UPDATED: Mark L. Schifter, PLEADS GUILTY to suspicion of charity fraud

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H

Hugh-Melody

Audioholic
Life is too short and so we all will need to learn from our mistakes and move on.
The saddest thing about this Dane, is it is real life and there are a lot of individuals and families even that have been affected this. :( It is also a black mark on the audio industry.
 
woofersus

woofersus

Audioholic
The way Mark talked at the time, he had an ownership share in SAC - he was never clear how big a share, but we were clearly meant to believe it to be something significant. This was an integral part of his sales pitch. He said a lot about the way he valued his stake in the factory and the well-being of his employees there. As it turns out, that was all a lie - one more of many lies that he intentionally used to build up both his company and himself. Neither Mark nor AV123 had any ownership in the company, at least not based on facts that have come to light in the last few years. Mark was simply a client of SAC, one who abused the business relationship by making false claims about his role in the company. Maybe he did sincerely care about the well-being of Mr. Pu's staff, but I doubt it - if he had, he would have paid his invoices. It's one more reason why I can see no way for Mark to regain any credibility as a businessman again, at least for me. He's been a crook and a liar and a cheat too consistently, and a "silver-tongued devil" is still, in the end, a devil.

The factory itself never closed - they simply refused to continue doing business with Mark and AV123 because AV123 never bothered to pay their invoices. It would be curious to know how much of the factory invoice for your speakers actually got paid to SAC, since it would have taken a while to build up that seven-figure debt prior to being cut off (which happened some time in 2007, I think).

When thinking about all the hard work you put in with your job, the hours you invest in work and family rather than in personal interests, and all the things you've chosen to do without in order to support your family, compare that to all the ways that Mark found to leech money from his company and his community of supporters so he could enjoy life. It's a sobering comparison to make.
Correct. Mark was only a client. Now, as the U.S. distributor of the product line owned by SAC, (Onix) it would be fair to say he had some input into product decisions, but he didn't design any of them and he didn't own any of them. The X-Series and Rocket speakers were designed and owned by AV123, but they were never an Onix product really. There are a couple of products that aren't completely clear to me. I believe the Strata Mini belonged to AV123, but for some reason they never could have any built after SAC would no longer do it. It could have had something to do with minimum order quantities for the custom drivers rather than factories though.

There were some old threads where Mark talked about a new type of piano finish for the Rocket endcaps. I think that is probably a symptom of having to build the Rockets elsewhere, which means the relationship with SAC was over or about to be over, or maybe had been over for a little while and they had run out of inventory. (although I don't remember exactly when that was) You'll also notice that was around the same time as the move to Cali with the X-series speakers was finished up. Since that process took a year-ish, it would almost seem as if the whole thing was planned out ahead of time. ;)
 

Harmon

Audioholic Intern
Hugh could probably say more accurately than me, but I believe the Minis were built by SAC. That would have been right around the end of the business relationship - the Minis were reportedly discontinued because of a parts availability issue (tweeter, I think), but the timing coincides well with when Rockets ceased being built by SAC.
Yeah, that's what I'm thinking too. I've got ebony Mini's.

I recall seeing a picture of a speaker that was identical looking to the Mini but had an extra driver. Someone questioned Mark about it, and he said something about it being sold in China (or at least some oversees market). I got the impression that was Mr. Pu's version of the Mini, but who knows. I'm pretty sure the Mini's were pre-Cali, but I can't recall if AV123 ever used any other Chinese manufacuters after their relationship with SAC soured.
 
gonk

gonk

Full Audioholic
Yeah, that's what I'm thinking too. I've got ebony Mini's.

