WholesaleAuction.com - Wholesale Auction RIPOFF - WholesaleAuction.com STOLE $10,000 from Customer - Kept Returned Parts! (WholesaleAuction.com, Wholesale Auction, Whole Sale Auction) Oceanside California

Evertek welcomes websites like ripoff.com that allow individuals and companies speak openly about sales and customer service issues and allow each party to present their facts. Having been in business for over 15 years we've seen our share of fraudulent companies AND customers and realize that honesty and integrity are always the long term winners in these situations. We are also confident that readers of these forums are intelligent and can easily form reasonable opinions of truth when facts are presented from both sides. Freedom of speech awards all concerned parties the opportunity to express the truth. Thank you ripoffReport.com

Our Rubuttal:

The purpose of these document is to outline the series of events in which Evertek Computer Corporation was defrauded by Kent Nelson of Modems Unlimited / Action Parcel, and show that Evertek took legitimate legal actions to recoup monies owed by Kent Nelson.

Evertek Background:
Evertek is one of the world's largest wholesalers of closeout and excess computer systems, parts and consumer electronics. Evertek has been in business since 1990 and has an excellent standing with the Better Business Bureau, is listed as one of the countries TOP 25 Distributors by the VAR Business Magazine (#23 2005 ranking), and continues to be a well respected company by it's peers. We run our business with a high degree of integrity and wish to do business with companies who do the same. We do not possess a tolerance for those who wish to defraud our company or those who chose to act dishonestly in their business dealings with us.

Evertek BBB History:
BBB online will show that we have had 1 complaint filed in the last 12 months. It will also show there were 6 complaints filed in the last 36 months ALL have been resolved. Evertek sales for that 3 year period are close to $300Million.

What Kent Nelson neglected to tell you:
Mr. Nelson states that he feels our company had held his money without cause (as he phrases it, Our Sad Story), but he neglects to disclose that he provided us with BAD CHECKS, paid with FRAUDULENT CERTIFIED CHECKS, ordered from us under a FALSE IDENTITY and DEFAULTED on his payment plan he had agreed upon to pay his BAD DEBT.

Microsoft Counterfeit Case against Kent Nelson:
We are not alone in companies that have been affected by Kent Nelson's less than above board dealings as Microsoft filed an Internet piracy civil case against Happy Beagle Marketing (also known as Modems Unlimited) of Washington and Bloomington, Illinois, for alleged distribution of counterfeit Microsoft Office 97 Professional and Windows 98 through www.fastmodems.com. Civil case number 01-1145, in the Central District of Illinois, Peoria Division.

http://www.microsoft.com/oem/piracy898.asp

Kent Nelson Banned from Ebay / PayPal (FastModems.com / Modems Unlimited)
Kent Nelson was banned from Ebay and PayPal. To see the true colors of Kent Nelson all one has to do is read the customer complaints on resellerratings.com

http://www.resellerratings.com/seller1967.html

FBI Internet Fraud Case against Kent Nelson (FastModems.com / Modems Unlimited)
Although we do not have the exact details, it has been documented that the FBI had opened up an investigation of suspected Internet Fraud against Kent Nelson. We were contacted directly by the FBI, debriefed on the investigation and questioned in regards to the case. Others defrauded by Kent Nelson and his companies are encouraged to contact the FBI Internet Fraud Division to file an official complaint.

http://www1.ifccfbi.gov/index.asp


Below we'd like to outline the factual series of events to give readers OUR side of the story so they can better understand the steps we were forced to take in order to protect our interests and collect that debt that was owed to us by Kent Nelson.

Sept 11 1998:
Kent Nelson (Modems Unlimited) sets up an account with Evertek in September of 1998.

Nov 5, 1998
Evertek ships Modem Unlimited order 34460 $23,403.72 with COD Cashiers Check terms.

Nov 25, 1998
Evertek receives a courtesy call from our bank that check #3383 for $23,404.72 will be returned to us unpaid (Cashier Check bounced)

Nov 25, 1998
Evertek calls Kent Nelson to inform him that the Cashier Check was not being honored. Kent informs Evertek that he is confused on why not and said he will contact his bank. Kent assures Evertek that the check was certified and will wire funds to Evertek.

Nov 28, 1998
Evertek received check #3383 back from the bank and discovers that the check is a COMPANY CHECK with a stamp that says, Happy Beagle Certified (no, we're not kidding). Apparently Happy Beagle Marketing was another company name that Kent Nelson used as it was also a DBA on his company check.

We call Kent Nelson to confront him with our finding and now he pleads ignorance by saying that he personally certifies his own checks. (as noted with the Happy Beagle stamp.)

