Complaint Review: Credit Freedom and Restoration - pipersville pennsylvania

BRUCE L. BALDWIN, ESQUIRE                                        ATTORNEY FOR PLAINTIFF

ATTORNEY I.D. 42304                                                        CREDIT FREEDOM &

WOLF, BALDWIN & ASSOCIATES, P.C.                           RESTORATION CORP.

800 E. HIGH STREET

P.O. BOX 444

POTTSTOWN, PENNSYLVANIA 19464

(610) 323-7436                                                                                                                                  

 

CREDIT FREEDOM &                                 :           IN THE COURT OF

RESTORATION CORP.                               :           COMMON PLEAS OF

6000 Wismer Road                                          :           OF BUCKS COUNTY

Pipersville, PA 18947                                      :           PENNSYLVANIA

                                                                        :

Plaintiff                                   :          

            v.                                                         :           CIVIL ACTION – LAW AND EQUITY

                                                                        :

ALEX MURPHY and             NICOLE                     :

GUCCIONE, collectively t/a CREDIT         :          

FIRST, LLC                                                    :

1104 Mews Drive                                            :          

Sellersville, PA 18960                                     :

                                                                        :           NO.:   

                        Defendants                              :

           

 

NOTICE TO DEFEND

 

            You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and notice are served, by entering a written appearance personally or by an attorney and filing in writing with the Court your defenses or objections to the claims set forth against you.  You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed for any other claim or relief requested by the plaintiff.  You may lose money or property or other rights important to you.

 

            YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE.  IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.

 

BUCKS COUNTY BAR ASSOCIATION

135 E. State Street, P.O. Box 300

Doylestown, PA  18901

Telephone 215-348-9413 or 1-800-273-2929

 

 

BRUCE L. BALDWIN, ESQUIRE                                        ATTORNEY FOR PLAINTIFF

ATTORNEY I.D. 42304                                                        CREDIT FREEDOM &

WOLF, BALDWIN & ASSOCIATES, P.C.                           RESTORATION CORP.

800 E. HIGH STREET

P.O. BOX 444

POTTSTOWN, PENNSYLVANIA 19464

(610) 323-7436                                                                                                                                  

 

CREDIT FREEDOM &                                 :           IN THE COURT OF

RESTORATION CORP.                               :           COMMON PLEAS OF

6000 Wismer Road                                          :           OF BUCKS COUNTY

Pipersville, PA 18947                                      :           PENNSYLVANIA

                                                                        :

Plaintiff                                   :          

            v.                                                         :           CIVIL ACTION – LAW AND EQUITY

                                                                        :

ALEX MURPHY and             NICOLE                     :

GUCCIONE, collectively t/a CREDIT         :          

FIRST, LLC                                                    :

1104 Mews Drive                                            :          

Sellersville, PA 18960                                     :

                                                                        :           NO.:   

                        Defendants                              :

 

COMPLAINT FOR INJUNCTIVE RELIEF, AND FOR MONEY DAMAGES

 

            Now Comes Plaintiff, Credit Freedom & Restoration Corp., by and through its attorneys, Wolf, Baldwin & Associates, P.C., and sets forth the following Complaint for Injunctive Relief, and for Money Damages:

Introductory Statement

Credit Freedom & Restoration Corp. (“CFRC”) is a Pennsylvania business corporation, organized in August of 2018 to provide credit-repair services to consumers through a proprietary software program system developed by its founder, Jonathan Cavalea (“Cavalea”). CFRC is in some respects a successor to Cavalea’s prior company, the New York-based Credit Freedom Corporation (the “NY Company”), which operated under the same business model, and which Cavalea is in the process of dissolving following the Cavalea family’s move from New York to Pennsylvania.

Defendants were originally employed with the NY Company. When Cavalea moved business operations to Pennsylvania, he helped Defendants move to Pennsylvania also, with CFRC increasing Defendants’ base pay rates from $11.00 per hour with the NY Company to $15.00 per hour with CFRC, providing Defendants with profit-based incentives, allowing Defendants to live rent-free on the Cavaleas’ Pipersville, Pennsylvania property for a month, and helping Defendants improve their credit scores so that they could purchase their own house.

