I recieved an email from one of our clients/limited partners today through the website. I’m going to post it here because I feel I have nothing to hide. The company should be a glass house, although I must admit I’m getting nervous that since the site is recieiving so much attention due to the company that I might be getting attention eventually from the President and other investors. So I feel its time for a full update and such on company news. But first, the letter .. my response to that will help illuminate a lot of things. It has been edited to protect the identity of people involved.

SEPTEMBER 24, 2003

DEAR [Rizzn],
SOMEONE ACCIDENTALLY STUMBLED ON YOUR WEBSIITE, AND READ YOUR TAKE ON THE FLY DLUX SCHEME, WHICH YOU EXPLAINED WAS NOT INTENTIONAL. [Rizzn], YOU KNOW ME AS XXXX FROM XXXXX XXXXX. YOU KNOW THE INVESTMENTS WE MADE WITH THE COMPANY, AND HOWEVER YOU EXPLAIN IT, YOU CANNOT TELL ME THAT [The President], WHO TOLD US TO WIRE HIM MONES, A BUNCH, DID NOT SIMULTANEOUSLY KNOW THAT IN FACT HE WOULD NOT BE ABLE TO PRODUCE THE TICKETS.

IN FACT, YOU SENT ME CONFIRMATIONS, AND CONSTANT E MAILS WITH THE RESERVATION DETAILS, AND THERE WERE NO ACTUAL RESERVATIONS MADE.
[the President] TOLD US TO WORK WITH TONY, AND IF HE IS NOW SAYING, THAT TONY, AN AGENT OF FLY DLUX, I KNOW NOT AN OFFICER, AND CERTAINLY NOT A GENTLEMAN, RAN OFF WITH THE MONIES, THAN WHY DID [The President] TELL ME TO WORK WITH HIM.

WHY DID [the President] CONTACT A CLIENT OF MINE, MR. XXXXXXXXX AND CONVINCE HIM TO WIRE 25,000 DOLLARS, AND HE WILL GET TICKETS, AND OF COURSE HE TOLD XXXXXXXX TO WIRE THE MONIES DIRECTLY TO TONY OR LIDA, WHAT WAS UP WITH THAT, WHEN AT THAT POINT, NO ONE WAS GETTING ANY TICKETS.
WHAT IS THE TRUE STORY WITH THESE NONEXISTANT VOUCHERS, HOW CAN YOU IN TRUTH SELL 3000 VOUCHERS/TICKETS.

WHERE , IF YOU USE LIDA TO ISSUE YOUR TICKETS THROUGH C&H INTERNATIONAL- A CONSOLIDATOR, FOR WHICH TICKETS YOU GUYS HAD TO PAY, AT LEAST 700-1000 DOLLARS, SO WHERE IS YOUR MONEYMAKING DEAL IF YOU ARE SELLING THESE TICKETS FOR 150-400. WHO IS THE BUSINESS BRAIN BEHIND THIS GREAT SCHEME. CAN WE DEDUCT, THAT AFTER SIMON HODSON PUT IN 248,000 DOLLARS, [The President] ANTICIPATED ON RUNNING OFF WITH THE MONEY, BUT I AM SURE THAT SIMON DID GET HIS TICKETS.

[Riizzn], I UNDERSTAND YOU ARE A WHIZ KID, WHY AND HOW DO YOU FIT IN THIS SCHEME OF THINGS.? I CAN ASSURE YOU, THAT NONE OF US, ALL THE PEOPLE WHO THOUGHT THEY WERE BUYING A LEGITIIMATE PRODUCT, STARTING FROM MR. XXXX XXXXX, XXXXX XXXXXXX, XXXXXXXXX ETC. ARE COMPLETELY STUPID, AND ONCE THE BALL OF PAYBACK STARTS TO ROLL, THERE IS NO SAYING WHO WILL BE FALLING DOWN.

