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June 4, 2008 April 28, 2008 April 14, 2008
West Palm Beach, Florida: After months of legal process, ZaaZoom is pleased to announce that its struggle with Jeffrey Applebaum and RMCR, Inc. regarding the illegal sale of credit reports, credit monitoring and identify theft protection through cloned websites and affiliate marketing networks has concluded. On February 26, 2008, the Florida Courts found Jeffrey Applebaum and RMCR in contempt of court for repeated and continuing violations of the court's June 13, 2007 Temporary Injunction Order. A contempt fine in the amount of $150,000 was imposed upon Applebaum and RMCR to coerce their compliance with the Injunction Order - an order that prohibits them from affiliate marketing credit reports, credit monitoring, and identity theft protection through June 25, 2008. As soon as the court transcripts are available and the information is made public we will be updating our website to provide you with additional details on this VERY important protection for the affiliate marketing industry.
West Palm Beach, Florida: After eight weeks of litigation and three days of hearings, the Honorable Robin Rosenberg, Palm Beach County Circuit Court Judge, entered a lengthy Temporary Restraining Order on Wednesday, June 13, 2007 against RMCR Inc. and its founder Jeffrey Marc Applebaum finding that RMCR had misappropriated ZaaZoom Solutions’ confidential information and trade secrets to gain entry into the affiliate marketing business. Citing numerous violations of the Florida Uniform Trade Secrets Act, Judge Rosenberg ordered RMCR and Applebaum to return all of ZaaZoom’s trade secrets, including customer information, secure credit card billing information and sensitive financial formulas. Judge Rosenberg found that ZaaZoom had supplied RMCR with trade secrets under the terms of a written agreement, which restricted their use. RMCR unilaterally terminated that agreement on April 5, 2007 without notice and used ZaaZoom’s trade secrets to organize and launch a competing affiliate marketing business two weeks later. Perhaps the most compelling evidence introduced by ZaaZoom arose from its attorneys’ discovery, just four days prior to hearing, that Applebaum and ZaaZoom’s former affiliate manager, Tim Michael, had conspiring for months to “take over affiliate marketing” using ZaaZoom’s customer base, web designs, marketing materials, affiliate performance data, and financial projections in direct violation of Mr. Michael’s duty of loyalty and RMCR’s obligations under the Marketing Agreement. Judge Rosenberg admitted into evidence many private emails and instant messages between Applebaum and Michael dated as early as February 7, 2007, in which Applebaum set out the deadlines and dates on which Michael was to provide RMCR with the various information he needed to launch his competing business on April 15, 2007. Other evidence received at trial included RMCR’s the unauthorized diversion of ZaaZoom’s bank deposits totaling in excess of $170,000 over approximately six weeks that was used by Applebaum to finance RMCR’s operations entry into the affiliate marketing business. 1 ZaaZoom’s principals, sat silently and in disbelief, as they reviewed one exhibit after another documenting the truth about how their good friend and trusted employee, Tim Michael, conspired with Jeffrey Applebaum and RMCR for eight weeks prior to the termination of his employment. While continuing to collect a $10,000 per month salary from ZaaZoom, Michael provided Applebaum with consulting services, affiliate information, affiliate performance data, web designs and marketing graphics, and while he carried on negotiations with Clickbooth, Azoogle and Linkshare to run the “new” RMCR offers. The courtroom was silent as Mr. Thomas identified one ZaaZoom website and offer after another that Michael and Applebaum had cloned to such perfection that Judge Rosenberg could not tell them apart at a distance greater than arm’s length. One instant message between Michael and Applebaum read onto the record and referred to by Judge Rosenberg in her final order, revealed how Applebaum and Michael laughed and joked that the one cloned website, www.runmyfreeamericancreditreport.com, was such a perfect copy of ZaaZoom’s proprietary website that ZaaZoom’s affiliates and employees would never even notice the difference. The Temporary Restraining Order entered against RMCR and Applebaum was detailed and extensive. Judge Rosenberg not only required RMCR to marshal and return all ZaaZoom’s confidential information and trade secrets within ten days, she prohibited RMCR from marketing its credit reporting, credit monitoring and identify theft insurance products through any affiliate marketer or program until October 13, 2007. ZaaZoom has invested a tremendous amount of time, resources and money in bringing RMCR and Applebaum to justice. The new evidence regarding Michael and Applebaum’s conspiracy to defraud ZaaZoom, its customers and its affiliates is being prepared for submission to the proper law enforcement authorities. ZaaZoom intends to press charges against both Mr. Applebaum and Mr. Michael with the hope that they will be charged and prosecuted to the fullest extent of the law, including an order of restitution compelling the return of all stolen funds.
1 The only bank deposits produced by RMCR showed those deposits converted between April 5 and May 22, 2007. Those deposits totaled approximately $172,000. Since May 22nd, RMCR has continued to convert ZaaZoom’s customer’s credit card deposits. ZaaZoom estimates that an additional $100,000 has been converted between May 23, 2007 and the effective date of the TRO. Additionally, ZaaZoom has expended approximately $100,000 in attorney fees and costs to obtain the TRO. As of the date of this notice, ZaaZoom believes its damages to be $372,000 or more.
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