• Report: #922536

Complaint Review: Stasis Engineering

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  • Submitted: Sat, August 04, 2012
  • Updated: Mon, March 31, 2014

  • Reported By: BalancedTruth — Charles Town West Virginia United States of America
Stasis Engineering
500 Motorsport Park Circle Summit Point, West Virginia United States of America

Stasis Engineering Todd Cope Ponzi scheme, Share selling scam, Securities Fraud, Risky Investments Summit Point, West Virginia

*UPDATE Employee: Worked for Schurtz. Eurojet got taken for a ride by Stasis

*Consumer Comment: Front Page of WV Gazette

*Consumer Comment: Joel Schurtz Is a Thief

*Author of original report: The Author, Joel Schurtz, retracts the allegations in this report.

*Author of original report: Stasis Found at Fault by Panel of Judges

*UPDATE Employee: Investigation Report- Misleading-Joel Schurtz not credible

*Author of original report: Securities Fraud Investigation against Stasis Engineering - Todd Cope, Stasis CFO, and Paul Lambert, Stasis CEO

*Author of original report: Securities Fraud Investigation against Stasis Engineering - Todd Cope, Stasis CFO, and Paul Lambert, Stasis CEO

*UPDATE Employee: STaSIS Files suit and is granted Temporary Restraining order against Joel Schurtz et.al

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My family and future has been devastated by this company. They have stolen everything from me that I spent the last 10 years of my life building.

I was lured into moving my family across the country and sold them my company for $50,000 in cash and $400,000 in Stasis Shares. They paid me the cash (albeit very late per the contract), but never issued my shares during my employment or paid me my due wages.

They withheld information regarding a lawsuit filed by their former COO and did not disclose it to me until after the acquisition was finalized. Had I been disclosed this information I would have never put my company or family at such a risk.

They also misrepresented the share price of their shares and told me that they were based off of the estimate from Oppenheimer. Those estimates and valuations were terribly inaccurate. I was misled. Despite numerous discussions with the CEO and CFO of the company, they misrepresented the share price to me and issued shares at a value of $3.11 instead of the actual share price of $2.46. I did not authorize this transaction. I did not agree to this price. They issued me the shares at that price after I had an attorney send them a demand letter for the shares after I left due to their breaches of the contract.

Stasis is a privately held company, but has been sponsored by the State's Jobs Investment Trust and endorsed by Andy Zulauf. Andy Zulauf is a board member of Stasis and has a close personal and long time relationship with the CFO of Stasis, Todd Cope. Andy and Todd have an incestuous business relationship and have been using Stasis as a shell company to sell shares to nearly 100 investors.

As last reported in the State of Delaware, Stasis has a share count of nearly 21 Million Shares. With a share price of $2.46 a share and according to Stasis' internal finances and selling the company over 10 times forward, making the company worth nearly 50 Million USD as portrayed to investors. However, their revenues are in the negative every month; in the Month of May 2012 they only sold $300,000 in gross sales when $800,000 is the operating break even point (according to sources), and are swimming in millions of dollars in debt to their suppliers including Thermal Exhaust Systems, VF Engineering, Alcon Brakes, etc.

Both Todd Cope and Paul Lambert have misappropriated shareholder and taxpayer's investments in excess of 10MIL. They, in part, use these funds to provide themselves with lavish lifestyles, large homes on golf courses, expensive sports cars, and large salaries all at the expense of the investors and taxpayers of West Virginia.

They have taken an estimated 3MIL of the WV Taxpayer's money in funding, what is believed to be, a share selling scam from the Jobs Investment Trust. They have also misappropriated nearly 7MIL of shareholder's investments and have not provided an exit strategy or financial plan for the future.
I can provide financial statements and witness accounts from both current and former employees.

This company is failing and nearly insolvent. I fear that I will lose everything that I have ever worked for if something isn't done. I was defrauded and lied to by Paul Lambert and Todd Cope into selling them my company for a pile of worthless shares.

