Nightmare on web hosting industry – WebHostPlus scamsOpen topic | June 4th, 2007 | 2 Comments
To elaborate that this is not about hurting a company’s reputation, this is about revealing truth about a situation that can affect your life and Business. This is also a chance to learn about not making the same mistake. Several companies have fallen for the scam and people got hurt. If your business is connected in anyway to WHP, this is a good time to learn about a potential nightmare brewing.
Webhostplus foundation started with 9netave, sold to concentric. The investors took most of the money, the owners of the company were not happy about not being able to pocket most of the proceeds from the sale.
The 2 owners Mike and Alex decided to convince a Investor to start up another company called DataPeer. This time mike and Alex pocketed most of the money, ran the company into the ground. Since the Investor was not on site and they were able to “displace” most of the equipment, and then the bankruptcy court could only sell what was actually found. I don’t know what type of bankruptcy they did. The investor is currently in court with Mike and Alex, still dealing with the DataPeer event. Somewhere in the Mix 3wCorp was thrown in as well. There was quite a bit of postings in F******company com site, the local news paper looking into the event and asking questions at the time.
DataPeer gave clients a day notice to all the clients to come and get their equipment and people just were in absolute shock, lost a lot of business. You can search WHT on that event and all the people trying to save their business when it all went black without warning. Of course the owners Mike and Alex, along with the office crew “we only work here” and used that as the cover of the bankruptcy. When they filled out the 1099`s when they were bankrupted, everyone got slammed with tax issues.
A few weeks went by and Webhostplus popped up like a zit before a hot date. Same people with scratched off DataPeer equipment got a head start because they didn’t have to buy servers, routers and startup hardware. . After a few months the crew moved back into the DataPeer original space and was back at home again. Of course they get a chance to find another poor investor to start doing a work over and raping him for money. The Investor this time was able to provide quite a bit of backing so they decided to start buying companies. This is where the fun starts and people will start loosing their livelihoods. Don’t forget as well in the background the owners are padding their pockets again. The employees got the deep end of the deal as well with no paycheck for a few months, and DataPeer policy was to pay all employees off the books.
John and Mike Gold, Lenny are the front-end to wheel you in, mostly to assure that you will be happy, and will be treated like family. Then once the process starts, it will become, they are not the owners, talk to them. I was told they will never try to contact. When you do get a hold of the owners or in house lawyer, the art of stalling is perfectly set, the excuses and its your fault all written down like a play book.
The first Victim was Dinux, Moved in April 2005 they took a company that was successful for many years, within hours of taking it over, ripped it apart and tortured the clients for several weeks. WHT has a lot of postings on this event as well. The owner got 1 initial down payment and never got another dime again. WHP stalled, gave excuses for a year to avoid payment while collecting from the clients still . The owner was able to survive because of a side business still in operation 1 year later 90% of the clients have left. WHP hired one or more employees of the original company and currently the paycheck stopped, due to lack of funds they have been let go. These people got paid off the books as well, WHP will end up screwing them when they send out the 1099`s. The owner currently has a law suite open with WHP owners. Court – Pending
The second victim American Data Center Moved in OCT 2005, supposed to have been a large deal client, with WHP buying the company. They got jammed up with XO communications and WHP convinced them to move into their facility. Not too much Information available on the details, but the owner started to see the scam and without full closing of the deal to buy the company, Webhostplus took over his accounts, very little money was exchanged and from talking to other people, his wife has cancer and when WHP took over the clients, this stopped his income, his medical bills are out of control, lost insurance. He just about lost his house, his car got reposedand he actually had no food for his family. Due to the lack of funds as well his credit was destroyed in the process. The owner here had a successful 10-11 year run and WHP again destroyed this company. WHP currently is still taking his clients income, no payments being made. Lawsuit pending No other info was available.
The third victim Dezines, this was a small acquisition, another case of the owner getting money down, payments stalled and the owner is getting the usual runaround. This is another case of the poor clients getting hurt. WHP obtained one of the employees to maintain the client base, currently paycheck stopped and let go. The employees were paid off the books. The owner is currently waiting for his money and as expected very unhappy with the deal. No information on law suite or if he has filed anything.
The forth victim managed.com . WHT has postings on this event as well, and this is another example of the owner getting 1 check, and WHP has stalled to make payments. WHP is collecting money from the clients still while making no payouts. The clients in this case was also slapped around with a silly stick, and 60% of the company was lost. The owner of the company has another business was able to hang in there while WHP kept the income and stole another company. The owner has filed a law suite and no other information is available. This was a long successful business which was annihilated by WHP.
The fifth victim 1planhost, another company that was running for many years, very successful. The move to the WHP facility destroyed the business reputation, some clients were down for a week. Once again the owner got some money as a down payment and nothing since. The owner in this case, his life was destroyed by WHP. Everything that he has worked for is gone. Not too much details on size of client base. But more than 40% of the client base was lost. Law suite pending.
The sixth victim Netbunch, This was one of those companies that was actually fairly large and successful. Once again, there was many clients who ran to the hills on this one as well. The owner got some money, at the end of the day with all the cancellations, he will not get what was signed on paper. The many years of hard work to hopefully sell the company and get a nice chunk for it is gone. WHP stalling payments, giving excuses to not make payments cause clients have left. This is one company I could not get a chance to speak to the owner, just info from who was able to have knowledge of the situation. I was told the owner was very upset about how it was handled. No info on court, no info if he filed. More than 50% of the client base was lost.
Another Investor has pulled out of the WHP deal, I’m sure he’s going find out the hard way like everyone else has. A couple months ago in May, employees paychecks stopped, people were working on hope of getting paid. Many left because they had no choice to get a job that provides a paycheck. Many of them still have not gotten paid, waiting. Now that the staff is just a skeleton crew, those that are still there getting paid off the books. The people’s lives are destroyed once again by the owners of the company. All the information here was given by actual people who are involved with the company, clients and those who have fallen for the scam. You can also Google this information if you look up the proper key words. The long time WHT readers know who from WHP post in here, the constant nick name changes, the style of writing. It would be moot for them to reply since the information is based on their own revealing it. The owners that got hurt would love to something posted, it would aid them in court.
Now I have to admit, I find it hard to conceive how they keep getting away with not being put in jail, criminal investigation. I’m not even going to touch what the IRS would find. I imagine once they get in there to do an audit, they will find a lot of ”mystery” spending and false income. WHP throwing out 1099`s left and right to try to justify the money, the employees will get hurt even more at the end, most people who get paid off the books don’t track their income. I do know that all the employees want to be on the books, and get standard health care for their families.
The owners who sold have worked very hard to get their business large enough to sell, make money and to see it all shattered destroyed with no chance to recover is something that no one should go through. It actually puts tears in my eyes to talk to some of these people, telling me they can’t even feed their kids, while they were supposed to be celebrating the sale of the company.
“I expect another DataPeer event to come very soon, another company to appear like a zit and it will start over again. Mike and Alex in their million Dollar homes laughing all the way to the bank. It’s nice to live in Edgewater NJ. Karma will get them one day.” said WHPInvestigator on WebHostingTalk