Jumping in a triangle and crying "halted den Dieb" doesn't help. Look what kind of individual this Kasoff is and you can guess why and for what they need money at the moment so urgently. And then you can also understand why no authorities will do something until DR is completely cashed out.Howdy, I'm affected by this mess as well, albeit from what I read from others, I'm a small fish in this pond. Losing a quarter's income doesn’t get more enjoyable, but alas, you all have my deepest sympathies.
I have read what others have written and would like to add a few points I haven’t seen mentioned.
If we recall how Digital River GmbH, originally based in Cologne, Germany, came into being, we’ll see that they once were a fully legitimate German company called Element 5, which was bought for around $120M in 2004 by Digital River Inc. Element 5 had ShareIt as a product, and Digital River took over, operating the platform for some time before eventually transforming it into MyCommerce.
For us, I can confirm that the only contract or agreement we ever entered was the original ShareIt agreement, which is still visible in my account. It has an actual date and time when it was entered. We never signed any MyCommerce MSA, and the original ShareIt agreement includes no provisions for unilateral contract changes. Today, only the MSA 6.3 is in the account, but if I open that frame in a new tab, the "6.3" in the URL can be swapped for "6.2," "6.1," "6.0," and "5.0," and each version has a blue button at the bottom allowing me to enter into said agreements—though we never did. Moreover, since 2007, there has been no communication requesting us to sign these. This might be important regarding Digital River's right to change the agreement's terms.
Looking into the German Handelsregister (trade register) for this company, we see that they moved from Cologne to Frankfurt during the pandemic, specifically on December 7th, 2020, with another change in Frankfurt in February 2022. The Cologne company no longer exists and has been dissolved. The Frankfurt address currently listed in the Handelsregister (Wiesenhüttenstraße 11, 60329 Frankfurt am Main) belongs to TMF Group Germany, a provider of virtual offices, as seen in Google Street View.
Why is this significant?
1. The MSA 6.3 claims that the company is at the Cologne address, but how can we have a valid contract with a legal partner that no longer exists at that location?
2. It could mean we're witnessing the perfect crime, with no real accountability.
Potential Criminal Charges:
- Fraud (Betrug) - § 263 of the German Criminal Code (StGB): The intentional withholding of payments and charging fees for support services while failing to address the core issues could constitute fraud. If Digital River is intentionally deceiving partners and profiting from this situation, it may qualify as a fraudulent scheme.
- Insolvency Fraud (Insolvenzverschleppung) - § 15a of the Insolvency Code (InsO): If Digital River GmbH is insolvent and continues operating without filing for insolvency, they are in violation of insolvency law. Failure to declare insolvency promptly under German law is a criminal offense.
- Usury (Wucher) - § 291 of the German Criminal Code (StGB): The imposition of excessive fees, such as the $185/hour support fee, particularly when vendors are financially distressed, could fall under usury laws. By charging these fees while vendors seek payment, Digital River may be exploiting their vulnerable financial situation.
Enforcement Challenges:
As a GmbH, Digital River GmbH as a legal entity is protected from criminal prosecution under German law—only individuals, such as the company's management, can be held criminally accountable. According to the Handelsregister, on September 11th, 2024, the company’s Geschäftsführer (CEO) became John Murray, with an address in Minneapolis, Minnesota.
Under U.S. law, extradition for financial crimes like fraud or insolvency fraud is uncommon, especially for non-violent financial offenses in foreign jurisdictions such as Germany. As a result, it’s unlikely that Murray or his management team will face criminal charges in Germany. At most, they may face travel restrictions in Europe, but they can likely continue operating from the U.S. without facing significant legal consequences from German authorities.
TMF Group’s Role:
TMF Group has been hosting Digital River GmbH virtually since long before these questionable activities surfaced. It’s unclear whether TMF Group is aware of any wrongdoing, but perhaps they should be notified—after all, they may not want to be associated with such activities.
Involving U.S. Authorities:
If John Murray’s actions do not involve U.S. vendors, it becomes more difficult to involve U.S. federal authorities like the FBI, as their jurisdiction typically covers crimes affecting U.S. entities or individuals. Without a connection to U.S. vendors or violations of U.S. law, this could be seen as a loophole. Now, consider the Know Your Customer (KYC) and Due Diligence processes that are supposed to identify U.S. citizens and ensure they're unaffected. A question arises: Are any U.S.-based vendors here who haven't been paid and have contracts with the German GmbH as their contractual partner?
Thanks to those who provided details about Digital River Holding GmbH. My guess is that if the operating GmbH holds our money until December 31st, it will flow away to that entity, and afterward, the operating GmbH could become insolvent by the next fiscal year.
Statistics: Posted by 7tltd — Mon Oct 21, 2024 3:48 am