Friday, July 26, 2013

Hewlett Packard Sues Brevard Clerk of Court For Disputed Scanning Contract Payments

TITUSVILLE, Florida - Hewlett-Packard Financial Services Company has filed a lawsuit against the Brevard County Clerk of the Circuit Court alleging that the Clerk’s Office has failed “to make its monthly installment payments” of $110,776.00 since November 2012 regarding a $6.1 million loan for digitizing court records.

Clerk Scott Ellis said in response to the lawsuit, “The Clerk’s Office did not approach Hewlett Packard for the loan.  BlueGem worked with Hewlett Packard to put the loan package together to get the Clerk’s Office to sign off.  Hewlett Packard provided the legal opinion to the allegedly independent attorney assessing the loan language of the note.  Hewlett Packard also arranged for a $200,000 performance bond for the BlueGem scanning contract.
“The Clerk has absolutely no equipment or software purchased with this note.  Even though BlueGem was paid nearly $7 million up front for the scanning contract, which halted months ago with the current Clerk/BlueGem litigation, they are having problems meeting their small payroll at their Melbourne office.”

Former Clerk Mitch Needelman originally hired BlueGem, Inc. in the summer of 2012 with an $8.5 million contract to scan court documents. Needelman changed the deal in October 2012 by borrowing $6.1 million from Hewlett-Packard and paying BlueWare in full.
The suit was filed in the United States District Court for the Middle District of Florida.

HP Lawsuit Against Clerk

29 comments:

  1. HP should have filed a lawsuit against Rose Harr and BlueWare/Gem/yada yada yada for fraud. Stay strong Scott and win this thing. Drive BlueWare out of Brevard County and get our money back.

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  2. Why is BlueWare having problems meeting payroll if they were paid $6M just last October? I can tell you why....Rose Harr spends money like a drunken sailor (sorry to those drunken sailors I offended by comparing you to Rose Harr). She wastes money on things like Louis Vuitton purses and luggage, she only flies first class, and blames her employees if they cannot live for weeks/months without paychecks. She is a horrible nasty bitter woman who should not and cannot be trusted.

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  3. It would have cost a lot less and created jobs had they just hired people themselves to digitize their records. I think the pay as the work gets done is a better way to do business.

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  4. Anon at 3:33

    That is likely what would have happened had the crook Needleman not been in power and abused it for his own personal big $$$ grab.

    His name should also be in this lawsuit!

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  5. You Peeps need to check out Rose's Facebook along with her son and daughters.... they are living large after ripping you Brevard folks off... The Chunky Tiger Wins.... all hail the Tiger

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  6. Maybe a claim against the performance bond is next so we can add Insurance Fraud and Rosie might have to get into the weeds?

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  7. Looks like the Clerk of the Court is liable according to the article above as per: "Needelman changed the deal in October 2012 by borrowing $6.1 million from Hewlett-Packard and paying BlueWare in full."

    BlueWare has their money. Why should HP be penalized for issues between Needelman, Ellis, and this scanning contract. HP only financed the deal.

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    1. You are obviously late to the game here. Do some research, get a clue, then comment. Thx.

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    2. HP is suing the entity that contracted for the financing which is Brevard County. HP most likely does not have a claim against anyone else regardless of how bad or fraudulent the original deal was.

      I don't feel sorry for HP but, unless there was fraud in the financing contract, their involvement is legitimate.

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    3. OK Joe Legal - Where does 'Unjust Enrichment' fit into your analysis?

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  8. Three other companies walked away from the deal before HP so don't feel sorry for HP. Their salesman knew what he was doing and he was part of the scam. HP got what it deserved and now they are trying to get their money back. Law suit is a good thing but they are suing the wrong person.

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  9. The issue is whether or not the Clerk of the Courts can legally borrow money. Per Scott Ellis, they are prohibited from taking out loans.

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  10. I am not sure why it surprises anyone that this has all happened since many of us have warned for almost a year that this was a scam. You all criticized Scott during the election that he had sour grapes. Rose has done nothing but swept into town, pulled a scam and now is laughing at all you fools. You let her get away with this by not demanding action sooner. Hope you didn't need the money because it is all gone.

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  11. I was one of those employees that while I worked for her we did not make payroll 3 times in 8 weeks. When that was going to happen Rose, her daughter and son would not show up for three days - claiming they were sick, had other appointments or back in Michigan. In reality, they were hiding in their condos so they would not have to face us and explain why we did not get paid. Rose is a coward who lives behind Pinterest sayings and thinks she is a visionary.

