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Most Frequently Asked Questions

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Q & A?

 

Below are the most frequently asked questions about John Calicchio & EuroMasters Classic Cars

 

Q:    Why did Euromasters close its doors? It looked like a thriving business?

A:    EuroMasters was a thriving business doubling its sales every year since its inception in 2008. To sustain that rapid growth required

        a lot of working capital which wasn't readily available considering that current economic recession.

  Q:    The Newspapers said that John Pocketed Customer's Money from EuroMasters. Is this true?
 
A:    No. A forensic accounting effort was launched by the district attorney who concluded that the funds were never used personally by
          John, but instead were used along with John's funds to operate his businesses, i.e. payroll, rent, utilities, taxes, etc. As a matter of
          fact, John invested over $2m in cash and ultimately lost his life's savings of over $4m, all while never taking a paycheck or a draw.

  Q:    Why did John plead guilty to charges if he didn't commit them?
  A:    As the owner of EuroMasters, John took full responsibility for the businesses actions. He didn't have much choice but to plead guilty
          since if convicted, he was facing a possible 17-year prison term. He would have to either plead not-guilty and have to pay an
          attorney a minimum of $50,000 (which he did not have) to defend himself, or plead guilty (plea-bargain) with the promise of home
          confinement for 16-months and no jail time. With that said, through discovery, if the district attorney found that John had actually
          stolen that money personally as was reported, I'm sure John would have served that mandatory jail time.

  Q:    The District Attorney and the Newspapers reported that John declared bankruptcy in order to keep from paying restitution?
 
A:    The District Attorney was unaware that John was instructed by his bankruptcy attorney to list all creditors including those who
          temporarily lost their deposits and consignments. In actuality, John immediately sent heartfelt letters to those who lost their money
          along with promissory notes to many asking them to be patient until he got back on his feet so that he could repay them personally.

  Q:    What was John ultimately charged with and how much in terms of dollars?
  A:    John was charged with embezzlement by fiduciary responsibility (deposits/consignments owed to customers that were unable to be
          returned on time) and money laundering (money purposely moved between (4) of John's bank accounts as was needed to sustain
          his (3) businesses). The total amount due to customers was $142,543 which was to be immediately paid from the sale of the
          business. The final amount of $177,913 was charged by the district attorney who had added attorney's fees.

  Q:    Why was John charged with Embezzlement and Money Laundering?
  A:    Embezzlement, because EuroMasters was unable to return paid deposits and consignment sales proceeds; money laundering,
          because of the suspicion that monies were moved from one bank account to another in order to hide their existence; neither of
          which John was a party to. In order to prove these charges, the court would have had to show that John intended to defraud
          these people, when in fact, John had never even met most of them. While John was out trying to raise capital, the office manager
          and bookkeeper were handling the day-to-day business activities to the best of their ability. John was ultimately held responsible
          because he was the sole owner of EuroMasters.

  Q:    Did John go to trial?
  A:    No, John did not go to trial or even a pre-trial for that matter. This was because he could not afford the cost to do so. His lawyer
          subsequently advised him to enter into a plea-bargain agreement with the district attorney in lieu of a costly trial. John agreed to
          this in exchange for 16-months of home/work confinement (which began 11/1/13) and not serving a jail sentence.

  Q:    Has John ever been arrested before? And it also occurs to me that this should have been a civil matter.
  A:    No, John has never been arrested or even questioned; he's lived in Orange County for 51 years operating businesses since 1967.
          As for your second comment; Yes, this definitely should have been a civil matter where this probably could have all been resolved.
          The dollar amount involved was approximately $150 thousand, not $150 million. I've known John since the late 70's and have found
          him to be an innovator, deep thinker and wealthy wage-earner. He is the most honest, loyal, hard-working guy I've ever met.

  Q:    Why didn't John just pay back the customers?  See Letter to Customers...
  A:    The company was running on fumes by then and all the while John was working diligently on obtaining desperately needed working
          capital with banks and potential partners. John had 7 people/companies' interested in purchasing EuroMasters for between $2.5m
          and $3m dollars; several with signed agreements and many with letters of intent. All offers were rescinded after speculation of a
          possible bankruptcy, coupled with false rumors of going out of business, which started spreading rampantly.

  Q:    I heard the company had some problems regarding theft?
  A:    Yes. The biggest loss and probably why EuroMasters finally went out of business was because they lost their $200,000 flooring
          line for purchasing cars. This required John to immediately come up with that money, which depleted John's cash reserves. The
          general manager at the time had defrauded the flooring company by personally obtaining cash from titles. EuroMasters had to
          immediately deplete its remaining cash reserves in order to pay the balance demanded.

  Q:    Did John open an Electric Car Store?
  A:    Yes; South Coast Electric Cars www.scelectriccars.com. John was working on separating the Electric Cars from the Classic Cars when
          a collaborative effort with Winston Chung, the famous battery manufacturer, was in the works. Mr. Chung and John had an arrived
          at agreement which was subsequently cancelled when Mr. Chung could no longer obtain funds from China. This led to the immediate
          closing of the Electric Car company which was relying on that funding.

Revised 11/19/14