Monthly Archives: August 2015

News and Updates

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GAWsuit

September, 21st, 2015

Hello Everyone.

Welcome to the new website!

In this section, we will be posting the latest news and developments here, as well as reaching out through Mail Chimp. Please come here frequently to see if there are any developments.

If you have any questions about the site or need clarification about any of the requirements, please contact support at support@gawsuit.com.

More news coming soon.

Best regards,

Allen

________________________________________________________________________________________________________________________________________________

July 17th, 2015  Original Newsletter

GAWsuit

Dear GAWsuit Members,

First, I would like to apologize for the lateness in updating the group about the forming GAW lawsuit (GAWsuit). It has been a very time consuming project, with new members arriving daily. As most of you know, I am involved in a lot of different projects, aside of the lawsuit. I also own a company, and the business of the company keeps me highly active. I would like to thank everyone for his or her patience in this matter. Following, you will find all of the latest developments and issues.

The Members

At present, our group members come from 47 countries, on all seven continents. The reach of the alleged GAW fraud was extensive. Daily, we receive at least 3 to 4 new applicants to the group, also from around the world. Our membership represents a vast number of different cultures, languages and ethnicities. It represents one of the most diverse private groups in the world today, with nearly every major language class being represented.

Change of representation

We have dropped the initial law firm that we had chosen. It was becoming evident that they were not truly prepared to handle a lawsuit of this size and complexity. I was getting the impression that they were more concentrated on the potential money they could make, when they discovered how large the group had become. It was at that point that I felt their motivations were more on getting the maximum amount of money upfront, than discussing how to successfully litigate the case. They began to change their decisions on how much money they wanted as a retainer, and they indicated they wanted to bring other law firms into the group, which went against the initial discussions. We felt that their motivations were not in a successful litigation outcome.

Through the assistance of one of the members of the group, Coollegaljobs, we believe we have a more experienced attorney who will represent the group properly. We should have final details in the upcoming week, ending in a contract with the firm, hopefully.

Evidence is voluminous, and growing

As many of you have seen, through the various posts I have made in the forums, we are in possession of an immense amount of intelligence and evidence, which makes this case very clearly that of an alleged fraud. Garza’s flight to Dubai ended in another catastrophe, forcing him to be returned to the United States.  Some of you may have seen the bits and pieces of information on the internet, about Garza’s stay in Dubai. In effect, he was sued by a small group of GAW customers there, initially winning a million dollar plus judgment. Financial fraud and financial irresponsibility is a felony in the U.A.E., leaving Garza with a very real probability of being imprisoned. Unfortunately, Garza’s defense attorney was successful in having the initial award overturned, based on the argument that the crime occurred in the United States, where the case should have been litigated. Garza has since returned to the United States, in complete embarrassment, failure and shame. Regardless of claims he has made publicly, he did not return at the request of the government. He had nowhere else to go.

Recent lawsuits against GAW

In the interim period, Mississippi Power successfully sued for $300,000 in defaulted payments and damages. The case resulted in a default judgment. Additionally, another case, by two past customers of GAW, resulted in a default judgment as well.  The amount of the judgment was $205,000.

GAW Braintree Payments account.

Braintree Payments had frozen the GAW credit processing account late in 2014. At the time, we believe, through various confirmations from past employees, that the account contained over $1.4 million. Through a little intelligence gathering, we were able to determine that the Braintree account contains slightly over $500,000 currently. The two successful judgments will certainly reduce most, if not all of that balance. Do not worry, as these assets are not the only assets Garza is believed to have at present. At this moment, Garza has two residential properties for sale in Massachusetts and Vermont. The total value of these properties is 1.2 million USD. We will be ensuring full use of the courts in properly identifying and seizing assets ‘wherever we believe they lie.’ As I have stated in the past, I will not rest until we have identified, seized, or encumbered (garnished) every dollar’s worth of assets Garza has stashed away. If we are even half-successful, we will have ruined his credit rating, as well as leaving him with ongoing judgments that will result in him owing more than he possesses.

