$IFUS sues ex-directors for millions!

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Case Number: CACE-16-002767 Division: 08 Filing # 37830403 E-Filed 02/15/2016 05:56:49 PM
IN THE CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA
CASE NO.
F.B.N. 288136
IMPACT FUSION INTERNATIONAL, INC.,
a Nevada Corporation and
SUPREME ENERGY RESOURCES, INC.,
a Nevada Corporation,
Plaintiffs,
-vs-
STEVEN ADELSTEIN,
JOSEPH SCIVOLETTO and
ABSORBEZZ, LLC., a Florida limited
liability company,
Defendants.
COMPLAINT
Plaintiffs, IMPACT FUSION INTERNATIONAL, INC., SUPREME ENERGY
RESOURCES, INC., sue Defendants, STEVEN ADELSTEIN, JOSEPH SCIVOLETTO
and ABSORBEZZ, LLC., and alleges:

8. Plaintiff, IMPACT, is the original and current owner of a formula and process which comprises a product known as "Nutri-Mastic." Nutri-Mastic is a combination of minerals and mastic gum which are processed into a liquid which has many benefits of absorption, and which kills bacteria. It is sold in human and animal nutritional supplements by IMPACT. Nutri-Mastic increases the health and wellness of humans and animals, such as domestic pets and livestock.

9. The aforementioned formula is a "Trade Secret" pursuant to § 688.002 (4) of the Florida Statutes which derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.

10. Plaintiff, SUPREME, was given exclusive rights, by IMPACT, to distribute and sell Nutri-Mastic in the stream of commerce. This permission was contractually given in approximately December, 2012.

11. In February, 2009, SCIVOLETTO became a member of the Board of Directors
of IMPACT, and he assumed all of the duties, including fiduciary duties, attendant to one who serves on that Board of Directors of IMPACT.

12. In April, 2009, SCIVOLETTO became a member of the Board of Directors of SUPREME, and he assumed all of the duties, including fiduciary duties, attendant to one who serves on that Board of Directors of SUPREME.

13. In his position as a member of the Board of Directors, SCIVOLETTO had access to all of the proprietary information owned by SUPREME concerning its products, including, but not limited to, the core ingredients of the Nutri-Mastic product for animal consumption.

14. In February, 2009, IMPACT purchased the forerunner of the Nutri-Mastic product from Defendant SCIVOLETTO and from a company known as Intact Enterprises, Inc., a Florida Corporation. At that time, IMPACT purchased all rights to have the product manufactured and to be able to sell it to the wholesale and consumers market across the United States and Europe, including, but not limited to consumers in the State of Florida. The purchase included a "patent pending" for the forerunner of the Nutri-Mastic product.

15. At all times material from the date of the aforementioned sale, SCIVOLETTO was under a duty to maintain complete permanent secrecy as to the formula for the Nutri-Mastic product.

16. Subsequent to the purchase of the forerunner of the Nutri-Mastic product, IMPACT changed the name of the product which was purchased to "Nutri-Mastic," IMPACT started manufacturing that newly named product through the same manufacturer as was making it prior to the aforementioned purchase, and IMPACT began selling the product in the wholesale and consumer marketplaces.

17. Once the sale was completed to IMPACT, SCIVOLETTO and Intact Enterprises,Inc., had no rights to sell the forerunner product or use the brands of IMPACT.

18. IMPACT FUSION licensed, in December, 2012, SUPREME, to sell the Nutri-Mastic formulated product in the stream of commerce for only animal feed.

19. In 2013, Defendant ADELSTEIN became a member of the Board of Directors of SUPREME, and assumed all of the duties, including fiduciary duties, attendant to one who serves on that Board of Directors. These duties included the obligation not to disclose confidential and proprietary trade secret information of SUPREME, as licensed by IMPACT.

20. In his position as a member of the Board of Directors, ADELSTEIN had access to all of the proprietary information owned by SUPREME concerning its products, including, but not limited to the core ingredients of the Nutri-Mastic product for animal consumption.

21. As a member of the SUPREME Board of Directors, ADELSTEIN had a fiduciary duty to SUPREME to maintain and guard the secrecy as it pertains to the Nutri-Mastic product and other products owned by SUPREME. These duties included the obligation not to disclose confidential and proprietary trade secret information of IMPACT.

22. On July 13, 2013, ADELSTEIN and SCIVOLETTO were formally removed for cause as members of SUPREME the Board of Directors.

