# Burstnet Technologies Inc. aka Burstnet lies, rips off landlord, refused to move out of Dunmore Data



## drmike (Mar 26, 2014)

*BREAKING NEWS*

*Burstnet ripped off their landlord (Insite Dunmore) and failed to pay lease obligations going all the way back to July 2013.*

*see for yourself: http://vpsboard.com/files/bustnet_2014_stiffed_their_landlord.pdf*

*Background:*

As mentioned in Burstnet Technologies (aka Burstnet) has ran quick and fast from their Dunmore datacenter.

Their new escape hatch plan is to relocate customers to DC74 in North Carolina, while abandoning the Pennsylvania datacenter.   

This is while spinning the situation as being "out of their control" and "sudden".  Premise is something just happened necessitating a move.  Yet, nothing could be further from the truth.

Burst left Pennsylvania while intentionally not paying for multiple lines of credit for computer server hardware and one lease line was for 480V power equipment presumed to be used in Dunmore build out.

*Current Dunmore Datacenter Eviction Action*

In a December 24, 2013, Lackawanna County, Pennsylvania, Civil Court filing, it details Burst's original lease for the Dunmore industrial space:

"... Agreement for 156,283  rentable square feet"

Burst did not lease the total space but according to the Lease documents:

"Approximately 32,578 leasable square feet.... 16,246 square feet on August 1, 2012...  and.... remaining 16,332 square feet on October 1, 2012."

Terms of the lease:

ONE HUNDRED TWENTY MONTHS

Price:

$10/sq foot.

Annual Base Rent: 

$325,780

Monthly Base Rent:

$27,148.33

I've included the UCC filings on record in Pennsylvania for Burst and recent  LEAF Commercial Capital dealings as of February.


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## drmike (Mar 26, 2014)

Welcome to everyone reading along at home...

More commentary and analysis to follow...

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

2/26/2013 was an electric bill of $2370.10 for 1-4 to 2-4-2013.

At an industrial discount rate of 5 cents a KwH this is 47402 KwH (based on 110V power).

A 1A steady drawing server at 110V will draw 110 watts x 720 hours = 79.2KwH in a month.

47402 / 79.2 = 598.5 1A draw servers.

Obviously, you have switches, routers, NOC gear, batteries, PDUs and other losses.


So how many servers really did Burst have in Dunmore  ? 

Answer: not many.


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## MannDude (Mar 26, 2014)

Maybe if VolumeDrive had paid their bills, then BurstNET could have paid theirs?


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## drmike (Mar 26, 2014)

#GTFO


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## drmike (Mar 26, 2014)

#GTFO_AGAIN


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## drmike (Mar 26, 2014)

... and Burst not paying their electric bill....

Let's just say there is more to that.  They were sued in 2012 for $200k+ in unpaid electric bills from a utility wholesaler.


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## Francisco (Mar 26, 2014)

drmike said:


> ... and Burst not paying their electric bill....
> 
> Let's just say there is more to that.  They were sued in 2012 for $200k+ in unpaid electric bills from a utility wholesaler.


God damn son.

Francisco


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## peterw (Mar 26, 2014)

drmike said:


> 47402 / 79.2 = 598.5 1A draw servers.
> 
> Obviously, you have switches, routers, NOC gear, batteries, PDUs and other losses.
> 
> ...


Only 500 and so servers?



MannDude said:


> Maybe if VolumeDrive had paid their bills, then BurstNET could have paid theirs?


That would explain a lot. VolumeDrive was a big part of BurstNET. They did not recover from this.


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## drmike (Mar 26, 2014)

I posted in prior mass document thread that Burst in their own press said they went from 30k customers to 12k customers in less than a year (2013-2014).  Some of that decline was divesting of the UK.  Still curiously HUGE drop.

Speculation on server count, but, sheerly on power draw of a rather pathetic 1A 110V draw, yeah 500 servers at one point would be a high water mark.   Electric usage numbers fluctuate and I haven't a clue of their per KwH rate.  Doubt it was even as low as 5 cents, but it is industrial space, so possible back then.

