Possible Scam?

[Ty]

My reservation also yielded an extra 15%

• If your All In reservation or upgrade was made before January 1st, 2014 we will give you an additional 35% when you come buy your Elio. So, instead of receiving 50% bonus on top of your All In reservation amount, this elite group of reservation holders will be receiving 85% of your reservation amount as a thank you for believing in the vision and giving us your support from the very beginning.

• If you have an All In reservation or upgrade from January 1st, 2014 through June 30th 2014, we will add 20% to your reservation bonus taking it to a total of 70%.

• The final group that will receive the reservation and upgrade bonus is for those All In reservation holders from July 1st through December 31st, 2014. If you are in this group, you will receive an additional 15%. This will take your reservation bonus up to a total of 65%.

I remember them doing this but forgot all about it. Thanks for the repost. Where did you find that info?

 

[DanS]

I remember them doing this but forgot all about it. Thanks for the repost. Where did you find that info?

From an email that was sent to me

 

[Elio Amazed]

Agree.

He is a broker representing Network1 and therefore calling "on behalf of Elio Motors".
That was confirmed by Network1 at the phone # that's listed on EM's website.

The broker told me that it will be possible for the folks that qualify for (private placement) this deal...
to purchase stock at 50% of what the public will be able to purchase it for once it's on the NASDAQ.

And yes, he did tell me that EM was planning to offer stock to the public in four weeks.
And he told me that it would be on the NASDAQ.

He also told me that bit about someone at Chrysler offering to buy those credits @ the tune of $300m a year.

IMO, this is just an overzealous broker trying everything he can to land private placement.
If his statements are NOT correct and EM is not happy about them, EM needs to curb his enthusiasm.
Before it reflects on EM.

Ty, you've let EM know about this, it's up to them to correct the situation.
If any of the statements this guy made are false, and it can be proven that they were made...
I would think that it could bring legal action from the feds.

So, it's a serious situation and should be dealt with immediately.

 

[Ty]

Agree.

He is a broker representing Network1 and therefore calling "on behalf of Elio Motors".
That was confirmed by Network1 at the phone # that's listed on EM's website.

The broker told me that it will be possible for the folks that qualify for (private placement) this deal...
to purchase stock at 50% of what the public will be able to purchase it for once it's on the NASDAQ.

And yes, he did tell me that EM was planning to offer stock to the public in four weeks.
And he told me that it would be on the NASDAQ.

He also told me that bit about someone at Chrysler offering to buy those credits @ the tune of $300m a year.

IMO, this is just an overzealous broker trying everything he can to land private placement.
If his statements are NOT correct and EM is not happy about them, EM needs to curb his enthusiasm.
Before it reflects on EM.

Ty, you've let EM know about this, it's up to them to correct the situation.
If any of the statements this guy made are false, and it can be proven that they were made...
I would think that it could bring legal action from the feds.

So, it's a serious situation and should be dealt with immediately.

And that's good to know. Elio has the info. In fact, I just printed out the post and gave it to Pam. From what you guys are saying, it sounds like a combo of a zealous broker, misinterpretation, and leary fans.

I'm sticking with he OTC vs. NASDAQ though...

 

[bunchathrees]

This incident reminded me of the high-pressure sales attack one commodity trader laid on me in the late 80's.

Granted, the 506C offer is/was attractive, but you either are accredited or you are not. That's how this should have been handled: "Are you accredited or could you be? No? Buh Bye."

 

[Elio Amazed]

This incident reminded me of the high-pressure sales attack one commodity trader laid on me in the late 80's.

Granted, the 506C offer is/was attractive, but you either are accredited or you are not. That's how this should have been handled: "Are you accredited or could you be? No? Buh Bye."

Well...
That was the punchline.
The three qualifying questions were asked within seconds...
But they were asked after the carrots were dangled.

I believe that it was a well structured pitch.
I also believe that the pitch would not have been/be as effective without the lead-in.
I used to work in a incoming/outgoing call center, and this is the most productive form.

In retrospect...
Though I was actually writing this stuff down from the very beginning of the pitch...
He may have actually only said, "public offering", in response to which I wrote "IPO".
If that's the case, he was probably talking about the 1A (though it sure didn't sound like it).
The bright side of that is that we may be able to purchase via the 1A within four weeks.

The rest of it...

Public Offering in four weeks.
Opportunity to buy stock @ 50% of the public price.
EM to be listed on the NASDAQ.
Someone at Crysler offering to buy the Cafe Credits @ 300m/yr.
2nd Quarter '16 production (June or July).

All that was unmistakably loud and clear.

I agree with Rob.
Logically, I can't see this professional pitching me false information that could get him busted.
I think the pitch was crafted enough to mislead, but not enough to be outside the "letter" of the truth and the law.

