• Report: #35194

Complaint Review: UNIVERSAL CORPORATE & ENTERPRISE FINANCIAL

  • Submitted: Thu, November 14, 2002
  • Updated: Fri, April 09, 2004

  • Reported By:San Francisco CA
UNIVERSAL CORPORATE & ENTERPRISE FINANCIAL
5825 GLENRIDGE DRIVE, ATLANTA, GA ATLANTA, Georgia U.S.A.

UNIVERSAL CORPORATE, ENTERPRISE FINANCIAL, ANTHONY TOBIN, BARBARA FORMAN, EYAL DULIN, NEIL BARNETT FINANCE SCAM, UPFRONT FEE SCAM, DECEPTIVE FUNDING CORP deceptive company ATLANTA Georgia

*Consumer Suggestion: True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

*Consumer Suggestion: True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

*Consumer Suggestion: True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

*Consumer Suggestion: True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

*Consumer Comment: FRAUD ..A true equity investor would never ask for upfront fees..

*UPDATE Employee: Please prove me wrong, I beg you!

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Just like others that have filed similiar reports, I was first approached by Ms. Barbara Forman of Enterprise Financial as a finance finder as I was searching for funding with a new startup buinsess. Ms. Barbara Forman said she has some sources that would fund my ideas and new business.

She then referred me to Mr. Anthony Tobin of Universal Corporate who them contacted me and took a look at my business plan. After a few day, Mr. Tobin was very happy to say that he had an investor that wanted to meet me in person in Atlanta to finalize an investment deal and could fully fund our capital need of $20 million dollars.

As excited as I was to hear the news, I told them upfront that prior to me heading out to Atlanta from San Fran, that it was company policy to not enter into any deals that would require any upfront fee or cost reimbursement. Mr. Tobin then sent me a long email specifically stating that they were equity investors only and charged no upfront closing cost, reimbursement fees, NOTHING!

After I visted Mr. Tobin and his very polished team which consisted of Mr. Bertus Seickeijer, Mr. Neil Barnett, Mr. Tobin himself, and with Mr. Eyal Dulin of VIP Technologies on the phone, I felt very comfortable with them when we spent about 2-3 hours going through my plan and a possible investment. THESE GUYS ARE VERY POLISHED AND KNOW HOW TO TALK THE TALK WITH FINANCE. During the meeting, we all concluded that there would be very minor due dilligence to be done and that an equity deal could be worked out.

Mr. Tobin and Mr. Seickemeijer (as investor) noted that Mr. Dulin was a hired third party to perform the due dilligence tasks and vetting out of the company.
I told them no problem and I then sent them all the info they requested in a 22 item checklist to vet out the deal.

TO MY SUPRISE, they sent me a Letter of Interest THE NEXT

DAY for an equity investment deal of $22 million

dollars. THE LOI was very sophisticated AND NOTED THAT I

HAD TO PAY MR. DULIN $35,000 FOR DUE DILLIGENCE FEES (NON-

REFUNDABLE) EVEN AFTER WE HAD AGREED IN ATLANTA AND PRIOR

TO MY TRIP THAT THERE WOULD BE NO UPFRONT FEES IN THIS

TRANSACTION.

I then sent them a letter saying that we already agreed that there would be no upfront costs and very minor due dilligence. They said the $35,000 was mandatory to do the deal and was customary. They gave me the banking info to wire the money and said I had to do it as part of the offer.

I then took a step back and did some quick research on the Net and found prior reports about Ms. Forman and Mr. Tobin. To my surprise and dissapointment, they turned out to be a scam and most likely have never funded a deal.

I never paid the $35,000, but I did incur about $1,000 from the during our my dealings with them (mostly travel). I feel these people should be stopped and prosecuted to the fullest extent of the law.

I do hope others find these reports prior to taking any flights out to visit any of these individuals.

JUSTIN
SAN FRANCISCO, California

This report was posted on Ripoff Report on 11/14/2002 03:22 PM and is a permanent record located here: http://www.ripoffreport.com/r/UNIVERSAL-CORPORATE-ENTERPRISE-FINANCIAL/ATLANTA-Georgia-30328/UNIVERSAL-CORPORATE-ENTERPRISE-FINANCIAL-ANTHONY-TOBIN-BARBARA-FORMAN-EYAL-DULIN-NEIL-35194. 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:
0Author 6Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Suggestion

True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

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

To all entrepreneurs: Do not enter into a financing deal with upfront fees to your project. Treat such fees as a red-flag for fraud.

The common practice among venture capitalists is to recoup their transaction costs at closing. Every investor will perform a due diligence on your company; these are his costs of doing business. The reputable investor will assume these expenses, and will not recoup them if he (the investor) pulls out of the deal. VCs may, however, ask for "break-up" charges if the entrepreneur pulls out of the deal.

If asked to pay upfront fees, take the following action:

1. Politely refuse, but suggest that all transaction costs (including yous) be reimbursed at closing.

2. Negotiate a cap (maximum) you will pay for the investors cost upon either closing or break-up.

3. Make sure you are not obligated to pay any fees to the investor if he chooses not to fund your project!!!

4. If the investor refuses your suggestions above, report him to the Better Business Bureau and his state's regulatory agency as probable fraud.

Most important...do not take out your checkbook!
Respond to this report!
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#2 Consumer Suggestion

True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

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

To all entrepreneurs: Do not enter into a financing deal with upfront fees to your project. Treat such fees as a red-flag for fraud.