Would be nice to see what volumeDrive had to say


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## rds100 (Mar 26, 2014)

Maybe this was before the Scranton to Dunmore move? When did that happen?


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## drmike (Mar 26, 2014)

Which part @rds100 ?   I can timeline it probably...

The 200k$ electric bill was certainly the Scranton facility.

The eviction notices certainly are for the Dunmore facility and they are inclusive of the much smaller, still unpaid electric bills + lease payables.


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## VPSCorey (Mar 26, 2014)

Datacenters get better rates than that.  Were a steady load on the system which utilities love from a capacity generating perspective.


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## rds100 (Mar 26, 2014)

@drmike i mean the calculation of the number of servers based on the electric bill. Was this an electric bill for a period when all the PA servers should have been in that place, or for a period before that?


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## ihatetonyy (Mar 26, 2014)

Nominating you for the Pulitzer for Investigative Reporting.

Also, VolumeDrive up and ran in August, right?

$7.00 (or less) question: were they already in default to Burst before then, or did they see the writing on the wall?


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## drmike (Mar 26, 2014)

Well let's see... These are the electric bill totals in the Landlord's materials submitted with suit to the Lackwanna County Civil Court... submitted within the timeline of the whole bigger event.

OCTOBER 17, 2011           <--- Backlog funds Digiport (see 9/4/2013 below)

JANUARY 3, 2012              <---  Backlog Capital Funds BurstNET

JANUARY 5, 2012              <---  Backlog Capital, LLC, moves HQs to Pilot Mountain, NC.

JANUARY 17, 2012           <---  Harbor Ridge Capital, an M&A advisory group focused on lower middle market technology companies, announced it has completed a capital raise for BurstNET Technologies Inc., which was funded by an undisclosed institutional investor.

8-3 - 9-04-2012 = $2439.45 

9-4 - 9-30-2012= $2237.46  <--- 09/17 Relocates corporate offices to new facility, begins construction Phase I10-1 - 10-4-2012= $355.51  ~   3 day billing period!?!?!

10-4 - 11-2-2012 = $5891.27

11-2 - 12/4/2012 = $7097.65

12-4 - 1/4/2013  = $5411.18  <---- FIRST LATE PAYMENT MADE IN THIS SPAN

1-4 - 2/4/2013    = $2370.10 <---  NEW DUNMORE DATA CENTER TO OPEN ABOUT HERE ACCORDING TO PRESS
2-4 - 3/5/2013    = $3053.98 <--- JANUARY OR FEBRUARY 2013

3-5 - 4/4/2013    = $3510.14

4-5 - 5/6/2013    = $4394.68

5-6 - 6/5/2013    = $4828.80

6-5 - 7/5/2013    = $7499.96

7-5 - 8/5/2013    = $11,217.60 <--- UKFast acquired UK assets of Burst  "the deal with BurstNET for an undisclosed sum will see an additional 1,500 customers transfer " http://www.channelregister.co.uk/2013/07/05/ukfast_burstnet/

8-5 - 9/4/2013    = $10,240.30 <--- volumeDrive moved out of Burst (notice electric downtick next month?): http://www.webhostingtalk.com/showthread.php?t=1296858 

9-4 - 10/4/2013 = $9301.57  <--- public acquisition of Digiport of Miami, Florida

                                                    <--- Lease #1 - default date September 15, 2013, and no payments made since.

                                                    <--- Lease #2 - default date September 15, 2013, and no payments made since.

                                                    <--- Lease #4 - default date September 15, 2013, and no payments made since.

10-4 - 11/4/2013 = $9338.00 <--- 10 day notice to pay rent or quit posted

NOVEMBER 8, 2013            <---  Second 10 day notice to pay rent or quit posted

                                                    <--- Contract #5 - default date November 10, 2013, and no payments made since.

