Varadox Announcement
 

PART ONE:

VARADOX COMMUNICATIONS CORP.





As of January 25, 2002, VARADOX COMMUNICATIONS CORP. and its Licensee, VARADOX OPERATING (BARABADOS #1) CORP., has suspended its premium rate US dialer software services and has also suspended payments to its Broker distribution network. The reasons for these suspensions have to do with broker and sub-broker abuse, issuance of unauthorized dialers, and use of unauthorized and potentially illegal dialer distribution methods, in addition to the current breakdown in the 1-900 billing and collection systems in North America.



The Varadox Group is owed millions of dollars by network and local exchange carriers, and has not received the bulk of its receivables from that system since Oct 25 of last year. At this time, in light of recent events in the 1-900 industry with MCI and AT&T removing billing systems and US State and Federal regulators actively promoting broad changes to authorized 1-900 consumer protection and telecom access policies, Varadox Group?s management considers continuing with the 1-900 billing and delivery platform in the US as currently done to be risky, and to have a very short future lifespan.



These freezes in the Varadox Group corporate activities are expected to be temporary.



The Varadox Group is taking every conceivable step to ensure that all monies it is owed are collected from Local Exchange and network Carriers and from that system?s billing providers prior to making final payouts to Brokers, and wishes to inform you that all of the Varadox system Brokers will be paid all monies legitimately owing once these collections have been made.



That being said, the issues between Varadox and certain of its Broker community which involve fraudulent dialer use or breaches of the Broker agreement will be dealt with in accordance with the individual Broker agreements with the Varadox companies.



The Varadox Group will be continuing on with international calls through its dialer and with the co-operation of its international Brokers at this time (subject to enforcement of currently known and discovered breaches of any particular Broker agreement), and expects to launch 2 new US premium billed content distribution/subscription solutions to the global broker community within the next 90 days. Please stand by until those announcements for some exciting news about replacement technologies and revenue enhancement potentials.



The Varadox Group also continues in its firm corporate policy and will deal with its market sector on a hyper-compliance basis with respect to both consumer protection regulations relative to content, transport and system end-users, and with respect to timely and accurate reporting and fair treatment of its distribution partners.



The Varadox Group has also been collecting extensive amounts of data in respect to cheating dialers and boosting minutes by fraudulent means. All information gathered will be sent directly to each Broker and if required, to federal authorities, to help resolve issues that affect the entire industry. Brokers will not be paid commission for any minutes purported to be earned by fraudulent means.



The Varadox Group?s Plan of Attack to Combat and Deal with Broker Fraud



1. Do the accounting ? Varadox will spend time and resources required to get firm numbers relative to identity of sub-brokers involved, costs of non-compliance, etc. and forward the resulting claims and accountings to both brokers and if appropriate, to appropriate police or other authorities.



2. Terminate the dialer?s US operability, which was done as of today?s date.



3. Within roughly 90 days from today?s date; take a legally responsible formal position with each of the Brokers on a case-by-case basis in regards to payouts, adjustments, indemnification, charge-backs and formal dealings with any fraudulent activities.



4. Those Brokers who have not cheated and have continued to demonstrate responsible operations and the monitoring of their down lines will be paid out more promptly than the 90 day period, as their accounts clear the audit process. We believe we have begun to identify patterns of abuse, so the process of paying compliant Brokers may accelerate.



5. Varadox Group will continue to pay brokers on a bi-weekly

basis for all international minutes generated as soon as we have finished compiling all the data as mentioned above (and subject to each Broker?s continual compliance with Varadox Group contracts. We will release funds as quickly as possible to Brokers who have demonstrated good business practices.



GENERALLY


We have always been an organization that prides itself in being honest with our distribution chain and will continue to do so no matter if it is good or bad news.



We realize that with the statements made above (and the news we released to the 1-900 community as a whole), we may lose some or all of our Brokers, but have come to the conclusion, consistent with our ethics, that it is best to be done now when we can still recoup all funds from the Local Exchange Carriers and pay out the Brokers, instead of pretending to operate in ?business as usual? mode and permitting the whole distribution system to default when the regulatory boards and Local Exchange Carriers decide to cause more problems or shut down the whole system in response to shoddy business practices, cheating, breach of consumer confidence, billing abuses and fraud within our industry. That would mean that we wouldn?t get paid and ultimately, neither would the Broker community.

PART TWO:

THE VARADOX GROUP?S PLANS FOR A BETTER FUTURE


Varadox has a very strong corporate structure and we know we will be a determining force in the industry for a long time to come. We have a solid billing foundation and very strong presence with regulatory regimes in the US and with ICSTIS in Europe. We continue to build strong relationships with companies worldwide that will be involved with the new platforms we will be releasing within the next 90 days or so. These platforms are new and have not been used in the industry as of yet. These platforms will operate under similar payout structures as those you are used to, with recovery and revenue rates higher for UK and US, if all goes according to our plan.



With the new platforms we as a Company and you as the Broker should have new revenue opportunities in new billing settings, which will be designed not to have the same regulatory and single-supplier issues as the current 1-900 premium billing architecture.



