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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 just end up being a licensed insurance coverage agent, Lockhart started referring and introducing potential group health, term life, and long-term care insurance coverage clients to Sheppard, who at one point later on worked for the Stevens Group, a rival of Mc, Curley's company.

A few of the customers who Lockhart referred or introduced to Sheppard were existing Mc, Curley home and casualty customers who were being serviced by licensed referral markets. Also in August of 2008, Lockhart produced a Web domain name for his side company, Lockhart Associates. He interacted with Sheppard with an email address with the Lockhart Associates domain.

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In this respect, in 2007 Lockhart applied for and was reappointed as an agent for Illinois Mutual Life, with whom he had a preexisting relationship. Lockhart admitted that did not reveal any of these side transactions to Mc, Curley or obtain Mc, Curley's authorization to participate in them on the side.

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Lockhart did confess that in February of 2009 he got Mc, Curley customers to purchase long-lasting care Lockhart v. Mc, Curley Page 3 insurance from Mass, Mutual through Sheppard. After Mc, Curley discovered of Lockhart's side transactions, he fired Lockhart on April 23, 2009. Thereafter, Lockhart's computer system at Mc, Curley's firm was analyzed, and it was determined 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 terminated, he caused or attempted to trigger Mc, Curley customers who had been his clients to move their business far from Mc, Curley. Sanctions Mc, Curley took legal action against Lockhart 5 weeks after shooting him and got a temporary restraining order. After a hearing, the high court went into a temporary injunction, which was attracted 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.). On the other hand, Mc, Curley served discovery (ask for admission and production and interrogatories) on Lockhart. Mc, Curley filed three motions to force discovery responses in February of 2010. The motions also looked for sanctions in the form of lawyer's charges and extra sanctions as are just.