DECEMBER 2013                <---   

JANUARY 2014                    <---  1/4  Completion and full integration of the acquired Digiport, Inc. 

                                                    <---  1/22 Burst.net abandons Corexchange facility in Dallas

FEBRUARY 2014                 <--- 2/5 14CV1008 Civil Lawsuit filed in Lackwanna County, PA for 5 different leases/                                                               contracts

                                                    <--- 2/6  BURSTNET® announces new Chief Executive Officer (CEO) - JW Ray

                                                    <--- 2/21 Welcome Art Faccone as Vice President of Client Care.

                                                    <--- Lease #3 - default date February 24, 2014

MARCH 2014                         <--- Days to weeks notice of move from Pennsylvania to DC74 in North Carolina

MARCH 22-23, 2014            <--- Dedicated servers moved from Dunmore, PA, and Chicago Illinois to NC

MARCH 29-30, 2014            <--- Colo customers to be moved from Dunmore, PA to North Carolina

Now, should note that you can believe in June to July they either mass increased server count or summer weather arrived.  I'm sticking with electric for servers and related being small $3-4k a month, rest of inflated electric is cooling load.


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## drmike (Mar 26, 2014)

opcorn: POPCORN opcorn:


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## Kris (Mar 26, 2014)

You do seem to be on a roll lately.  opcorn:


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## rds100 (Mar 26, 2014)

I wonder how is it possible to have so many overdue electricity bills. Here if the electricity bill is not paid, the power is cut off.

What's the standard procedure for disconnecting a non-paying customer in USA?


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## drmike (Mar 26, 2014)

rds100 said:


> I wonder how is it possible to have so many overdue electricity bills. Here if the electricity bill is not paid, the power is cut off.
> 
> What's the standard procedure for disconnecting a non-paying customer in USA?


That's simple actually    As part of their industrial space lease, the landlord assumed the electric bills and passed such through/along.

In commercial leasing this sort of thing does often happen.  Depending on type of business, the electric possibly can be included in your lease payment (i.e. no cost increase or separate payable).  Semi-odd to see it going on where the customer mass racks equipment 24/7 operation and where the customer/lease holder was in very same county being sued for failure to pay for electric at prior location.

In fairness, date on the suit might mean it wasn't in public records then.

But yeah, Landlord at Dunmore was way too nice for way too long.


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## DomainBop (Mar 26, 2014)

Mark from Youmura (Delimiter) posted on LET a few days ago that he saw a document (I'm assuming it was a UCC) that Burst had a $975K line of credit that was secured against the DC in Dunsmore...if anyone can find a copy of that UCC...

edit:



> Also, VolumeDrive up and ran in August, right?
> 
> $7.00 (or less) question: were they already in default to Burst before then, or did they see the writing on the wall?


Allegedly in default to Burst but no documents (or lawsuits) have surfaced yet to prove  Burst's claims that VD hadn't been paying their bills and owed them north of $100K (?).  The panic shown on WHT by then CEO Shawn after VD jumped ship seemed more like _"oh shit, we're screwed, a big chunk of our revenues just walked out the door"_ then _"a deadbeat who wasn't paying us and was a financial burden just left"_


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## drmike (Mar 26, 2014)

Well I hate to seem lazy, but Burst + Shawn Arcus  have a boatload of UCC filings in Pennsylvania.  PA requires an account to download the documents.  Reading these could take days to weeks.

Two batches... First Burst, then the owner Shawn Arcus.

