In August 2006 I attended a presentation hosted by Marcel Gelineault, National Sales Manager of Alpha Multimedia, for an investment opportunity offered with the purchase of a Communication Kiosk. In the presentation they claimed to be in association with Bell Canada and that they planned to setup 700 Kiosk machines all over Canada by 2008.
They claimed that the Kiosk would generate income in the following ways.
Through advertisements of big organizations with whom they already had contracts.
Through internet usage, video email and through gaming.
It will also include multiple services, and it would be upgraded to use VOIP phone, Wi Fi, and e-ticketing.
At the time of presentation I was told that these Kiosk will be installed in prime locations such as major shopping malls, Govt. public places such as Airports, Hospitals, Hotels, Health registration, Driving registration, Passport offices, Transit locations, Colleges / Universities and other busy areas to ensure maximum consumer exposure for the communication Kiosk and its digital advertisement etc.
The cost of one Kiosk was $18, 000 including $1, 000 location fees plus taxes. I was told and read in the literature that I would get my Investment back in 6-8 months.
During the presentation I asked them to provide me with the statement of income of the current kiosk machines installed in different locations and the list of available locations, in response they said that it would be provided after the agreement.
One of the things that gave Alpha Multimedia credibility at the time was that they stated in their presentation and in their literature that they had partnered up with Bell Canada. If a huge corporation such as Bell Canada was allowing them to use their name/logo then they must be legitimate.
The 'Turnkey Business' consisted of providence of a location, kiosks with: Public Internet Access Voice over IP payphone, Games, Wi FI Wireless Internet Access, Video email, advertising and all the required software and hardware to have all these features and remote monitoring.
The location, installation, operation and maintenance of the kiosks were the responsibility of Alpha Multimedia.
I had an agreement on 14 August 2006 and bought 2 Kiosks a total investment which was worth $41, 400 including taxes.
Once they received the payment they did not provide me the statement or any list of available locations. I called them several times to provide me the list of locations and I was told that they were working on it and did not have any locations available.
After 15 weeks I was told to choose Petrocanada locations otherwise I would have to wait for an indefinite period. I talked to Sales Manager Marcel and he said not to worry, even if the machines had been installed in the basement car parking and that Alpha multimedia had advertisement contracts that would generate enough income. I was not satisfied but had no choice so I agreed. My machines should be installed within 8 -10 weeks but took 17 weeks and only become operational in Jan 2007.
On June 19th I paid a visit to the Petrocanada Location and was shocked to see that the Kiosk Machines had been removed without informing me.
I contacted their office and was told that they were out of office until the 25th of June. I contacted the IT department and was informed that all machines had been removed from the Petrocanada locations and will be installed on new sites.
I also called customer service and reminded them about my email on May 3rd, I mentioned that these locations were not creating any revenue and that I want to get out of this business, unfortunately I did not receive any positive answer.
On 25 June 2007 I got a reply from Brian D Eall to fix the revenue problem quoted, The best way to start making revenue was to remove the terminals from the Petrocanada locations and reinstall them in money making sites. The cost to do this is approximately $1, 000, so we went ahead and removed them at no charge to you. We will reinstall them into more profitable locations and we should have some new ones for you shortly.
My machines have not been operational since April 2007 as they were uninstalled by Alpha multimedia to be reinstalled in new profitable locations. I am still waiting for some action till date and have no information as to what is going on. I have tried to contact Alpha multimedia several times, emailed and also left several voice messages but I have not gotten any positive reply.
Over a period of 15 months my machines were only operational for 3 months i.e. from Jan 2007-March 2007. Moreover I did not get any money which was supposed to be $500 per month per machine from Alpha multimedia which is a clear breach of contract. I borrowed the money from my line of credit and am continuously paying interest for the last 15 months without any return on my investment. I made several calls, left voice messages, emails and had a few meeting with Brian D Eall in the service department to resolve my issues but got no satisfactory reply and the matter has not been resolved. I also requested for him to sell my machines on a reasonable reduced price as I am not in a position to wait any longer and bear more losses.
On 30 Oct 2007 I wrote a letter to the Marketing Director Mark Singh explain the situation and request for meeting but received no response.
On 19 Nov 2007 my Solicitor sent a final notice to refund my investment and in turn got no reply.
I have filed a report with the BBB and will be taking this matter further.
Khan
Brampton, Ontario
Canada
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