FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
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`RECEIVED NYSCEF: 11/28/2022
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`Index No. 153323/2019
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`AFFIDAVIT IN SUPPORT 
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`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
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`MICHAEL CAVUOTI, individually and
`derivatively on behalf of
`INTELLIPAYMENT LLC,
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`Plaintiffs,
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`v
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`INTELLIGENT PAYMENT PROCESSING INC.,
`THE CARD COLLABORATIVE
`INTERNATIONAL. LLC, MICHAEL C. TRIMARCO
`and PETER J. VOGEL,
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`Defendants,
`and
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`INTELLIPAYMENT LLC,
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`Nominal Defendant.
`-----------------------------------------------------X 
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`I am Randy Hines, Director of Business Development of PayCardPros, Inc. and I make this affidavit in a
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`support of the instant application and attest to the following under penalty of perjury:
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`I respectfully submit to this Most Honorable Court, in good faith, the herein Affidavit in Support of a
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`Motion to Dismiss, specific performance of that certain Release and Covenant Not to Sue prohibiting
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`suit and/or the injunctive relief contemplated in the agreement not to sue thereby enforcing such a
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`prohibition.
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`I am fully familiar with the facts and circumstances of this action based upon personal knowledge as
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`2.
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`well as having reviewed documents and materials related therein,
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`3. While I am not a party to the instant action, I make this Affidavit in Support of Defendant’s Motion to
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`Dismiss.
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`4.​ ​Mr. Len Pitzalis and I incorporated PayCard Pros, Inc., (PCPI) in January 2015. 
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`

