• Report: #931397

Complaint Review: TradeBank.com

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  • Submitted: Thu, August 23, 2012
  • Updated: Mon, September 24, 2012

  • Reported By: Tradebank scam — Georgia United States of America
TradeBank.com
Nashville, Tennessee United States of America

TradeBank.com Tradebank franchisee, tradebank franchisor, John P. Davis, Todd Gerry, Marcy Yaffe, Scam Fraud, Barter Kings, Franchise scam, Victim, Tradebank.com, tradebank international, Mychoice, scam, ripoff, fraud, rico act, fdd, ftc, victims, rob verkiak, John P. Davis, florida villas, Todd Gerry, Marcy Yaffee, Nashville, Knoxville, chattanooga, Nashville, Tennessee

*UPDATE Employee: Franchise taken, pissed franchisee updated on lawsuit

*Consumer Comment: My Experience

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Tradebank International knowingly engaged in a pattern of conduct whereby they make material misrepresentations regarding positive account balances to franchisees and members of Tradebank

across the country. Positive account balances are situations where an individual barter consumer (a member of a Tradebank franchise) has a positive account balance, meaning they have taken in more barter currency than they have spent. Positive account balances are considered liabilities of a trade

exchange, because they represent already earned barter currency that the trade exchange is obligated to redeem and because most members with large positive account balances will be reluctant to sell any more of their goods or services in exchange for barter currency unless and until they spend their

already accumulated reserves. Tradebank of Chattanooga is a perfect example of this activity. The cumulative total of positive account balances in the entire Tradebank franchise system is approximately $15 million dollars (1,2 million in Chattanooga), versus only approximately $200,000 in negative account balances which negative account balances represent unpaid obligations to the

applicable trade exchange, and which in the barter industry are considered assets of a trade exchange. It is the prevailing view in the barter industry lines of credit are essential, and negative account balances in a trade exchange offset the positive account balances and creates a healthy micro-economy within the exchange. Tradebank is all aware of the problems associated with deficit spending (when a trade exchange has far more positive account balances than negative ones). The negative account balances represent goods and services owed and promised by those members of the trade exchange to the members with positive balances, assuring there is sufficient demand for the

barter currency Tradebank have also engaged, on an ongoing basis, in what is known as cash converting.  Tradebank to use trade dollars or trade credits to purchase hard goods (such as a car, or

canoe, or television, or jewelry, and so on) that came into a franchisees trade exchange, without the franchisees prior knowledge or consent. Tradebank then sells such hard goods for actual cash currency and those goods are no longer available to other members of the exchange. Upon information and belief, Tradebank has for years, with the full knowledge and participation of Defendants, failed to properly report all of their own ongoing trade credit purchases (deficit spending) as fully taxable events to the IRS and pay appropriate taxes on such income. Such actions have the effect of putting all of Tradebanks franchises at ongoing and immediate risk of insolvency or collapse. Thus crediting a barter ponzi with all the local supporting businesses left with nothing.  By knowingly causing Tradebank to engage in a pattern of income tax fraud and avoidance (or at the very least by knowingly acquiescing to such conduct),  Tradebank is in immediate danger of potential criminal and/or regulatory actions against it, which could cause every Tradebank franchise to have to cease operating and/or absorb potential

liability of their franchisor Tradebank, which lack the assets to offset the positive balances. I have several supporting affidavits from third-parties with knowledge of certain facts and allegations raised herein. I am in the process of obtaining numerous other affidavits from similarly situated parties across

the country, and I have spoken to multiple parties with knowledge of the facts and circumstances which parties have confirmed the same.  Tradebank has a pattern of  misconduct is a clear and ongoing pattern. Taking money from small businesses canceling their unusable from the benefit of The

region owner of Chattanooga (junner Mootz former owner of the Loft). These Trade dollars are then converted to cash or hard goods then sold for cash. Mootz continues to borrow Trade dollars from local clients and then fails to repay local businesses back. During the last billing cycle some of these accounts

