action has to do with the requests coming in
from agencies wishing to buy these types of systems…In the meantime, public
Memorandum, she stated, “On November 21, 2006, this office issued a
state’s brand name microcomputer contracts…At this time our procedures for
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surveillance camera systems are being revised. You should refrain from selling
243. On June 7, 2007, the Baton Rouge city council allocated $3.5 million from a
$19 million surplus to install video surveillance cameras across a large area of
single P.O. number (i.e. 71491) for all purchases made for the Phase II Security
Canopy System.
244. On June 18, 2007, Anthony Jones, then acting MOT CTO, advised Perrin that
the City of New Orleans was not extending the July 19, 2004 Contract.
245. Now knowing that the Dell Alliance Members could not sell the $3.5 million
Phase II Security Canopy System via Dell’s LANBMPC, on July 27, 2007,
NetMethods was granted a LANBMPC specifically for the purpose of selling video
surveillance products (“July 17, 2007 Contract”). In the months leading up to the
July 27, 2007 Contract, Ridge of Dell pushed for NetMethods to be included as a
licensed reseller of Dell products under its “S&P” program. By this time internal
Dell documents were noting that the video surveillance industry could be worth
246. NetMethods directly sold its wireless video surveillance system via its July
approximately January 25, 2010. NetMethods continued using the Dell Alliance
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thousands of dollars in annual hardware maintenance costs. Basically,
NetMethods enjoyed the very financial successes that CamSoft and MacDonald
had worked so hard to achieve in its efforts dating back four years prior in the
247. Despite NetMethods’ July 27, 2007 Contract, CamSoft further alleges that
NetMethods did continue to knowingly circumvent the state public bid laws.
and installation costs. Moreover, the “Procedures for the Establishment and
items shall not exceed $25,000. Total release/purchase order amount shall not
248. Notwithstanding, the City of Baton Rouge allocated and spent nearly all of the
$3.5 million allocated by city council under a single purchase order, PO. 71491,
for all Phase II Security Canopy System purchases. City records indicate that
artificially divided purchase orders subtotal the entire $3.5 million allocated by
249. CamSoft alleges that NetMethods and the City of Baton Rouge artificially
bid requirements for an RFP or closed bid process for orders exceeding the
$250,000 threshold. CamSoft duly notes that total threshold amount was
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increased to $500,000 in Memorandum 10-10 dated June 16, 2010, but this still
would have not affected the otherwise circumvention of state public bid laws.
equipment further violates the Purchasing Rules and Regulations of the Office of
Brand Name contracts. (“Purchases shall not be artificially divided to avoid the
requirements of this section when recurring requirements for the same products
are shown.”)
251. The fact that Baton Rouge officials rewarded NetMethods, and consequently
the Dell Alliance Members, with a $3.5 million surveillance camera contract that
Evans, Baton Rouge’s CTO. The Times-Picayune reported that a leaked, internal
NetMethod’s email from Drake indicated that NetMethods paid for a hotel room
2007. This hotel stay came just months before the Baton Rouge city council
appropriated the $3.5 million, and thereafter police and information services
252. In New Orleans, Ciber continued to install wireless crime cameras under
Anthony Jones’ tenure at MOT CTO. Jones continued to pay Ciber under its
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deliverables was ever authorized. In fact, Ciber was awarded three additional
contract extensions: K08-509 for $15,500,000; K09-879 for $592,889; and K09-
664 for $9,800,000. All told, Ciber’s total contract extensions, with no change in
billed the City of New Orleans $977,195.93 in total charges related to crime
camera deployments.
253. Eventually, the New Orleans crime camera deployment was declared
complete on July 31, 2007, but only after Anthony Jones stepped down as MOT
CTO for accepting illegal gratuities from Ciber in the form of airplane tickets to a
254. In June of 2009, and just prior to the New Orleans trial against NetMethods
notes that Ridge of Dell did terminate his employment with Dell at some
presently unknown time, and started to work for either NetMethods or MMR
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255. CamSoft alleges that St. Pierre did knowingly enter into an agreement to
order to protect these individuals from the effects of the New Orleans litigation,
Petroleum Drive office space in Baton Rouge. Mr. Rody Rispone, counsel for
Risponse even threatened to take legal action if there was any mention of a
256. MMR Communications was granted a state contract to sell video surveillance
and other BRPD officials on January 25, 2010. From his NetMethods email
account, Brent Lajaunie wrote Captain Tully, “Roger, I know you are meeting
with MMR today. Is there anything you need to go over with me prior?”
257. During this meeting, January 25, 2010 meeting, MMR Communications
assured BRPD officials that the personnel working on the crime camera project
would remain the same, and that MMR Communications would simply pick-up
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billing the City of Baton Rouge for hardware equipment maintenance on its
258. Having just met with BRPD officials on January 25, 2010, not seven (7) days
Baton Rouge for “Phase 2 Maintenance – Cameras” for the period January 1,
2010 through March 31, 2010 in the amount of $29,144.03. Notably, this invoice
agency for a service not already performed (i.e. invoice dated February 2, 2010
259. On a BRPD “Departmental Route Slip” Captain Tully and Chief of Police Jeff
LeDuff both signed off on the Phase 2 camera maintenance costs totaling
$97,793.12 payable to MMR Constructors. The route slip states, “This is the
invoice for maintenancing (sic) the CAMERAS, INFRASTRUCTURE & MESH for
the City Parish Camera Canopy System (including 47 remaining Phase 1 cameras
purchased with a Homeland Security grant through EOC) for the first 90 days of
2010…5 invoices are attached from MMR who have assumed this part of Net
260. On March 9, 2010, Simon Kwan, a city employee charged with BRPD
purchases, wrote Captain Tully, “Roger Just got off the phone with Cliff. He told
me after he looked into the state contract and called around the contact person
with no avail and you haven’t returned his call. He finally got hold of someone in
MMR. But after he finished greeting some information from that person, he
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because they have no existing insurance coverage, the two accounts MMR used
to have with the City had to be closed down. In particular there were too many
loose ends and details that he has no information to go by. So this is the status of
maintenance.” Roger Tully then forwarded this email to Evans, who allegedly
asked Captain Tully to forward the email to Ridge, the former employee of Dell
who now works for MMR Communications. Captain Tully replied to Donald
261. CamSoft alleges that MMR Communications is now financially profiting from
the trade secrets learned by the MOT Employees in the course of their
Baton Rouge city officials given their prior business dealings with NetMethods,
262. The most recent information obtained to date indicates that as of June 29,
2010, BRPD officials issued another “Departmental Routing Slip” granting MMR
and Phase 1 wireless surveillance cameras. Although the exact time frame
covered by the $95,948.12 is unclear, CamSoft alleges that this amount is but a
small fraction of the maintenance costs paid by the City of Baton Rouge for total
annual hardware maintenance. For example, the 2009 Annual Operating Budget
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263. CamSoft further alleges that NetMethods, and now MMR Communications,
has violated, and continues to violate, respectively, the state public bid laws on
the video surveillance system in Baton Rouge, costing less than $100,000 may be
purchased under a state brand name contract. However, Memorandum OSP 10-
264. CamSoft alleges that the City of Baton Rouge is allocating more than the
performed exceeds the single line item list threshold of $25,000.00. See
Memorandum OSP 10-02 dated August 31, 2009 reducing line item limit from
$50,000 to $25,000.
