A local startup founder is being sued by his business partner for allegedly misspending thousands of company dollars and withholding payment.
Brandon Bowen, the former chief operating officer and VP of operations and sales, has filed two lawsuits in the Thirteenth Judicial Circuit in Hillsborough County against ECover Global founder Raymond "Ben" Sever.
ECover Global is a Tampa-based company that was in the Tampa Bay Wave's 2019 fall cohort. The company provides an instant messaging system from clinics to patients that ease questions and concerns during both pre- and post-operation. In January, Sever presented during the Tampa Bay Wave "Pitch Night" stating it had raised $700,000 on a $35 million valuation. No investments have been documented with the U.S. Securities and Exchange Commission.
"This is a very rare and unfortunate occurrence and we hope it is properly resolved between the parties involved," a Tampa Bay Wave spokesman said in a statement to the Tampa Bay Business Journal. The Wave reiterated it does not work with ECover Global.
First lawsuit
Bowen filed a first lawsuit against both Sever and the company on June 19. An amended complaint was filed on Sept. 3, further including AtRock Consulting. The complaint alleges Sever withheld payment of funds after Bowen was fired on May 10. Bowen was seeking $250,000 for alleged failure to pay compensation, unjust enrichment, repayment of loans and defamation.
According to the first complaint, Sever owns 80 percent of the company while Bowen owned 10 percent. It is unclear who owns the remaining 10 percent. The lawsuit states Bowen, who served as the COO, did not have a contract with ECover Global, but "under ordinary circumstances, a reasonable employer, such as ECover, would reasonably expect to pay for the beneficial services provided by Bowen." Bowen also allegedly loaned Sever $6,000 to use at AtRock Consulting, of which Sever was the primary shareholder.
On May 9, the day before Bowen was fired, the former roommates allegedly had a fight over Sever's spending from the ECover bank account. According to the lawsuit, Bowen alleged Sever spent funds to "sustain his lifestyle" including food, alcohol and drugs, car and gas expenses, his apartment, travel expenses, gifts for family members and female escorts. The next day, Bowen was allegedly fired from the company. Sever sent an email to ECover employees, vendors and advisers, accusing Bowen of "self-sabotage," the complaint alleges.
"The result of the defamatory statement was to make Bowen less marketable in his line of work and to cause him mental anguish," the lawsuit states. "In fact, Bowen has been unsuccessful in his efforts to obtain other employment in his line of work."
The lawsuit also includes AtRock Consulting, of which Bowen allegedly owned 10 percent of the company. The lawsuit states Sever did not give Bowen his share of the profit from AtRock, or disclose to him the company's books reflecting revenue, expenses or banking records.
Sever's legal team filed a motion to dismiss the complaint the same day it was filed.
"We have filed a motion to dismiss the complaint. We are not otherwise able to comment on ongoing litigation and we have faith that the truth will come out in court," Sarah Glaser, attorney at Shumaker Law representing Sever, said in an email to the Business Journal.
Second lawsuit
On Sept. 21, Bowen filed a second lawsuit against Sever and ECover Global for $400,000. Bowen again states Sever used company funds, stating Sever treated it as his "personal piggy bank," according to the complaint. Bowen alleges Sever used the ECover Global funds to:
- Pay more than $12,000 in rent
- Pay at least eight different escorts
- At least partially fund trips to Las Vegas, San Francisco, Stamford, Connecticut
- Help fund personal Uber, Lyft and Postmates accounts
Glaser, Sever's lawyer, said the filing is a derivative action and responses are not yet due while adding no further comment.
Bowen's representation declined to comment.
