Franklin Mint owner: We want our money back
The latest owner of Franklin Mint says it was robbed by the previous owner, which it says exaggerated sales
Franklin Mint owner: We want our money back
Joseph N. DiStefano
The latest owners of Franklin Mint, the (formerly Wawa-, now Exton-based) "collectibles" company that once employs thousands, are charging fraud against the previous owners who sold them the company for a $16 million investment last year.
JSSI Capital Enterprises LLC, Miami, blames its losses on "false" financial statements in the sellers' "wholly fabricated" business plan that overstated sales by more than half, "grossly" exaggerated its past advertising and the quality of its computer systems, and also exaggerated Franklin Mint's relationships with TV shopping channel QVC of West Chester, motorcycle maker Harley-Davidson, Publisher's Clearing House and other clients, according to a New York State lawsuit. See the complaint here.
JSSI Capital Enterprises LLC bought Franklin Mint and the affiliated Morgan Mint last year. Bloomberg reports JSSI's suit against sellers Moshe Malamud, Sam Malamud and Steven Sisskind seeks "more than $12.6 million in damages, the rescission of $4 million in promissory notes assumed in the deal and the return of $1.975 million paid to two defendants." Case is Franklin Mint LLC v. Franklin Mint Inc., New York Supreme Court (NYC) 652386-2010
I guess these guys never heard of due diligence.
"Franklin Mint owner: We want our money back:. So do the million people who bought your worthless garbage. Idiots. You bought the "Franklin Mint" version of a real business.— CiceroSpuriousDeodatus
Yes, that's right, the Federal Government is offering profitable, newly recapitalized businesses that have been hand picked by the US Secretary of Commerce, Treasury and the Federal Reserve. These hand picked business are guaranteed to be solvent, bankruptcy remote and profitable! You would normally pay $1BB for a biz like this, but if you call right now, and pay in all cash money, you can have your own, authentic, not restored, collectible enterprise that is a virtual geyser of cash flow, the famous buzz word you normally hear the smart money whispering to one another just beyond your reach. But not today, for only $16Million, you did say you had that much, for only $15Million, you can have this beauty. Yesssireee, it is your lucky day. And how does Federal Government do it? VOLUME!- I purchased coins from the morgan mint as (BU) costing thousands. Low and behold not one is (BU). A 1928 (P) peace dollar had the mint mark (S) removed. (counterfeit). All others we're either waxed, cleaned or polished. Where is my JUSTICE?— rich lapikas
