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.
Written admissions by Starnet's management. No company will admit to serious problems - in writing - unless it was true. We have many more coming up, and we will also publish thousands of exclusive documents that will prove what is really going on at Starnet! It?s pretty clear we are dealing with CROOKS and incompetent and irresponsible people.
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The 68-page search warrant explains that the police are also investigating alleged offences "of money laundering, all using the Internet." It sets out eight counts of Criminal Code violations.
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Nesbitt Burns private placement deal for $ 30 million is dead! That is why they are selling the porn business!
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Starnet Investigation Expected to Result in Criminal Charges, Police Say
"Charges are definitely pending,' Vancouver Police spokeswoman Anne Drennan said in an interview.
READ MORE ABOUT IT HERE!
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Starnet going down a bit more after 140 police officers raid them!
Very interesting links:
nationalpost.com
vancouversun.com
vancouversun.com
the-adviser.com
investrend.com
wired.com
vancouverprovince.com
vancouversun.com
globeandmail.ca
stockhouse.com
quote.bloomberg.com
01e9d53c62db767f6c77db54d&view=story&version=marketslong99.cfg
www2.mybc.com
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READ THE POLICE STORY HERE:
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Something to think about
Friday Sep. 3, 1999 -- Starnet is a time bomb ready to go off any time. Only day traders, who are compulsive gamblers, "stick around" desperately with the company, to see what is going to happen next. All the serious investors have left, and they are not likely to come back. Why take the huge risk to deal with a crooked company when anything can happen to them any day? [read more...]
A peculiar classified add in Vancouver
Wednesday Sep. 1, 1999 -- THE COMPANY: Shady company looking for auditors! Company with huge problems looking for auditors, any auditors, we don?t care, as long as we can find someone in a hurry. COMPANY BACKGROUND: Our company has a lot of good connections with the Hells Angels, drug dealing, organized crime, criminals, hookers, strip clubs, money laundering, drug addicts. [read more...]
Jack Carley's New Toy?
Wednesday Sep. 1, 1999 -- Jack Carley has been very busy lately, selling his shares first, then dealing with the police, the lawyers, arranging the moving to Antigua, probably looking for a new job. All work and no play. With all the money he now has from the sale of all these shares, we think Jack should start to enjoy his money, and that?s why Gambling Magazine has located the perfect toy for him. [read more...]
Starnet's auditors drop them
Sunday Aug. 29, 1999 -- Starnet Communications International Inc., a company under investigation for alleged gambling and pornography offenses, said its independent auditor Ernst & Young quit. Neither of Ernst & Young's financial statements on Starnet in the past two years have contained adverse opinions or disclaimers, Starnet said in a U.S. Securities and Exchange Commission filing. The company operates gambling and pornography sites on the Internet. [read more...]
SPECIAL REPORT - On the Information Deposed to Obtain a Search Warrant
Monday Aug. 30, 1999 -- Gambling Magazine has the story behind the complete police document used to obtain the search warrant. According to Starnet's latest press releases, you'd think it was business as usual, as if nothing much has happened. Chief Executive Officer Mark Dohlen continues to dole out half-hearted attempts to placate angry investors worldwide, and says that Starnet remains fully operational. "We expect no further interruption of our service to customers," he says. However, the search-and-sezure raid and its aftermath will have international implications. [read more...]
Mark Dohlen?s latest conference call!
Thursday Aug. 26, 1999 -- Well, thank you very much to all of you. It was getting a little bit too hot in Vancouver with all these cops breathing in my neck, so I decided to have this conference call offshore, that?s real cool man! I was thinking to have it in Antigua, but I can?t find my passport! Hope the cops didn?t take it! And by the way, these guys are terrific, they interviewed me for three days straight! That?s something, they must think I am the greatest! I even signed an autograph, on my deposition! [read more...]
A quick summary of Starnet?s problems:
Thursday Aug. 26, 1999 -- There is a connection between Starnet, the Hells Angels, and what police say is the biggest investigation into drug dealing and organized crime in British Columbia history. We are dealing with criminals and organized crime. Mark Dohlen and Ken White are also driving Harley Davidsons like the Hells Angels. Are they members? [read more...]
The lawsuit against Starnet for $ 1 billion is coming out any moment!
Thursday Aug. 26, 1999 -- Gambling Magazine was told that the statement of claim could be ready today. We were also told that Las Vegas Casino Inc. is determined to make Starnet pay a very high price for everything they did. [read more...]
Exclusive e-mails from Ken Lelek sent from Starnet
Wednesday Aug. 25, 1999 -- Many very reliable sources inside Starnet confirmed that Ken Lelek is Starnet?s biggest stockholder. He also owns a boat with Paul Giles and had or still has his office at Starnet. It?s clear that Ken Lelek is involved in the management of Starnet. In this case, he had some pretty good intentions to help the licensee, but Jason King destroyed everything, and did more damage to Starnet than any other staff. [read more...]
Another interesting Starnet story
Monday Aug. 23, 1999 -- News...Hell's Angels Involvement? Starnet warrant reveals early Robinson link. Perhaps the most interesting name to pop up in court documents for the search warrant of Starnet Communications International is that of Lloyd Robinson, a significant member of the Hell's Angels in British Columbia, the controversial motorcycle club's Canadian stronghold. [read more...]
Starnet Running "Illegal Game Servers"
Saturday Aug. 21, 1999 -- Starnet?s own system administrators admitted that they were running the "illegal game servers" in Vancouver to supply a faster connection to a few favorite licensees. They also admitted that the child pornography material was on their servers. [read more...]