Check out Balancedtruth.com for more documents and info. 

This report was posted on Ripoff Report on 08/04/2012 02:18 PM and is a permanent record located here: http://www.ripoffreport.com/r/Stasis-Engineering/Summit-Point-West-Virginia-25446/Stasis-Engineering-Todd-Cope-Ponzi-scheme-Share-selling-scam-Securities-Fraud-Risky-I-922536. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
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Updates & Rebuttals

#1 UPDATE Employee

Worked for Schurtz. Eurojet got taken for a ride by Stasis

AUTHOR: Kellen W - ()

I worked for Schurtz and Eurojet. I was a fabricator. I was paid and treated fairly. Didn't have any real complaints. He sold the company to Stasis and they really messed up the deal. Schurtz has moved on with is doing well, but Stasis has completely fallen apart. 

 

The last word I heard was that Stasis was involved with money laundering and fraud. They were on the front page of the papers.

 

 

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#2 Consumer Comment

Front Page of WV Gazette

AUTHOR: Kellen Ward - ()

Stasis landed on the front page of the WV Gazette for their actions involved in Fraud case:

 ads.cnpapers.com/tearsheets/front/pageone.pdf?paper=gz&abbrev=mo&date=081312

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#3 Consumer Comment

Joel Schurtz Is a Thief

AUTHOR: dtprod - ()

Joel Has ripped off every single person or company he has ever employed, or been emloyed by. 

His "designs" were actually stolen from someone competent to create them. Darren. 

Simply Google Mr. Schurtzs name, and West Virginia, Alabama, Arizona, or Wasington. 

There is not one business he has been involved in that he has helped succeed without fraud, or theft. He has "borrowed" money from his own father in law for business, and used his religion to engage other investors in deals that have all gone sour.  Borrowing and more borrowing, and bankruptcy to avoid paying off his debts is how Joel operates. 

Mr. Schurtz goes from person to person, and company to compnay and it is always someone elses fault. He is a bad person, and anything he says about anyone elses actins against him is laughable. 

Just google all him, and all the companies he has worked for, he has stolen from. It can't be everyone elses fault anymore. 

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#4 Author of original report

The Author, Joel Schurtz, retracts the allegations in this report.

AUTHOR: BalancedTruth - (United States of America)

The Author, Joel Schurtz, retracts the allegations in this report.
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#5 Author of original report

Stasis Found at Fault by Panel of Judges

AUTHOR: BalancedTruth - (United States of America)

This is the third time Stasis has appealed my Workforce ruling, this is also the third time the ruling has been in my favor. As if the original ruling from a single judge wasnt enough, it was put in front of a panel of judges this time around and the result was the same.The amount spent on legal fees to contest my claim  far supersedes the paltry amount that was entitled to me by the State.

Its been a complete and total waste of money for the Taxpayers of West Virginia and especially the Shareholders giving this company money in exchange for shares.More time and money has been wasted on legal processes from the onset of this company than what has been spent on research and development. Is it an engineering firm or is it a litigation firm? That might be a good question to bring up in the next shareholder meeting.

Im just one guy that entered into a bad deal with this company, so why in the world would a company continue to waste valuable resources and time on a single person? You got meSpending that money on actual research and product development would have a much greater payout in the long run.

As previously posted the original ruling was in my favor - 

The Honorable Judge Byrne states:

However, there were two aspects of the transaction that were deceptive or unfair to the claimant. First, the representation to the claimant that the value of what he was receiving for his asset was worth approximately $450,000, was, at least, inaccurate, and made, it is found, in order to induce the claimant to sale the assetsit is found that the integrated company would be worth $450,000, was not accurate, and was made in order to induce the claimant to sale his assets.


The third appeal decision states:

The Board of Review, having reviewed all documents in this matter, finds the Administrative Law Judge has made a proper ruling and adopts the findings of the Judge, by reference in its entirety. Therefore, the decision of the Administrative Law Judge is hereby affirmed. The Claimant is not disqualified. The Claimant left work voluntarily with good cause involving fault on the part of the employer.

