| Carmen80 |
10-20-2010 09:33 AM |
Quote:
Originally Posted by AdultKing
(Post 17624305)
Each and every person in the US should file a criminal complaint against the US citizen operator of ePassporte, Chris Mallick.
I have already explained why I believe that ePassporte will not pay out in other threads but here it is again:
For ePassporte to be in a position to pay out every account, at the time of closing the doors ePassporte would have needed over 100% of wallet funds in cash or security. This is extremely unlikely.
Most financial services institutions like banks and p2p processors like Paypal only hold a percentage of liabilities in security. This is why they have things like FDIC insurance in the USA and one of the reasons they need an Australing Financial Services license in Australia.
Let's take Paypal as an example. If every single Paypal customer made a full withdrawal of every cent held in their Paypal account then Paypal would run out of money before everyone could be paid. This is because they run models of the transactional nature of the business and this model takes into account that at any particular point in time a certain percentage of account holder funds will remain in the system.
In banking terms this is called fractional reserve banking.
HOWEVER ePassporte was not governed by any regulatory regime which required it to be insured for all account holders funds and thus likely did not have the generally accepted levels of security for banking institutions or regulated and insured organizations like Paypal.
Not being governed by a regulatory regime means that ePassporte was free to carry as much account holder liability mismatch as it wanted to. This liability mismatch funded movies being made, private jets, expensive cars, the expensive lifestyles of executives and so forth.
While ePassporte was running along without any hitch, even with a low fractional reserve liability mismatch they could honour recurrent liability of the normal flow of money within it's system. As soon as Visa pulled it's relationship, the stack of cards fell in one instant and has caused a run on ePassporte funds, firstly those held in Virtual Visa Cards and Secondly those in wallets.
Unless ePassporte ran the system with no fractional reserve liability (which is not possible for such an operation) then there is less than 100% of account holders funds held by ePassporte. I would be surprised if they held anything over 20% - 30% as the lavish lifestyle of Chris Mallick had to be supported by something and as we all know his other buisiness ventures, especially film making, were flops or underperforming at best.
What is likely to be happening now is this.
Closing down an operation like ePassporte takes time. Firstly staff were let go and many would have been paid a severance or termination. Then lawyers and accountants would have been called in to try to make sense of the mess, also costing a considerable amount.
Following up this ePassporte had to make some sort of public statement so has done so and has been following this up over several weeks with additional statements of re-assurance but no real action. In the mean time secured creditors are likely being paid out quietly. Chris Mallick wants to come out of this without impediment to movement around the world so he wants to be sure that no funds are left owing to secured creditors.
This will leave a small percentage of representative wallet funds remaining. I imagine invested monies are now being called in. The most likely scenario is that when all secured creditors are paid out somewhere between 0% - 15% of wallet funds will remain.
The most likely tactic that will follow is that ePassporte will pay out the most vocal critics or if they aren't that clever they will make enough disbursements that confusion will be created. Some people will say they got paid, others wont. This will buy just enough time before the liquidation statutes of the jurisdiction in which ePassporte operates will allow final distributions of funds - this will go to shareholders and into Chris Mallicks pockets.
Very few people will see the money returned because it is just not there, it's gone.
People owed considerable monies by ePassporte should file class action lawsuits NOW before the process is allowed to complete. This should also be backed up by criminal complaints - insist that your complaint is taken.
If you keep buying the delaying tactics and waiting it out then you are playing into Chris Mallick's hand and as unsecured creditors of ePassporte you will be left swinging in the wind.
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This explains everything and I think finally there is a theory that isnt retarded.
And if it's legal for them to use a big chunk of the money for investments like you said, then most likely mallick has looked up all legal aspects, and when epass goes down for sure, it will be pointless to even attempt to sue him or contact a lawyer.
I bet the reason why the visa's was suspended is because st kitts bank knew how mallick misused the epass money and they decided to lock the visa funds so he cant steal more money from epass account holders once it all goes down.
I am well aware that I wont get back my 4k and honestly I dont give a fuck anymore. And for the people with 10k+ on their epass accounts, you WONT get it back but I bet this will be a wakeup call for you all. Don't keep your shit online. |