At the time Defendants started their employment with CFRC, in early August of 2018, Defendants each signed the Non-Compete Agreements attached hereto as Exhibit A and B. In addition to needing protection for CFRC’s propriety credit-repair software, CFRC also required non-competes for purposes of preserving its client list and client database.

In November of 2018, just three months after she started working for CFRC, Defendant Guccione quit her employment with CFRC, purportedly for personal reasons. Shortly afterwards, in January of 2019, Defendant Murphy also quit his employment with CFRC, allegedly because he was not making enough money from his employment with CFRC.

On or about February 1, 2019, CFRC learned from third-party sources that Defendants were operating a credit repair service under the name of “Credit First, LLC”. Despite the fact that Defendants were operating this business out of their home in Sellersville, Pennsylvania, “Credit First, LLC” is not organized or authorized to do business in the Commonwealth of Pennsylvania.

CFRC engaged other counsel to send Defendants the cease-and-desist letters attached hereto as Exhibits C and D, dated February 5, 2019.Rather than comply, Defendants have continued their competition in violation of the Non-Compete Agreements, have escalated their unlawful activity by making false and disparaging social media posts against CFRC, including  the false “Rip off Report” post attached hereto as Exhibit E, and have personally contacted at least one of CFRC’s clients to advise that client not to use CFRC’s services.

JURISDICTION AND VENUE

1. This is an action for the enforcement of two Non-Compete Agreements expressly governed by the laws of the Commonwealth of Pennsylvania, and expressly subject to venue in Bucks County, Pennsylvania.
2. Jurisdiction and venue are also proper in the Court of Common Pleas of Bucks County, Pennsylvania pursuant to 42 Pa. C.S.A. § 5308 and Pa. R.C.P. 1006 for reason that Defendants’ primary residence is located in Bucks County, and also for reason that the causes of action arose in Bucks County, Pennsylvania.
3. Plaintiff is Credit Freedom Restoration Corp., a Pennsylvania business corporation with a principal place of business at 6000 Wismer Road, Pipersville, Buck County, Pennsylvania 18947.
4. Defendants are Alex Murphy (“Murphy”) and Nicole Guccione (“Guccione”), adult individuals residing at 1104 Meus Drive, Sellersville, Bucks County, Pennsylvania 18960.

