Everyone,

I am a ex or current employee of EMO. I say or because I really am not sure what is going on right now.

However, I see a lot of speculation going on in this forum I would like to clear up. Partially to make me feel better after reading it, and hopefully to make you guys feel better. So here is what I know.

About 4:00pm CST Thursday March 9th, I was working at my desk and then was suddenly taken to our CEO's office buy a guy I have never seen before in a suit and tie.

In the office were Texas state troopers, lawers, and the new recievers team. We were then told the company was now under control of the State of Texas and not to erase or remove from the property any information/items belonging to the company under penalty of law.

We then went back to our desks to await further instructions. About 30 min later, we were told to shut down the site and put up the DDOS message, and go home.

At this point I want to explain something to you guys. Was the DDOS attack message a lie? Yes. Was it a lie for a good reason? Yes. At this point we really had no idea what was going on. We had no idea if this was going to be a hour situation, a days situation, or a forever situation, or even a missunderstanding. All we knew is we had to shut the system down right that second. So we put up the DDOS attack message, to buy time. If this could all be worked out quickly then our reputation would not be tarnished by putting up the truth. Which would of been "We just got raided by the state, we have no idea what is going, thank you have a nice day". If we did that there would of been imediate panic, when we didn't know if there was reason to create a panic.

So if everyone wants to rip on EMO for a what was a essentually a 4 day coverup message while we figured out what was going down, then so be it. I just think you should consider what you would do.

The next day on Friday, I went into work and essentially spent all day helping the recievers lock down the companies assets. By this I mean the recievers IT guy change all the password on all the systems, and make hard backups of everything. Then I was told to go home.

Saturday and Sunday I waited at home just worring about having a job on monday. The only other information I had was that they were going thought all of the companies financials and there was some hope that the situation would be worked out by monday. Sunday night I was told not to come into work until further notice.

I have started looking for another job.

Everying thing else I have heard is really second hand info from other waiting employees. I have heard we gotten the numbers much more in line. More like 200k - 300k, not the 2.5 million thats reported. I have heard that the state isn't going to let us count some money, because its not considered a liablity and not a asset, which makes the numbers worst. I have also heard some of our partners are comming to our defence and may loan us the money to cover what the state is asking us to have on hand. But I want to stress all of this is just stuff I am hearing.


Ok now for the history I have been told. I was told about a month ago the State of Texas came to us and said we had to be licenced as a money service. Which went against what our lawyers have always told us.

We said ok then, and filed the paperwork. It is my impression that the paperwork involved our banking account numbers and what we currently thing our liablities to users our. I stress a number we reported to them.

Then about 4 days before they stormed the office we were told our licence application was rejected, and we had to provide proof imediately of us having all the users money available. I beleive we were in the middle of that process, when they took us over.

I want to stress, that the state never performed a audit that I knew about of our accounting. A fact that really dumb founds me. I am not exactly sure how they can take such drastic measures without at least finding out what the numers are really like before hand. Then again I guess thats why I am not a lawyer.

So what are my feelings are on all this? I am pretty certain that no one has stolen any money. I think we have all the money in various places, just not where they initially looked. I also think that there might be some confusion about where the money has to be in order to be a licenced money business in the state of texas.

All that being said, I also go the feeling the state is dead set on liquidating us as fast as possible. Even if EMO gets through this its reputation will be tarnished making it hard to continue where it left off. Also I expect some skilled employees to be lost. All of which makes this a lose lose proposition for EMO.

So whats going to happen to peoples money?

1. EMO gets through this and the site goes back up and then people can withdrawl as normal.
2. The state decides to run emo, then I guess you will withdrawl as normal.
3. The state decides to liquidate, and then the will most likely send everyone checks.

Well thats all I know. Finally I want to say to everyone who has money frozen, I feel really bad about all this. When it all happened I can honestly say I didn't think there was anything fishy going on with the company, and that we were totally legit. I also want to say I know the directors personally and I can't beleive they would take money. I truely think this is all legal issues, and maybe some accounting issues.

Whatever happens I hope everyone gets there money back promptly.

Thank you so much for this info. I'm sure we all appreciate knowing whats going on. Hopefully it will be resolved soon.

Thanks for the very detailed explanation of the situation!

NUK

is this another ploy to calm the masses? seems hard to believe u would be allowed to talk about this in the current situation

thanks!

Could have used a name like EMOguy or something...thought this was another thread that had to be deleted until I read it

Thankfully the speculation could be ended quickly unlike with the other processors...

Too bad the media had to sensationalize everything.

dont see how this ends the speculation...i find his post hard to believe and a little too convieniently timed

if as they say the DDOS was a cover up...what else are they covering up and not telling?

in the worst situation,i just hope i got my check issued bv the state
speechless now utterly insane mess

in the worst case i think a check from the state would be long time in coming

Thank you very much for this informing letter and the time it took to write and post. I do hope EMO comes back. I really liked them as I could get a real person on the phone and someone was always nice and helpful to me. I had real confidence in EMO. I am hoping for the best. I hope you can keep us somewhat informed. Thanks again.

i don't know,man
its a shame that EMO is not based in canada

I was just wondering how putting up a DDOS message as an excuse accounts for the Alexa traffic chart? Is there a way to fake that?

Thanks for the info, if you hear anymore then please keep
us updated.

I really hope that ddosfaker statement is 100% true and absolutely correct...

Thanks for this info...