Here are the documents:

http://balancedtruth.files.wordpress.com/2012/08/workforce-appeal.jpeg
http://balancedtruth.files.wordpress.com/2012/08/workforce-appeal-1.jpeg

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#6 UPDATE Employee

Investigation Report- Misleading-Joel Schurtz not credible

AUTHOR: Tifani - (USA)

First of all the "investigation" is into the complaint made by by Joel Schurtz and an investigation is not proof of any wrong doing. Its acknowledgement of Joel's complaint and their looking into his complaint. 

CHARLESTON, W.Va. -- A former manager at West Virginia's venture capital fund on Thursday defended the agency's decision to invest in an Eastern Panhandle company now being investigated by the state Securities Commission.Matthew Wender, former investment manager at the West Virginia Jobs Investment Trust Board, disputed allegations that his former boss, Andy Zulauf, had an "incestuous business relationship" with Todd Cope, the chief financial officer of STaSIS Engineering Inc.The West Virginia Securities Commission, a division of Auditor Glen Gainer's office, started investigating STaSIS in June, after a former employee, Joel Schurtz, filed a complaint. The Jobs Investment Trust has invested $1.25 million in STaSIS and owns 10 percent of the company's stock."Mr. Schurtz's comments about the relationship between Andy and Todd Cope are absolutely untrue and over the top," said Wender, who serves as president of the Fayette County Commission. "It was an abusive term and so, so inaccurate."Zulauf and Cope acknowledge they have known each other for years. They also live in the same Putnam County subdivision.In his complaint to the Securities Commission, Schurtz noted that Zulauf serves on STaSIS' six-member board of directors. Schurtz also alleged that Zulauf "endorsed" STaSIS, a privately held company that designs and sells high-performance components for luxury sports cars."Andy Zulauf ... has a close, personal and long-time relationship with the CFO of STaSIS,Todd Cope," Schurtz wrote in his complaint. "Andy and Todd have an incestuous business relationship and have been using STaSIS as a shell company to sell shares to nearly 100 investors."Wender recalled Tuesday that Zulauf and Cope started talking about STaSIS in 2009. Cope, a West Virginia native, had been commuting from Putnam County to Sonoma, Calif., STaSIS' headquarters at the time."It's my understanding the conversation took place on a soccer field," Wender said Thursday. "Todd was talking about wanting to move the company to the East Coast."Not long after, Wender said he researched STaSIS and met with Cope and STaSIS CEO Paul Lambert. Wender later negotiated the "term sheet," which spelled out a series of conditions STaSIS would have to agree to before the state would invest in the company."The most important condition, of course, was they had to relocate to West Virginia," Wender said.He said Zulauf wasn't directly involved in negotiations with STaSIS."I wrote the investment summary, I negotiated the term sheet, and I made the presentation to the JIT board," Wender recalled. "Andy was aware of the discussions, but he wasn't front and center in getting this put together."Zulauf has called Schurtz's allegations a "baseless personal attack." Zulauf said his role in the West Virginia Jobs Investment Trust's decision to invest in STaSIS was "legal, ethical and professional."Also Thursday, Wender took issue with Schurtz's allegation that STaSIS was a "shell company" -- one without significant assets or operations."That's baseless," he said. "STaSIS is not a front for anything, except the corporation that it is."Wender said Zulauf has served as an "astute board member" at STaSIS for the past three years - despite Zulauf's friendship with Cope."He has approached this from a very independent standpoint," Wender said.In 2011, Schurtz sold his company, EuroJet Development Inc. of Mead, Wash., to STaSIS for $50,000 in cash and $400,000 in STaSIS stock. STaSIS also agreed to hire Schurtz as part of the deal.Schurtz quit his job with STaSIS in October. The company subsequently filed a federal lawsuit against Schurtz, alleging he stole "confidential business information."Schurtz denied the allegations, and countered that Cope and Lambert misappropriated $10 million in "shareholder and [West Virginia] taxpayer investments," according to his complaint with the Securities Commission.In addition to the state Jobs Investment Trust's $1.25 million investment with STaSIS, the state Economic Development Authority and Infrastructure & Jobs Development Council have loaned STaSIS investors $2.5 million. The investors used the loan money to build STaSIS' headquarters building in Jefferson County.Schurtz recently established a website, www.balancedtruth.com, where he sharply criticizes the company and posts public documents about STaSIS and company executives."Sometimes it's good to buy the company, but not the founder," Wender said of STaSIS' decision to purchase EuroJet and put Schurtz on the payroll. "They have made mistakes. They've gotten themselves in deals they probably wish they could backtrack on."Even so, the auto parts company holds much promise, Wender said."It was a very good investment [for the state]," he said. "I think the company will ultimately be very successful. They've had some growing pains, for sure, but so have most companies at this stage."Earlier this week, STaSIS executives called Schurtz a "disgruntled" employee who has started a "smear campaign" against the company.Schurtz responded that STaSIS officials want to "shut me up" to cover up their misdeeds.The state Investment Jobs Trust Board invests state tax dollars in small companies seeking to expand.Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.
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#7 Author of original report