Internet speculation and bankruptcy

I have seen some conversations, on other forums, about Garza being able to discharge all judgments through a bankruptcy court. Most of these have been posted on Bitcointalk. These statements are highly generalized, far from representing all of the facts. The following:

There are still other types of debts that may be excepted from discharge, if the creditor files an objection. The creditor must file an adversary proceeding in bankruptcy court, requesting that the court decide that the particular debt is nondischargeable. If the judgment creditor files an objection to your discharge and proves the underlying debt to be any of the following types, it may not be dischargeable:

·         Injury caused by a willful or malicious act, such as assault;
·         Fraud used to obtain money, goods or services, such as lying on a credit application, or;
·         Fraud committed while in a position of trust, such as embezzlement while acting as a trustee or guardian.

As you can see, we will have to be highly diligent in preserving any judgments against Garza in the future. We intend to continue the pursuit of this goal until most, if not all, of any potential judgment is paid. It can be argued that: Garza was a trustee of consumer funds; misrepresented the status, liquidity and capabilities of GAW; redirected consumer funds to private accounts, while also effectively piercing the corporate veil, and; mixed personal and corporate finances together, on a regular basis. We have hard evidence of these activities, as does most of the membership in the group.

Severe, damaging repercussions from the alleged GAW fraud

The actions of GAW and Garza have resulted in numerous breakups of households, as well as several known individuals losing some, most, or all of their possessions, as well as jobs; all as a result of the overwhelming alleged fraud. In one instance, an individual was explicitly told to hold on to their GAW investments, even after losing over 50% of the value. This was the advice of the CEO (Garza) to the investor, who lost 98% of the total value of their investment to date. The investment was being made to help the investor’s family cope with the investor’s terminal illness. Garza was made cognizant of the situation, and still insisted the investor not sell out of his position with GAW.

This is not the only severe case of repercussions from investor losses.  Due to the immense integrity and efforts of Adam Matlack, as well as a number of generous benefactors from the community, some of these individuals have received financial support and assistance; mitigating some of the severe damages, they have incurred. I personally know of two people whose investments, and subsequent losses, have made them homeless.

The person, who is responsible for all of these atrocities, is the same person who had not one, but four exotic leased automobiles, all at the expense of investor funds. The same investors financed almost four weeks of ‘vacation’ in Belgium, at the turn of the year. These same investors financed a trip to The North American Bitcoin Conference in Miami, Florida, not just for the CEO, but also for his wife, two children, and two bodyguards, as well as for various employees of the firm. Meanwhile, investors watched their investment values slowly wither away from undelivered products enhancements, unfulfilled product deliverables, irrationally over-hyped promises of grandiose commercial relationships and business developments, as well as from false statements of corporate financial status and fictitious outside investors and support funds. In essence, the CEO was responsible for the destruction of tens of millions of dollars of investor wealth, while pumping promises that would not, nor could ever, be delivered.

We have already lost one group member

In the short time that the group has been formed, we have already lost one member to an unexpected death (Goroz: Grant Honeycutt). He was only 34 years old, and his health was assumed to be in top form. Regardless of his untimely passing, any award recoveries due to him, will be forwarded to his surviving parents. We want everyone to understand that we take this lawsuit and its success very seriously, and ensure that each member will receive their portion of any awards, but also their surviving heirs, should any member suffer an untimely passing, or become incapacitated. It is for this reason that we ask that all members ensure that there is an a family member who is kept abreast of this lawsuit and our contact information.

Charge-backs and VARs

We want to be very clear about this. If you have successfully obtained charge-backs through your bank, you MUST reduce the claim you have made for the lawsuit. I also want to ensure everyone understands that we are in contact with the VARs (Value Added Resellers) to ensure that there is NO DOUBLE-DIPPING occurring. I have made it clear in the forums, that charging back VARs, although the highest likelihood of receiving some of your money back, also leaves these individuals with no avenue to recover their money from GAW. If you have charged back any of the VARs, and have not adjusted your claim with this group, immediately upon a successful VAR charge-back, we will know about it, and we will have to remove you from the group. You will no longer be part of the lawsuit. You will be on your own. You are effectively taking money from others in the group who have, in good faith, claimed actual losses they have not recovered. When you double-dip, you are enriching yourself with other members’ prospective recoveries, without just cause.  We will be discussing the VAR situation with the attorneys. We wish to determine whether we can include them in the lawsuit, in some capacity.

