Privacy Note: Other than "Weston Gregory", all other last names have been removed.
Robert is reporting a Criminal Fraudulent Theft in the amount of $20,000 that was stolen by Weston Gregory (Weston) within the first 60 DAYS of a promised business venture that turned out to be nothing more then a sham.
As evidence of this theft, I (Robert) will be providing a transcript of two Recorded Phone Conversations that were made between Robert and Weston Gregory on July 6th, 2012.
Legal Note: The following Recorded Phone Conversations are in full compliance with Washington State law RCW 9.73.030
1) Weston Gregory has been the owner of HD Home Solutions, LLC since January 9th, 2009 & his personal address is: 9516 258th ST. E, Graham, WA 98338
2) Robert purchased 50% of HD Home Solutions, LLC from Weston Gregory on May 7th, 2012.
3) The definition of a Kiosk as mentioned throughout Robert and Weston Gregorys conversations is a small, (approximately 10x15) portable structure that is placed in a Mall, typically in the middle of an isle where shoppers commonly walk and is used as a main operating location for the company, in this case, HD Home Solutions, LLC.
4) The name DISH is referring to DISH Network LLC, a Satellite TV Provider.
5) The words Business or Company in the following conversations are referring to HD Home Solutions, LLC.
Quick Brief about Purchase:
By May 7th, 2012 Robert had paid $20,000 towards a 50% ownership of HD Home Solutions, LLC which currently only had one operating Kiosk located out of the SuperMall in Auburn, WA. Approximately $13,000 (out of the $20,000) was meant towards the cost to fabricate a second Kiosk & to put down a security deposit at the Westfield Capital Mall in Olympia, WA. The remaining $7,000 was meant ONLY for normal business expenses as outlined in the Operating Agreement, which was signed by both Robert and Weston Gregory.
The day before the recorded phone calls (July 5th, 2012):
Weston Gregory and Robert met for a regular business meeting. However, it was at this meeting when Robert became alarmed after Weston Gregory informed him (Robert) that HD Home Solutions, LLC had NO LIQUID cash! Robert was further alarmed when Weston Gregory stated that he (Weston) had taken $5,000 out of the company to pay off a personal debt. Weston Gregory then attempted to get Robert to invest more money into the company, which Robert refused to do. Weston Gregory then threatened Robert that he (Weston) would intentionally bankrupt the company.
First Phone Call was made on July 6th, 2012 at 4:12pm
1) Early into the conversation Robert questions Weston Gregory about the $5,000 he (Weston) took for personal reasons.
Notes: The following applies to all of Robert & Weston Gregorys quoted conversations.
1) When Weston Gregory or Robert says the word We, they are referring to Robert & Weston Gregory.
2) When Weston Gregory says the word my or I he is referring to himself, Weston.
3) When Weston Gregory says the word you he is referring to Robert.
4) When Robert says the word my or I he is referring to himself, Robert.
5) When Robert says the word you he is referring to Weston Gregory.
Robert: The one issue I have, I didnt know until yesterday and it is a concern because we didnt really talk about it, you just kind of dumped it on me was the $5,000 that you pulled out, um, to pay off a personal debt. I mean when, when was this done? How come we didnt talk about that?
Weston: Well heres the thing, when I told you I wanted $20,000 instead of $15,000 you asked me what, what it was for and I told you its personally for me and it doesnt, and I told you, I was saying it doesnt matter what it was for. Im selling my asset. So I am entitling myself to part of that cash. It wasnt just one place $5,000, okay. It was a couple things that I had opened that, I wanted to have a clean slate.
Ill be honest with you. Now, I could have just said hey f**k it, Ill take $20,000 and just run you know and close the business. I didnt. I have good faith, Ive been doing this business so long, Ive never given up. Ive been beat up, Ive been stepped on and Im still going. Im not a quitter, I never have been. However, I am in a different situation today. Ive been in the business for 4 years so people are expecting me, around me to be able to have certain things happening and you know the week Im in right now it doesnt look good. It doesnt. On, in all areas. It doesnt look good for any of us.
2) As the conversation continues, Robert questions Weston Gregory in regards to the DISH Kiosk program for the Westfield Capital Mall (located in Olympia, WA) and the request for Weston Gregory to put back in the $5,000 that he took out of the company.
Note regarding the Kiosk deal with DISH:
As told to Robert by Weston Gregory, he (Weston) and DISH have been working out a deal that started months before Robert purchased 50% of HD Home Solutions, LLC. The original deal with DISH as told to Robert by Weston Gregory (approximately one-to-two weeks before May 7th, 2012) was that DISH was offering to reimburse up to 80% of the cost to fabricate a Kiosk for the Westfield Capital Mall, and provide a $3,300 monthly rent re-imbursement for the first 6 months of rent. The approximate date Weston Gregory told Robert that he (Weston) planned to have the Westfield Capital Mall kiosk opened was within the first 2 weeks of July.
