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

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M

mziegler

Audioholic
I used to be amused/nauseated his posts because they were so obviously BS. They now remind me of Nixon's Rantings. He even hints at an enemies list.
 
j_garcia

j_garcia

Audioholic Jedi
AFAIK, Danny Richie was doing much of the designing for AV123. He could pick up their stuff very easily if he had some manufacturing to produce them, or disconnect himself from them completely...
 
m-fine

m-fine

Audioholic
AFAIK, Danny Richie was doing much of the designing for AV123. He could pick up their stuff very easily if he had some manufacturing to produce them, or disconnect himself from them completely...
Danny did crossover designs for some of the products. I am not sure how much more he did. I doubt he has rights to the full designs and the product names except for any products he designed himself, such as the LS-6 and LS-9.
 
J

just listening

Audioholic
Danny Richie sells the x-omni (his design) under another name A/V-O, as well as larger version of the x-static called the OB-7.
 
j_garcia

j_garcia

Audioholic Jedi
The OBs were around for a while before they were also marketed by AV123 in a slightly "freshened" configuration. I would expect that he doesn't "own" the design for some of the other speakers, but he more or less was responsible for the sound of the entire X line from them. I am quite familiar with his stuff and am a big fan of his, which is why my speakers are GRs :)
 
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Stereodude

Stereodude

Senior Audioholic
Danny did crossover designs for some of the products. I am not sure how much more he did. I doubt he has rights to the full designs and the product names except for any products he designed himself, such as the LS-6 and LS-9.
He should have used Mark Seaton's lawyer. :p Mark has the rights to the designs of all the products he designed. That would be the MFW-15, X-plosive, & BMF. I'm not sure if Mark owns the names or not though.
 
T

thenatinator

Junior Audioholic
Danny Richie sells the x-omni (his design) under another name A/V-O, as well as larger version of the x-static called the OB-7.
I've wondered about Mark's relationships with his designers pre-schiftering.
Where they aware of his reputation? Did they respect him or like him at any point? How much input into the design did Schifter really have? How soon did things go south, and was he ever timely with payments?

I'd really be curious to know.
 
T

thenatinator

Junior Audioholic
Here's something interesting that I found out while making some phone inquiries to the Colorado Secretary of State's office some time back. I'd been looking up information on AV451/Perpetual Technologies and searched their database. Various listings and within those listings were documents. It turned out that there were occasions when they didn't file certain reports on time. I was curious as to what the significance of that was so I called them. I was told the company is required to submit annual reports. Now, after a certain amount of time, if the annual report is not filed, the company loses the right to such things as their name - AV123. This means that anyone then can use that name and start a product line based on it within the state of Colorado. AFAIK, he never trademarked it with the USPTO. I forget the exact amount of time that has to pass before inaction is rescinded but it was something like 180 days. Now, as to whether it would be beneficial for anyone to actually want to use the name or the various product designations, I'll leave it up to them.
I think 90 percent of this could be accomplished through getting the domain name. That was there primary mode of business. I bet mark would let it go for a lottery ticket at this point, and it's possible to make an offer on an active domain. Might be funny to take it over and link to don't schifter me bro or something. But something more pratical and benificial would be a link to the manufacturers of mfw amp replacements, or suppliers of woofer and tweeter replacements.
Looks like it expires in 2012.


Registrant:
Perpetual Technologies Marketing and Sales, LLC
ATTN AV123.COM
care of Network Solutions
PO Box 459
Drums, PA. US 18222

Domain Name: AV123.COM

Administrative Contact:
Johnson, Suzanne
ATTN AV123.COM
care of Network Solutions
PO Box 459
Drums, PA 18222
US
570-708-8780

Technical Contact:
Perpetual Technologies Marketing and Sales, LLC

ATTN AV123.COM
care of Network Solutions
PO Box 459
Drums, PA 18222
US
570-708-8780

Record expires on 28-Feb-2012.
Record created on 28-Feb-1999.
 
