✎ Years down the road, when our great grand-childrem are asking us how life was before Bitcoins, they may be asking what a Ponzi is, and that will be because in the future it's called a Garza. Perhaps it will morph into a GarzaPonzi, PonGarza, or perhaps even PonGarzOff (adding Madoff), but surely the Ponzi Scheme has earned a few alterations, or outright replacements. In the latest step of the full implosion, GAW gets sued for 350K, here's the details:
On April 8, 2015, the Mississippi Power Company (MPC) filed suit against GAW Miners, LLC, the embattled cryptocurrency company, in the Southern District Court for the Southern District of Mississippi.
MPC’s complaint alleges that it was contracted by GAW to provide services to GAW’s Horn Lake, Mississippi facility, beginning in October 2014. MPC claims that it spent nearly $50,000 to install equipment to be used by GAW’s facility. The installation of this equipment was conditioned on GAW using MPC’s electric service for twelve months.
✎ Yeah, anyone else get's their service terminated within days of not paying. This clown gets a free ride for 12 months.
The complaint further alleges that, “To date, GAW has only made one payment to MPC for electric service provided.” MPC is seeking to recover not only its installation costs, but the costs of the services provided to GAW until GAW disconnected MPC’s service in January 2015. At the time of the disconnect, MPC claims GAW was $223,818.61 past due. The total costs of damages sought by MPC, relating to the electric service provided to GAW, is $346,6479.29. MPC is further seeking interest, costs, and attorneys’ fees.
✎ AH HA!! So they use the Hashlet model for paying bills too!!
MPC is suing primarily under a theory of breach of contract. Further claims against GAW included an open account claim. In Mississippi, an open account refers to a a credit arrangement between a seller and a buyer where the seller allows the buyer, by advance agreement, to purchase without security. (See: Cox v. Howard, Weil, Labouisse, Friedrichs, Inc., 619 So. 2d 908 Miss. 1993.)
If the court does not find there to be an express contract between MPC and GAW, MPC argues an alternative theory of unjust enrichment. Under Mississippi law, unjust enrichment occurs when there is a promise, implied by contract, that one will pay a person what that person is entitled. (See: Montgomery v. CitiMortgage, Inc., 955 F. Supp. 2d 640 S.D. Miss. 2013.)
MPC is represented by the law firm Balch & Bingham LLP, which has over 250 attorneys in six different offices.
✎ All of whom just have to be licking their chops. They can smell the bleeder.
Coin Fire reached out to GAW’s CEO, Josh Garza, by email, but has not received an official comment at this time. On HashTalk, Mr. Garza categorized the situation between GAW and MPC as a “dispute over the fee structure.” ✎ Ahem .. "Bullshit"...
✎ Did you guys ask him about PayCoin? No. Ah shucks. This wasn't really necessary, I can tell you what's going on, it's a dispute over fee structure. John Garza is being asked to pay the fee (his bill), and he doesn't want to (the dispute). He can't answer anyone's questions or inquiries with a direct answer, not sure why MPC thought they were special. Then again, they are idiots for letting this ride for 12 months.
So how is this going to go down? Who cares? I don't.
If anything the Power Company (who legally rip people off daily) can slurp up a little bit of its own medication. I have no love for this company, nor do I for GAW, so in a perfect world, they'd duel, and hopefully kill each other. That won't happen however, Garnzi (Garza) is going to get ass raped in Federal Court and see exactly how big he really is not. Hey! Give MPC PayCoins!
Maybe THEY are interested in them? Or maybe, just maybe, that already happened, and that's what this is all about in the first place.
Originally Published as: "GAW Sued for Nearly $350,000 in Federal Court"