Dear Folks:

An action was filed against James Wimmer (WIMMER) on 1/22/04 as a Petition for Involuntary Bankruptcy. It was filed in the United States Bankruptcy Court, Northern District of Texas, in Ft. Worth, TX, and was assigned Case No. 04-40762, before Judge D. Michael Lynn. The person appointed as Bankruptcy Trustee is Carey Dalton Ebert, Hurst, TX (817) 268-2468.
All documents filed by the debtor are available online at www.txnb.uscourts.gov.
Flydlux.com, Inc. (FLYDLUX) is now preparing and will certainly be filing a claim against WIMMER. We currently estimate that the claim for restitution alone will amount to approximately $1.2 million. Because this and related causes of action against WIMMER are the only remaining assets left to FLYDLUX, it may become necessary for FLYDLUX to also file a petition for liquidation in bankruptcy.

All airline tickets purchased by Flydlux.com, Inc. (FLYDLUX) were bought from WIMMER. Payment for all tickets was made in accordance with directions from WIMMER. All such payments were made either by wire transfer or direct deposit, excepting one cash transaction before a credible witness for which was also a receipted transaction. Accordingly, FLYDLUX paid for every ticket it sold and has receipts from WIMMER and his flight fulfillment agent, Lida Travel, Inc. (LIDA). The payments made to them and the receipts furnished by them conclusively demonstrate that FLYDLUX paid in good faith for thousands of airline tickets that were never delivered by WIMMER and/or LIDA.

This action – or inaction – by WIMMER and LIDA caused FLYDLUX to default on all of its obligations to its creditors, including all customers, investors and employees. Lawrence E. Finkelstein (FINKELSTEIN) and all of the employees of FLYDLUX were totally wiped out by the failure of WIMMER and/or LIDA to deliver tickets. FINKELSTEIN is now impoverished and abandoned by family and friends alike. FINKELSTEIN’S father, older brother and other family member also suffered significant financial losses, along with numerous close friends who invested hundreds of thousands of dollars as investments in or purchases from FLYDLUX. The devastation brought about by these losses has done irreparable harm to many of us.
FLYDLUX will soon be filing for liquidation in bankruptcy. Its only assets are causes of action for the undelivered paid tickets purchased from and through WIMMER, and an action for the purchase price of option agreements for the purchase of additional tickets plus lost profits when WIMMER and LIDA defaulted on them.

The financial records of FLYDLUX show that its operating expenses were reasonable – if not modest – at all times. Not only were salaries modest, but also they went unpaid more often than not since all of us were waiting for the delivery of large batches of tickets before the company went out of business. Those deferred salaries were never paid. This visited catastrophic losses upon all of us who were relying upon the unpaid wages to support our families and ourselves.
We believe that there is evidence of fraud on WIMMER’s part. There may have been collusion on LIDA’s part, as well. FLYDLUX paid for far more tickets than it sold, and acted in good faith at all times. We are confident that the record established in the WIMMER bankruptcy and all related actions will conclusively vindicate us and accurately identify the responsible villains.
Unfortunately, there is nothing more we can do at this juncture, other than keep you informed. We have given you the website for the WIMMER bankruptcy. All other information will be publicly posted at Flydlux.com. We advise you to check there periodically for additional information and instructions.

We deeply regret these tragic developments. Even after we are vindicated, we will long bear the scars of this terrible experience.

Sincerely yours,
Lawrence E. Finkelstein, President
Mark A. Hopkins, former CFO