MATCHES: BURSTNET TECHNOLOGIES

2012051605048 05/15/2012 08:00 AM BURSTNET TECHNOLOGIES - [Commercial]
422 Prescott Ave, Scranton, PA 18510
34090184 06/25/2001 10:28 AM BURSTNET TECHNOLOGIES INC - [Commercial]
1000 S MARKET ST, BLOOMSBURG, PA 17815
34090185 06/25/2001 10:28 AM BURSTNET TECHNOLOGIES INC - [Commercial]
1000 S MARKET ST, BLOOMSBURG, PA 17815
2009043010165 04/30/2009 08:06 PM BURSTNET TECHNOLOGIES INC - [Commercial]
422 PRESCOTT AVE, SCRANTON, PA 18510
2009101506662 10/15/2009 08:00 AM BURSTNET TECHNOLOGIES INC - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18510
2009101506674 10/15/2009 08:00 AM BURSTNET TECHNOLOGIES INC - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18510
2014011406814 01/14/2014 08:00 AM BURSTNET TECHNOLOGIES INC. - [Commercial]
1205 O'NEILL HIGHWAY, Dunmore, PA 18512
2009120904897 12/08/2009 08:00 AM BURSTNET TECHNOLOGIES, INC - [Commercial]
42 Prescott Ave, Scranton, PA 18510
2010051005307 05/10/2010 01:51 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, SCRANTON, PA 18510
2010092005483 09/20/2010 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2010102103410 10/21/2010 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2010110502086 11/05/2010 11:26 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, SCRANTON, PA 18501
2010121500504 12/14/2010 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2010123105192 12/31/2010 04:31 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
PO BOX 591, SCRANTON, PA 18501
2011011005440 01/10/2011 04:59 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510
2011030701401 03/04/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2011030702605 03/07/2011 11:37 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
302 EAST STREET, BLOOMSBURG, PA 17815
2011042502821 04/21/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510-2314
2011052000879 05/19/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scanton, PA 18510
2011052503231 05/24/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2011060306308 06/02/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2011062305346 06/23/2011 07:34 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
302 East St, Bloomsburg, PA 17815
2011062705130 06/27/2011 03:05 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott St, Scranton, PA 18510
2011072106132 07/21/2011 04:00 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scanton, PA 18510
2011072904019 07/29/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510-2314
2011092900926 09/28/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2011092900990 09/28/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510-2314
2011100405698 10/03/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE., Scranton, PA 18510
2011100406171 10/03/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2011100501654 10/03/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2011102601343 10/25/2011 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2011103103158 10/31/2011 12:39 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2011113009578 11/30/2011 08:15 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510
2012010903205 01/06/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
P.O. Box 591, Scranton, PA 18501-0591
2012010903217 01/06/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
P.O. Box 591, Scranton, PA 18501-0591
2012030501562 03/02/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2012050308427 05/03/2012 06:57 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510
2012051405347 05/11/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510-2314
2012051501531 05/14/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2014012106439 01/21/2014 04:15 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
1205 ONEILL HWY, DUNMORE, PA 18512
2009102600916 10/26/2009 09:22 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
302 EAST STREET, BLOOMSBURG, PA 17815
2009061105827 06/11/2009 02:19 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2009070706581 07/02/2009 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18510
2009073105148 07/31/2009 01:57 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
302 EAST ST, BLOOMSBURG, PA 17815
2009082801284 08/27/2009 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18510
20031116357 11/17/2003 03:37 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18501-8501
2006102403924 10/24/2006 10:49 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT STREET, SCRANTON, PA 18510
2006102403962 10/24/2006 10:50 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT STREET, SCRANTON, PA 18510
2008042804139 04/28/2008 11:41 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510
2008071803752 07/18/2008 02:34 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, SCRANTON, PA 18510
2008080507820 08/05/2008 03:12 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT ST, SCRANTON, PA 18510
2012062907875 06/29/2012 05:49 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510
2012070906227 07/09/2012 02:46 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Preston Ave., Scranton, PA 18510
2012080201895 08/01/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2012091001933 09/10/2012 11:34 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
125 O'Neill Highway, Dunmore, PA 18512
2012092504574 09/21/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2012100500185 10/02/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2012110703822 11/02/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
1205 O'Neil Highway, Dunmore, PA 18512
2012110802125 11/05/2012 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18510
2012112804638 11/28/2012 02:40 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510-2314
2012121101994 12/11/2012 10:05 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, Scranton, PA 18510
2012122405177 12/24/2012 02:28 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave., Scranton, PA 18510
2012122704347 12/27/2012 12:53 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE., SCRANTON, PA 18510
2012123104409 12/31/2012 02:41 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave., Scranton, PA 18510
2013010701499 01/03/2013 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
8600 HARRY HINES RD, Dallas, TX 75235
2013010906493 01/09/2013 01:18 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2013030104637 03/01/2013 02:09 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
1205 O'NEILL HWY, DUNMORE, PA 18512
2013032807475 03/28/2013 05:38 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
1205 O ' NEILL HWY, DUNMORE, PA 18512
2013040904572 04/09/2013 12:25 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, SCRANTON, PA 18510
2013041106278 04/11/2013 05:01 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave., Scranton, PA 18512
2013041703034 04/16/2013 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, Scranton, PA 18510
2013042304849 04/23/2013 01:18 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2013060403726 06/03/2013 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Bethon, PA 18964
2013070307495 07/03/2013 04:06 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2013070503592 07/05/2013 01:54 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Ave, SCRANTON, PA 18510
2013071907981 07/19/2013 05:48 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2013100107587 09/30/2013 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
1205 O'Neill Highway, Dunmore, PA 18512
2013102805856 10/28/2013 05:37 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, SCRANTON, PA 18510
2013103104902 10/31/2013 04:05 PM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 Prescott Avenue, Scranton, PA 18510
2013110701969 11/07/2013 10:53 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVE, SCRANTON, PA 18510
2013112502123 11/22/2013 08:00 AM BURSTNET TECHNOLOGIES, INC. - [Commercial]
422 PRESCOTT AVENUE, Scranton, PA 18510