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`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
`
`RECEIVED NYSCEF: 11/28/2022
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`5. ​PCPI contracted with Shawn Carden of The Card Collaborative International LLC (TCCI) in                         
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`February 2015 to become their exclusive agent. 
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`6. ​Shawn Carden explained he was working on an investment for TCCI and upon receipt would                             
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`pay PCPI for its work done to date. 
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`7.​ ​In April 2015, Peter Vogel made an investment into PCPI and became a full partner. 
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`8. ​In May 2015, PCPI introduced Shawn Carden to Chris Cicolini as a possible investor. In June,                               
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`TCCI received $250,000 from Chris Cicolini’s investment partner John Vipulis/ J.V.                     
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`Holdings. 
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`9.
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`​In August 2015, Peter Vogel introduced Mike Trimarco (a college friend and business                         
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`associate) to me. Mike Trimarco was in litigation with a company that he had founded in                               
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`2006, called Intellipayment. At       
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`this time, Mike Trimarco was not           
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`involved with the     
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`management or operations of Intellipayment (IP). This was exclusively under the purview of                         
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`Mickey Cavuoti. Intellipayment was facing state and federal money transmission regulatory                     
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`issues. 
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`10. ​Specifically, as it related to IP, a new rule had come about that companies like Intellipayment                               
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`were in possession of consumer funds; therefore, they should be MSB’s or Money Service                           
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`Businesses. To become an MSB in every state they were working in would have been both                               
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`cost and time ineffective for Intellipayment. There was industry press about this. 
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`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
`
`RECEIVED NYSCEF: 11/28/2022
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`​Mike Trimarco had conceived of the idea to use the platform of prepaid card accounts to                               
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`solve the problems with federal banking regulation framework via TCCI’s prepaid program                       
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`platform.  
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`​Mike Trimarco asked if he could present such a solution to Intellipayment principals and                           
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`management (Mickey Cavuoti and Guy Manasse) on behalf of PCPI/TCCI in the hopes of                           
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`getting a meeting set with the NYS Department of Financial Services to get their acceptance                             
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`of the proposed TCCI pre-paid program. 
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`13. ​As a first step, October 2015, I attended the Money 20/20 Convention in Las Vegas on behalf                                 
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`of TCCI. Shawn Carden was unable to travel by air due to health reasons. 
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`14. ​Mike Trimarco scheduled meetings between myself and Peter Vogel with IP representatives                       
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`Mickey Cavuoti and Guy Manasse. Mike Trimarco and I scheduled a meeting with Raquel                           
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`Spathos who had a platform (Advanced Concept Solutions- ACI) and business prospects in                         
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`need of a bank. 
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`15. ​Additional meetings were also scheduled by me, representing TCCI with Tab Bank and Chris                           
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`Cicolini (but also on behalf of TCCI). The Intellipayment MSB issue was introduced to Tab                             
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`Bank, who gave preliminary ok in concept. 
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`16. ​Following the Money 2020 Show, with these preliminary “oks” Mike Trimarco arranged , in                           
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`November, a meeting with the NYS DFS between TCCI, Mickey Cavuoti and                       
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`Intellipayment. Mickey Cavuoti, on behalf of Intellipayment, executed an agreement with                     
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`PCPI to present the Intellipayment program plans including the TCCI prepaid platform. I                         
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`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
`
`RECEIVED NYSCEF: 11/28/2022
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`presented at the meeting with Carden on the phone. The result of the meeting is the ruling                                 
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`that under prospective TCCI/PCPI system, Intellipayment would no longer be under their                       
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`jurisdiction and the investigation against Intellipayment was stopped, pending the actual                     
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`movement of the customers onto the prepaid card platform.   
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`17. ​Intellipayment could not move forward immediately as it was unable to provide financials to                           
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`prove it had not spent the customer money. 
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`18. ​By December 2015 Mickey Cavuoti/Intellipayment had not provided financial information to                     
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`TCCI and had not committed to TCCI for prepaid services.  
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`19. ​I told Mickey Cavuoti on multiple occasions that TCCI would be unable to provide services                             
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`if Mickey Cavuoti could not prove the balances, and good new money to cover reserves. I                               
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`know this as an agent of TCCI, much of this was told to Cavuoti through me. 
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`​Mickey Cavuoti, appeared very desperate at this point to try to keep IP alive and to not                                 
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`default on payments owed on customer accounts by any means. 
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`​Intellipayment 
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`lead secured debt     
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`investors, Guy Manasse and Mike Agrillo, became             
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`increasingly agitated that the company was not meeting its financial obligations, reporting                       
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`and regulatory requirements. 
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`​With this, Guy Manasse later contacted Shawn Carden to set up a freshly capitalized new                             
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`Texas company First Equity Payment LLC that could take on the Intellipayment accounts.  
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`