BUT I AM PRETTY SURE OF ONE THING, THERE WILL BE NO TURNING BACK. AND BY THE WAY, THERE WAS ONE NAME NOT MENTIONED IN YOUR BLURB ON YOUR WEB-SITE, MR. [RK], WHO IS NOW SUPPOSED TO BE A CEO OF FLYDLUX. I AM SURE YOU PROBABLY KNOW WHO I AM BY NOW, AND I AM NOT TRYING TO HIDE IT, BUT BECAUSE OF FLY DLUX, AND THE WRITTEN CONTRACT THAT WE HAVE FROM [the President], WITH A PERSONAL GUARANTTEE, HE NOW OWES US IN THE VICINITY OF 57,000-60,000 THOUSAND DOLLARS.

PLEASE ANSWER THIS, IT CAN BE OFF THE RECORD. THAT IS WHY I AM NOT EMAILING YOU AT FLY DLUX.I WOULD BE VERY INTERESTED IN THE TRUE ANSWERS TO MY QUESTIONS.

Dear Ms. X,

Like I’ve said before, I was always under the impression that FlyDLUX was a legitimate operation. One of the biggest reasons I believed it was legitimate was that the President was always making suching a convincing case for its legitimacy. It was as if he really believed it. After having lived and worked in such close quarters with him for so long I have come to believe, no, scratch that, know that he also believed that it was a valid business. He has personally staked every connection, family member, and business associate on this. If this business turns out to be a big scam, the President is the one with everything to lose.

That there is the biggest and most definitive argument to the fact that FlyDLUX is not a scam. Everyone involved in this office has gone into debt trying to keep this company alive. I myself owe vendors that are personal business connections of mine as well as dear friends money that I can’t pay them for services rendered, Rick has a family back in Texas that is hocking everything they have to keep us here. The other partners that have come into business ownership here are staking some very personal things to them to get the money to keep us alive. The President himself faces some very stern repercussions from very dear people to himself if this thing fails. These are not the actions of scam artists. These are the actions of people who desparately believe that there is a way to keep this company afloat. That is why we continue to do so.

To address each of your points specifically —

We know only what Tony tells us as far as the validity of these tickets. Here’s what we do know about them: We know that for the first four months of the company’s life, everybody who booked a ticket and paid the low price we offer flew without a hitch (which is to say, Tony does have a positive track record). We know the theory behind how we get these low prices, and while that is something i cannot disclose on this site, I can say that it is a perfectly plausible and valid way to get those low prices (which is to say that there is not a completely transparent lie behind the explanation of these tickets existence — to the contrary, there is a valid line of explanation that they exist). We know that things started getting fubared when Tony started selling tickets on the side (which is to say that all our money troubles could be due to Tony not being able to balance a checkbook).

So in answer to “YOU CANNOT TELL ME THAT [The President], WHO TOLD US TO WIRE HIM MONES, A BUNCH, DID NOT SIMULTANEOUSLY KNOW THAT IN FACT HE WOULD NOT BE ABLE TO PRODUCE THE TICKETS…” I can in fact make that statement in complete honesty. There is a reason why we allowed Tony to string us along, and those reasons are outlined in the previous paragraph.

Like I said, Tony didn’t “run off with the monies” per se. There certainly is a lot of money missing, and neither we nor Tony can account for where it went. Our books show that we paid nearly a million dollars for something that should be no more than $300,000, or at best $750,000. There certainly is a deficit there. Due to the disorganisation in the office before I got here (i.e. no accounting to speak of, horribly bad flight tracking), no one really seemed to notice until I did a surgical audit of the company (which, incidently is how I was cursed awarded the title of CFO).

How did I come into this? Where I fit into this is simple: I have been friends of the President’s family for a very very long time. The President has two twin sons that I love dearly and will do anything for, and when one of them asked me to come and help whip this company into shape, I came down here and obliged.