A new website in development moving forward

In the coming week(s), another website will be online where registrants can upload the following documents and details, supporting their loss positions, while also legally identifying themselves for the court. We are contemplating the creation of separate accounts for registrants, using the email address entered on the first web form. You will be asked to create a password to secure your account on the new website. All data will forward to an archival storage location, away from the website, for security purposes. We will ensure that there is ample storage capacity to archive the data the membership deposits.

Form:

1)    Full Name.
2)    Full Address;
3)    Postal code;
4)    Country of Residence;
5)    Copy of a government-issued picture ID (taken next to the individual’s face);
6)    Telephone Number;
7)    All Zencloud Account User ID(s), “NOT” passcodes;

8)    Real primary email address that is not at Gmail, Yahoo, Hotmail, MSN or other email service providers (explained later). Mail Chimp will not add emails starting with “info@,” “Admin@,” or other general info email addresses, such as “support@;”

9)    Amount of Hashpoints mined, converted to Paycoin;
10)  Amount of Hashpoints purchased from GAW directly;
11)  Amount of Paycoins purchase from Paybase direct (not the exchange) and Paycoin.com;
12)  Signature on “Release of Zencloud and Paybase Account Histories and Data,” imaged and returned via e-mail;
13)  Signature on “Group Litigation Agreement,” imaged and returned via e-mail;;
14)  Signature on “Testimony on Validity of Claim,” ,” imaged and returned via e-mail, and;
15)  FBI submission checkbox, “yes” or “no.”

The three primary documents required will be created in Adobe PDF as forms. You will need Adobe Acrobat to view, fill in, print and sign to email back to us. You can fill these documents and scan to email to return them to us here in the U.S. The email address will be the same: gaw.lawsuit.Allen1980s@gmail.com

Uploads:

A)  Complete Zencloud account history from beginning to present (instructions follow);
B)  Copies of any and all sales receipts for hosted hardware, Hashlets, Stakers, and Paycoin (through Paybase);
C)  Copies of receipts or contracts purchasing Hashpoints from GAW (Josh Garza or Carlos Garza);
D)  Copies of Bitcoin transactions with GAW, Paybase, or Zencloud, and the addresses the Bitcoins were sent to (This was at the FBI’s request), and;
E)  Copies of Bitcoin transactions coming from GAW for refunds.

Software

If you do not have Microsoft Office (MS Word or MS Excel), please use Google Docs (https://www.google.com/docs/about/) to process or create your list documents.

Your Zencloud account histories are generated as CSV files. See the following section on Zencloud activities export steps and management.

Your email address is important for the lawsuit. Your responses are required

Many of you have normal, personal email addresses you use on a daily basis, while some of you depend on Gmail, Yahoo, Hotmail, GMX, and other third party email service providers with which to communicate. We want to make it very clear that, should you have a personal email not from a third party provider, you should disclose this in the new form, as a secondary, backup email address. If you use any of the other providers, as your primary email service, continue to use that email address in the new form. As most of you are aware, we are spending a sizeable amount of our personal time on this lawsuit. Allen has replied to a number of claim forms requesting additional clarification with absolutely NO responses. This means that people are registering email addresses that they never check, under some form of paranoia.

If anyone fails to respond to any requests for additional information, we have sent to a registered email address, we will have to remove that person from the group within 14 days of receiving no response.  By not responding, a person is abusing valuable time and effort, as well as hindering the group’s efforts in negotiations, or the courts. The group cannot be held captive by people who are not taking the lawsuit seriously. This is not a lottery, it is a lawsuit that requires a lot of time from a small number of people. We cannot be sympathetic to a person’s claimed losses, if they are unsympathetic to our direct requests for additional information or clarification of supplied information. This is a complex process, it is crypto-based, the alleged GAW fraud is complicated, and the courts have little understanding of these issues, making this process ten times worse than a typical fraud case. There is a lot of verification on the horizon involving a lot of accounting. If some members do not cooperate fully, it will increase the workload astronomically, push the lawsuit further out from completion, and potentially damage any prospective settlement or judgment efforts.