were canceled due to the cash fees not being paid. The fees were generated by the regional owner, not the owner of the account. Mootz recently was told by a current client to close his account and take the trade dollars and put them into a non-profits account. Instead he instructed to manager to debit business the remaining amount and credit Mootz`s account instead of the non-profit. There have over 1300 small business`s purchase a membership for 495.00, of the 1300, 800 plus have canceled. Many of these accounts have had positive balances and before they are closed the balances have been transferred to the benefit of Tradebank of Chattanooga and Mootz personally. All 1300 businesses paid 495.00, to my knowledge there have been non that have received a refund of the 495.00. I can furnish the following documents. The radman reports to support the Tax issues, deficit spending, and all local radman reports with a list of canceled accounts. The last non-profit theft and the member who was closing their account. I have a list of some of the closed accounts were Mootz used their

trade dollars for personal gain. Former regional owners who will talk, former VP`s of Tradebank International who will talk. Former members with closed account and their missing funds.

http://chattanooga.tradebank.com/

www.tnbarter.com

Jurgen Mootz  jmootz@tradebank.com

423-877-2202

Cindy Sasseen Brokercindy@tradebank1.com  Cindy has recently quit because of ongoing

pressure from  Jim and Jurgen to break the rules.

Jim Glaze Broker IT Managerjim@tradebank1.com Jim was the one who ran

their legal transaction on the non-profit scam.

All of Jurgen employees have been paid legally as 1099 sub

contactors.




This report was posted on Ripoff Report on 08/23/2012 07:51 AM and is a permanent record located here: http://www.ripoffreport.com/r/TradeBankcom/Nashville-Tennessee-/TradeBankcom-Tradebank-franchisee-tradebank-franchisor-John-P-Davis-Todd-Gerry-Marc-931397. 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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Updates & Rebuttals

#1 UPDATE Employee

Franchise taken, pissed franchisee updated on lawsuit

AUTHOR: Joe Barter - (United States of America)

Mr. Ney, (Trade Bank attorney)

We have a very small window of time during which my clients (and Im saying Community Connect ) are open to discussing possible resolution of Tradebanks claims, before Community Connects answer and counterclaims are due at the end of next week. Based on some of new information theyve just discovered, one approach to establish that any agreements between Tradebank and the franchisee were void (induced by fraud, misrepresentations, etc.), will be to join a number of individuals as counterclaim defendants, including Mr. Davis, Ms. Hale, Mr. Gerry, Mr. Hayden, Ms. Yaffee and others who allegedly have firsthand knowledge of company practices in regards to deficit spending in the Tradebank
system. Based on new information obtained since the depositions, my clients will likely allege Civil RICO claims against those persons, and at least based on what Ive been told, it appears they have well-justified grounds to bring such claims. Annette Riggs provided a list of potential experts to John Lynch for the purpose of his own due diligence (and named some of the same to you in her deposition), and I want to make sure your clients are aware these are who my side will be contacting and working with as well. With background descriptions I am including them here as they were provided to Mr. Lynch: Harold Rice, American Exchange Network. He is probably the most important person for you to talk to as he is an accountant and tax consultant and has had his own trade exchange (owned by his accounting firm) for more than 25 years. Harold is the go to guy for new and long established trade exchanges and I dont know anyone with more knowledge about accounting (including how deficits are treated by the IRS) and tax reporting for barter/trade. He is giving a workshop at this years IRTA conference as he has done at many others in the past. Ron Whitney, Executive Director of IRTA. Probably doesnt need explanation but he is very familiar with Regulation 1 which I gave you the copy of and the history and purpose of it. Scot Mathewson, iTradeEarth. Scot has experience with the Tradebank offices in Canada, is an independent exchange owner for about 16 years. Before he went independent, he had a BXI franchise so he learned through being a franchisee and then went through the process of the full management responsibility of running his own exchange. He might have a lot of perspective that he could offer. Paul Suplizio, one of the original founders of IRTA and its first Executive Director. Paul was instrumental in the negotiations with the government back in the 80s. He has deep knowledge of what happened and why regulations were put in place so that IRTA could demonstrate the ability to self-regulate. He was the primary lobbyist and representative of our industry that resulted in our designation as 3rd party record keepers and kept us from being regulated or shut down as an industry all together at that time. This next referral was not provided to John Lynch but has become relevant since this list was provided to him: Mike Mercier, President of the Global Board of IRTA. Apparently Marcy Yaffee and Todd Gerry were personally trained by Mike and have a full understanding of deficit spending and the effect that it has on an exchange and franchisees. I understand that Mr. Davis, Ms. Hale, Mr. Gerry, and others may be familiar with some of these persons, who are well-known throughout the industry. Annette Riggs, whom you met, has known all of these potential witnesses/barter experts for many years and is very comfortable with her knowledge about their positions on these issues. And Harold Rice in particular appears to have a substantial amount of firsthand factual knowledge about Tradebank that if confirmed would be devastating to your clients (and the individuals who would be brought in personally).

