offerhubb-logoFor his part in promising to deliver Zeek Rewards investors to several reload schemes and then failing to deliver, Robert Craddock found himself defending two lawsuits.

Early 2014 saw BidsThatGive and OfferHub sue Craddock for cybersquatting, trademark infringement, wrongful use of computers, misappropriation of trade secrets, wrongful interference with economic relations, breach of contract, unjust enrichment, defamation and piercing the corporate veil.

robert-craddockCraddock (right) responded to the lawsuit and things progressed through the courts until Craddock’s attorneys withdrew themselves from the case in July.

The court approved the withdrawal of counsel in mid August, giving Craddock fourteen days to obtain new counsel.

By the end of September, well past the fourteen day deadline, Craddock had still failed to acquire new counsel. Thus the court ordered him to retain counsel and show cause as to why sanctions should not be imposed.

Craddock was given till October 6th to make this filing and retain counsel, which also came and went.

Ten days later Magistrate Judge Foley issued an order recommending Craddock’s answer to the original complaint be stricken, and that default judgment be entered against him.

A few days ago, District Court Judge Boulware accepted the recommendation, largely in part due to the fact that Craddock had failed to file an objection to the recommendation (he had until October 29th to do so).

The Court has reviewed the record in this case and concurs with the Magistrate Judge’s reccommendation that Answer of Defendant Fun Club USA, Inc., should be stricken and its default entered based on Defendant’s failure to comply with this Court’s order to obtain counsel.

Default judgement was ordered against Craddock his company Fun Club USA on January 29th.

In their complaint, OfferHub had asked the court to award them

  • unspecified damages as a result of trademark infringement, wrongful use of OfferHub’s computers, misappropriation of trade secrets and interfering with OfferHub’s economic relationship with their affiliates
  • $100,000 in statutory damages
  • $120,000 for breach of contract
  • $120,000 for unjust enrichment and
  • OfferHub’s legal costs

How much will be awarded will now be determined by the Clerk of the Court.

Why Craddock failed to find legal counsel following the court’s order that he do so remains a mystery. He hasn’t been active in the case since his attorneys walked out on him last July.

Evidently plugging your ears with your fingers and living in denial isn’t the best of legal strategies.


Footnote: Our thanks to Don@ASDUpdates for providing a copy of District Court Judge Boulware’s January 29th order.