Our time is being used to further the group’s common goal: seeking recoveries of lost investments, as well as punitive damages. We do not have time to send five or ten unanswered emails to addresses which go completely ignored. Our time is uncompensated in this effort, we are not GAW, and the liabilities to any of the damaged consumers of GAW, really rests with GAW, hence the litigation. Therefore, if you choose to ignore our email requests, we cannot adequately support your claim. If you decide to go on vacation, you must contact us, via email, to indicate the dates you will be gone, and the date you will be available again. The address is again: gaw.lawsuit.allen1980s@gmail.com. This email is directly forwarded to Allen’s primary email address. As most of you already know, Allen responds to many emails directly, and within a time that is achievable by Allen.

Zencloud Instructions

As stated earlier, and across all of the applicable forums, you need to download your complete account history in each of your Zencloud accounts.

You will export your account history as a CSV file(s). The system only allows for exports in no more than 2000 rows of data. Select your earliest account date and experiment with the number of rows any specific period generates. Once you check each output, save each file with a name that is distinctive, such as Zencloud Part 1, Zencloud Part 2, etc. If you do not have Microsoft Excel, you can upload the parts to your account, once created. We can paste them together ourselves.  For those who do not have Microsoft Office or Excel, use date increments of no more than 30 days. If you have access to Google Docs, you can check the output by uploading the resultant spreadsheet output to Google Docs, opening the spreadsheet there to manipulate the export date range accordingly. You may also combine your output files in Google Docs.

Step by step:

Log into your Zencloud account. On the left sidebar, choose “Latest Activity.”
Step 1

 

Next, your screen will fill with the most recent list of account activities, like this:

Step 2

 

 

On the far, upper right, choose “Export to CSV.”

Step 3

 

 

Now you will see the date range box.

Step 4

 

Choose the date “Start Date” as the first date of your account opening. Chose the “End Date” for 30 days later. I chose 45 days, because the output was less than 1,000 rows of data, like this:

Step 5

 

 

Click “Download.” Save the file with your account user ID like SkippyCowboy Part 1. Work your way up until the current date, capturing all of your account history, including the Hashpoint mining period, and staking outputs.

When you open the spreadsheet, the output looks like this:

 

Step 6

 

More heavy points

Do not inflate your loss claims. Someone stated they lost over $10 million. On further inspection, that loss was less than $50,000. The highest, legitimate, verifiable loss is presently $1.4 million. Additionally, you cannot claim the amount of damages you demand to receive with your claim. It is a “group” lawsuit, not 500 individual lawsuits. Any punitive damages or awards are divided amongst the entire group membership, proportionate to member’s percentage contribution to the total group losses. If you represent 1% of the total loss of the group, you will receive 1% of any “collected” award from judgments that are recoverable.  We will endeavour to submit all judgments to every credit bureau in the U.S., until paid in full, ensuring that Garza’s liability is made publicly known to every future business, bank, or future individual investor and consumer, pulling a credit bureau background check.

Anyone failing to upload supporting documents will either receive a substantially lesser amount, based on what information we can retrieve, or will be completely removed from the group. We cannot present the court with guesses about the value of each account’s loss. We have to have supporting documents and, a rather massive spreadsheet will need to be created, calculating amounts from which we derive the total claim of the group. If we cannot substantiate any or only part of your losses, and you upload no documentation to support your claim, either we will have to re-rate the account at the lower sum we have information to make an assessment from, or the claim will have to be withdrawn.

We are joining forces to present a powerful, influential group that will carry significant weight at the negotiation table, and in the courts. As individuals, we stand little chance in succeeding in the courts, as it requires knowing where the assets are, how to get to them, and a lot of money in the form of attorney’s fees and retainers. As a group, each person’s share of the costs will be relatively small compared to individual lawsuits. That was one of the main purposes in our forming the group. Together, everyone stands a chance at winning some or all of their losses back, possibly more. As individuals, there is little chance of that.