After the depositions, Ms. Riggs went forward on making few calls to these experts and uncovered information previously not known, which include Tradebanks alleged practices with respect to cash-converting and deficit spending on
their own account, selling trade credits to franchisees, and other giveaways that have all contributed to the deep deficits in the Tradebank system. So, my clients believe that this is a systemic issue and not unique at all to the Denver franchise. Also relevant would be evidence that Tradebank allegedly puts all of its franchisees at ongoing (and well-known to Tradebanks management) risk by not properly recording or reporting enormous amounts of deficit
spending for income tax purposes. All of these facts are sufficient allegations, my clients believe, to sustain RICO claims against the relevant individuals. Thefranchisee believed that the $400k of positive balances in the Denver franchise was an asset to his franchise, rather than what it was (and is), a liability. Community Connect is going to primarily make its defense with the case that any franchise agreement, and any covenants, between the franchisee and Tradebank were null and void (due to fraud and misrepresentation), and thus your clients cannot sustain claims against Community Connect. Again, my clients all believe they have credible information that Tradebank systematically engages in activities that lead to massive unreported and unpaid tax and other obligations, which puts their entire franchise system literally at imminent risk, and systematically makes material misrepresentations in various franchise documents. Your clients have aggressively pursued all of my clients, even coming all the way to Colorado to go after Community Connect. And I have to question why in the world your clients would want a transcript of the short hearing on Tuesday, unless its to use it for a press release or something akin to what theyve done to and against many franchisees. When faced with such
aggressive tactics and claims, my clients are going to respond with every legal avenue open to them. Or between gentlemen, we can say my clients feel its time to take the gloves off and take the offensive. In addition to Community
Connects short-term litigation plans, your clients should also assume that the franchisee will shortly be seeking leave to amend his counterclaims and take similar steps (seeking leave to add RICO claims) in the pending Georgia litigation. All that said, there is again a very small window before my respective clients begin the next stage of their litigation counterattack so-to-speak.

 Annette Riggs feels that this case has the potential to bring forward unwanted government regulation or attention on the entire barter industry. As I understand it this is the only reason my clients (and particularly Community Connect) would even consider some form of settlement before all of this begins to really escalate. By the end of next week Community Connect needs to file its answer and counterclaims, and were going to start preparing them Monday or Tuesday so literally the window to seriously get your clients to confirm that they indeed want to continue is now. Once
Community Connect files counterclaims, theyre going to be committed so-to-speak and will be much less likely to reconcile. And Im sure its clear that many franchisees has some personal animosity towards your clients for what
he perceives as very poor treatment and misconduct. Please let me know ASAP if your clients want to make some kind of settlement offer, or have a direct conversation with my clients. Hope you had a pleasant enough visit to Colorado,
 thanks, Gregory Goodman, Attorney GOODMAN | BOWLES LLC6901 S. Pierce Street, Suite 370Littleton, CO  0128(Columbine Valley Bank Building) 303-946-8525

CURRENT TRADEBANK FRANCHISEE EMAIL ADDRESSING CEO JOHN P DAVIS


Todd,

I understand your answer. But, respectfully, I believe John had no place to make this announcement. I dont like the position this seems to have put you in. You are our President of Tradebank and these decisions and announcements
should have come through you. I dont believe John was respectful in this sense. John has a notorious habit of not following procedures in order to satisfy himself.It is my understanding that decisions such as this that have an
effect on our bottom dollar should be discussed and voted by the Board of  Directors, who in turn dictate their decisions to you as President.