Report of Link Between Starnet and Raid on Premier's House
Saturday Aug. 21, 1999 -- The Vancouver Province reported the connection between Starnet and the North Burnaby Inn, which had applied for a casino licence and was central to the raid on the premier's house, lies in the list of shareholders of both operations -- who have also been linked by police to the Hells Angels. [read more...]
Starnet Police Raid Search Warrant Documents
Saturday Aug. 21, 1999 -- Search warrant documents indicate the police believe Starnet was not only involved in illegal gambling and bet-taking, but also possession and distribution of obscene material and child pornography and possession of the proceeds of crime. The raid immediately triggered a massive panic sell-off of the company's stock, resulting in the largest drop on U.S. markets of the day. [read more...]
The evidence that could bring STARNET down!
Saturday Aug. 21, 1999 -- Email from Starnet regarding the taking of bets from Canadian players. [read more...]
Worst software of the year: STARNET
Thursday Aug. 19, 1999 -- Starnet has admitted that their systems are down, far too often. Jason King is well known for not telling the truth and for promising things he has no intention of delivering, it?s pathological with him. His admissions do not reflect the true situation which is much worse. [read more...]
How does Starnet "steal" money from its licensees?
Tuesday Aug. 17, 1999 -- Very simple: by running more than one accounting system, and cooking the books! Here is just one sample of many. [read more...]
Hard evidence of fraud and double accounting at Starnet
Tuesday Aug. 17, 1999 -- Starnet had the bright idea to start business relations with Las Vegas Casino Inc. by stealing over 85% of all the money. It took Las Vegas Casino Inc. months to recover this money, and Starnet only decided to give it back after they got scared the auditors would come in to check their cooked books. [read more...]
Names of some of the parties getting sued:
Tuesday Aug. 17, 1999 -- Starnet Communications International Inc. Starnet Communications Canada Inc. Softec Systems Caribbean, Inc. EFS Caribbean Inc. EFS USA Inc. Jack Carley, Chairman of the board and chief financial officer., and many more. [read more...]
How Starnet "steals" money from its licensees?
Monday Aug. 16, 1999 -- Very simple: by running more than one accounting system, and cooking the books! Here is the hard evidence: Starnet abusively terminated the license agreement with Las Vegas Casino Inc. on July 23, 1999, and no client could log into the software after that date. As you will see, the transactions are still going through, and Starnet is pocketing (stealing) all the money. These receipts are issued by Starnet. See for yourself here! [read more...]
Email from Starnet Admitting Their Software Crashes Every 2-3 Hours
Saturday Aug. 14, 1999 -- Starnet admits their software crashes "about every 2-3 hours" - not bad! In reality, most clients complained the longest they could ever play without getting kicked out was 15 minutes. We are talking about the software crashes, then we have the server crashes. Each time Starnet?s systems crash, everybody gets kicked out, often the hands and the money are lost. [read more...]
Two licensees will file criminal charges against Starnet?s management
Monday Aug. 9, 1999 -- A reliable source told Gambling Magazine that the Las Vegas Casino Inc. lawsuit against Starnet will be filed any moment now. A large number of big boxes, full of evidence, had to be sorted out first, and the time this would take was under estimated. [read more...]
Starnet should start telling the truth, instead of playing the ostrich!
Saturday Aug. 7, 1999 -- Starnet, (EFS Caribbean Inc.) massively over billed thousands of clients who got absolutely nothing in return. Credit cards were debited without the clients knowing anything about it, and without their approvals. Many were debited on numerous occasions for thousands of dollars. [read more...]
Jack Carley leaving Starnet?
Friday Aug. 6, 1999 -- Jack Carley not sure if he wants to continue to work at Starnet! Claude! I'll have someone look into these complaints right away. I do want to mention that this client "Ken Baker" really isn't a happy camper as I must see complaints from him on a daily basis. [read more...]
Evidence that Starnet lied to the stockholders and potential investors
Tuesday Aug. 3, 1999 -- Here is the letter from the State of Nevada Gaming Control Board. This letter clearly demonstrates that Starnet, and in particular, Mark Dohlen, lied to the stockholders, and potential investors, on numerous occasions, and also in the conference call with the stockholders a few months ago. [read more...]
Proof of Starnet Either Lying To Investors or Cheating Licensees
Tuesday Aug. 3, 1999 -- Starnet is either lying to their investors or they have massively cheated Las Vegas Casino Inc. Here is the document that was published by Starnet in their private placement offer done by Nesbitt Burns Securities Inc. [read more...]
Starnet's Underhand Secrets Revealed - By A Member Of Staff!
Tuesday Aug. 3, 1999 -- How long should online gamblers have to put up with this kind of disgraceful treatment? They want an honest service. They want a reliable service. If clients are risking good money, they must be able to have complete confidence in the organization with which they are dealing - and they don't deserve, ever, to be short-changed. [read more...]
STARNET SUED BY ANOTHER LICENSEE: CLAIMS THEIR SOFTWARE HAD A VIRUS
Sunday Aug. 1, 1999 -- 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
Sunday Aug. 1, 1999 -- 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
Sunday Aug. 1, 1999 -- 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.
Sunday Aug. 1, 1999 -- 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
Sunday Aug. 1, 1999 -- 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
Sunday Aug. 1, 1999 -- 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"
Sunday Aug. 1, 1999 -- 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"
Sunday Aug. 1, 1999 -- 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
Sunday Aug. 1, 1999 -- 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
Sunday Aug. 1, 1999 -- 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.?
Sunday Aug. 1, 1999 -- 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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Here are just some of the topics we will cover in this report in the coming days:
How Starnet is lying and cheating their investors, and even publishing some totally misleading and fraudulent figures.
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.
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Gambling Magazine will reveal the truth,
all the truth, and nothing but the truth.
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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
Copyright ¸ 1999 Gambling Magazine |
