from an employee at EMO

Everyone,

I am a ex or current employee of EMO. I say or because I really am not sure what is going on right now.

However, I see a lot of speculation going on in this forum I would like to clear up. Partially to make me feel better after reading it, and hopefully to make you guys feel better. So here is what I know.

About 4:00pm CST Thursday March 9th, I was working at my desk and then was suddenly taken to our CEO's office buy a guy I have never seen before in a suit and tie.

In the office were Texas state troopers, lawers, and the new recievers team. We were then told the company was now under control of the State of Texas and not to erase or remove from the property any information/items belonging to the company under penalty of law.

We then went back to our desks to await further instructions. About 30 min later, we were told to shut down the site and put up the DDOS message, and go home.

At this point I want to explain something to you guys. Was the DDOS attack message a lie? Yes. Was it a lie for a good reason? Yes. At this point we really had no idea what was going on. We had no idea if this was going to be a hour situation, a days situation, or a forever situation, or even a missunderstanding. All we knew is we had to shut the system down right that second. So we put up the DDOS attack message, to buy time. If this could all be worked out quickly then our reputation would not be tarnished by putting up the truth. Which would of been "We just got raided by the state, we have no idea what is going, thank you have a nice day". If we did that there would of been imediate panic, when we didn't know if there was reason to create a panic.

So if everyone wants to rip on EMO for a what was a essentually a 4 day coverup message while we figured out what was going down, then so be it. I just think you should consider what you would do.

The next day on Friday, I went into work and essentially spent all day helping the recievers lock down the companies assets. By this I mean the recievers IT guy change all the password on all the systems, and make hard backups of everything. Then I was told to go home.

Saturday and Sunday I waited at home just worring about having a job on monday. The only other information I had was that they were going thought all of the companies financials and there was some hope that the situation would be worked out by monday. Sunday night I was told not to come into work until further notice.

I have started looking for another job.

Everying thing else I have heard is really second hand info from other waiting employees. I have heard we gotten the numbers much more in line. More like 200k - 300k, not the 2.5 million thats reported. I have heard that the state isn't going to let us count some money, because its not considered a liablity and not a asset, which makes the numbers worst. I have also heard some of our partners are comming to our defence and may loan us the money to cover what the state is asking us to have on hand. But I want to stress all of this is just stuff I am hearing.

Ok now for the history I have been told. I was told about a month ago the State of Texas came to us and said we had to be licenced as a money service. Which went against what our lawyers have always told us.

We said ok then, and filed the paperwork. It is my impression that the paperwork involved our banking account numbers and what we currently thing our liablities to users our. I stress a number we reported to them.

Then about 4 days before they stormed the office we were told our licence application was rejected, and we had to provide proof imediately of us having all the users money available. I beleive we were in the middle of that process, when they took us over.

I want to stress, that the state never performed a audit that I knew about of our accounting. A fact that really dumb founds me. I am not exactly sure how they can take such drastic measures without at least finding out what the numers are really like before hand. Then again I guess thats why I am not a lawyer.

So what are my feelings are on all this? I am pretty certain that no one has stolen any money. I think we have all the money in various places, just not where they initially looked. I also think that there might be some confusion about where the money has to be in order to be a licenced money business in the state of texas.

All that being said, I also go the feeling the state is dead set on liquidating us as fast as possible. Even if EMO gets through this its reputation will be tarnished making it hard to continue where it left off. Also I expect some skilled employees to be lost. All of which makes this a lose lose proposition for EMO.

So whats going to happen to peoples money?

1. EMO gets through this and the site goes back up and then people can withdrawl as normal.
2. The state decides to run emo, then I guess you will withdrawl as normal.
3. The state decides to liquidate, and then the will most likely send everyone checks.

Well thats all I know. Finally I want to say to everyone who has money frozen, I feel really bad about all this. When it all happened I can honestly say I didn't think there was anything fishy going on with the company, and that we were totally legit. I also want to say I know the directors personally and I can't beleive they would take money. I truely think this is all legal issues, and maybe some accounting issues.

Whatever happens I hope everyone gets there money back promptly.