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S

SlushPuppy

Audioholic Intern
I've wondered about Mark's relationships with his designers pre-schiftering.
Where they aware of his reputation? Did they respect him or like him at any point? How much input into the design did Schifter really have? How soon did things go south, and was he ever timely with payments?

I'd really be curious to know.
Mark Schifter was very good at lying. I can see why people like Danny and Mark Seaton worked for him. I'm embarrassed to tell this story, but WTF, who cares.

I retired from the Navy a little over two years ago. Way before MLS was exposed for the POS con-man he is. A couple of months before I retired MLS posted that business was growing so fast he couldn't keep up with it and was looking to hire a couple of people to help with the demand. I actually did a couple of searches on house prices near Longmont, and discussed the possibility of moving there with my wife. I ended up finding my current job before things progressed past a a few Internet home searches and some talk about about it with my wife.

Now, I wasn't your typical Kool-Aid drinking, "frothing at the mouth" MLS nut-hugger. With minor exceptions I posted on three sub-forums over there:

1. What are you listening to
2. The beer thread
3. Cigars/Pipes

I rarely posted elsewhere, and always avoided the "fanboy" threads. Never had any interest in it. I like music, beer and cigars, and that comprised 99% of my posts.

I did go to the N.C. GTG and met Quadman (and his wonderful family), Derek, and Bill. They seemed as normal as I'd like to think I am, and never once did I suspect anything was wrong with the company. Hell, Mark Seaton was there to demonstrate the BMF (unfortunately broke in transit). We had a nice chat about the sub, his ideas on the perfect subwoofer and some upcoming projects. He certainly didn't act like any of the forum "loonies". The X-Static Danny designed was there and sounded wonderful, and the Minis were sounding pretty good connected to an Onix tube amp. At the time I thought Mark Schifter had some kind of secret mojo and I wanted to be a part of that.

Looking back to that time, I never saw anything out of the ordinary. If I had I certainly wouldn't have entertained the idea of working for him. Danny had a killer product on display, and Mark Seaton was one of the coolest designers I ever talked to. MLS was a no-show even though he said he was coming.

In the end I'm glad things turned out as they did. I'd be deeply embarrassed to be somehow related to this, and it looks like Danny and Mark didn't get to F-d over too badly by him. Thank goodness.

I guess what I'm trying to say is nobody should EVER say anything negative about Danny or Mark for their involvement with AV123. They were victims of the lies just like I (very easily) could have been.

Slush
 
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m-fine

m-fine

Audioholic
I've wondered about Mark's relationships with his designers pre-schiftering.
Where they aware of his reputation? Did they respect him or like him at any point? How much input into the design did Schifter really have? How soon did things go south, and was he ever timely with payments?

I'd really be curious to know.
Mark's reputation was mostly very good at the time Danny and Seaton were hired. I don't know how much either of them knew, but Seaton was smart enough to protect himself contractually.

My understanding from 3rd parties is that Mark was not paid early on and that likely played a role in the MFW manuals not getting done. I also believe money for the TCA subs was supposed to flow through MLS, but it never made it to Seaton. You can guess where it likely went.

Danny and Seaton have tried to stay on the high road, so do not expect either to say anything negative publicly, nor are they likely to reveal too much privately. Don't confuse their silence as support for MLS, or for kool-aide. They are being professionals.
 
m-fine

m-fine

Audioholic
He should have used Mark Seaton's lawyer. :p Mark has the rights to the designs of all the products he designed. That would be the MFW-15, X-plosive, & BMF. I'm not sure if Mark owns the names or not though.
Mark did all of the design work for those products. Danny only did crossovers on some of the products. I doubt he has much rights to the Rocket's or the Mini's. He obviously owns the LS line except maybe the idiotic LS-4 which should never be built anyway. I think the X's were a mix, but they seem very DR influenced at the least.
 