265. CamSoft alleges that Evans’ continued direct influence and involvement in
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the steering of wireless video surveillance business to a preferred vendor, MMR
Communications.
266. As a private party, CamSoft has standing to enforce the Sherman Act through
Section 4 of the Clayton Act, 15 U.S.C. §15(a). CamSoft is a juridical entity injured
in both its municipal wi-fi systems and wireless video surveillance systems
business by reason of the actions forbidden in the antitrust laws. CamSoft seeks
recovery of treble damages, cost of suit and reasonable attorney fees. CamSoft’s
267. CamSoft alleges Sherman Act violations against the following defendants:
MOT Employees, including Meffert, St. Pierre, Kurt, Domke, Hastings, Drake,
Marketing, Dell, including its employees, Renecker, Ridge and Smith, Active
Solutions, and its owners, Fitzpatrick and Burkhardt, Southern Electronics, and
its owner, Perrin, Ciber, Evans, Tolpegin, Berryman, Earthlink, Motorola and
268. The relevant product market is municipal wi-fi systems and accompanying
applications, which include but are not necessarily limited to wireless video
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269. The relevant geographical market is all state and local governmental
270. Following the Dell Alliance Members’ July 8, 2004 Meeting, the Dell Alliance
Members did expressly determine and learn that the sale of the Sony
surveillance cameras were expressly excluded from sale under the applicable
WSCA Contract made a part and parcel of Dell Marketing’s December 20, 2004
Contract under the OSP’s LABNMPC. Moreover, the limitations of the LABNMPC
did not expressly permit the sale of the Tropos wireless networking equipment
at the time of Dell’s sales. See November 21, 2006 OSP Memorandum 07-03.
equipment otherwise violating both the WSCA Contract and the LABNMPC; (2)
request for proposal or competitive bid process was required; (4) knowingly,
illegally selling said bundled equipment under Dell and Dell Marketing’s
December 20, 2004 Contract through the LABNMPC process; (5) knowingly,
illegally disguising said sale through intentionally misleading Dell and Dell
Marketing invoices that intentionally did not identify the word “camera,” nor
therein; (6) knowingly, improperly paying for the installation said bundled
and (7) knowingly, illegally and artificially dividing the sale of said bundled
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hardware equipment and hardware maintenance under the $250,000 and
Contract. These actions were committed with the specific intent to circumvent
the applicable state public bid laws; thereby, producing an anticompetitive effect
for the applicable product market in the relevant geographical market place.
272. While Active Solutions and Southern Electronics were removed as Dell
Alliance Members prior to the actual sale of said bundled equipment to the cities
of New Orleans, Gretna, Lafayette and Baton Rouge, Active Solutions and
conformity with the parties July 8, 2004 Meeting discussions. In fact, Active
Solutions and Southern Electronics brought suit in New Orleans for their loss of
273. Furthermore, in order to receive preferential political influence for the New
Orleans franchise agreement, Meffert, the MOT Employees, their Privately Held
effect by: (1) knowingly negotiating reciprocal dealing and tying arrangements
to the benefit of the MOT Employees’ Privately Held Companies; (2) executed
reciprocal dealing and tying arrangements with NetMethods following the award
of the franchise agreement to NetMethods. These actions were taken with the
express purpose and intent to circumvent the state public bid laws and
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otherwise produced an anticompetitive effect to those other municipal wi-fi
systems suppliers seeking to provide said system to the City of New Orleans.
geographical marketplace because state and local government officials did not
geographical market because public officials and persons with apparent public
authority, including Meffert, Drake, Evans, MOT Employees, and other presently
unknown employees within the City of New Orleans (as per Ciber’s
Sherman Act.”) See Harkins Amusement Enters., Inc. v. General Cinema Corp., 850
F.2d 477, 487 (9th Cir. 1988); see also Larry R. George Sales So. V. Cool Attic Corp.,
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275. CamSoft further alleges that it sustained a direct economic, antitrust injury as
conspiracy to violate the federal anti-trust laws. CamSoft clearly alleged facts
demonstrating its years of good faith efforts to market its municipal wi-fi system
and wireless video surveillance systems to both the City of New Orleans and the
City of Baton Rouge, as well as across various parts of South Louisiana. CamSoft
further alleged facts showing that the Antitrust Defendants were initially
local governments to illegally circumvent Louisiana’s public bid laws not only
disrupted CamSoft’s good faith sales and marketing efforts, but had a wide
276. CamSoft’s economic injury is further the type of which the antitrust laws
were intended to prevent, and that which flows from the Antitrust Defendants’
unlawful acts. CamSoft is well within the boundaries of the target product
market subject of this dispute and falls within the class of individuals whom the
laws were intended to protect. CamSoft was a direct competitor for sales of
municipal wi-fi systems and wireless video surveillance systems, and did further
take active good faith measures to make such sales. CamSoft’s injury is exactly
the type of loss that the claimed antitrust violations would likely cause.
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277. CamSoft further alleges that the Antitrust Defendants’ agreement,
Sherman Act. Said actions constitute per se violations due to the horizontal
278. As CamSoft and the Antitrust Defendants were at the same market level of
harm that it has caused or any business excuse for such reprehensible behavior.
279. CamSoft further alleges that the clear objective intent of the Antitrust
boycott of not only CamSoft, but all other vendors, including Google, Yahoo and
Microsoft, who were also seeking to provide the same or similar market product
December 20, 2004 Contract was legal and appropriate both improperly
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relationships the other competitors needed in the competitive struggle to
provide the same or similar systems and applications. This influence, persuasion
280. CamSoft further alleges that the Antitrust Defendants’ engaged in reciprocal
dealing or tying arrangements, which are also per se violations of Section 1 of the
Sherman Act. See Northern Pacific Railway Co. v. United States, 356 U.S. 1 (1958);
Spartan Grain & Mill Co. v. Ayers, 581 F.2d 419 (5th Cir. 1978). Specifically,
Meffert used his power and authority as MOT CTO to require Ciber to use the
NetMethods and Veracent, and ultimately for his own personal financial benefit
through Logistix. AMI Consulting further benefited as it received all the benefits
anticompetitive effect because they were ultimately used as means to disrupt the
Electronics for Baton Rouge business and the fulfillment of the July 19, 2004
Contract. For example, Meffert and Kurt used the reciprocal dealing and tying
arrangements with Ciber to otherwise fund the installation of the New Orleans
crime cameras, which were knowingly, illegally purchased via Dell’s December
potential competition for the municipal wi-fi system deployment in New Orleans.
