Contents | < Browse | Browse >

                         THE LATEST INTERNET SCAM
  Chris E. Donnell                         

[Amiga Report is listed on a number of Internet directories for online
magazines.  One of them has spawned an informal mailing list.  This is one
of the more interesting postings that has come across it.  And I think >I<
have problems. -Jason]

Hello, my name is Chris Donnell and the events in the last few weeks have
left me both shocked and cynical about the way businesses practice in the
United States.  Being an entrepreneur myself, I thought that I was one of
the least gullable people but I found out that anyone can be scammed.

At the moment, I am the victim of threats of legal action from a company
that has defrauded hundreds of businesses and entrepreneurs like myself.
It all started about 13 weeks ago when I decided to create Entrepreneur
Weekly, a weekly Internet based newsletter designed to discuss the latest
and greatest Internet marketing techniques.  One of my goals in starting
this electronic newsletter was to bring together other entrepreneurs to
work together to create something that is as of yet does not exist on the

Soon after my first newsletter went out, which explained my idea that
entrepreneurs should work together and create an Internet shopping mall
that is totally unique, I was contacted by Reed Caldwell, the president of
ServInt Corporation.  In great excitement, I discovered that he was on my
mailing list that the newsletter was sent out to and very soon we had an
agreement.  ServInt promised to provide our members with world wide web
sites at 'group rates' and to host the Internet shopping mall.

Very recently I found out that all these promises were in fact lies and
that ServInt had both defrauded our group and potentially ruined my
integrity for recommending them.  Based on this information, I planned a
switch for all our members to a different Internet access provider and
drove down to D.C.  to confront Reed Caldwell and the ServInt Corporation
with their lies.  Since then, I have been threatened by the ServInt
Corporation's attorneys and most of the group that was with the ServInt
Corporation have switched over to the other provider and are most grateful
for saving them before any major harm was done.

Some of the lies that ServInt Corporation told were:

1) They were an $8.2 million company that did a lot of work in office
automation for law firms in D.C.  and Richmond.

Fact: Servint was founded in early 1995 and has never had any office
automation type of clients.  Furthermore, Reed Caldwell is the sole owner
and employee, besides an attorney on retainer of the ServInt Corporation. 
Not only are they not a $8.2 million company but they were founded on
monies given to Reed by his rich mother.  ServInt Corporation was making a
loss every month until they got the business that I referred to them.

2) Reed Caldwell stated that he had graduated college in 2 years.  And when
asked directly about his age he implied that he was in his late 30's.

Fact: Reed Caldwell is 20 years old, born May 24th 1975, and flunked out of
the University of Richmond last year.  When I confronted him with this lie
on my trip down to D.C.  he said, "I never said I GRADUATED from college in
2 years." , referring to the wording of his previous claim which was "I
finished college in 2 years."

3) ServInt Corporation promised a secure payment system and secure
transactions to our members.

Fact: ServInt Corporation never had the ability to implement this on their
existing hardware and operating system, since there was no way to do this
on a Linux machine.  After looking into buying a Sun, which would run the
necessary software to make this available, Reed decided that he would
rather spend the investment capital buying himself a BMW 325i Convertible,
and could not afford to do both.

The secure payment method, promised to our group, was therefore both not
possible and ServInt Corporation had no intention to make it possible.

When I confronted Reed in D.C.  he promised to write an apology letter to
my group explaining the truth about ServInt and he promised to be fair with
refunds that would be requested by people canceling their service.  Since
then, the ServInt Corporation has both denied everything I have told the
group about them, continued to lie about their history and number of
employees, and has refused to refund some of the money due to our members.
Also, they are refusing to allow people who canceled their service to
retrieve the files that were stored on ServInt's server.

The way I found out this information about ServInt was a combination of
investigative calling and inside information provided to me by someone who
was very closely involved with ServInt and disagreed with their policies.

Please email me with further questions and feel free to check out our
website with a picture of Reed Caldwell and a little more detail on this

My website URL is