SpinVox Investigating Letter Sent To Investors
Voice-to-text firm SpinVox is trying to identify the authors of a letter sent to shareholders that alleges financial mismanagement.
paidContent:UK has not seen the letter, but, according to a source, SpinVox believes it was sent by former management some time ago to The Sunday Times, Financial Services Authority and most investors.
A source says it centres on parts of SpinVox’s 2008 accounts, which are yet to be filed, and makes allegations of accounting irregularities including whether deals have been recorded properly and whether funds were used for company expenses.
SpinVox, led by CEO Christina Domecq, tells yesterday’s Sunday Times: “The major shareholders and the board of directors are aware of the serious allegations that have been made against the company and they take very seriously any implications regarding the company’s management and operations. The major shareholders and the board are supportive of senior management who have built a transformational technology business.”
The company’s lawyers add: “Our clients have contacted those ex-employees it believes are responsible for the contents and distribution of the letter and we are advising our client on the legal options available to it.” Those suspected of sending the letter have received “own-up-or-else messages” from the company, according to a source.
The company has been without a full-time chief financial officer since Andrew Cherry left in June 2008, since when seven of Cherry’s nine staff have also left. A financial controller and head of financial planning and analysis have also been recruited and departed since January, we understand.
SpinVox raised $100 million after launching in 2003, and a further $100 million in March 2008 but, in the last month, we have received numerous complaints from current and former staff about the allocation of company funds, including grumbles about late or non-payment of staff salaries, expenses and payments to suppliers. Most staff have accepted equity instead of salary during July and August.
Domecq told us company finances are pressured by the credit crunch and heavy capital expenditure associated with Latin America roll-outs that will nevertheless shortly take SpinVox cashflow-positive. The company last week finalised emergency funds of over £15 million, as we revealed.
The company has not responded to our invitations for comment today.
The Financial Services Authority tells us it cannot confirm whether or not investigations are underway in to companies until such time as any sanction is brought against such a company.
Or Else = Biffa Bacon's coming for all you people who believe in integrity and ethics in business, and dare question 'She who must not be named'
why would the authorities waste their time & taxpayers money investigating a privately funded small start up, which relatively has seen very little capital expenditure. Stop treating small private companies like publicly listed entities, FSA (LOL) why in the world would the FSA get involved? who cares? I would hope the media had better things to do than to listen to unemployed, disgruntled, ex-employees from a small tech start up. What a waste of time… booring.
Dan – you poor fellow! What it must be to live such a closeted life. If funds are misused then that is fraud. How possibly can it be a waste of time to investigate the (potential and alleged) misuse of tens of millions of pounds?
Oh and i suspect this would be of interest to the many unpaid small businesses that supply Spin Vox
Sorry to distract you, feel free to get back to your Playstation………….
i am the source referred to in this article, and i want to say categorically i did not write the bloody letter, although i have heard about it.
spinvox are throwing accusations at everyone, and i don't like threats – so heres my offer spinvox, pull in your heads and sort your own mess out and i wont leak anything else.
Dear Jimbo,
I agree with you. It is really important that all allegations of mis-use of funds be fully investigated and they should start in White Plains, NY with the New Horizons of Westchester debacle. I think that is a good starting point because most of the investors, employees and suppliers of SpinVox believed the untruthful press releases decribing Domecq as a sucessfull entrapeneur from the United States, when that is a one big total LIE! And let's not forget that Daniel Daulton was there in NY at the end of that situation too!
There were, to my knowledge no big investment funds put into that company, but still the part about being sucessful in something whose total failure can only be laid at their feet is a misrepresentation to all the investors in SpinVox. Yes! The basic premise of their presentation of themselves is a lie from day one.
And while all the employees, suppliers, etc. in White Plains were not being paid, Domecq was off on her adventures and lavish life style. I cannot say that about Daulton, because I don't know what he was doing or where he was during those days. At the time, I did believe he was trying his best. At least he called in!
Not knowing his background, for all these years I have given him the benfit of the doubt and have always felt he was under Domecq's spell. Only time will show whether I am/was correct or not. Truely, I believe she has used and abused him just like she has used and abused so many.
I would love to know what he knows now.
Connor
Dear John – Secret Sauce,
Don't let imtimidation tactics duct tape your mouth or your fingers. That is just their first tactic in trying to squelch this.
A full and impartial investigation needs to be done. Sure, it is a private company, but it employs real humans, services the general public and has received incredible amounts of private funding from real people.
If they have nothing to hide, why the threatening tactics to those who have possibly exposed them? Not a very smart thing to do, is it?
Do not be silenced by intimidation and threats. The truth is the truth. Bullying tactics are used by bullies. And it sure doesn't look good for them to be trying to find, threaten and scare people who are trying to get to the TRUTH!
Hang in there! It may take some time, but the Truth will come out, either now or later, but eventually it will come out. I have been waiting for nearly 9 years, and nobody will shut me up.
These were the bio of Spinvox's CEO on the company webpage in the past few years.
2006ish
"Christina is a true entrepreneur. She already has an impressive track record in start up technology-based services. For nearly a decade, she has founded and managed her own IT service businesses that have turned over US$14 million at any one time."
2007ish
"For nearly a decade, Christina has founded and run three businesses in technology-based and management services. In 2006, she won the prestigious Ernst and Young UK Entrepreneur of the Year and the Ernst and Young Science and Technology Entrepreneur of the Year and also serves on the boards of several businesses."
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Contrary to popular UK business thinking I do not necessarily see failure as a bad thing, as a famous VC once said "good judgement comes from experience and experience comes from bad judgement". What is however a big no-no in my book is to lie about it or masquerading the truth.
Dear Rodolfo,
I agree with you, so I guess what Domecq will learn from experience from this fiasco is not to lie. Quite simple, isn't it?
And Rodolfo, ask yourself this:
HOW WOULD YOU FEEL AS AN INVESTOR TO BE FINDING THIS OUT NOW?
Generally, people who never fail are people who never try risky or adventurous things. So it is alright to fail at things from time to time as long as you have learned from the experience and DO NOT REPEAT THE TYPE OF THINGS OVER AGAIN.
Alas, as I have stated in other post, I do think that Christina Domecq believes her own lies, wakes up every morning believing them and that is why SpinVox will surely fail. Any system built on lies will surely fail. . .just ask me, I live in the United States!