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281. CamSoft further notes that if its factual allegations create an inference that
constitute per se violations of Section 1 of the Sherman Act, CamSoft alleges that
283. CamSoft further alleges that the alleged Sherman Act violations involve
said transactions included out of state actors, involved out of state products and
284. CamSoft alleges that the Antitrust Defendants, except Active Solutions and
Southern Electronics, and owners of same, due to their May 17, 2006 exclusion
as Dell Alliance Members before the sale of crime cameras to the City of New
Orleans and City of Baton Rouge, violated Section 2(c) of the Robinson-Patman
Act, 15 U.S.C. §13(c). CamSoft alleges that Evans, Meffert, Drake and the other
authority and influence for sales of goods and services with the City of Baton
Rouge and City of New Orleans. Such “commercial bribery” constitutes a per se
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violation of Section 2(c) of the Robinson-Patman Act, which is inherently
285. CamSoft alleges that Section 2(c) of the Robinson-Patman Act was violated
due to improper and unearned gratuities paid to Evans, a public servant with
significant influence over the decision making authority for the municipal wi-fi
information and belief, and as reported by the Times Picayune in New Orleans, a
leaked NetMethods’ email indicates that NetMethods paid for a hotel stay for
286. CamSoft further alleges that Section 2(c) of the Robinson-Patman Act was
servant with significant influence over the decision making authority for the
Meffert’s wife; and also received approximately $647,426.25 as per the $67,000
per month consulting fee agreement between NetMethods and Logistix. Troops
also paid for Meffert’s flights to speaking engagements. And Earthlink and
Motorola promised future reciprocal dealing and tying arrangements with the
MOT Employees’ Privately Held Companies if Meffert and the MOT Employees
landed the New Orleans franchise agreement through the city council vote.
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287. CamSoft further alleges that Section 2(c) of the Robinson-Patman Act was
violated due to the improper gratuities paid to Drake, who also constitutes a
person with apparent public authority. Drake was intimately involved with
negotiations for both the wireless video surveillance system and municipal wi-fi
systems deployments with the City of New Orleans. Specifically, Tropos paid for
288. The gratuities paid to Evans, Meffert and Drake financially benefitted the
Baton Rouge. As the primary persons and agents charged with making and
Drake and the other MOT Employees owed fiduciary relationships as agents,
municipal wi-fi systems and wireless video surveillance systems between the
Antitrust Defendants and the City of Baton Rouge and the City of New Orleans.
289. CamSoft further maintains that the alleged violations of the Robinson-
rewarded in said transactions included out of state actors, involved out of state
products and the said sales proceeds flowed outside the State of Louisiana.
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290. CamSoft alleges that the Section 2(c) violation caused a direct economic, anti-
trust injury. CamSoft alleges an antitrust injury directly related to the alleged
commercial bribery of Donald Evans. CamSoft clearly alleged facts showing that
as early as mid-2003 CamSoft was seeking meetings with Baton Rouge city
officials, including Evans, to market and sell the same municipal wi-fi system and
meetings with BRPD officials in October of 2004 for the express purpose of
marketing its municipal wi-fi systems and wireless video surveillance systems.
Moreover, CamSoft’s sales and marketing efforts to Baton Rouge officials were
2004 and January of 2006, respectively. CamSoft alleges that these gratuities to
Evans directly resulted in Baton Rouge’s $3.5 million sale of said equipment to
this gratuity further caused Baton Rouge officials to artificially break-up the $3.5
291. CamSoft further alleges an antitrust injury directly related to the gratuities
July 19, 2004 Contract through arbitrary and capricious delays for camera
2004 Contract through direct sales of said wireless video surveillance system via
Dell Marketing’s December 20, 2004 Contract. The non-deployment of the July
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19, 2004 Contract directly, financially harmed CamSoft. The gratuities further
RFP for this deployment before the franchise agreement was awarded to
Earthlink.
292. CamSoft seeks treble damages in order to curtail such purely pernicious
suit and reasonable attorney fees. 18 U.S.C. §1964(c). CamSoft’s civil RICO
294. CamSoft alleges that the following persons constitute “RICO Persons” who
Meffert, St. Pierre, Kurt, Domke, Hastings, Drake, Charbonnet, Hodges and
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Marketing, and its employee, Ridge, Ciber, Sege, Carr, Tropos, Tolpegin,
Berryman, Earthlink and Motorola. CamSoft may have RICO claims against a
municipal officer in his individual capacity, but not against the municipality
itself. See United States v. Emond, 935 F.2d 1511, 1512 (7th Cir. 1991).
295. CamSoft alleges that the RICO Persons engaged in a three and one-half (3
state law and punishable by imprisonment for more than one year. 18 U.S.C.
R.S. 14:118 prohibits public bribery (i.e. the giving or offering to give, directly or
following persons, with the intent to influence his conduct in relation to his
296. From at least November of 2004 through July of 2006, Meffert, a public
NetMethods’ AMEX credit card in his name. These credit card privileges were
Services work to Ciber, which include but is not limited to the purchase and
installation of crime cameras, through the City of New Orleans. In turn, Ciber
then agreed to funnel the money to the MOT Employees’ Privately Held
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for the directing of millions of dollars in IT Services work through reciprocal
dealing and tying arrangements, after his resignation in July of 2007, Meffert,
through his company Logistix, signed a contract with St. Pierre’s company,
consulting services. From August 4, 2006 through May 14, 2007, Meffert
received significant gratuities in the form of a silent ownership interest and use
in a yacht called the “Silicon Bayou”, which was owned by St. Pierre’s company,
herself and Meffert, also received a $38,000 bribe through her company, The
behalf of herself and Meffert, also received bribes in the form of $35,000 in
household expenses.
297. CamSoft further maintains that all MOT Employees were intimately familiar
with Meffert’s direct control and silent ownership over Imagine Consulting,
NetMethods and Veracent. For example, St. Pierre, Kurt, Domke and Hastings
were all co-owners of Imagine Consulting, who understood that Meffert was
steering them “no-bid” business; emails indicate that Domke even asked for
Meffert’s preference for NetMethods’ website after its creation; Drake began
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via emails as a MOT employee, and then later submitted emails to Kurt for
Drake attended meetings with Baton Rouge officials through NetMethods; and
Active Solutions and Southern Electronics as Dell Alliance Members. Thus, all
MOT Employees were active participants in the pubic bribery schemes with
298. Meffert, Drake and the MOT Employees, and for the benefit of their Privately
Held Companies, also negotiated with Tropos, Earthlink and Motorola, including
dealings and tying arrangements. Drake’s email even indicates that Motorola
stated that they would negotiate a contract with the MOT Employees’ Privately
Held Company, NetMethods, once the city council approved the franchise
299. Meffert further directed the purchase through Ciber of the GoalView
educational software system. The City of New Orleans paid $1,850,000 for this
Ciber claims that it used these proceeds to pay for New Orleans’ new initiatives.
Ciber to the City of New Orleans in July of 2006 alone (i.e. $1,596,497.76 and
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$836,132.20). Moreover, Ciber used these proceeds to pay subcontracting
invoices submitted from the MOT Employees’ Privately Held Companies. Even
300. Mark Kurt immediately replaced Meffert as MOT CTO in July of 2006. Kurt
December 20, 2004 Contract. Kurt also continued to pay for installation of the
crime camera systems via the illegal reciprocal dealing and tying arrangements
with Ciber. Kurt knowingly continued to use his power as MOT CTO to direct
payment of Ciber’s invoices for the subcontract invoices submitted by the MOT
NetMethods and/or Veracent. Kurt was intimately familiar with the contractual
CamSoft alleges that Kurt was offered and rewarded for his continued steering of
business to Ciber with the offer of a lucrative employment position with Ciber
before his resignation as MOT CTO in February of 2007. See United States v.
