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Quadranet’s FRAUDULENT use of personal SIN with Crissic Purchase
In August of 2015, I sold Crissic Solutions to QuadraNet. QuadraNet agreed to keep the company online and provide services to the customers for approximately 1 year post-purchase to facilitate a smooth transition and shutdown of the company. As part of the agreement, the PayPal account was to be transferred to QuadraNet’s information (including SIN/tax information). The following legal council correspondence was sent April 10th of 2018 following the discovery and notice from the IRS regarding an unpaid tax bill.
Dear Mr. Mishan:
This office represents Mr. Skylar MacMinn with regard to the Asset Purchase Agreement (hereinafter, "Agreement") signed on or about August 10, 2015. Crissic Solutions was the seller and Quadranet, Inc. was the buyer.
As part of the Agreement, it was agreed that Mr. MacMinn (the principal of Crissic) would relinquish his PayPal account, which contained his SIN and EIN numbers, and that it would be changed by Quadranet personnel immediately upon the signing of the contract. Quadranet's personnel promised that they would substitute their own SIN and EIN numbers.
However, instead of changing the SIN and EIN numbers, QUADRANET personnel continued to use Mr. MacMinn's PayPal account, unchanged.
Mr. MacMinn initially had no idea that Quadranet personnel were continuing to use his PayPal account, unchanged. Nobody from Quadranet ever contacted Mr. MacMinn to tell him that Quadranet was conducting business under his name. Mr. MacMinn has not had access to this account since the Asset Purchase Agreement and he has not been involved in the business in any way since the Asset Sale.
After the Agreement was signed, Mr. MacMinn in late March 2018 received a Notice from the U.S. Internal Revenue Service
(hereinafter, "IRS") stating that an amount of $26,194 was due by April 25, 2018, which included a penalty of $4,190.00 and interest of $1,055.00. Mr. MacMinn has been taxed on over $100,000.00 of revenue that he never received, for the tax years 2015-2017.
The IRS was at that time requesting $26,194 in fees, including interest and fines for the “incorrect” amount filed for that tax year. This income was not something I received or approved of, and the paypal balance statements that I now have access to (as paypal relinquished the account BACK to me as it still had my SIN on file) indicate payments sent both to QuadraNet, and to Ilan’s family members. A different additional login was created under this paypal for Adam Ng, at the time a QuadraNet employee, to log in without using the Crissic paypal primary login credentials. Ilan’s contact information was also added to the Paypal account so they could handle any Paypal related issues directly so I would be unaware of the account status.
Multiple emails and in-person meetings (as I was working at Quadranet for ~1 year post sale as a support representative for QuadraNet and had no access to Crissic) relating to the Paypal information being updated took place with multiple assurances directly from Ilan that the paypal was taken care of correctly.
Further dialog via Ilan’s lawyer include things such as:
During our telephone conversation on June 29, 2018 concerning the claims by the I.R.S. against Mr. MacMinn, you stated that you would be able to designate someone to negotiate with the I.R.S. Mr. MacMinn is amenable to your suggestion. Your negotiator would be able to start with the 2016 assessment.
Please be aware that any authorization by Mr. MacMinn to allow your negotiator to communicate with the I.R.S. is without prejudice to the claims that Mr. MacMinn will assert for reimbursement of his attorney's fees and costs and any other out of pocket costs. The reimbursement claim applies to all fees and costs incurred to date, as well as all future fees and costs.
Constant phone calls, emails, and physical letters had been sent to the lawyer over the course of the last year and a half to no or minimal reply. As of the final letter was sent via my lawyer, the communication total sits at 722. This includes a letter dated April 16, 2019 (1 full year after the initial contact regarding this matter):
April 16, 2019
Re: Quadranet, Inc./Crissic Agreement
Dear Mr. Scapa:
I sent you a Settlement Agreement on March 14, 2019. I have contacted you on several occasions since then and I have not heard back from you. The document was the result of negotiations that culminated in the last proposed Settlement. As you know, the settlement process started back in October 2018
The March 14, 2019 Settlement Agreement addressed all of your client's concerns. This negotiated Settlement should have been signed by your client by now.Additional letters have been sent regularly:
Dear Mr. Scapa:
I received your letter dated August 28, 2018. We both agree that the response from the Internal >Revenue Service is good news.
