Foundation Capital Partners Inc., is a company affiliated with Capitalwerks, LLC. Mr. Ziya 'Eric' Arik was - in April - a Commercial Account Manager with Foundation. He authored a term sheet on Foundation letterhead detailing the basis on which Foundation would try to fund a US$2,300, 000 mezzanine debt facility for our company and requested a US$25,000 deposit fee.
The deal was that Foundation would limit its fees to US$9,500 for trying to fund the deal, and if it was unsuccessful it would refund the difference. It is common for funders to request larger fees to avoid potential clients taking a financing commitment and 'shopping it'. Had Foundation made a commitment and our company not taken it, the deposit difference would have been forfeited and our company understood that very clearly.
In August Foundation said that it would not fund our deal, and since that time we have been trying to recover the deposit difference. We have been stonewalled at every turn, from unreturned phone messages and faxes, to uncooperative employees of Foundation and affiliated companies.
It seems that Mr. Arik has been involved in this type of problem before, as has the major principal of Capitalwerks - there are many internet references that can be seen by Googling their names. Obviously this is the 'modus operandi' for this group of companies and they should be avoided at all cost.
Michael
Surrey, British Columbia
Canada
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