Eastern Point Trust Sues Flatirons Bank and Co-Conspirators Over Conspiracy and QSF Trade Theft

by Structured Settlement Watchdog

Following its recent settlement with the Town of Lovells Wyoming, a legal complaint was filed April 2, 2025 by Eastern Point Trust Company against multiple defendants for misappropriation of trade secrets, conspiracy and other violations. ​ Here is a summary:

Parties Involved

• Plaintiff: Eastern Point Trust Company, a corporation from the U.S. Virgin Islands. ​
• Defendants include Flatirons Bank, of Boulder CO, FBHC Software LLC of Boulder CO, Timothy Krochuk of Boston MA, Trellis Software Inc., of Boston MA and unidentified John Doe individuals. ​

Jurisdiction and Venue ​

• The case is filed in Fauquier County Circuit Court, Virginia, due to the amount exceeding $25,000 and binding agreements. ​
• Defendants are subject to Virginia jurisdiction due to business transactions and tortious injuries occurring in the state. ​

Allegations of Fact ​

• The complaint alleges a conspiracy called "Justice Escrow" aimed at injuring Eastern Point through the theft of proprietary information. ​
• The complaint  alleges that "this action arises from Flatirons, FBHC, Krochuk, and Trellis, together with Nicholas Coccimiglio and his agent(s) (collectively referred to as "Coccimiglio"); and unidentified John Does; and unnamed others, associating or combining in a joint venture or conspiracy (hereinafter referred to as "Justice Escrow") to willfully and maliciously injure and obtain an unfair business advantage over Eastern Point through the clandestine and surreptitious misappropriation of the proprietary information and intellectual property, including but not limited to trade secrets, business methods and processes, enabling Eastern Point's innovative QSF 360™ platform (the "EPTC Method") and brazen cloning, redeployment, and repackaging of the EPTC Method as a Justice Escrow product"  [Complaint at 11]
• Eastern Point developed the QSF 360™ platform, which revolutionized the Qualified Settlement Fund industry, allowing rapid qualified settlement fund establishment. ​
• Coccimiglio was intimately familiar with Eastern Point and its revolutionaiy QSF 360™ platform, having previously engaged with Eastern Point on hundreds of occasions to facilitate the establishment of QSFs. Through the QSF 360 limited-use license, which Coccimiglio acknowledged by his aforementioned use and execution of agreements, he recognized the enormous financial potential of developing a product capable of competing with the QSF 360 platform.  [ Complaint at 22]
• Coccimiglio lacked the tax or legal knowledge, experience, or ability to create such a competing product. Because Coccimiglio did not have the experience nor financial bona fides necessary to establish a trust services company, Coccimiglio enlisted Flatirons, as part of the joint venture, to serve as the storefront for Justice Escrow. [ Complaint at 23 and 25]
• Nor did Coccimiglio or Flatirons have the technical expertise necessary to build the electronic platform needed to facilitate the various technical processes and user interactions required of an automated QSF service. So, Coccimiglio and Flatirons enlisted Krochuck into the joint venture to spearhead that aspect of Justice Escrow. { Complaint]

Misappropriation of Trade Secrets ​

• According to the Complaint, Justice Escrow allegedly accessed Eastern Point's QSF 360™ platform using unauthorized credentials to steal proprietary methods and processes. E​astern Point estimates that Justice Escrow engaged in nearly 7,000 interactions with the QSF 360™ platform, reaffirming their knowledge and acceptance of the Terms of Use, Privacy Policy, Trust Ware terms, the underlying Account Agreements, and documents each time. 
• The defendants are accused of creating a competing platform that closely resembles Eastern Point's offerings, with up to 100% similarity in some documents. ​

Legal Claims

The complaint against Flatirons Bank et al. includes multiple counts:

1. Breach of Non-Compete and Non-Disclosure Provision
2. Breach of Trade Secrets and Confiudential Information Provision
3. Breach of Limited Use License Provision
4. Breach of Industrial Espionage Provision
5. Breach of Unjust Enrichment Provision
6. Breach of Use of Copyrights and Trademarks Provision
7. Violation of Virginia Trade Secrets Act
8. Tortious Interference with Contract
9. Violations of the Virginia Computer Crimes Act- Va. Code§ 18.2-152.12
10. Common Law Conspiracy
11. Conspiracy to Injure a Business - Va. Code § 18.2-500

Prayer for Relief ​

• Eastern Point seeks compensatory damages of $3.5 million, punitive damages, and injunctive relief against further breaches. ​
• Eastern Point also requests various forms of financial compensation, including $150 million for loss of market position and $100 million for market erosion. ​
• The plaintiff also seeks attorney's fees, pre-judgment interest, and a permanent injunction against the defendants.

Notables not in the Complaint

• FlatIrons Bank Financial Reports as of December 31, 2024, updated February 13, 2025, show regulatory capital of $32 million plus.
• The purpose of regulatory capital is to ensure the financial stability of the banking system by absorbing potential losses and protecting depositors. 
• The damages sought by Eastern Point Trust Company in the suit are 10 times Flatiron's Bank's regulatory capital
• Nicholas J. Coccimiglio, also known as Nick Coccimiglio. is a settlement planner associated with Justice for Life in Alpine Wyoming.

Read the Complaint in Eastern Point Trust Company v Flatirons Bank et al. Download Justice Escrow Filed Complaint 4-2-2025