I recall seeing a picture of a speaker that was identical looking to the Mini but had an extra driver. Someone questioned Mark about it, and he said something about it being sold in China (or at least some oversees market). I got the impression that was Mr. Pu's version of the Mini, but who knows. I'm pretty sure the Mini's were pre-Cali, but I can't recall if AV123 ever used any other Chinese manufacuters after their relationship with SAC soured.
SAC did build a version of the Mini - I remember seeing pictures of it, too. The Rockets moved to some other Chinese manufacturer and the ELT525's also came from China (possibly the same factory). Come to think of it, the speed with which the ELT525's came about suggests that they were an existing product line that the second Rocket factory already had available - something that AV123 could latch on to quickly and easily and offer for sale when the X-series were struggling.
 
woofersus

woofersus

Audioholic
...Come to think of it, the speed with which the ELT525's came about suggests that they were an existing product line that the second Rocket factory already had available - something that AV123 could latch on to quickly and easily and offer for sale when the X-series were struggling.
Could be true, but I have seen Danny Richie claim crossover design for those. Maybe a redesign of something previously existing?
 
C

cschang

Audioholic Chief
Could be true, but I have seen Danny Richie claim crossover design for those. Maybe a redesign of something previously existing?
I think so. This was pretty much the case for the WAF-1. Danny and HWSNBN found an existing speaker from a manufacturer willing to work with them, had the manufacturer change the woofer and use Danny's crossover. The enclosure itself is certainly not something Danny would have spec'd with the recessed baffle. Apparently, the speaker is available in mass market around the world.

Getting the enclosure done with a nice/decent finish is the toughest part on inexpensive speakers.
 
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Hugh-Melody

Audioholic
Just saw this

Dear Friends:

It is with profound sadness that we are announcing the closing of AV123/Perpetual Technologies effective today.

We join in sending all of you our sincerest thanks and deepest appreciation for your support through these last 11+ years. Our history is rich with wonderful products and happy moments, all in the name of making great music affordable for all of you.

Sadly, recent events have cast a very unfavorable light on AV123 and have effectively sealed our collective fate. We hope that over time, we will be able to offer more information.

No amount of thanks on our part would ever be adequate enough in exchange for your past support.

Shortly we hope to be able to offer you more information about how to obtain MFW15 amplifiers should you require one. Please stay tuned to this page for updates. We hope to have this in place within the next few weeks.

In the meantime while we orderly wind down our business – allow us to once again thank you for your patronage and support through all of the times… both good and bad.

Respectfully yours,

The Team at AV123
 
Matt34

Matt34

Moderator
Amen, now if they would just stop with the continuations for the trial.
 
C

cschang

Audioholic Chief
I wonder how many order refunds will be initiated/completed.
 
T

tonygeno

Junior Audioholic
I wonder how many order refunds will be initiated/completed.
Do you think there were any recent orders? I think those that got caught in the beta testing/send me your money upfront deal (scam) will never see a dime.

Anyone know what happened on Friday?
 
GirgleMirt

GirgleMirt

Audioholic
Was there still a lot of people awaiting stuff from them? People with Gift certificates, awaiting LS6/9, or G2 or whatever speakers, subs, etc.?

The message is now up on their main webpage, so I'm guessing forums are unavailable.

No kind of apology or anything for their past actions. Simply a comment "recent events have cast a very unfavorable light on AV123"... So just a big thank you, and no apology... :rolleyes:

Their forums are also now officially closed it seems, but they were pretty damn dead with very few ongoing threads/discussions and active members anyhow...
 
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dane

Audioholic Intern
The saddest thing about this Dane, is it is real life and there are a lot of individuals and families even that have been affected this. :( It is also a black mark on the audio industry.
Sorry if I mis-spoke... In my referencing my "real life" being to busy I by no means intended to imply that anyone else's lives were any less so. I was merely stating that I don't keep up with all of these goings on anymore as much as some of you do. For those that were affected by all of this mess, I meant no disrespect.. For some of you it truly is unfortunately your "real life." :(