T

thenatinator

Junior Audioholic
Mark Schifter was very good at lying. I can see why people like Danny and Mark Seaton worked for him. I'm embarrassed to tell this story, but WTF, who cares.

I retired from the Navy a little over two years ago. Way before MLS was exposed for the POS con-man he is. A couple of months before I retired MLS posted that business was growing so fast he couldn't keep up with it and was looking to hire a couple of people to help with the demand. I actually did a couple of searches on house prices near Longmont, and discussed the possibility of moving there with my wife. I ended up finding my current job before things progressed past a a few Internet home searches and some talk about about it with my wife.

Now, I wasn't your typical Kool-Aid drinking, "frothing at the mouth" MLS nut-hugger. With minor exceptions I posted on three sub-forums over there:

1. What are you listening to
2. The beer thread
3. Cigars/Pipes

I rarely posted elsewhere, and always avoided the "fanboy" threads. Never had any interest in it. I like music, beer and cigars, and that comprised 99% of my posts.

I did go to the N.C. GTG and met Quadman (and his wonderful family), Derek, and Bill. They seemed as normal as I'd like to think I am, and never once did I suspect anything was wrong with the company. Hell, Mark Seaton was there to demonstrate the BMF (unfortunately broke in transit). We had a nice chat about the sub, his ideas on the perfect subwoofer and some upcoming projects. He certainly didn't act like any of the forum "loonies". The X-Static Danny designed was there and sounded wonderful, and the Minis were sounding pretty good connected to an Onix tube amp. At the time I thought Mark Schifter had some kind of secret mojo and I wanted to be a part of that.

Looking back to that time, I never saw anything out of the ordinary. If I had I certainly wouldn't have entertained the idea of working for him. Danny had a killer product on display, and Mark Seaton was one of the coolest designers I ever talked to. MLS was a no-show even though he said he was coming.

In the end I'm glad things turned out as they did. I'd be deeply embarrassed to be somehow related to this, and it looks like Danny and Mark didn't get to F-d over too badly by him. Thank goodness.

I guess what I'm trying to say is nobody should EVER say anything negative about Danny or Mark for their involvement with AV123. They were victims of the lies just like I (very easily) could have been.

Slush
Thanks for sharing this. It’s interesting to see this retrospective. I wonder if there was ever an actual job out there anyway.
I Realize Mark was a competent liar, with a community of good and trusting people that took the bait. Upon reflection I think a lot of this retroactive finger pointing is unfair. There were 10,000 members (if you can believe that statistic) that were taken in, who believed the lie. It wasn’t that hard of a lie to believe.
I think most people have trusted someone who doesn’t deserve it, and have extended them the benefit of the doubt. While innocent until proven guilty isn’t the standard in public opinion, we often extend this to people we care about, or think we care about. A good friend will often stand up for a friend who they think is being treated unfairly. I can think of a thousand parents who will defend their children to the death for instance, evidence be damned. Loyalty is a virtue, and being a good friend is important. Blind loyalty can be dangerous, but I wouldn’t call it a sin.
One think that Mark Seaton said on another forum that resonated with me was his opinion of the other two av123ers.
“My impression was much more that Kyle was more of an eternal optimist who was continuously told things weren't as bad as it seemed and that things would be righted. MLS, even more so than other master manipulators I've encountered, was exceptionally skilled in knowing what people wanted/needed to hear. Unless someone has had significant experience with such personality types in the past, it is very easy to be misled or at least left with enough uncertainty to not take action. MLS had an amazing ability to tell a story to himself enough times that he whole-heartedly believed it, making it all the more convincing to anyone who wasn't hyper skeptical. In a similar vein I always found Suzanne to give me very straight answers, and if she didn't give an answer, it was because she didn't have one yet, rather than making things up. I can imagine some very uncomfortable positions these two and others were placed in with MLS, especially over the past 1-2 years. I'm not suggesting they be painted as saints, but the witch hunt found its target in MLS, don't let momentum spill elsewhere now that the primary focus (keeping others from getting Schiftered) is wrapping up.”