Evertek contacts First Federal Savings (309) 663-6340 (the Bank the check is drawn on), and speak to Mary Lou who confirms that they do not certify checks with a stampand that the Modems Unlimited account had a history of NSFs.

Evertek places Modems Unlimited account on hold until payment for NSF check is received.

Dec 1998
Kent Nelson wires monies to cover NSF checks.
Account released off hold and payment terms changed to PREPAID wire transfer.

Dec 1998
Action Parcel opens account with Evertek Owner stated as Marshall Werry on application. (becomes know by Evertek in May of 1999 that Action Parcel works with Modems Unlimited as a fulfillment center for Kent Nelsons internet businesses)

Jan-July 1999
Evertek and Modems Unlimited continue doing good business and both are enjoying a healthy working relationship without any problems. Evertek reinstates COD terms.

May 27th, 1999
Evertek notes that Action Parcel has a 3rd party relationship with Modems Unlimited as fulfillment center and on several occasions Evertek ships Modems Unlimited orders directly to Action Parcel as a convenience to Modems Unlimited.

July 1999
Evertek structures a large sale of digital cameras totaling $82,804.29 to Modems Unlimited in which Kent Nelson agrees to pay with a series of 5 company checks that will be pre-sent to Evertek and that would be deposited at mutually agreed upon dates.

Evertek ships digital cameras to Modems Unlimited.

July 15, 1999
Evertek deposits 1st check #5865 for $16,560.84

July 22, 1999
Evertek deposits 2nd check #5866 for $16,560.84

July 29, 1999
Evertek deposits 3rd check #5867 for $16,560.84

Aug 5, 1999
Evertek deposits 4th check #5868 for $16,560.84

Aug 10 1999
Evertek receives courtesy call from our bank that check #5868 for $16,560.84 has not cleared upon first presentation, but bank will redeposit.

Evertek calls Kent Nelson to inform him check did not clear and to take actions to ensure it clears upon 2nd presentation.

Aug 30, 1999
Evertek deposits 5th check #5869 for $16,560.84

Sept 2, 1999 Evertek receives courtesy call from our bank that a second check #5869 for $16,560.84 has not cleared upon first presentation, but bank will redeposit.

Sept 3, 1999
Evertek contacts Kent Nelson and Kent assures us that check will clear on 2nd presentation.

Sept 8, 1999
Evertek gets official notification from our bank that check #5869 has been redeposited and check DOES clear upon second presentation.

Sept 28, 1999
Check #5868 for $16,560.84 does NOT clear upon 2nd presentation so Evertek calls and emails Kent to request wire transfer payment to cover the NSF check.

Sept 29, 1999
Modems Unlimited account is placed on HOLD pending payment of NSF check.

Oct 1-31, 1999
Made numerous attempts to collect debt to cover Check #5868 for $16,560.84, but attempts are unsuccessful.

Nov 3, 1999
Still attempting to collect on Check #5868 for $16,560.84

Nov 5, 1999
Receive email from Kent Nelson saying that he's working on a secondary credit line to cover the NSF.

Nov 12, 1999
Receive email from Kent Nelson stating that he's days away from locking up the secondary credit line and thanks us for bearing with him.

Nov 17, 1999
Evertek sends email to Kent asking status / no response.

Nov 29, 1999
Evertek sends email to Kent asking status / no response.

Dec 3, 1999
Evertek sends email to Kent asking for product back so we can retire the debt / no response.

Dec 13, 1999
Evertek sends demand letter to recover debt from Check #5868 for $16,560.84

Dec 17, 1999
Evertek sends second proposal to get product back from Modems Unlimited so we can resell in order to retire the Modem Unlimited debt. / no action taken.

Jan 6, 2000
Evertek emails on a repayment proposal to Modems Unlimited. / no response

Jan 11, 2000
Kent complains that he is broke despite a busy internet business and re-negotiates repayment plan down to $200/wk. Evertek reluctantly accepts the plan as all other attempts to collect have been unsuccessful. With current plan, it will take 83 weeks (about 21 months) to retire the debt.

Mar 27, 2000
Becomes apparent that Action Parcel is purchasing from Evertek FOR Modems Unlimited.

Although this practice by Kent Nelson is ethically questionable (if you have enough to buy products through Action Parcel why can't you pay us the money you owe us?), we note the issue, but allow Action Parcel to continue buying.

Aug 18, 2000
Unbeknownst to Evertek, Kent Nelson and his wife Janine (Happy Beagle Marketing, Inc) purchase Action Parcel from Marshall E. Werry and his wife Delores J. Werry for the sum of $125,000. The terms of the sale are based on monthly payments of $3941.03 per month from October 1, 2000 to August 1, 2005, and a final payment on September 1, 2005, in the amount of $25,000.

Evertek is NOT notified about the ownership change by Marshall Werry nor Kent Nelson.

