Case Study | Non-Compete Violation | Spastic Plastics
Non-Compete Violation | Spastic Plastics
Training and mentoring employees in your business can be a wonderful investment for your corporate future, but what happens when your mentee leaves the company, taking valuable clients and industry secrets with them?
Lauth Investigations was contacted by a Client who represented a plastics company. The owner had been grooming one of his employees to take the business over when it was time to retire. However, the Subject had left the plastics company and the Client believed he subsequently started his own business with an identical business model in violation of the non-compete violation. The Client also believed that Subject was receiving funding from a third-party in order to start his business.
Lauth conducted interviews with Client and relevant personnel within the plastics company in order to build a background on subject, including relevant information for surveillance and other forms of intelligence gathering.
Lauth successfully attempted to implant an undercover operative within the Subject’s new business with the intent to successfully document his breach of the non-compete agreement and connect his business with his alleged investors. When the Subject advised his business was not currently hiring, investigators began conducting surveillance on the investors. The investors were observed meeting with Subject regarding the business and finances both onsite at the new business and off. Lauth investigators were able to document the Subject’s admission that these alleged investors had financed his business venture in breach of his non-compete agreement.