Quadranet’s FRAUDULENT use of personal SIN with Crissic Purchase

SkylarM

Well-Known Member
Verified Provider
In August of 2015, I sold Crissic Solutions to QuadraNet. QuadraNet agreed to keep the company online and provide services to the customers for approximately 1 year post-purchase to facilitate a smooth transition and shutdown of the company. As part of the agreement, the PayPal account was to be transferred to QuadraNet’s information (including SIN/tax information). The following legal council correspondence was sent April 10th of 2018 following the discovery and notice from the IRS regarding an unpaid tax bill.

Dear Mr. Mishan:
This office represents Mr. Skylar MacMinn with regard to the Asset Purchase Agreement (hereinafter, "Agreement") signed on or about August 10, 2015. Crissic Solutions was the seller and Quadranet, Inc. was the buyer.
As part of the Agreement, it was agreed that Mr. MacMinn (the principal of Crissic) would relinquish his PayPal account, which contained his SIN and EIN numbers, and that it would be changed by Quadranet personnel immediately upon the signing of the contract. Quadranet's personnel promised that they would substitute their own SIN and EIN numbers.
However, instead of changing the SIN and EIN numbers, QUADRANET personnel continued to use Mr. MacMinn's PayPal account, unchanged.
Mr. MacMinn initially had no idea that Quadranet personnel were continuing to use his PayPal account, unchanged. Nobody from Quadranet ever contacted Mr. MacMinn to tell him that Quadranet was conducting business under his name. Mr. MacMinn has not had access to this account since the Asset Purchase Agreement and he has not been involved in the business in any way since the Asset Sale.
After the Agreement was signed, Mr. MacMinn in late March 2018 received a Notice from the U.S. Internal Revenue Service
(hereinafter, "IRS") stating that an amount of $26,194 was due by April 25, 2018, which included a penalty of $4,190.00 and interest of $1,055.00. Mr. MacMinn has been taxed on over $100,000.00 of revenue that he never received, for the tax years 2015-2017.




The IRS was at that time requesting $26,194 in fees, including interest and fines for the “incorrect” amount filed for that tax year. This income was not something I received or approved of, and the paypal balance statements that I now have access to (as paypal relinquished the account BACK to me as it still had my SIN on file) indicate payments sent both to QuadraNet, and to Ilan’s family members. A different additional login was created under this paypal for Adam Ng, at the time a QuadraNet employee, to log in without using the Crissic paypal primary login credentials. Ilan’s contact information was also added to the Paypal account so they could handle any Paypal related issues directly so I would be unaware of the account status.

Multiple emails and in-person meetings (as I was working at Quadranet for ~1 year post sale as a support representative for QuadraNet and had no access to Crissic) relating to the Paypal information being updated took place with multiple assurances directly from Ilan that the paypal was taken care of correctly.

Further dialog via Ilan’s lawyer include things such as:

During our telephone conversation on June 29, 2018 concerning the claims by the I.R.S. against Mr. MacMinn, you stated that you would be able to designate someone to negotiate with the I.R.S. Mr. MacMinn is amenable to your suggestion. Your negotiator would be able to start with the 2016 assessment.
Please be aware that any authorization by Mr. MacMinn to allow your negotiator to communicate with the I.R.S. is without prejudice to the claims that Mr. MacMinn will assert for reimbursement of his attorney's fees and costs and any other out of pocket costs. The reimbursement claim applies to all fees and costs incurred to date, as well as all future fees and costs.




Constant phone calls, emails, and physical letters had been sent to the lawyer over the course of the last year and a half to no or minimal reply. As of the final letter was sent via my lawyer, the communication total sits at 722. This includes a letter dated April 16, 2019 (1 full year after the initial contact regarding this matter):

April 16, 2019
Re: Quadranet, Inc./Crissic Agreement
Dear Mr. Scapa:
I sent you a Settlement Agreement on March 14, 2019. I have contacted you on several occasions since then and I have not heard back from you. The document was the result of negotiations that culminated in the last proposed Settlement. As you know, the settlement process started back in October 2018
The March 14, 2019 Settlement Agreement addressed all of your client's concerns. This negotiated Settlement should have been signed by your client by now.
Additional letters have been sent regularly:


Dear Mr. Scapa:
I received your letter dated August 28, 2018. We both agree that the response from the Internal >Revenue Service is good news.
However, it clear that the I.R.S. decision was the result of the
steps taken by Mr. MacMinn to secure counsel (my Office).
As you know, initial communications with your client were totally ignored.
I can send you the paperwork showing the legal fees that Mr. MacMinn has paid to resolve this matter. All of these fees were necessary because of the actions and/or omissions of your client.
I can send you the details of the legal expenses.
I, too, look forward to working
This matter should be resolved. with you.



Re:
Quadranet, Inc./Crissic Agreement
Dear Mr. Scapa:
On July 24, 2019, four weeks ago, I sent you a letter which you were supposed to sign, on behalf of your client agreeing with the settlement which we had worked out.
( DP.H
H4 .
You never signed it.
You have had ample time to confer with your client.
I require your signature on the July 24, 2019 letter, and I need it e-mailed back to me today. If I do not receive it today, I will have to assume that there is game-playing on your part.
As you know, all fees incurred for arbitration proceedings will be added to the existing settlement amount.


As of last communication, my lawyer and Ilan’s lawyer had reached a settlement agreement for the total of council-incurred fees related to the matter. As a direct result of hiring council and starting dialog with Ilan’s lawyer, the IRS threw out the entire tax bill, essentially agreeing that misconduct was applied post-sale. The IRS is not looking for ANY money at this time relating to matters post-sale of Crissic, however I have paid lawyer fees and retainers to settle this matter. Ilan and his lawyer have not been forthcoming or willing to cooperate or communicate. They have delayed response and resolution. My council was able to secure verbal agreement with his lawyer to a settlement of fees, to which a settlement agreement was drafted and modified multiple times to their exacting specifications, to which the final draft was ignored in its entirety.


QuadraNet and Ilan have caused immense stress and pressure on my family as a direct result of their fraudulent action and ill-intent to resolve. I don’t know how to proceed further, but I cannot remain silent on such abhorrent behavior.

Any crossposting or boosting visibility of this is greatly appreciated.
 
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