Complaint Review: Financing Alternatives Inc.

MICHAEL SHRADER, KURT DINKELACKER, WALTER (WALT) POLLARD, JAVIER PALOMAREZ, STEVE HAMILTON, AND OTHERS IMPLICATED IN FAILURE OF CONSUMER FINANCE COMPANY FINANCING ALTERNATIVES INC. CHESAPEAKE VIRGINIA

NEW FACTS REVEAL FINANCING ALTERNATIVES INSIDERS COMPLICITY GREED AND
BETRAYAL IN COLLAPSE.

COMPETING BUSINESS WAS CREATED BY OFFICERS OF FAI WHILE EMPLOYED BY THE COMPANY DURING ATTORNEY GENERAL INVESTIGATION. STOLEN BUSINESS METHODS AND SECRETS USED TO FORM NEW COMPANY.


Financing Alternatives hired Michael J Shrader as CEO in September 2005.

Shrader controlled the company from September 2005 until September 2007 decided who to hire and how much to pay, who to ship, how to use the company funds, business plans etc.

Kurt Dinkelacker CFO is a personal friend of Shrader, and a former direct report to Shrader at Telespectrum. He was hired by Shrader at FAI for $235,000.00 per year in 2005, soon after they both became "unemployed" from Telespectrum (renamed TRG Solutions after Telespectrum insolvency during their employmemt).

Google Kurt Dinkelacker and Michael Shrader. There is plenty to read.

In early 2006, after failing to meet sales and revenue projections, Shrader began to intentionally "delay" shipping product by allocating money coming in from customers to other "expenses". This quickly resulted in a backlog of undelivered computers and angry customers.

As complaints began to rise, Shrader, Dinkelacker and Walt Pollard concocted a scheme where they mailed a "shipping delay letter" to customers blaming their delay in receiving product on "internal computer upgrades".

As evidenced in court documents, this letter (approved and signed by Michael Shrader) was a carefully crafted lie to the unwitting consumers. There were no internal computer upgrades delaying product shipments. This bogus "shipping delay letter" was mailed to thousands of customers through most of 2006.

In 2006 and 2007, as revenues continued to slide, an increasingly larger portion of the company's cash was allowed by Shrader and Dinkelacker to be spent on disproportionate salaries for a handful of executives and managers.

Meanwhile, these same execs were vigorously eliminating lower level positions, and authorizing further product delivery delays.

Ironically, many of those receiving large paychecks were recruited, hired and retained to manage and improve the company's prospects. It is now commonly believed that Shrader and Dinkelacker kept the senior management team intact primarily to benefit of a business similar to FAI now owned anonymously by Shrader and Dinkelacker.

In January 2007, Shrader increased his base to $400,000.00 per year, while customers were still not receiving their computers. This 33% salary increase in 2007 would have significantly reduced the number of consumers waiting for a computer.

Throughout 2007, Dinkelacker and Shrader provided financial projections to the owner, the Attorney General and others to demonstrate their ability and willingness to overcome serious financial problems created in large part due to their own failed leadership.

This "ruse" allowed them, and other corporate insiders, several additional months to collect their large salaries, and furtively cash out their benefits.

In the weeks and months before FAI closed, Dinkelacker and Shrader developed a copy cat company, recruited FAI employees, and directed FAI employees to steal trade secrets and copies of FAI computer hard drives. One executive is known to have copied large quantities of corporate information from the company server using a remote connection set up by the IT Director Steve Hamilton (now an executive with the new company).

Dinkelacker and Shrader continued to allocate cash to themselves and other members of their "inner circle" through generous salaries and severance agreements that were not routinely offered to other FAI employees.

Some of the FAI employees given generous salaries and/or severance followed Dinkelacker and Shrader to the new company. In fact, former FAI employees and officers are also anonymous owners in the new company.

Javier Palomarez, poached from a former FAI Strategic Partner MiCash, was hired by Shrader in July 2007 just weeks before FAI was deemed insolvent. Palomarez and Shrader are personal friends and are also believed to be partners in the new company .

This cozy relationship may help to explain why Dinkelacker approved Javier Palomarez $200,000.00+ per year salary, even though customers were not receiving computers. Shrader maintained that Palomarez was hired to "develop business for FAI, even though FAI's future prospects were at best questionable.

At least $40,000.00 was transferred to Palomarez in the days and weeks before FAI collapsed. If any "new business" was developed for FAI, the company did not benefit from it. Shrader, Dinkelacker, and Palomarez did.

One joint venture with ACE CASH EXPRESS was terminated by Shrader and Palomarez resulting in significant financial loss to FAI, while at the exact same time the pair was negotiating with ACE for a significant capital investment in the new company.

Another partnership engineered by Palomarez while he was representing FAI, was scheduled to launch October 15 2007 by the new comapny, barely a month after Shrader ,Dinkelacker, Palomarez, and Walt Pollard left FAI. This PAY-O-MATIC relationship was developed months before FAI went out of business, and was not revealed to the Attorney General or the owner.

Michael Shrader, Kurt Dinkelacker, Walt Pollard, Javier Palomarez, and Steve Hamilton colluded to maximize their personal gain at a great loss to the consumer, FAI, and to the owner.