Let me rephrase that statement.

We have someone who says they are from EMO...is it true? Who knows.
BUT the story makes a lot more sense than the other crap floating around.

Others have similar stories, sources that are usually trustworthy.

The ones who scream scam every second don't have much credibility in this matter.

Convienently timed? Well when else are they going to post info? Can't post it BEFORE it happens...
If they could then they have a career in fortunetelling

Must have been typing that right before I fell asleep in my chair because I don't remember typing it

Everyone,

Sorry I wasn't on last night to respond quickly to my post. I waited about a half hour then had to go.
I will be on and off today, and I am willing to answer any question I don't think would get me into legal trouble.

To answer what I have already seen:

1. Your welcome for the post, I feel its the least I could do.

2. I am not sure how what I said is covering up anything. I mean the summary of what I said is "EMO is under State of Texas recievership, the officers are scrambling to make things right, but don't hold your breath". I don't see how it can be much worst than that, and its really nothing the State of Texas hasn't already issued. I just gave more detail.

3. At no point have I been asked or told by anyone not to discuss what happened. So from that point of view I don't think I can get into any trouble posting what happened, as long as I stick to the facts, and my personal impressions of the situation.

4. Again the DDOS attack message really bothered me, but again please consider it was up for only 4 days when we needed time to sort things out. And I truely think it was better than making it immediately public what was going down.

5. I am not sure how to prove I was a EMO employee, I mean the conspiracy theorists will turn everything I say around. And trust me I know how difficult it is to verify someones identity over the internet :) I helped write the EMO verification process everyone loves so much! haha.

ddosfaker,

Can u tell us when the EMO site will be up as usual??? What is going to happen to our money inside EMO??? Please keep us updated with any news... We want our money back!!!

if there was no ddos who is this explained?
http://www.alexa.com/data/details/traffic_...emocorp.com#top
that's a massive jump that started the day of the ddos attack. and it looks like it was going down the end of the 13th. were you ddosing yourselves?

1. I do not know if EMO will ever be back up as usual, its up to the State of Texas now.

2. I laid out what will happen to your money in EMO, the worst case I have heard is: The State of Texas will liquidate EMO, and get everyone back their money from the liquidation. I don't know how they will go about this, I would expect by check through the mail. I say this is worst case, because who knows how long that will take. Again, maybe you should contact the Texas At General :) I wouldn't mind them fielding EMO customer service calls.

3. I will let you guys know what I know, as long as I don't think it can get me in trouble. I am having lunch today with some other employees, I will let you know if there is anything new.

4. VIPS: I couldn't answer your pm because I don't have enough posts in this board.

I haven't heard anything about the officers visitng banks about CC transactions.

However, I have heard they are visiting banks to get more money to cover what the State is asking for, and I have heard they are visiting some of our partners for the money. I should note I have been told the State wants us to have MORE money then just the users money to be a licenced money service.

Also, CC transactions are a accounting headache for EMO which may of been what you heard. At any given time there are pending transactions, and chargebacks. Both of which look like they are liablities, but EMO doesn't have the money. I have been told this is one of the accounting sticking points.

5. A spike in traffic is not uncommon when the site goes down. This in general creates a mnor panic in lots of people, because EMO has their money. People just keep hitting refresh while they wait. This happens even when we just take the site down to push new code. However! this was a special case, because we were down for a long time, and this has made the news. It was on News 8 Austin, and all the local channels monday night. I suspect people who don't even use EMO have been hitting the site. So the increased traffic doesn't supprize me. That number only measures requests, a better measure would be throughput which I bet is way down since we are only serving the site down message.

Thanks ddosfaker, let's hope EMO comes back online soon.

ddosfaker, really appreciate your effort by letting us know on what's happening with EMO... hope to hear more updates from you soon... Thanks...

OMG! Someone posted this with subject line "EMO Close Operations and Attorney Greg Abbott has obtained an asset freeze and emerge" on TG forum:

http://www.talkgold.com/forum/r81242-.html

Thank you for coming out with information. Really appreciate it. I had a lot of money in my emo account and want to know what I can do or who I can contact. Should I call up the state of texas? How do you do that? Can you point me in any direction as to how I could get a phone number for the people handling EMO right now?

Thanks

I agree with you - DDOS attack was a lie. That is deceitful. Any reputable company wouldn't lie.

The post is a little too convenient and I'm calling "B.S." on it.

JCS

I will say that, this will be something to do with the potential money transfer for the terrorists, so the state wants to control this kind of business, and they want to make sure that the whole thing is not related or helping terrorists in moving the money, since mosts finacial institutes are under controlled by the authority with all the clear records. Remember recently they just frozen some of the suspects accounts???

I hope EMo can get thorugh this, and after that it will be very reputable with a legit rights to operate.

I posted emo's contact info in another thread. I found it through googles cache. This guy says he was told not to go into work so I don't believe anyone will ever answer the phone. At least no one has when I've tried calling.

It's a shame what has happened. I am VERY lucky that I didn't have any money in EMO. But I did go through the verifcation process.

*Sigh* Another one bites the dust.

Now, I have one interesting question for this emo employee.

I read in a news article that emo filed for bankrupcy before the receivership happened. Can you confirm this? If EMO was doing something fishy, and actually didn't have that 2.4 million, why would EMO file for bankrupcy. In other words, IF they were trying to get away with stealing, why would they bother filing bankrupcy.

do u have an url to this article