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Mc, Curley Page 2 broker), and that broker would normally divide the commission with Mc, Curley. In August of 2008, after Lockhart's then-girlfriend Jody Sheppard had simply end up being a licensed insurance agent, Lockhart began referring and introducing potential group health, term life, and long-lasting care insurance customers to Sheppard, who at one point later on worked for the Stevens Group, a rival of Mc, Curley's firm.

A few of the clients who Lockhart referred or presented to Sheppard were existing Mc, Curley property and casualty customers who were being serviced by authorized recommendation markets. Also in  More In-Depth  of 2008, Lockhart created a Web domain for his side company, Lockhart Associates. He communicated with Sheppard with an email address with the Lockhart Associates domain.

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In this regard, in 2007 Lockhart requested and was reappointed as an agent for Illinois Mutual Life, with whom he had a preexisting relationship. Lockhart admitted that did not disclose any of these side transactions to Mc, Curley or obtain Mc, Curley's approval to take part in them on the side.

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Lockhart did admit that in February of 2009 he obtained Mc, Curley customers to buy long-term care Lockhart v. Mc, Curley Page 3 insurance from Mass, Mutual through Sheppard. After Mc, Curley learned of Lockhart's side dealings, he fired Lockhart on April 23, 2009. Afterwards, Lockhart's computer at Mc, Curley's firm was examined, and it was figured out that Lockhart had actually copied secret information onto a thumb drive about 10 days prior to he was fired.

Lockhart also confessed that, after he was ended, he triggered or tried to trigger Mc, Curley clients who had actually been his customers to move their service away from Mc, Curley. Sanctions Mc, Curley took legal action against Lockhart 5 weeks after firing him and acquired a short-term limiting order. After a hearing, the high court went into a temporary injunction, which was interested this court (and affirmed on March 10, 2010).

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Mc, Curley, No. 10-09-00240-CV, 2010 WL 966029 (Tex. App. Waco Mar. 10, 2010, no pet.) (mem. op.). Meanwhile, Mc, Curley served discovery (requests for admission and production and interrogatories) on Lockhart. Mc, Curley filed three motions to oblige discovery reactions in February of 2010. The motions also sought sanctions in the type of attorney's fees and extra sanctions as are simply.