Ah the old "disclaimer".....



Private placement investments -- are the most illiquid investments PERIOD. Thus the old 5% rule applies. In other words NEVER invest more than 5% of your investable funds in ANY ONE INVESTMENT... the reason for that is - anyone can "afford" to lose 5%.

What happens in many of these is that they hit up all their friends and family -- and people put in 25 and 50 grand.... most under 100 grand... and when it goes south -- it doesn't pay the investor to sue.

For instance... It cost me over 50 grand in attorney fees just to look over the paperwork and finances of a company that I invested in. So you have to have some funds to throw around just to see if there's anything to recover. In my case I brought suit against the companies Directors and Officers... and I was 250K in attorneys fees before the insurance company (who you're really suing - and they'll defend vigorously) settled. In my case what I really wanted was the fact that each D&O would have to disclose that they had been sued. So any other company thinking about them sitting on their board etc - would see that on their 'record' as they would have to disclose this info. They'd also have to disclose what they were sued for - and the outcome (THEY LOST). Yes -- sometimes I'm an awhole. Certain people DESERVE to have people like me bite their azz.


Sometimes failure is not the sole responsibility of the owner/operator. Sometimes there are simply outside factors that come into play. In this case - if you read his sob letter - he blames EVERYONE under the sun except himself or anything HE did -- such as investing in stuff that didn't pan out - or failure to manage overhead or failure to generate sufficient sales... or failure to maintain good customer service -- resulting in lost sales... He clearly blames COMPETITION. Well yeah -- the world is competitive. Eat or be eaten. My sense is there were MANY reasons for his failure.

I'm grateful that there are people like you who can afford to do that, there are too many walls around the truth sometimes and that's what ends up biting investors and companies...

Please don't, those units are junk.

I got the email blast as well. I sent a personal reply to Shafi. Here was his response:

"I will file your reply with the other replies from a**holes"

:lol:

I'll bet he's sent out a lot of those replies. :rolleyes:

LOL

what is he expecting
:G-Dub:

Do you guys have any idea of who can fill up the gap for service parts for the RS transmission family? Especially for the RS600
I know there a few guys here also with the RS tranny.

The correct response from a clueless man. Everybody but him is an a hole. The world is wrong and only he is right.

X 1,000,000.

He's not interested in his past customers' money he's blown through, just the new money that's out there that he KNOWS HE DESERVES ... to somehow, someway put in his pocket.

:bigun2:

Just to show how clueless he is -- he's looking for a "minimum" of $500K --- which will fill $467K of business and overhead costs.....


Pretty optimistic... and shows why he's broke. There's NO MARGIN in his business plan. Who could operate a business on 33 grand of capital. There's absolutely no room for any hiccups... He's going to have himself and one other guy - and "contract" employees.... and one guy on commission? Who's going to supply him with anything? Would you? If he just filed BK, and owed you a small fortune? Or would you tell him to # sand and ship the goods to a valuable reseller that actually pays their bills - and whose business just got better because there's one less competitor.

Reading his entire "prospectus" - which was NOT professionally constructed - tells it all... grasping at straws. I will say that reading the prospectus - as shoddy as it was/is - tells me he came out with NOTHING. Many guys that have personal money at least hire lawyers to construct a professional prospectus. My guess is he might still owe the lawyers... LOL

My thoughts exactly Greg.