Missing Sub Boss Was Previously Sued for Fraud in Florida

Just months before OceanGate Expeditions’ submersible went silent during an excursion to the remains of the Titanic, a Florida couple accused the company’s founder of taking them on a very different kind of ride.

Marc and Sharon Hagle’s $210,258 investment in visiting the legendary shipwreck aboard the now-missing Titan—then called Cyclops 2—got a writeup from Reuters when it was announced in 2017. But the pair never embarked on the voyage and filed a lawsuit alleging OceanGate CEO Stockton Rush strung them along knowing full well his vessel was not ready to take the plunge by the promised date in 2018, and subsequently ignored their requests for a refund.

Reuters is now reporting that Rush is among the five aboard the vanished craft.

The crux of the Hagles’ suit is a September 2017 meeting, in which the Winter Park, Florida pair allege that Rush journeyed to their home with the intent of warming up their increasingly cold feet on the venture.

“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 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.”

In fact, the suit asserts, the date of their trip got postponed first one, then two, then three years, as the rechristened submersible needed to undergo further testing and suffered unspecified “equipment failure.” Further, the Hagles allege their money was in fact not kept in a separate account where they could recover it should OceanGate miss its deadlines. In the end, the company allegedly told the pair they could join a 2021 mission to the Titanic’s sunken hull, but not get a refund.

The Hagles argued that Rush violated state fraud and unfair and deceptive practices statutes, and demanded their money back, as well as attorneys fees and other reimbursement for their pains.

“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.

Reached by phone, Marc Hagle declined to remark on the suit, or whether the events of the past few days have at all changed his view of his experience with OceanGate.

“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,” he said. “I think the pleadings speak for themselves.”

Public records show no action on the suit since the Hagles brought it in February. OceanGate did not address the Hagles’ claims or any aspect of the litigation in a statement sent to The Daily Beast.

“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,” a spokesperson wrote to The Daily Beast.

This story has been updated to include comment from OceanGate.