Securities Fraud Investigation against Stasis Engineering - Todd Cope, Stasis CFO, and Paul Lambert, Stasis CEO

AUTHOR: BalancedTruth - (United States of America)

Click Here to See the Investigation Letter: STaSIS Securities Fraud Investigation

The Plaintiffs, Stasis Inc, Paul Lambert - Stasis CEO, and Todd Cope - Stasis CFO, are currently being investigated for Securities Fraud by the West Virginia Securities Division. Investigation File no: 12-0049. See Attached - Investigation Letter

The Securities Investigation is moving forward at a rapid pace. Investigators from West Virginia have begun to contact former officers of Stasis Inc, former financial controllers, Investors, and current employees requesting financial documents and exchanging information to corroborate and obtain information.

The Defendant has supplied financial documents, contracts, and internal emails between Todd Cope, Stasis CFO, and financial officers of the company that blatantly show fraud and manipulation of sales figures. These documents have been supplied upon request by the Lead Investigator John Frisby. The investigation is real and ongoing. 

(cont.) The Office of the United States Attorney investigates differently than that of the West Virginia Securities Division. The Office of the United States Attorney investigates criminal fraud, ponzi schemes, corruption within West Virginia State Government, and misappropriation of State Funding. These actions by Stasis Inc, Paul Lambert, Stasis - CEO, and Todd Cope, Stasis - CFO,
were outlined in the motions filed by the Defendant on July 17th, 2012.

The Defendant has supplied an abundant amount of financial documentation outlining Securities Fraud by the Plaintiff, Stasis Inc, to the Office of the United States Attorney who works in conjunction with the F.B.I., I.R.S., and the Office of the Secretary of State. 





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#8 Author of original report

Securities Fraud Investigation against Stasis Engineering - Todd Cope, Stasis CFO, and Paul Lambert, Stasis CEO

AUTHOR: BalancedTruth - (United States of America)

CLICK THIS LINK FOR THE LETTER: STaSIS Securities Fraud Investigation

The Plaintiffs, Stasis Inc, Paul Lambert Stasis CEO, and Todd Cope Stasis CFO, are currently being investigated for Securities Fraud by the West Virginia Securities Division. Investigation File no: 12-0049. See Attached Investigation Letter

The Securities Investigation is moving forward at a rapid pace. Investigators from West Virginia have begun to contact former officers of Stasis Inc, former financial controllers, Investors, and current employees requesting financial documents and exchanging information to corroborate and obtain information.The Defendant has supplied financial documents, contracts, and internal emails between Todd Cope, Stasis CFO, and financial officers of the company that blatantly show fraud and manipulation of sales figures. These documents have been supplied upon request by the Lead Investigator. The investigation is real and ongoing.

