Sort & Stack LLC v. Matthew Hartzog
What's This Case About?
Let’s cut straight to the drama: a man helped form a business, then allegedly walked into a bank and just took $64,000 from the company account—cold, no permission, no warning, no remorse—and used it all for himself. Not to pay company bills. Not to save the business. Nope. For himself. Like the LLC was his personal ATM with a side of betrayal. And now, the company—yes, a company suing a guy who owns part of it—is dragging him into Oklahoma County District Court like, “Hey, remember us? The thing you stole from?”
So who are these people? On one side, we’ve got Sort & Stack LLC, a perfectly normal-sounding Oklahoma-based business that, based on the name, might organize closets, declutter homes, or help people finally sort their junk drawer situation. We don’t know exactly what they do, but we do know they were trying to run a legit operation with proper bank accounts, payroll, and rent obligations. On the other side: Matthew Hartzog, a 20% owner of the company, which means he wasn’t just some random employee—he had skin in the game. But—and this is important—he wasn’t in charge. He wasn’t a manager. He wasn’t even currently employed by the company. Yet, because he used to work there, he still had access. He was an authorized signatory on the bank account. Which, in business terms, is like giving someone a skeleton key to your financial house. And Matthew? He didn’t just peek inside. He moved in.
Here’s how it all went down, according to the filing: on February 2, 2026—a date that will now live in petty corporate infamy—Matthew allegedly strolled into a Bank of Oklahoma branch and withdrew $64,000 from Sort & Stack’s account. Let’s pause for a second. That’s not spare change. That’s a down payment on a house. That’s a luxury car. That’s a lot of therapy. And he didn’t use it for the business. Nope. The petition says he took it “for his own improper personal use,” which is lawyer-speak for “he blew it on himself like it was his birthday, tax refund, and divorce settlement all at once.” And get this—he didn’t tell anyone. Not the manager, William Harper. Not the other members. Not even a quick “Hey, I’m gonna grab sixty-four grand, kthxbye.” He just… took it. Like a corporate kleptomaniac with a banking habit.
Now, you might think, “Wait, he owns 20%—doesn’t he get a cut of the profits?” Sure, if there are profits, if the LLC decides to distribute them, and if it follows the rules. But that’s not what happened here. This wasn’t a dividend. This wasn’t a paycheck. This was a straight-up, unapproved, unauthorized cash grab. And because of it, Sort & Stack got hit hard. They couldn’t meet financial commitments. They had to scramble to cover payroll and rent. The filing says they were forced to beg customers for early payments—and accept less money than they were owed—just to keep the lights on. That’s not just bad business. That’s a financial ambush.
So why are they in court? Well, the company didn’t just file one claim. They came loaded. Five separate legal theories, like a legal buffet of betrayal. First up: Breach of Fiduciary Duty. Fancy term, simple idea: when you’re part of a company, especially as a member, you have a duty to act in the company’s best interest. You’re not supposed to screw it over. By taking the money for himself, Matthew allegedly violated that duty of loyalty—like a co-pilot deciding to steal the plane mid-flight and fly it to Belize.
Next: Conversion. This one’s about property. The $64,000 wasn’t Matthew’s. It belonged to the LLC. He didn’t have the right to take it. By withdrawing it, he “exercised wrongful control” over someone else’s money—which, in plain English, is called stealing. Then there’s Wrongful Distribution, which is basically the legal version of “you can’t just pay yourself.” Oklahoma law says distributions have to follow the rules. No self-service cashouts. And this one? Totally unauthorized.
They also claim Breach of the Operating Agreement—the rulebook for how the LLC runs. Matthew allegedly violated at least 15 different sections of it (the petition lists paragraphs 8, 9, 11, 17… and so on, like a legal grocery list of wrongdoing). And finally, Unjust Enrichment: he got richer, the company got poorer, and it wasn’t fair. He shouldn’t get to keep the money just because he took it.
So what do they want? $64,000 back, obviously. But also: interest (because time is money), punitive damages (because they want to punish him, not just get paid back), attorney’s fees (because this mess wasn’t cheap to clean up), and even a constructive trust—which sounds like a dating app for lawyers but is actually a court order saying, “Hey, if you spent the money on a car or a house, that thing now belongs to the company.” Oh, and they want a jury trial. So this isn’t just about money. It’s about accountability. They want twelve Oklahoma citizens to look Matthew in the eye and say, “No, dude. Not cool.”
Now, is $64,000 a lot? In the grand scheme of lawsuits, it’s not massive. But for a small business? That’s catastrophic. That’s payroll for months. That’s rent, insurance, supplies. That’s the difference between staying open and closing down. And the fact that they had to beg customers for early payments—at a discount—shows how deep the damage went. This wasn’t just theft. It was sabotage.
Our take? Look, business partnerships are messy. People fall out. Money gets tight. But walking into a bank and just taking tens of thousands of dollars like you’re the CEO of Nope isn’t a disagreement. It’s a betrayal. The most absurd part? That he still had access. How does a former employee, non-manager, 20% owner still have signing authority? That’s like letting your ex keep the house keys “just in case.” And the fact that he did it right before payroll? Cold. Ice cold.
But here’s what we’re rooting for: not just the money back. We’re rooting for the shame. We want the jury to see the receipts. We want to know what he bought with that $64,000. A boat? A Rolex? A lifetime supply of protein powder? Whatever it was, it better have been worth losing your reputation, your relationships, and possibly your freedom over. Because in the court of public opinion—and yes, we’re that court—stealing from your own company isn’t just illegal. It’s unforgivable. And if this case teaches us anything, it’s this: never, ever give someone the keys to your bank account unless you’re ready for them to drive off with the whole damn car.
Case Overview
-
Sort & Stack LLC
business
Rep: Ronald T. Shinn Jr.
- Matthew Hartzog individual
| # | Cause of Action | Description |
|---|---|---|
| 1 | Breach of Fiduciary Duty | Defendant withdrew $64,000 from company's bank account for personal use without authorization |
| 2 | Conversion | Defendant wrongfully exercised control over company funds |
| 3 | Wrongful Distribution in Violation of Oklahoma Limited Liability Company Act | Defendant provided himself a wrongful distribution of $64,000 |
| 4 | Breach of the Operating Agreement | Defendant breached various provisions of company's Operating Agreement |
| 5 | Unjust Enrichment | Defendant received a benefit or enrichment at company's expense |