Compact Connection Fraud and Scam Operation
To all who frequent the CCI/TSIG chat board. I have been lurking on this chat board since April 1998, and I have seen all of the issues brought up. It seems to me that everything that is said about Compact Connection is an out right lie. I am in the position to speak about this because I used to be a dealer for Compact Connection and marketed actively on the Internet through our website.
Yes, we did have great success, but CCI failed to deliver any orders for our customers. It was worse than that because they would actually bill these poor people. I was also just made aware that many months after not receiving the Compact Disc, some customers had large credit Card charges by local newspapers that CCI would advertise through. I am convinced that the whole CCI operation is a major scam operation and they are not in the business of delivering music, just taking investor money. I am the leader of a large group of former dealers dedicated to putting an end to CCI and their combined investments total in excess of $300, 000. I understood from the interview that Mr. Darrell Piercy gave that he has 300 ++++ dealers nationwide and internationally. Yes, there are many unfortunate dealers all over, but they are all out of their investment of $7500 - $30,000. Since I have been reading this chat board, I find it hard to sit back and not set the story straight. Everything the Compact Connection stated in the interview is a complete lie. With this note I realize that I will be upsetting many people, but I can not morally sit back and watch this scam operation continue. After fighting with Mr. Piercy for over 1 « years about getting my investment refund, he promised it numerous times both verbally and in writing, but fails to actually disperse the funds to me. At his point I am content with losing my money but I am making it my business to stop Compact Connection from stealing more money for hard working people. I know that everyone will say I am bashing this company, but I have hundreds of documents to support my statements, and just think about it , if it were not true I would be liable for slander. This is not slander, it is plain documented truth. Feel free to contact me and I can provide any information needed to anyone.
I am enclosing a copy of the letter that I mailed to Mr. Piercy and the Federal Authorities explaining the situation about Compact Connection.
I am writing this statement to report the fraudulent and criminal activity that is being carried out by a California based company called Compact Connection (CCI) AKA Bi-coastal Industries. The President of the company is named Darryl Piercy. They are located at 2601 Main Street,
Suite #270, Irvine, CA 92714. 800-662-2671 or 800-659-5571
This company is involved in selling compact disc for $9.99. They claim>that because of contracts with wholesale record dealers, they must distribute their music by initially selling consumer discount music>cards. These cards entitle the purchaser to buy music at reduced prices.
The fraudulent activities begin when CCI recruits its distributors. These dealers are required to invest large amounts of capital anywhere from $7000 - $30,000 in order to become a CCI dealer and sell the discount consumer music cards. They are also supposed to be enrolled in the profit
Sharing program, that is for every Compact disc ordered, the CCI dealer >is supposed to receive a $1.00 profit sharing commission. Compact connection fails to comply with all aspects of their contractual obligation as well as failing to provide the music ordered by consumers. They take their scam operation one step further in that they actually bill the customer and never deliver the merchandise. As per California State law they must inform the consumer of the status of their order within one month. CCI does not, and they just disregard all communication with the customer. Eventually the customer just gives up and goes away. CCI also fails to pay it dealers for their profit sharing of sold selections.
I believe that CCI makes its income from the initial dealer investments. There are currently over three hundred if not more dealers enrolled. After a few months of operations the dealer realizes the fraudulent activities that are going on with CCI so they stop all operations so that their company will not be associated with CCI. When a dealer approaches Mr. Piercy for a refund or the initial investment, he just does not take any of their phone calls anymore. No communications what so ever. Many of these dealers just give up. Both of these fraudulent schemes when
Multiplied a thousand times over can add up to a large sum of illegally obtained money. It is our goal to put an end to Compact Connection and get it and it President Mr. Darrell Piercy s to answer to the authorities.
I am enclosing a copy of a letter that my company had sent to CCI stating our complaints. Their answer was that they would refund 75 % of our initial investments. Unfortunately even until this day we have yet to see these funds.
Mr. Darrell Piercy
Compact Connection, Inc.
2601 Main Street, Suite 270
Irvine, CA 92614
Dear Mr. Piercy:
This is to inform you that upon your receipt of this notice, we will not accept payment(s) from Compact Connection pursuant to our profit-sharingagreement. It is our belief that you and your
Company have failed to comply with the specific provisions of our oral and written contracts, and that said failure constitutes breach as defined, in whole or in part, by The Uniform Commercial Code, sections 2-309; 2-313; 2-403; 2-501; and 2-510.
We are prepared to take legal action on the following grounds:
(1) That your representatives willfully and knowingly misrepresented Compact Connection's service and performance for the purpose of obtaining our investment;
(2) That your representatives continue to demonstrate bad faith by failing to make reasonable attempts to comply with the terms of our agreement, and
(3) As a result of this negligence, our business reputation has been materially impaired, and we have lost both our credibility and the goodwill of our customers.
At the time of our contract with CCI, we were promised computer-generated reports of customer activity, to be delivered as often as we wished. After seven months, we have received only one typewritten report, which failed to include a substantial portion of our sales. It is our belief that your sales representatives promised these reports before the necessary tracking systems were in place. We have evidence that these agents are continuing to misrepresent Compact Connections services to potential investors.
We have not received payment from you, or any information about when we might expect it. "Profit sharing," by even the loosest definition, must involve disbursements of some kind.
Compact Connection has also failed to fill orders on a timely basis, and despite frequent promises, is still taking an average of 2 to 3 months to deliver merchandise, if it is delivered at all. Because of this, it has become impossible to continue our operation in the face of mounting
Complaints and allegations of fraud:
We have extensive documentation to support this claim. Every one of the respondents to our recent customer survey has indicated that they (1) are extremely unhappy with CCI's service, and, (2) would not recommend it to their friends. Many are still awaiting refunds for incorrect or improper billings. This is hardly a wringing endorsement: A business that can not grow by word of mouth cannot grow at all.
We are confident that you will comply with these terms. If you refuse>to do so, however, we will take the following actions:
(1) Initiate civil and criminal proceedings against you for breach of
Contract and fraud (we will also sue for damages).
(2) Contact California's Consumer Protection Agency and Better Business Bureau; the state Attorney General; the state and local Chambers of Commerence; Dept. Consumer Affairs
the Irvine Business Council; the Federal Trade Commission; the U.S. Postal Inspection Service
And the Chief Postal Inspector; Dunn and Bradstreet, Inc.; Eldorado Bank; City National Bank, and Consumer Reports Magazine.
(4) Maintain an active Internet presence through UseNet and our website in order to warn off investors and customers.
We would simply not allow you to continue your operation as you have been doing.
It is our fervent hope, however, that none of these measures will be necessary. We are prepared to wait 14 days for the return of our money, and expect timely communication from you regarding your decision.
Thank You,
Former Dealer For Compact Connection AKA: CCI AKA: BCI or Bi-coastal Industries, and now going under the name of DP Enteprises.
George Rogu
c/o The Former Wax Cylinder Music Co. registered dealer for Compact Connection |