The Office of the United States Attorney investigates differently than that of the West Virginia Securities Division. The Office of the United States Attorney investigates criminal fraud, ponzi schemes, corruption within West Virginia State Government, and misappropriation of State Funding.

It is imperative that the ongoing investigation against Stasis Inc, Paul Lambert Stasis CEO, and Todd Cope Stasis CFO, by the West Virginia State Auditor and the imminent investigation on the criminal level by the Office of the United States Attorney be allowed be continued unfettered without interference.

Check out this Investigation Letter Against Stasis
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#9 UPDATE Employee

STaSIS Files suit and is granted Temporary Restraining order against Joel Schurtz et.al

AUTHOR: Tifani - (U.S.A.)

To our dealers, partners and customers,For the past 13 years, our lives at STaSIS have been focused on customer satisfaction, innovation and the continued growth of our company. The growth of STaSIS simply means that there are more and more car enthusiasts out therea community with the same race-bred adrenaline in their veins as in ours. To offer our community more options, more products and better services, our company continues to grow through partnerships, mergers and acquisitions. As is true of any business in any industry, growth brings both good and difficult experiences. But one thing remains at the very core of STaSIS: Integrity. Integrity is non-negotiable in our business: it is how we do business, and it is how we deliver product.And while we strive to keep focus on our business and maintain a professional stance in an often contentious industry, it is time that we set the record straight.

 You will find below a fact sheet that we hope will provide further clarity amidst the rumors. We do this with the belief that the more you know about STaSIS, the more you will appreciate that STaSIS is built on a foundation of truth, strength of character and dedication to our customers.Paul Lambert, President and CEOTodd Cope, Chief Financial OfficerSTASIS FINANCIAL STABILITYSTaSIS is growing rapidly. 2011 was our strongest year to dateour innovations have driven a steep growth curve and a doubling of sales for performance products for Audi vehicles.We sell our products through more than 550 Audi dealerships and independent performance centers in 35 countries, and STaSIS directly employs a workforce of approximately 50 people on two continentsmore than a third of which bring engineering experience to the company. STASIS RELATIONSHIP WITH AUDI OF AMERICAIn a letter to its dealers, Audi clarified the guidelines for engagement with STaSIS. The guidelines start and end with one very important principle: to take care of the customer. STaSIS works with Audi to provide a seamless, positive customer experience.

While Audi has never recognized any aftermarket supplier as an official partner, STaSIS is the only supplier that delivers its products through more than 80 Audi dealerships across North America with a factory-matching warranty.STaSIS works with Audi to ensure that vehicles modified with our products are clearly flagged in the Audi warranty system to enable faster diagnostics and better customer service. STaSIS customers can have their vehicles serviced and repaired under warranty at any Audi dealership across North Americano hassles and no delays. This is unique to STaSIS. Through proper communication, we expect that under no circumstance will a customer be delayed or denied repair in situations involving STaSIS and Audi products when repair is appropriate. 
Mark del Rosso, Chief Operating Officer and Peter Donnellan, Director After Sales, Audi of America, October 5, 2011This program is stronger than ever and has remained unchanged for over six years. Audis policy on aftermarket products and specifically STaSIS has been in place for some time.
The history that Audi of America enjoys with STaSIS has been and continues to be positive.
Mark del Rosso, Chief Operating Officer, Peter Donnellan, Director After Sales, Audi of America, October 5, 2011View complete letter from Audi of AmericaSTASIS TECHNOLOGY Similar to how OEMs such as Audi use outside suppliers, STaSIS partners with companies who invest millions in R&D each year to develop the best production and competition technology in the world. These partnerships allow STaSIS to harness the worlds most current technology and adapt if for road-going use.STaSIS engineers, develops, and tests the products for the characteristics of each individual Audi vehicle.  Some products are built in-house like our Motorsports suspensions and others are manufacture to our precise specifications, but every product we produce contains unique elements tuned and tested by our engineers and available only through STaSIS.   Our attention to detail ranges from simple things like designing and owning our own wheel die to assure the best tire fitment to designing our own software 100% in-house with a full engineering staff on two continents.STaSIS has approximately 50 professionals, including people that have been at the forefront of the industry in Volkswagen Group tuning and engineering for 30 years. More than a third of our staff brings engineering experience from real-world racing circuits in the U.S. and across Europe and from elite universities such as Stanford, Carnegie Mellon, Virginia Tech, Cal Poly, WVU, Georgia Tech, De-Montfort, Coventry, Cardiff, Herriott Watt and others.PURCHASE OF EUROJETIn 2011 STaSIS purchased the assets of Eurojet Developement, Inc.

