feb 17, 2023 - a. James forwards Rob and Chris an email that was very concerning.

Description:

This was an email that Mark send to his “team” that had a picture attached of an “Org Chart” for his life with many people in his life including Rob and Chris that had arrows pointing to himself as if we served him. Mark then drew those in his “team” above him as mentors/guides. The body of the email was concerning as well and James expressed that these were not words/actions of a leader or someone that should be running a business and that we needed to act now.
b. Chris took action to protect everyone’s assets that were involved and changed the password to the Let’s Create bank account logins where all of the Melt Mob LLC was now being sent to. Chris also removed Mark’s access to his Fo’Cheezy work email. This was to mitigate any risk of money being moved around and communications with outside parties of someone that did not appear to be fit to handle company business until we could assess the situation and have a discussion with Mark or at least his family member to speak on his behalf if they were able to.
c. Rob and Chris setup a meeting over Google Meet with Mark and his wife after Chris spoke with Mel and James individually about the best path forward. James expressed to Chris that he had spoken with Mark and Mel and they said that it would probably be best for Mark to be completely separated from everything. Chris spoke to Mel who expressed the same sentiment.
d. Rob and Chris spoke and at the time felt that at the time Mark seemed to have good intentions over the last few weeks. Despite some of the red flags as far as his behavior, we weren’t really sure what his baseline was considering the circumstances. That being said, Chris and Rob decided to jump on the call after Mark and Mel were ready and we agreed with Mark’s original statement that he could go back to tending to his property and spending time with his grandson and separate himself from the business and due to the circumstances we were still going to offer Mark 15% royalties for life but he would have no operational say and he would not be on the operating agreement.
e. Mark said he did not want the royalty and that he just wanted to separate himself from anything involving the business. He said that he wanted us to work on an offer to remove him from the business and release him from the liability of the Sales and Payroll Tax debt in which he would pay his 15% portion of the debt. He also wanted us to clear the Let’s Create LLC of anything that had been temporarily setup in the past couple weeks so that he could use that LLC for other future project of his. He also wanted us to increase the rent of the beach location to fair market value, because he felt it was too low for the area and he had plans to sell that location and he wouldn’t be able to sell it with where the rent was at currently. Finally, he wanted us to reconcile the different between what he put into the company recently and get him paid back.
f. Rob and Chris agreed to putting those items together in an offer and planned to just revert everything back to Melt Mob LLC where the only OA stood that was signed by all parties. Rob and Chris felt at this point that this was the best way to go and own the mistakes of Craig as a company and hold true to what was in the current and only OA.
g. In time Rob and Chris found that Mark’s suggestion of closing most of the Melt Mob LLC bank accounts and moving money to other accounts created under Let’s Create LLC, creating new merchant accounts and payroll, truly just created a logistical and paperwork nightmare that really didn’t need to happen in the first place. In fact, through all of this, one of the company’s lenders froze the one 5/3 Melt Mob banks accounts left that had money still going into it which froze approx. $32K of operating capital that was really needed at the time. Rob and Chris really started to question Mark’s original intentions to begin with after looking at everything that took place.
h. Later that day, Mark found out that he did not have access to the newly formed Let’s Create LLC bank accounts anymore and that his Fo’Cheezy email was suspended. These bank accounts are where most of Melt Mob LLC’s money was going into. Mark deactivated Rob’s debit cards that gave him access to day-to-day operating money that was being generated by Melt Mob LLC. Mark changed the password for the online access to the bank accounts.
i. Mark and Mel expressed that they would be handling the finances until we could come to the table with an offer. They said that employees would need to use their own money to purchase day to day things and then they would be reimbursed only if they provide valid receipts/invoices.
j. In response to this, Chris forwarded a multitude of emails of things that needed to be handled/paid from various vendors etc in which he now had no way to handle without access to the company funds as he was handling all finances while Mark was in the hospital. Not one of approx. 20-25 emails that were sent expressing the need for a response was responded to by Mark or Mel in regards to them being handled like they said they would do.
k. Again, they expressed it was too much to handle and Mel said that she blocked several people’s numbers in Mark’s phone, to include Rob and Chris, without him knowing. Mark continued to text confusing message late and night and very early in the morning in which Chris attempted to respond in a de-escalating way, but the texts never went through as indicated by turning green when both Mark and Chris have iPhones. It appeared that Mark didn’t know that Chris was blocked on his phone. This probably fueled his rage as he thought we were ignoring him.
l. Rob was still able to see the bank accounts on his phone and he noticed after a day or two that all of the money had been pulled out of the accounts that Melt Mob LLC had recently made in the amount of approx. $80K - $90K over the past few weeks.

Added to timeline:

Date: