Judge Locke Bars Document Review

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Judge Locke Advances Sea Tow Conference by Two Days Sea Tow Barred BCC Captainmurphy1492@gmail.com, Dwayne1930@gmail.com, Ethan.maass@gmail.com, Hornswaggled@proton.me, Info | C-Tow <info@c-tow.ca>, Mike Johnston <meclidj@aol.com>, abbysjaeger@gmail.com, Ryan Hurley <ryanmhurley@yahoo.com>, beckboats@gmail.com, dfarkas99@gmail.com, docrusspt@gmail.com, duke26@mac.com, flagshiptowing@gmail.com, helmig11@gmail.com, maverickfishingcharters@gmail.com, lift1500 <lift1500@yahoo.com>, FENAC@seatow.com Judge Locke Advances Sea Tow Conference by Two Days Sea Tow Barred from Reviewing Documents Electronic ORDER: The conference set for Friday, February 27, 2026 is advanced to Wednesday, February 25, 2026 at 1:30 p.m. Sea Tow is still ordered not to review responsive documents until the Court can resolve the issue presented by the Jaeger Defendants' motion. Sea Tow's response must be filed by Tuesday, February 24, 2026 at 12:00 p.m.

When a federal judge accelerates a hearing by two days, bars one party from reviewing evidence, and gives them one business day to respond—the Court is signaling something. That something is trouble. And it's headed straight for Sea Tow.

They Sold You a Franchise

Then Lied About It in Federal Court

B R E A K I N G — F E B R U A R Y 2 1 , 2 0 2 6

— Magistrate Judge Steven I. Locke, 2/21/2026 (KDW) H O R N S W A G G L E D • S P E C I A L I N V E S T I G A T I O N ☠ How Sea Tow Services International—founded in 1983 by the late Captain Joseph Frohnhoefer II and now run by his children and their attorney—built a franchise empire they refuse to admit exists C A S E N O . 2 : 2 0 - C V - 0 2 8 7 7 - W F K - S I L • E . D . N . Y . • F E B R U A R Y 2 2 , 2 0 2 6 Sea Tow Services International was founded in Southold, New York in 1983 by the late Captain Joseph Frohnhoefer II. Today, his son Joseph Frohnhoefer III serves as CEO, his daughter Kristen Frohnhoefer serves as President, and attorney Mitchell Stein of Stein Law, P.C. directs the legal strategy. Together, they operate over 100 locations nationwide—locations they publicly call "franchises" but have spent five years in federal court insisting are not. I What New York State Considers a Franchise The New York Franchise Sales Act (NYFSA), codified at NY General Business Law §§ 680–695, defines a "franchise" using a three-part test under § 681. If all three elements are present, the arrangement is a franchise—regardless of what the parties choose to call it. The law does not care about labels. It cares about substance:

T H E L E G A L R E Q U I R E M E N T

W H A T I T M E A N S

E L E M E N T 1 — F R A N C H I S E F E E

The franchisee pays a fee—directly or indirectly—for the right to enter into or maintain the business relationship.

This includes royalties, required purchases, revenue shares, equipment charges, advertising contributions, or any payment that is a condition of doing business under the franchisor's system.

E L E M E N T 2 — M A R K E T I N G P L A N O R S Y S T E M

The franchisor provides a marketing plan or system that the franchisee is required or advised to follow.

This includes operating manuals, branding requirements, pricing guidelines, dispatch systems, or any prescribed system of doing business.

E L E M E N T 3 — T R A D E M A R K L I C E N S E

The franchisee is granted the right to use the franchisor's trademark, trade name, logo, or other commercial symbol.

The franchisee operates under the franchisor's brand identity and is identified to the public as part of the franchisor's system.

When all three elements are present, New York law requires the franchisor to register with the Attorney General's office before offering or selling franchises (§ 683). Operating an unregistered franchise is a criminal misdemeanor. Every agreement executed without registration is void and unenforceable. II How Sea Tow Meets Every Single Element Sea Tow didn't accidentally stumble into one or two elements. They hit all three—and a federal judge said so, in writing, in 2022.

✓ E L E M E N T 1 : F R A N C H I S E F E E — C O N F I R M E D

Sea Tow's "Management Agreement" requires operators to pay approximately a percentage of gross revenues to Sea Tow International. Not profits—gross revenues. This payment is a mandatory condition of operating under the Sea Tow name. The Management Agreement's payment structure "fits comfortably within" the statutory definition of a franchise fee.

Judge William F. Kuntz Ii — Document 216, Page 28 • September 30, 2022

✓ E L E M E N T 2 : M A R K E T I N G P L A N / S Y S T E M — C O N F I R M E D

Sea Tow provides franchisees with a prescribed marketing plan and system of operation, including operating manuals, branding requirements, service standards, dispatch systems, and a national marketing program.

Sea Tow (1) provided TBM-Recovery with a marketing plan or system prescribed by Sea Tow and (2) granted TBM-Recovery the rights to use Sea Tow's trademarks as part of its operations.

Judge William F. Kuntz Ii — Document 216, Page 28 • September 30, 2022

✓ E L E M E N T 3 : T R A D E M A R K L I C E N S E — C O N F I R M E D

Sea Tow operators use the Sea Tow name, logo, distinctive yellow branding, and associated trademarks as their primary business identity. Ironically, several of those trademarks have since been cancelled (TTAB) or expunged (Canadian Federal Court) due to Sea Tow's own misconduct.

Three for three. Under New York law, Sea Tow is a franchise. Full stop. And yet they have never registered as a franchisor with the State of New York—not in 1983 when they started, not in any year since, not ever. A February 27, 2023 FOIL response from the New York Attorney General's office confirmed this definitively. III The Courts Have Spoken—Repeatedly Sea Tow's franchise status isn't a theory or an allegation. Multiple federal courts have addressed it directly.

E X H I B I T A — 2 0 1 6 : S E A T O W ' S O W N I N S U R A N C E C A S E

In Sea Tow Services International, Inc. v. St. Paul Fire & Marine Insurance Co., 211 F. Supp. 3d 528 (E.D.N.Y. 2016), Judge Pamela K. Chen described Sea Tow in the opening paragraph of her opinion:

Sea Tow Services International is a franchise-based Marine assistance, towing, and salvage provider with over 90 franchisees nationwide.

Judge Pamela K. Chen — 211 F. Supp. 3D 528 (E.D.N.Y. 2016)

⚠ T H E S T E I N P R O B L E M

Mitchell Stein was Sea Tow's attorney in this very case—the one where the court called Sea Tow "franchise-based." He then argued in the Tampa Bay litigation that Sea Tow "does not collect a franchise fee, placing it outside the ambit of the NYFSA." The St. Paul case was filed in 2009. He made the opposite argument years later. The contradiction is on the federal record.

E X H I B I T B — 2 0 2 2 : T H E F R A N C H I S E F E E R U L I N G

Judge Kuntz didn't just suggest Sea Tow might be a franchise—he ruled that their payment structure "fits comfortably within" the statutory definition. This wasn't a close call. It wasn't dicta. It was a dispositive ruling on a motion to dismiss.

E X H I B I T C — S E A T O W ' S O W N W E B S I T E

Sea Tow's own website uses the word "franchise" extensively: "Contact the local Sea Tow Franchise for information on their capabilities"; "Sea Tow franchises along with their equipment and personnel are mobilized from across the country." You cannot publicly market yourself as a franchise network to customers while telling a federal judge you're not one.

E X H I B I T D — 2 0 2 5 : C A U G H T L Y I N G I N C O U R T

On December 29, 2025, Magistrate Judge Locke found that Sea Tow made false statements in its filings. Sea Tow claimed the Jaegers "have not produced any documents concerning or containing a calculation of damages." The Court found this "untrue"—the Jaegers had produced over 9,000 pages of bates-stamped documents.

Calling an adversary a liar in court filings or suggesting that an adversary is gaslighting the Court does not convince the Court that the accusations are true. If anything, they invite suspicion on the accusing attorney.

Magistrate Judge Steven I. Locke — December 29, 2025

E X H I B I T E — 2 0 2 6 : D I S C O V E R Y A B U S E

Sea Tow served 22 non-party subpoenas—more than double the Court's 10-deposition limit. On February 18, 2026, Judge Locke issued an emergency protective order staying all subpoenas. On February 21, he advanced the hearing by two days. Sea Tow remains barred from reviewing any responsive documents.

E X H I B I T F — 2 0 2 3 : T H E I R O W N L A W Y E R Q U I T

Former Sea Tow co-counsel Steven Altman withdrew from the case. His reason, stated in court filings: "STSI insisted on legal strategies that I believe are contrary to the law and my ethical obligations." (Document 241). When your own lawyer walks away citing ethics, the Court takes notice.

IV

The Question Nobody Is Asking:

When Does This Become RICO?

The Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. §§ 1961–1968) was designed for exactly this pattern—an enterprise that engages in systematic fraud using legitimate business structures as a vehicle. RICO requires four elements. Consider each one against the public record:

1 8 U . S . C . § 1 9 6 2 The RICO Framework Applied to Sea Tow

R I C O E L E M E N T 1 : A N E N T E R P R I S E

RICO requires any legal entity or associated group. Sea Tow Services International, together with its 100+ franchise locations, the family-controlled entity H2Fro Inc., and related corporate entities, constitutes an enterprise engaged in interstate commerce across dozens of states.

R I C O E L E M E N T 2 : A P A T T E R N O F R A C K E T E E R I N G A C T I V I T Y

RICO requires at least two predicate acts within ten years. The public record suggests far more:

Wire Fraud §1343 Mail Fraud §1341 False Statements

Interstate Transport Stolen Property §2314 Franchise Sales Fraud Wire Fraud: Collecting franchise fees through interstate electronic transactions from 100+ locations for 40+ years—while representing to regulators and courts that no franchise exists—constitutes the use of interstate wires in furtherance of a scheme to defraud. Every electronic payment under the "Management Agreement" is potentially a separate predicate act.

False Statements: Judge Locke's finding that Sea Tow's representation was "untrue" in December 2025 is documented. This follows a pattern spanning multiple federal cases and decades.

Franchise Sales Fraud: Selling franchise arrangements to 100+ operators without registration, without FDDs, and without FTC Franchise Rule compliance—each sale is a separate fraudulent transaction conducted through interstate commerce.

R I C O E L E M E N T 3 : C O N D U C T O F T H E E N T E R P R I S E

The Frohnhoefer family and Mitchell Stein direct Sea Tow's operations, litigation strategy, franchise sales, and fee collection—all through the corporate structure. Stein's documented sanctions across three separate federal courts—Libaire v. Kaplan (2008, $94,854, "Machiavellian tactics"), Margo v. Weiss (2d Cir. 2000), and Alkoff v. Gold (S.D.N.Y. 1988)—establish a personal pattern paralleling the enterprise's conduct.

Co-counsel Altman's withdrawal citing strategies "contrary to the law and my ethical obligations" provides additional evidence that the enterprise is directed by individuals who knowingly pursue unlawful strategies.

R I C O E L E M E N T 4 : E F F E C T O N I N T E R S T A T E C O M M E R C E

Sea Tow operates a national network across dozens of states. Franchise fees flow from operators in Florida, Massachusetts, California, and elsewhere to Southold, New York. The recreational marine towing market is inherently interstate—boaters cross state and federal waterway boundaries routinely. The coordinated litigation against independent competitors like Tampa Bay Marine Recovery and Maverick Marine further demonstrates the enterprise's interstate reach.

The scale is staggering. Estimated annual franchise fee collection exceeds $7.5 million from 100+ locations. Over 40 years of unregistered operation, the total scope of undisclosed franchise fee revenue potentially reaches hundreds of millions of dollars—all collected without registration, without disclosure, and while telling federal courts the franchise doesn't exist.

⚓ T H E B O T T O M L I N E

The late Captain Joseph Frohnhoefer II built Sea Tow from a single boat in Southold, New York. Whatever his original vision was, what his children and their attorney have built is something different: a franchise system that denies being a franchise, collects fees it claims don't exist, makes statements in court that judges find "untrue," and uses litigation as a weapon against anyone who tries to leave.

