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BEVERLY, Mass., April 27, 2023 /PRNewswire/ -- Following a three-week trial, a Massachusetts jury found that an employee and a competitor of Sourcing Unlimited, Inc.'s ("Jumpsource") engaged in a lengthy scheme to defraud the Beverly-based global manufacturer of commercial sewing machines and replacement parts.
The March 2, 2023 verdict determined that Jumpsource employee Joselito Polanco and Jumpsource competitor M.J. Pierce unlawfully conspired to steal Jumpsource's manufacturing equipment, products and customers. The Massachusetts Superior Court entered Judgments against Jose Polanco and M.J. Pierce in excess of $1.7 million on counts of conspiracy, conversion, breach of the covenant of good faith and fair dealing and unfair and deceptive trade practices.
"Our story is a cautionary tale for American manufacturers who do business globally," said Jumpsource CEO and founder, Mike Porter. "We are grateful for this jury's verdict. It provides critical accountability and protection, not just to our organization but also to our entire industry."
According to Porter, this case was a lesson in the dangers of investing and manufacturing in China, where the reach of U.S. law remains limited. It is also a lesson, says Porter, that U.S. citizens who facilitate the foreign theft of U.S. technology and property, may face severe consequences in U.S. Courts. Jumpsource brought this action against former employee Jose Polanco and competitor M.J. Pierce alleging that salesperson Polanco conspired with Jumpsource's China based manufacturing manager, Anson Fang, and U.S. based distributor M.J. Pierce to steal Jumpsource's Shanghai based manufacturing equipment and replacement parts inventory.
The conspirators, while Fang and Polanco were employed by Jumpsource, used this stolen Jumpsource manufacturing equipment and parts to secretly supply Jumpsource customers and set up an unlawful business that was directly competitive to Jumpsource.
Jumpsource's motion for a further award of attorneys' fees pursuant to the unfair and deceptive practices claims remains pending and a companion case involving related conspiracy claims against former Jumpsource customers, Eletroteks, LLC and John E. Fox, Inc. is set for trial in the U.S. Federal District Court of Massachusetts in October 2023.
ABOUT JUMPSOURCE
Jumpsource is a manufacturer and supplier of both industrial sewing machines and "original quality" replacement parts. Now headquartered in Delray Beach, Florida, Jumpsource was founded in 2000 by Michael Porter Sr., who serves as chief executive officer. Prior to launching the company, Porter owned and operated bedding machinery company Porter International, which was founded in 1948 by his father, Robert Porter and sold to Carthage, Missouri based Leggett & Platt Inc. in 1997. Porter International, which produces industrial sewing machines, is now part of L&P's Global Systems Group.
Contact:
Erika Brown
781-718-8164
SOURCE Jumpsource