http://www.caryromanoff.com/evidence1.pdf

http://www.caryromanoff.com/evidence2.pdf

You bastard! That cat is out of the bag now!

IBill, First Data in Contract Dispute
By Gretchen Gallen
Tuesday, September 21, 2004


NEW YORK – Third-party payment processor iBill filed a complaint against First Data Merchant Services Corp. alleging that the company is costing iBill $800,000 per day because it failed to make good on the promise to help transition its accounts to another credit card processor after the expiration of a contract dating back to 1998.
In legal documents obtained by XBiz, iBill contends that it could go out of business by as early as next week if the Court does not issue a temporary restraining order against First Data.

In papers filed in New York Supreme Court, iBill alleges that First Data's failure to fulfill its promise to work with the third-party processor as it moved customer accounts over to New York-based Merrick Bank could cause "irreparable harm" to its business and customer base.

IBill has been using First Data Merchant Service and First Bank Financial, collectively known as First Data, as the processor for its credit card receipts for the past six years. IBill's contract with First Data technically expired on Sept. 15.

The plaintiff, iBill, had expected the transition to be completed by Nov. 15, but now claims that First Data reneged on the promise and put iBill and its business process in jeopardy and could possibly result in iBill's closure.

IBill claims that by noon on Sept. 16, the day after its official contract with First Data expired, the credit card processor would no longer process iBill's credit card transactions, leaving iBill in the lurch and unable to continue to service its customer base of more than 4,000 Internet-based clients.

IBill had been in negotiations with Merrick Bank since mid-August to replace First Data as its processor.

IBill is asking for the court's intervention to maintain status quo and "avoid the catastrophic consequences of First Data's threatened action."

"Any termination by defendants would result in immediate, irreparable harm to plaintiff and its customer bases," the complaint said. "Cancellation of its credit card support arrangements would effectively put plaintiff's customers out of business, depriving them of any ability to function. Absent a temporary restraining order, plaintiff and many of its customers may be forced to close their doors."

Deerfield Beach, Fla.-based iBill, which is short for Internet Billing Company Ltd., is one of the leading third-party credit card processors for the online adult industry. The company is publicly traded on the Nasdaq exchange.

Nearly 78 percent of iBill’s revenues are from adult entertainment content. In 2003, iBill averaged 1.2 million transactions per month and completed approximately $330 million in gross transactions.

In July, Care Concepts I, Inc. agreed to acquire Media Billing LLC and Internet Billing Co., collectively known as iBill, from Penthouse International for $55 million in an all-stock deal.

Representatives for iBill and First Data could not be reached for comment.

Nice. I guess I should have done that, eh?

fuck, we just added iBill, hopefully this shit will get resolved......

Not sure if this helps or not:

http://www.prnewswire.com/news/index_mail....002255384&EDATE

Now that sweet deal you got isnt so sweet after all is it?

Now that sweet deal you got isnt so sweet after all is it? [/b][/quote]
not so far
we just wanted to add them as even yet another backup....

I´m sure that if there is a hell, then there are a special section for only bankers :grrr:

:lol:

Is this a "losing Visa" or only "losing the recurrings"?

I am slightly confused.

Alex

Not if your out of business next week.

Visa has left the building!!!

from what I see its bye-bye processing until merrick's setup is done. (or simply bye-bye since all of their webmasters will not dumb-fiddle until they are back up)

and its definitely bye-bye recuring forever unless this lawsuit works

Not if your out of business next week. [/b][/quote]
Well crap, I just glanced at the damn thing and thought they were partnering up completely.

My mistake - sorry :(

I have heard good, and not so good rumors, but the only facts are the court documents.

"It ain't over till the fat lady sings"

oh well, it was good while it lasted :biglaugh:

I was wondering how long I was going to keep getting the dribbles of money after not adding a new transaction since june 2003 LOL

I wish the 3rd party processors would all hurry up and close down - they all suck ass!!!! :bdance:

this is a BIG fuck up.. i mean how do you loose your contract and don't back it up..

is ibill down for the count anyway?

