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It’s been a long time since I’ve written an article. The reason is that I’m pretty much out of the HYIP game. However, I’m still watching things from the sidelines. One of the things I’m watching is EMO. It’s moving slower than molasses, so I only check on it now and then.
Recently I received an email from a former EMO employee, who wishes to remain anonymous. They gave me permission to broadcast the content. I thought about paraphrasing what they said, but the best way to convey the information is in the original content:
Hello Sharon,
I am a former employee of EMO and have been following your forum for sometime now. I enjoy reading your posts and wholeheartedly appreciate all of the wonderful things you have continually said regarding this ridiculous situation. The reason for my email was just to ask your opinion about EMO at this point. It is obvious that EMO will not rise from the ashes like the phoenix, due to the TX AG, Banking Commission, Fulbright and Jaworski, and Gary Barton from FTI Consulting. They have extorted more than 2 million dollars to date and will continue to sludge along until every last penny of customer funding is gone. Ironic, since the AG and the receiver have pledged to be acting in the very best interest of the creditors. It pains me to no end, because I know personally what we were involved in, and that was thwarting fraud and protecting customers from the very same criminals that now essentially are stealing all of the money. The company was founded with the strictest of intentions to limit exposure of personal as well as banking information over the internet and offer verified clients the ability to utilize our secure platform to transfer money legally internationally, and we became so successful in doing so that it became readily apparent to everyone involved that we were operating a legitimate business and the great state of TX was not getting their share, but saw the dollar signs when they got wind.
In response to many member comments about EMO not being licensed in TX, we had been advised by counsel in Austin, TX, a large international firm by the way, that our business model did not require a MSB license here in TX. As you have alluded to in earlier posts, we were registered federally, IRS, FINCEN, SEC, etc. but for some reason our high powered attorneys here in Austin felt that EMO did not fall under the guise of needing a MSB license in TX. So much for paying for good advice.
Basically I am just writing you to thank you for all of your support and get some sort of idea of what people, who actually know the truth, feel about what has transpired to date. Understandably there are some very angry and frustrated customers out there, it’s inevitable, but relaying to them the proper information is very important to understanding the real truth.
On another note, I was present for the involuntary bankruptcy hearing and let me just say that it was a waste of time. The judge was completely disinterested, most likely for the mere fact that Gary Barton’s testimony lasted about 1.5 hours and the entire hearing was supposed to be an hour. Seemed to me the decision was already made before we walked into the courtroom. Anyway thank you again and I look forward to your reply.
I had a few back and forth emails with the former EMO employee, but nothing more noteworthy was said.
In other news, Gary Barton opened a new website, www2.emocorp.com. On the site you’ll find the fees that Mr. Barton and the consultants petitioned to receive up through August 2006. It’s ironic that only the fees up through August are posted. That corresponds with the last time I found a website with the information and posted here about it. What are the fees since then?
I’d be willing to bet that the fees are much higher now. Some former EMO account holders decided to try to get their money via bankruptcy court. Gary Barton and friends lumped the motions together. In late November they got an early Christmas present. All bankruptcy cases against the EMO funds were dismissed. All these account holders did was to increase the amount of time and money it is taking for all to receive anything. IF any of us are to receive anything from EMO, please allow the current court procedure to finish. Any attempts to circumvent it will result in you spinning your wheels, spending time and money, and reducing the amount of money, if any, for all account holders.
Here’s hoping and praying that 2007 is more prosperous for all of us! I hope that the EMO receivership will come to an end and that former account holders will get something, but I wouldn’t count on it (maybe 2008?)
JMO - Sharon
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I have more trust in a scammer than I have in the court system in the USA towards internet businesses. The recievers abuse the law system and the judges who probably dont even have a clue of what the word WWW means. I am sorry but thats the impression I get from all this. In my eyes recievers are scammers as well. I know they gotta feed their family but some of their monthly earnings are simply outragious.