I would expect you as President to bring the decision to the Regional Owners at a meeting, in person or by phone, to allow a discussion of the decision. Regional owners then have a clear understanding of the change and are united in
the decision. And clear decisions then become rules that are communicated to our client base in a timely manner. This process also solidifies the regional owners respect for you as our President.John clearly knows this correct procedure, but chooses to go on his own and create dissention among the Regional owners and stresses their relationship with the corporate office.

During many meetings, I have personally heard him manipulate decisions and speeches simply to cause friction. Its with sadness that I truly believe many of the problems in which Tradebank is facing right now stem from decisions and
actions made by John Davis. I have been a regional owner now for eleven years, and these exact same issues have always plagued Tradebank. If Tradebank is  going to survive, these actions have got to be stopped NOW. As a regional
owner, I sincerely request that you would take a stand against Johns corruptible actions and consider the effects that his actions and decisions have on Regional owners and their clients. I believe you would have the backing of the majority of regional owners. I believe you have the best interest of Tradebank and the regional owners in mind and you could move us forward in a possible direction.I look forward to discussing these issues and sharing possible solutions among all involved at our convention in Nashville.

Maureen Edwards
Tradebank of Middle Georgia
124 Gralan Drive Suite #6Byron, GA 31008Phone: 478-654-6624 478-654-6625Fax:
877-733-6163 broker@tradebankmidga.com

Albert Einstein stated, The search for truth implies a duty. One must not conceal any part of what one has recognized to be true." I am sorry but I have a moral obligation to protect future victims from Tradebank and to rage war against all who support their hidden agenda. I am in total support of Tait Carson and past and future victims of Tradebank. John Davis, Todd Gerry and Tradebank marketing material calls a Tradebank Franchise . An Opportunity of a lifetime!What is the meaning of an "opportunity of a lifetime?" It's a chance that doesn't come our way veryoften, and usually
one that would result in tremendous benefits for us, if we can manage to grasp it before it slips away. Other missed Opportunity of a lifetime!All Regional Owners have an obligation to uphold the integrity of Tradebank!Attached is the
video of Todd Gerry and John P. Davis and their resent trip to Orlando!

On March 2007 John Davis calls Tradebank.com stock .Dont miss out on the opportunity! According to Websters, the meaning of opportunityis Afavorable or advantageous circumstance or combination of circumstances. Also,
A favorable or suitable occasion or time for progress or advancementIn an article in the Trade Street Journal, dated March-April 2007 John Davis states,Our Reg D offering was launched and only time constraints on my part have kept it from completion. 2007 has already started with a bang!..Completion of the REG D offering is my main focus for 2007. I will be visiting most of the US and Canadian cities beginning in late January until these projects are finished. There are only a few hundred thousand sharesleft for American clients and one million shares left for our Canadian clients. Let a word to the wise be sufficient. Dont miss out on the opportunity!Maureen Edwards has been recently quoted that when she sat on the Board of Tradebank many years ago (my guess is around 2007) That John Davis was trying to get the Reg. D offering completed and all the Board members at the time had to complete a Reg. D form. One of the questions that she had to answer honestly was, do you know of any illegal activity done by Tradebank International or its officers? She stated,After all the forms where returned to Davis, there was never another attempt to file the reg. d again. Also stated by Davis, his only focus on getting the REG D completed in 2007. See the Trade Street Journal March-April 2007. So who has benefited from the sale of 9.3 million shares of Tradebank stock, the stockholders?Todays Shopping Network, Inc. This Corporation is out of business. There was a ton of stock sold by Davis for this company was well! More Victims!3DH COMMUNICATIONS, INC. This Corporation is out of business? James Bower, Rob Verkiak and Davis together to victimize more Tradebank clients and regional owners with this stock. They even brag about it on Tradebank`s website. CITYBUDDY This Corporation is out of business more victimsIBIDEZY! Who Benefited? Purchased with Tradebank funds without the boards approval.www.iBiDezy.com/tradebank. This Corporation is out of
business. I know the man who sold it to Tradebank is happy. MYCHOICE FRANCHISING no is making any money! Who Benefited? Tradebank funds have been supporting Mychoice for two years now without the board approval.

