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Michael B, a real estate developer in Valrico, FL, writes:
While searching for project funding, I found an ad in the
classified section of "Excite.com". I responded to this ad,
and was contact by telephone, email, and fax, by Johnny B. Giles,
President and CEO of Generalogistics, Inc. After several conversations,
and review and brochures sent by Mr. Giles, as well as a check
of public records in the state of north carolina, I decided
to prodceed. I also asked for references of other clients that
his company successfully provided funding for.
I was given the names of two people that were supposed to be
references.
1)Keith E., who claimed to be an officer in JCM Productions,
Inc. located in Cleveland, Ohio. I checked to see if JCM Productions,
Inc. even existed, using the public records search there, and
found that it did. John M. was listed as the corporate officer.
I also tried to reach him by telephone but his number is disconnected.
I later found out that Mr. E is employed by Mr. Giles, and Generalogistics,
Inc. either directly or as a subcontractor. I also have email
message from him admitting this. Mr. E claimed to have received
funding for concert promotions in the amount of $200,000.00,
$150,000.00, and a credit line of $2,500,000.00
2) A. Lucas. of Lucas International, Ms. Lucas said she was
a antique dealer in Charlotte, NC. I could not find any information
to support this, no corporate records, no telephone listings,
etc. Ms. Lucas claimed that she got the business from her father,
and could not explain why there was no corporate record of her
company. She claimed to have received funding from Generalogisticsin
the amount of $300,000.00 and a credit line of $750,000.00.
I later found that there is no listing for Ms. A. Lucas either,
but was able to find a C. Lucas, telephone number unlisted,
as is the number for Ms. Lucas, and the strangest thing is that
C. Lucas, resides at the same address in Charlotte, NC as the
office address of Johnny B. Giles and Generalogistics, Inc.
When I decided to proceed with Mr. Giles, and Generalogistics,
Mr. Giles, called and emailed me regularly, especially when
it involved the need for more money. Upon reviewing my executive
statement, Mr. Giles, sent me a contract and loan committment
for $2,500,000. I was to send him information listed in his
package, and a initial fascilitation fee of $7,500.00, with
the potential for additional fees over the course of the processing
of another $7,500.00 and not to exceed $10,000.00. This was
in December of 1999. I thought about this and had planned on
a vacation to ring in Key West. I decided to wait till we returned
and think about whether I wanted to send this money or not,
between 12/16/99 and our return on 1/4/00 Mr. Giles sent me
numerous email and telephone messages insisting that I hurry
and send in my fee and paper work, because he had some moany
investors that wanted to avoid capital gains, and were interested
in my project. He continually reminded me that his company had
100% success rate.
Upon speaking with Mr. Giles again I explained that I had another
investor, that I have done nearly $2,500,000 worth of loans
within the past and that although their loan structure was different
they could close this loan for me by January 31, 2000. He expressed
his belief that he could as well, but if he couldn't it would
be no longer than early February. I decided to use Mr. Giles,
service with Generalogistics, Inc. I sent Generalogistics, Inc.
the intial $7,500 and all the requested paperwork. I finalized
my contract with the sellers of the subdivision, and gave myself
til febrauay 15, 2000 to close the deal with them, giving them
a sizeable deposit on the property.
During the next 30 days Mr. Giles would contact me and request
additional monies, most of the time he would not explain there
intended uses, except to say that they were to fascilitate the
contract, currently being prepared by his attorney. That this
was a very expensive process, and that he had to continually
pay him more money, to move it along. Mr. Giles, also explained
the one of the request and part of another were to be used for
travel expenses for him and the investor that had committed
the entire amount to my project, to travel to Florida to view
the property. On another two occasions mr. Giles said the additional
money requested was for the transfer of funds from the investors
account in the British West Indies, to his account so that we
could close within a few days. On two different occasions Mr.
Giles request for money was to be the "final" requirement to
close this loan, although after both of the "final" requirement
requests, he later requested more money. Mr. Giles also once
requested an additonal payment of $3,200 to finalize the contract
with the attorney, this was on February 16th, 2000, past our
origianl deadline. When I questioned this request he said that
if I were willing to send $6,000 instead of the $3,200 he could
guarantee the completion of the contract and closing within
a few days. He also stated he would send a new letter of intent,
to this. His original letter of intent was for February 15th,
2000. Or if I decided not to send the additonal money he would
put my file on the back burner and we could proceed later.
This was a real delimna, because by this time I had already
sent him $26,800, $9,300 more than the total required in Mr.
Giles' original comittment. Foolishly I sent him the $6,000.
I never received the updated letter of intent.
Mr. Giles also contacted the sellers of the property and assured
them that he was preparing to close this loan with me, that
he just needed a few more days. At this point Mr. Giles disconnected
his mobile telephone, thereby eliminating any method of direct
contact with him. Mr. Giles would not return my telephone calls
to his voice mail, or his answering service, he rarely answered
my emails, accept with token messages, that said was out of
town, or have been bus, will get back with update later. Later
never came.
