Repspace
The Business Network for Work From Home Professionals






Joystar Files Restraining Order and Suit Over Commissions

rated by 0 users
This post has 0 Replies | 1 Follower

Top 10 Contributor
Posts 111
Jim Heron Posted: 03-19-2009 9:17 AM

From Travel Pulse:

Host agency Joystar has filed a lawsuit against Drew Axelrod, the agent spearheading efforts of Joystar agents seeking to collect what they say are unpaid commissions that in some cases amount to tens of thousands of dollars. Joystar, led by William Alverson, has been merged into Travelstar and Travelstar has filed for a restraining order against Axelrod, whom it says has conducted a smear campaign against Travelstar in the trade press and with a potential buyer, effectively killing a possible sale of Travelstar’s assets. The company also is suing Axelrod for commissions it says he improperly withheld from Travelstar.

Travelstar claims Axelrod improperly withheld commissions due to Travelstar for a dance cruise it booked for him by collecting payments from passengers in cash and using a credit card to pay the net amount (the cost of the cruise minus the commissions) to the cruise line, Costa Cruise Lines. In its complaint, Travelstar claims Axelrod collected approximately $300,000 in cash and diverted $86,000 in commissions due Travelstar to himself. Travelstar said that the total commission was $121,000.

Travelstar filed the suit last week in U.S. Bankruptcy Court in the Southern District of Florida in Fort Lauderdale. In its court filing, the company said that the dispute over commissions from the dance cruise began in March 2008 and that, in response to those efforts, Axelrod began what Travelstar calls a “smear” campaign. Travelstar claims that Axelrod sent daily threatening and disparaging emails to its employees as well as called them, using profane language, telling them that they were or were about to be investigated by the FBI and that Axelrod would sue them for fraud and embezzlement. It said that in one week in January 2009 Axelrod sent 250 such emails.

Travelstar, which is now in Chapter 11 bankruptcy proceedings, said that it had an offer to purchase its assets from a “significant and qualified buyer.” It said that Axelrod emailed the potential buyer’s representative, saying that Travelstar’s management was unethical, had defaulted on debts and mistreated and misled its agents, causing the buyer to withdraw. Travelstar also said that Axelrod sent letters to its employees offering them $2,500 for its customer list.

Travelstar is asking for a temporary restraining order and permanent injunction against Axelrod from threatening Travelstar’s principals or owners. It’s also suing Axelrod, who led other Joystar agents in an involuntary bankruptcy filing against Joystar, for monetary damages as well as for the commissions it said are due to Travelstar. A pre-trial conference has been scheduled for May 12. Axelrod did not respond to email and telephone requests for comment on the filing. A voicemail message said that Axelrod is on a cruise and directed callers to contact him by email.

Page 1 of 1 (1 items) | RSS
Copyright Repspace and Npros 2008
Powered by Community Server (Commercial Edition), by Telligent Systems