American Entertainment Distributors ripoff No one answers the phones and their web site is down. Hollywood Florida

Latest from Linda Mulhall this morning 10/14---

The results of the hearing today are as follows:
The Temporary Restraining Order was extended for 2 weeks because one of the defendants has not obtained counsel as of today.

There will be another hearing in the next 2 weeks - I will send another email with the exact date.

Phone calls - I am sorry if I have been slow responding to your phone calls. It is easier for me to respond to emails.

I will keep you posted.

Linda Mulhall
Legal Assistant
Murai Wald Biondo & Moreno, P.A.

Her email is lmulhall@mwbm.com

Public Statement
October 11, 2004

Riello Technoware Engineering S.p.A. (Riello) is a company in Italy that manufactures dispensers of various media products such as DVDs.
Automated Entertainment Dispensers, Inc. (AED I) purchased dispensers from Riello in Italy. AED I was responsible for any and all marketing, selling, installing and providing of technical support services to customers in the United States. Riello has been informed that AED I contracted with American Entertainment Distributors, Inc. (AED II) and Universal Technical Support, Inc. (UTS) to perform marketing, sales, installation and technical support services to the customers in the United States. AED I, AED II and UTS are all Florida corporations (the Companies). Riello does not have any contractual obligation with any of the Companies other than the supply of products to AED I and the training of its technicians. The contract between Riello and AED I specifically excludes any involvement or responsibility as to the marketing, selling, installation and technical support of its products in the United States.

Riello has no outstanding orders with AED I. Riello delivered to AED I all dispensers that were ordered by AED I. Except for orders from AED I, Riello did not accept any orders from any other person in the United States. There are no other Riellos authorized distributors, resellers and technical support firms in the United States at this time.

On October 1, 2004, Riello was made aware that the Companies were seized by the FTC pursuant to an order by Federal Court in Dade County, Florida. The FTC is alleging a variety of claims against various parties, including the Companies. A related criminal investigation of various parties by the US Postal Service is also pending. The FTC has confirmed that neither Riello nor its USA consultant Lilia, Inc., is a party to any of these claims or investigations.
Subsequent to the FTC seizing the Companies, Riello has been informed of various alleged wrongful marketing and sales tactics on the part of various parties. Riello is without sufficient information to determine whether the FTCs allegations are true. To the extent any wrongful acts were committed, Riello was unaware of those activities. Riello will, to the extent possible under the principals of international law, fully cooperate with the ongoing FTC investigation.
Riello has been informed by the Court appointed receiver of the Companies that the likelihood whether the Companies remain operating business concerns will depend upon the outcome of a hearing before the Federal Court scheduled for October 8, 2004. The purpose of the scheduled hearing is to determine whether the current Court order that restrains the Companies from conducting business should remain in place. If Federal Court determines to keep the order in place, the appointed receiver has informed Riello that he will take actions to liquidate the Companies.

On October 8 the Court decided to postpone the hearing to October 13 because some of the defendants did not have legal representation. When the Court decision will be made available, Riello will release a new statement with updated information.

Riello fulfilled all of its orders from the Companies prior to it learning of the FTC seizure of the Companies. Riello has no outstanding orders from the Companies. Until such time as the issues surrounding the allegations made by the FTC against the Companies are resolved, Riello will not accept any orders from any person or entity within the United States for its goods and services pending outcome of the above described matter.

For all other inquiries regarding this matter, we recommend that you contact the Court appointed receiver for the Companies.

I just spoke with Ingram Entertainment's AED rep. He said that his 'feeling' was that there was indeed some issue with AED but from what he could sniff out that it would most likely be temporary. They have indeed been told not to do ANY business until the issue at hand is settled......but still, who knows.

It would appear that the issue in not necessarily bankruptcy.

He said he has worked with AED and their distributors (he is the center point of the 'new guy' conference call) for about a year and that the company has had a good reputation with the BBB and with Ingram.