legal Balance of payments issue from leading industry domainer/broker Kevin Leto

[Gerry]

I think most troubling for me at this point is the business model, we still are not clear on what it is, examples of the developed names ( in James case ) and how they are earning revenue. Until that is explained ( by either party involved ), this doesnt look good.

:clap:

 

[TheLegendaryJP]

I understand what you are saying Kevin, the thing that baffles me is when dealing with less than premium names, no solid revenue stream and a down turned market, how a repayment with premium of 20% was even a feasible concept. The names involed imo any way were here nor there to the actual deal (they had no real chance in hell of turning a profit on resale, they didnt earn solid revenue.. they were nothing more than a " product " or disguse dare I say)

I just don't understand Kevin, you are a very bright guy, paying commission to those who sold the idea to others wasn't a great idea either imo.

End of the day, my hope is it was just an idea that didn't fly.

 

[bwhhisc]

Given the facts here, your THREAD TITLE is a bit misleading "i have been scammed by a leading industry domaine/broker in a huge ponzi scheme"

This does not appear to be a "scam" but an issue of seller not being able to meet his payment obligations.
I would moreover see this as a scam if you put money in and he took off with it.... period. There is no evidence to prove a "huge ponzi scheme", so not sure that should be insinuated.

That being said, I hope you can work this out between you two. There is probably a solution you can both live with if you communicate; I can think of a number of possible solutions with the best solution perhaps being a 3rd party loan secured by some of his domains to catch you up.

 

[Gerry]

People setting this up must have worked for AMWAY before they got into domaining.

 

[GeoOwners]

I understand what you are saying Kevin, the thing that baffles me is when dealing with less than premium names, no solid revenue stream and a down turned market, how a repayment with premium of 20% was even a feasible concept. The names involed imo any way were here nor there to the actual deal (they had no real chance in hell of turning a profit on resale, they didnt earn solid revenue.. they were nothing more than a " product " or disguse dare I say)

I just don't understand Kevin, you are a very bright guy, paying commission to those who sold the idea to others wasn't a great idea either imo.

End of the day, my hope is it was just an idea that didn't fly.

On a large scale it could have worked...borrow lets say 100k using so-so names as backing...buy a 100k name with the funds, flip it for 140k (or insert any number higher than 120k)...clear 20k after paying the 20% and principle.

rinse/repeat. should work in a good economy.

 

[KRL]

I just don't understand Kevin, you are a very bright guy, paying commission to those who sold the idea to others wasn't a great idea either imo.

End of the day, my hope is it was just an idea that didn't fly.

Thank you Josh. James asked me if he could market the concept. I wasn't sure myself if that was a good idea. No one else did.

---------- Post added at 01:21 PM ---------- Previous post was at 01:18 PM ----------

On a large scale it could have worked...borrow lets say 100k using so-so names as backing...buy a 100k name with the funds, flip it for 140k (or insert any number higher than 120k)...clear 20k after paying the 20% and principle.

rinse/repeat. should work in a good economy.

I agree exactly! I figured though to start on a small scale to test the concept and find if it was as good as I thought and then scale it up.

 

[razorblade]

Given the facts here, your THREAD TITLE is a bit misleading "i have been scammed by a leading industry domaine/broker in a huge ponzi scheme"

This does not appear to be a "scam" but an issue of seller not being able to meet his payment obligations.
I would moreover see this as a scam if you put money in and he took off with it.... period. There is no evidence to prove a "huge ponzi scheme", so not sure that should be insinuated.

That being said, I hope you can work this out between you two. There is probably a solution you can both live with if you communicate; I can think of a number of possible solutions with the best solution perhaps being a 3rd party loan secured by some of his domains to catch you up.

I believe you are right about the title to an extent. Yes, my main gripe has been the continuous non payment/late payment of the monthly fixed income. However, he had never gone more than 4 weekjs without paying me. It has been six weeks and still a reusal to pay and still a refusal to give me a date when he will pay. I started to believe that the reason he was now into a double default was because he was no longer pulling in money from others who he sold fixed income deals with. Especially when we are talking a massive 20% guarenteed profit, i finally let my skepticism about this being a possible shady deal into a definate shady deal.

 

[KRL]

Given the facts here, your THREAD TITLE is a bit misleading "i have been scammed by a leading industry domaine/broker in a huge ponzi scheme"

This does not appear to be a "scam" but an issue of seller not being able to meet his payment obligations.
I would moreover see this as a scam if you put money in and he took off with it.... period. There is no evidence to prove a "huge ponzi scheme", so not sure that should be insinuated.

That being said, I hope you can work this out between you two. There is probably a solution you can both live with if you communicate; I can think of a number of possible solutions with the best solution perhaps being a 3rd party loan secured by some of his domains to catch you up.

I agree and very unfair especially to do it national enquirer style.

 

[A D]

Razorblade, So how much money is owed to date this is unpaid?

KRL, What is the estimated date to pay him back ro bring past payments up to date?

-=DCG=-

 

[razorblade]

I agree and very unfair especially to do it national enquirer style.

When you dont live up to your end of the deal through constant late payments and default on payments reaching six weeks plus, how long do i wait for late payment to turn into non payments??

