Salvo issue resolved (?)

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karstdvr

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Some of you are no doubt aware of the legal issues between me, Halcyon and the State of Florida. This issue came up several months ago, and I promised a full explanation when the time was right. I’m fulfilling my promise.

Long story short for those who don’t want to read any further – Salvo Diving will continue to make excellent dive gear, under full warranty, and the customer service that hundreds of my customers can attest to will absolutely continue. I look forward to making great dive products for great divers for many years to come.

To fully understand the issue, I have to take you back several years. Many of you will remember when I was making lights for the technical dive community. When I was diving with the WKPP, a lot of the products I developed were on the ‘bleeding edge’… in fact, many of you will probably still have one of my ‘rat lights.’ The Rat Lights were the first delrin-bodied, super-endurable backup light, and a predecessor to Halcyon Scout’s.

I was approached by Jarrod Jablonski to work for Halcyon in August 1999. We struck a deal then – I would make lights exclusively for Halcyon, and supply all of my equipment, tools and machinery. In exchange, I would take a salary, and 1% of gross sales.

At the time, I considered Jarrod to be a friend, and a handshake deal was good enough.

I made thousands of lights for Halcyon, and continued to develop new technologies and made great dive gear. I donated my tools and equipment, and drew a salary – but never received my 1% of gross sales.

Every few months, I’d ask about the 1%. Every time, Jarrod would slough it off or change the subject. I was aware Halcyon was under significant financial stress at times, and was confident that eventually, Jarrod would make good on his word.

Finally, I demanded resolution of this matter; I was told “You’ll have to sue for it.” No doubt Jarrod knew I was very disappointed. He had chosen not to honor his word.

I was upset, and tremendously disappointed. I decided that I would recoup my loss by taking some parts and equipment. The amount of goods taken didn’t even come close to equalling 1% of gross sales, but it doesn’t matter – I realize that my conduct wasn’t the right thing to do. It shouldn’t have happened. I recognize that now, and accept full responsibility for incredibly poor judgment.

Jarrod was upset at this. Rather than pursue the matter in civil court, he decided to press criminal charges. The Sheriff arrived at Salvo and claimed some of the materials. I voluntarily offered the rest.

Fast-forward to today. Salvo is doing well, with a great staff to provide the service people expect. But in the meantime, restitution has to be made. Rather than face a long and protracted legal fight, my lawyer has brokered a settlement with the State of Florida. I plead “no contest” to charges of theft. In exchange, I agreed to a financial settlement and some time in jail. I fully recognize that what I did was wrong. I’m not making excuses; I’m not trying to justify my actions.

I recognize the error of my ways. If I had a written contract with Halcyon, I’d have stronger grounds to sue, but unfortunately, it appears I trusted Jarrod a little too much.

I feel victimized, but recognize that there are right ways and wrong ways to solve an injustice – what I did was obviously the wrong way. I am voluntarily choosing to spend up to a year in jail, confident that even in my absence; Salvo will continue to make great products.

Halcyon’s revenue from light sales has plummeted since Salvo began – divers around the world have discovered a better product at a better price. I look forward to returning, and continuing to provide good service and great gear. I strongly suspect there was a reason Jablonski insisted that I serve time, rather than simple financial restitution. In my opinion, Halcyon feels that if they shut down Barry Miller, they shut down Salvo.

There are some great people at Salvo, and we will continue to make great lights and other gear. We will continue to provide great products, reasonable prices and service after the sale that is second to none during my absence.
__________________
Salvo Diving Equipment
www.salvodiving.com
 
Halcyon's Statement on the matter:
15 March 2006

Dear Dealers,

Many of you are aware of the emotional and practical difficulties resulting from the criminal actions of Barry Miller against Halcyon Manufacturing. My note here is designed to close this chapter in Halcyon’s history; this statement should also serve to correct the significant misinformation propagated by Barry Miller.

Initially it was hard for Halcyon employees to understand the motivations of those in Internet discussion forums who seem determined to assert that Halcyon has somehow wronged Barry Miller. However, careful consideration allowed us to appreciate that the lies told by Barry are similar to those he used against Halcyon; we were fooled as are many of his supporters.

In fact, over the course of many months Barry lied to friends and fellow employees while robbing Halcyon of vital resources and poisoning vendor relationships. As Halcyon’s most senior manager, Barry enjoyed a very healthy salary and the trust of his friends and employees; yet, he abused that trust while stealing from Halcyon and simultaneously tricking our employees into building products for his company. In fact, his new company, Salvo Diving, was formed with material and labor stolen from Halcyon Manufacturing. To this very day Barry twists events in an attempt to justify malicious acts against Halcyon Manufacturing. Barry was never cheated by me or by Halcyon; his statements seeking to defame me are false. In fact, it is our opinion that these comments are libelous, adding to the damages incurred by Halcyon Manufacturing.

Finally, after 17 long months, the state’s case against Barry Miller reached its final stage this morning with the judge agreeing to and imposing a combined restitution and prison arrangement. This agreement allowed Barry to notably reduce his prison sentence while providing Halcyon with an immediate restitution payment of $82,024 and monthly restitution payments totaling an additional $60,000 once released from prison in 2007. In part, this restitution will relieve some of the significant damage done by Barry Miller. However, given the scope and continuation of offenses against Halcyon, civil proceedings against Salvo are inevitable. During the hearing Barry acknowledged guilt on two counts of felony grand theft for which he will serve 366 days in state prison; Barry also agreed to repay the theft of Halcyon’s stolen merchandise. The statement submitted by Barry is as follows:


IN THE CIRCUIT COURT OF THE EIGHTH JUDICIAL CIRCUIT, IN AND FOR ALACHUA COUNTY, FLORIDA
STATE OF FLORIDA, Plaintiff, vs. BARRY MILLER, Defendant
CASE NUMBER: 2004-CF-4827-A
DIVISION: III
AFFIDAVIT OF ADMISSION TO OFFENSE(S) CHARGED

1. I was a senior production manager for Halcyon Manufacturing.
2. As a senior production manager I was able, through various means, to take in excess of $100,000 worth of raw materials at wholesale value and use these materials to fund my new company Salvo Diving.
3. In the weeks leading up to my termination, I instructed Halcyon employees who reported directly to me, to manufacture products for my new company while senior management was away on business trips.
4. Although my employment with Halcyon was not officially terminated until October 19, 2004, I did make plans to start my own business and registered Salvo Diving with the State of Florida on October 14, 2004 and my business website salvodiving.com on September 17, 2004.
5. I deprived Halcyon of a total of $142,000 of raw material at cost value and services.
6. This was done without the permission or authorization of Halcyon.

Signed:
BARRY MILLER - Defendant
MICHAEL J. BARBARETTE – Attorney for Defendant
DAVID GLANT – Circuit Judge

For Halcyon’s part, we are pleased to be freed from the malicious actions of a manager intent on doing us harm. Moreover, Halcyon remains deeply grateful for the many people that have supported us through this difficult time. We are very excited about the future and pleased to be returning full time to our primary passion. Halcyon has an exciting range of innovations and diving projects planned for the future and we celebrate our tenth anniversary with the satisfaction that comes from managing the difficulties of the past while looking forward to the good years ahead.

Sincerely,
Jarrod Jablonski
CEO Halcyon Manufacturing www.halcyon.net
 
I have posted Halcyon's response ... and since there is an ongoing discussion on this issue in another thread ...

http://www.scubaboard.com/showthread.php?t=133714

... I'll ask that you direct any replies to that thread. This one is closed ...

... Bob (Grateful Diver)
 
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