Complaint Review: Energy Automation Systems Inc. - Hendersonville Tennessee

Unlike EASI, I am willing to admit to one mistake. I did not believe the posting was from the high profile attorney EASI has hired to represent them in the multiple lawsuits filed against them. Interestingly, while a number of accusations were made against the EASI detractors, not one, not even a single one, of the supposedly "widely disseminated false statements" was publicly corrected. However, some statements made do not square with the facts as I know them.

EASI "had received very few complaints until last year". While I have no doubt that EASI has never faced the number of complaints simultaneously (probably in excess of 10 current lawsuits), EASI has faced challenges in the past. These challenges were frequently settled out of court with "gag orders" placed on those complaining. Just how many people were "bought off" will eventually come out in court.

"EASI initiated several lawsuits". To the best of my knowledge, EASI has only initiated 2 lawsuits. One of those against the single person who has uncovered more damaging information related to EASI's operation than probably all others combined.

Furthermore, most of the plaintiffs against EASI have made no public comments or participated in any public postings. EASI wants to create the impression that their entire problem revolves around some failed entrepreneurs with a vendetta against them. Again, most of the plaintiffs have remained publicly silent - which is obviously their right to do so.

EASI's sole shareholder received "thinly veiled threats" from one detractor. I know they are not speaking of me, however I have received atleast 3 threats from EASI and one of their lawyers. One attorney sent me a "cease and desist" threat due to my willingness to go public with my experience and the questions for which I continue to receive no response. The President of EASI, Dr. Paul, sent me one letter demanding me to quit my public complaining or "they will decide how to deal with me". The founder of EASI, Joe Merlo, sent me the following message - "You have a lot more to lose and we both know that". Were these threats of violence? Who knows?

EASI's corporate counsel has "no intention in engaging in a volley of postings". This is for obvious reasons. I will continue to ask where are the supposed 80,000 installations of the EASI system. This is an obviously false misrepresentation designed for the sole purpose of creating undue credibility of the EASI operation in order to sale more of their dealerships.

If their counsel where to persist in a public debate, people might finally realize that there is no satisfactory response to the question because it is untrue.

"I am confident of our client's position". If you are so confident, you could end the entire debate by providing the answer to "where are the 80,000 installations" and "what percentage of revenues does EASI derive from the wholesaling of product through their dealerships versus the selling of dealerships themselves". Again, if it were a widely disseminated FACT that EASI's primary source of revenue (upwards of 75%) were from the selling of dealerships then their ability to sell new dealerships would be greatly diminished.

While the lawsuits are pending and the BBB still gives consumers a positive impression of EASI, EASI is actively trying to sell more dealerships. One internet advertisement claims that the average sale of an EASI system is $125,000 with a typical profit of 50%. If this were true and the installation question where true, then EASI's product sales would be approximately $160,000,000 annually. This would dwarve the apparently $6-$10 million per year in dealerships sales and would sufficiently prove EASI were dealing honestly with their dealers. IT IS NOT TRUE.

My name is John ((REDACTED)). My firm, Bowen ((REDACTED = no free ads)), represents EASI. For the record, I wrote the recent posts appearing over the names Daniel and John. Daniel is one of our associates and made the first posting at my direction. When it became apparent that individuals reached unfounded conclusions simply because my associate's name appeared on the posting, I resubmitted the post under my name.

This will be my last posting. Neither I nor EASI have any intention of engaging in a volley of postings with the few participants of this board. The matter will be properly settled in the courts, which is the appropriate venue. As such, I am confident in our client's position and the outcome.

I wrote the original rip-off report about EASI some 20 months ago. Much has happened since that time.

I am currently one of several plaintiffs with lawsuits against EASI. By court order, I am restricted from disclosing any information relayed to me by my attorneys due to the discovery process. However, one of my attorneys informed me that my free speech rights with regard to what I know independent of the attorneys cannot be silenced.

Three recent identical entries claim to be from EASI's corporate counsel. The first entry uses the name Daniel and the subsequent two use the name John. Since I have some experience in dealing with the various attorneys used by EASI, I can stated that no attorney named Daniel has ever appeared in any documents associated with EASI. This is VERY INTERESTING since the 3 identical postings all complain about supposed anonymous postings by EASI detractors.

The first attorney I encountered was named Andrew. He sent me a "cease and desist" threat due to my public complaining. At the very same time, an attorney named Darrell (who had been listed as their corporate counsel for many years) was carbon copied on EASI's response to my complaint with the Tennessee Attorney General's Office of Consumer Protection. It is my suspicion that Darrell could not simultaneously issue a threatening letter to me while participating in their corporate response to my complaint.

Their current attorney in the legal action versus EASI is named John. However, I seriously doubt he made these posts. He has an outstanding reputation within the Nashville legal community and I do not envision that he would have used a false name in the original "corporate counsel" posting. From all accounts, he is a quality attorney facing a difficult defense of his client. One former employee has indicated that they believed the posting actually came from EASI's President, Dr. Paul. Dr. Paul was supposedly a very successful former dealer who sold his dealership to become President of the company. I cannot disclose anything further regarding his "successful" dealership.

Interestingly, as another poster stated, this entry from their legal counsel was going to correct any misstatements made by the EASI detractors. Yet, no such correction appears in the letter.

