NEWPORT NEWS — The legal troubles keep piling up for Jeffrey A. Martinovich, the CEO of the shuttered Newport News-based financial services firm MICG Investment Management.
Martinovich, who moved to Norfolk and launched a medical-field consulting company called Visus LLC, has been sued in U.S. District Court in the Eastern District of North Carolina for trademark infringement, unfair and deceptive trade practices and unfair competition.
The civil suit, filed on Aug. 25 by Raleigh, N.C.-based Allscripts Healthcare LLC, alleges Visus, under the control and direction of Martinovich, used Allscripts' trademarked company name and product names in connection with the promotion and sale of electronic health-record software without permission.
By using the Allscripts name and its products on its website, Visus and Martinovich created "a false impression of affiliation, connection, or association" with Allscripts, "as well as a false impression that Allscripts sponsors or approves of" Visus' goods, services and commercial activities, the suit alleges.
Allscripts, a subsidiary of publicly held Allscripts Healtcare Solutions Inc., designs and sells software to healthcare providers like hospitals, clinics and private practices. It is known principally for its electronic medical records software and related services.
In the suit, the company insists Martinovich and Visus never have had the company's authorization to advertise or sell its products.
Neither Martinovich nor two of his attorneys responded on Friday to requests for comment.
Allscripts is seeking to permanently ban Visus and Martinovich from ever using its names or trademarks in commerce; require them to surrender all promotional materials bearing the Allscripts names; turn over all profits, plus interest, derived as a result of the alleged trademark infringement; and pay unspecified damages that could be tripled, along with court costs and attorneys' fees.
According to the suit, Martinovich and Visus began using the Allscripts name in June or July. Allscripts later demanded that Visus cease using its trademarks, but Martinovich and Visus ignored its requests and have continued to use them without authorization, the suit says.
Allscripts' name and products still were listed on Visus' website, visus-us.com, on Friday afternoon.
Visus was first registered with Virginia on April 21, according to state records. It lists its registered agent as Todd M. Lynn, an attorney from the Newport News law firm Patten, Wornon, Hatten & Diamonstein who has represented various other Martinovich entities.
Visus has been operating its website since at least June 10. It says its corporate headquarters are in downtown Norfolk.
According to its website, Visus specializes in providing electronic medical records, medical billing services, physician consulting, prescription dispensing, hardware, business consulting and telecommunications services to physicians and hospitals.
On its website, Visus also lists affiliations with Reno, Nev.-based Doctor Dispense LLC and Kalamazoo, Mich.-based NuWave Technology Partners LLC.
Mark Woodin, the controller at NuWave, said the company was not affiliated with Visus.
Vern Waldorf, director of sales for Doctor Dispense, said his firm has a relationship with Next Chapter LLC, which acts as a reseller of Doctor Dispense's products. Next Chapter also is controlled by Martinovich, according to his testimony at a meeting of creditors in his bankruptcy case.
Martinovich in February accepted a lifetime ban from the securities industry by the Financial Industry Regulatory Authority, or Finra, while neither denying or admitting to the independent regulator's charges. Those charges, levied in 2010, included civil fraud.
Days later, he filed for Chapter 7 bankruptcy protection, listing liabilities of $14.2 million. That case is still pending.
Martinovich also is facing at least three civil lawsuits in connection with MICG, including one filed by Shirley Hatten of Newport News.
Hatten on Thursday entered a motion for default judgment in the $1.45 million case in Newport News Circuit Court. In the filing, Hatten alleged that Martinovich's attorneys have not been cooperative in providing requested documents and testimony.
During the course of discovery, MICG has relied "on exhaustive and baseless objections" and has not produced "a single document or any electronically-stored information" to Hatten, her filing alleges.
Benjamin J. Biard, MICG and Martinovich's attorney in the civil case, did not respond to a request for comment.Copyright © 2015, Los Angeles Times