The way Mark talked at the time, he had an ownership share in SAC - he was never clear how big a share, but we were clearly meant to believe it to be something significant. This was an integral part of his sales pitch. He said a lot about the way he valued his stake in the factory and the well-being of his employees there. As it turns out, that was all a lie - one more of many lies that he intentionally used to build up both his company and himself. Neither Mark nor AV123 had any ownership in the company, at least not based on facts that have come to light in the last few years. Mark was simply a client of SAC, one who abused the business relationship by making false claims about his role in the company. Maybe he did sincerely care about the well-being of Mr. Pu's staff, but I doubt it - if he had, he would have paid his invoices. It's one more reason why I can see no way for Mark to regain any credibility as a businessman again, at least for me. He's been a crook and a liar and a cheat too consistently, and a "silver-tongued devil" is still, in the end, a devil.

The factory itself never closed - they simply refused to continue doing business with Mark and AV123 because AV123 never bothered to pay their invoices. It would be curious to know how much of the factory invoice for your speakers actually got paid to SAC, since it would have taken a while to build up that seven-figure debt prior to being cut off (which happened some time in 2007, I think).

When thinking about all the hard work you put in with your job, the hours you invest in work and family rather than in personal interests, and all the things you've chosen to do without in order to support your family, compare that to all the ways that Mark found to leech money from his company and his community of supporters so he could enjoy life. It's a sobering comparison to make.
Good post, gonk.

..dane
 
MinusTheBear

MinusTheBear

Audioholic Ninja
If you add the current Rocket G2 line now to their past list of vaporware, I am pretty sure they would set the Guinness World Records for most vaporware brought to the market for a single company.
 
C

cschang

Audioholic Chief
Do you think there were any recent orders? I think those that got caught in the beta testing/send me your money upfront deal (scam) will never see a dime.

Anyone know what happened on Friday?
I am just guessing that there may be a current order or two....just more wondering than anythingelse.

I also wonder what happen on Friday.
 
D

Das

Enthusiast
Amen, now if they would just stop with the continuations for the trial.
Did this happen again on Friday? Was wondering if an imminent stint in jail is what forced them to decide to close.

Also, did they ever accept money for the Ricket G2's that were supposed to arrive in the July shipment?
 
Matt34

Matt34

Moderator
Did this happen again on Friday? Was wondering if an imminent stint in jail is what forced them to decide to close.

Also, did they ever accept money for the Ricket G2's that were supposed to arrive in the July shipment?
I haven't heard the outcome from last Friday either.
 
GirgleMirt

GirgleMirt

Audioholic
If you add the current Rocket G2 line now to their past list of vaporware, I am pretty sure they would set the Guinness World Records for most vaporware brought to the market for a single company.
Lets hope they didn't "sell" a lot of those... Were they taking pre-orders? Or selling them, taking the money, and were supposed to ship them when they became available? Or were they not sold yet?
 
B

BWG707

Audioholic
Do you think there were any recent orders? I think those that got caught in the beta testing/send me your money upfront deal (scam) will never see a dime.

Anyone know what happened on Friday?
I believe they used that as a last ditch effort to collect (scam) money to help pay off fines, mortage payments, food, etc. What a crying shame! I myself can not believe that once MLS was indicted people still would give that SOB money. I guess if you contact enough people you're bound to find some willing to give up their money. It's all about numbers, the more people contacted the more chance a finding someone gullible enough to fall for the "MLS psych". I do feel badly for anyone caught up in this AV123 fiasco.
 
C

cschang

Audioholic Chief
I believe they used that as a last ditch effort to collect (scam) money to help pay off fines, mortage payments, food, etc. What a crying shame! I myself can not believe that once MLS was indicted people still would give that SOB money. I guess if you contact enough people you're bound to find some willing to give up their money. It's all about numbers, the more people contacted the more chance a finding someone gullible enough to fall for the "MLS psych". I do feel badly for anyone caught up in this AV123 fiasco.
I too was baffled when after the indictment, people were still buying. The MFW thread at AVS just amazed me. I just figured that there are many that are willing to do business with a crook to get a perceived good deal.
 
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