Jan 15, 2025
Co-founder of Compass Coffee, Harrison Suarez, files lawsuit against former business partner and friend, Michael Haft, his father Robert Haft, and Compass Coffee LLC. Photo by Molly Parks.News hit earlier this week that Compass Coffee cofounder Harrison Suarez filed a lawsuit Monday against his former business partner, friend, and fellow Marine Michael Haft. In the complaint filed in federal court, Suarez names Michael Haft; his father, Robert Haft; and Compass Coffee and alleges five counts, including RICO violations, fraud, and breach of contract by various combinations of the parties.  Suarez and Michael Haft, who met while studying at Washington University in St. Louis and bonded through serving in the Marine Corps together, originally opened their first Compass Coffee location in Shaw in 2014. As the Compass Coffee website reads, the two discovered a common interest “after years of drinking terrible coffee on deployment.” Michael Haft (left) and Harrison Suarez (right) pose while deployed in Nawa, Afghanistan. Photo courtesy of Michael Haft. Throughout Suarez’s complaint, his attorneys from the DC office of Ali & Lockwood allege the Hafts misrepresented that Suarez equally shared ownership of Compass Coffee with Michael Haft since the first operating agreement, when in retrospect he believes he never did. Suarez also recounts his termination from Compass Coffee in summer 2021. In an emailed statement to Washingtonian, Michael Haft wrote of Suarez’s allegations that “all of his claims are utterly untrue.” He continued: As the pandemic disrupted our lives a few years ago, Harrison began experiencing more severe behavioral health challenges. Unfortunately, this led to a series of accusations and threats directed at me and my family — the same family who welcomed him into our home, supported him financially, and treated him as one of our own. His accusations have only intensified over time, and while Harrison has not been involved with the business for several years, I have done my best to navigate these challenges in private. I have made many offers to settle these matters amicably, and I will continue to pursue a meaningful path of settlement in the hopes of finding resolution. Suarez’s legal complaint, available in its entirety via public court records, includes several striking details and claims. Here are some of what it alleges that stood out to us:  An ended relationship In the complaint, Suarez describes how, to him, his believed “equal ownership” of Compass with Michael affected his personal life, including when he broke up with his soon-to-be fiancée. The complaint reads: Michael regularly said to Harrison that they were equal partners. In just one example, on July 7, 2016, Michael confronted Harrison the morning after Harrison’s girlfriend’s birthday about Harrison and his girlfriend’s plans to get engaged. Michael said to Harrison something to the effect of: ‘I spoke with my dad. If you and [your girlfriend] want to get married, I don’t think we’re going to be able to keep being equal partners.’ Demonstrating how deeply important his investment in Compass Coffee and his continued relationship with the Hafts was to him, Harrison ended the relationship. A perilous partnership In 2016, Suarez claims he agreed to he could be terminated “at any time,” based on what he says was his belief that Michael Haft would agree to the same terms: One provision in that agreement said that Compass could terminate Harrison at any time, value the company at any amount—which Harrison could not appeal—buy him out for 20% of that amount, and the remaining 80% would be in an unsecured note. Robert justified the provision by pointing out that Michael was also subject to the same terms, but—as Harrison later learned—this was false. Michael was never actually exposed to the same risk of termination, because he was already the supermajority owner of Compass. A bitcoin investment and federal funds When it comes to what the complaint calls the “Covid Relief Scheme,” Suarez claims that the Hafts misused the $10.5 million Compass received in Covid-19 pandemic-era relief funds from the US government, including using Restaurant Revitalization Fund money for an investment in bitcoin: In November 2021, without Harrison’s knowledge, Compass used RRF grant funds to make an approximately $2.1 million investment in a bitcoin play through [the Virginia firm] MicroStrategy. What Compass told a reporter about Covid relief Suarez claims the company lied about receiving RFF Funds to avoid tipping off its landlords that it had cash. In July 2021, Michael told a reporter for the Washington Business Journal that Compass had not yet received its RRF funds. This was false; Compass had received the money in May 2021. On information and belief, Michael made this misrepresentation to conceal the fact that Compass had received a cash infusion, which could have caused landlords to come knocking for past-due rent.The post 4 Surprising Moments in the Compass Coffee Lawsuit first appeared on Washingtonian.
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