Unfortunately, there is little interest here in Texas for this story. I believe there may be interest in Virginia, where FAI was headquartered. If you have been harmed by this company, please make sure this posting gets to people who may care.

News outlets in Virginia, current and former vendors and business partners, potential investors, etc may appreciate the information and may choose to distance themselves from these dishonest people.

Call them, email them, send a carrier pigeon- let your voice be heard. You may never see your money or the computer they promised you, but at least you will know the truth and some more of the unknown facts surrounding the dissolution of a once proud family company.

The demise of FAI was no "aw shucks" accident by bumbling inept overpaid executives. The facts point to a failure allowed by shrewd business minds intent on stealing trade secrets they were trusted with.

It doesn't get any uglier that that folks.


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Virginia Pilot- carolyn.shapiro@pilotonline.com 757-446-2270

Channel 10 news- Andy Fox- andy.fox@wavy.com

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Michael J Shrader
1276 Southfield Place
Virginia Beach VA 23452
757-631-0111
757-214-1177
michaelshrader@yahoo.com

Kurt and Barbara (Miller) Dinkelacker
810 Tristen Way
Schwenksville PA 19473
610-287-3419
610-453-8348
kurtikon@aol.com

Javier Palomarez
3405 Courtney Dr
Flower Mound, TX 75022
972-355-7616
jpalomarez@tx.rr.com

Walter Pollard, now listed as the
Director of Business Operations for
Evolution Financial Services
1660 Kempsville Road
Virginia Beach VA 23464
757-375-3319
757-479-2178
waltpollard2003@yahoo.com

Walt also owns shoycomputer.com
another FAI copy cat


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Devere Kutscher
deverekutscher@gmail.com
Former Director of Marketing and Communications
for the National Association of Child Care Resource

Now connected to Marketing for
Evolution Financial Services

--------------------------------------

The new company formed using trade
secrets stolen from FAI:

Evolution Financial Services LLC
70 Buckwalter Road Suite 900 #425
Royersford PA 19468
800-210-7886

also using
americaspurchaseprogram.com

-------------------------------



PAY-O-MATIC

Secret venture created in early 2007
by FAI execs, never revealed to FAI
owner. Relationship moved to
new company after FAI dissolves,
avoiding non compete and
theft of trade secret issues.


Ray Mustafa, President
PAY-O-MATIC corp. Executive
160 Oak drive
Syosset, New York 11791
516-496-4900
Fax 516-496-2282

recently acquired by by:


Warren H. Haber, Partner
Founders Equity Inc.
711 Fifth Avenue
5th floor
New York, NY 10022
212-829-0900 Fax (212) 829-0901
whaber@fequity.com
fequity.com

operating as
FEF Cash Inc

---------------------

Shrader was involved
in investment
discussion for raising
capital for Evolution

Mr. Lee Jundanian CEO
RAPID ADVANCE
7316 Wisconsin Avenue
Suite 450
Bethesda, MD 20814

Joe Looney, General counsel
jlooney@rapidadvance.com
** previously involved with Blue
Hippo, another FAI copy**

Barry Davis VP of Business Development
240-514-2000 ext. 121 or
bdavis@rapidadvance.com.

---------------------------------

Kurt associate, Potential investor:

PIONEER CAPITAL
161 Washington Street, Suite 1060
Conshohocken, PA 19428
610-862-2100
info@pioneercapital.com

--------------------------

Shrader associate, Investor Agents

Michael L. Young
Chief Operating Officer
CEO Capital Group
8630 Fenton St
Silver Spring, MD 20910
(703) 418-1111
(301) 495-0108
info@ceocapitalgroup.com
www.ceocapitalgroup.com

------------------------------

Shelby Davis, Vice President
Wachovia Bank
101 West Main Street
Norfolk VA 23510

Relationship developed
at FAI for investment,
followed to new company
after FAI dissolves.

Shelby is a LHR graduate.

---------------------

Associates of Javier, partners
with FAI shortly before dissolution,
True conditon of FAI
not revealed to ACE.

ACE CASH EXPRESS
1231 Greenway Drive, Suite 600
Irving, TX 75038
(972) 550-5000
(972) 550-5175
(866) 223-2274
acepresident@acecashexpress.com
acecashexpress.com

This is a huge company that abhors
any negative publicity.

FAI execs boasted that ACE
was investing in the
new business.


------------------------

Kurt Dinkelacker is a Board Member

Quench USA LLC (they don't like any press)
780 5th Ave Ste 110
King Of Prussia, Pennsylvania 19406-1437
Phone: 610-277-7472
quenchusa.com

------------------------------

Gladstone Investment Corporation
1521 Westbranch Road Ste 200
McLean, VA 22102
(703) 287-5800
Info@GladstoneInvestment.com

This company is very reputable and
owns a lot of Quench stock. They
have the power to have Kurt removed
for integrity issues.

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MiCash Inc
1101 30th Street NW-Suite 110
Washington, DC 20007
202-338-7474

They probably know by now that
Javier Palomarez shafted them when
he jumped to Financing Alternatives
while negotiating a business arrangement
between them and FAI.

They probably don't know that he
is personally involved in Evolution
Financial Services.