Dear PoisonTaster,
As one of CCI's former dealers, I am grateful that you are willing to set up a dialogue with Robert Gordon on our behalf. Unfortunately, however, Mr. Gordon has washed his hands of us. It is his reply I quote below:
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July 24th,2, 1998
RE: Your fax Email dated July 24th2nd, 1998
Contract Conflicts with Compact Connection, Inc.
Dear Gentlemen
I am in receipt of your letter e-mail dated July 24th, 2nd, 1998. The following is TeleServices International Group Inc.'s (TSIG) response to your lettere-mail.
TSIG and CCI's relationship:
TSIG is not the new owner of Compact Connection, Inc., a Nevada Corporation and a company qualified to do business under California state law.
TSIG is working to complete the purchase of the assets of CCI and operate under a newly formed corporation, Compact Connection Inc., a Delaware Corporation. CCI of Delaware is a wholly owned subsidiary of TSIG.
CCI of Nevada (with whom you have a contract) is wholly-owned by Darrell Piercy and has been renamed DP Enterprises, Inc.
TSIG is not obligated to assume any existing dealer contracts from CCI of Nevada/DP Enterprises.
TSIG has not made a definitive decision regarding forming relationships with existing CCI of Nevada/DP Enterprises dealers at this time.
TSIG has not assumed any liabilities, claims or suits brought against CCI of Nevada. Such matters must be taken up directly with CCI of Nevada/DP Enterprises.
Regarding your claim that you were "defrauded" by CCI of Nevada, TSIG is not in the position to negotiate this matter with you directly. It is the responsibility of CCI of Nevada/DP Enterprises. However, TSIG will recommend to CCI of Nevada/DP Enterprises to adhere to the terms of promissory note issued immediately.come to an amicable settlement with you. Please advise what you would consider an acceptable settlement in this matter and we will be happy to convey this information to Mr. Piercy.
If I can be of any assistance to you in this matter please do not hesitate to contact me personally at
1-800-895-4410.
Sincerely,
Robert P. Gordon
Chairman
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It is a particularly interesting sleight-of-hand that enables TSIG to acquire CCI's assets and marketing strategy, as well as the authority to void existing dealers' contracts AND YET not be responsible for any liabilities.
IMHO: Explaining to customers that CCI of Delaware is an entirely separate entity from CCI of Nevada despite a stock transfer, a shared business/marketing concept, and logo will be difficult. The late and infamous trouble in Irvine will prove difficult to sidestep, however shrewdly TSIG has structured the acquisition. Mr. Gordon's response sounds a bit disingenuous, too. He knows that many of us have been "negotiating" with Darrel Piercy (i.e., trying to convince him to return our money) for a solid year now. Should we keep this up forever?
OTOH: My own list of former CCI dealers boasts a combined investment of over $750,000, and there are a good deal more out there than the fifteen I know about. I seem to get e-mails from new people every week trying to find out if we've gotten our money back from Darrel yet. No one I've come across has seen dime one. If I were Bob Gordon, I'd probably try to wriggle off of that hook too.
The whole enterprise is suspect from the get-go. It's OUR MONEY that bought the assets he now holds. I think he's shrewd enough to know that Darrel didn't amass that chunk of change by actually selling Compact Discs. I'd be interested in what does--and doesn't--come to light after the audits are completed. |