FACTUAL BACKGROUND

1. Credit Freedom & Restoration Corp. (“CFRC”) is a Pennsylvania business corporation, organized in August of 2018 to provide credit-repair services to consumers through a proprietary software system developed by its founder, John Cavalea (“Cavalea”).
2. Plaintiff’s proprietary software program aggregates the credit-related laws of the federal government and applicable state governments in order to help personalize credit-repair strategies for Plaintiff’s clients.
3. Plaintiff’s proprietary software was previously used by Cavalea’s prior company, the New York-based Credit Freedom Corporation (the “NY Company”), which operated under the same business model and utilized the same proprietary software.
4. Cavalea began dissolution of the NY Company following the Cavalea family’s move from New York to Pennsylvania.
5. Prior to the Cavalea family’s move from New York to Pennsylvania, Defendants were employed with the NY Company, where they earned $11.00 per hour.
6. When Cavalea moved business operations to Pennsylvania, he helped Defendants move to Pennsylvania also, and increased Defendants’ base pay rates from $11.00 per hour with the New York Company to $15.00 per hour with CFRC[BLB1] .
7. In addition to providing Defendants with pay increases, CFRC also (a) provided Defendants with profit-based incentives, (b) allowed Defendants to live rent-free on the Cavaleas’ Pipersville, Pennsylvania property for the month following their move to Pennsylvania, and (c) helped Defendants improve their credit scores so that they could purchase their own house, in Sellersville, Pennsylvania and (d) gave Defendants $500.00 toward a mortgage down payment.
8. Contemporaneous with the start of their employment with CFRC, in early August of 2018, because of Defendants’ increased responsibilities and in consideration of Defendants’ increase payPlaintiff presented Defendants with the Non-Compete Agreements attached hereto as Exhibits A and B, respectively, and Defendants thereupon signed the Non-Compete Agreements, without objection.
9. The Non-Compete Agreements were necessary in order to protect Plaintiff’s proprietary credit-repair software, and also in order to preserve Plaintiff’s client list and client database.
10. In November of 2018, just three months after she started working for CFRC, Defendant Guccione quit her employment with CFRC, reportedly for personal reasons.
11. Thereafter, in January of 2019, after receiving his Christmas bonus and holiday pay, Defendant Murphy also quit his employment with CFRC, allegedly because he was not making enough money from his employment with CFRC.
12. At no time did either Defendant advise Plaintiff of his or her intention to pursue competitive business activity.
13. On or about February 1, 2019, CFRC learned from third party sources that Defendants were operating a credit repair service under the name of “Credit First, LLC” out of their home in Sellersville, Pennsylvania.
14. Credit First, LLC is not organized under the laws of the Commonwealth of Pennsylvania, and is also not authorized to do business in the Commonwealth of Pennsylvania.
15. Because Credit First, LLC is not organized under the laws of the Commonwealth of Pennsylvania and is not authorized to do business under the laws of the Commonwealth of Pennsylvania, Defendants are effectively utilizing the name “Credit First, LLC” as an unregistered fictious name for their business.
16. Based upon Plaintiff’s review of Defendants’ bare-bones website and also based upon other information received by Plaintiff, Defendants are utilizing all or parts of Plaintiff’s business model in order to compete with Plaintiff.
17. Specifically, Defendants are utilizing the following aspects of Plaintiff’s business model, which Plaintiffs learned through their employment with Plaintiff:
    1. Plaintiff’s ate payment format and law compilations;
    2. Plaintiff’s collection format and law compilations; and
    3. Plaintiff’s _________ letter layout[BLB2]  and format.
18. Both Non-Compete Agreements provide the following restrictions against competition:

The recipient warrants and guarantees that throughout the duration of this Agreement and for a period not to exceed 5 years following the culmination, completion or termination of this Agreement, that s/he shall not directly or indirectly engage in any business that would be considered similar in nature to/with Credit Freedom & Restoration Corp., its subsidiaries and any current or former clients and/or customers within a 500 hundred-mile radius of Pipersville, Pennsylvania. Nor shall the Recipient solicit any client, customer, officer, staff or employee for the benefit of himself/herself or a third-party that is or may be engaged in similar business.

1. Both Non-Compete Agreements also provide as follows:

The Recipient herein acknowledges (i) the unique nature of the protections and provisions established and contained within this Agreement, (ii) that the Company shall suffer irreparable harm if the Recipient should breach any of said protections or provisions, and (iii) that monetary damages would be inadequate to compensate the Company for said breach. Therefore, should the Recipient cause a breach of any of the provisions contained within this Agreement, and then the Company shall be entitled to injunctive relief, in addition to any other remedies at law or equity, to enforce said provisions.

 

1. Following its discovery that Defendants were operating a competitive business in violation of there Non-Compete Agreements, CFRC engaged counsel to send Defendants the cease-and-desist letters attached hereto as Exhibit C and D, which were sent to Defendants on February 5, 2019.
2. Defendants have failed to reply to said cease-and-desist letters in any way.
3. Rather than comply with their cease-and-desist obligations, Defendants have continued their competition in violation of the Non-Compete Agreements.
4. Further, rather than comply with their cease-and-desist obligations, Defendants have escalated their unlawful activity by making false and disparaging social media posts against CFRC and its officers, including the false “Rip-off Report” post attached as Exhibit E, and by making the false Better Business Bureau complaint attached as Exhibit F, which Defendants filed on February 9, 2019 under the false name of “Jay Balsamo.”
5. In addition, Defendants have personally contacted at least one of CFRC’s existing clients to dissuade that client from utilizing CFRC’s services, specifically advising the client not to do business with CFRC.