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

Shawn Arcus UCC filings.

2014011406814 01/14/2014 08:00 AM ARCUS, SANDI - [individual]
507 Skyline Drive South, Clarks Summit, PA 18411
2014020501437 02/05/2014 11:06 AM ARCUS, SHAWN - [individual]
422 Prescott Ave., scranton, PA 18510
2014020501499 02/05/2014 11:14 AM ARCUS, SHAWN - [individual]
507 skyline drive s., clarks summit, PA 18411
2014020501627 02/05/2014 11:32 AM ARCUS, SHAWN - [individual]
507 SKYLINE DR S, CLARKS SUMMIT, PA 18411
2014020501742 02/05/2014 11:34 AM ARCUS, SHAWN - [individual]
507 SKYLINE DR S, CLARKS SUMMIT, PA 18411
2013091004513 09/09/2013 08:00 AM ARCUS, SHAWN - [individual]
507 Skyline Drive, Clarks Summit, PA 18411
2014011406814 01/14/2014 08:00 AM ARCUS, SHAWN - [individual]
507 Skyline Drive South, Clarks Summit, PA 18411
2012010903192 01/06/2012 08:00 AM ARCUS, SHAWN M. - [individual]
422 Prescott Avenue, Scranton, PA 18510-2314

What's interesting is Shawn's filings start January 2012 and latest is  2/5/2014 (relatively recently).  Those involve a financing company in Philadelphia - LEAF Commercial Capital, Inc.   It's a partnership of three very big companies:

http://www.leafnow.com/about.html

*"LEAF is a joint venture among Resource America, Inc., Resource Capital Corp., Eos Partners, L.P., and Guggenheim Securities, LLC."*

Asset Backed Securitization.


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## drmike (Mar 26, 2014)

*Asset Backed Securitization is:*

Financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. For investors, asset-backed securities are an alternative to investing in corporate debt.

Investopedia explains 'Asset-Backed Security - ABS'

An ABS is essentially the same thing as a mortgage-backed security, except that the securities backing it are assets such as loans, leases, credit card debt, a *company's receivables*, royalties and so on, and not mortgage-based securities.


