Thursday, August 12, 2021

Joe Perkins, founder of Matrix LLC , claims in lawsuit that former employees helped create a competing entity while working for Matrix, siphoning fees and eventually launching Canopy Partners in Florida

Joe Perkins (Donald Watkins' Facebook page)

The founder of a Montgomery-based consulting group, known to some as a "dirty tricks" firm, is suing several former employees, claiming they set up entities to compete with Matrix LLC while still serving as Matrix employees. The suit also claims the former employees improperly retained Matrix trade secrets and proprietary information, including research techniques and confidential information related to the pricing of specialized communications services.

News of the lawsuit, filed in Jefferson County Circuit Court, surfaced last week in an Orlando Sentinel report about funds for "ghost candidates" in Florida state Senate races -- being traced to political operatives in Alabama. The funds wound up benefiting Republican candidates.

Prime defendant in the Perkins lawsuit is Jeff Pitts, who managed Matrix's Birmingham office and also served as the firm's chief executive officer. From the complaint, filed by Birmingham's Campbell Law Firm, which has represented Balch & Bingham in civil matters related to the North Birmingham Suprerfund bribery scandal (Complaint is embedded at the end of this post.):

Pitts created an entity called TMP Interactive in 2018 through which he operated a competing communications consulting business during his employment by Matrix. Pitts even provided services to Matrix clients but billed those clients through TMP Interactive, effectively embezzling money from and unlawfully competing with Matrix. 

Starting in 2017, Pitts . . . created various other entities -- some 501(c)(4) organizations --as vehicles to accept money from various Matrix clients.

In late 2020, Pitts informed Perkins that he wanted to resign from Matrix and form his own competing communications company. That led to the formation of Canopy Partners LLC in Plantation, FL, and Pitts took three other Matrix workers with him. From the complaint:

Upon the resignation of these employees, Matrix changed the locks on its Birmingham office and undertook an inventory of the equipment it owned and was used by . . . the former employees. . . . 

Matrix's in-house technology team realized that the computer server in the Birmingham office had been physically compromised. It appeared that someone had tried to physically destroy the server in an apparent attempt to prevent access to the electronic information it contained. This realization caused concern that Pitts and the other former employees were attempting to hide or destroy data stored on the server.

 

11 comments:

Anonymous said...

If Perkins can prove these allegations, I'd say his former employees have serious problems on their hands.

Anonymous said...

The complaint says Pitts worked at Matrix for 26 years. Why would such a veteran employee suddenly start biting the hand that feeds him? Strange.

Anonymous said...

I'm guessing the work environment at Matrix somehow became toxic, and a parting of the ways was the end result.

legalschnauzer said...

I agree these allegations, if proven, could have serious repercussions. This sounds particularly serious:

Pitts created an entity called TMP Interactive in 2018 through which he operated a competing communications consulting business during his employment by Matrix. Pitts even provided services to Matrix clients but billed those clients through TMP Interactive, effectively embezzling money from and unlawfully competing with Matrix.

legalschnauzer said...

When the word "embezzling" enters the equation, it gets your attention.

legalschnauzer said...

This also sounds serious:

Starting in 2017, Pitts . . . created various other entities -- some 501(c)(4) organizations --as vehicles to accept money from various Matrix clients.

To my ears, that hints at theft.

Anonymous said...

I wonder if Perkins has filed a criminal complaint on some of this. The part about someone breaking into the computer system sounds like vandalism.

legalschnauzer said...

In Alabama, I think the statutory term for vandalism is "criminal mischief." Here's how it is defined:

(a) A person commits the crime of criminal mischief in the third degree if, with intent to damage property, and having no right to do so or any reasonable ground to believe that he or she has such a right, he or she inflicts damages to property in an amount not exceeding five hundred dollars ($500).

(b) Criminal mischief in the third degree is a Class B misdemeanor.

But yes, the lawsuit seems to be describing an act of criminal mischief.

legalschnauzer said...

I sense some irony here. Matrix seems to have a reputation for resorting to subterfuge in order to achieve its clients' goals. And yet, the company now is alleging subterfuge was going on in their own house -- right under their noses, and they didn't see it, at least not right away.

Anonymous said...

Did you just give up on Bill Pryor or did he and the Alabama legal profession mob get to you and shut you down? Seems more likely it was the latter. He should still be made to pay for his homophobia.

legalschnauzer said...

No, I haven't given up on Bill Pryor, and he hasn't shut me down. In journalism, you generally need a lead to start pursuing a story -- something to go on. That's how the original Pryor stories came to be; I had a lead, something to follow -- and it led to stories, photos, etc. At this point, I don't have any leads that might direct me to more Pryor stories. But of course, that could always change in an instant.

As for making Pryor pay for his homophobia, that's not my role. For one thing, it's not illegal to be a homophobe, although it's a poor quality in a federal judge. Second, oversight on federal judges, to the extent there is any, falls to Congress.

My question would be: Did Pryor make false statements on his confirmation papers, or in his testimony? Was he asked about events in his past that would embarrass him or the president who nominated him -- and did he fail to disclose them? My understanding is that such a question usually is asked of federal nominees, and if Pryor lied about it, would that be grounds for impeachment. That potentially could be a very big story, but someone from Congress must have the guts to prove the issue. I imagine the background on Pryor is well known by now; Trump passed him over twice for SCOTUS -- and there probably was a reason for that.