Complaint Review: Aloe Dynamics - Dallas Texas

My company is Healthy Labs Incorporated, incorporated in Illinois.I contacted Aloe Dynamics to manufacture a new product I wanted to bring to market in mid July.  Me and an employee, Gustavo Nicosia flew to Dallas to visit the site of Aloe Dynamics and speak with them about the product Ultralina.  Gustavo Nicosia and the owner of Aloe Dynamics, James Abanaka, became very close right away.  They shared the same passion for soccer and discussed it in great detail for an extended length of time during our visit. 

On 8-14-2009 I received our pricing for Ultralina from Aloe Dynamics.  I thought it was fair and 2 days after that I wired them the $14,750 that they required to begin my order.  Jim Abanaka told me to use his Label designer because he works well with him.  He told me to make sure that the label designer sent him a copy of the label before I had them printed.  The label creator, Mr. Abanakas friend, sent Jim the label proof and okayd it for print.  Once the label arrived at Aloe Dynamics I received a phone call from Mr. Abanaka notifying me that he cannot use the 10,000 labels that have just been printed because they make to drastic of claims that the FDA wont like.  I was floored since I just paid $1,150 to have the labels made and Jim received the proof from HIS label designer and never stopped them before they went to print. I was forced to have them reprinted.  Before I went to print with the new labels, I asked Jim if we could add more fiber to the product and he said yes.  He sent me a couple of samples for a product that had 15 gm of fiber per 1oz serving.  Jim told me that the added fiber would have a slight price increase, but not to worry it wouldnt be overwhelming.  I went to print with the new labels and added the new fiber content on them.  Again, another 10,000 label order which cost $1,150.  While we were waiting for the labels to be made, I received an email from Donna Tatum, CFO of Aloe Dynamics that the product with the added fiber would be a 64% price increase.  I couldnt believe what I was reading.  I complained that this is not what we discussed and that I would not be able to go to market with such a high price for a new product.  Then I received another email telling me that the price went up again, this time it was going to be a 67% price increase.  At this point they have the newly printed labels again.  I was asked by Donna Tatum to send them more money to cover the added costs.  I have another email from Donna that she needed the money because they did not have the money to get the ingredients for my order.  I declined and told them I wanted a refund of my order and I was not moving forward with Aloe Dynamics any longer.  I was denied by them and told that they had purchased 100% of my bottles and raw materials.  I notified them that their continually increased pricing and mistakes with the labels forces me to halt all manufacturing of the product. 

I began to suspect that I was possible a victim of a pseudo ponzi scheme by them.  I became suspicious that they may possibly be using new clients money to fill orders already paid for. 

At that point I told them I would have the labels made a third time to reflect our original price and ingredients and that I wanted my 10,000 units manufactured.  I was notified by Donna Tatum that I would have to send them another $14,750 BEFORE they manufactured the product.  I refused because our agreement (attached) is that I would pay 50% of the total manufacturing costs, $14,750, before the product was manufactured and the remaining 50% balance, $14,750, 30 days from the day of delivery.  She stated that they do not extend credit to anybody and that I would have to pay them the additional $14,750.  I sent her the invoice I had from Aloe Dynamics stating the above mentioned terms.  After many days, she said theyd ONLY manufacture the product if I sent them a post dated check BEFORE they manufactured my product.  I  told Donna that these are all new terms and should have been discussed before I bank wired them $14,750. I have not hear back from them since, its been 2 weeks. 

I have sent several emails and tried to call many times to no avail.  They send me an email once every couple of weeks with no solutions.  They are holding my money indefinitely and wont show me any proof that they have 100% of my raw materials on site at the manufacturing plant.

I believe that the ridiculously increased cost for the manufacturing and the mistakes made to the label were done purposely due to Jim Abanakas liking to my ex employee, Gustavo Nicosia. 

I am turning to you because I think there may be more people out there that have been taken advantage of by this company.  I want a refund of my $14,750 that I sent them, we never went to manufacturing on the product.  They will not communicate or resolve this issue.  I feel they are an unethical business.