Perkins, 596 F.Supp. 528 (E.D.Pa. 1984) (offers of future employment sufficient
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wireless video surveillance installations. Ciber continued receiving this IT
Services work under its original contract and amendments through at least July
31, 2008. Jones ultimately resigned after it was discovered that Ciber paid
302. Tropos also paid gratuities to Drake and Meffert up to and through July 18,
2005, Meffert’s resignation date. Tropos paid for flights, and upon information
authority as defined by La. R.S. 14:118 and 14:(2)9, particularly considering his
303. CamSoft further shows that these predicate acts of various public bribery and
gratuity offerings to Meffert, Kurt and Jones spanned a period of over 3 ½ years,
from at least November of 2004 through July 31, 2008. In United States v.
Dischner, 974 F.2d 1502, 1510-11 (9th Cir. 1992), the Ninth Circuit found three
years to be a substantial period of time for a bribery scheme; thus, satisfying the
H.J. Inc. v. Northwestern Bell Telephone Company, 492 U.S. 229, 109 S.Ct. 2893,
106 L.Ed.2d 195 (1989). CamSoft further alleges that the enterprise continues to
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304. CamSoft alleges that the RICO enterprise operated by the RICO Persons was
City of New Orleans functions as municipal entity organized for the purpose of
legally governing and operating the city. Thus, the City of New Orleans is a
over an enterprise may also be liable, such as an outsider who exerts control
through bribery. See Reves v. Ernst & Young, 507 U.S. 170, 184, 113 S.Ct. 1163,
that the RICO Persons existed separate and apart from the pattern of activity
through which it conducted. Dell and Dell Marketing were in the legitimate
the legitimate ISP business. And the MOT Employees, and their Privately Held
enterprise associated for the common goal and purpose of selling and installing
municipal wi-fi systems and wireless video surveillance systems. Thus, the
alleged enterprise could have legally existed absent the predicate acts described
above.
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306. CamSoft further maintains that the association-in-fact enterprise functioned
carry out their common goal and purpose, Dell and Dell Marketing knowingly
and Veracent’s and NetMethods’ crime camera system. Dell and Dell Marketing,
and specifically Ridge, who attended meetings with Baton Rouge officials and
was intimately familiar with the MOT Employees’ Privately Held Companies,
the MOT Employees’ Privately Held Companies. Ciber directly conducted and
the City of New Orleans as a billing mechanism for the installation of said crime
supplying the MESH Technology sold to the City of New Orleans. Earthlink and
Motorola also participated in the enterprise by selling its goods and services to
the City of New Orleans through the franchise agreement. The MOT Employees,
agent power within the City of New Orleans to unilaterally purchase the bundled
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agreements with the Privately Held Companies. Thus, there existed a definite
mechanism for directing the groups’ ongoing and continuous affairs with the
307. CamSoft alleges that the RICO Persons violated Section 1962(c), which was
itself. CamSoft has previously explained how all parties conducted and
308. CamSoft further notes that Dell, Dell Marketing and Ridge did not simply
provide goods and services to the enterprise. Dell, Dell Marketing and Ridge did
marketing and selling the bundled equipment via Dell’s LANBMPC to the City of
New Orleans. Ridge even left his employment with Dell to continue his conduct
MMR Communications, with whom he now works. CamSoft also notes that
Tropos, Earthlink and Motorola also did not simply provide goods and services.
Each party and their respective representatives did knowingly engage in actions
that constitute public bribery. Furthermore, Ciber did not simply provide goods
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and services to the enterprise either, but rather voluntarily entered into the
billed the City of New Orleans for crime camera installation charges falling
outside its contract of deliverables, and directly funneled this money to the MOT
Employees’ Privately Held Companies. Ciber did further use $1,850,000 without
proper authority from the City of New Orleans. Finally, the MOT Employees and
business operations of both the City of New Orleans and the association-in-fact
309. CamSoft reincorporates the above analysis and further alleges that certain
RICO Persons did also violate Section 1962(a). CamSoft alleges that the MOT
Employees, and their Privately Held Companies, Dell, Dell Marketing and Ridge,
enterprise described above. The RICO Persons did otherwise use this income to
NetMethods then used this income to pay for those alleged gratuities to Evans,
the $3.5 million for the Phase II Security Canopy Project in June of 2007
produced, in part, the income stream used to pay Meffert’s exorbitant $67,000
per month consulting fee. Thus, the income derived from the RICO enterprise
was used to further its business dealings with the City of Baton Rouge.
Consequently, these RICO Persons received and continue to receive income from
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the Baton Rouge crime camera installation, with the more recent income derived
from their new association with MMR Communications, which was created as a
CamSoft’s loss of associated business opportunity with the City of Baton Rouge
was proximately caused from the use and investment of the racketeering income
derived and received from the City of New Orleans RICO enterprise or
association-in-fact enterprise.
310. CamSoft reincorporates the above analysis and further alleges that the RICO
Persons did also violate Section 1962(d) by conspiring to violate Section 1962(c)
and 1962(a). CamSoft alleges that the RICO Persons were all part of a conspiracy
system sales through the City of New Orleans. The RICO Persons did generate
this income by and through the improperly influencing and causing of public
officials to circumvent the state public bids laws. Through a course of public
bribery, gratuities and kickbacks, the RICO Persons did actively further their
goals. Each RICO Person adopted, furthered and facilitated this common goal.
employment relations, CamSoft alleges that each RICO Person knew or should
have known of the essential nature and scope of the enterprise, and that each
RICO Person did intend to participate and receive financial compensation from
it. (All conspirators are liable for the acts of their co-conspirators.) See Ducote
Jax Holdings, LLC v. Bradley, 2007 WL 2008505 (E.D.La. 2007); citing Oki
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Semiconductor Co. v. Wells Fargo Bank Nat. Ass’n, 298 F.3d 768, 774-75 (9th Cir.
2002).
311. CamSoft alleges standing to pursue its RICO claims as a direct competitor in
the same product market and geographical marketplace with the RICO Persons.
CamSoft maintains that this pattern of racketeering not only proximately caused
the arbitrary and capricious interruption of the July 19, 2004 Contract, but
further illegally foreclosed CamSoft’s good faith attempts to compete for the
municipal wi-fi franchise agreement. Thus, CamSoft’s alleged damages were the
contracts, which in turn paid more bribes. Such activities were directly intended
to circumvent the state’s public bidding statutes; thereby, denying CamSoft and
312. Finally, CamSoft alleges that the above named RICO enterprises engaged in,
or the activities of which, affect, interstate commerce. The City of New Orleans
enterprise was comprised of interstate RICO persons, and monies derived from
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LOUSIANA STATE LAW CAUSES OF ACTION
313. On April 24, 2007, Active Solutions and Southern Electronics filed a lawsuit
against Dell and Dell corporate officials claiming breach of contract, unfair trade
Southern Electronics claims were based, in part, on the July 8, 2004 Meeting and
entirely unaware of the July 8, 2004 Meeting and the non-disclosure agreements.