New York law is clear. Federal judges have been clear. The TTAB was clear when it cancelled their trademark. The Canadian Federal Court was clear when it expunged their trademarks. Their own co-counsel was clear when he quit citing ethics.

The only people who aren't clear are the people running Sea Tow.

And now Judge Locke has moved up their court date by two days. They have until noon Tuesday to explain themselves.

Tick tock.

HORNSWAGGLED

"In a world of corporate plunder, sometimes ye need pirates to restore honor to the seas." This document is for informational and satirical purposes only. It does not constitute legal advice. All information based on publicly available court filings and records. Court documents accessible via PACER: pacer.uscourts.gov Case No. 2:20-cv-02877-WFK-SIL • Eastern District of New York ☠ Sea Tow Servs. Int'l v. St. Paul Fire & Marine Ins., 211 F. Supp. 3d 528 (E.D.N.Y. 2016) Reflects information through February 22, 2026. Content may be assisted by AI tools. NY AG Investor Protection Bureau: (212) 416-8222 Ahoy, Mateys and Landlubbers Alike, Ye be askin' who be Hornswaggled?

Aye, that be a question worthy of ponderin', though we may or may not be obliged to give ye a straight answer.

(Ah - before we forget, if this message got to you in a bottle floatin' on the internet and you want the scoop directly from the crow's nest, respond to this email and we will add ya to the list!!!)

We may or may not be:

A single scallywag with a quill and a grudge

A motley crew of seafarin' souls who've been hornswaggled by corporate buccaneers Yer neighbor at the annual meeting, sippin' grog and takin' notes Someone dockin' at a certain harbor on Hummel Avenue as ye read this very scroll Current crew members who've grown weary of sailin' under a tattered flag Former hands what got marooned after years of loyal service Landlubbers with access to the ship's log Ghosts in the rigging what see all and say nothin'... until now Our Mission Be Crystal Clear (even if our identities be foggier than Point Judith): Stay informed. Stay protected. Your livelihood depends on it.

We sail these troubled waters to inspire thoughtful questions about yer business, yer future, and whether the ship ye be sailin' on has sprung more leaks than the captain be admittin'.

We may or may not have witnessed—or been keelhauled by—what some might call a "Frochise" business model (that be a franchise what acts more like a noose than a partnership, savvy?).

We believe the time has come for true transparency to be the new corporate culture. No more hidin' behind the legal fog.

Ye be heading for a legal Malstrom and Ye ought to know when to batten down and make fast the deck tackle.

No more makin' honest sailors walk the plank whilst the officers in the great cabin count their doubloons.

A Word on Our Tales:

Some of our yarns may feature composite characters—a bit of this captain mixed with that first mate, perhaps a dash of a deckhand thrown in for flavor. We do not acknowledge, confirm, or deny that these characters represent any person, living or dead, drowned or saved, real or imagined.

They be as fictional as mermaids... or as real as the Kraken, dependin' on who ye ask. About the Dangers of Our Trade:

Far too many brave souls risk their lives in the marine towing and salvage business. They battle storms, rogue waves, and vessels in distress—and that be hard enough without also fightin' battles from within their own fleet.

When the greatest danger comes not from Poseidon himself, but from the corporate quarterdeck, something be terribly wrong with how we chart our course. Our Sources and Methods:

All information we provide be based on publicly available documents—court filings, federal records, treasure maps left in plain sight (also known as corporate filings), and such.

We be but humble researchers with library cards and internet connections. IMPORTANT DISCLAIMERS (The Boring But Necessary Stuff):

⚓ Document Accuracy:

We not be responsible for any errors, omissions, or deviations from the public record. We caution all readers to read the source documents for themselves. Don't take our word for it—verify with yer own eyes, savvy?

⚓ Satire and Commentary:

We may engage in satire, parody, and rhetorical flourishes for the purpose of provoking thought, which be our First Amendment right as a U.S.-based pirate crew. (Aye, even pirates can be patriots!)