Varadox also plans to be in control of the entire platform (either directly or by enforceable contracts), including billing, the network transport, payouts, security controls and working directly with regulatory regimes worldwide. We will aim not to be held at the mercy of other parties as is the case in the industry today.



Remember, in my opinion, the current disruption to the premium billing content distribution system over telecom is being driven by reactions by the Local Exchange Carriers and the various state and federal regulatory regimes due to what they conceive of as abuses of the system and of the end-user customers, and we are in turn reacting promptly to ensure that we (Varodox and its legitimate Broker community) receive all funds owed before a major melt-down happens in the 1-900 industry.



We also do not want to hurt any of our legitimate billing partners, and to preserve and enhance those relationships to feed our billing solutions for the new platforms we will be releasing to the best part of the Broker community, our honorable Brokers.



Finally, we have to and will continue to break the cheaters that destroy our industry as a whole and we will work directly with regulatory regimes so that our part of the industry is hyper-compliant with consumer protection regulations and responsive to regulatory concerns in order to do our part to ensure the dialer and premium rate subscription industry stays around for a long time so we can all make good money...



The last word



It is my regret that this has occurred, but I believe it to be best for all of us now, as once these areas are cleared up the new platforms will become a new and robust standard for along time to come, and the industry will be regulated correctly. Surfers won't get screwed and we?re all going to make solid money...



Don Eckardt

CEO





Varadox Communications Canada

Varadox Barbados Holdings

Varadox Barbados Opco 1 and Opco2

Varacom Inc Ireland




We welcome your questions and input by email only please to [email protected]



PS> We have attached the following copy of the Notice of Termination which has either been sent or will shortly be sent to Brokers with whom we have identified issues:





FOR SPECIFIC DELIVERY TO EACH BROKER INVOLVED:



Your Broker Agreement is hereby terminated with cause under section 5.0 thereof, by reason of breach of the following terms:



- cheating by sub-distributor(s) for which you are responsible, by automatically hitting up to seven (7) or sight (8) dialers from one IP address to Varadox?s premium service, in attempts to artificially inflate the number of commissionable minutes under the Broker agreements



- putting dialer links into unsolicited emails or advertisements, distributions of dialers via spam or unauthorized email in bulk



- auto?downloads in contravention of Broker agreement terms



- targeting of under-age end-users by sub-distributors



We formally point out the Indemnity under section 11 of the Broker agreement, under which Varadox may be entitled to bill you back for all damages suffered, in addition to the remedies specifically set out elsewhere in the contract. This course of action is under active consideration.



We also bring your attention to the rights within section 5.0, and in particular that Varadox has the right to set off all damages it has suffered against amounts you may be owed, as well as the right to cease compensation accrual as of and from the date of first non-compliance, regardless of when discovered. This is also being actively considered.



If you propose to re-enlist to participate in further Varadox offerings or services you will do so on the terms and conditions no less favorable to Varadox than the existing Broker Agreement, as that may be amended by Varadox, and only upon acceptance by Varadox of your application to re-enlist. This includes participation in the European-only interim dialer access, and access to future distribution and revenue programs.



Govern Yourself Accordingly

Varadox Group of Companies

Per: Don Eckardt

Fuck, i cant read all that, what does it mean in english.

Another dialer bites the dust.

Yes, but is anyone getting screwed out of money?

4. Those Brokers who have not cheated and have continued to demonstrate responsible operations and the monitoring of their down lines will be paid out more promptly than the 90 day period, as their accounts clear the audit process. We believe we have begun to identify patterns of abuse, so the process of paying compliant Brokers may accelerate.

NO ONE is going to get screwed out of anything. ALL Brokers that have been doing straight, honest activity will be paid out with no questions asked.

Tam

Thats what i needed. My hand held and it gently explained to me. Thanks.

NO WAY BABY....... we are going to have a much stronger platform and much better rates within 90 days so we have by FAR not bitten the dust now and we don't intend to eat dust anytime soon.

Ok I keep being asked if I am staying with Varadox, let me clarify this here and now. I AM indeed staying with Varadox, I signed on with this company for better or worse and no matter what. ANYONE that knows me knows well enough that if I thought for ONE instant that something funny was going on I'd be the first to bail out and the first to come to each of you and tell you to pull out.

I am staying with this Company!!! I have been offered several jobs over the past couple of hours and while I do so appreciate the looking out for me, I have a job here and I intend to keep this job. And NO I will not hide from you, I am still here for you as always and that won't change. :)

Tam

um, Tam dear, i love ya, but the girl on the front page of teenlucky looks older than my grandmother...

Dawgy? GOD man, how old is your grandma and she must have taught you well to be typing to me at such a young age. LMAO

uh Tam... your website is down, are you sure your not going anywhere????? :)

It is not, you goof.. LMAO

Where is the Adult Detective?

I think it's about time for some payback shit flinging.

Hi Tam

I'm still learning about the dialer stuff.. Wondering if you could clarify this:


" - auto?downloads in contravention of Broker agreement terms "

Do all broker agreements prohibit auto-downloads?