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  12. No payroll for employees but Rose, Kaitlin and Matt fly to Malaysa for a conference - first class, then fly to Australia for a vacation - first class and end the little world wind tour in Fiji at Tony Robbins motivation camp for five days. Don't forget the personal tour of Tony's house upgrade she paid for - let's think my employees get paycheck to pay bills or I get to see where Tony Robbins sleeps - my employees can pay the late fee on the bills.

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  13. The comment about Rose's Facebook was very true and very amusing but if you want a real laugh take a look at her LinkedIn Page. There she claims to be the CEO and Founder for about 10 companies and a true inspiration for mankind - sorry womankind. Do those statements have any validity if you can't make payroll or keep your promises - how are those 196 jobs at an average of $69,000 salary going there.

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  14. Speaking of no jobs or promises kept - Do you think the EDC is going to ask for their relocation money back since nothing came to fruition or better yet how about the building that the county purchased for her and the bogus training classes that no one went through. Time to give the money back.

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  15. For those of you unsure what we are talking about -

    http://www.eyeonbrevard.org/2013/03/13/the-saga-of-blueware-in-brevard-county/

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  16. What will happen is Scott Ellis will wind up having to pay the loan back, so all the clerk's employees will have to take yet ANOTHER pay cut so he can pay for it! The little man always foots the bill. Scott already took away the cost of living raises that were handed out before he took office again ( $.47 an hour) and then , in March, cut most employee's hourly wage back about $2.00 an hour! The citizens of the Brevard county will pay one way or another.

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    1. Nice try, but the Clerk is not allowed to borrow money. The money went directly to Bluegem, the Clerk never touched it. Your fearless leader signed the loan, where were we supposed to get the $1.3 million a year for the payments? Not that any of you cared as you got yours, to heck with everything else.

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    2. So, are you trying to say that Mr. Needleman is Not responsible for the loan either, because in your words "the Clerk is not allowed to borrow money"?

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    3. The Clerk's Office cannot lawfully borrow money. HP made an unlawful loan, and should have done their homework. In cases of unlawful loans the receiving party returns the money or the goods, such as if your minor child drove home a new truck with a vehicle loan. We cannot return goods or money as we have neither and received neither.

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  17. I do hope you are wrong and there is some way to get the money back from Rose Harr and Blueware. She is the one who owes the money for this sham contract.

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  18. Couldn't make this up if I tried - BlueWare and BlueGEM have received numerous industry awards for technology and business innovation including: 2012 INC 5000 - right from their web page. If a company that pulls a scam, steals money and does not make payroll makes the Top 5000 - what are the companies like that are out of the Top 5000.

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    1. These are bogus awards that they give to anyone who is willing to pay for the plague and the cost of printing the company name in the book. She wasn't spending her money when she was selected to be 4,977 in the top 5000 so you all paid for the plaque - congratulations Brevard County maybe that is the only thing you will get when they you all try to get the $6.1 million out of her.

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  19. If they are doing so well in the UK how come I keep seeing their VP of Biz Dev for the UK hanging around so much in Florida these days. 8675309 is it OK you don't have to pretend any more, it just took you a little longer for you to realize she was a fraud.

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  20. Okay the big question is; if she didn't give money to Mitch, then what did she give him? Who does what he did unless?????? Think about it...why would anybody sign a one sided deal in favor of a vendor that desperately wants a deal? Unless??? I read that they also sold them Shareware software for like 40K... Oh My... it is available for free...unless???

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  21. Blueware also had a nice juicy contract to have "professionals" come in and assess the Clerk's IT infrastructure. Blueware actually used a 20 year old kid with only a high school education to perform part of the assessment. Now that is money well spent.

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  22. AND AGAIN, I must ask - Where is FDLE?

    Please don't post back that they are still on the case - I'm sick of hearing that and will be shocked if they don't come back in a year,just like the Jim Ford fiasco, and say - oh no, we found NO wrong-doing on anyone's part.

    That is just SOP for Brevard Crooks - the good-ole-boys & now new comers alike, and the departments (FDLE, Cnty COMMISSIONERS, EDC, FL State) that we entrust to protect us tax payers from such fraudulent rip-offs.

    Pathetic, sickening, blatent fraud and theft by Needelman & Co, Harr/Blueware, EDC(Weatherman & Co)/Enterprise FL a/k/a Rick Scott... Many should be in prison by now and this entire scam a distant memory for this county.

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