However, the main issue that Weston Gregory had in sealing this Kiosk deal with DISH was that he (Weston) was not able to pay approximately $13,000 that it would have cost him (Weston) to build this Kiosk and put down a security deposit at the Westfield Capital Mall.
To further clarify, DISH would only reimburse up to 80% after this Kiosk was already built and fully operational at the Westfield Capital Mall. However, the $2,500 security deposit was NOT going to be reimbursed by DISH. As told to Robert by Weston Gregory, this was the MAIN reason he (Weston) sought out a 50/50 partnership with Robert so that he (Robert) could contribute the necessary capital that would help finalize this Kiosk deal with DISH.
IMPORTANT LIQUID CASH NOTE:
On approximately June 6th, 2012 Weston Gregory informs Robert that there is GREAT news regarding our (Robert & Weston) Kiosk deal with DISH. Weston Gregory further explains to Robert that the NEW deal with DISH is that DISH will fabricate an entire $15,000 Kiosk and provide us (Robert & Weston) with a live Satellite feed, the only catch is that DISH will be the legal owners of this Kiosk. However, this was still great news since this now meant that both Robert and Weston Gregory no longer needed to tie up approximately $10,500 to fabricate a Kiosk, we now only needed to put down a $2,500 security deposit.
After Weston Gregory and Robert became aware of the GREAT news regarding the NEW kiosk deal with DISH, they (Robert & Weston) started making plans to open up a Kiosk at a 3rd mall (using the $10,500 LIQUID CASH) approximately 2-to-3 months after opening the 2nd Kiosk at the mall in Olympia (which was now getting pushed back to August 15th). There should have been $2,500 LIQUID CASH in our company for us to put down as a security deposit for the Mall in Olympia. There also should have been another $10,500 to go towards fabricating our own kiosk for the 3rd mall location. This means there should have been NO LESS than $13,000 LIQUID CASH in our company as of July 6th, 2012!
Robert: Did you talk to DISH? Are we still looking at least somewhat as a possibility for August 15th, putting the new Kiosk in Olympia?
Weston: I would love to say yes. I mean, with DISH its a for sure thing. Its just a matter of are we going to have the money to do it? I mean if they called me today and say hey youre green lighted go ahead and sign, I would have to say hey Ive got to put things on hold right now.
Robert: My only feeling on this is and we have time, it just kind of seems right uh, I wish we had discussed the $5,000 personal that you took out, if somehow you are able to secure a temporary $5,000 loan, looks like that is something that could be paid off before the end of the year. And that might be the very thing that could get us into that Kiosk in Olympia and um, save this business. I thought the $20,000 was going to be for strictly business. Ive got to tell my wife about that, so its going to be frustrating, kind of, explaining to her that I found out yesterday that 25% of it was taken out and then that could be a useful amount of money that
Weston: Well yeah, but she (Roberts Wife) should understand that understand that okay this guys (Weston), you know put his life into this business for the last 4 years and if hes (Weston), selling half of his (Weston), company and half of future profits, some of that money should be able to be available for me for whatever.
Robert: Which is only great if there is future profits, you know. So that, so thats the only concern that
Weston: Well obviously I couldnt predict it.
Robert: Well, I guess what I am saying is that it would be nice if there was a way that you could find some avenue to get that $5,000 back into the business and then I think that would that should be enough for what we need roughly for that Kiosk, you said $6,000 I guess but, but um
Weston: I was, I dont know man I was, kind of where Im at, is that I was just planning on talking with you when you get back. (Weston Gregory is referring to a pre-planned trip Robert had scheduled between July 8th, to July 17th) That will give me time to think about what I want to do.
3) As the conversation continues, Weston talks about his plans to throw in the towel when the DISH program falls apart.
Weston: The big thing is that the ship is going to sail on the DISH thing. When the ship sails on the DISH thing, thats the reason I am throwing in the towel it has nothing to do with anything else, other than that kiosk. Thats it. If I miss that kiosk, Im done. Im just letting you know.
Second Phone Call was made on July 6th, 2012 at 7:30pm
The following are comments made by Weston Gregory:
1) Ive already told Sprint, Ill start work for them August 1st managing 4 stores. Um, they called me today. They called me back, they want me bad. They want me to sign a contract with them and I said well let me I said give me a week or two to think about it, I told them, but count me in.
2) I didnt spend a penny more than $5,000 on myself.
3) Weston Gregory says the kiosk at the Supermall (Located in Auburn, WA) closed approximately June 21st, 2012 which is also about the same time Dan, (a hired contractor, who had worked with Weston Gregory for approximately 4 years.) stopped working for HD Home Solutions, LLC.
