Last post I gave a brief synopsis of the original complaint submitted by LG Technologies and also picked a few statements from Edwards Shin declaration.

One of the bigger complaints or allegations made by LG is that Shin purposely diverted payments into his own personal bank account that was supposed to have gone into LG’s account. They also claim that it is possible that LeadPoint or Marc Diana were involved with the misdirection of payments. Both Shin and LeadPoint refute these allegations in their declarations.

Shin claims that it was simple mistake due to similar username and passwords and that every mis-directed payment was paid to LG with cashier checks and that everything was made right as soon as he was aware of the error. Just to remind you, LG is claiming that over million dollars were mis directed into Shin’s personal account. According to Thomas Moyes, LG’s CFO, declaration made on 4/21 and the submission of LG bank statements, Shin did not make all the payments he claims to have made. LG bank statements show that Shin only paid back $496,679.64 out of the $1,071.679.61.

In defense of any collusion with LeadPoint, CFO Jeff Spain made a declaration recounting the happenings from their point of view. Spain claims first that LeadPoint has no control of over where payments are sent to and that is left completely up to the user. All users/clients of LeadPoint set up and have full control of their accounts via an online portal that is username and password protected. LeadPoint, according to Spain, has no knowledge of the passwords of users or have any ability to manipulate account details. With regards to the missing payments in LG’s account, Spain claims that after being aware of the situation made by LG’s CFO, Moyes, proper steps were taken to inform Shin that payments were being directed to a wrong account and that it needed to be changed. Emails submitted to the court support Spains statements. Spain also claims that he personally followed up with Shin to insure that the proper steps were made and according to Spain, Shin assured him that everything was taken care of. At that point he assumed everything was corrected.

Spain then was surprised to receive another email from Moyes stating another discrepancy. At that point Spain provided detailed payment records to Moyes of where the money was sent to.

Any thoughts on this case????

.

.

.