A legal storm is brewing as allegations of financial misconduct and deceit surface in a high-stakes lawsuit. On May 7, 2025, Richard G. Galgano and Carefree Capital Inc. filed a verified complaint in the United States District Court for the Northern District of Illinois against Steve Mueller, Hypersive LLC, and Hypersive Inc. The plaintiffs accuse Mueller of orchestrating a fraudulent scheme to misappropriate investor funds for personal indulgences and gambling habits.
The case revolves around accusations that Steve Mueller, CEO of Hypersive Inc., misused funds from investors under the guise of business development while allegedly indulging in personal extravagances and gambling activities. According to the complaint, Mueller's actions have effectively resulted in an infant Ponzi scheme. The plaintiffs claim that they were induced to invest millions based on false representations about incoming revenues and potential clients that never materialized. Galgano alleges that despite having invested over $2 million by mid-2024, he was continuously pressured by Mueller for more funds under the pretense of covering operational costs like payroll.
Galgano's suspicions were further fueled when he discovered discrepancies between proposed financials and actual income statements provided by Mueller. The lawsuit details how Galgano's son uncovered missing or unaccounted-for disbursements amounting to hundreds of thousands of dollars during a review of company finances while Galgano was abroad. This revelation led to a confrontation where Mueller admitted to gambling but failed to provide requested bank statements or clarify financial inconsistencies.
The plaintiffs are seeking extensive relief from the court, including compensatory and treble damages under RICO (Racketeer Influenced and Corrupt Organizations Act) and fraud counts, appointment of a receiver for Hypersive, imposition of a constructive trust over misappropriated assets, an equitable accounting, escrow of all intellectual property and digital infrastructure, attorneys' fees, costs, and any other relief deemed just by the court.
Representing the plaintiffs is attorney Arik D. Hetue from Marshall Brown LLP based in Chicago. The case is presided over by judges yet unnamed with Case ID 1:25-cv-05061.