In fact, MacDonald and CamSoft did not fully appreciate the extent of the
314. In the New Orleans litigation, Active Solutions and Southern Electronics
sought damages for their alleged, sole extensive research and testing of the
and Southern Electronics further claimed that they alone set up the six cameras
315. During Fitzpatrick’s deposition taken on Friday, June 27, 2008, Fitzpatrick
claimed that MacDonald and CamSoft played no role in the development of the
“box” housing the wireless electrical component parts. Fitzpatrick even went so
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far as to testify that MacDonald had never seen the inside of Fitzpatrick’s prized
316. Despite having never worked with the Tropos equipment prior to the Pilot
MESH Technology resulted from his involvement with CamSoft and the Pilot
317. CamSoft files the instant suit seeking a judicial declaration of CamSoft’s state
law ownership rights to the wireless video surveillance system that CamSoft
designed, constructed, tested and deployed in both the Pilot Project and the July
articles. See La. C.C. arts. 482, 507, 513 and 514.
318. CamSoft further claims entitlement to any and all of the future fruits derived
from CamSoft’s ownership rights connected with the wireless video surveillance
system, including CamSoft’s right to any monetary proceeds either derived from
No. 2007-3665, Div. “B”, Orleans Civil District Court, State of Louisiana. CamSoft
system was initially designed during the Pilot Project. Moreover, the wireless
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video surveillance system’s design changed during the course of the deployment
under the July 19, 2004 Contract and those meetings with the BRPD officials in
October of 2004.
320. CamSoft further notes that Active Solutions and Southern Electronics, and its
application for the said wireless crime camera system. Whereas the question of
of the United States Patent and Trademark Office, CamSoft does allege the
existence of a state law constructive trust of ownership over any future patent
that might otherwise accrue from the patent application. Active Solutions and
Southern Electronics owe this duty of constructive trust by virtue of the United
States Supreme Court’s decision of Becher v. Contour Laboratories, Inc., 279 U.S.
388 (1929).
321. CamSoft prays that the Court enter an order defining the use and
Electronics and Active Solutions. See La. C.C. arts. 803 and 818. CamSoft further
prays that the Court further order a division of all fruits derived therefrom in
accordance with the laws of partnership as they apply to joint ventures. Active
Solutions, et al v. Dell, Inc., Docket No. 2007-3665, Div. “B”, Orleans Civil District
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LOUISIANA ANTI-TRUST STATUTE, LA R.S. 51:122
322. CamSoft alleges that the Antitrust Defendants violated Louisiana’s antitrust
Antitrust Act, 15 U.S.C. §1, supra, CamSoft incorporates, re-alleges and re-avers
324. CamSoft alleges that it suffered direct economic loss as a result or proximate
cause of the following unfair and deceptive trade practices as described below.
325. Active Solutions and Southern Electronics, and respective owners, conspired
to commit and did participate in the following unfair and deceptive trade
practices with the specific intent to harm business competition: (1) knowingly
breaching their implied duty of confidence and fiduciary duty as joint venturers
network designs to Dell and the MOT Employees, and their respective Privately
breaching their fiduciary duty of loyalty by entering into and failing to advise of
respective Privately Held Companies; (3) knowingly providing Dell and the MOT
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pretending to represent themselves as joint venturers with CamSoft while giving
a presentation to Baton Rouge city officials on or about October 15, 2004; (5)
filing a patent application for a wireless video surveillance camera knowing full
well that CamSoft participated in the wireless designs of said camera system; (6)
nature of the claims involved in the New Orleans litigation, and more specifically,
the amount of monetary damages that Active Solutions and Southern Electronics
were seeking at trial; and (7) any other unfair and deceptive act as described in
326. The MOT Employees, and their Privately Held Companies, including
unfair and deceptive trade practices with the specific intent to harm business
employees with the City of New Orleans; (2) intentionally misrepresented the
surveillance system first developed during the Pilot Project and July 19, 2004
with apparent public authority, including Meffert, Drake and Evans; (5) attended
CamSoft’s October 15, 2004 Meeting with Baton Rouge city officials under the
guise of presenting positive testimonial for CamSoft’s design of the New Orleans
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wireless video surveillance system’s network, but then secretly meeting with
and the purported designers of the New Orleans wireless crime camera system;
(6) conspired to interrupt the July 19 2004 Contract with false claims of
management duties, or 30 day no fault clause; (7) interrupted the July 19, 2004
delayed payments; (8) fraudulently told MacDonald of CamSoft that the failure to
include his logo with the other partners involved in the New Orleans crime
public bid laws as reflected in Meffert’s January 31, 2006 email; (10) conspired
with Ciber and Dell to knowingly continue the illegal sale and installation of
crime cameras to the City of New Orleans through Kurt after Meffert’s
resignation as MOT CTO; (12) fraudulently advised state and local officials that
purchase of the Dell Alliance Members’ wireless video surveillance solution was
proper and legal under Dell’s December 20, 2004 Contract; (13) fraudulently
advised state and local officials that they could properly circumvent the state
public bid laws by purchasing said system through Dell’s December 20, 2004
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Contract; (14) fraudulently provided unfair and deceptive invoices to state and
local officials in order to promote the illegal circumvention the WSCA Contract
competition through the illegal use of the OSP LANBMPC; (16) illegally
continued the sale of the wireless video surveillance system through Dell’s
December 10, 2004 Contract, and despite the November 21, 2006 OSP
thresholds pursuant to the state public bid laws; (18) orchestrated an otherwise
inappropriate group boycott of all competing vendors in the market to sell state
and local governmental agencies municipal wi-fi systems, including but not
fraudulently told Baton Rouge city officials that NetMethods is now a division of
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327. Dell, and its employees, Ridge, Renecker and Smith, conspired to commit and
did participate in the following unfair and deceptive trade practices with the
network designs for the wireless video surveillance system first developed
during the Pilot Project and July 19, 2004 Contract deployment; (2) conspired
with Ciber and the MOT Employees, through their Privately Held Companies, to
knowingly circumvent, and did in fact circumvent, that state’s public bid laws by
Marketing’s LANBMPC December 10, 2004 Contract; (3) continued the illegal
sale of crime cameras to the City of New Orleans through Kurt following
Meffert’s resignation as MOT CTO; (4) fraudulently advised state and local
officials that purchase of the Dell Alliance Members’ wireless video surveillance
solution was proper and legal under Dell’s December 20, 2004 Contract; (5)
fraudulently advised state and local officials that they could properly circumvent
the state public bid laws by purchasing said system through Dell’s December 20,
2004 Contract; (6) fraudulently provided unfair and deceptive invoices to state
and local officials in order to promote the illegal circumvention the WSCA
equipment sales; (7) illegally continued the sale and installation of the wireless
video surveillance system through Dell’s December 10, 2004 Contract, and
despite the November 21, 2006 OSP Memorandum 07-03 express prohibition of
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in the artificial division and sale of wireless video surveillance equipment to
$250,000 and $100,000 thresholds pursuant to the state public bid laws; and (9)
in the market to sell state and local governmental agencies municipal wi-fi
governmental officials.