The consideration paid for the assets of Eurojet Development, Inc. relates tangentially to an active lawsuit, and STaSIS will not litigate that case over the Internet.  We will provide some facts.Legal ProceedingsIn October 2011 STaSIS filed a lawsuit in the United States District Court for the Western District of Virginia against three former employees whose actions have hampered STaSIS ability to support its Eurojet product line. In January 2012 STaSIS was granted the extraordinary ruling by a Federal court of a Temporary Restraining Order (TRO).What is a Temporary Restraining Order (TRO) and what does it mean? The court issued an order preventing a former employee from marketing or selling any product designed, engineered, or manufactured using confidential information taken from STaSIS.      In short, it is impermissible for defendants to sell the assets of their Company to STaSIS, go to work at STaSIS for a short period of time under confidentiality agreements, and then leave STaSIS to work for a new competitor, taking with them and using STaSISs confidential business information to develop a product that appears to be virtually identical to that sold by STaSIS. The public interest is served by prohibiting the misappropriation of anothers confidential business information, and a TRO is necessary to preserve the status quo and prevent any further use of STaSISs confidential business information pending the scheduling of an expedited Preliminary Injunction hearing.  
- Michael F. Urbanski, United States District Judge     Courts only create temporary restraining orders (TROs) with a very high level of independent, verifiable evidence. For an independent analysis of TRO standards in reference to this case, click here: http://albo-oblon.com/n_controll/employment-law/employment-law-updates/tro_standards/ What happened at court?The former employee was aware of the court dates and was represented by legal counsel at the hearing. He chose not to attend. Counsel for the former employee cross-examined every witness and every exhibit was admitted without any objection being made.

The court considered all evidence, and issued a temporary restraining order that has since been turned into a preliminary injunction.Documents issued by the court:Temporary Restraining OrderTemporary Restraining Order OpinionPreliminary InjunctionWhat has happened since the TRO was issued? As a policy, STaSIS does not engage in trading criticisms and rumors in public venues, including forums.After the TRO was issued, STaSIS sent a copy of the TRO to Unitronic, as the TRO applied to a product that was advertised on the Unitronic website.  Unitronic responded by severing ties with the former STaSIS employee. http://www.unitronic.ca/media/letter_schurtz_final.pdfBesides the STaSIS press release announcing the lawsuit to protect the Eurojet line and public legal documents, no other information has been actively distributed by STaSIS.STaSIS is a firm believer in mediation, and has agreed to mediation several times. During these mediations, STaSIS made several settlement proposals to the former employee. All proposals were rejected.The former employees legal counsel requested the court allow him to resign from the case. The court granted this request.

The former employee has since filed several motions representing himself and we have responded; all documents are being evaluated by the court. The former employee has repeatedly represented his own filings with the court as court documents and posted them on the Internet. These are statements made by the former employee, have not been supported by evidence, and are not findings of the court.Given the actions of the former employee STaSIS has no choice but to continue to protect our property and our Eurojet brand. We will do so to the fullest extent the law allows. 
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