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`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
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`RECEIVED NYSCEF: 11/28/2022
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`23. ​Raquel Spathos of Advanced Concept Innovations was also considering the same course of                         
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`action also through PCPI/TCCI.  
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`24.
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`​Mike Trimarco continued to pursue, using the TCCI platform, to assist Intellipayment and                         
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`Mickey Cavuoti -- who would face massive civil and possibly criminal liability if IP                           
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`collapsed. This was a major concern of Cavuoti as he told me. 
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`25.
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`​In February 2016, PCPI assisted Peter Vogel and Mike Trimarco in pursuing a Tri-party                           
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`agreement with TCCI and TAB on behalf of IPPI -- a NY Corporation set up to potentially                                 
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`fund shortfalls and process money of Intellipayment customers. 
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`26. ​Mickey Cavuoti needed new money and investment into the business to save both it and him.                               
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`Carden was very unsure of Mickey Cavuoti and Intellipayment so he asked Peter Vogel,                           
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`Mike Trimarco, and Mickey Cavuoti individually to sign an additional Covenant not to Sue                           
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`and Release with Shawn Carden and TCCI, its agents, heirs and successors.                       
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`In summary,   
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`Cavuoti agreed to release and never to sue anyone that helped him protect the customers and                               
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`save Cavuoti himself from Civil and possible criminal liability. 
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`27.
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`​Mickey Cavuoti was informed by me, that in consideration of this agreement he needed to                             
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`give up all claims against anyone related to the TCCIs transaction and its investing partners                             
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`(namely FEP-IPPI, TCCI, Trimarco and Vogel as agents), he was saved certain financial ruin                           
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`and worse. 
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`28. ​To expedite the process and to assure that all the parties were aware of each other’s signing,                                 
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`and so that Shawn could sign last after confirming this, this was consolidated into one                             
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`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
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`RECEIVED NYSCEF: 11/28/2022
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`agreement. 
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`I processed, collected and witnessed each of the signatures sequentially, via                     
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`email, from the original document, witnessing each execution by the signatories. More                       
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`specifically, I called each of the signers upon emailing them to their personal emails,                           
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`reviewed what they were agreeing to and why they were agreeing to it and then had each                                 
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`sign. With this I sent all the signatures to Shawn Carden for TCCI’s signature and then                               
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`returned the documents immediately by email to all the party’s personal email.  
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`29.
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`​Mike Trimarco and Peter Vogel, who would take substantial risk in financial backing a                           
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`30.
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`transaction, even agreed personally not to sue Carden as they understood the risk and effort                             
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`Carden was taking. 
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`​Because of the financial situation and suspected malfeasance (which became a reality once                         
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`we saw the financials of Intellipayment in April), the Intellipayment could not clear TCCI’s                           
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`due diligence process as long as Mickey Cavuoti was employed by Intellipayment. 
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`let Intellipayment operate under its         
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`​More specifically, Shawn Carden-TCCI wouldn’t         
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`TCCI/TAB umbrella with Mickey Cavuoti involved at all. 
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`32.
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`​While all   
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`this negotiation was happening,       
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`in March 2016, Vanco/Wells Fargo —           
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`Intellipayment bank processor threatened to shut down their services to Intellipayment                     
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`because of insufficiencies resulting from their dealings with Mickey Cavuoti over the past                         
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`few years. 
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`33. ​Mickey Cavuoti had been hiding from its PCPI/TCCI, its prospective bank (TAB), Carden,                         
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`Vogel, Trimarco and me about the imminent shutdown coming from Vanco/Wells Fargo. 
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`

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`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
`
`RECEIVED NYSCEF: 11/28/2022
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`​This announcement was the first that Mike Trimarco, Peter Vogel, Shawn Carden, Guy                         
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`Manasse and Mike Agrillo had heard as Mickey Cavuoti had not disclosed numerous notices                           
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`of default from Vanco over the last year. 
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`34.
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`​Vanco’s shutting off of the system would crush all of Intellipayment’s 40k customer                         
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`accounts. 
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`​Multiple parties, including myself, Shawn Carden, Mike Trimarco spoke with, and even                       
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`begged Vanco for extensions until Intellipayment could put the new program in place — with                             
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`no success. 
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`​Intellipayment with Trimarcos help, sued Vanco for injunctive relief in Minnesota. The                       
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`Judge came back within hours with a ruling effectively stopping IPs operations immediately. 
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`​Mike Trimarco called me off vacation and asked that I reroute to Salt Lake City to go to                                   
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`TAB bank and push a temporary solution through.             
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`​Shortly thereafter, Carden, Pitzalis and I             
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`37.
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`asked for full access to all           
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`the systems. This was facilitated by the (now defunct)                 
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`Intellipayment employees. It received all the raw data on customer accounts as well as access                             
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`to the former bank and processors systems. We quickly found little if any competent systems                             
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`and no data integrity in what we saw in the Intellipayment systems. It was very apparent to                                 
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`us that   
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`the systems were set up so that Cavuoti could access customer funds without                         
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`detections from others in the company. Consequently, individual account balances need to                       
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`be calculated manually from raw data by TCCI - Mainly Carden himself, in order to find the                                 
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`individual short accounts with short falls. While PCPI/TCCI was working with TAB bank’s                         
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`risk department it was determined that Intellipayment had a substantial shortage of funds in                           
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`