You still have not paid me for feb and march payments.....

---------- Post added at 01:40 PM ---------- Previous post was at 01:35 PM ----------

Razorblade, So how much money is owed to date this is unpaid?

KRL, What is the estimated date to pay him back ro bring past payments up to date?

-=DCG=-

$1600 - $800 for Feb and $800 for March.

I will let kevin tell you how much is still left outstanding

 

[David G]

Ditto and agree it is false and extremely deceptive of the OP to claim it was a huge ponzi scheme.

All this is a not very serious slow payment history (certainly nothing so major to get so excited about it) caused by the economy and the sharp decline in domain liquidity, combined with a big drop in PPC. As Kevin said, not all business plans work out.

Lord knows many domainers have had serious financial difficulties so this is far from unusual. IMO, the OP owes Kevin an apology.

Given the facts here, your THREAD TITLE is a bit misleading "i have been scammed by a leading industry domaine/broker in a huge ponzi scheme"

This does not appear to be a "scam" but an issue of seller not being able to meet his payment obligations.
I would moreover see this as a scam if you put money in and he took off with it.... period. There is no evidence to prove a "huge ponzi scheme", so not sure that should be insinuated.

That being said, I hope you can work this out between you two. There is probably a solution you can both live with if you communicate; I can think of a number of possible solutions with the best solution perhaps being a 3rd party loan secured by some of his domains to catch you up.

 

[KRL]

Hi Adam,

James has received 10 of 12 income payments on his 3 domains at $450 per month which completes its 1 year term this month.
He's received 6 of 12 income payments on his 4th domain at $50 per month which completes its 1 year term in August.

His 2 clients are 1/2 way through their payments with 6 sent at $250 and $50 which completes the 1 year term in August.


3 Domains / Fixed Income Payment 04/04/10-01 $450
3 Domains / Fixed Income Payment 05/04/10-02 $450
3 Domains / Fixed Income Payment 06/04/10-03 $450
4 Domains / Fixed Income Payment 07/04/10-04 $450 + $50 = $500
Fixed Income Domains Payment 08/04/10-05 $450 + $50 = $500
Fixed Income Domains Payment 09/04/10-06 $450 + $50 = $500
Fixed Income Domains Payment 10/04/10-07 $450 + $50 = $500 PAID ON 10/20/10
Fixed Income Domains Payment 11/04/10-08 $450 + $50 = $500 PAID ON 11/30/10
Fixed Income Domains Payment 12/04/10-09 $450 + $50 = $500 PAID ON 01/04/11
Fixed Income Domains Payment 01/04/10-10 $450 + $50 = $500 PAID ON 01/25/11

---------- Post added at 01:47 PM ---------- Previous post was at 01:45 PM ----------

Ditto and agree it is false and extremely deceptive of the OP to claim it was a huge ponzi scheme.

All this is a not very serious slow payment history (certainly nothing so major to get so excited about it) caused by the economy and the sharp decline in domain liquidity, combined with a big drop in PPC. As Kevin said, not all business plans work out.

Lord knows many domainers have had serious financial difficulties so this is far from unusual. IMO, the OP owes Kevin an apology.

Thanks David.

 

[razorblade]

All this is a not very serious slow payment history (certainly nothing so major to get so excited about it)

ok - put your money where your mouth is. I have a great business plan that requires a seven k investment. I promise to make you specific monthly payments every month .....unless of course things dont work out .....i look forward to your money

 

[David G]

ok - put your money where your mouth is. I have a great business plan that requires a seven k investment. I promise to make you specific monthly payments every month .....unless of course things dont work out .....i look forward to your money

It's not always wine and roses. These financial issues happen sometimes beyond the control of the individual. This is a minor case compared to all the much more serious ones which are so common now.

 

[razorblade]

It's not always wine and roses. These financial issues happen sometimes beyond the control of the individual. This is a minor case compared to all the much more serious ones which are so common now.

David - you are missing one major difference. Kevin is well within his means to pay me the $800 a month. This is not like he invested in a venture that put him out on the street. I have yet to be given a reason why he defaulted on his payment schedule when he could easily afford to honor it through a variety of means.

 

[KRL]

James I've asked you to call me or I'll call you if you give me your new number so I can update you.

 

[razorblade]

James I've asked you to call me or I'll call you if you give me your new number so I can update you.

At this point in time, I think an email will suffice. It will give both of us the protection of having everything on the record.

 

[A D]

James has received 10 of 12 income payments on his 3 domains at $450 per month which completes its 1 year term this month.
===>>> Leaves $900 owing here.

He's received 6 of 12 income payments on his 4th domain at $50 per month which completes its 1 year term in August.
===>>> Leaves $300 owing here

His 2 clients are 1/2 way through their payments with 6 sent at $250 and $50 which completes the 1 year term in August.
===>>> Leaves $1800 owing here

So in total you still owe him $3,000?

Is that correct?

-=DCG=-

 

[KRL]

Yes Adam that will be the total income he'll through August.

 

[A D]

Yes Adam that will be the total income he'll through August.

So to be clear, how much $ are you behind payments to date?

-=DCG=-