Sept 2000
Modems Unlimited account remains on hold until NSF debt is retired.

Jan 00-Feb 01
Receive $200/wk payments on a fairly regular basis, most payments on time although there are some instances where several weeks went by without a payment and Kent would double and triple up payments to remain on schedule.

Nov 28, 2000
Evertek customer service rep gets an email from Marshall Werry stating that he is still receiving Evertek order confirmation emails to his email address m.weery@gte.net account although he is no longer the principal or affiliated in anyway with Action Parcel. Marshall gives us the email address for Andrew Hoffman ahoff@mtco.com who is one of the new contacts at Action Parcel. Marshall Werry does NOT inform us that Kent Nelson is the new owner. Because there have been no negative issues with Action Parcel, the account is allowed to remain open during the account update process as we request the new owner information.

Jan 2001
In a conversation with the Evertek sales rep, Action Parcel employee Andrew Hoffman accidentally lets it slip that Kent Nelson is now the new owner of Action Parcel. (Evertek sales rep reports finding to upper management)

Jan 2001
Evertek contacts Marshall Werry to confirm that Kent Nelson is new owner. Marshall confirms and also mentions that Kent is behind on his payments to purchase the Action Parcel business.

Jan 2001
Evertek reviews situation with their legal counsel to determine best way to protect current interest and collect outstanding Modems Unlimited debt in lieu of Kent Nelson's attempted deception involving the Action Parcel account. Had we know earlier that Kent Nelson owned Action Parcel we would have certainly put that account on HOLD until the Modems Unlimited debt was retired.

Feb 28, 2001
Andrew Hoffman calls to request the return 440pcs of a 52x CD rom and to reorder 440pcs of a different brand CD Rom. Evertek agrees to take back the drives.
(RMA 02281535 dated Feb 21, 2001)

March 8, 2001
Action Parcel account put on HOLD pending investigation by our legal department.

March 2001
Evertek credits Action Parcel returned CD Roms from RMA 02281535 for $9790.00
Action Parcel account remains on HOLD.

April, 2001
End user complaints about Modems Unlimited continue to pour onto rating sites like resellerratings.com and ebay feedback. Rumors of FBI internet fraud investigation of Modems Unlimited begin to circulate.

Apr 14, 2001
Evertek receives payment of $400 from Modems Unlimited, remaining balance $3815.84 (this is the last check Evertek receives on the NSF repayment agreement).

Aug 6, 2002
Evertek makes random sales call to Action Parcel but finds phone number 309 663 2222 is disconnected. Credit balance of $9790 remains on Action Parcel account.

Sept 27, 2002
Kent Nelson contacts Doug Allen (Marketing Manager) and now claims that he acquired Action Parcel a few months ago and would like to collect any outstanding balance due to them. Doug Allen asks Kent Nelson to FAX in documentation to prove that he acquired Action Parcel and at that time Evertek would calculate the interest on the debt, NSF fees, and reasonable collection fees associated with the Modems Unlimited NSF. At this point it had been over a year since we had received any payment from Modems Unlimited, and at no point prior to Sept 27, 2002 had Kent Nelson ever contacted Evertek as Action Parcel.

Kent Nelson does NOT FAX in documentation to prove ownership.

(This must be the conversation Kent Nelson talks about in ripoff.com where we ridicule him and tell him that we're going to STEAL his money. I can assure you that the conversation went exactly as it's stated in the above paragraph as I was the one in the conversation.)

Apr 1, 2004
Kent Nelson contacts Doug Allen again to try and collect the Action Parcel balance. This time he references the postings he's made on ripoffreport.com. Again we ask him to provide the prove of ownership we requested 2 years earlier and this time he responds by FAXing in the ownership documents dated August 18, 2000. Not only did these documents prove that he was the owner of Action Parcel, but they also proved that he had knowledgably ordered from Evertek as Action Parcel at the same time his Modems Unlimited account remained on HOLD due to unpaid debt.

Apr 7, 2004
Evertek overnights refund payment to Kent Nelson of the Action Parcel credit balance less unpaid the Modems Unlimited debt.

May 2004
Evertek is contacted by the FBI regarding an ongoing investigating of Kent Nelson (fastmodems.com / Modems Unlimited) on charges relating to internet fraud. Evertek complies with document requests and answers all questions.

Oct 2005
Evertek decides to post a rebuttal to Kent Nelson's accusations on ripoffreport.com in order to present the actual facts surrounding his accounts.

Nov 2005
Evertek sets all time 3Q sales record and continues to provide their customers with highly profitable products, an easy-to-use website and an extremely courteous sales and support staff. Annual sales exceed $100Million and Evertek now shipping to over 100 countries worldwide.