Landon Northcutt – The Truth and The Scam

Landon Northcutt: Trickery Scam and Fraud

Mr Landon Northcutt

Mr Mac Rust

Diversified Sales, LLC

166 South Belknap

Stephenville, Texas 76401-4202

Breach of Contract and Duties to Star Hospital Solutions, L.L.C. (“Star”)

 

Landon Northcutt has recently been trying to trick local hospitals into signing contracts with his latest company. He has deceptively and cleverly formed a company and called it “Star Management Solutions LLC” when it should have been named “Star Hospital Solution”. In addition he has named it “star” in an attempt to seize business from some of his partners.

The real Star has said that if Landon Northcutt does not immediately desist and cease all of his competitive activities, they will force an injunction against them in a court of law and pursue with aggression all available options to hold Landon Northcutt financially and legally responsible for violations of his contracts and fiduciary duties.

Mr Northcutt has a signed noncompetition agreement with the real Star that prohibits expressly, competition through entities such as the bogus Star. Landon Northcutt has given the real Star Company the option of injunctive relief in a court of law. Additionally, just as important are fiduciary duties of which Mr Northcutt committed to as both a manager and member. These include a duty of care and loyalty amongst others.  Landon Northcutt has knowingly took part in the breach of these duties.

Yet his actions have fallen very short of the obligatory duty of loyalty and good faith. To the contrary, Landon Northcutt and his partner Mac Rust got greedy as soon as several hospitals were about to sign the contracts.

Landon Northcutt and Mr Rust decided they would copy the model of Star. Therefore taking all the profits for them both by cutting out the original partners In the Star Company. After just one month into the signed deal and in breach of their covenants and duties, the duo called upon the Star hospitals as representatives of “Star” and presented to them falsified documents hoping that they would be able to switch the hospitals over to their fake Star Company.

In fact, it has since been found that on the 7th July 2017 – while Landon Northcutt and his partner were both still managers and members of the legitimate Star Company and a whole month before they resigned suddenly – they had signed a new contract with the ABC General Hospital on behalf of the “fake” Star Company. This was leveraging the investments and efforts of their partners for their benefit only. Luckily the general manager of the ABC Hospital noticed the fraud was taking place. However, Landon Northcutt and Rust had caused a lot of confusion within the market place as people were unsure what Star was the real company and which company was not which inevitably caused damage to the legitimate Star.

In addition, Landon Northcutt and Mac Rust went on to set up a 2nd company named “On Campus Laboratory Management LLC” in order to get close with hospitals in rural Texas which had no knowledge yet of the Star brand. This included a new set of hospitals was the ABC Medical Centre. The “Real Star” Company had spent many months developing and securing this prospect, however, Landon Northcutt and Mr Rust stole the deal so the Campus Laboratory is now in a position to supply blood testing that takes place at the hospital. The legitimate Star Company is demanding the discouragement of all the profits that Northcutt and Rust have illegally been obtaining in this transaction and all others.

On the 3rd of August 2017 at 15.00 hrs, a management/membership meeting took place of the Real Star Company in Dallas, Texas. Both Landon Northcutt and his partner in crime never attended. Instead, what happened was that only ten minutes into this meeting, Northcutt and Rust claimed to have themselves along with Diversifies Sales LLC resign from the roles that they held. Regardless of this, their covenants and duties remain. Notably, and to increase the deception further, Mr Rust started going by the same of “Jay” instead of using his usual “Mac” to make it look like he was not an associate of the Real Star Company.

The misconduct that is apparent of Landon Northcutt and Mr Rust both before and soon after they resigned from Star does not only show the actual and substantial damages that occurred but also generates injunctive relief from the trade secret act in Texas – for the stealing of the Real Start company’s clients and other important business information.

Shane Bledsoe amongst others are ready to go to court and testify at both the damages and injunctive phases of relief.

This is actually not the first time that these conmen have been caught out. Mac Rust, in May last year, was sued by the Securities and Exchange Commission for misappropriating significant amounts of funds (approx. $13.80 million) that was entrusted to him and Christopher Brenner and that these two parties had commandeered an undisclosed amount for trading in securities derivatives.

Mr Rust’s licence is now “inactive” however, there is no record of disciplinary action listed.

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