Close

    • Proof that Evosport is thousands in debt and soliciting customers for generation of capital

      Most of you saw that Benzboost broke the story last week on Evosport's debt and failure to deliver parts to customers. We quoted this debt as in the hundreds of thousands but now have exact up to date figures that were released by Evosport themselves. Where and why would they reveal these figures? They revealed the details in documents seeking investment from a select, hand picked group of customers in order to get money they need flowing in.

      Evosport has about $300,000 of debt with a quarter million of back orders that have not been fulfilled. They are cash strapped so they have hand picked a number of their customers to solicit for investment purposes. We have been able to get a hold of the proposal with all the details from more than one source. This investment group is being spearheaded by Jim Brady (James J. Brady of Ringler Associates) who is one of their customers. He is also a CLK63 Black Series owner and it is Black Series owners who are mostly being targeted for investment. Why Jim Brady is doing this for Evosport, we have no clue but will certainly try to find out.

      The investment documents are all detailed below. They verify that what was written previously is accurate. We now know the investment amount each customer is being asked to produce is $100k minimum. The documents are dated April 2011 so this information is as up to date as possible. Additionally, we do not know if Jim Brady has already invested as numerous sources have given us varying figures on his own commitment. It could be that he has already committed funds and that they have not been enough to pull Evosport out so other sources are being tapped.

      We feel this information is necessary to not only validate our investigative journalism, much of which was already confirmed by customers coming forward to say they had not received their parts as well as JRCART confirming his issues with Evosport, but also to warn potential investors and customers of the current situation. It is irresponsible to continue to collect money from customers who expect delivery of their parts when there are very real issues that affect if Evosport will even continue to be viable. Not to mention that Brad Otoupalik e-mailed BenzBoost with veiled threats about "slander" which this isn't, it is completely factual based on details Evosport has verified in its own documents sent out into the public. Attempting to silence this on MBworld and threaten us only caused more people to be willing to come forward in support of what BenzBoost had the courage to reveal. We will not be pushed around or intimidated by Evosport or anyone else for that matter for providing the community with the truth MBworld hides from them.

      You can verify all the information in the documents below. You can also see the questionnaire that attempts to assess just how much money the potential investor has. Evosport's fiscal information is all detailed as well as debt and pending litigation involving a damage claim to a Lamborghini. We have also been told of liens which if it becomes necessary we will look into in much further detail. Evosport is apparently in damage control mode attempting to pay off what they can which we have not been able to verify but have received some anonymous tips stating so. Additionally, one tip stated that Bob Otoupolik's credit cards have been locked but we do not know if this is true. If anyone has any information to verify this tip, do not hesitate to contact us.











      This article was originally published in forum thread: Warning to Mercedes Enthusiasts! Evosport hundreds of thousands in debt, not delivering parts started by Sticky View original post
      Comments 493 Comments
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by Barfly Click here to enlarge
        Wake up Internet Brands, Evosport is dragging your forum and reputation through the mud, and the admins are making a mockery of the site and the membership.
        Why not just let them continue to do so? It only makes this site and the reason for its existence all the more legitimate.
      1. c32AMG-DTM's Avatar
        c32AMG-DTM -
        Click here to enlarge Originally Posted by Sticky Click here to enlarge
        Well thank you, our primary goal is to protect the enthusiast, not vendors. We prefer vendors who can stand on their own merit and have and will continue to reject vendors who abuse the community.
        What a novel way to run a forum... certainly goes against the grain. Click here to enlarge

        That said, I don't think Evosport is going to disappear. What this all really hinges on is the potential investors. Will they invest or won't they invest. If they do not, we are talking hundreds of thousands which Brad's father can cover if necessary or Simon's family even. Split between them, they can weather the storm.
        While I don't know Brad/Bob/Simon's financial situation, I'm inclined to agree - I don't think we're seeing evosport disappear from any of this, troubling as it may be.

        I just don't know how this much debt accumulated this rapidly in basically the first quarter of 2011. If this is what they disclose to investors who knows what the real numbers really look like. Plus, this disclosed debt does not factor in investors so it could potentially easily rise to well over a million which still isn't back breaking.
        Well, this is the (alleged) financial situation being reported in early 2011... doesn't mean that the company's fiscal health was peachy on 12/31/2010 you know. The $300k of short-term debt is probably a few sources, but mainly a revolving line of credit that's utilized when the company needs liquidity. They appear to have either tapped that out, or maybe their lender scaled back the max amount of the line, which can put a company in a pinch pretty quick.

        As for the bolded-part above - bingo. Any investor looking to contribute $100k+ to buy B shares of evosport, would probably require seeing at least the last 3-5 years' worth of financials. Balance sheet, income statement, earnings reports, stock valuations, etc. To me, the posted documents are really just a "feeler" for prospective investors and, if you're both interested and meet the accredited investor standard, there's probably a much more intensive follow-up packet of info you obtain for your own due diligence. No one in their right mind (IMHO) would scratch a check based solely on that one sheet of paper with "approximate" unaudited figures for gross revenue, debt, corporate backlog, etc.