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## drmike (Mar 26, 2014)

DomainBop said:


> Allegedly in default to Burst but no documents (or lawsuits) have surfaced yet to prove  Burst's claims that VD hadn't been paying their bills and owed them north of $100K (?).  The panic shown on WHT by then CEO Shawn after VD jumped ship seemed more like _"oh shit, we're screwed, a big chunk of our revenues just walked out the door"_ then _"a deadbeat who wasn't paying us and was a financial burden just left"_


I haven't found a hint of a document where volumeDrive  is being sued by Burst.  Doesn't mean vD isn't being sued by someone. Possible other creditors and finance  fools involved are doing some suit against vD.   

I do know, unrelated to Burst, but other suit(s) pending against vD elsewhere.  I've been parked on those documents.  Suits in multiple States and venues.

In hindsight, although I was all behind Burst, it's clear that Arcus was freaking out then on WHT because vD leaving put a big hit on income, income that was likely securitized as future income and leveraged through junk securities.


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## drmike (Mar 26, 2014)

And a parting shot...

Back when volumeDrive withdrew from Burst slyly,  there were 200-300 "left behind".  I'm unsure how this compares with total number of servers vD had (if their total or not).

It's curious, because I've claimed that I view Dunmore as having approximately 500 servers there during most of the operation time.

If 200-300 were vD's, 1/2 of the total servers left/were leaving.

Makes sense why Burst locked things up and fought like the dickens to convert those folks to Burst customers, now doesn't it?


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## splitice (Mar 26, 2014)

Who wants to bet on the L.A move date? My money is on 2-3 weeks.


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## drmike (Mar 26, 2014)

Hehe betting  But I only have Asset Backed Securities to offer.

LA 2-3 weeks?Hmm...

I think Burst has a large customer that justifies what they have out there and why they are there.

Question is if the gear, leases, etc. are or are/aren't bundled with the now about to scrutinized Securities and perhaps within grasp of creditors.  If within grasp, yeah LA could go bye-bye.  2-3 weeks is really quick in legal terms though.  

I see legal wranglings and venue arguments and dance games like their former ahhh customer vD is known for pulling on creditors.


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## rds100 (Mar 26, 2014)

I think VolumeDrive servers were not in Dunmore. I.e. they were in the other PA location and when Burst wanted to move that to Dunmore, VD moved elsewhere.

So the VD servers should not be counted towards these 500.

Also i believe it's more than 500, look at the higher electrical bills when everything in PA was merged in the Dunmore location.

If there were only 500 servers, why the hell does Burst move them in batches (at least 4 batches mentioned on that WHT thread until now). How do they transport the servers, on the back of a pickup truck?


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## drmike (Mar 26, 2014)

Hard to say about vD and where servers were siphoned out of... I suspect you are right though @rds100 

vD in the WHT thread back then was stated to have ~ 1000 servers and appeared to be at original Burst DC.

There were a few hundred left behind - 200-300... meaning 600-700 left.  Which seems very strange  since we are talking about

 15 entirely full racks leaving on the low end.

This tidbit and funny now in hindsight:



> Originally Posted by cd/home
> If they had the level of servers you say they did within your DC then I project they could owe you in excess of $10,000?





> *Burstnet*
> 
> I can't give actual numbers, but that wouldn't even cover one month's invoice with us, and would not have led to the current status. They owed us big money. There will be a lawsuit against them, you can count on it. *I suspect the leasing company will now be going after them as well.* *They probably thought the leasing company would never find them, but surprise surprise..we know exactly where they are, and will be sharing that information with them.* So even if they manage to get back online, their problem are only just starting. They will begetting served from us, and probably the sheriff knocking on their door soon to repo any servers that belong to the leasing company as well. *Tomorrow we will call their new landlord, and let them know all about their new tenant.* *I'm sure their new landlord had renovation allowances they spent on getting their space ready, and I'm sure they are not going to take to kindly to this news.*


Touche, douche!