Would you still trust your business to them?

First thing will depend on what the judge does. If he grants the TRO against FDC then it gains IBill time to either make the move to Merrick, provided they are able to do so in time, and provided Merrick will take the recurring database they are carrying.

If that were to happen, then it's business as usual, one would assume. If not, then I'd say they are looking at Plans B and C right now.

well, its still business as usual - we got our wires on time :okthumb:

so as KK said, lets wait with the conclusions until tomorrow...

Are you an EU merchant and you got your wire today?

:(

Ibill will be here tommorow and next week

goodbye Ibill hello cc processing monopolies.

hey,
I still use DMR as my ONLY processor
;-)))

This was for US operations...

Regarding Plan A, B, and C...

How close are IBill to have a deal with Merrick? If the judge rule in IBills favor, then will IBill be able to reach the deadline? (Plan A)

I think many can remember the epoch situation, and how they made one of the most incredible turnarounds in the adult internet processing history... maybe IBill will do the same? (Plan B )

The vultures have already been spotted (Plan C) :awinky:

all your pr0n are belong to Ashcroft






















who cares if Ibill will make it or not? why would you willfully put your income and revenue at risk by trusting a company with such a dubious history?

actually, it looks as if ibill will come out of this okay, depending.

Well... we have some old accounts with them with mostly recurrings, however they also have less country/bin based scrub, than the others 3rd parties, which also counts for a few new signups. But I must agree that the future looks "grey" for 3rd party processing...

Rolo,

If I recall right, the usurers get to play on the burning sands in 7th circle according to Dante... Is kinda telling how they are grouped with sodomites and blasphemers... lol

Rolo,

If I recall right, the usurers get to play on the burning sands in 7th circle according to Dante... Is kinda telling how they are grouped with sodomites and blasphemers... lol [/b][/quote]
And attorneys!!

As per Rick Latona, the TRO was lifted, IBILL had ample time to change over.

Recurrings no more...

WOW, this is pure negative for the the industry no matter how you look at it.

Yeah and they blew plenty of smoke up a lot of peoples asses....the true believers are FUCKED!

This truly sucks in so many different ways :(

Since IBill is moving towards plan B, then I will suggest that IBill (or anyone else who suddenly find them self in a crisis) read this http://www.prsa.org/_Resources/resources/c...asp?ident=rsrc3 (Tips & Techniques: Crisis Management) and take notes... especially the part about information is important... take control of the information about the situation by telling ALL news good, and bad, but also if there is simply nothing new to report - this worked well for Epoch. IBill´s daily news briefing.

Anyone know who there main affiliate programs were?

I've lost a few thou a mth , worse way from old recurrings , but some poor bastards are prolly out millions.

Mike , isn't there a law that if events are happening to your business, you must advise in a timely manner your customers , suppliers etc? Something about "anyone that stands to be materially affected" rings a bell somewhere.

They may have some obligations since they are a publicly traded corporation, but it would be more for the stock holders.

I am not aware of any "good samaritan" laws that require businesses to tell their customers they arer going out of business.

I do not know any large players with Ibill, but I am sure there are some.

Did ARS tie their ship to Ibill awhile ago? My memory fails me....

Marc posted on Brad's board yesterday that made it sound like he was pretty wrapped up in Ibill, but that's purely an assumption on my part based on his posts.

Thks Mike , dunno why I have this Good Samaritan idea...sorry bout that , my bad.

I think SEG did a lot of biz with them.

Maybe one of the sweets will say something.

FYI , My weekly wire (which is in the scheme of things peanuts) is currently 3 days behind. Usually it arrives like clockwork.

Oh Oh....

Search Articles

iBill’s Motion Denied
By: Tom Hymes
09-22-2004


NEW YORK - The Sept. 17 motion filed by Internet Billing Company (iBill) to keep First Data Bank processing its online adult credit card transactions has been denied by the New York State Supreme Court, a lawyer for iBill confirmed to AVN Online late this morning.

