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Found this in another forum:
Here is a summary of information we've gathered over the last 24 hours that we find to be reliable:
As you know from our previous e-mail, the Texas State Attorney General has "obtained an asset freeze and emergency approval for a court-appointed receiver to take over the operations of unlicensed Austin-based online payment service EMO Corp because "EMO cannot account for $2.4 million belonging to its customers" and "failed to register with the Texas Banking Department and obtain a license as a 'money services business,' as required by law."
But, as with the 12DP/Stormpay fiasco last month, lying behind the "official story" here there is a story that most EMO users aren't aware of. An undisclosed source of ours who has had direct contact with an EMO Corporate Officer has learned that EMO has been working cooperatively with Texas State Regulators to resolve the licensure issue. As for mismanagement or misplacement of funds, it is apparent that the recent influx of funds to EMO has caught the curiosity of the Texas AG. But, what is an unknown cause to the Texas State Government is something with which those of us in the arena are all familiar: EMO took on many new customers and new funds, largely set off by 12DP-related events. Also, assets that are frozen in EMO's Accounts ($1.5 Million) are not regarded as assets because they are frozen, but as a liability, contributing the observation that EMO is "insolvent".
Also, according this EMO Officer, no audit has been performed by the state, and so the numbers reported on the Texas AG website appear to be calculated without any basis in fact. EMO is working out an agreement with a bank who will provide credit card processing solutions, in order to obtain proper licensure. If, for some reason, the agreement doesn't not work out, EMO will take up the matter in court: in any case, a hearing is scheduled for next week, March 21st , 2006.
Both this EMO Officer and a email we received directly from EMO CEO Todd Tredeau (as a response to our email we sent to him yesterday) reflect a relaxed, yet professional attitude toward the situation, confident that whatever audits and other investigative measures the Texas Government performs will prove that EMO's business practice has been legal and ethical, with all funds account for in their accounts.
Kevin
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