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Franco. The pleading alleges misappropriation of substantial company assets and funds, efforts to destroy or alter damaging evidence, manufacture favorable records, and coerce employees to give false testimony. It seeks immediate termination of Franco from board and officer positions, injunctive relief preserving the status quo by restraining embezzlement and interference, and compensatory damages for misconduct.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/verified-derivative-complaint-injunctive-relief-declaratory-relief-and-damages/242603/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/verified-derivative-complaint-injunctive-relief-declaratory-relief-and-damages/242603.png","ImageObject",442,249,{"name":88,"@type":89},"Bintang","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-07","2026-09-12",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",10,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"Who filed the verified derivative complaint and on whose behalf?","Question",{"text":109,"@type":110},"Macquarie Marine Services, LLC filed the complaint derivatively on behalf of HMS Holdings 1 LLC US.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"What misconduct does the complaint allege against Harley V. 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FRANCO,  \nDefendant, and  \nHMS HOLDINGS 1 LLC US, a Delaware limited liability company,  \n))  \n))  \n))  \n))  \n))  \n))  \n))  \n))  \n)  \n Nominal Defendant.  )  \nC.A. No.    \nVERIFIED DERIVATIVE COMPLAINT FOR INJUNCTIVE RELIEF, DECLARATORY RELIEF AND DAMAGES  \nPlaintiff, Macquarie Marine Services, LLC (“MMS”) , derivatively on behalf of HMS Holdings 1 LLC US (“HMS1”), by and through its undersigned attorneys, brings this Verified Complaint against Defendant, Harley V. Franco (“Franco”) , alleging as follows:  \nNATURE OF THE PROCEEDING  \n1. This action arises out of (a) Franco’s misappropriation of substantial assets and funds of HMS1 and its wholly-owned subsidiary, entities of which he is Chairman, President and Chief Executive Officer; and (b) Franco’s efforts to destroy  \ndamaging evidence, manufacture favorable evidence, and coerce employees to provide false testimony helpful to him. Based on that conduct, this action seeks a declaration that there is good cause to immediately terminate Franco from all of his board and officer positions; a status quo order enjoining Franco from, inter alia, continuing his acts of embezzlement, interfering in the orderly operations of the Company’s business, and destroying or falsifying Company records or importuning Company employees to sign or make false statements regarding his conduct at the Company; and awarding the Company compensatory damages it has suffered by virtue of Franco’s misconduct.  \nTHE PARTIES  \n2. Plaintiff, MMS, is a limited liability company organized under the laws of the State of Delaware with its principal place of business located at 125 West 55th Street, 22nd Floor, New York, NY 10019. MMS owns, directly and indirectly, a minority equity interest in HMS1 .  \n3. Nominal Defendant, HMS Holdings 1 LLC US, is a limited liability company organized under the laws of the State of Delaware with its principal place of business located at 125 West 55th Street, New York, NY 10019.  \n4. Defendant, Harley V. Franco, is a citizen and resident of the State of Washington. Franco owns, directly and indirectly, a majority equity interest in  \nHMS1 . He is also HMS1’s President and Chief Executive Officer, and the Chairman of its Board of Managers.  \nJURISDICTION AND VENUE  \n5. This Court has jurisdiction over this derivative action pursuant to 6 Del.  \nC. §§ 18-111 and 18-1001.  \n6. This Court has jurisdiction over Franco as an officer and manager of a Delaware limited liability company pursuant to 6 Del. C. § 18-109.  \n7. This Court has jurisdiction over HMS1 as a Delaware limited liability company pursuant to 6 Del. C. § 18-105(a) .  \nFACTUAL ALLEGATIONS  \n8. HMS1 is a holding company that owns 100% of Harley Marine Services, Inc. (“Harley Marine” and, together with HMS1, the “Company”), a corporation organized under the laws of the State of Washington. Harley Marine operates as a marine transportation company providing, inter alia, tug and barge services, and petroleum transportation and storage services.  \n9. Franco, the founder of Harley Marine, serves as its Chief Executive Officer, President and Chairman.  \n10. In late May 2018, MMS was alerted to the possibility that Franco may have been diverting and misappropriating Company assets and funds for his and his family’s personal benefit. As a result, MMS engaged an independent auditing firm  \nand contacted the Company to request access to its books and records to conduct a forensic accounting in order to ascertain whether Franco had been embezzling money and assets from the Company.  \n11. As detailed below, that forensic accounting has established that Franco has, in fact, been engaged in a lengthy and wide-ranging course of misconduct designed to divert and misappropriate significant Comp","cbCaidYHWGY0su8o","https://ap.wps.com/l/cbCaidYHWGY0su8o","pdf",397566,32,"English","# NATURE OF THE PROCEEDING\n## THE PARTIES\n## JURISDICTION AND VENUE\n## FACTUAL ALLEGATIONS\n## MMS’s Forensic Accounting Revealed That Franco Had Embezzled And Misappropriated Company Assets And Funds","[{\"question\":\"Who filed the verified derivative complaint and on whose behalf?\",\"answer\":\"Macquarie Marine Services, LLC filed the complaint derivatively on behalf of HMS Holdings 1 LLC US.\"},{\"question\":\"What misconduct does the complaint allege against Harley V. Franco?\",\"answer\":\"The complaint alleges misappropriation of company assets and funds, destruction or alteration of damaging evidence, manufacture of favorable evidence, and coercion of employees to provide false testimony.\"},{\"question\":\"What remedies does the complaint seek from the court?\",\"answer\":\"The complaint seeks a declaration supporting immediate termination from board and officer roles, a status quo order enjoining ongoing wrongful acts, and compensatory damages for misconduct.\"}]","Verified Derivative Complaint - Injunctive Relief, Declaratory Relief and Damages | PDF",1789192673]