COUNT I – INJUNCTIVE RELIEF

1. Plaintiff incorporates by reference paragraphs 1 through 28 above as though fully set forth herein.
2. For the reasons set forth in paragraphs 20 through 28 above, Defendants stand in plain breach of their obligations under their respective Non-Compete Agreements, including both the Non-Competition and Non-Solicitation terms thereof.
3. Defendants are without legitimate reason or lawful excuse or privilege to engage in business in violation of their Non-Compete Agreements.
4. Defendants are also without lawful excuse or privilege to disparage Plaintiff’s business and its officers, whether by social media posts, by telephone, orally or by other means of communication.
5. If Defendants are not restrained from engaging in competition and solicitation in violation of their Non-Compete Agreements, Plaintiff’s business will be irreparably harmed.
6. Plaintiff has no adequate remedy at law for the damage which Defendants are currently inflicting on Plaintiff’s business and business reputation.
7. Defendants will suffer no legal injury from the grant of injunctive relief for reason that Defendants have no legal right to engage in competition or solicitation of clients in violation of the terms of their Non-Compete Agreement.
8. Defendants’ breach of contract is actionable, the rights of Plaintiff are clear, and Plaintiff is likely to succeed on the merits of its claim for the reasons set forth in paragraphs 20 through 28 above.

WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter injunctive relief in favor of Plaintiff pursuant to the prayers for relief set forth in the Petition for Injunctive Relief and supporting Memorandum of Law filed contemporaneously with this Complaint.

COUNT II – COMMERCIAL DISPARAGEMENT

1. Plaintiff incorporates by reference paragraphs 1 through 28 above as though fully set forth herein.
2. The statements made by Defendants in the attached Exhibits E and F are false.
3. Defendants had no privilege to make the statements set forth in attached Exhibits E and F.
4. Defendants made the statements in the attached Exhibits E and F with intent to damage Plaintiff.
5. Plaintiff has suffered, and will continue to suffer, direct pecuniary loss as a result of the false and disparaging statements made by Defendants in the attached Exhibits E and F.
6. Plaintiff believes and therefore avers that Defendants have made other disparaging statements against Plaintiff which Plaintiff has yet to uncover, which are likewise unprivileged, and made with intent to harm Plaintiff and which area likely to cause Plaintiff pecuniary loss.

WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter judgment in favor of Plaintiff and against both Defendants, jointly and severally, for actual and punitive damages, reasonable attorney fees, and such other relief as the Court deems appropriate, in an amount in excess of $50,000.00, exclusive of costs and interest.

COUNT III – BUSINESS DEFAMATION

1. Plaintiff incorporates by reference paragraphs 1 through 28 above as though fully set forth herein.
2. The communications made by Defendants, as referenced in the attached Exhibits E and F, are defamatory in character.
3. The above referenced defamatory statements were published by Defendants, and were intended by Defendants to apply to Plaintiff.
4. The recipients of the false and defamatory statements referenced above would clearly understand their defamatory meaning, and would also clearly understand that those statements were intended to apply to Plaintiff.
5. Plaintiff has suffered, and will continue to suffer, damage to its business and business reputation as a result of Defendants’ publication of said false and defamatory statements.
6. Defendants had no privilege to publish the referenced false and defamatory statements.

WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter judgment in favor of Plaintiff and against both Defendants, jointly and severally, for actual and punitive damages, reasonable attorney fees, and such other relief as the Court deems appropriate, in an amount in excess of $50,000.00, exclusive of costs and interest.

COUNT IV – TORTIOUS INTERFERENCE WITH CONTRACTUAL RELATIONS

1. The statements referenced in paragraphs 27 and 28 above, and in attached Exhibits E and F, interfere with Plaintiff’s current and prospective contractual relations.
2. Defendants’ purpose in making the false and defamatory statements referenced in paragraphs 27 and 28, and in attached Exhibits E and F, is to interfere with Plaintiff’s current and prospective business relationships.
3. Defendants had and have no privilege or legal justification to make the statements referenced in paragraphs 27 and 28, and in Exhibits E and F.
4. Plaintiff has suffered, and will continue to suffer a loss of business and business relationships as a result of the statements referenced in paragraphs 27 and 28 above and in attached Exhibits E and F.

WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter judgment in favor of Plaintiff and against both Defendants, jointly and severally, for actual and punitive damages, reasonable attorney fees, and such other relief as the Court deems appropriate, in an amount in excess of $50,000, exclusive of costs and interest.

