The much-anticipated high-tech, promised-to-be-groundbreaking helmet from Skully went ass-up late last month (Skully Done?). Now, according to documents filed with the Superior Court of California, County of San Francisco, Skully Helmets brethren founders, Marcus and Mitchell Weller, are being sued by their former employee, Isabelle Faithhauer who was “assigned responsibility for managing the books of Skully.”

Found in the court documents are tasty bits such as Faithhauer claiming “the Wellers used the corporate entities of Skully in such a fraudulent manner as to render the corporate entity a sham.” Also spelled out in the document were these inappropriations:

  • A payout of $80,000 to a former co-founder of Skully was made and not properly recorded on the company books, and to conceal it from the accountants of Skully, by recording the expense as a reimbursement of expenses during a trip to China.
  • During January 2015, Marcus Weller took a non-business related trip to Southern California, where he rented a Lamborghini for the weekend and expensed it to Skully.
  • Four motorcycles were purchased by Skully, two of which were for the Wellers’ personal use. Insurance for the motorcycles was also charged to Skully.
  • In the fall, 2015, Marcus Weller and Mitchell Weller booked a non-refundable trip to Bermuda. Marcus Weller was not pleased with Bermuda, so he booked on 24 hours notice a flight to Hawaii, first class, at Skully’s expense.

The list goes on – the document is 23 pages. You can read the entire file here. Towards the end of the complaint it reads, “Defendants, and each of them, did the acts herein maliciously, fraudulently and oppressively, with the wrongful intent to injure Plaintiff, from an improper and evil motive amounting to malice, and in conscious disregard of Plaintiff’s rights. The acts complained of were known to, authorized and ratified by Defendants. Plaintiff is therefore entitled to recover punitive damages from Defendants, and each of them, in an amount according to proof at the time of trial.”

Skully raised millions of dollars through crowdfunding donations. If the Weller’s are found guilty, is there any chance a class action suit could return money to the duped investors? Any moto-lawyers out there looking for some pro bono work?

  • JMDonald

    Are you sure we aren’t talking about the Clintons here?

    • http://motorcycle.com/ Tom Roderick

      Come on, JM, let’s keep any political discourse limited to this posting: http://www.motorcycle.com/features/mo-survey.html

      • JMDonald

        Sorry TR. As I was reading this I forgot what post I was reading.

    • John B.

      If this were the Clintons the plaintiff would have been eaten by an alligator during her trip to Disney or committed suicide by shooting herself twice in the back. The Clintons do organized crime right!!! No loose ends!

      • E-Nonymouse A

        True, I recall the a lawyer of the clinton family who was more than likely privy to incriminating details of the scandals they were knee deep in while Bill was in office somehow ended up committing suicide by hanging himself but somewhere along the way managed to shoot himself too. Nothing fishy there. 😉

  • spiff

    I need one of their prototypes to go with my Excelsior Henderson.

    • HeDidn’tWeDid

      Ha! Guess you want to play baseball in a cornfield too?

  • John B.

    Machiavelli was right; it’s better to be feared than to be loved.

    Since when do bookkeepers tell executives what is, and what is not, a legitimate business expense? How would the plaintiff know whether Weller conducted business during his trip to SoCal, or how many motorcycles one needs to test motorcycle helmets? The Wellers should have fired the plaintiff much sooner. Hire slow, fire fast… always.

    The complaint tells a grand story, but let’s see what the plaintiff can prove. Very likely, the Wellers will easily defeat many of the plaintiff’s claims. Truth is a defense to the defamation case, and courts rarely pierce the corporate veil for failing to observe corporate formalities. Moreover, the law gives executives broad discretion with respect to routine business decisions. The Wellers’ attorneys have lots to work with here.

    I smell a shakedown…. not that I oppose shakedowns.

    • HeDidn’tWeDid

      Part of a bookkeeper’s responsibility is to make sure the money is accurately accounted for. They are the internal CPAs of many smaller corporations. It is very possible that the Wellers asked/coerced her to falsify expenses.

    • Rusty Shackleford

      It’s rare that somebody takes the side of a CEO who took millions from small investors via crowdfunding and screwed everybody, including 50 employees. He did fire fast though, although you’ve really got to call them layoffs when everybody goes.

      • John B.

        Pleadings are lawyer talk. I’ll pile on AFTER I see the proof. You must have information not available to the rest of us.

    • E-Nonymouse A

      I was called out for claiming this was purely the result of a disgruntled employee, not saying they weren’t doing crooked !@#$ with corporate funds but there were many scandals that would never have been discovered if various underlings weren’t feeling like they got their fair share (Enron and so on) of the spoils. If it’s legit this will make one hell of a story. Forensic accountants would be useful here.

  • Starmag

    Is that TWO hands I see in the cookie jar? No I’m not talking about HillBilly (this time).

  • Ian Parkes

    There’s clearly something dodgy going on here. Why, someone has even made off with the definite articles before every reference to the plaintiff and the defendents in the complaint! Good grief, if you can’t trust lawyers, who can you trust?

  • Sentinel

    I have to admit, I’ve been stupid and naive enough to pre-purchase video
    games that turned out to really suck, and also those “early access”
    scam games that just string you along forever and never actually deliver, but
    I’ve since learned my lesson. But ouch! Dropping that kind of cash for
    such vaporware must really be painful! 😮