It’s shakey for me to make the claim that the people you mentioned were buying what I’d consider a legitimate product, especially in hindsite. Obviously we haven’t been able to deliver on the product we promised. Did we know that at the time? No, not really. I mean, Tony had been screwing things up for a while at that point, but we were pumping money like crazy into his accounts with the ticket vendors, so we figured money would fix things. We were doing everything in our power to fix things. Granted, in hindsite again, we weren’t doing the right things to fix the problem, but we were doing more than a lot.

“CAN WE DEDUCT, THAT AFTER SIMON HODSON PUT IN 248,000 DOLLARS, [The President] ANTICIPATED ON RUNNING OFF WITH THE MONEY, BUT I AM SURE THAT SIMON DID GET HIS TICKETS. ” You accurately deduce that Simon got his tickets. Simon is a whole other story… I choose not to go into it right now. There might be a time, but honestly those negotiations should have ended wi

th our company being solvent and running, theoretically, but since I’m answering emails like this one, you can see that those negotiations did not end properly (and to be honest, I’m not sure they are over, I don’t generally stick my nose into the Hodson Negotiation Circus much anymore). But what happenned to the Simon Hodson investment? I’m not sure. I know where the money was wired. I know how much we supposedly owed at that point. The investment should have taken care of it. Obviously it didn’t. Why? These are the subjects we are now puruing with Tony et. al.

As to [RK], I don’t mention names that don’t want to be mentioned on my website. FlyDLUX is something I feel I have sweat equity in and I can talk about it. I feel I have that license, whether or not other company priciples feel I have that right or not. Honestly, I’m risking a lot of stake in this project by talking as freely as I am. But a) I’m always careful about what I say and b) I protect the identities of people involved and don’t use names without permission. I believe that by being honest on this site and telling it like it is we will be protected in a worst case scenario, and vindicated in a best case. If this company does pull through, then believe you me, we have a lot of payback to accomplish, and thanks to my personal accounting skills, we have everyone’s name and addresses to send the checks to. But if we don’t pull through, it is also my duty to pull everyone we owe money to because of this into a group and ensure that the proper people accept responsibility for this. I’m willing to accept responsibility for the parts I’m actually responsible for. But I also want it known that we all fully believed in this company and because of the actions of a few, many have sufferred, and many more will suffer if we don’t figure out a way to save this.

On a personal note, that is why I stick around. As you stated, I am a ‘whiz-kid’ I suppose. I could be making around 150k a year working for the man, or I could be working full time on any other number of the projects that listed on my website. But I choose to work on this. I am not living high on the hog from this project (neither is anyone else in this company, by the way). I have been working on subsistence pay since June. So has the President, and so has Rick. Our employees get paid once every three weeks on average, which is no way to run a company (not to mention no way to live), but these are all part of the sacrifices we have made to keep this thing afloat.

Removal of the JAW Tapes
I have removed the place to download the James Anthony Wimmer tapes for a couple reasons. First of all, I was advised by a friend of mine exactly how they were a liability and how their posting was self-destructive. I agreed begrudgingly. Secondly, my aim was to have copies floating around in the ether to pull down in case something drastic like a raid happenned here for whatever reason and my harddrives were seized. That goal is accomplished, they are stored online in non-disclosed locations now, and if something is to happen to me or the company, I will make them available again. As long as the company is operating under the assumption that we are going to make it, they will be unavailable as they are a liability. If that status changes, they will become available again. We have enough enemies to our success within the company, I don’t need to snatch defeat from the jaws of victory as well.

Final Note
I encourage anyone that’s here because of FlyDLUX to write me and ask me questions. I will address them fully and honestly. I honestly believe that the truth will set us free on this. And I still do believe that the company has something more than a snowball’s chance in Texas at survival. We can make this work. The legitimacy of the tickets and the company shouldn’t be at question, it’s the honesty of a certain individual in the company at question. Once we have a gun to his back, a carrot in front of him, and someone alongside him to keep him on track we should be able to make this work.

As always, stay tuned to the site for the inside track.