HORIZON CORRESPONDENCE AND RESPONSE
FENNEMORE CRAIG, P.C.
Nicolas B. Hoskins
Direct Fax: (602) 916-5619
thoskins@fclaw.com
June 12, 2009
VIA HAND DELIVERY
& CERTIFIED MAIL (RRR)
Brian Hessler
Business Recovery Services, LLC
1551 W. Crescent Aye-
Re: DEMAND TO CEASE & DESIST: Inducement and Facilitation of
Fraudulent Chargebacks Concerning Horizon Technologies, Inc.
Dear Mr. Hessler:
Fennemore Craig, P.C. represents PowerPay, LLC (“PowerPay”) in connection with its contractual relationship with Horizon Technologies, L.L.C. (“Horizon”). PowerPay provides merchant credit card processing services, and in particular provided those services to Horizon in connection with its business. As a consequence of that relationship, PowerPay is responsible for making payments to credit card providers when card customers make claims for chargebacks.
We are informed that you and your organization are soliciting former Horizon customers to make chargeback claims to their credit card providers. We are further informed that you are facilitating or otherwise inducing these chargeback claimants in making false statements in order to secure refunds to which those customers are not entitled. This conduct is causing PowerPay considerable harm.
As such, PowerPay hereby makes demand that you and Business Recovery Services, LLC immediately cease all actions to solicit chargeback complaints against Horizon, or to otherwise assist in the preparation of chargeback complaints against Horizon. PowerPay further demands that you provide written verification of your compliance within ten (10) days of this correspondence. Failure to comply may result in PowerPay pursuing further legal action against
you and Business Recovery Services, LLC.
FENNEMORE CRAIG, P.C.
Brian Hessler
June 12, 2009
Page 2
We trust that you and Business Recovery Services, LLC will responsibly consider this demand. We look forward to your timely response.
Sincerely,
FENNEMORE CRAIG, P.C.
Nicolas B. Hoskins
NBH/ssi
2205987
Law Offices of Michael E. St. George
A PROFESSIONAL CORPORATION
ATTORNEY-AT-LAW
Admitted in
(480) 968-0436 FAX 440 E. Southern Avenue
stgeorge@stgeorgeIaw.com
June 27, 2009
Nicolas B. Hoskins
3003 n.
Re: Business Recovery Services, LLC
Dear Mr. Hoskins:
This office represents Business Recovery Services, LLC. Your letter of June 12th, 2009 has been forwarded to me for response.
We are surprised that Powerpay, LLC would step outside the chargeback process in order to attempt to halt legitimate chargebacks. As a credit card processing servicer I am sure you are aware that your client has agreed with both Visa and Mastercard to abide by their chargeback process requirements. All the chargebacks that have been obtained by my client on behalf of its customers have been obtained by following such requirements. Making this demand is outside that process.
Further, your client is responsible for losses suffered through chargebacks occasioned by unscrupulous marketers of misleading and worthless products. It is also responsible for merchant chargebacks even when the merchant is unable to honor such chargebacks. With the closing of Horizon Technologies, LLC that obligation may well fall on your client. It is a risk that your client assumed.
According to the Better Business Bureau, Horizon Technologies, LLC is a subsidiary of Net Direct Marketing, LLC. A common principal to both entities was or is Chester Frank Bissett, who recently has plead guilty to fraudulent conduct with respect to selling websites that sell GPS devices and seller- assisted marketing programs that promote the website. He awaits sentencing. Another Net Direct Marketing, LLC principal, Paul David Angel, also pled guilty to fraudulent conduct with respect to selling websites that sell GPS devices and seller-assisted marketing programs that promote the website. He also awaits sentencing. Ironically, according to the Arizona Corporation Commission, the last name of the members on record for Horizon Technologies, LLC is Angel.
Under both VISA and Mastercard USA Operating Regulations, your client had an obligation to perform a thorough investigation of Horizon Technologies, LLC before accepting Horizon Technologies, LLC as a merchant. Powerpay, LLC elected to assume the risk of processing Horizon Technologies, LLC’s VISA and Mastercard sales and must look to Horizon Technologies, LLC for recompense.
My client has made and makes no misstatements, at any time, to anyone, in order to facilitate its customers obtaining chargebacks (refunds). This is categorically denied, and strict proof is demanded of such allegations. We demand to know who said such false statements have been made. We will investigate every allegation. Please provide all necessary information to this office for a complete investigation at your earliest convenience.
My client, accordingly, declines your demand that they Cease and Desist. After receiving the requested information and investigating same, we will further respond to your letter
Thank you.
Sincerely,
Michael E. St. George