23. On July 15, 2013, ADELSTEIN started the limited liability company known as ABSORBEZZ LLC., in Broward County, Florida.

24. After ABSORBEZZ LLC., was formed, both ADELSTEIN and SCIVOLETTO became shareholders of ABSORBEZZ LLC.

25. Following the removal of ADELSTEIN and SCIVOLETTO, and the formation of ABSORBEZZ LLC., SUPREME and IMPACT started to lose business sales pertaining to


two products known as "Supreme Gold Plus" and "Equine Intact," both of which included the core proprietary formula ingredients of the Nutri-Mastic product.

26. Upon information and belief, in 2013, ABSORBEZZ LLC., at the direction of ADELSTEIN and SCIVOLETTO, began selling a nutritional product primarily for chickens, swine, cattle and deer in the United States. That nutritional product was the proprietary Nutri-Mastic formulated product, which had been sold with exclusive rights given to SUPREME by IMPACT.

27. For each sale of any product sold by SUPREME with Nutri-Mastic as a component, IMPACT was entitled to monetary compensation since SUPREME had to purchase the Nutri-Mastic from IMPACT prior to SUPREME selling its products to the wholesale and consumer markets.

COUNT I- VIOLATION OF FLORIDA'S UNIFORM TRADE SECRETS ACT
(AS TO ALL DEFENDANTS)

28. The allegations of paragraphs 1 through and including 27 are incorporated herein as if fully set forth.

29. At all times material, ADELSTEIN and SCIVOLETTO employed "improper means," as defined in § 688.002 of the Florida Statutes, to use the IMPACT/SUPREME Nutri-Mastic formula, which, at all times material, comprised the proprietary Nutri-Mastic product and to sell it to third party consumers in the stream of commerce, without the permission of the Plaintiffs. Specifically, "improper means" includes a breach of a duty to maintain secrecy as ADELSTEIN and SCIVOLETTO were former directors of SUPREME.

30. At all times material, ADELSTEIN and SCIVOLETTO misappropriated the confidential proprietary trade secrets of SUPREME and IMPACT pertaining to the formula of the Nutri-Mastic product, as both ADELSTEIN and SCIVOLETTO knew and had reason to know that the IMPACT and SUPREME trade secrets pertaining to Nutri-Mastic were being used without the express or implied consent of IMPACT and SUPREME.

31. Both ADELSTEIN and SCIVOLETTO are persons who derived knowledge of the aforementioned trade secret by their positions as former members of the Board of Directors of SUPREME. Directors and former directors owed a duty to SUPREME to maintain the secrecy of the trade secret.

32. Both ADELSTEIN and SCIVOLETTO had a duty to maintain the secrecy of the Nutri-Mastic formula and were aware that the formulation of Nutri-Mastic was a proprietary trade secret which, at all times material, was and is a trade secret of the Plaintiffs.

33. Both ADELSTEIN and SCIVOLETTO knew, at all times material, that IMPACT and SUPREME made efforts which were reasonable under the circumstances, to maintain the secrecy of the product.

34. As a direct and proximate result of the misappropriation of the trade secrets of IMPACT and SUPREME, Defendants ADELSTEIN and SCIVOLETTO have caused IMPACT and SUPREME to suffer monetary damages, including, but not limited to the actual past and future losses caused by the misappropriation and the unjust enrichment caused by the aforesaid misappropriation.

35. As to Defendants ADELSTEIN and SCIVOLETTO, the misapproprialions, as set above, were willful and malicious, and therefore, pursuant to § 688.005, the Plaintiffs are entitled to the award of reasonable attorney's fees.
WHEREFORE, Plaintiffs, IMPACT FUSION INTERNATIONAL, INC., SUPREME ENERGY RESOURCES, INC., demand judgment against the Defendants, STEVEN

ADELSTEIN, JOSEPH SCIVOLETTO and ABSORBEZZ, LLC., for past and future damages, pre-judgment interest, post judgment interest, attorney's fees pursuant to Section 688.005 of the Florida Statutes, the taxable costs of this action and such further relief as this Honorable Court deems appropriate and further respectfully demand a trial by jury of all issues so triable as of right.
Dated this Allay of February, 2016.
LAW OFFICE OF MITCHELL A. CHESTER, P.A.
Attorney for Plaintiffs
7951 SW 6th Street, Suite 112
Plantation, Florida 33324-3211
(954) 759-9960 I FAX (954) 759-9930
Primary E-mail:
mchesterlaw@gmail.com
Secondary E-mail:
mchester itchellchest .com