        The part I don't like is the continued order backlog and knowingly using that money to fund other aspects. The evidence sure is mounting and it will be interesting to watch this play out.
        Agreed 100%, on both parts. Thanks for providing an outlet for discussion of such matters.
      1. Yomama69's Avatar
        Yomama69 -
        Click here to enlarge Originally Posted by anon995 Click here to enlarge
        I recently tried to purchase certain parts from them (before this whole mess started) ... and they specifically told me not to PM them but to email them ... I found this VERY suspicious, they would not answer any questions via PM ... so I can verify this is true.


        GREAT JOB STICKY!!! ....

        you have officially proved they have gone Ponzi Scheme ... now the legal evidence is building up at an astonishing rate ... I would be shocked if they don't disappear as a company by holiday season (if not by summer at this pace) ...
        Do you actually know what a Ponzi scheme is?
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by c32AMG-DTM Click here to enlarge
        To me, the posted documents are really just a "feeler" for prospective investors and, if you're both interested and meet the accredited investor standard, there's probably a much more intensive follow-up packet of info you obtain for your own due diligence. No one in their right mind (IMHO) would scratch a check based solely on that one sheet of paper with "approximate" unaudited figures for gross revenue, debt, corporate backlog, etc.
        You are absolutely correct. Sources who received this packets have stated there is a much more formal proposal on the way. This was mostly a "feeler" but interesting to see even when they are trying to portray themselves in a good light there is still an easy $300k of debt and a 1/4 million of orders pending.

        It doesn't feel like very solid ground, does it?
      1. GLK4matic's Avatar
        GLK4matic -
        Now that Evosport has admitted to their issues, I think that they should make a formal apology to Benzboost for basically saying that all the info posted about them on this site was BS. Just my thought on the topic.
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by GLK4matic Click here to enlarge
        I think that they should make a formal apology to Benzboost for basically saying that all the info posted about them on this site was BS. Just my thought on the topic.
        You are quite correct, they should, but they would prefer to ban/delete than do the more difficult thing which is to take accountability and admit their mistakes. So, don't hold your breath.
      1. Sticky's Avatar
        Sticky -
        Also, if you guys want to share this story on MBworld just use a shortened link like this one: http://is.gd/EBZSdT

        That will link to here and it will take them a while to censor at which point another link with a url shortener can be created. So don't worry about the censorship.
      1. JRCART's Avatar
        JRCART -
        Click here to enlarge Originally Posted by GLK4matic Click here to enlarge
        Now that Evosport has admitted to their issues
        They have? Where and when?
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by JRCART Click here to enlarge
        They have? Where and when?
        He is saying they essentially admit them in their documents. They have not publicly taken any responsibility or admitted any wrongdoings, instead choosing to try to keep things quiet.
      1. GLK4matic's Avatar
        GLK4matic -
        Click here to enlarge Originally Posted by Sticky Click here to enlarge
        He is saying they essentially admit them in their documents. They have not publicly taken any responsibility or admitted any wrongdoings, instead choosing to try to keep things quiet.
        Yes that is what I meant.
      1. LZH's Avatar
        LZH -
        Click here to enlarge Originally Posted by Sticky Click here to enlarge
        He is saying they essentially admit them in their documents. They have not publicly taken any responsibility or admitted any wrongdoings, instead choosing to try to keep things quiet.
        They haven't admitted to any wrongdoing per se. I think their perceived business practices are what everyone is up in arms about. But, they haven't shared that with anyone either - although the writing seems to be on the proverbial wall...
        The only thing they have admitted to is 1) dropping the ball on Jim's build, 2) that is was not a normal blower install and 3) there was "substantial" damage to the front clip. Many called those three excuses exactly that - excuses. Personally I think 5 months is enough time to build just about anything given the proper resources - but apparently their (Evosports) resources are, and have been, quite limited due to a financial/cash flow crunch. But then why take someone's money when you can't deliver ON TIME ??? That is the problem I have with the automotive industry coming from a racing background - nothing is EVER done on time.

        Personally, I think the way all this has been handled by the mods on MBW has made it even worse. The phrase, "no sense in defusing a bomb that has already gone off" could be their thinking.....but coming forward, making a public statement and trying to clean up the mess as well as salvage their reputation is something they should think long and hard about it. Or perhaps the damage has been done and nothing will make any difference. They have said in the past that they really don't make much money off these boards. I find that interesting considering the docs above show these boards as their number one source of marketing and revenues. Click here to enlarge So - something tells me that making a statement and attempting a totally transparent resolution to these "issues" would be in their best interest. Especially considering the number of views here.
      1. anon995's Avatar
        anon995 -
        btw ... in those official documents provided ... look how going back over the last 5 years of income they all have "unaudited" written next to them. Basically they are admitting they are unverified numbers.

