Another Hit to the Financial Security of Second Life

MetaNetwork Media Company Logo

MetaNetwork Media has been under tight scrutiny in past months and shareholders are now calling for investigation of wire fraud, if not more. The website www.metanetworkmedia.com is no longer active; sources reveal that server costs were not paid. The executives that remained have resigned and the CEO is nowhere to be found. Stockholders once again are left holding the bag.

From Bogart Beck, “MNM - MetaNetwork Media HALTED for Investigation of FRAUD - 08/07/2008 11PM SLT

Please be advised that SL Capital Exchange has received a FORMAL REQUEST this evening by Investors and former employees of MetaNetwork Media to HALT Trading in MNM immediately pending an investigation and claim of Interstate Wire Fraud by the principals of MNM.”

In November, 2007, Cadence Juran of Crescendo-Catalyst Corp released a private stock offering for MetaNetwork Media. Investors could buy shares at 1L a share, with a minimum purchase of 25,000 shares. The letter describes MetaNetwork as:

“MetaNetwork Media, Inc.'s purpose is to provide quality news and entertainment to the residents of Second Life and the global Metaverse community. MetaNetwork Media, Inc. will be one of Second Life’s leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to the Second Life audience. MetaNetwork Media, Inc. will seek to establish a valuable portfolio of news and entertainment networks, and a significant Second Life inworld filming production operation.”

MNM opened with 15,000,000 shares and from the prospectus 1,500,000 of those shares went out in the private offering and 4,500,000 of them to MetaNetwork Media officers. IPO price on SLCapex opened at 5L a share. Juran was active on the SLCapex forums offering exciting news and developments. On Dec.22, she reported, “Our sales figure for commercial revenue for Dec. 16 was $300,000L (Month to date ACTUAL sales) that’s 10 commercials. Based on demand as of 12/16/07, in my forecast I made a conservative assumption that we would sell 20 commercials ($600,000L) for Jan. 2008, hence the double in projected sales revenue.”

Trading of MNM began on Jan. 28, 2008. Initially investors remained excited about the developments and changes in store for MetaNetwork Media. By February, investors were becoming discouraged by drops in share value and debates began about the strength of MNM. In February, the company announced the acquisition of SL Tronics TV. Some investors began to question the developments and progress of MetaNetwork Media and in March, heavy debates began.

On March 1, Investor Nitely posted, “In the announcement it states 'MetaNetwork Media now has an established viewership of close to 200,000 inworld viewers and growing on an hourly basis.' Now clearly this is not remotely accurate. With 910,803 total people logging into SL in past 30 days, that means 21.9% are watching what little content is currently available on a very limited number of premium inworld sets. It also would mean that MetaNetwork has 50% more viewers than SLCN and Metaverse TV combined. Both of which are already long established stations with established content, and both openly give out their content for free to anyone. How is it possible a start up with little to no content is pulling this off?”

Between Dec.16 and Jan. 26 MNM sold 1,002,000 IPO shares at 5L per share, this equates to a little over $5,000,000L,  which is approximately $20,000 USD. In April, investors were keen to seen the financials and it was then that discussions began about where the cash from investors went and how it was being used.

On April 10, Ivan Halfpint sent a letter to the CEO of MNM, Jaison Spad,

“As a concerned shareholder in MetaNetwork Media and on behalf of other concerned shareholders I am submitting the following information requests.

1) The real life names and cities of all directors involved with the real life aspect of the business.

2) The state, registration number, Tax ID and name the company is registered under.

3) Current PHYSICAL address (not PO Box) and contact phone number for MNM operations.

4) Proof of receipt for major shareholder money that has been spent including but not limited to legal fees regarding the patent and the business plan.”

MetaNetwork Media has offered information on exclusive deals which fell through from poor planning or that were not truly exclusive, such as a contract with DIVAS. Investors clamored for information regularly on the SLCapex forums and most threads were not responded to by MNM staff. One of the frequent speculations discussed by investors was the relationship between Cadence Juran and Jamar Freeze (Jaison Spad).

For months, MetaNetwork Media has strung shareholders along. A recent offer of a buyback was insulting to many investors. Posted by Jaison Spad, "According to our plan, MNM RL will buy back approximately 200,000 shares each month 'in the market' until all virtual public MNM shares are repurchased." Yesterday the unethical practices of MetaNetwork Media came to a final halt. Trading has closed. Wickster Corp has been a partner with MetaNetwork Media, as stated by Ashleigh Wade, CEO, "Wickster.WorldWide provided office solution services to MetaNetwork Media in multiple capacities. First, W.W built a custom skyscraper, the home of SL Tronics Media." Following yesterday's announcement, Wade reports, “It is WicksterCorp’s intention to cooperate fully with any parties investigating MNM’s alleged fraud. Until such time that either fraud is proven or MNM is cleared, WicksterCorp is fully discontinuing any association with MetaNetwork Media.”

Employees have resigned. From Arianna Barbarossa, former Chief Operations Officer for Second Life activities, “Within the last 24 hours, it was disclosed and confirmed that the CEO of MNM in both RL and SL was not honest in his dealings with the stockholders and the employees of MNM. It came to my attention that Mr. Jamar Freeze was both Cadence Juran and Jaison Spad in SL. This information has been given to management at Capex. This is disheartens me, as I built trust and what I believed to be an honest business relationship with Ms. Juran. I, as many of the staff, put our hearts and much of our time and energies into trying to make MNM work. We believed and worked hard with Ms. Juran. We were never made to be under the impression that Mr. Freeze was anyone else in SL, and that Jaison Spad, was Cadence's RL brother.”

 The statement from MNM’s general counsel, Fawkes Deerhunter (Fred Rosengarten), comes in the form of his resignation letter, “Given all that has happened regarding MNM in the past week, I imagine many of you have been asking "Where is the company's lawyer? Shouldn't he be speaking out?" I am here to tell you that on Aug. 4 I formally submitted my resignation as RL COO and General Counsel to Mr. Freeze.” Many wonder what the implications are for MNM’s general counsel should these allegations of fraud prove true.

The activities of MetaNetwork Media have shaken the already sensitive financial market within Second Life. Many parties want to see this organization investigated by the full extent of U.S. law.