I couldn’t agree with you more! Well said, Makila!
The creditors will most definitely lose this bid. The judicial system in this country is set up such that without money and power in your corner, you are a man on an deserted island in search of the passing oil tanker from OPEC steaming towards the painfully corrupt state of Texas. Can’t you smell that Texas, that is your soul that is burning. What happens next, remains to be seen, but if present history continues to play itself out, the receiver Gary Barton will work on dissolving EMO until every last penny has been exhausted. I’m sure it is worth it though, for apparantly what he and his professional staff have charged during the course of this bogus investigation, they could have taken a small chunk out of the national deficit. Anyway more news to come. Stay tuned, for there is always a place for the truth to be told.
This is why I no longer have any significant assets or accounts in the US. It’s a sad fact, but unfortunately any financial institution in the US is not trustworthy - not because of the people running it, but because of the money&power hungry attorneys, regulators, feds, or whoever wants to shut down the account/company/institution. I took out my last remaining 5 figures out of the US last year and I have had ZERO problems since then, now that I bank offshore. I sleep well at night knowing nothing will happen to my money.
I also lost money in EMO but I consider it MY fault for being so stupid as to trust keeping my money in the US (EMO is in the US).
My 2 cents
Hi Cashking,
Do you use e-gold? It’s in Florida.
Hi Sharon,
Wrong, e-gold is in St. Kitts & Nevis Island. The owner/founder lives in Florida. That doesn’t make the company a Florida company.
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Egold has Florida OFFICES which gives them a US presence - Melbourne I believe. I have no idea why they dont get out of the US entirely, even ebullion is in CA! Not even a foot in the US door is safe IMO
Hi Sophie, yes they do have offices there, and I wish they didn’t. Same with e-Bullion, e-Bullion is a Panama corporation, and yet they choose to run their offices out of California… they could be the next target, who knows.
To run a financial operation properly you just need to get out of the US entirely, I agree
Ah, there’s no safe haven anywhere when it comes to online ecurrency i guess.
All they all have to do is get out of the USA period, then they will be OK — WTF.. it makes no sense.. are they that ignorant and naive?
I did buy an account at Southern Star - private - numbered - untraceable since funds must go through an exchanger.. I am hoping this will be an answer - opens in a few weeks
I am an EMO account holder. It appears that Mr. Barton has found his own method of cashing in on Internet enterprise. It is so unfortunate that he has been allowed to basically execute the agenda that he was put into receivership to prevent.
With regard to class action suits, is there no federal laws in place with regard to consumer protection or FTI Consulting, Inc. being allowed, without any form of comparison or accountability, to purposefully consume individuals account balances? What federal agency would be most appropriate to review the actions of the State of Texas and Mr. Barton. Perhaps MSNBC should be given a lead for an investigative expose.
Now that the assets of EMOCorp have been purchased by Enhancement V, LLC., I suppose Mr. Barton will delay final closure until he has absorbed those monies also. This is the second internet corporation and group of individuals he has committed this type of theft against. If some type of exposure of his actions does not take place, what other corporation will be the next victim?
Alisa,
Thank you for your post. I was curious what other internet company Mr. Barton had legally done this to? Seems like FTI Consulting is on to something with their restructuring business. It would not surprise me, based on their company profile and vast experience in this arena, that they look for companies to steal. With an ally of any local, state, or federal government on their side, they can essentially create any case they want and follow through with it until they get what they want. Let’s face it, the motivating factor here is money. Yes EMO’s technology was unique and very valuable, but greed still remains as one of the primary reasons for most businesses, long term. I would love the opportunity to chat with you more on this topic and perhaps I can shed a little insight on what has transpired over the last year. Please reply with an email address that you would like to use, or send an email to Sharon, for she has my email addy already. Thank you.
Hi Alisa,
I thank you for a very informative post, also. If you would like to start a conversation with tattersall, please post OK in here and I’ll send each other’s email addresses or shoot me an email. I’d love to be in on the conversation. Maybe there’s something we could do together. Perhaps we can get together in a conference room.