328. Ciber conspired to commit and did participate in the following unfair and
deceptive trade practices with the specific intent to harm business competition:
New Orleans through Meffert with the express understanding that Ciber would
have to agree to subcontract its work to the MOT Employees’ Privately Held
the July 19, 2004 Contract deployment as an active member of the Dell Alliance
agreement to illegally bundle and sell the wireless video surveillance system to
the City of New Orleans, and then charged the City of New Orleans for the
knowingly using $1,850,000 in money spent by the City of New Orleans for a
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ultimately spent on payments to the MOT Employees’ Privately Held Companies
and gratuities to New Orleans city employees; (5) conspired with and did in fact
continue with Kurt to continue the illegal purchase of crime cameras through the
Dell’s December 10, 2004 Contract after Meffert’s resignation as MOT CTO,
which in turn intentionally continued the illegal flow of money to Ciber the MOT
Employees’ Privately Held Companies; and (6) conspired with and did in fact
continue with Anthony Jones the installation of the crime cameras through
329. Earthlink, Motorola, Tolpegin and Berryman conspired to commit and did
participate in the following unfair and deceptive trade practices with the specific
Companies with the intent to influence Meffert, Drake and the other MOT
more specifically NetMethods, after the New Orleans city council approved the
franchise agreement.
330. CamSoft reincorporates herein each and every allegation of unfair and
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331. CamSoft further alleges that the Active Solutions and Southern Electronics
entered into a joint venture agreement for the sale of wireless video surveillance
systems to the City of Baton Rouge and City of New Orleans. Prior to even the
Pilot Project, the parties agreed to form a joint venture for the design and sale of
the wireless video surveillance to the City of New Orleans. As part of the Pilot
Project, all parties shared in the potential financial losses. Specifically, CamSoft
paid for the Tropos MESH Technology from its own proceeds, and without any
allegations, particularly its emails on January 30, 2004 and February 9, 2004,
evidence CamSoft’s proprietary interest in the outcome of the joint venture, and
332. Even after the parties’ jointly submitted their proposal to the City of New
Orleans, the parties then made future plans to market and sell the wireless video
established with Baton Rouge city and BRPD officials. Perrin and Fitzpatrick
even went so far as to give a joint presentation with MacDonald to BRPD official
on October 15, 2004, well after they had already struck their agreement,
combination and conspiracy as Dell Alliance Members following the July 8, 2004
Meeting.
333. CamSoft maintains that Active Solutions and Southern Electronics, and
their fiduciary duties owed to CamSoft for their own private financial benefit.
Active Solutions and Southern Electronics breached their duty to render a full
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and fair disclosure to CamSoft of all facts that might materially affect CamSoft’s
rights and interests in both the New Orleans and Baton Rouge crime camera
deployment efforts.
334. CamSoft maintains that each allegation of unfair and deceptive practice act,
Perrin, Fitzpatrick and Burkhardt are liable as obligors in bad faith pursuant to
La. C.C. art. 1997 for all damages, foreseeable or not, that are a direct
335. CamSoft alleges a violation of Louisiana’s Trade Secrets Act, La. R.S. 51:1431,
against the following defendants: Active Solutions and Southern Electronics, and
respective owners, the MOT Employees, and their Privately Held Companies,
336. CamSoft seeks damages associated with the loss of business opportunities
to such large companies as Unisys and Motorola; damages associated with the
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those trade secrets in the design of similar wireless video surveillance systems
that is not taking into account in computing damages for actual loss; and further
337. CamSoft alleges that, both before and during the Pilot Project, and in
solution, CamSoft did reveal trade secrets to Tropos, Active Solutions and
Project and July 19, 2004 Contract deployment, and otherwise constituted a
limited disclosure that does not destroy the requisite secrecy. CamSoft alleges
338. Most notably, CamSoft never once disseminated the special design
business partners, Active Solutions and Southern Electronics, and the equipment
manufacturer, Tropos. In fact, CamSoft only revealed parts of its wireless video
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system’s network design in an effort to help Tropos identify the technical
CamSoft’s direct economic interest, not to reveal any wireless video surveillance
networking designs to the public. See E.I. duPont deNemours & Co. v. Christopher,
431 F.2d 1012 (5th Cir. 1970); see also Metallurgical Ind., Inc. v. Fourtek, Inc., 790
nondisclosure as the parties were clearly joint venturers both before and during
the deployment of the Pilot Project. Southern Electronics and Active Solutions
them on notice of his intentions to protect the knowledge relative to the Tropos
Perrin dated January 30, 2004. MacDonald’s January 30, 2004 email clearly
stated that he did not want the other vendors associated with the Pilot Project to
learn how the Tropos equipment worked with the crime camera system; that he
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had spent years on learning about the MESH Technology; and went so far as to
state that he fully expected to actively compete against the other vendors
associated in the Pilot Project. This email explicitly showed that MacDonald
considered the methods and use of the Tropos equipment for wireless video
surveillance system designs as a trade secret, which conforms with the law that
one’s subjective belief of a secret’s existence suggests that the secret exists.
(“One’s subjective belief of a secret’s existence suggests that the secret exists.”)
See Metallurgical Ind., Inc. v. Fourtek, Inc., 790 F.2d 1195, 1199 (5th Cir. 1986).
system, CamSoft did not otherwise permit Southern Electronics and Active
designs it used to construct the overall wireless video surveillance system using
the Tropos MESH Technology, of which CamSoft was the licensed reseller in the
group.
341. Despite these express and implied duties of confidentiality, Active Solutions
of the wireless video surveillance system’s design to the MOT Employees and
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Dell representatives during their July 8, 2004 Meeting. This is in contrast to the
video surveillance systems’ design in the July 19, 2004 Contract. CamSoft alleges
that Active Solutions and Southern Electronics did knowingly provide these
respective companies, while never once advising CamSoft of the July 8, 2004
342. After providing the Dell Alliance Members with intimate working details of
the wireless video surveillance systems network designs, formulas and device
compositions, CamSoft alleges that the MOT Employees did use their respective
agency acting within the color of law, to further learn about the network’s
changing design features after deployment of the July 19, 2004 Contract
employees constructed same. CamSoft alleges that the MOT Employees actions
specifically violated the confidentiality provision as contained within the July 19,
2004 Contract. CamSoft further alleges that the MOT Employees’ use of
surreptitious and improper means to gain access to the wireless video network
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valuable wireless video surveillance network designs, constitutes a
343. CamSoft further alleges that Active Solutions and Southern Electronics
344. CamSoft further alleges that the MOT Employees, Active Solutions and
relative to the design of its wireless video surveillance system to Dell, Ciber, the
Communications.
345. CamSoft also alleges that Dell either knew or should have known of
CamSoft’s development of these trade secrets during the Pilot Project and
deployment of the July 19, 2004 Contract. Dell knew that the “Tropos guy”
associated with of the New Orleans Pilot Project was purposefully excluded from
the July 8, 2004 Meeting. Dell also fully understood that the purpose of the Pilot
heavily dependent on newly developed MESH Technology. Dell was also aware
that the July 19, 2004 Contract was being deployed in New Orleans, and,
said deployment.
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346. CamSoft further alleges that Ciber either knew or should have known of
CamSoft’s development of these trade secrets during the Pilot Project and
deployment of the July 19, 2004 Contract. Ciber directly participated in the
proposal to the Austin ISD, along with Active Solutions, Southern Electronics, the
intimately involved in City of New Orleans IT Services in 2004, when the crime
the vital role CamSoft played in deploying and developing this widely publicized
project for the City of New Orleans. CamSoft further alleges that Ciber is further
347. CamSoft further alleges that MMR Communications is now imputed with the
MOT Employees knowledge given its specific intent to take over and “acquire”
348. CamSoft further alleges that Motorola knew or should have known of the
vital role that CamSoft played in deploying and developing the wireless video
surveillance system technology. Even before the July 19, 2004 Contract
Regional Sales Manager for Motorola on July 29, 2004. Dorman, a high ranking
Motorola official, knew that MacDonald was responsible for building out the
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wireless video surveillance network and even attempted to steer MacDonald
towards using Motorola’s line of “Canopy” products during the July 19, 2004
Contract deployment.