However, it clear that the I.R.S. decision was the result of the
steps taken by Mr. MacMinn to secure counsel (my Office).
As you know, initial communications with your client were totally ignored.
I can send you the paperwork showing the legal fees that Mr. MacMinn has paid to resolve this matter. All of these fees were necessary because of the actions and/or omissions of your client.
I can send you the details of the legal expenses.
I, too, look forward to working
This matter should be resolved. with you.
Re:
Quadranet, Inc./Crissic Agreement
Dear Mr. Scapa:
On July 24, 2019, four weeks ago, I sent you a letter which you were supposed to sign, on behalf of your client agreeing with the settlement which we had worked out.
( DP.H
H4 .
You never signed it.
You have had ample time to confer with your client.
I require your signature on the July 24, 2019 letter, and I need it e-mailed back to me today. If I do not receive it today, I will have to assume that there is game-playing on your part.
As you know, all fees incurred for arbitration proceedings will be added to the existing settlement amount.
As of last communication, my lawyer and Ilan’s lawyer had reached a settlement agreement for the total of council-incurred fees related to the matter. As a direct result of hiring council and starting dialog with Ilan’s lawyer, the IRS threw out the entire tax bill, essentially agreeing that misconduct was applied post-sale. The IRS is not looking for ANY money at this time relating to matters post-sale of Crissic, however I have paid lawyer fees and retainers to settle this matter. Ilan and his lawyer have not been forthcoming or willing to cooperate or communicate. They have delayed response and resolution. My council was able to secure verbal agreement with his lawyer to a settlement of fees, to which a settlement agreement was drafted and modified multiple times to their exacting specifications, to which the final draft was ignored in its entirety.
QuadraNet and Ilan have caused immense stress and pressure on my family as a direct result of their fraudulent action and ill-intent to resolve. I don’t know how to proceed further, but I cannot remain silent on such abhorrent behavior.
Any crossposting or boosting visibility of this is greatly appreciated.
Comments
Well that's interesting to read !
Oh shoot!
Is it good, if a previous Hosts complain in here? And, if we do something like this in public, do we need NDA or not?
"Just a question from a user with no knowledge about law"
I guess a professional looking web site doesn't translate into business skills for Quadranet.
I have a small VPS with them and it idles just fine.
But I wouldn't trust them with anything important.
Seems Big News
Base on your agrement with crissic and communication betwen lawyer, will IRS audit crissic and quadranet?
Well, I think you should hire a lawyer.
Yeah, it's some kind of an alert for everyone.
The IRS sided with me and removed all associated fines and fees and determined that the remaining portion of the tax returns on my part are accurate. This was only achieved due to the hired council. I cannot speculate as to what the IRS may do in regards to other parties.
I personally never felt "right" with the whole sale of Crissic. I had server with them in Florida dn never did get a good explanation as to why they were moved to L.A., instead of to Miami.
The whole thing just felt wrong to me if you know what I mean. It is hard to put into words when I get those feelings from a company. Quadra just never felt fully legit to me I guess you could say.
Skylar,
I typically do not involve myself on forums or send replies, however this post was forwarded to me and I am appalled by what I came here to find.
Please let me know the following:
The answer to the above is - Yes, you did. We upheld our end of the agreement in full.
After your departure, you came back to me and asked for additional compensation than the agreement we had, based on your ideals that your company was valued higher than what you sold it for and believed you deserved additional money. You were dismissed and I explained to you that this is not how deals are made and you made this agreement, executed the agreement and we upheld every aspect of this agreement.
In regards to the Paypal information, you were repeatedly asked to transfer the account per the agreement to us and you kept providing excuses stating that the "phone number" on the account was disconnected already and you are having a difficult time doing it due to that. In addition, we closed crissic as that was the intention from the beginning and you were made fully aware of that prior to the execution of the agreement.
