Ms. X Wrote me again:

THANK YOU FOR YOUR RESPONSE, IT WAS VERY NICE OF YOU AND BELIEVE IT OR NOT, THE WAY YOU EXPLAIN THINGS ALMOST MAKES IT BELIEVABLE.

I JUST HAVE ONE QUESTION FOR YOU. WELL ACTUALLY AT LEAST TWO.

WHY ARE THE PRESIDENT AND CEO, AND RK NOT ANSWERING PHONE CALLS. PEOPLE HAVE BEEN TRYING TO GET IN TOUCH WITH THEM, TO NO AVAIL. DOES THAT MEAN THEY ARE HIDING????

DO YOU HAVE ANY IDEA WHY THEY ARE STILL SOLICITING MONIES, IF THEY KNOW THAT THEY CANNOT DELIVER THE GOODS. OF COURSE UNLESS THEY STILL ARE TELLING PEOPLE THAT THEY CAN DELIVER. IS THE COMPANY STILL OPERATIONAL, SOLVENT OR SIMPLY PUT, IN BUSINESS???

YOUR RESPONSE WOULD BE GREATLY APPRECIATED, AND THEN MAYBE YOU CAN GIVE ME SOME ADVISE AS TO WHAT CAN BE DONE, AND HOW THE MONIES COULD BE RECOUPED.

At this point, like I at least alluded to earlier, we have laid off nearly all our staff. The only folks that remain in office either have stake in the company or are volunteer laborers. Rick and I fall into that grey area of volunteers/partners as we’ve invested no hard capitol into the company, but have worked without pay since the start, essentially. RK and the President, as well as some of the bigger investors who have now taken a more active role, are the ones who have actual hard stake in the company. Between this group of people you will find varying opinions of how solvent the company is based off of how much they have invested, coloring their hopefulness and wishfulness of the company’s solvency.

All that to say that this company is being run by a skeleton crew. Avoiding calls isn’t an accurate description of what’s going on. Everyone is heavily tied up in survival mode and the day to day operations of the company normally taken care of by the office crew is having to be taken care of by solely Rick and myself, and as effective as we are, when two people take on the tasks of eight, a lot slips through the cracks.

We still can deliver contingent on the many factors I have discussed here previously. How likely is it that those factors will work in our favor? That is a matter of discussion and opinion.

The monies we are pursuing now are not investments, or even customers. We have gone for hard money loans, and the repayments were based off the investors of this company’s credit records and collaterals. Therefore no misrepresentation of any kind was made to potential investors.

As to the avenues we are pursuing to recoup the losses of the company, the first and most obvious is to try to fix the damn thing. It really seems quite a simple thing to just do what is required to get things going. Don’t ask me why it hasn’t happenned. I’m completely baffled.

The second avenue we are pursuing is to simply gather everyone that FlyDLUX owes money to, investors and clients alike, form a committee of debtors, and pursue Tony. His relationship to the company is more of a vendor than an employee, so the label of fraudster or whatever falls on his shoulders, rather than bringing down the rest of FlyDLUX officers and employees with his antics. Granted, FlyDLUX’s existence rests on the shoulders of Tony, and that’s just bad business to create a unidimensional company, but not illegal. Tony is the one who will have to face the music the most, since his name is all over contracts with FlyDLUX to provide service he didn’t, as well as all over the consentual audio recordings of conversations he and various members of the company have had.

It is just my opinion, mind you, but I think that this is the best route we have to recouping our losses — to pursue Tony in criminal, then civil court. I of course will abide by the decisions made by the company’s general counsel, but to me it seems like this is the only sane course of action given Tony’s performance for the company ever since the numbers got big.

The only way such action would work, however, was with full cooperation with us here at FlyDLUX, since we hold all the evidentiary cards, not to mention all the people coming together with an army of lawyers (it seems as if everyone that’s ever done business with this company has a team of lawyers of their own), Tony will have to cave to our fiscal demands and fork over whatever reparations we ask for, and then what the criminal courts do to him is not my concern at that point.

/rizzn