Missing OceanGate CEO was sued for FRAUD by Florida couple who accused him of taking $210,000 to see Titanic wreck when he knew the vessel was not ready
Marc and Sharon Hagle, who made their fortune in commercial real estate, decided while visiting the South Pole to make their next adventure underwater
A Florida couple sued the CEO of Titanic tourism company OceanGate Expeditions, accusing him of misleading them about their trip to visit the wreck and refusing to refund their $210,258 when they complained.
Marc and Sharon Hagle, who made their fortune in commercial real estate, are well known for their philanthropy and their adventurous spirit. In March 2022, they were on the fourth Blue Origin passenger space flight and became the first married couple to become space tourists.
In 2016, while on a trip to the South Pole, they decided their next adventure would be underwater. In 2017 they were announced as among the first customers for OceanGate, which was founded in 2009 by Seattle-born aviator and businessman Stockton Rush, now 61.
But they never got to take their trip, and in February this year sued Rush, accusing him of selling the adventure knowing it was not on schedule, and refusing to refund their cash.
Marc Hagle, 74, and his wife Sharon, 73, went to space on Blue Origin's fourth trip, in March 2022. They intended to visit the Titanic wreck with OceanGate, and paid in 2017, but sued in February this year for fraud.
The Hagles claim that Rush, a Princeton-educated engineer and pilot with a MBA from Berkeley, traveled to their home in Winter Park, a suburb of Orlando, Florida, to convince them to buy in to his company.
The submersible he intended to use was named Cyclops 2 at the time - it has since been renamed Titan.
'During their September 27, 2017 meeting, Rush made several false statements of material fact to Plaintiffs, including, without limitation: (a) regarding the status of development and testing of Cyclops 2 as of that date, (b) that Cyclops 2 would be ready to dive on the Titanic by June of 2018,' the suit, obtained by The Daily Beast, reads.
'(c) if plaintiffs had any questions or concerns as to the integrity of Cyclops 2 and/or the timing of the expedition if it were to be delayed, they could request, and would receive, a full refund of all monies paid with no questions asked, and (d) plaintiffs' deposits were, and any future payments by plaintiffs would be, held in a dedicated client escrow account separate from his or OceanGate's funds.'
They claim the trip was postponed by a year three separate times, due to testing requirements and unspecified 'equipment failure.'
They said their money was not - as had been promised - kept in a separate account, where they could recover it.
The company allegedly told the Hagles they could join a 2021 mission to the Titanic's sunken hull, but not get a refund.
They argued that Rush violated state fraud and unfair and deceptive practices statutes.
The Hagles are seeking the return of their money, as well as attorneys fees and other reimbursement for their pains. it's unclear the status of the lawsuit
'Given the willful, wanton, and egregious nature of Rush's conduct, plaintiffs reserve the right to seek to have punitive damages awarded herein,' the complaint states.
Marc Hagle, asked about the suit, told The Daily Beast: 'My thoughts go out to the owners of Oceangate, the people that are on the submersible, both the crew and the guests.
'And we're hoping for a miracle and that everybody comes home safely.
'I think the pleadings speak for themselves.'
OceanGate, asked about the case, said: 'Our entire focus is on the wellbeing of the crew and every step possible is being taken to bring the five crew members back safely.'
It emerged on Tuesday that OceanGate's safety record had been questioned by an industry body.
A 2018 letter to Rush, obtained by the New York Times, warned that 'the current 'experimental' approach' of the company could result in problems 'from minor to catastrophic.'
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