 

[Gizmo]

I think you have that right.

http://www.investopedia.com/terms/o/otc.asp
http://www.investopedia.com/ask/answers/06/buyotc.asp

Look Ma! I'm gettin' edumacated! Thanks fer the links. The stock market is one of those items that I haven't delved into enough to have a good grasp.

 

[bunchathrees]

Well...
That was the punchline.
The three qualifying questions were asked within seconds...
But they were asked after the carrots were dangled.

I believe that it was a well structured pitch.
I also believe that the pitch would not have been/be as effective without the lead-in.
I used to work in a incoming/outgoing call center, and this is the most productive form.

In retrospect...
Though I was actually writing this stuff down from the very beginning of the pitch...
He may have actually only said, "public offering", in response to which I wrote "IPO".
If that's the case, he was probably talking about the 1A (though it sure didn't sound like it).
The bright side of that is that we may be able to purchase via the 1A within four weeks.

The rest of it...

Public Offering in four weeks.
Opportunity to buy stock @ 50% of the public price.
EM to be listed on the NASDAQ.
Someone at Crysler offering to buy the Cafe Credits @ 300m/yr.
2nd Quarter '16 production (June or July).

All that was unmistakably loud and clear.

Now, logically, I can't see this professional pitching me false information that could get him busted.
I think the pitch was crafted enough to mislead, but not enough to be outside the "letter" of the truth and the law.

My conversation with him went in a different direction; your emphasis might be misplaced.

I do appreciate the detail and clarity of your post. Though I suspect that this is the first and last conversation of this kind that many reservation holders will have - unless their contact info is sold. It is smart for Elio to market this as an AND car, but I suspect that should this product actually come to market, it will quickly be THE car for many. And why not?

 

[Elio Amazed]

My conversation with him went in a different direction; your emphasis might be misplaced.

I do appreciate the detail and clarity of your post. Though I suspect that this is the first and last conversation of this kind that many reservation holders will have - unless their contact info is sold. It is smart for Elio to market this as an AND car, but I suspect that should this product actually come to market, it will quickly be THE car for many. And why not?

I appreciate that.
But my emphasis was not misplaced.

It actually wasn't much of a conversation.

Him: Glad you called back.
Him: Paul Elio wanted me to keep your informed of what's going on...
Him: Pitch, Pitch Pitch (as in my last post... nothing more, nothing less) ...
Me: Uh-huh. Uh-huh. Uh-huh...
Him: BTW, Is your net worth $1m or more, etc, etc?
Me: No, No and No.
Him: Sorry, you're not qualified. Please call me after the public offering though.
Me: Yep. Got your number. Thanks. Bye.

 

[ks6c]

It's interesting the number of people who want to label this a scam (it isn't) or to characterize what Mr. Nicholas may (or may not) have said as illegal (it wasn't). Nothing he says is really binding, in any case - I'll explain.

He can't sell the instruments over the phone, any more than we can buy them over the phone. He can't vet anyone as an Accredited Investor by asking 3 questions, either. This is a multi-step process and all he is trying to sell you on is taking the first step - asking for the Prospectus and the paperwork necessary to establish you as an Accredited Investor.

When you see a Prospectus (any, and I'd bet, ALL Prospectuses), one of the first things you read will be along the lines of "this is the controlling document, the ONLY controlling document, and no other written or verbal representations will be recognized." IOW, nothing Mr. Nicholas said is/was binding. You can't purchase until you have a Prospectus in hand, and you verify that you have read it. You can NOT purchase based on his representations.

Next step - you will be asked to provide investment account statements or the signature of a registered financial account manager/financial advisor/broker stating you meet the SEC's guidelines as an Accredited Investor. Legally, they can't take your word for it. AC's are considered "sophisticated" investors, capable of not only reading a Prospectus but understanding what it says and the risks involved in the investment. You will sign a statement that you have read the Prospectus, and that you understand it, too.

"50% discount" goes back to conversion terms. At the private placement stage, the company declares an estimate of valuation to communicate to investors what "share" (not Shares) of the company they would be buying. Going public (IPO, OTC, others), the company has to do the same thing, again - but time has passed, additional milestones have been achieved, their estimate of valuation goes up. The AC's interests can be converted to public Shares at this point, along with new purchasers. Here's the magic - if the Company's estimate of valuation has doubled, the AC's interests will have doubled, too, and their conversion to shares will essentially be at 1/2 the price of new investors just coming in. It's easier just to say "a 50% discount".

And this is why I feel a bit compelled to explain it all - Nobody will know or remember Network1, everybody will know Elio Motors, and it wouldn't be a good thing if talk of scam or scandal related to EM's fund-raising efforts has a negative effect on EM's reputation. It's bad enough we're dealing with the blowback of non-legitimate expressions of interest with StartEngine, giving ammunition to the naysayers that the process is tainted, we don't need to be adding fuel to the fire on the private placement side, too, especially if it's due to our own mis-understandings.