349. CamSoft further alleges that the MOT Employees, their Privately Held
the MOT Employees simply violated the confidentiality provision in the July 19,
2004 Contract, and used their status as MOT Employees to “piggy back” off
350. CamSoft’s allegations demonstrate the considerable time, money, effort and
resources spent to develop the wireless video surveillance system used in the
Pilot Project. Considering that the Pilot Project was the first large scale wireless
video surveillance system of its kind, CamSoft naturally developed trade secrets
relative to the most efficient wi-fi network system design for handling the large
learned during the July 19, 2004 Contract deployment towards constructing a
practical and successful large scale wireless video surveillance solution running,
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be able to keep and enjoy the fruits of its labor without the misappropriation of
its proprietary technology. CamSoft took risks to gain an advantage over its
351. CamSoft maintains that the MOT Employees, independently, and on behalf of
their Privately Held Companies, Active Solutions and Southern Electronics, and
facts with the specific intent to deceive CamSoft and MacDonald, and which
352. CamSoft alleges that Fitzpatrick and Perrin committed the following acts
surreptitiously met with MOT Employees and Dell officials during the July 8,
2004 Meeting while fully engaged in a joint venture with CamSoft relative to the
misrepresented their interest in the purported joint venture for the Baton Rouge
meeting with Baton Rouge officials on October 15, 2004; and (3) purposefully
through their Privately Held Companies during CamSoft’s fulfillment of the July
353. CamSoft alleges that the MOT Employees committed the following acts
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deceived MacDonald and CamSoft as to their status as direct employees with the
their own economic benefit and direct competition with CamSoft, up until
CamSoft’s exit from the July 19, 2004 Contract on January 10, 2006; (4)
and (5) intentionally deceived MacDonald through Drake’s November 22, 2004
considering Drake and Stevenson’s January 17, 2004 Meeting with Baton Rouge
officials.
354. CamSoft further alleges that Dell and its employees, specifically Renecker and
Ridge, either knew or should have known that there was an additional member
of the Pilot Project prior to the July 8, 2004 Meeting. Drake wrote Renecker and
expressly advised that the “Tropos guy” was purposefully left out of the July 8,
2004 Meeting. Moreover, Ridge, along with Drake, personally attended meetings
with Baton Rouge city officials. CamSoft alleges that Ridge, during his
employment with Dell, either knew or should have known of CamSoft’s role in
market and sell CamSoft’s wireless video surveillance solution to Baton Rouge
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city officials. CamSoft duly admits that neither it nor MacDonald were aware of
Dell’s true role in the alleged antitrust allegations until its attempted
alleges that Dell either knew or should have known of CamSoft, and accordingly
conspired with the MOT Employees, Active Solutions and Southern Electronics,
who did in fact make delictual and fraudulent misrepresentations, for the
Marketing, Renecker and Ridge did financially benefit from these delictual and
355. CamSoft admits that no direct Ciber employee made any affirmative material
was performing work for MOT in 2004, during the crime camera deployment.
Employees, through their Privately Held Companies, were working within the
CamSoft further alleges that Ciber either knew or should have known of CamSoft,
and accordingly conspired with the MOT Employees, Active Solutions and
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misrepresentations, for the purpose of benefiting all Dell Alliance Members.
Consequently, Ciber did also financially benefit from the MOT Employees’
356. CamSoft further alleges that MMR Communications is also now liable unto
did knowingly hire St. Pierre as a contractor, and furthermore, hired a former
Dell employee, Ridge, and other MOT Employees, as described above, with the
arrangements with the City of Baton Rouge and other governmental authorities.
As MMR Communications has knowingly advised Baton Rouge city officials and
business, and did in fact take over the business for the purpose of directly
contracts, MMR Communications now stands liable unto CamSoft for the MOT
357. CamSoft maintains that the MOT Employees, independently, and on behalf of
their Privately Held Companies, Active Solutions and Southern Electronics, and
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alleges that Fitzpatrick and Perrin committed these deceptive, fraudulent and
malicious acts with the specific intent to disrupt CamSoft’s ongoing business
359. CamSoft reincorporates those allegations against the MOT Employees, and
misrepresentation. CamSoft further alleges that the MOT Employees, and their
acts with the specific intent to disrupt CamSoft ongoing business relationships
with Baton Rouge officials. In addition, CamSoft further alleges that the MOT
Employees, through Drake’s email dated November 22, 2004 to Charbonnet and
fulfillment of the July 19, 2004 Contract. This email further evidences that it was
written for Meffert’s consideration and use in forcing substantive changes to the
July 19, 2004. The MOT Employees actions were designed to disrupt CamSoft’s
business relationship not only with its joint venture business partners, Active
Solutions and Southern Electronics, but also with its ongoing business
relationships with other departmental officials within the City of New Orleans.
Moreover, Drake’s November 22, 2004 email wherein he outright lied about his
360. CamSoft reincorporates herein all such allegations against Active Solutions
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confidentiality discussed in the misappropriation of trade secrets and those
other fiduciary duties discussed above. CamSoft would further show that those
CamSoft alleges that Active Solutions not only negligently breached its duty of
caused CamSoft injuries as described above. But for said breach CamSoft’s
injuries would not have occurred, and CamSoft’s damages were the foreseeable
361. CamSoft reincorporates herein all factual allegations against Active Solutions,
relative to the joint venture business opportunities in Baton Rouge and New
Orleans. CamSoft justifiably and reasonably relied upon Active Solutions and
Southern Electronics to, and in good faith, perform its respectively asserted
duties relative to the Baton Rouge and New Orleans joint ventures. Relying on
same, CamSoft continued to operate under the belief that Active Solutions and
the behind the scenes agreement, CamSoft changed its position to its detriment
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362. CamSoft further reincorporates herein all factual allegations against the MOT
attending the October 15, 2004 Meeting with Baton Rouge city officials. The
MOT Employees did knowingly misrepresent their identities and intentions for
relied upon the representations by word and conduct, and otherwise changed its
CamSoft.
BREACH OF CONTRACT
363. In the alternative, and only in the alternative, should the trier-of-fact
UNJUST ENRICHMENT
364. To the extent that CamSoft has no valid cause of action against any one of the
defendants cited herein, CamSoft alleges a cause of action for unjust enrichment.
CamSoft would show that any one of the defendants’ actions impoverished
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actions and CamSoft’s alleged injuries and more fully described above.
Pennington doctrine is not applicable for the following reasons: (1) due to the
municipal wi-fi systems and wireless video surveillance systems in both New
Orleans and Baton Rouge; (2) due to knowingly fraudulent and material
elected officials, (a) that the purchase of the wireless video surveillance system
through Dell’s LANBMPC December 20, 2004 Contract was legal, (b) a
corresponding circumvention of the Louisiana public bid laws was legal, and (c)
366. CamSoft alleges that the bribing of governmental officials within the City of
New Orleans and the City of Baton Rouge precludes the applicability of the
367. CamSoft further alleges that the Antitrust Defendants’ fraudulent and
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of the political arena (i.e. non-elected officials), and furthermore do not involve
Pennington doctrine.