 [BLB1]Not sure I understand your comment on  this. Is this not accurate?

 [BLB2]What kind of letter? Marketing letter to clients? Letter to creditors?

As someone who claims to "give a sh*t" why are you posting these lies? Do you not realize you're not only affecting the company but also the employees, who are trying to make a living? You may no longer be working here, which was your own choice, but we do, and there's a reason why we stay. As for saying we are worked like slaves....do you really think anyone would stay with a company who worked them like slaves? No. The state minimum wage is $7.25 and as you are well aware, we all make much over that. We make good money, we all have the opportunity to earn bonuses, and when we do, we are given them. 

You want to have your own company, fine, maybe if you put as much effort into it as you do with making up lies and posting complete crap online, you'd get somewhere with it. 

You both have a lot of growing up to do, be adults, stop trying to harm people who are working hard and trying to take care of their families. We don't have time for any of this.

Anyone can start up a business and try to live the American dream..I totally agree with that, but not the way you sneakily went about it. If it were not for Credit Freedom you would NOT be where you are today. You seem to forget everything that Melissa and Jon did for you. You and your daughter were homeless...They got you out of that situation without batting an eye.

They gave you an amazing opportunity and you threw it away.. You have completely dismissed everything that they have done for you and now you are trying to defame their character and reputation of the company. You were able to purchase a home because of them. I don't see how this is helping you. You went about things the wrong way.

Melissa and Jon would have helped you with anything you decided to do. Melissa and Jon do not have to pay anyone to write any review and everyone here gets paid a fair amount. As far as bonuses, we all have an opportunity to make them. I can speak for myself, I do very well with them. You unfortunately, did not have the drive or capability.

We have a great group here now that loves their job and respects their bosses. No one works as slaves here and everyone has the same opportunity. As for the clients, they go above and beyond for them on a daily basis. Where do You get off stating they take money from loans and put stuff back on their credit.

You need to be careful, you can get in trouble for making stuff up like that. As a business owner..lol..You should know that. You fabricating these stories about the way the business runs is disgusting. Although your new business venture, I am sure is short lived, would you appreciate someone doing the same to you? And why a credit repair business, you did not excel when you were an employee? Just wondering.

You were actually a poison to the office in more ways than one. I am going to be professional and not get into specifics, but you know what I mean. I was able to take an opportunity and turn it into something good. I will not allow you to try and cause problems for me and the company I work for. The slander has to stop.

Melissa and Jon did not try to prevent anyone from getting any kind of benefits. If they were entitled to them, they would have gotten them. As for mental health, I think it's time for a check up young lady. Enough with the stories...

As a true glad to be FORMER employee I would love to state the TRUTH about "Credit Freedom and Restoration”. The truth that will be hidden by every one of these "employees” that get paid the absolute minimum and worked as slaves on a daily basis, until they realize it on their own. First, this exact statement is what she wrote on MY business page.

She is a nervous wreck in regards to a business branching out other than hers. Hate to break it to you but you’re not the only credit repair company in America. You harass people, SEXT clients at work and have even shown naked photos to your employees of your clients when they "accidentally” sent you naked photos and you promise to "not show anyone” then turn around to show the whole office. (That is located in her driveway... IN A GARAGE) in case you were unaware.

Anyone who claims they haven’t had results, this company is told to LIE to the clients and throw it on them that they haven’t "sent their IDs” over. This company has put back their work on to people credit reports if the client gives too much of a problem: they are dishonest with the IRS and hide their payment system from employees once they realize the employee knows this company makes 2million a year PLUS.

They pay the absolute minimum and will always tell you how there’s "room to make more with bonus’s” that you never receive. This company STEALS money from their clients loans, making them pay for a higher amount just so they can get 10% of their loan before they process it to the clients bank account.

This company will not allow the employees to even use the bathroom when they have too without complaining: you are not allowed to make coffee or stand up for even a second throughout the day because you are " on the clock” they have given BAD REVIEWS for AMAZING employees who left as a reference due to not moving to PA with them after finding out the TRUTH about these so called Christians.

