ED Magedson – Founder
Biolustre, Inc.5504 Bandera Rd. Suite 408 San Antonio, Texas USA
Biolustre, Inc. Repeatedly Lied to, Financially Raped and Sodomized! San Antonio Texas
I am reproducing below, in a slightly edited and condensed form, a letter of complaint to the FBI written well over a year ago.
Dear [name of addressee],
I am writing this letter to address what I believe to be criminal misconduct by the executive leadership of Biolustre, Inc. of San Antonio, Texas. As a brief introduction, I am an elderly native Texan now shorn of his wealth and infirm with advanced diabetes and associated ailments.
The story of my disastrous involvement with Biolustre begins in March of 2010, when I made the acquaintance of Mr. John Hodge, Biolustre's Longview-based recruiting agent, whose task was to find investors willing to buy shares in a profitable, debt-free enterprise about to make its debut as a publicly traded company on London's PLUS Exchange. Or so I was assured by the confidant and ebullient Mr. Hodge, the son of a Baptist minister and a man of highest integrity (he assured me) who sang in his church's choir. But then I was assured, absolutely assured, of many things by the golden-tongued Mr. Hodge: that the company was not only quite profitable, but free, completely free, of debt; that the executive leadership had issued only 20 million shares of stock, and would under absolutely no conditions issue more; that the time to buy was now, right now, before the remaining "window of opportunity" closed completely; that Bioustre would open in London at a rock-bottom minimum value of $2 per share within two months' time (that is, by June of 2010 at the very latest); and that a big contract was just about to be signed with J.C. Penny to use and promote the Biolustre product nationwide in Penny's salons for ladies, a deal that was sure, absolutely sure, to drive the share price, once we were public, through the proverbial roof.
For my part, I naively believed these assurances, and stupidly invested the greater part of my life savings in Biolustre, intending thereby to secure the future financial well-being of my wife and children. So, beginning in April of 2010, I purchased in several installments a total of 1,100,000 shares at a total price of $360,000, making me ironically both a major shareholder in the company and an unwitting actor in the farce of my own ruin. In short, Mr. Hodge had done his job well, having cheerfully led me to the brink of the abyss, into which I had then cheerfully leapt. However, during the first several months of my involvement with the company I continued to believe the promises I was fed and the excuses I was given as to why things were not moving along as they should have. And of course there were always excuses: people in London were jacking us around, expected contracts with major distributors had not materialized, important people in Houston had let us down, etc., etc. But disillusion slowly crept in as I learned that without exception all of the promises alluded to above were hollow to the core, constituting as they did a fantastic tissue of outright lies and vague hopes whose overriding purpose was to lure unwary investors into parting with their money.
Let me elaborate a little. I had been assured in the strongest terms that the company was completely debt free, an ssurance which I had accepted at face value and which was a key reason for my decision to invest in the company in the first place. I subsequently learned that Biolustre owed an unpaid $400,000 note to another company, Hair Ventures, which had pressed for payment in court and had won its case. In Biolustre's most recent court appearance, on July 2 of this year , the presiding judge rendered a judgment of $850,000 against Biolustre, a judgment which the company appears wholly unable to pay. Thus I had been starkly lied to from the very beginning regarding the company's financial condition.
The company has been grossly mismanaged by its COO, Leonard Buchanan, and by its CEO, Michael Mata. It has come to my attention that these worthy gentlemen have used the company as their own personal piggy bank, spending its assets (such as they are) to fund junkets, buy cars, and pay for prostitutes. How were they able to afford such things, one may ask, when the company was struggling, and sometimes failing, to pay even its vendors and work staff? By clandestinely selling more and more stock, with neither the permission nor even the knowledge of other company shareholders!
Now that the entire scam is coming somewhat more widely to light--for I am hardly the company's only irate shareholder--the corporate leaders have turned against one another, Buchanan blaming Mata, and Mata blaming Buchanan. For his part, Hodge has now broken with the company and is claiming to have been duped himself. What the precise truth is in all its byzantine details I do not claim to know, as I am neither an attorney, nor an accountant, nor have I ever been privy to carefully guarded company records.
I will conclude by saying that I am well aware that accusations of wrongdoing in a letter like this one don't constitute proof of criminal activity, and that anyone can accuse anybody of anything--to no necessary legal effect. But it is also clear that criminals rarely if ever simply present themselves as such to the authorities. Before they can be brought to justice, culprits must first be thoroughly investigated and charged by those possessing the legal authority to do so--which I, as a now impoverished, sick old retiree, sadly lack. So I am writing to you, as one in authority who can do what I cannot. Investigate Biolustre, Inc., and discover for yourself its leadership's myriad abuses and crimes, so that justice may yet prevail and criminals may yet be punished! Hear the cry of an old man's anguished heart! I ask you, I beseech you, nay I BEG you to investigate this matter, so that others like me may be spared the shame and indignity of being sheared of their wealth by avaricious financial predators.
I remain much in the hope that your office will act, and attentive to your response.
This report was posted on Ripoff Report on 03/27/2014 06:48 PM and is a permanent record located here: http://www.ripoffreport.com/reports/biolustre-inc/san-antonio-texas-78238/biolustre-inc-repeatedly-lied-to-financially-raped-and-sodomized-san-antonio-texas-1134310. 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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