Hoefer Files Suit Against GCT, Claiming Fraud
In a high-profile March 7 product launch, Speedway Ind.-based GCT unveiled plans for its 35-foot Carbon travel trailer that the company claimed would revolutionize the marketplace with its ultralightweight carbon fiber construction and space-age design. The planned starting price for the Carbon exceeded $100,000.
The suit filed in Indiana’s Marion County Superior Court named seven individuals along with Red Wing Capital LLC and C.H. Douglas & Gray LLC as defendants who Hoeffer said misrepresented themselves as financial experts.
Hoefer, who served as CEO for GCT before recently leaving the company, claimed that the defendants “made numerous false representations, material omissions and false promises to the future in order to gain Hoefer’s trust and to defraud and steal GCT for personal enrichment.” According to court documents, the defendants solicited business plans, confidential data, trade secrets, market data, ideas, innovations, know-how and other intellectual property from Hoefer.
The suit claims that defendants were essentially leveraging the Hoefer family’s reputation in the RV industry to seek a $100 million land development project by marketing GCT with a Chinese joint venture.
Hoefer said that in March he was told that the defendants did not intend for GCT to succeed, stating “they would still get the land, worth millions.” Also at play is the defendants’ alleged intent to defraud Weichai, a publicly traded company in China, of $50 million.