        P.S. Rotora & RSS make their rotors, so if another company can become distributors they can sell the same sets for lower price I'm sure.
      1. Barfly's Avatar
        Barfly -
        Click here to enlarge Originally Posted by LZH Click here to enlarge
        They haven't admitted to any wrongdoing per se. I think their perceived business practices are what everyone is up in arms about. But, they haven't shared that with anyone either - although the writing seems to be on the proverbial wall...
        The only thing they have admitted to is 1) dropping the ball on Jim's build, 2) that is was not a normal blower install and 3) there was "substantial" damage to the front clip. Many called those three excuses exactly that - excuses. Personally I think 5 months is enough time to build just about anything given the proper resources - but apparently their (Evosports) resources are, and have been, quite limited due to a financial/cash flow crunch. But then why take someone's money when you can't deliver ON TIME ??? That is the problem I have with the automotive industry coming from a racing background - nothing is EVER done on time.

        Personally, I think the way all this has been handled by the mods on MBW has made it even worse. The phrase, "no sense in defusing a bomb that has already gone off" could be their thinking.....but coming forward, making a public statement and trying to clean up the mess as well as salvage their reputation is something they should think long and hard about it. Or perhaps the damage has been done and nothing will make any difference. They have said in the past that they really don't make much money off these boards. I find that interesting considering the docs above show these boards as their number one source of marketing and revenues. Click here to enlarge So - something tells me that making a statement and attempting a totally transparent resolution to these "issues" would be in their best interest. Especially considering the number of views here.
        MBW is a money pit for Evosport, without it I doubt they would've gotten off the ground at all. Removing it from their tyrannical control at this point would be also be devastating to them. Too bad they run the site like a pissed off child, they deserve to have it yanked from their control.
      1. LZH's Avatar
        LZH -
        Click here to enlarge Originally Posted by Barfly Click here to enlarge
        MBW is a money pit for Evosport, without it I doubt they would've gotten off the ground at all. Removing it from their tyrannical control at this point would be also be devastating to them. Too bad they run the site like a pissed off child, they deserve to have it yanked from their control.
        I agree on all points. That "sticky" reassignment thread over there in the C63 forum would seem to indicate that something is going on...to what extent remains to be seen.
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by LZH Click here to enlarge
        Personally, I think the way all this has been handled by the mods on MBW has made it even worse. The phrase, "no sense in defusing a bomb that has already gone off" could be their thinking.....but coming forward, making a public statement and trying to clean up the mess as well as salvage their reputation is something they should think long and hard about it. Or perhaps the damage has been done and nothing will make any difference. They have said in the past that they really don't make much money off these boards. I find that interesting considering the docs above show these boards as their number one source of marketing and revenues. Click here to enlarge So - something tells me that making a statement and attempting a totally transparent resolution to these "issues" would be in their best interest. Especially considering the number of views here.
        They put incredible emphasis on the boards. How can they claim not to? If it wasn't so important why would they censor/close/delete/ban anything that may bring this issue to light? Why would they ban links to sites not under their direct control? Why would they edit and delete PM's as many users have stated has been taking place? It isn't even just with this issue, pretty much anything in the past that would portray Evosport negatively would be handled in a very similar manner. Clearly they take the boards very seriously and monitor them very closely.

        I think you are correct, a transparent resolution would be best but they have already dug themselves a hole. They are going to try to continue going down the route of keeping things quiet on MBworld and it would not surprise me in the least if they attempted to stoop so low as to try to stop everyone from talking about it even in other places. It's too late for that, they continue to mis-manage this situation.
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by LZH Click here to enlarge
        I agree on all points. That "sticky" reassignment thread over there in the C63 forum would seem to indicate that something is going on...to what extent remains to be seen.
        Something is definitely going on but it seems Evosport still has a strong grip as any threads on this topic are closed or delete. Yes, despite Brad saying that would not take place.
      1. Sticky's Avatar
        Sticky -
        Click here to enlarge Originally Posted by Barfly Click here to enlarge
        MBW is a money pit for Evosport, without it I doubt they would've gotten off the ground at all. Removing it from their tyrannical control at this point would be also be devastating to them. Too bad they run the site like a pissed off child, they deserve to have it yanked from their control.
        If they lose control or not is irrelevant as the answer really is to create an alternative that is not and never has been under their influence. MBW is broken beyond repair, there is no fixing it. These boards serve as the primary source of info on the topic of Mercedes/Tuning for a lot of people and they are taken very seriously by companies. IB has made their millions using these boards. MBW and Evosport clearly feel threatened and exposed at the moment, like they never have before.

        Things are really being shaken up and it is to the enthusiasts benefit... finally.
      1. nielsll's Avatar
        nielsll -
        ?
      1. JRCART's Avatar
        JRCART -
        Click here to enlarge Originally Posted by nielsll Click here to enlarge
        ?
        ? LOL Lou, I don't understand your code
      1. nielsll's Avatar
        nielsll -
        No code . Seeing impact on rep points