In about May I was approached by a company Phenix Digital,
Mr. Michael Garner
[email protected]
Phone: 1-615-866-5185 // 1-615-866-5186
Fax: 1-615-658-7785
40 S Main Street, Memphis, TN 38103
One Commerce Square, 10th Floor
To purchase shares I hold in Multicast Interactive at $10.50 per share. I hold 7300. They sent an agreement to purchase for this transaction.
After sending agreement to sell, their agent, Michael Garner called and informed me the shares were restricted and that I should use the services of a transfer agent to lift the restrictions. They suggested I use the services of Senaca Stock transfer agents. Www.senecast.com, based in Bolder, Colorado (All these emails can be forwarded to you. To get exact dates and correspondence).
I contacted Seneca, and was talking to a Mr Michael Peters, Tel 1 303 835-7379 He directed me to a site to verify the the legitimacy of Seneca as a Stock Transfer agent and to get the registration number as a legitimate transfer agent. (I cannot recall that site now, and the details were given on the phone.)
The address given on the site was 1739 Broadway street, suite 210, Boulder, Colorado, USA. Fax 1 303 835-0623
Mr. Peters sent me an invoice for $650 to lift the restriction. $ 350 of that I was told was for insurance fees.
The invoice was dated 16 May
The bank account I was instructed to make payment to was.
Bank Name: Banco Nacional de Costa Rica
Bank Swift: BNCRCRSJ
Bank Address: Avenidas 1 y 3 Calle 4 San Jose Costa Rica
Beneficiary Name: WI FI Continental Services S.A.
Beneficiary Account Number: 100-02-087-601195-4
I questioned why the bank account was not where the Company was located.
There was an explanation that that was the tax efficient way to do business in the USA, as the tax rates in Costa Rica are lower, and that was where the company was actually registered.
I made a transfer of $ 650 on June 26 June from Standard Bank South Africa to the account that appeared on the invoice from Seneca.
A few days later I was called by Mr. Michael Garden of Phenix digital to advise me that the restrictions of the Multicast Interactive shares had been lifted, and that there were warrants on the shares that could be realised at $3.25 per warrant, and as they were purchasing the shares at $10.50 per share it would be to my advantage to realize the Warrants. There were I was told that Phenix was allowed to put up a 50 % margin, which they would do to assist me to realize the warrants. The revised contract from Phenix is dated 18 July.
I received an invoice from Seneca dated 18 July for the conversion of the Multicast Interactive warrants to shares.
I was to pay $ 24,375.00 to Seneca to convert the 7500 warrants at $ 3.25 per warrant
This payment was made on 24 July from Nedbank, South Africa to the Bank account in Costa Rica.
Several days later I was called by Mr Henry Moore of Phenix Digital (Senior to Mr Garner and was told that the payment of $155,400 had been made, but there seamed to be a problem with the transfer and he was frustrated by Mr. Michael Peters and if payment could not be concluded Phenix will need to cancel the contract.
I called Mr. Peters at Senaca and he confirmed that the funds were impounded by the Internal Revenue services until my tax status was verified. He could not provide me with any details or correspondence from the Tax authority. I was sent a Telegraphic transfer to show the transaction was made. It has a stamp from Well Fargo dated 3 August.
I was told the process for the IRS to clear the funds would take 6 weeks.
I emailed Mr. Moore at Phenix, but the emails bounced. Phenix was no longer contactable.
17 August I called Mr. Peters as emails I was sending to him were bouncing too. I was given an alternative email with an explaination of the web address being "Hijacked"
On September about the 20th I emailed Mr. Peters at Seneca (to inquire on when the funds will be received.
He called me back on Monday 24 September to say the funds had been released.
I receive an email with a copy of a wire transfer with a Wells Fargo Stamp dated 17 Sept
On 25th September I received this email from the address
Hm. [email protected]
Addressed to [email protected]
Dear Mr. Richards,
Thank you very much for getting back to me concerning our client Mr. Ian Graham Cromarty. We understand the problem that the intermediary Banks are having with the disbursement of our clients’ funds. I am a little bit upset that Mr. Peters did not notify our office or our client concerning his business travels to California. I will advise my client of the delay and the transfer of the funds as per your advice.
I have asked my bank to lok for the funds and they report that there are no incomming funds to my account as stated on the Telegraphic transfers.
I now suspect that Phenix and Senaca are operating together to scam investors.
I will be gratefull for assistance to recover the funds that I have sent as payment for the services which do not appear to be sincer.
I there was indeed a purchase of the Multicast interactive shares, then I will want the amount that was agreed to be paid in the purchase contract with Phenix Digital.
I can forward all supporting documents.invoices, contracts, email should this be required.
Yours Sincerely
Ian Cromarty
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