When we called the company to ask about the above bits and pieces of information we needed to complete our analysis, they maintain this is not a security offering. Therefore they did not have to put in the normal disclosure information. When we asked, we were told: 1) the front loads were none of our business 2) that it was a no load investment 3) the salesmen were receiving a 20% commission (which is usually implies at least a 40% front load). All on the same phone call. Then we were told the entire structure of the investment was changing anyway. One of our members alleges the principal behind this offering was also behind ‘Central Plaza’ and ‘I-Net Providers’ shut down by regulatory authorities.

CONCLUSION Because of Commercial Express refusal to answer fundamental investor questions, we have to wonder if their hiding something. IDE has no interest in pursuing this investment.

UPDATE: August 1998, shut down by regulatory authorities in Pennsylvania.

UPDATE: A new IDE member had invested in this. He was actually sent a check by the company. But it bounced, and he hasn’t been able to get anyone to return his calls.

UPDATE: The IDE member above has indications that both the SEC and the FCC have put a halt to Commercial Express activities. Allegedly investor services were passed onto Creative Entertainment, who claims they know nothing about it. More as we find out.

UPDATE: Talked to a prospective member who is trying to file a bankruptcy for the LLC to get a hold of the banking records.

UPDATE: The FBI, San Diego Branch, is allegedly claiming that this company, in conjunction with other companies, Progressive Financial, Creative Entertainment, Top Broker, NexGen Financial and Media Capital Consultants, bilked investors out of $15 million, all of it apparently going to line the pockets of the principals. One of out members wishes to start a class action suit. If you got stung with this, please let us know and we’ll put you together.

UPDATE: In Feb 99, the SEC obtained judgments against Joel A Fein, Timothy M Hazzard, Mark D McClafferty and Grace Na. Fein is ordered to pay $1.1 million plus interest, plus a $500 thousand penalty. Hazzard to repay $1.1 million, plus interest plus a $500 thousand penalty. McClafferty to repay $2.t million, plus interest plus a $750 thousand penalty. And Grace Na to repay $400 thousand, plus interest plus a $100 thousand penalty. Unfortunately this is only a third of the $15 million scammed, and it’s unknown if they even have it, or haven’t hid it overseas. We’ll see.

Also named in the complaint is Commercial Express, Progressive Financial and six other individuals who’s cases are not settled. Of the $15 million raised, only $1.4 million was actually spent on the business. They also failed to disclose a 60% front load. They delayed distributions by claiming a cooling off period after being purchased by Creative Consultants. Not so. They also claimed to have contracts with QVC. Not so.

Commercial Express was a pure scam. All of the above names have been add to the IDE’s bad guy index.