Globill Letter

[Ms Naughty]

I checked Board Tracker, it seems that numerous people have received a letter, however I think this one may have gone out to the affiliates only.

However much they owed me, it wasn't that much and I've moved on.

It does raise questions as to what is going to happen with the "Non Guaranteed Settlement" offered to globill paysite owners.

I had another look at the settlement options offered in the letter.

The civil case brought by the techs against the husband and wife is due to meet in a Californian court in July 2004.

If they are now claiming bankruptcy, it does sound as though the techs will be unable to recover any money and that the "Non Guaranteed" claim of 110% is not going to happen.

Just speculation, of course. It would be nice to know something for certain.

Just to take a happy little stroll down memory lane, here's what the settlement letter had to say about what happened to the Globill money:

The originators of GloBill were a small team of programmers (hereinafter
“programmers”) that my law firm represents.1 These founding programmers included some of
the technical persons you were in contact with on a daily basis through site activations and
support. These programmers are presently in control of what is left of GloBill and several related
companies and are the individuals bringing you this settlement package.

When GloBill was in the process of being created, the programmers, acting on what they
allege was their CPA accountant’s advice in order to supposedly achieve various tax and related
business benefits, authorized the accountant to become the managing member of GloBill. In
granting their accountant this authority so they could concentrate on the technical aspects of
running the company, the programmers retained options that enabled them to exercise their rights
to take over the management and control of GloBill. The accountant named himself CEO and
installed his wife, also a CPA, as Chief Financial Officer and Vice President of GloBill
(hereinafter collectively referred to as the “CPAs”).

Several years after the company was formed, the programmers discovered what they
allege to be massive financial improprieties committed by the husband and wife CPA team.
These alleged improprieties were effectively hidden by the complexities of GloBill’s intricate
accountings maintained by the CPAs. When the alleged improprieties were uncovered, the
programmers exercised their options to gain control of GloBill and filed a lawsuit against the
CPAs. The programmers allege in their claim that the CPAs misappropriated approximately 1.6
million dollars from GloBill, the majority of which constituted Webmasters’ reserve funds, and
committed a wide assortment of other fraudulent acts to undermine the viability of the company.