Thanks,
Sharon
Good morning Sharon and Tattersall,
I received both the post and the e-mail. It is to my understanding through researching the web that Mr. Barton was also the receiver for 12 Daily Pro. FTI Consulting has changed their web address multiple times and in the last instance the new link was not readily made available.
Somehow yesterday when I was accessing the new web address through third party sites I reached the Motions page of what appeared to be for a different company. When I attempted to access the new site directly, for days I kept getting the message that the page was no longer available.
FTI in the past was quick to respond to my e-mails. When I viewed the timeline of events page after it was posted I e-mailed that despite being months into the process, FTI had basically not gained any ground with regard to an equitable distribution plan. I have never received a response from FTI after that e-mail. FTI has not been diligent in its contact with account holders and has failed to respond with any type of good faith effort.
I found it ironic that on the letter posted from last March, that Mr. Barton would utilize the website for updates due to the cost of postage. He does not want a nickel to escape him. I have only received one letter from FTI during the many months of this company’s receivership.
Alis
Thomas Lennon is the receiver for 12 Daily Pro. The url is as follows:
http://www.tlennonfor12dailypro.com
If you sift through all of his fee applications on the website, you will find that his rates are at least 25% less than that of Gary Barton of FTI Consulting. As for your comments about Mr. Barton posting information on the emocorp.com website and keeping the creditors/consumers up to date, you will find that the scope of his information had been limited, only until the bankruptcy proceeding when the few creditors who were able to show up and witness the dog and pony show, voiced their concerns about the lack of information. Subsequently Mr. Barton then updated the emocorp.com website on October 26th of 2006 and posted more information to appease the creditors. His fees ironically are only up to August 2006, as well as those of his attorneys from Fulbright and Jaworski, LLC.
Creditors will still receive nothing from the disbursement of the estate. If he states that the shortfall was somewhere between $3.5-4.3 million, and he only is receiving $1million from the sale of the EMO assets, where is the difference coming from to pay the creditors. I’m sure that he won’t be reducing his fees to make good on that. There is so much more information that he is intentionally leaving off the website that is only viewable from the Travis County Courthouse in the form of public documents and filings. Why would that be? Anyway if anyone is curious I can provide a plethora of information for your interest. Thank you for your time.
Seems as though Gary Barton and company have finally exhausted all of the customer/creditor funds. You know what that means? He is finished his investigation and is ready to wind up this charade. Over a year now and counting, yet there is still no sign of any disbursement on the horizon. Does he plan on paying any customer’s back? Does he understand that some sort of meaningful distribution must be made in order to justify what work he has done for the last 13 months? Who knows at this point, but what I do know is that he must have his fees disgorged in order to do this. There is no money left for him to extort and in order to satisfy his fiduciary responsibility as a state court appointed receiver, he will be held accountable and legally liable for future recourse and litigation, if creditors are not made whole. With only a $1 million purchase price for the assets of EMO corp, and signed orders from the Travis County judge, John Dietz, allowing two secured claims from one Anthony Cashen and the other from Comerica bank, nearing a cumulative total of $800K, that will leave only $200K for the rest of us.
Anthony Cashen by the way was only a secured creditor because he has an alleged claim against the IP, more specifically the patent pending, and Comerica bank because of all of the NSF charges and bounced printed checks and returned ACH’s from opportunistic fraud. The day the receiver shut down EMO’s operations, he also placed a freeze on the company’s operating bank accounts with Comerica and the situation escalated from there.
I hope you weren’t counting on receiving any of your EMO money back. The fees and expenses that the receiver has has reported on the EMO website, only is up to August of 2006. We are now in April 2007, do the math and understand who the real criminals are here. Thank you for your time!
I was just thinking that I should go look to see if there is anything new with EMO, but you said it very well. Thank you Tattersall!
- Sharon