4) Ive already kind of made my decision Robert. Im not trying to like put a bunch of more time into this. Im trying to move on.
5) Weston Gregory says we need $6,000 to open the Kiosk at Westfield Capital Mall.
6) Where the mistake that I made is when I decided to sell, is when I decided to bring on a business partner. There was a couple of things that were important you know. But where I was at, was things were dead in the water at that moment too. The money you put in really helped get things going again, it really did. It truly did you know.
7) DISH really is dropping a golden egg on us. A $15,000 Kiosk. A live feed.
8) With DISH, you know when when they are like okay lets do it and sign you know Im, Im not going to be able to do it. Thats just, thats just where things are at. I dont know, I dont know a way to make that happen right now.
9) After Robert asks for Weston Gregory to put back in the $5,000 that he took out, he replies: I dont have a way to just go get $5,000 dollars dude. I dont have a way to do that.
10) When Robert asks if Dan was paid on Salary, Weston Gregory says: I didnt pay him on Salary. I just I paid him more than he had coming, absolutely.
11) After Weston Gregory said he originally wanted Dan as a partner, but didnt do it because Dan couldnt put skin in the game, Weston Gregory says: When you bought in. That first check you gave me for $5,000. I gave Dan $1,000 right out of that. Just as Dan, you helped build this company over the last 4 years and you disserve this $1,000 Dan. Plus I took care of Dan you know. Yeah, he never got like more than, you know $500 in a week man.
12) Right now, I mean, kind of where how I would prefer things to be, is just to be left alone for a couple of weeks. Because I have got to really figure out what I want to do and you are going to be on vacation anyways if you think about it and the last thing you need to be doing is when you are on vacation is stressing about this and if this doesnt work out for you, it is not the end of the world.
1) The following are the most notable actions that Robert and Weston Gregory are not allowed to do in accordance to the Operating Agreement, ARTICLE 4, Paragraph 4.2 which was signed by both Robert and Weston Gregory on May 7th, 2012:
(a) Use Company funds or assets other than to pay ordinary and necessary business expenses of the Company;
(b) Distribute Company cash or assets to the Members;
(c) Make any expenditure or incur any obligation on behalf of the Company involving an amount in excess of $2,500 for any transaction or series of related transactions;
(d) Do any act which would make it impossible to carry on the ordinary business of the Company, except as otherwise provided in this Agreement;
(e) Possess Company assets, or assign rights in specific Company assets, for other than a Company purpose;
2) Also included in the Operating Agreement is a list of Weston Gregory and Roberts Capital Contributions. The following is located under ARTICLE 3, Paragraph 3.1:
Initial Capital Contributions: Each Member shall make the following initial Capital Contributions and shall have the following percentage interest:
Members: Percentage Interest: Consideration Paid:
Weston Gregory 50% Services
Robert 50% $40,000.00
Weston Gregorys Capital Contributions consideration paid was made from the services of building the company up to where it currently was at, on May 7th, 2012.
Roberts Capital Contributions consideration paid was made by the $20,000 that he (Robert) put into the company on or before the date of May 7th, 2012 and by a promissory note for an additional $20,000 signed by Robert & Weston Gregory. The terms of the promissory note are that $5,000 is to be paid by September 1st, 2012 and that the remaining $15,000 is to be paid by February 1st, 2013. However, this is strictly contingent upon Weston Gregory paying Robert the greater of either $2,000 per month or 50% of the monthly profits for any month prior to February 28th, 2013.
Official Statement from Robert (7-16-2012):
With what I now know today, I honestly believe that Weston Gregory had no true intentions in running an honest 50/50 business partnership with me. I now am certain that this entire business deal was a big sham from the start and that Weston Gregory intentionally sought out a new business investor so he could deplete the money (embezzle), to pay off his own personal debts, bankrupt the company & then go pursue other business opportunities.
The following are key quotes from Weston Gregory:
1) I wouldnt be where I am at if I wasnt a sharp guy. Im not going to do recorded conversations when were in the middle of putting the company down.
2) Im not going to do all explain all of this stuff on recorded conversations so you can get incriminating stuff, so that you can then try to have some better case in court. Ive been down these roads, I know how it works, bud.
3) When I decided to sell, is when I decided to bring on a business partner.
Things were dead in the water at that moment too. The money you put in really helped get things going again, it really did. It truly did you know.
4) I didnt spend a penny more than $5,000 on myself.
5) I told you its personally for me and it doesnt, and I told you, I was saying it doesnt matter what it was for. Im selling my asset. So I am entitling myself to part of that cash. It wasnt just one place $5,000, okay. It was a couple things that I had opened that, I wanted to have a clean slate.