Paycoin valuation

Paycoin valuation, based on the promised $20.00 floor and $20.00 Honor Program, will be used to support a very high punitive damage award. For those who purchased Paycoins directly from GAW’s Paybase, or from GAW directly, your Paycoins (or Hashpoint equivalents) count as direct losses, and will be included in the primary group loss calculation. It is important that you identify these exactly on the next form (new website). Hashpoints mined prior to the distribution, are valued at 400 Hashpoints per Paycoin, or $4.00 per Paycoin. Paycoins purchased directly through Paybase, not the exchange, are valued at the rate you paid. You will need your receipts for these transactions.

To bring things into perspective, there are presently over 16 million Paycoins in circulation to date. At that volume, GAW would be liable for $320 million in lost value to all people who purchased or mined them. I can guarantee that neither GAW, Josh, nor the other defendants, presently possess, combined, $320 million in addition to the losses from investments in Vaultbreakers, Hashlets, Stakers, or other hosted hardware. We have to apportion valuations where they are realistic and where they have the most benefit to the suit. Where real cash, credit or Bitcoin was transferred to GAW directly, through the Zencloud marketplace, or through Paybase direct sales, that is where we define losses. Fantastical valuations based on one man’s lies is not going to be well received by a court of law, but it will be well-received as coercive marketing that leads to punitive damages.

Purchased other members’ accounts or separate products

If you purchased other investors’ whole accounts, privately, the amount you paid is your loss, less receipts from a further sale, not the actual retail value of the Hashlets, Stakers, or hosted hardware.

If you sold your account to someone else, through the Zencloud marketplace, your loss is the amount you paid for everything in the account, plus commissions to GAW (5%), less earnings, and less the amount you sold the account or assets for.  Do not use retail values to determine your losses, unless you purchased retail and never sold anything from your account. In such cases, your investment, less revenue, equals you base loss. Lost future revenues, although legitimate, are a basis for punitive damages, not base losses.

Group leadership

There will be a small group of members who will be chosen to represent the group in its entirety. These people are selected based on a number of different parameters, one of which will be the amount of their verifiable, personal loss in the alleged GAW fraud. Another, will be their availability and willingness to represent the group in court hearings, should the need arise.  Obviously, members losing less than $10,000 will have little incentive to represent the group as leaders, considering the cost they will bear to attend any court hearings representing the group. Moreover, there are other leader requirements which will be called upon, from time to time.

This small group of leaders will represent all members of the group by proxy. This same group will be empowered to make decisions, collectively, on behalf of the entire group. Should funds be recovered through negotiations, this group of leaders will decide whether to accept or decline any negotiated settlement, on behalf of the entire group. The selected leaders may also decide to call for a group vote in favor of, or against, any offers from the defending parties. Since settlement offers are not offered with an endless due date for a decision, having a democratic vote, by over 400 people, could be damaging.

Once leaders are chosen, all members will sign a document/contract that states their acceptance of any and all decisions agreed to by the group leaders; the decision is irrevocable. This form and contract will be on the upcoming website. The agreement will be part of the account creation, and will be digitally signed by the members, prior to moving on to document uploading.

Under United States law, no defendant can be tried twice for the same crime or complaint, by the same individual(s). As members of this group, all decisions by the court(s), after all appeals have been adjudicated, will end any and all claims by any of the members of the group. It is important that the correct leaders are chosen to represent the group decision-making process. I will attempt to select nine people as leaders of the group. By choosing an odd number, we avoid all indecisions where equal numbers of the leaders choose opposing paths for the group; creating a deadlock. I will be contacting members who I feel would best represent the group’s interest. These people will be disclosed on the group contract, including the amount of investment lost to GAW, as transparency to the membership.

Further communications

Mail Chimp did not work out so well on the first run. Many of the email addresses resulted in bounces, via spam filters.

If you are in receipt of this email, you are registered with the group.

If anyone has any questions, please feel free to contact Allen1980s.

Best regards,

Allen

Gaw.Lawsuit.Allen1980s@gmail.com

Forums:

https://forum.gethashing.com/  @Allen1980s
https://paycointalk.org/  @Allen1980s

Slack Channels:

https://paycoin.slack.com/messages/general/  @Allen1980s
https://gethashing.slack.com/messages/lobby/  @Allen1980s