Brad

Hi Tam,

Please clarify: I am promoting the dialer via dialerheaven.com. That means I'm not a broker, right? Right? How am I affected by this? Can people that download the dialer via my link still use it (including US surfers) and I still get paid?

US minutes showed up for me yesterday in the stats at your site.

Richard

It means you are fucked Biatch!

Wow tam there is alot to read here..

---
I signed on with this company for better or worse
---

Are you stupid?

I sign on for better of for even better... my business revolves SOLELY around how frequently and large the checks you send me are...

too many people buy into that kind of loyalty bullshit..
take the money while you can but be honest while you do it and you'll earn long term revenues.

Thus: http://www.conversioncash.com
(call me a vulture.. but our dialer is solid because it's not 7bucks a minute) :-))

Peas to you fair and honest promoters.. & to the rest... you get what you deserve :-)

Fuck, it seems like if its not one thing its another with these dialers.

No. You will not see any US minutes until they reopen the lines.
You will continure to see international calls, and those will be paid.

Yuo saw US minutes yesterday as they closed the lines during the day. So you are seeing minutes from before they closed the lines.

Jason.

When are the dialer companies going to learn that it is about the consumer rate and not the highest payout...

Talking about better rates in the future, for the consumer or the webmaster???

$1,- payout out of $8,- consumer rate means making 12,5% of the total turnover. :Oh crap

Amen to that.

I'm sure you and the webmasters would make more money if you charge the surfer $1.50 or maybe $2.
That way I think most of the bigger sites will allow dialers.

Like the moron from dialerking has such a funny banner here.
"DON'T GET RIPPED OFF"
Funny.
He rips the webmaster off for only paying 1/8 of what they charge.
And it's obvious that the surfer gets ripped off.
All TGP's small and big should just ban his assprogram.
Rates from 4 to $8 a minute only gives dialers and the whole adult industry a bad name.

I talked with a friend a while back about his brother who just had a new computer.
He had the computer for 3 days and got called by the phonecompany that his phonebill was raising dramaticly.
1200 guilders in 1 day.
That is about $500.
He won't have to pay it since the dialer didn't disconnect after 30min. but he would never ever visit an adult site again he said.


I know guys that are a member of 3 or more paysites because they get what they pay for.
Never heard of a satisfied dialer customer who got ripped off for 4$ or more a minute.

Auto doanloading is when someone is FORCED to download this dialer without their consent or given a choice as to whether they want to download it or not. We have Active X dialers that will pop and ask them if they WANT to run it, this is not an auto download. If they can click out then this is not an auto. Auto is when someone forces it's way onto their computers without their having a choice or say in the matter.

ALL webmasters with clean accounts will be paid, this is not even a question.

As for the cost? I don't think the cost matters even, as long as the surfer KNOWS what they are paying, cheating is when they are not told what the cost is BEFORE they run this program.

THINK about this for one minute if you will please? If you run a program, I don't care what kind of program and you find you have an unreal volume of cheaters, are you going to risk their costing you your entire company and shut you down? Or are you going to do the best you can do to save your company by investigating EVERYTHING so that the honest ones who made money will be safe and so will your company?

While I know this is not a popular decision and I understand all of this and sympathize with you all, it is something that had to be done to save OUR company as well as our HONEST webmasters and resellers.

Varadox has always been run on the fact that no matter what, good or bad, popular or not popular, we will always be honest with you and all we ask is the same respect.

Again, if you have any questions about this, please send an email to [email protected] and they will be happy to help you. Include your name and account number so they know who you are and that you do honestly have an account with us. People who just are curious and don't use Varadox will not be responded to on this matter.

Tam

THIS ISNT the end for US minutes with other dialers..MAke sure you state your quotes properly..

i think people shoulda been told a few weeks in advance that us lines would be cut off. some people have hundreds of url's to edit now.

the writing has been on the walls for weeks and months about many of US 900 number lines.

true, it has been posted here as well several times

Not too much to read... this is good information...

Thanks Tam for the update... I hope those phone companies pay up...

I thought it was obvious I was talking about Varadox only, as the question was about Varadox.
But if it makes everyone feel better - only Varadox has suspended their US lines.
Other dialers are still running their US routes.

Jason.

Veradox, is the first company I have seen that is doing the right thing when they saw a potentially major crisis about to happen. They are not fucking anyone, they are actually protecting the honest webmasters from a major fucking in the long run. They are protecting the longevity of their dialer business and helping to protect the dialer business as a whole.
My Thumbs up to Tam, Don, and the entire
Veradox Company:thumbsup

Hear Hear

Jason.

maybe I'm stupid but if dialers really had the best interest of everyone in mind wouldn't they charge a realistic rate like say .75 to $1.00 per minute instead of raping people for $5-$8 per minute. As long as they charge that much there will be problems always on the horizon.

Kane, you in Portland! Cool! We should go tipie Aarons house sometime!

yeah that would be cool. I'm not sure where he lives. I met him a couple of times at some meetings they used to have every week ( they may still I just haven't gone in a long time. )

I haven't TP'd a house since I was like 16 :)

TAM babe sounds great that you/vardox is cleaning the bad apples out :thumbsup