MYCHOICE.COM STOCK when will the reg. D be filed? Who Benefited?The Golden Gem Channel, This Corporation is out of business , Davis victimized more Tradebank clients and regional owner with this stock. Wh o Benefited?The Mine in South America This Corporation is out of business more victims. Who Benefited?With all of these other Opportunities who was the only one who benefited? John P. DavisLet me hit a little closer to home as a former Regional owner of two Tradebank franchises.

As stated in the FDD you only need 6-9 months worth of living expenses (until your franchise starts making money) after you start you new region! This is what is called an earnings claim. This is clearing stated in FDD supplied to
everyone who has purchased a Tradebank franchise. Only 6-9 months, Then you will be making enough to support your family and paid all of your bills. If this is true, Shame of Tait Carson and Ross Porter they should have honored their
agreements, if it is not true shame on Todd Gerry and Tradebank International.

So tell me who among you has been able to reach this claim made by Tradebank International in the first 9 months? We have 80 regions and 12,000 clients. See Tradebank`s welcome packet to new clients. if it is not true shame on Todd
Gerry and Tradebank International.What about Tradebank being an Opportunity of a lifetime?The Region of Chattanooga since I have abundance of information of this region. Over the last five years this region has had just under 600
accounts canceled. What about Residual income that they claim in their marketing material? There sales are 31% year to date and the regional owner owns everyone trade dollars.Tradebank`s billable volume is down almost 1 million dollars year over year. Radman Reports from 1/1/2010 to 12/31/2010 Trade Volume Ranking Two key thing to look at when reviewing this report.

First the average purchases per regional. Naturally if youre going to claims it an opportunity of a lifetime then lets look at the net. The average is 456,983.75 P&L on the average457,000 times 11% =50,270.00 in cash fees. 50,270 x 40% to the corporate office =30162.0030,106.00 the cost your monthly payment for your franchisee, of 600.00 per month or 7200.00 per year = 22962.00 minus your full time required broker 40 a week 160 a month 2080 a year (10 per hour
plus fica) 12 per hour x 2080= 24960.00-1998.00 Minus your required office, phone, utilities, cell phone, insurance, auto, auto insurance, gas, office supplies, A P&L on regions doing 1,000,000 in volume (which only 10% of the regions have ever reached)1,000,000 x 11% = 110,000.00 in cash110,000 x 40% to corporate office =66,00066,000 minus (full broker12 per hour x 2080= 24960.00) =4104041040.00 minus (office 4800.00, cell 600.00, insurance 250.00, auto
insurance 400.00, gas 3600.00, wear and tear on vehicle (tires maintenance) 500.00,office supplies, stamps and equipment 500.00, office phone and elec. bill, ..600.00 Your net is 34,590.00 this is the top 10% at TradebankHow long
will it take you to reach a 1,000,000 in billable volume?Now Todd has been recently quoted as saying, we would rather have 6 good regions than 70 regions not performing.So how did they pick Rodger William to cut first? Straws? Names in a hat? Who is next? Maybe the corporate office just needed his other 60% (volume is way down year to date), 40% was not enough. Or maybe they just knew Mr. William would not fight back this was their way of intimidating to regional owners. I think most of you who are now working second and third jobs should quit them to concentrate on Tradebank unless it is Mychoice of course. if it is not true shame on Todd Gerry and Tradebank  International.Here is the list of Regions please review and tell me which region has reached the opportunity of a lifetimeDavis states at the latest
regional owners conference, there is more falling out of the bucket then going in! True, Williams, Muchmoore, Porter, Carson 4 franchises, Winands 3 franchises, who is next? Well Panama City was added.

http://864business.com/

http://lasvegas.tradebank.com/

http://tradebankfranchising.com/

http://oklahomacity.tradebank.com/

http://denver.tradebank.com/

http://tradebank.com/

http://omaha.tradebank.com/





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#2 Consumer Comment

My Experience

AUTHOR: imahoneybear - (United States of America)

I find this  be ironic, as Cindy was very rude to customers and found her work ethics to be very offensive to many customers and was hard to get along with.  She would miss work because she was to drunk to show up.  All I see here is sour grapes.  And think she really needs professional help for her drinking problem.  Other than dealing with her Tradebank has been a very positive and friendly experience.
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