368. CamSoft alleged facts establishing that the Antitrust Defendants’ met with
& Producing Co. v. Aluminum Co. of America, 438 F.2d 1286 (5th Cir. 1971), cert.
denied, 404 U.S. 1047, 92 S.Ct. 701, 30 L.Ed.3d 736 (1972); see also Oberndorf v.
City & County of Denver, 900 F.2d 1434, 1440 (10th Cir. 1990). CamSoft alleges
no opportunity for error correction, and ultimately infected the core decision
relative to the state’s public bid laws. See also George R. Whitten, Jr., Inc. v.
Paddock Pool Builders, Inc., 424 F.2d 24 (1st Cir. 1970), defining the Noerr-
who administer the bid statute should be subject to the same limitations as its
dealings with private consumer. Indeed, to hold otherwise might impair the
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CONSPIRACY
369. CamSoft alleges that at those various times discussed herein there existed a
between the MOT Employees, including Meffert, St. Pierre, Kurt, Domke,
AMI Consulting, Dell Marketing, Dell, including its employees, Renecker, Ridge
and Smith, Active Solutions, and its owners, Fitzpatrick and Burkhardt, Southern
Electronics, and its owner, Perrin, Ciber, Evans, Kirk, Tolpegin, Berryman,
above.
370. The United States Supreme Court has recognized that, “In cases such as this,
plaintiffs should be given the full benefit of their proof without tightly
compartmentalizing the various factual components and wiping the slate clean
after scrutiny of each. The character and effect of a conspiracy are not to be
judged by dismembering it and viewing its separate parts, but only by looking at
it as a whole.” See Cont. Ore Cor. v. Union Carbide & Carbon Corp., 370 U.S. 690,
699, 82 S.Ct. 1404, 8 L.Ed.2d 777 (1962). “Thus, where a plaintiff is injured by
where the other facets of the defendants’ collusion had any economic impact on
him.” Knevelbaard Dairies v. Kraft Foods, Inc., 232 F.3d 979 (9th Cir. 2000); citing
Washington State Bowling Proprietors Ass’n v. Pacific Lanes, Inc., 356 F.2d 371
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371. Accordingly, it is of no moment whether or not any individual alleged
Each alleged conspirator is charged with the violations of the other co-
conspirators, and is equally liable unto CamSoft for all damages associated
therewith.
FRAUDULENT CONCEALMENT
372. To the extent that any defendant raises the defense of statute of limitations
the operative facts or basis of his causes of action within any given limitations
period. CamSoft further notes that its exercised due diligence in its business
operations until discovery of those facts. CamSoft alleges that the defendants’
full appreciation of all facts that would otherwise support each alleged cause of
373. CamSoft further notes that knowledge of the Active Solutions and Southern
claim. The Fifth Circuit noted, “The plaintiffs’ knowledge of the [other]
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without more, does not necessarily give ‘good ground’ because this suit might
well be frivolous or baseless.” In re Beef Antitrust Litigation, 600 F.2d 1148 (5th
scope and nature of their New Orleans suit’s claims and damages.
374. CamSoft alleges that each defendant corporation is liable unto CamSoft for
employees described above. CamSoft alleges that at all times herein the each
defendant employee did act within the course and scope of his respective
employment with each defendant employer. This does not apply to any
allegations relative to any official, agent or employee associated with either the
375. Dell, Dell Marketing, Ridge, a former Dell employee, and certain MOT
continue to monetarily profit from the sale, installation and maintenance of the
Rouge, and other local governmental agencies, including the Parish of St. John
the Baptist, which recently purchased a wireless video surveillance system from
its component parts as part in parcel of wireless video surveillance systems now
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Upon information and belief, Ciber continues to monetarily profit from its
in New Orleans.
376. To the extent that any cause of action may be otherwise barred by an
concealment, CamSoft maintains that the secretive actions of the Dell Alliance
appropriate determination of its cause of action. Much of what was pled herein
was either learned during CamSoft’s brief attempt to intervene in the New
Court.
377. CamSoft seeks damages for the following list of damages, and reserves its
damages for loss of gross proceeds or profits as permitted by law; (2) treble
damages as permitted by law; (3) reasonable royalties; (4) damages for unjust
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enrichment caused by trade secret misappropriations not taking into account
computing damages for actual loss; (5) disgorgement of those gross proceeds
circumvention of the state public bid laws; (6) disgorgement of those gross
the design of wireless video surveillance networks; (8) loss of gross market
competing IT Services providers, such as Unisys and Motorola; (9) loss of market
law.
wireless video surveillance system in accordance with La. C.C. arts. 513, 514
and 526;
interest and share pursuant to La. C.C. art. 798, including a proportionate
LLC and Southern Electronics Supply Company, Inc. in the matter entitled
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Active Solutions, et al v. Dell, Inc., Docket No., 2007-3665, Div. “B”, Orleans
deposit into the registry of the Clerk of Court for the Middle District of
in favor of Active Solutions, et al. v. Dell, Inc., Docket No. Docket No. 2007-
3665 Div.: “B”, Orleans Civil District Court, State of Louisiana, and after the
system between CamSoft Data Systems, Inc., Active Solutions, LLC and
judgment rendered in favor of Active Solutions, et al. v. Dell, Inc., Docket No.
Docket No. 2007-3665, Div.: “B”, Orleans Civil District Court, State of
partnership laws, between CamSoft Data Systems, Inc., Active Solutions, LLC
and
F. Issue permanent injunctive relief forever ordering Mark St. Pierre, Mark
Imagine Consulting, NetMethods, LLC, Veracent, LLC, Logistix, LLC, Ellen Kirk,
AMI Consulting, LLC, Billy Ridge, Steve Renecker, Heather Smith, Dell, Inc.,
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Dell Marketing, L.P., Ciber, Inc., Earthlink, Inc., Motorola, Inc. and MMR
favor of Camsoft Data Systems, Inc. and against Ignace Perrin, Southern Electronics
Supply Company, Inc., Brian Fitzpatrick, Jeff Burkhardt, Active Solutions, LLC,
Gregory Meffert, Linda Meffert, Mark St. Pierre, Mark Kurt, Scott Domke, Paul
Veracent, LLC, Logistix, LLC, Ellen Kirk, AMI Consulting, LLC, Billy Ridge, Steve
Renecker, Heather Smith, Dell, Inc., Dell Marketing, L.P., Ciber, Inc., Donald Evans,
Bill Tolpegin, Donald Berryman, Earthlink, Inc., Motorola, Inc. and MMR
Constructors, Inc. d/b/a MMR Communications, for all damages, either foreseeable
thereon from the date of judicial demand until paid, for all costs of these
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PLAINTIFF FURTHER PRAYS for this Honorable Court to fix the fee for each
and every expert witness they may be required to call or use to establish the cause,
nature or extent of their losses or damages and to tax same as cost herein.
PLAINTIFF FURTHER PRAYS for all orders and decrees necessary and
proper in the premises which law, equity or the nature of the case may permit.
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