SPECIAL COVERAGE OF STARNET'S HUGE PROBLEMS
A litany of lies and a dossier of deceit
Gambling Magazine has been flooded with requests for more information on the Starnet issues since we started covering these cases. We regret that we cannot answer all your calls and e-mails, but we have a special coverage of the legal battles that will heat up. Many Readers also wanted to know if it is safe to use their software, and many investors would like to find out the truth about their investments. We will give you a lot of answers and show you some exclusive documents. Please stay tuned for this special coverage that will be updated regularly.
IMPORTANT: Reprinting any of Starnet's articles is strongly and happily encouraged, as long as they are unedited.
Here are just some of the topics we will cover in this report in the coming days:
We will show you the e-mail from the Chairman of the Board and Chief Financial Officer Jack Carley where he expresses serious doubts about whether he will stay with Starnet.
How Starnet is lying and cheating their investors, and even publishing some totally misleading and fraudulent figures.
How thousands of clients are over billed on their credit cards. Many, ten or more times. It took Starnet many months to issue the credits, as they did not want to deduct these "fake" sales from their books, as it would reflect negatively on their earnings. This problem has been going on for a few years.
Tens of thousands of clients could not log in to play because of a dispatcher problem which was a permanent issue for over a year.
The day Las Vegas Casino Inc. started using Starnet's software, all the servers went down on their knees. The system administrator had to reboot the servers every five minutes.
We will tell you how Starnet is cooking their books in some major accounting frauds. How they overstate their earnings to defraud investors. Why the SEC (Securities and Exchange Commission) will need to get involved to protect these investors before it's too late.
How Starnet steals the vast majority of sales and money from their new licensees, starting from day one.
Probably the worst support team on the Internet, if you can call this support:
* Three thousand outstanding e-mails
* Average response time to answer them: three weeks
* Clients knew more than Starnet's staff
* Had to wait 45 minutes to talk to an incompetent person
* Often, only one person to look after all the licensees and the pornographic business also run by Starnet.
Tens of thousands of clients getting kicked out in the middle of their games. These bugs have existed in their software since day one and were never fixed, clients often lost their hands and their money.
The oldest system administrator in the place turned off the transaction server as he did not know what it was there for. No credit card could be processed at all.
Clients who won money have to wait months before the credits or the checks are sent out by Starnet. They are quick to take the money and many times over for the same transaction, but very reluctant to issue credits or checks as this would reduce their earnings. Some clients were not paid by Starnet for periods up to six months and two to three months was considered "normal".
Clients complained that Starnet's checks bounced.
How clients got ripped off in the Video Poker games.
The accounting figures of Las Vegas Casino Inc. never balanced once These were supplied by Starnet.. This was and is a huge accounting mess. Ben Wong, Starnet's accountant, said that their systems were so bad that their new internal auditor told them they could not be saved, all the programs had to be completely rewritten. Each month, it takes Starnet about four weeks to come up with the figures as there are so many irregularities.
When asked if their outside auditors never complained about all these irregularities, Ben Wong said: "We are lucky, they never looked at these figures, they are only interested to know what happens to the money after it comes in."
When Ben Wong was told that they were cheating their licensees by charging them for items that never existed, he said: "Yes I know, but they will never find out."
Margaret Carley (Jack Carley's wife) and Ben Wong admitted that none of their programmers had any experience whatsoever in accounting, e-cash, credit card processing or banking, and they did not know what a reconciliation was.
Starnet admitted that their software had so many bugs it would take too long to fix them all, so they decided to spend their time on their new version which won't be released probably until next year, and that promises a few new bugs.
When questioned about the integrity of their systems, Ken White, system administrator, said: "Nobody fuck around with Starnet, we are bad people, we will kill him and bury him in the back yard" (the programmer). Talking about their licensees, he said: "It's not so easy to cheat our licensees, they are like us, all crooks themselves."
When Starnet was told to stop cheating its licensees, Margaret Carley (Jack Carley's wife) said: "We have to take the sales somewhere, and we take them where we can."
Ken White, the system administrator, after being told that Starnet was cheating Las Vegas Casino, said: "Yeah, that's why all the management is driving new cars."
We will tell you why Starnet did not keep any records whatsoever on "Free Ride," the game where bettors can win up to $ 300,000 in one game. No betting history at all was kept on the game with the biggest exposure for the licensee, coincidence? Not at all! They keep betting histories when people play 25 cents but not $ 300,000!
You will discover the $ 300,000 rip off on free ride, and the one for $ 700,000 on the sports book. Clients are getting cheated every day with that.
