• Report: #264136

Complaint Review: Solei Systems

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  • Submitted: Mon, July 30, 2007
  • Updated: Mon, March 24, 2008

  • Reported By:Omaha Nebraska
Solei Systems
761 Beta Drive Cleveland, Ohio U.S.A.

Solei Systems - Light Therapy Systems - Intelligent Tanning Systems ripoff Sold & Continuing to sell franchises which violate Business Opportuntity Fed & State laws Cleveland Ohio

*REBUTTAL Owner of company: Rebuttal

*Author of original report: Intelligent Tanning Systems - Solei Systems - Light Therapy Systems Continues to defraud investors

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This company through it's owner Paul Spivak sold me in Feb, 2007 an exclusive franchise opportunity for it's products to be sold in the states of Nebraska and Iowa. I invested my life savings of nearly $20,000 to buy this exclusive territory because the company was promoting itself through various franchise websites on the internet.

When I pointet out within 60 days that they had not provided the sales support, marketing and advertising support or product information that was promised to me, Mr. Paul Spivak cancelled my franchise and refused to refund my monies.

After speaking to an attorney I learned that the contract was totally in violation of the Federal and State Business Opportunity Act. Among other violations, he did not file disclosures, he promised income that he could not corroborate and did not give me a period to rescind the contract as required by law.

I have filed charges with the Ohio Attorney General's office, the BBB, the NE state dept of Banking and he has been instructed to rescind my contract and refund all of my monies plus expenses and legal fees. Mr. Spivak tells these agencies that he doesn't have to repay me because I slandered him! He ducks the calls and letters from all gov't agencies and either pretends that he didn't get the letters or that his attorney will call them back. The attorney never returns calls either. I have now been put in the position of having to find counsel in Ohio to file charges which has now cost me close to $8,000 to regain my $18,000 that he refuses to refund. I have learned that he has a history of bogus franchise deals under all kinds of names in Fl. PA, Ohio and has several judgements against him that he ignores.

Carol
Omaha, Nebraska
U.S.A.


This report was posted on Ripoff Report on 07/30/2007 11:21 AM and is a permanent record located here: http://www.ripoffreport.com/r/Solei-Systems/Cleveland-Ohio-44143/Solei-Systems-Light-Therapy-Systems-Intelligent-Tanning-Systems-ripoff-Sold-Continui-264136. 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 1Consumer 1Employee/Owner
Updates & Rebuttals

#1 REBUTTAL Owner of company

Rebuttal

AUTHOR: Paul Spivak - (U.S.A.)

To Whom It May Concern:

I am the president of Solei Systems which manufactures and distributes state-of-the-art beauty related machines. In order to market and sell our commercial-grade machines, we have entered into distributor agreements (not franchises) with a number of individuals who control exclusive territories. By contract, these master distributors are bound to sell a certain number of machines per year at the manufacturer's suggested retail price (MSRP). However, they may not publicly promote or advertise these machines on a national level at any price lower than the MSRP. National advertising is left to the manufacturer, which places advertisements in national trade magazines. All leads generated from this national marketing campaign are forwarded directly to the distributor in the relevant area.

On February 10th, 2007, Carol (the author of this alleged ripoff report) purchased one of these exclusive distributorships for the sum of $10,000. Shortly thereafter, Carol began advertising the machines below MSRP on a national level via the internet. This was a direct breach of the distributor agreement. Carol was promptly put on notice for violating her contract.

At this point, Carol demanded her initial investment of $10,000 returned plus a huge profit. Carol made these demands despite the fact that she failed to sell a single machine. I personally offered to return her initial investment of $10,000, but she refused, hired an attorney and countered that she now wanted $30,000 plus attorney's fees. The matter is currently being litigated and has yet to reach a resolution.

In conjunction with the litigation, Carol has also taken it upon herself to post defamatory statements on trade websites as well as this website, ripoffreport.com. Carol's actions have caused a tremendous amount of grief, aggravation and lost sales for our reputable distributors.

Carol's ripoff report skews the facts and makes unsubstantiated claims regarding her business relationship with Solei Systems and its President. The company and its president have kept open and honest communication with all of its distributors. At no time has the company changed addresses or phone numbers, and has promptly returned all phone calls to Carol up until litigation commenced.

Carol has attempted to harm the reputation of this large and reputable business by filing complaints with the BBB, the Ohio Attorney General's Office, and making unsubstantiated claims on several web sites, including this one.

Carol is more than welcome to post a copy of her contract on this site for all to see the truth of her accusations.

It is because of people like this that America's companies are manufacturing offshore and American jobs are being lost.

Paul Spivak
President
Solei Systems
Cleveland, Oh
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#2 Author of original report

Intelligent Tanning Systems - Solei Systems - Light Therapy Systems Continues to defraud investors

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

Intelligent Tanning Systems - Solei Systems - Paul Spivak - Light Therapy Systems Refuses to refund money he took from me and others for selling bogus franchise/distributorship is Chesterfield Or Cleveland Ohio

This is an update to my former report. Paul Spivak, owner, president continues to duck the Ohio Attorney General, NE State Banking Dept, Ohio Better Business Bureau and the attorneys who have served him with my lawsuit against him for selling me a franchise which violates the Business Opportunity Act - on both a State and FTC level.

Instead he has retained two 3 different lawyers who have attempted to countersue me for slander because I presented my accurate and unbiased complaint to the above agencies as well as reporting him on a website for his industry which includes a section for complaints against manufacturers who have demonstrated illegal or bad business practices. He has also accused me of slander and creating "tortureous interference of his business" because I reported him to the BBB and Ohio Attorney General!

These websites TanTalk.com and TanToday.com had and continue to have several complaints from others against this man as an individual for selling "bogus franchises" - this was posted a year before my complaint. There are other complaints against him on these websites for not honoring warranties on equipment he has managed to sell.

His newest attorneys have now contacted mine to say they no longer represent Paul Spivak or his companies in exactly the same manner that his previous lawyers have done. Furthermore, everytime my attorneys and the other agencies try to contact him - his address and phone number seems to change. Clearly he believes he is above the law and uses the system to avoid repaying monies that he has garnered using his questionable tactics to take people's savings with promises of doubling and tripleing their investments almost immediately.

I have been told that he continues to sell these distributorships and that there are other complaints against him which he is handling in the same manner by having lawyers file countersuits for slander and then the lawyers who file write to say they no longer represent him. I would love to speak to any media - whether I recoup my monies or not - this man and his companies continue in my opinion to practice shoddy and illegal business practices. I thought it prudent to update my previous complaint to warn others to make sure they get legal advice before entering into any kind of business arrangment with Paul Spivak of Solei Systems, Intelligent Tanning Systems, Light Therapy Systems and the myriad of other company names that he has used.

Carol
Omaha, Nebraska
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