Mr. Giles later again requested more money, each time I questioned
it he said either it was the final requirement, and that we
would be closing on March 16th, 2000, or if I didn't send the
money he would sit on my loan and its closing. Mr. Giles was
well aware that I had to also pay the sellers an additonal amount
of money to extend our contract to March 15th, 2000. He demanded
I send the last installment and said I would get another letter
of intent to give my sellers, that we would close on march 16th,
2000. I again, foolishly sent the money, and again never received
the promised documents.
In the days preceeding March 16h, 2000, I sent Mr. Giles, numerous
email, voice mails, and answering service messages, informing
him that the March 16th, 2000 was just a few days away and that
I had not yet received the closing documents, and that the title
company, the sellers, and their bank needed to know for sure
that we would be closing, so as to schedule the appropriate
time for the closing. Only after I sent him an unpleasant email
did he respond that he thought he should rethink his committment,
that he could not understand why we were in such a hurry to
close. At this point I also was speaking to Mr. E,who I have
found out is now the CFO for Generalogistics. He appeared to
be interested in finding out why Mr. Giles would not communicate,
and what was going on, although Mr. E also did not respond when
he said he would.
I decided to dig deeper and find out more about Mr. Giles,
and Generalogistics, Inc. That is when I found your site. I
also arranged to meet Mr. E while he was in Florida, visitng
a sick relative, that was on March 15th, 2000. I also decided
to contact the FBI, and the FDLE, Fla. Dept. Of Law Enforcement.
Apparently they made some calls, and I received a fax from Mr.
Giles, saying that I needed to fear his recourse, and that I
couldn't touch him. During the course of this from January 5th,
2000 through March 7th, 2000, I sent Mr. Giles, and Generalogistics,
Inc. $38,800. $21,300 more than it was supposed to cost to fascilitate
this loan. During this time Mr. Giles continually made false
statements as to the use of these funds, and to the result of
providing them. These funds were delivered via, Federal Express,
bank wire transfer , and Western Union money transfer.
Upon contacting Western Union to get informationon about who
received the money transfers, the WU agent told me she contacted
"Checks Etc. #2", the place where mr. Giles picked up both money
transfes sent via Western Union. The agent at "Checks Etc. #2",
said that Mr. Giles is always in there picking up money being
sent by people all over. This leads me to believe that there
are more victims out there. I have provided this information
to the FBI and the FDLE. I also plan to contact the Hillsborough
County, Florida sheriffs dept and the Mecklinburg County, North
Carolina, sheriffs dept.
I am also planning on taking out ads in the Wall Street
Journal, and Investor Business Weekly, Mr. Giles
also advertises in these papers.
My total financial loss to Generalogistics, Inc. was $38,800,
the cost to send then this money $1,000, the money spent to
bind the property, $50,000, signage for the property, our reputation
in our community is tarnished.
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March 23, 2000
To Michael B:
All of your communications and concerns have been noted and
documented. I fully understand your frustrations and anger,
however note we are currently looking into a possible solution
to this situation. In an in depth meeting with my Attorney,
Eric, he has agreed to take care of any complaints we may have
and assist us in resolving them professionally.
Please take note of the following, since it would seem logical
for you to do so at this point; Continued threats against myself,
my employees or my firm will not result in anything positive!
Any actions against myself or my firm, will only be handled
legally and will not immediately benefit your position!
We have not ripped you off, conned you, or scammed you and
the very indication that we have, puts us in a more defensive
mode, taking longer and longer to resolve a small matter which
we can easily do! With regard to you becoming aware of other
complaints made against our firm, I am pleased to say that over
the last 4 years, we have only had a small hand full and you
have but only one side of the story!
No matter what you think you know about myself and my firm,
bare in mind that it is feasible that you are in error, with
your current views and have allowed your emotions to take control.
These things may not stop you from doing what you are doing,
with regard to slander and libel against myself and my firm,
but do take note of them for future reference. GeneraLogistics,
Inc. never sets out to fail, nor to mislead or misrepresent
ourselves.
A formal reply will be prepared by my attorney and at that
point you and your representatives can negotiate through him.
His full name, address, phone, fax will be given to you upon
completion of his initial review. In closing, this is my formal
position; I do not like the comments and complaints you have
made against myself and my firm, however I do understand your
position to a certain point.
The reasons behind my understanding, is due in part to your
lack of understanding associated with why things went the way
they did. You feel cheated, mislead and lied to, all of which
is no more than a point of view. Like you, I will do anything
to protect my interests and that of my team and my company!
Keep this in mind as you continue your assault, since it will
bring forth a result, one that may not serve you too well!
Sincerely,
Johnny Giles
President/CEO GeneraLogistics, Inc. http://www.generalogistics.com
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