This company REFUSED to give an employee maternity leave and tried to write up every employee this way if they didn’t go to PA they wouldn’t qualify for unemployment. This company have tried to disqualify a SINGLE mother of THREE her unemployment from not going to PA and lying to get her unemployment Benefits revoked.

This company speaks with extreme profanity and curses out all employees (at some point) so get ready "new employees” because you WILL be next. This company has screwed over quite a few former employees and every single one of them would agree to write a review on here I am sure. This employer had all of her employees in tears at SOME point in the office no fail from all of the disrespect.

Melissa made all of These employees write a review in hopes to "flood out” my review. Melanie, you are worked as a Slave and will soon see the truth if you have not already. They have never wanted to help you and will always talk s**t about you behind your back. So as a former co worker, someone who actually gave a sh*t about you.. do yourself.. your children.. YOUR FAMILY all a favor and leave this company for your OWN mental health.

If you don’t now, you will eventually. We hope you open your eyes to the TRUTH of credit freedom. There is SO much more that could be said, but I will leave it for the other employees whom know the truth about credit freedom to spread some more honesty here.

This is a completely false report posted under a fake name by two former employees who have decided to start their own business in competition with us. While we do not oppose fair competition, we have to call this out for what it is - a false and malicious report. We are taking all appropriate action to rectify this fraudulent post.

I sit next to the women in question every single day. Not once has she EVER sent anything risque or inappropriate to a client. If you want to belittle someone, at least make it somewhat believable and realistic. She works very hard to ensure her clients happiness is fulfilled and will go through leaps and bounds to make sure they are satisfied with her results.

I can attest for everyone in the office that the needs of our clients is something on our mind whether we're in the office or not. Your unprofessionalism and bittnerness is palpable. 

i just want to say that since i have been working with melissa, she has done nothing but help all of our clients the best she possibly can everytime. They are always saying that we have such a nice staff!

As an employee of this company, I had to comment on what I have just read. Unfortunately, some people will go through great lengths to damage the reputation of good people when they have no successes of their own. I have been working for this company for almost 2 years and I have all but good things to say about them.

They have always gone above and beyond for their clients and employees ( even the one who fabricated this nasty, nasty report) and I admire that. Melisss and her husband are great people and have gone above and beyond for myself and my family as well. They do amazing work and if it were not for them and their kindness and expertise in the credit repair field I would not have been able to purchase my first home.

They do wonderful work, they are honest people and go above and beyond. I know that people get upset and they act out of haste, but this is just absolutley absurd and sickening to say the least.

 

 

I am a new employee at this company and I can honestly say nothing but great things about both Credit Freedom and Melissa. In the short time that I have been here, I have gotten so much help and guidance with both my credit and my personal life. This company strives to give their clients the best possible experience throughout this entire process.

Melissa not only repairs but also helps to rebuild each clients credit which is more than anyone can ask for. I can speak from experience that this process truley works. I have not even fully started my credit repair with Melissa and she has already advised me how to start increasing my scores. It hasn't even been a month and my scores have gone up more than 50 points.

I can vouch for and state that this company is very professional, and we always make our clients the priority. It is both sad and disgusting that someone could speak such lies about an upstanding and helpful company.

In regards to the report posted about Melissa, the OWNER of the company, that is all false. She is an extremely busy woman, constantly on the phone with new and old clients. She always working on people's credit as well. She is a married woman, a mother, a college graduate, and a business owner, she is not doing any of the things stated. She keeps everything professional yet friendly with the clients. How do I know? I sit right in front of her desk.

Credit Freedom is the single best thing to ever happen to me. When I first started working here, I was living in a terrible, run down place. I now have a house, I got a new car, I'm able to pay my bills on time, my cabinets and fridge are always full of food, and I am closer to God than I have ever been. Credit Freedom picked me up when I was going no where. The Christian/family atmosphere has made me better, mentally, physically,financially. I have people I can trust, I have a place to go every day to work where I feel safe.

I was once on a path to nowehere working a dead end job, and now I can do anything. Please do research before believing the nasty report above. You see, this was done out of spite from a former employee. Melissa helps anyone in need, she saved me.