6) We dont have any liquid cash. Thats the problem. We have no liquid cash. So what that does is, heres Mill Creek Festival, you know I was talking to another vender today and he is all super excited about it, you know and I obviously want to do it and that one is on the 13th, 14th, 15th you know I dont want to miss out on that event, however I cant call in the day before with payment and say hey can I get into this event. And I mean obviously Ive been looking at any way possible to try to get some temporary cash without having to pay 25% interest like on a payday loan or something ridiculous. Which a payday loan wouldnt really cut it anyways, I mean its, it just is what it is man.
Note: The cost to get into the Mill Creek Festival for the 14th & 15th of July is only $325. This allows us to rent a full 10x20 space for Saturday & Sunday.
As of today (July 16th, 2012), my wife Heidi and I have lost a total of $20,000 to what we now know to have been nothing more then a big scam that was conspired by Weston Gregory so that he could pay off his previous debts.
Further more, as of July 7th, 2012 Weston Gregory has cut off ALL communication with us (Heidi and Robert). After not returning any of my phone calls that I made on the morning of July 7th, 2012, I received one last piece of communication from Weston Gregory in the form of a Text Message. Weston Gregorys text was in response to mine, which said:
From Robert: Hey, your mailbox is full. Hit me back soon. I have 2 small things I needed to tell you before I leave tomorrow.
From Weston: Unless youre planning on providing some operating capital dont even bother.
I also must add that I received from Weston Gregory a bad check that he (Weston) wrote on July 5th, 2012. This would have been my first profit sharing check that I would have gotten to keep and that was (according to our contract), due to me no later than July 7th, 2012. However, under the date Weston Gregory wrote the year 2011, which means the banks will NOT cash it. I do realize even though I cant prove that he did this intentionally, I can prove that I made him clearly aware of this issue during our July 6th, 2012 phone call and as of July 7th, 2012 he has completely cut off ALL communication with me and has made no effort to correct the date on the check. Further, I must add that he wrote this check after admitting to me that there were no funds in the account (which means the bank would have denied it anyways). The amount of this check was for $2,000. (Update: I was able to cash this check on July 17th, 2012. It initially went through but then bounced a few days later for NSF. As of September 28th, 2012 I still havent received a new check from Weston Gregory)
Of course, the bad check is the last of my concerns. I now fear that Weston Gregory intends to sell off the remaining company assets right before intentionally bankrupting the company as an attempt to free himself from any obligation to pay back the $20,000 that I initially put into the company.
Weston Gregorys actions from the beginning of our business deal prove that he never had ANY true intentions to honor or uphold our contract in any way, shape or form. It is also our (Robert & Heidi) strong belief that Weston Gregory is attempting to use the LLC as a way to avoid being tried for fraud in criminal court.
Please keep in mind that just about everything described in this letter took place between May 7th to July 7th, 2012. From day one, Weston Gregory never seemed to care that there was an actual contract that he signed with me. In Weston Gregorys own words, he really didnt waste ANY TIME stealing money out of the initial $20,000 that I put into the company, which was to be used strictly for Business Purposes Only:
1) The following is the very first thing Weston Gregory says he did when he received the first
Weston: When you bought in. That first check you gave me for $5,000. I gave Dan $1,000 right out of that.
2) Weston Gregory also admits to taking $5,000 for himself!
Weston: I didnt spend a penny more than $5,000 on myself. I am entitling myself to part of that cash (again, hes referring to the initial $20,000 I put into the company).
After hearing this quote from Weston Gregory: Ive been down these roads, I know how it works, bud. I did some research and found out that Weston Gregory has in fact been down these roads before In 2010, Weston Gregory and his company HD Home Solutions, LLC was sued by James (Last name removed for privacy) for the amount of $25,000. The reason for this lawsuit was for a Breach of Contract!
In this case, James was to purchase a vender booth for $10,000 at the Puyallup Fair that was to be occupied by Weston Gregory so that he (Weston) could Procure Satellite TV Orders on behalf of James. Also in accordance to their contract, James was to ship to Weston Gregory equipment for these sales. At the end of the 17-day fair, Weston Gregory did NOT turn in one sale, lead or ANY MONEY and refused to return the equipment back to James. As a result, James sued Weston Gregory and was rewarded a $25,000 judgment against Weston Gregory (Pierce
County Superior Court Civil Case # 10-2-07771-1).
Within the first 60 DAYS Weston Gregory has managed to deplete the entire $20,000 and has now cut off FULL communication with us (Robert & Heidi). My wife, Heidi, and I are seeking a criminal investigation into this matter because we fully believe that Weston Gregory never actually intended to run an honest 50/50 partnership. We are certain that this entire business deal was a sham from the start and that Weston Gregory intentionally sought out a new business investor so he could illegally divert funds to pay off his own personal debts. We also STRONGLY believe that Weston Gregory will continue to attempt more schemes like this that will go on to further victimize more people unless we successfully have Weston Gregory brought to justice in a Criminal Court of Law.