Nov. 28, 2022 – The trust invested in the company based on Nagle’s representation that it was “cashflow positive,” according to the complaint. When the trust brought its total investment to $1.5 million, it agreed that the balance of the trust’s loan, after company expenses, would be converted into an equity investment that would result in a valuation of $12.5 million in company stock, the complaint alleges.

Nagle then spent about two years refusing to convert the company or begin Series A fundraising, the trust claims in the complaint. During that time, Nagle became increasingly erratic, relocated to Puerto Rico and lost $100,000 of company money in a cryptocurrency scam, according to the complaint. He ultimately returned to Baltimore but continued his erratic behavior, including being verbally abusive toward the company’s employees, the trust wrote in the complaint.


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