Several months later, you (with identical intend) came to us with an attorney and stated that we owe you money, an incredibly large sum that you were not able to justify. I repeatedly directly and via counsel, requested proof of these damages and if anything is owed to you personally, you will be compensated. This is an agreement that I still stand behind to this day should you be able to supply the requested proof of damages. In addition, we in good faith, agreed to pay your own attorney fees up to an agreed upon amount just to assist in expediting the resolution of this conflict, however when we requested a settlement letter - the amount came back as double what we originally agreed upon.
Skylar, I have never ignored communication from you and I would have expected more from you if you were disgruntled, however this came completely out of the blue and I can only conclude the intent is to distribute malicious statements about my companies and my person, your statements are incredibly frivolous. Your statements regarding myself equate to slander and your statements regarding my companies equate to defamation. You are incredibly immature and have always been since we began the process of purchasing your company, I have been lenient and kind by attempting to educate you as a person to help you, however as this point - this will be the only post that will be made from myself or any representative on this matter - I know you are abroad and overseas and I have every intention of handling this moving forward in an appropriate legal avenue.
-Ilan
The settlement agreement that you provided a "final offer" on August 20th was agreed to and paperwork was sent over as such, which was promptly ignored. My attorney produced multiple phone calls, emails, and letters to your council and every time council either did not respond, or said you were unavailable and never got back to us. There was a back-and-forth in July of the total valuation of the agreement, but the FINAL agreement was as to your terms.
If this offer still stands, I'd like to refer to the May 3rd 2018 letter including the following documents:
These provide credibility to the requirement of legal council to resolve with the IRS. The incurred legal fees are in question and had been requested to be recovered for. You agreed to a dollar amount, and when we agreed in turn you stopped responding.
Multiple calls have been placed including up through October to no successful reply. It has been a year and a half with no resolution.
oh my... SkylarM and Crissic.. names I havent heard for a long time.
Why reply to someone providing evidence without any yourself and attacking the person instead of refuting him point by point? Your first point had nothing to do with the allegations (failure to reimburse for lawyer) and clearly trying to muddy the water. Your attitude left me thinking you're an idiot or intentionally being obtuse. I guess you thought some response was better than no response.
QN has been fishy af especially since AR I'ma grab my popcorn side with OP and make like the Simpsons meme retreating into a bush
Put this on Netflix please.
Maybe we can get the Psychz hating guy to do the score.
Francisco
It does not follow that you upheld the agreement in full because you upheld 1) and 2) (even if true and were part of the agreement).
It seems like you tried to make a point about all the flexibilities you exercised when executing the agreement, which is great and all (if true). But that has nothing to do with the topic of the dispute.
@minuebyte How mature can you be to come on this forum and try to accuse someone of being immature? How can you assess someone's maturity? Are you the judge of maturity or something? After your above statement, i'm certain that you are in the wrong because one doesn't just personally attack someone if they're innocent... Now give the man his money and go grow some pubes or something.
I'm back for good motherf!ckers! WTF I can't stand someone shady ass not being man enough to live up to their end of the agreement. @minuebyte stop tickling your clit for once and man up. Do the right thing for once. This is why I will never do business with quadranet.
It's not clear to me why you continued to use Crissic's PayPal account for business transactions at all
so,we already got early drama nearly before black friday ?
Some entertainment while waiting - like adverts before movie starts.
https://www.law.du.edu/documents/aap/writing-tips-counsel-council-and-consul.pdf
The more you know..
I wanna see how this ends now..
Black Friday warmup
Can you actually "transfer" a paypal account? I'd be surprised if Paypal and their T&Cs let you go ahead and change SIN etc.. unless was the intent of updating the same individuals details. ??? Maybe Quadranet hands were tied..
It seems the whole Paypal transfer idea was a bad idea in the first place, was Crissis a 100% innocent in this? It doesnt sound like it, Crissis should have sold the company with billing as non-transferable due to Paypal personal account limitation (for whatever % that represented) and took a lower fee, so I can sympathy with their lawyers about not want to settle 100% of costs.,
Those disputes would have been fun to deal with.
popcorn time ...