We will tell you about the man in charge of all their operations (worked as a bouncer in a gay club before).
We will explain why they are finding new "Mickey Mouse" licensees as fast as you can buy an off-the-shelf company. Why most of them don't pay the up front fee.
You will learn why their licensee, "Casino Land" went broke, and many others, and plenty more on the way.
You will know about their "illegal game servers" kept in Vancouver, to supply a faster connection to a few favorite licensees. This was revealed by their own system administrator. That is probably why they have huge holes on the floor, in their servers' room, and a door as thick as a bank's strong room - a tank would be needed to knock that door down!
Plus much more, and thousands of clients' complaints.
These, and what is coming up, are not stories, they are facts, and we can easily prove them with some hard evidence and a large number of written admissions by Starnet's management. No company will admit to serious problems - in writing - unless it was true.
Gambling Magazine will reveal the truth, all the truth, and nothing but the truth.
STARNET SUED BY ANOTHER LICENSEE: CLAIMS THEIR SOFTWARE HAD A VIRUS
Gambling Magazine has uncovered yet more damaging material of interest, relating to Starnet Communications International, Inc. (SNMM). Earlier this year on June 10, 1999 a Writ of Summons was filed in the Supreme Court of British Columbia, Vancouver Registry No. C992955. [read more...]
Starnet Sued By Ex-President For Failure To Deliver Him 250,000 Shares
Yet more legal action against Starnet has been initiated by another Vancouver businessman. Jason Bolduc first entered into a contract of employment with Starnet in May 1995, as Technical Director, later promoted to Starnet's Canada President. [read more...]
More trouble for Starnet
Right now, Starnet is embroiled in another lawsuit, brought by Home Gambling Network. Home Gambling is suing the company for infringing on its method patent. The patented technology enables Internet gaming from a remote location in a live casino game, involving on-line debiting and the crediting of wins and losses directly to a player's financial institution. [read more...]
Interesting question for Claude Levy and Las Vegas Casino Inc.
Did you ever buy or sell shares in Starnet? "I have never, ever, directly or indirectly, bought or sold a single share in Starnet (SNMM) either personally or through any company, or third party, and I challenge anyone to prove the opposite" [read more...]
LAS VEGAS CASINO, INC. ANNOUNCES WARNING TO INVESTORS
Vancouver, British Columbia, July 28 / -- Las Vegas Casino, Inc. announced that Starnet International Communications (OTC Bulletin Board: SNMM) (Berlin: SNM) "(Starnet") has underway a private placement offer in the US which is believed may involve an attempt to raise substantial funds believed to be in excess of $ 25 million. [read more...]
LAS VEGAS CASINO, INC. ANNOUNCES FURTHER CLARIFICATION
Vancouver, British Columbia, July 28 / -- Las Vegas Casino, Inc. would like to confirm that an article reference in a press release from Starnet Communications International, Inc. (OTC-BB: "SNMM") ("Starnet"), issued July 27, did not make clear that HLI was also the name used as a previous reference by Starnet in a misleading and fraudulent e-mail sent to thousands of clients by Starnet. [read more...]
LAS VEGAS CASINO, INC. TO FILE COURT DOCUMENTS "WITHIN 48 HOURS"
Las Vegas Casino, Inc. issues new press release with regard to Starnet Communications International Inc. and confirms forthcoming legal action "within 48 hours". [read more...]
"If I could I'd fire them all and start over"
Very interesting e-mail from Starnet. Starnet must have some huge problems if all the staff should be fired, according to Jack Carley, the top man in the company. [read more...]
Shady People At Starnet
Interesting article that confirms that they are very shady people working with and inside Starnet. What about their lies concerning the Nevada Gaming Control Board. [read more...]
STARNET SUED FOR ONE BILLION DOLLARS
Las Vegas Casino, Inc., an Internet-based online casino company that is Starnet's biggest licensee for its 'turnkey' casino games, is suing Starnet Communications International, Inc. for $1 billion. [read more...]
Who Is H.L.I.?
Many readers asked who was H.L.I., the name that Starnet used as a reference in their misleading and fraudulent e-mail they send out to thousands of clients. HLI is probably Starnet's only friend in the industry. [read more...]
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According to a reliable source in Nevada, the Department of Justice is after Starnet, and the SEC is investigating them.
Editor: Editor@GamblingMagazine.com
Publisher: Publisher@GamblingMagazine.com
Telephone: U.S.A. (212) 208-4414
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