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## drmike (Mar 26, 2014)

I have to turn off the monitor and walk away, my stomach hurts from the sheer laughter....



> *Burstnet:*
> 
> The server we have are all Colo'd equipment or leased servers, barely any owned by Volumedrive outright. We'll either take over the lease from our mutual leasing company provider, who will be quite happy for us to do such, or I'm sure they'll give us time to migrate clients or move the HD's to our own hardware.


Mind you Burst today sits here with multiple equipment leases in default...  so does volumeDrive


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## bpsRobert (Mar 26, 2014)

Wow. It seems to be becoming a daily thing with BurstNET where I think to myself "What sort of BurstNET fails will I hear about today?". I don't understand how anyone can run their company in such a fashion.


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## rds100 (Mar 26, 2014)

I'm waiting to see what bandwidth providers they will use at the new location. I.e. are they paying the bills to their current bandwidth providers or will need to jump ship.


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## drmike (Mar 26, 2014)

Right now Burst is tunneling a connection from PA to NC and customers are in world of issues / malfunctioning / MTU hell.

DC74 is the new facility....

Not bad looking network:

http://bgp.he.net/AS17216

ASN is tiny... 8,448 vs. Burst's own 296k....


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## drmike (Mar 26, 2014)

From the WHIR the other day:

http://www.thewhir.com/web-hosting-news/burstnet-sued-making-equipment-lease-payments-court-documents

"Some have speculated in industry forums [link to vpsBoard prior thread] that BurstNET is moving its business to avoid creditors, a notion that Ray said is “complete speculation” and would not comment on. However, he noted that BurstNET will address concerns in a web conference and press release next week."

Har har Mr. Ray har har.


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## XFS_Duke (Mar 26, 2014)

Shawn Arcus is leaving BurstNet after 23+ years there. I find that odd, maybe the new CEO is blaming him for everything? Dunno...

Either way, that came from Shawn himself in an email to me. He'll be gone by the end of the week.


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## drmike (Mar 26, 2014)

Shame @XFS_Duke.

I see tons of too recent documents bearing Shawn's name as well as other family members.

I would say Shawn is being pushed out.

Burst therefore has burst and this spells most certainly an end to them.


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## XFS_Duke (Mar 26, 2014)

drmike said:


> Shame @XFS_Duke.


Why shame?


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## drmike (Mar 27, 2014)

XFS_Duke said:


> Why shame?


Shame Mr. Duke, as Arcus leaving inevitably includes his brother.  It officially ends Burst.net and one of the old pillars of the industry.

Now Burst is just going to be some odd asset of some money group.


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## DomainBop (Mar 27, 2014)

> Shame Mr. Duke, as Arcus leaving inevitably includes his brother.  It officially ends Burst.net and one of the old pillars of the industry.


Burst.net has been mediocre crap since it started so that's not necessarily a bad thing.



> Shawn Arcus is leaving BurstNet after 23+ years there.


Burst didn't start offering any  hosting services until late '96.  The company operated a computer retail store for the 1st 6 years and the registered corporate name until about '98 was Shawn's Trading Post Inc.


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## drmike (Mar 27, 2014)

No doubt @DomainBop.   Mediocre.  I tried them ONCE.   Was in their short-lived UK location.   Was very bad.

Around here, 1996,  that was ahh 18 years ago.   Many folks here and in other communities weren't old enough to remember that year.  Heck good swath of folks probably weren't even born yet


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## Exelion (Apr 1, 2014)

I wonder how many colos were left behind and now can't get their property because the doors are now locked (someone in the massive WHT thread said this has already happened).


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## raindog308 (Apr 1, 2014)

I don't know if Burst's financials are quite that exotic.  A lot of big companies factor their receivables - sell them for XX% to a third party.  Seller gets ready cash now, third party makes money on the discount.  Extremely common, particularly in inventory-heavy businesses like retail.  The third parties then bills (sometimes transparently), or does an arrangement where they oversee receivables.

Or they may simply have taken out a loan.


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