[n]sometimes I nor Bellicose has ‘controlled’ any underwriting standards used by as well as LVD’s lending people-at all times the LVD business retained full control over the underwriting criteria used to make loans.

The personal guarding and you may unobtainability of mental assets created by SourcePoint, because the discussed from the Martorello on created listing, is even completely within possibility together with his assertion inside the declaration that “LVD acquired and you may chosen the significant more monetary value of possession of all the rational possessions build within the contract of the SourcePoint.” That just don’t happen. To put it differently, Martorello misrepresented the latest pertinent issues.

The fresh Tribal Defendants and Martorello said you to definitely “Red-colored Stone consulted having Bellicose in the day-to-go out businesses, but every decisions was in fact often made by Yellow Rock’s executives or expressly delegated and you may checked by Yellow Rock’s managers.” (ECF No. forty on 5, Hazen Declaration in the ¶ 11; ECF No. 106-1 from the ¶ 22) The new list suggests that is not genuine. That is well-depicted from the testimony away from Craig Mansfield, good co-movie director getting Red Stone. -115:3; 115:4-14; -22; -18; -; -120:1) Which is fully consistent with Martorello’s realizing that the fresh Tribal managers do-nothing.

Mansfield acknowledge he did not learn “how decision away from whether or not to fund the borrowed funds happened” otherwise if or not one process took place to your scheduling

The negotiations respecting the sale of Bellicose and its conversion into Big Picture are instructive. When discussing the sale, in , Martorello informed LVD that, in any sale, “the vendor will have to remain a last say-so in business decisions to protect the organization out of becoming lost by the new owner before being paid.” ( email between M. Martorello, K. Wichtman, D. Gravel, and Giizhigookway) (emphasis added). Then, in , Martorello informed Wichtman that:

The guy failed to know the way Reddish Rock gotten the money it wanted to loans brand https://pdqtitleloans.com/title-loans-nj/ new loans and you can didn’t know the way the newest call centers throughout the Philippines work (Mansfield Dep

After further discussions, the Bellicose companies will be ended up selling simply ‘as is actually,’ with existing capital management in place and the providers kept drastically a comparable. Of course, a purchase, merger and dissolution are required for a tribal buyer, so the name will/jurisdiction of the LLC will change . . . what’s more, it has to be run-in an equivalent format it is today.

We respectfully opt to always keep people details of [SourcePoint] Ip (including DM) explicitly to have internal eyes only, for the protection of our business and you will maintaining the integrity of an acquisition of the SourcePoint business. Should an acquisition actually transpire, obviously these will be relevant questions for the eyes of Management and those in the acquiring company on a need to know basis as well (I.e [sic] Certain IP, even in small doses should at all times be aggressively protected when the result is such a massive competitive advantage, like the process of even just utilizing DM itself which SourcePoint owns and created.

I wasn’t suggesting one to [SourcePoint] disclose their secret sauce however, simply one to [SourcePoint] would be prepared to show brand new co-managers the items it [the fresh new executives] is giving.

All of this shows quite clearly that the key ingredient of the lending operation, the underwriting criteria or “secret sauce,” was SourcePoint’s, not that of any Tribal Entity. And, the record shows that Martorello controlled the lending operations of LVD because, inter alia, he controlled the secret sauce (the key loan underwriting criteria), the linchpin to the lending operations.

In share, the brand new record set that the Plaintiffs established, some certainly, that representations made to brand new Courtroom about who regulated the fresh new LVD financing procedures at the Red Material weren’t true. And you will, this is simply not disputed you to Reddish Rock afterwards is actually “rebranded” to be Huge Visualize. And you may, with the exception of a few makeup alter (otherwise “otpics” since the Martorello demonstrated them), the latest LVD financing operation by way of Huge Photo proceeded as the it got underneath the Yellow Rock structure.