Oleg Firer Net Element Theft - Fraud Miami Nationwide

In 2013 Net Element acquired Unified Payments which at the time was heavily in debt ($28 mil) after their CEO Oleg Firer went on a wild borrowing spree to claim #1 rank on INC500. That borrowing spree practically bankrupted Unified Payments,  Oleg Firer had no other choice but to allow Net Element acquire Unified Payments for $0.00 and consume their $28mil in debt. Although Oleg Firer was successful in negotiating almost 3 million shares of Net Element stock which triggers only when Net Element stock reaches $9 per share plus a comfortable salary + bonuses. 

 In 2013 Net Element was able to corner founders of Aptito mobile payments into acquisition. Aptito was used as bait to raise significant capital for Net Element. Aptito’s founders did not receive a single share for over 1.6 years and will shortly file lawsuit against Net Element and its CEO Oleg Firer for breach of contract, fraud, deceptive & unfair trade practices and copyright infringement of its mobile payments software. 

2013 - 2014:

Net Element was loosing money faster than they can print them and was forced to shut down their entertainment department and write of the losses. 

Things got even worse when original founders of TOT money bursted into Net Element Moscow office with guns. TOT money founders were also allegedly screwed by Net Element CEO and started new company by taking all of their employees  away from Net Element along with some of the largest accounts which took away some of the revenues away from Net Element.  

 Situation got so bad in 2013 that Net Element was unable to make payroll, pay its sales agents and developers. Many folks quit and Net Element was on a brink of bankruptcy. That’s when Oleg Firer made a desperate under the table move and borrowed millions from shady offshore characters by agreeing to convert debt into equity of Net Element shares shortly after loans were taken out. 

Oleg Firer was then able to raise the stock price from 0.88 cents to $5.75 practically overnight by dumbfounded press releases and secretly purchasing shares through 3’rd parties to continuously raise the stock price. Conveniently enough every insider cashed out between the short-lived stock inflation……….   (http://finance.yahoo.com/q/it?s=nete) 

Current events:

Net Elements current portfolio: 

Unified Payments - Credit card processing company. Revenues dropping since its glory days in 2012. High overhead in crowded and very competitive space. (Unified Payment pays its sales agents a $1000 bonus plus 20/80 split. Unified payments brakes even after 1.2 years with every account they acquire)

Tot Money - SMS payment company in Russia.  Very competitive space with about 13+ similar companies competing in the same market place.  

Many accounts along with former employees were lost due to dispute with former founders of TOT money.  Sanctions against Russia will make it difficult for TOT money revenue to be converted back to Nete. 

Aptito - Stolen software. (After 1.6 years Founders of Aptito have yet to receive a single share after purchasing agreement went into effect in June 2013.) EMV is not ready. Apple pay is not ready. 

Ruined relationships with sales agents for failure to pay their commissions.  Future Lawsuit from Aptito founders for breach of contract, fraud, deceptive & unfair trade practices and copyright infringement. 

Stiff competition from POS LAVU (13,000 accounts vs Aptito’s 50+)  Revel POS (10,000 accounts vs Aptito’s 50+) Breadcrumb POS (12,000 accounts vs Aptito’s 50+) Amazon newly acquired POS along with many other players who are in much better position with 1000+ sales agents, various API partnerships and better funding position than Net Element. 

Conclusion: Net Element transformed itself from technology company to merchant processing company in a very crowded space against industry giants with much larger pockets than Net Element. 

With continuous stock dilution (http://finance.yahoo.com/news/net-element-files-50-million-171300464.html) Net Element is digging a deeper hole for itself and their investors.  Shady debt conversions will continue to Decimate Nete stock.