`

`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
`
`RECEIVED NYSCEF: 11/28/2022
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`its customer account, and that that shortage would have to be met in reserves before TAB                               
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`could continue. The shortage was approximately $600k.  
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`transaction,   
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`39. Apparently, according to the corporate records ​I was supplied after inquiring regarding
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`Cavuoti plaintiff claim that customer refunds were effectively ignored by Trimarco in the                         
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`​it took almost 3 years to rebuild and reconstruct multiple years of commingled
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`money under one person, Cavuoti, control, and almost literally “unscramble the eggs” to                         
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`determine how much money was owed back and refundable to customers. There is adequate                           
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`money in Tab Bank’s reserve to cover any necessary refunds which have and are being                             
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`addressed.   
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`40.
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`​Additionally, TCCI demanded $100k from the First Equity Payment-IPPI (Tx LLC) to                       
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`sponsor it if to assume and process the IP accounts via the Manasse new entity that would                                 
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`work with TAB bank. TCCI also demanded 200K from FEP-IPPI for a “prepaid fees”                           
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`deposit against future transaction fees. 
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`41. ​I facilitated Guy Manasse’ company First Equity Payment-IPPI which had the first Liens on                           
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`IP, assume the Agrillo Group notes and save the IP customers (and Cavuoti) via the FEP-                               
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`IPPI deal with TAB I had completed set up earlier with Manasse.  
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`42.
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`​Peter Vogel provided the investment funds to FEP-IPPI which provided the funds to                         
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`TCCI/TAB for deposits and to cover the monies needed to fund the shortfall. 
`
`

`

`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`NYSCEF DOC. NO. 170
`
`INDEX NO. 153323/2019
`
`RECEIVED NYSCEF: 11/28/2022
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`43.
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`​ALL banks and service providers made it crystal clear that Mickey Cavuoti must resign                           
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`immediately, he could have no ongoing position in the business and could only function in a                               
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`way that facilitated the transition, if no other alternatives were available.  
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`44.​ ​Mickey Cavuoti resigned without hesitation and all but disappeared. 
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`45. ​With this fairly complex fintech banking integrations took place across interstate platforms                       
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`among FEP-IPPI Texas, TCCI Florida and TAB Bank Utah, serving customers and clients                         
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`across the country. The banking platforms have run stability for almost 4 years and millions                             
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`of transactions, on true banking rails with FDIC regulation and insurance for consumers                         
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`safety.   
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`46.
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`​PCPI / TCCI set up the integrations and new business processes working long hours to get                               
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`things running smoothly. 
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`47. ​By July, operations were running smoothly, and Carden/TCCI began performing these                     
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`functions. 
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`48. 
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`I am proud to say that all the through today each business group PCPI brought to TCCI                                 
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`(Trimarco, Spathos and Manasse) are currently doing business on the innovative TCCI                       
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`platforms and are among its top prospects and growth opportunities   
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`48. ​Under penalties as provided by law the undersigned certifies that the statements set forth in                             
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`this instrument are true and correct, except as to matters therein stated to be on information                               
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`

`

`; FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45
`P
`FILED: NEW YORK COUNTY CLERK 11/28/2022 02:45 PM
`
`NYSCEF DOC. NO.
`Salie0)
`NYSCEF DOC. NO. 170
`
`INDEX NO.
`153323/2O1L¢
`INDEX NO. 153323/2019
`
`
`
`RECEIVED NYSCEF:
`11/28/2022
`RECEIVED NYSCEF: 11/28/2022
`
`
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`and belief and as to such matters the undersigned certifies as aforesaid that he verily believes
`a
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`the sameto betrue.
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`Dated: [~30-Z/ me
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`January 24th, 2020
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`Sworn to before methis _*)
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`|
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`day of
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`January 2020
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`RS€ OFoe
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`yl i}SYPl, JACQUELINE M. WOODSON
`VMilty,aS°"he
`fosLE Notary Public, State of Texas
`nae Comm Expires 05-06-2023
`Notary 1D 132003053
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`s
`Sk:
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`