The common practice among venture capitalists is to recoup their transaction costs at closing. Every investor will perform a due diligence on your company; these are his costs of doing business. The reputable investor will assume these expenses, and will not recoup them if he (the investor) pulls out of the deal. VCs may, however, ask for "break-up" charges if the entrepreneur pulls out of the deal.

If asked to pay upfront fees, take the following action:

1. Politely refuse, but suggest that all transaction costs (including yous) be reimbursed at closing.

2. Negotiate a cap (maximum) you will pay for the investors cost upon either closing or break-up.

3. Make sure you are not obligated to pay any fees to the investor if he chooses not to fund your project!!!

4. If the investor refuses your suggestions above, report him to the Better Business Bureau and his state's regulatory agency as probable fraud.

Most important...do not take out your checkbook!
Respond to this report!
What's this?

#3 Consumer Suggestion

True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

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

To all entrepreneurs: Do not enter into a financing deal with upfront fees to your project. Treat such fees as a red-flag for fraud.

The common practice among venture capitalists is to recoup their transaction costs at closing. Every investor will perform a due diligence on your company; these are his costs of doing business. The reputable investor will assume these expenses, and will not recoup them if he (the investor) pulls out of the deal. VCs may, however, ask for "break-up" charges if the entrepreneur pulls out of the deal.

If asked to pay upfront fees, take the following action:

1. Politely refuse, but suggest that all transaction costs (including yous) be reimbursed at closing.

2. Negotiate a cap (maximum) you will pay for the investors cost upon either closing or break-up.

3. Make sure you are not obligated to pay any fees to the investor if he chooses not to fund your project!!!

4. If the investor refuses your suggestions above, report him to the Better Business Bureau and his state's regulatory agency as probable fraud.

Most important...do not take out your checkbook!
Respond to this report!
What's this?

#4 Consumer Suggestion

True VCs do not ask for upfront fees! Treat such fees as a red-flag for fraud.

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

To all entrepreneurs: Do not enter into a financing deal with upfront fees to your project. Treat such fees as a red-flag for fraud.

The common practice among venture capitalists is to recoup their transaction costs at closing. Every investor will perform a due diligence on your company; these are his costs of doing business. The reputable investor will assume these expenses, and will not recoup them if he (the investor) pulls out of the deal. VCs may, however, ask for "break-up" charges if the entrepreneur pulls out of the deal.

If asked to pay upfront fees, take the following action:

1. Politely refuse, but suggest that all transaction costs (including yous) be reimbursed at closing.

2. Negotiate a cap (maximum) you will pay for the investors cost upon either closing or break-up.

3. Make sure you are not obligated to pay any fees to the investor if he chooses not to fund your project!!!

4. If the investor refuses your suggestions above, report him to the Better Business Bureau and his state's regulatory agency as probable fraud.

Most important...do not take out your checkbook!
Respond to this report!
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#5 Consumer Comment

FRAUD ..A true equity investor would never ask for upfront fees..

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

These guys do NOT represent themselves are loan providers... they say they are EQUITY INVESTORS!!!! A true equity investor would never ask for upfront fees..

These guys should be in jail!
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#6 UPDATE Employee

Please prove me wrong, I beg you!

AUTHOR: Alan - (United States Minor Outlying Islands)

I am very intrigued by how many borrowers and brokers who think that there are lenders out there who do not charge up front fees. When I tell them about the up front fees on our loan programs, they say things like: "Reputable lenders don't charge up front fees". No up front fees, is how it is done in the financial world". "Upon approval of the loan or letter of
commitment then my client will pay all the fees". I have been in this business for quite a long time and I have heard this, countless times before.

It appears that there is a "myth" out there. I'm talking about the "Mythical Lender". You know who they are. They are the lender that does
not charge the borrower one dime in up front fees to close their loan. I have asked borrowers and brokers countless times, who is the lender that does not charge up front fees and no one has ever given me an answer. The
truth is, that they do not exist. But, maybe you would like to be the one to prove me wrong!

What is actually happening here is quite simple: There are a lot of borrowers with no money for fees who perpetuate this myth, because they want lenders to give them a free ride. Lenders have costs to underwrite a loan, do a site inspection, their own appraisals (not yours) and a lot of other due diligence. There is also considerable cost in blocking or setting aside the money to fund your project. Only about one in ten loans submitted to a lender ever closes. Should the lender bear all of these costs for the nine borrowers who thought they had a good project, but failed to prove for reasons too numerous to mention that they could repay the loan? Do these borrowers with a dream deserve a free ride?

All reputable lenders charge up front fees that are refunded or credited back at the closing of the loan. What would be the purpose of paying fees at closing, only to have them refunded minutes later?

I have often wondered that if what these borrowers and brokers say is true, why are they contacting me? Why are these borrowers and brokers not contacting that "Mythical Lender" who doesn't charge up front fees? I'll make it real easy for you. Again, I say they do not exist! Borrowers and brokers have been dreaming, because as I said earlier, they have no money.

They may indeed have a great project, but they have no money. Oh sure there are a few borrowers out there who might have money, but they have heard this "myth" so many times that they think
it is true. If it is true, why aren't they closing their loans with this "Mythical Lender?

Please prove me wrong, I beg you! Please tell me who this "Mythical Lender" is and I will send all of my business, through you to them! In fact
I predict that if you share with me their secret name, location and phone number, that I will help you become the wealthiest broker on the planet in a very short period of time!
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