Solei Systems - Light Therapy Systems - Intelligent Tanning Systems ripoff Sold & Continuing to sell franchises which violate Business Opportuntity Fed & State laws Cleveland Ohio
Editor’s Comment: Ripoff Report believes in transparency and the more information the better. In this instance there has been court action regarding this subject Report. We believe it important to note that not all Court Orders are alike. Many court orders are absolutely legitimate. However, sometimes courts enter orders based upon default which typically means that the defendant didn’t show up. Sometimes a defendant won’t show up because they didn’t even get notice of the case proceedings in the first place and other times defendants may not show up because they don’t necessarily have the knowledge and/or the financial resources to fight. Still, in other instances, a defendant may simply appear only to stipulate (settle) the case by agreeing to stipulate to a court order because they are being bullied by the plaintiff and whether what they said was true or not, they just want the matter to go away so they can move on with life and make the plaintiff go away. We are providing you all with the same information so that you may be more informed and, coupled with any additional research you feel is necessary, make your own informed decision regarding the validity of this Report. As always, we encourage our readers to do their homework and not just rely on one single source for information. Google, through the Lumen Database, has provided the following document relating to this subject Report:
Paul Spivak v. Carol Chandler - Modified Judgment Entry by Ripoff Report on Scribd
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This company through it's owner Paul Spivak sold me in Feb, 2007 an exclusive franchise opportunity for it's products to be sold in the states of Nebraska and Iowa. I invested my life savings of nearly $20,000 to buy this exclusive territory because the company was promoting itself through various franchise websites on the internet. When I pointet out within 60 days that they had not provided the sales support, marketing and advertising support or product information that was promised to me, Mr. Paul Spivak cancelled my franchise and refused to refund my monies. After speaking to an attorney I learned that the contract was totally in violation of the Federal and State Business Opportunity Act. Among other violations, he did not file disclosures, he promised income that he could not corroborate and did not give me a period to rescind the contract as required by law. I have filed charges with the Ohio Attorney General's office, the BBB, the NE state dept of Banking and he has been instructed to rescind my contract and refund all of my monies plus expenses and legal fees. Mr. Spivak tells these agencies that he doesn't have to repay me because I slandered him! He ducks the calls and letters from all gov't agencies and either pretends that he didn't get the letters or that his attorney will call them back. The attorney never returns calls either. I have now been put in the position of having to find counsel in Ohio to file charges which has now cost me close to $8,000 to regain my $18,000 that he refuses to refund. I have learned that he has a history of bogus franchise deals under all kinds of names in Fl. PA, Ohio and has several judgements against him that he ignores. Carol Omaha, Nebraska
U.S.A.
2 Updates & Rebuttals
Paul Spivak
Cleveland,Ohio,
U.S.A.
Rebuttal
#3REBUTTAL Owner of company
Mon, March 24, 2008
To Whom It May Concern:
I am the president of Solei Systems which manufactures and distributes state-of-the-art beauty related machines. In order to market and sell our commercial-grade machines, we have entered into distributor agreements (not franchises) with a number of individuals who control exclusive territories. By contract, these master distributors are bound to sell a certain number of machines per year at the manufacturer's suggested retail price (MSRP). However, they may not publicly promote or advertise these machines on a national level at any price lower than the MSRP. National advertising is left to the manufacturer, which places advertisements in national trade magazines. All leads generated from this national marketing campaign are forwarded directly to the distributor in the relevant area.
On February 10th, 2007, Carol (the author of this alleged ripoff report) purchased one of these exclusive distributorships for the sum of $10,000. Shortly thereafter, Carol began advertising the machines below MSRP on a national level via the internet. This was a direct breach of the distributor agreement. Carol was promptly put on notice for violating her contract.
At this point, Carol demanded her initial investment of $10,000 returned plus a huge profit. Carol made these demands despite the fact that she failed to sell a single machine. I personally offered to return her initial investment of $10,000, but she refused, hired an attorney and countered that she now wanted $30,000 plus attorney's fees. The matter is currently being litigated and has yet to reach a resolution.
In conjunction with the litigation, Carol has also taken it upon herself to post defamatory statements on trade websites as well as this website, ripoffreport.com. Carol's actions have caused a tremendous amount of grief, aggravation and lost sales for our reputable distributors.
Carol's ripoff report skews the facts and makes unsubstantiated claims regarding her business relationship with Solei Systems and its President. The company and its president have kept open and honest communication with all of its distributors. At no time has the company changed addresses or phone numbers, and has promptly returned all phone calls to Carol up until litigation commenced.
Carol has attempted to harm the reputation of this large and reputable business by filing complaints with the BBB, the Ohio Attorney General's Office, and making unsubstantiated claims on several web sites, including this one.
Carol is more than welcome to post a copy of her contract on this site for all to see the truth of her accusations.
It is because of people like this that America's companies are manufacturing offshore and American jobs are being lost.
Paul Spivak
President
Solei Systems
Cleveland, Oh
Carol
Omaha,Nebraska,
U.S.A.
Intelligent Tanning Systems - Solei Systems - Light Therapy Systems Continues to defraud investors
#3Author of original report
Sat, March 08, 2008
Intelligent Tanning Systems - Solei Systems - Paul Spivak - Light Therapy Systems Refuses to refund money he took from me and others for selling bogus franchise/distributorship is Chesterfield Or Cleveland Ohio
This is an update to my former report. Paul Spivak, owner, president continues to duck the Ohio Attorney General, NE State Banking Dept, Ohio Better Business Bureau and the attorneys who have served him with my lawsuit against him for selling me a franchise which violates the Business Opportunity Act - on both a State and FTC level.
Instead he has retained two 3 different lawyers who have attempted to countersue me for slander because I presented my accurate and unbiased complaint to the above agencies as well as reporting him on a website for his industry which includes a section for complaints against manufacturers who have demonstrated illegal or bad business practices. He has also accused me of slander and creating "tortureous interference of his business" because I reported him to the BBB and Ohio Attorney General!
These websites TanTalk.com and TanToday.com had and continue to have several complaints from others against this man as an individual for selling "bogus franchises" - this was posted a year before my complaint. There are other complaints against him on these websites for not honoring warranties on equipment he has managed to sell.
His newest attorneys have now contacted mine to say they no longer represent Paul Spivak or his companies in exactly the same manner that his previous lawyers have done. Furthermore, everytime my attorneys and the other agencies try to contact him - his address and phone number seems to change. Clearly he believes he is above the law and uses the system to avoid repaying monies that he has garnered using his questionable tactics to take people's savings with promises of doubling and tripleing their investments almost immediately.
I have been told that he continues to sell these distributorships and that there are other complaints against him which he is handling in the same manner by having lawyers file countersuits for slander and then the lawyers who file write to say they no longer represent him. I would love to speak to any media - whether I recoup my monies or not - this man and his companies continue in my opinion to practice shoddy and illegal business practices. I thought it prudent to update my previous complaint to warn others to make sure they get legal advice before entering into any kind of business arrangment with Paul Spivak of Solei Systems, Intelligent Tanning Systems, Light Therapy Systems and the myriad of other company names that he has used.
Carol
Omaha, Nebraska