An Open Letter to People, Traders, and Possible Traders of ProtoGroup, LLC and also to anybody coping with Mr. Christos Fotiadis:
I would like to start by declaring that I'm a former Board Person In ProtoGroup LLC. Our objective written down this really is to see those associated with ProtoGroup LLC, and/or Christos Fotiadis, of the serious economic situation of the organization and of breaches of fiduciary responsibility and feasible offenses committed by ProtoGroup’s creator and boss, Mr. Fotiadis. ProtoGroup LLC, its broker and practices are observed at 2043 West Belmont Avenue, Room 4, Dallas, IL 60618.
If you should be a, associate, merchant with outstanding bills, somebody who has supplied solutions as a swap for possession, are thinking about producing an investment in ProtoGroup, are thinking about creating introductions to possible traders for Mr. Fotiadis, or lending Mr. Fotiadis cash, you then should think about the info within this concept before making this kind of expense.
Like A former person in the Board of ProtoGroup, I had been hired by Mr. Fotiadis to assist develop the organization and also to represent the passions of all of the stakeholders in ProtoGroup last year. Among my responsibilities like a panel member was to make sure that the LLC account is kept informed of substance improvements influencing the organization as well as their expense. For greater than a year, the Board required that the notice be delivered to the LLC people informing them of the serious complex issues with the company’s belongings in addition to the monetary and legal debts experiencing the organization and Mr. Fotiadis individually. While Mr. Fotiadis (the boss) declined to adhere to this demand, the Panel required contact info for the account so we're able to contact the people immediately. Boss Fotiadis declined to supply associate contact info to numerous people, not only the BoD. Hence this really is our last work to try and contact the account to explain the current position of the organization as well as your expense.
Along with declining to supply associate contact info, Mr. Fotiadis blocked the BoD from doing its responsibilities by refusingd to supply numerous files and info the Panel required, as well as in reality, had a to examine pursuant to its part as associates of the account. The listing of files Fotiadis declined to supply contains but isn't restricted to financial claims, agreements, revenue documents, authorized steps endangered or submitted from the company, tax results, e-mails and also the disclosure of every other substance data that will possess a primary effect on the company. It's arrived at my interest that many people who've understanding of the damaged standing of the organization also required comparable info and all were rejected entry by Mr. Fotiadis. It's essential for one to realize that Mr. Fotiadis’ disappointment to provide the required data towards the Panel and People is, in and of itself, a break the company’s Running Contract, and of National and Condition Securities Regulations demanding complete disclosure to homeowners of substance data regarding such issues.
The previous General Advice and VP of ProtoGroup, Jason Lechter, had likewise obtained numerous demands in the Board for this same info. Like Mr. Fotiadis, Mr. Lechter likewise declined to provide the required files or Associate contact info towards the Board or even to additional people, stating he might just provide data the boss approved him to supply. Provided Mr. Lechter’s placement as General Advice, his rejection to identify the expert of the board within the boss has increased accusations regarding the level of his participation within the issues comprehensive within this notice.
However, the issues with ProtoGroup with Mr. Fotiadis don't stop here. The company’s only resource, a software device named ReGen, is imperfect, not functionally useful to clients, is precluded from being offered because of outstanding bills and Mr. Fotiadis’ disappointment to acquire correct certification for third party (integral) application, and much more. These issues were offered to Mr. Fotiadis in several Panel meetings as well as in memos and were overlooked.
Being an organization, ProtoGroup happens to be insolvent and it has severe impending appropriate steps and debt selections that may generate the organization out of business. It's my estimation that, on the basis of the amount of cash ProtoGroup lifted, the profits it probably produced, and also the minimum amount of cash it really allocated to creating its company, that it ought to be everywhere near to being insolvent. Actually, in my opinion the organization ought to be flush with money but is alternatively flush with debt. I'll detail below a number of my sights regarding how ProtoGroup probably achieved its present state:
Embezzlement
Our best estimation suggests that there around 80% of the cash committed to ProtoGroup remains unaccounted for. I've been not able to decide the way the great majority of the company’s resources were invested and Mr. Fotiadis has declined to remedy any and all official demands for files, spreadsheets, bank claims, financial statements and/or tax results that will clarify the serious economic situation of the organization. What's obvious is the fact that significantly more than $1,100, 000 grew up from traders or produced in profits from the organization. Within the 1 5 years because the Panel started producing questions, Mr. Fotiadis has supplied nothing to challenge the truth that around 80% of the cash that flowed through ProtoGroup was allocated to non-organization issues or on individual (non-organization associated) costs stated by Mr. Fotiadis or on luxurious journey, fits and features exclusively to Mr. Fotiadis’ advantage.
