AzzaVPS Officially Rolled into CVPS

[drmike]

Fabozzi went on a bender the other night when his colomart.net was sniffed as being involved in more shell companies and someone mentioned it on WHT and we had the thread on here... see:

That was the 29th at 2AM I posted that thread and the dramarama on WHT was on the evening of the 28th.

The dramarama thread on WHT had Fabooli pulling his colomart.net site offline and set off other sites being pulled too.. Like AzzaVPS which was ghost ran without mentioning externally it was CVPS since at least last fall.

We covered the AzzaVPS story in March: see:

So, on the 29th AzzaVPS sent this out to customers:

Dear <name>,
 
Earlier this year, New Wave NetConnect LLC has acquired AzzaVPS and its assets.  
 
In order to provide a streamlined experience, AzzaVPS clients are being merged with Ch!cagoVPS, a N&w Wave NtC0nn&ct brand. AzzaVPS customers are now Ch!cagoVPS customers effective May 29, 2014.
 
Customers can now log in to the client area at https://billing.ch!cagovps.net/
 
Please note that all support tickets that were open or awaiting a response were not migrated over to Ch!cagoVPS, so if you still require any assistance and you had an open support ticket, you will need to resubmit it with Ch!cagoVPS.
 

The azzavps.com website says:

Down for Maintenance (Err 3)
Earlier this year, N&w W@ve N&tConnect LLC has acquired AzzaVPS and its assets. In order to provide a streamlined experience, AzzaVPS clients are being merged with Ch!cagoVPS, a N&w W@ve N&tConnect brand effective May 29, 2014. Customers can now log in to the client area at https://billing.ch!cagovps.net/

Which goes to the point that applying pressure on these guys in Buffalo gets some instant results when they see the edge of a door about to split their head / pocketbook.

 

[trewq]

Sooo I'm not a lawyer but just migrating over user accounts and services voids the contract, yeah?

 

[drmike]

Any time a company is sold or taken over the enforcement of contracts is murky at best.  Depends on the language of said agreements and inheritence clauses.

There is a reason these guys hide and lie about their ownership of companies.  #1 is they don't want customers mass defecting since they are tarnished.   #2  placing others - the existing owner in operating role at head of the sub company keeps the customers fooled/blinded.   #3  previously asking such owners directly about said ownership by CC has resulted in direct and intentional lies by such folks, which, at law could be an issue down the road.   #4  it likely provides lucrative tax benefits and income write downs as these fake subsidiaries buy services at full rates likely while on the backside CC probably collects very little.   It's a paper shuffle game to absorb income on the books via inflated costs. There are varieties of this billing game to subsidiaries.

 

[William]

   #4  it likely provides lucrative tax benefits and income write downs as these fake subsidiaries buy services at full rates likely while on the backside CC probably collects very little.   It's a paper shuffle game to absorb income on the books via inflated costs. There are varieties of this billing game to subsidiaries.

Yep, not entirely illegal depending on state though.

 

[drmike]

Yep, not entirely illegal depending on state though.

Same game is played by the tech giants with their foregin subsidiaries.  Like holding say patents in Ireland and charging licensing fees to themselves... I kid you not.

Just because such games are "legal" doesn't make them ethical.  Then again, nothing ethical per se about taxation either.

 

[raindog308]

Sooo I'm not a lawyer but just migrating over user accounts and services voids the contract, yeah?

In most cases the contract is a month-to-month service agreement, so it's not like the there's a lot of money at risk for the individual.

Then again, in the lowend market, people argue over dimes.

 

[DomainBop]

#4  it likely provides lucrative tax benefits and income write downs as these fake subsidiaries buy services at full rates likely while on the backside CC probably collects very little

Any gains from that could be offset by the potential fines Fabozo & Co could face for not charging New York State Sales Tax to New York residents on Azza purchases from the time Azza was acquired (last year) to the time it was absorbed into CVPS in May.   UGVPS is another one where sales tax wasn't charged to New York residents after it was acquired.  In addition Fabozo's associate Two Hounds LLC (a NY registered company) isn't charging sales tax to NY residents either on its low end brands.  The statute of limitations is 10 years on tax evasion in NY....