Patrick L. Gibson, an attorney with the New York law firm Olshan, Grundman, Frome, Rosenzweig & Wolosky LLP, and one of the lawyers representing the IPSP in the case, stated over the phone that the motion was “denied on a procedural technicality,” but declined to comment on what exactly the technicality was or whether iBill would appeal the decision, or how the company would proceed.

However, insight into the impact of an unfavorable decision by the court on iBill’s motion was contained in the original motion, where it is stated, “iBill brings this action to save its business from immediate collapse.”

Ironically, as recently as Sept. 2, Wall Street analysts were advising consumers to seriously consider investing in iBill stock, based on its Aug. 31 acquisition by Care Concepts I Inc., a Florida-based media and marketing holding company.

According to a Sept. 2 alert by analyst Wall Street Capital Funding LLC, “Aggressive investors and traders will certainly want to take a look at Care Concepts I, Inc. (AMEX:IBD) this morning! Recently, the company issued a press release announcing it has completed the previously announced acquisition of 100% of Media Billing, LLC and Internet Billing Company® (collectively "iBill") from Penthouse International!

“iBill provides online payment technologies enabling the purchase and sale of content and other downloadable services over the Internet. iBill was established in 1996 and has generated positive operating income since inception.”

The alert goes on to state, “In 2003, iBill averaged 1.2 million transactions per month and completed approximately $330.0 million in online purchases representing un-audited fee income of approximately $45.1 million.”

As a caveat to the deal, however, the alert by Capital Funding also states, “Pursuant to an amendment to the Agreement, Care Concepts has the option to rescind the transaction if iBill's audited financials statements, as compared to the unaudited financial statements delivered in connection with the transaction, show any material misrepresentation or if certain American Stock Exchange approvals are not obtained.”

AVN Online has placed several calls for comment to principals of iBill, Care Concepts, and First Data, but has received no reply as of this posting.

Some of the large "avs" videosites use them, also a few large live networks... I know of a few PPS, and many partnership programs who uses them - but mostly I think everyone who have been in business for some time either have recurrings, or are sending traffic to companies who are using ibill.

IBill have lost marketshare, but they still processed tens of millions every month.

Marc posted on Brad's board yesterday that made it sound like he was pretty wrapped up in Ibill, but that's purely an assumption on my part based on his posts. [/b][/quote]
Well if Marc needs some help, all he has to do is ask! :o

Looks like the company stopped trading...


Prior to buying the Ibill business this compnay reported this...


""At June 30, 2004 the Company has cash of approximately $5,009 and a working capital deficit of $200,345. The Company has continually sustained losses and has an accumulated deficit of $1,818,632 reflective of significant funds expended to develop and grow the Company's business. ""


In the sale notification..

""Pursuant to an amendment to the Agreement, Care Concepts has the option to rescind the transaction if iBill's audited financials statements, as compared to the unaudited financial statements delivered in connection with the transaction, show any material misrepresentation or if certain American Stock Exchange approvals are not obtained""

Amazing lack of Due Diligence.

Nick it appears the best way to pilfer the sheep legally it is best to do it with a publicly traded company!

I dunno about the videosites but Cyberage, Cybersexnetwork, UGAS & their paysite program nastycash do all their processing in house - with their volume it'd stupid to use a 3rd party. Sexkey/Mansites (& I think FreeAgeCard) uses CCbill and Proadult uses Verotel.

I'm not really sure who the rest use.

No shit!!!! LOL

"""Penthouse received approximately $55.0 million in stock in the transaction. Penthouse acquired iBill in March 2004 in a transaction valued at approximately $33.0 million. """"

I was thinking of sites like deluxepass and similar... I think most old surviving "avs" already have been beaten into getting their own merchant accounts.

I was thinking of sites like deluxepass and similar... I think most old surviving "avs" already have been beaten into getting their own merchant accounts.[/b][/quote]
I hope not. A lot of people have shitloads of recurring's with those type of programs.

If they do, this should be a lesson to avs people, avoid free hosting and programs that require you to use supplied content. Always use multiple avs systems and your own content/hosting - regardless of the system. Not using multiple systems on one site is not maximizing your profit anyway.