⚓ AI Usage Disclaimer:

Some of our content may be created, enhanced, or assisted by artificial intelligence tools. We be livin' in the future, mateys, where even parrots be digital. Any AI-generated content should be considered part of our creative and analytical process. ⚓ AI Image Generation Disclaimer:

Images accompanying our publications may be generated wholly or partially by artificial intelligence.

These images be for illustrative, satirical, or commentary purposes only. They do not represent real people, real events, or real photographs unless explicitly stated otherwise.

No AI-generated image should be construed as documentary evidence. ⚓ No Legal or Financial Advice:

We not be lawyers, accountants, or licensed advisors of any sort.

We be storytellers, researchers, and question-askers.

Seek ye professional counsel for matters of law and coin.

So, who be Hornswaggled?

We be the voice in the crow's nest yellin' "Hard Alee!" when the corporate ship be headin' for the rocks.

We be the conscience that asks uncomfortable questions at midnight when the watch changes.

We be whoever needs to be, whenever truth needs tellin'.

Or perhaps we be nobody at all—just the wind whistlin' through the riggin', carryin' tales that needed to be told.

The only certainty?

We may or may not be watchin'.

We may or may not be listenin'.

And we may or may not have more stories to tell.

Fair winds and following seas, Hornswaggled We may or may not be a crew.

We may or may not be near ye right now.

We definitely be committed to transparency...

even if we be mysteriously opaque about ourselves.

"In a world of corporate plunder, sometimes ye need pirates to restore honor to the seas."

AI-GENERATED CONTENT DISCLAIMER

AI Involvement

This document was generated using Claude (Anthropic), an artificial intelligence language model, based on analysis of legal documents, court filings, and other materials provided in a project knowledge base. The AI synthesized information from these source documents to create a narrative analysis of the legal proceedings described herein. Source Materials The content is derived from:

Court documents filed in Case 2:20-cv-02877-WFK-SIL (U.S. District Court, Eastern District of New York) Court documents filed in Case 2:25-cv-02145 (U.S. District Court, Eastern District of New York) Legal pleadings, motions, memoranda, and orders Docket entries and case transcripts Attorney correspondence and discovery documents Analytical articles based on public PACER filings All dates, case numbers, document references, and quoted material are derived from these source documents to the best of the AI's ability to accurately represent them.

Not Legal Advice

This document is for informational and analytical purposes only. It does not constitute legal advice, and should not be relied upon as such. The analysis, interpretations, and conclusions presented represent one perspective on complex legal proceedings and should not be considered definitive or authoritative. Readers should:

Consult with licensed attorneys for legal advice specific to their situations Independently verify all factual claims and legal citations Review original court documents and filings through PACER or other official sources Recognize that legal proceedings are ongoing and facts may change Limitations and Caveats 1. Interpretation Bias: The narrative structure and framing reflect editorial choices made in synthesizing the material. Other reasonable interpretations of the same documents may exist. 2. Document Access: The AI's analysis is limited to documents provided in the project knowledge base. Other relevant documents may exist that were not analyzed.

3. Temporal Snapshot: This document reflects information available as of October 31, 2025. Court proceedings continue to evolve, and rulings or developments after this date are not included. 4. No Attorney-Client Relationship: Nothing in this document creates an attorney-client relationship between any reader and any person or entity.

5. Verification Recommended: While efforts were made to accurately represent source materials, readers should independently verify all claims, especially before taking any action based on this information. Purpose This document was created to:

Provide a comprehensive narrative timeline of the legal proceedings Synthesize complex legal documents into accessible prose Highlight patterns and connections across multiple filings Support informed discussion of franchise law compliance issues Parties' Rights All parties named in this document retain their full legal rights. Nothing herein should be construed as prejudging the outcome of pending litigation. Courts of competent jurisdiction will make final determinations on all disputed matters. Public Records The legal proceedings described herein are matters of public record. Court documents referenced can be accessed through the Public Access to Court Electronic Records (PACER) system at https://pacer.uscourts.gov or by visiting the clerk's office of the U.S. District Court for the Eastern District of New York. Questions or Corrections If you believe any factual statement in this document misrepresents source materials or contains errors, please consult the original court filings for authoritative information.