Actually I really believe it probable that Mr. Fotiadis employed the absent ProtoGroup cash to pay for his mortgage, resources, bills, travel all over the world firstclass and remain in luxurious resorts in locations like Asia, China, and Portugal to mention several without actually finishing the improvement of the company’s application and without acquiring enough revenue to maintain the company. Along with this, Fotiadis provides herself whilst the simple greatest consumer towards the organization, declaring back income because of him greater than $780,000 and back-rent (for what it's uncertain). Consequently of Fotiadis’ rejection to supply any proof to oppose these statements, I've every cause to think the company’s funds were abused and misappropriated by Mr. Fotiadis, creating him guilty of embezzlement of corporate resources. I've been left without any option but to documented him to some quantity of municipal and legal regulators and also to my understanding there's a minumum of one official analysis against him is underway along with other regulators have approached me and explained that they're “processing” the statements and contemplating inspections of the own.
Investor Fraud, Inventory Scam and Much More
Mr. Fotiadis and ProtoGroup curently have many suit judgments which have been gained and therefore are being attacked for cost. There's also apt to be more steps submitted in both National and Condition surfaces round the nation. I understand this since the first several judgments were mine. Two of the judgments I acquired were for scam and were passed down to ProtoGroup and also to Mr. Fotiadis individually with a courtroom in Va wherever ProtoGroup requested me to setup practices for that organization within my period therein 2009. Regardless of the truth that these obligations are “first in-line to become compensated by both parties”, I'm firmly suggesting that no body purchase ProtoGroup before performing substantial research and talking to me, another traders that I've had the opportunity to get hold of, and/or with Condition and National Regulators before doing this. Contact info for these regulators as well as for the several people of ProtoGroup that I'm in touch with is likely to be distributed around you upon request.
These acquainted with regulations may comprehend so just how uncommon and challenging it's to show and acquire a scam view via an actual test wherever there's account from both events. Scam costs are frequently ignored as “your term against mine” statements and therefore bring a higher-load of evidence.in Mr. Fotiadis’ situation, the costs weren't ignored and my statements were upheld against each ProtoGroup and against Mr. Fotiadis individually. You need to notice that it takes an overwhelming quantity of proof and account to acquire a scam view. A log of my test can be obtained for anybody seeking it – it's public info and that I will soon be pleased to supply it.
Also available are copies of additional lawsuits filed against Fotiadis and ProtoGroup, that are also a of public report. Our judgments may, for me, function as the to begin several buyer scam judgments that will hit the organization and Mr. Fotiadis individually. Using the chance of as much as $1million in fraud judgments possibly experiencing ProtoGroup, any buyer that places new-money in to the company will probably discover that it rapidly went the rear door in cost of a current view from the organization. Mr. Fotiadis regularly omits and misrepresents product data before and after cash is spent, basically informing any buyer what he thinks in those days may cause that buyer to create a seek advice from an overall total disregard for that reality or even the regulation.
People must particularly observe that Mr. Fotiadis was handed numerous possibilities during the last year 5 to deal with the issues facing the organization and herself individually. He's merely selected to not since he understands that experiencing his accusers and revealing the info they've been seeking brings his steps towards the lighting of evening and create a total shutdown of ProtoGroup and ruin his only income source. This closing is unavoidable given the conditions.
I believe that Mr. Fotiadis is hoping that by maintaining the people and traders “in the dark”, they all only will write-off their deficits and disappear. This seems to have been his style of procedure for that first 4 decades of the company’s lifestyle. Mr. Fotiadis went to great measures to locate cash to pay for his individual obligations and increasing legal expenses, actually planning as far as to making an “anonymous charity website” and sending the hyperlink to that particular website and seeking contributions via mail from his former acquaintances, buddies, household and visitors. As he's completed on numerous events, Mr. Fotiadis created these demands for the money without completely revealing all the substance data needed regarding the way the cash he was really prepared to consider could be invested.
