Rome LLP Secures $16.2 Million Jury Verdict for Specialty Payments in ISO Residual Dispute

Attorneys Eugene Rome and Christopher Schwegmann secured a major win for sales agent Specialty Payments in a complex payments-industry dispute involving residual commissions and alleged interference with ISO-agent agreements.

In a resounding legal victory, Rome LLP obtained a $16.2 million jury verdict against Paynetworx LLC and merchant defendants ERI Brands LLC, Rocket Systems Inc., Elisabeth R. Imhoff, and Jared J. Davis (collectively, the “ERI Defendants”) for their scheme to deprive Specialty Payments of its earned residuals.

The jury found that Paynetworx CEO Trent Voigt and the ERI Defendants orchestrated and participated in an unlawful plan to divert Specialty’s commissions on more than $297 million in processing volume. The award included $7.385 million against the ERI Defendants for tortious interference, and $723,684.43 against Paynetworx for civil theft, plus attorneys’ fees. Jurors also imposed punitive damages of $7 million against Davis and $600,000 each against ERI and Rocket Systems, citing intentional and malicious conduct.

At trial, Specialty proved that after successfully referring ERI Brands to Paynetworx and generating over $25 million in processing fees, the defendants met secretly to exclude Specialty from its residual stream. Evidence showed they submitted new merchant applications using the same brands, websites, and bank accounts under a new name — “Rocket Systems” — while continuing to process with Paynetworx behind Specialty’s back.

Industry expert Ken Musante testified that Paynetworx—not Specialty—was contractually responsible for merchant reporting, chargeback management, and pricing controls—findings the jury embraced in rejecting Paynetworx’s defenses. Trial evidence also showed Paynetworx continued processing ERI’s transactions for over a year after a “fake termination notice” designed to make it appear that Paynetworx’s relationship with ERI had ended.

“This verdict sends a powerful message,” said Eugene Rome, lead trial counsel for Specialty Payments and managing partner at Rome LLP. “Processors and merchants can’t cut agents out of their contracts and expect to get away with it. The jury understood exactly what happened — and stood up for every ISO and sales partner in this industry.”

The case, Specialty Payments, Inc. v. Paynetworx LLC et al., Cause No. CV-23-0557, was tried before Judge Larry Phillips in the 59th Judicial District Court of Grayson County, Texas. The verdict followed a week-long jury trial featuring extensive testimony on Visa/Mastercard rules, merchant underwriting, and ISO–processor relationships.

The ERI Defendants were represented by Greenberg Traurig, LLP, led by partner Janis Clements, and by The Global Legal Law Firm, with James C. Huber appearing as pro hac vice counsel. Paynetworx LLC and Trent Voigt were represented by Joe D. Brown of Sherman, Texas.

About Rome LLP

Based in Los Angeles, Rome LLP has prevailed in every trial it has taken to verdict over the past decade, representing both plaintiffs and defendants in complex commercial and technology disputes. The firm focuses on Payments and Fintech, Cryptocurrency and Blockchain, Domain Name and Intellectual Property, and Complex Business Litigation, as well as high-value personal injury and FTC enforcement defense matters.

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“This verdict sends a powerful message,” said Eugene Rome, lead trial counsel for Specialty Payments and managing partner at Rome LLP.