I’m not sure if this totally explains Kyles reasons for staying with av123, but I think loyalty was something that mark looked for when he hired. He could read people and knew who he was looking for. He wasn’t after someone who would rock the boat, he was after someone who he could use.
In general I think the thing that speaks volumes was the rapid collapse of the forum.. When the evidence became overwhelming and verifiable the forum died. The death of the forum was rapid. The majority of members voiced their disillusionment, their discontent and their shock. Most were banned or had their accounts deleted. Some members stayed around and advised people to stay away in not so many words. People voted with their feet. Betrayal is tough. It was a cheap life lesson for most. Had they to do it again would they rapidly throw someone like mark under the bus, I don’t know.
As far as the designers go, my interest is purely academic. I’m not trying to embarrass anyone. I don’t think there is anything to be embarrassed about. Both of these vendors have done everything in their power to provide a support mechanism for a company they probably never want to hear of again. That’s not a small thing to do. I don’t anyone is looking down on either of these two gentlemen.
I realize they don’t want to air dirty laundry. It’s just interesting to me. There has been a lot of speculation and opinions vary.
 
R

rotorooter

Audioholic Intern
I look at what's transpired over these last several months as a process. There's a beginning and a soon to be end. I'm sure there are a lot of people here who still feel melancholy for the old days and that's perfectly natural, but when the boss paints himself into a corner like Schifter did, it's also very natural to go after him, almost necessary for one's sanity. And remember, a lot of people had to be dragged kicking and screaming into this because they were too invested in that guy. The end result, the business closing, is perfectly natural too.

Schifter did a lot of things wrong, the biggest being he deliberately took advantage of his customers and did that for years. Before anyone gets too melancholy, remember that.
 
m-fine

m-fine

Audioholic
He took advantage of his customers, his suppliers, his wife, his granddaughter, his employees, his investors, his Russion whore, Russian orphans, other charities, and members of the community who were in need, and did that for years.

I am sure I missed someone in there, but you get the general idea.
 
F

FudBuster

Enthusiast
Schifter did a lot of things wrong, the biggest being he deliberately took advantage of his customers and did that for years. Before anyone gets too melancholy, remember that.
Like Matt said.... he did a hell of a lot more than that. Stiffing all of those charities was the worst IMHO. Poetic justice I think that they were what finally did him in. There isn't an excuse on the planet for doing what he did with all of those raffle proceeds.
 
R

rotorooter

Audioholic Intern
I think we're all on the same page here. Soliciting donations from your customers for bogus raffles is one of many ways of deliberately taking advantage of them.
 
T2T

T2T

Senior Audioholic
Nice Find! I suspect I'll be banned from that site for my comments. Though, I don't much care at this point as I rarely post there as it is.

Shifty,

Is that you selling off these tweeters? Granted, we live in a capitalist society - one can sell as they please.

Maybe, you'll buy some more food for another week for your family. Or, even have the novel idea to use the funds to pay for some of the poor charities that have been defrauded.
 
T2T

T2T

Senior Audioholic
Nice Find! I suspect I'll be banned from that site for my comments. Though, I don't much care at this point as I rarely post there as it is.
Looks like my response wasn't well received.

The moderators have deleted numerous personal attacks against the OP and his legal situation (about which we do not and cannot take any position). This forum does NOT allow such posts. In the case of new members who engage in personal attacks, they will not be passed through moderation. In the case of members whose posts are not moderated engaging in personal attacks, positing privileges will be suspended.
I really disagree with this standing by DIYAudio. Why can't they take a position? Why does Mark still have posting privileges on their site? He's proven that he has sold stuff in the past (outside of VA321) and didn't deliver. Why isn't DIYAudio catching onto this? Ugh!
 
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