I thought it to become my responsibility to all People in ProtoGroup to follow my own statements and also to inform everybody of the terrible scenario. The stark reality is that permitting Mr. Fotiadis to begin around with no responsibility for that cash he lost, the expenses he gathered, or even the cash he embezzled may motivate him to defraud and damage much more innocent people.
Concerning The company’s intellectual property, there's another issue that People ought to be conscious of. Anybody who invested in ProtoGroup just before 2009 (after I closed on using the organization) invested in a company which was organized merely like a “shell” which ProtoGroup itself had no possession within the application resources being constructed with the cash spent. Quite simply, traders and also require believed these were purchasing the possession of ReGen, that will be ProtoGroup’s only resource, weren't performing that whatsoever. After I attempted to verify possession of the particular resource before signing my contract, Mr. Fotiadis told me he individually maintained possession of ReGen which ProtoGroup was susceptible to a license agreement with him. This case, in hindsight, is specially troubling since I worry that experienced Mr. Fotiadis succeeded in creating a useful item - which he didn't - then an “exit” for that organization might have been in the mercy of Mr. Fotiadis. ProtoGroup may likely have experienced no state such an leave and Mr. Fotiadis might have been the only real “seller”. Mr. Fotiadis might have had no-obligation to pay for his unique traders something back even when the organization was extremely profitable.
I note this since included in my contract with Mr. Fotiadis, I required the privileges towards the application fit exclusively with ProtoGroup and never with him individually. Although he decided to achieve this and supplied me having a record of the move of the resource that's ReGen, whilst the majority investor in ProtoGroup, he might quickly rescind this kind of arrangement and abandon all the present people with nothing of-value. Should Mr. Fotiadis move the possession of the company’s application belongings back again to herself individually, he might abandon the homeowners and traders keeping only a clear layer of the business that's debt and law suits pending.
Extra steps are now being attacked against each ProtoGroup and Mr. Fotiadis individually when I create this notice and they'll truly have an effect upon your possession and opportunities. That's why I'm forced to publish this concept. It's my own objective to supply a means for anyone who experience they've statements to acquire just as much info as you can regarding these issues – to obtain it. And I desire that should you learn of additional traders or suppliers who may possibly not be conscious of these problems, and/or who're owed income by ProtoGroup or by Mr. Fotiadis individually, that you simply reveal this notice together.
You need to even be mindful that a number of another homeowners/traders have documented Mr. Fotiadis and ProtoGroup to Convey and National Regulators aswell since we genuinely believe that evidence helps legal charges in addition to civil actions. We're pushing everybody that has proof of Mr. Fotiadis’ individual or skilled violations to supply it towards the proper regulators evertying open to help their inspections.
If Mr. Fotiadis is really as harmless as he promises, he then ought to be prepared to react to this notice publicly and also to instantly supply every associate using the data required herein. Regulations compels Mr. Fotiadis in his part as boss to supply every associate with this specific info. Mr. Fotiadis is accountableto all the additional People of ProtoGroup and should supply answers regarding his misuse of corporate resources, his choices that led to the development of the worthless and unsellable merchandise, and his individual steps and inactions that resulted in scam judgments, extra impending lawsuit and also the company’s bankruptcy.
As previously mentioned, extra steps are now being obtained and there's info that you simply, like a Associate in ProtoGroup, LLC, must have if you desire to possibly participate in these steps with other People or begin your personal motion within an energy to find some type of restitution.
Please feel free to make contact with me via the e-mail address below. To aid you, I've organized a record detailing the overview of offenses that in my opinion Mr. Fotiadis and ProtoGroup are responsible of along with a body of proof to aid the reality. I'll be happily share that info with those who are able to show that they're homeowners, people, and/or borrowers of ProtoGroup LLC.
I regret being forced to tell you this case utilizing a public community but Mr. Fotiadis truly quit me no additional option. And that I regret that I had been not able to do more to see and give you support.
Respectfully Yours
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