While there are many things to question, I will center on the 2 central questions regarding their operation. In order to entice more people to purchase this dealership, EASI states that they have or their dealers have installed over 80,000 such projects in the last 20+ years. This is undeniably false. In fact, I received correspondence from an employee that has since departed indicating that fewer than 50 projects were sold for the entire year of 2002. How they get to 80,000 remains a mystery.

The other central question is how do their revenues from the selling of dealerships compare to their wholesaling of product through their dealers. They claim "We do not make money unless you do". The clear implication is that they must sell enormous amounts of product through their supposedly 500 active dealers. I believe that if it were public knowledge that dealerships sales represent the majority of their income (probably in excess of 75%) then very few people would be interested in purchasing a dealership.

Lastly, much has been written about the Better Business Bureau of Middle Tennessee. I filed a complaint 18 months ago, yet their current entry for EASI indicates that no complaints have been filed for the last 36 months. Why they continue to show such an entry is a question better left up to the legal authorities. It is true that the Attorney General's office in Tennesse has been looking into EASI's operation. I have no idea how that investigation is going.

The BBB membership is paid for and any business that is less than straightforward in their opportunity / franchise will always join the BBB for "cover". EASI has never responded to the substantive questions asked. While it may be considered "circumstantial" evidence, any company owner that would not defend his own company raises my suspicion every time.

I bought an EASI dealership 3 years ago from a previous EASI Dealer who was not successful. I have started other businesses in the past from scratch. No one ever told me it would be easy, no pun intended. However, in any business you must learn what works and what doesn't.

I tried EASI's approach and later added to it and modified it to meet the requirements of the client's I was approaching which were Fortune 1000 customers. EASI gave me a basic training from which I have moved forward into more sophisticated products in conjunction with the EASI products.

Now, I have involved my son in the energy conservation business that EASI led me to. In my opinion, EASI cannot be faulted for their products; they do deliver savings which I have carefully verified for every customer. They provide a service to help plant the seed of entrepreneurship in the energy business.

The "buck stops here" has to come into play for any business owner. It is not an easy business, but I remember when I went to engineering school during orientation, the Dean of Engineering said, Look at the person sitting in front of you, look at the person to your left and right, now look at the person behind you; only one of you will graduate from this college in engineering! You know what, he was right.

After three years of intense effort, I am seeing the fruits of my labor. You know, that is the same time it took for the other businesses I started. It was no quicker or longer than any other business I have started. I know of no shortcut to success other than hard work which is properly directed. It is easy to try to blame others for your own failure, but all I have done in the many years I have spent in business is look in the mirror at my face and say You failed, now what are you going to do to correct the situation, and get back on track to success! Don't blame others for your failure and get back on right track, life is much too short to live any other way.

If EASI is to be faulted, maybe it should be in the pre-qualifying of the potential new dealers. If you were hiring a new employee you would want to be certain that the individual processed the skills to be successful in the job you were hiring them to do. But, if you are selling dealerships, the person has thoroughly researched the opportunity and decides he wants to invest in the business doesn't that person have the right to buy an EASI dealership?

I guess in summary each case must be view individually but I my case, I feel that without Joe Merlo's company EASI, I would not be having the fun and success in the energy conservation business and the opportunities for my children to partake in their future. Was this all because of EASI?

NO! REMENBER WORK HARD AND WORK SMART!

Lots of activity in this forum, but still no word from EASI management regarding the 80,000 installations and the sources of revenue? We know why.

The 80,000 installations are a fictitious number designed to create false credibility for your company while you ripoff more "dealers". We also know that you would never disclose your current sources of revenue since that would prove that your entire business and the opportunities you offer are one big LIE.

Why do you not defend yourself? Why not prove that I am wrong?Tell us where the 80,000 installations are and where your revenue comes from.

Why allow others to "defend" you and not speak for yourself? Why are these people defending the "LIE" of your business? What are you holding over them?

Let it be clear for EASI customers or prospects that you are a dealer that is upset at EASI for whatever reason AND NOT AN EASI CUSTOMER OR USER...you're entitled and have rights to speak out. I am an EASI dealer and am committed to working this business along with other dealers and don't want your sour experience to frighten good prospects and customers. I've experienced a fair share of success and disappointments in 8 months now. There is no utopia business...I don't care what you're doing. Maybe everything was not what EASI said it would be. Maybe EASI is trying to sell dealerships to the wrong people. I was able to separate the wheat from the chaff and recognize challenges. I have communicated with other dealers, both new and experienced, that are committed to working the business and we feel we can contribute and try to help each other as dealers...that includes you.

It has come to my attention that complaints have been filed with the Federal Trade Commission, the Tennessee Office of Consumer Protection, the Better Business Bureau of Middle Tennessee, and the offices of Tennessee Senators Bill Frist and Lamar Alexander.

There has also been considerable action on the company's dealer website and extensive e-mail exchanges with more than 50 existing dealers that somehow include the President of EASI, Dr. Paul, who was supposedly one of the former successful dealers pulling in a 6- and/or 7-figure income.

Perhaps, the CEO of EASI, Joe, decided that Paul could produce even more income at the corporate headquarters.