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HostRail / HostSnowy & The Proofs
Hello everyone,
My name is Constantinos Coudounaris, ex-owner of HostRail. I am here to uncover the full events that occured from the date i bought HostRail till the date i closed HostRail. I will explain about HostSnowy in a little while.
I founded C & C Advanced Online Services Ltd in April 2007, primarily focusing on web-design. In June 2011 i went to WHT as i was interested to BUY web-hosting companies. I bought HostRail from Dylan - i can't remember his surname nor can i find the thread at WHT right now but i am researching and will post this here as soon as i have it. I bought HostRail for $10,000 if i remember well, the agreement included all clients, servers, PayPal account, website etc etc. Everything was handed over to me as planned however after a few weeks Dylan disappeared, specifically he disappeared when i asked him how can i withdraw the money from the PayPal account. When i bought HostRail the PayPal account included around $6000, up to August 2010 the PayPal account had over $10,000. At some stage in August i decided to start using a new PayPal account as i was unable to use the funds in the HostRail PayPal account. By the end of August 2010 the HostRail PayPal account DISAPPEARED and with the $10,000 - after communication through my lawyers and PayPal we were informed that the money had been withdrawn from PayPal. At this stage we had two options (a) don't do anything OR (b) proceed with legal action. Due to the cost involved to take legal action we decided to not do anything and to continue researching until we detect, we assigned our research to private detectives based in UK who within weeks provided us with all the names and phone numbers/addresses of every single relative of Dylan - this information was used however phone calls were not being answered and letters were not being replied - at some stage since HostRail was getting bigger we decided to abort the mission at least temporarily.
THATS WHERE THE PROBLEMS STARTED, WE STARTED WITH A DEFICIT OF $10,000 WHICH WE HAD TO COVER WITHIN ONE YEAR.
As all of you know our packages were CHEAP ($1-2/month) and as you imagine we were NOT making ANY profits from the packages but we were making our costs. We were able to sustain the business. We had the deficit of $10,000 to recover from however and our debtors were loosing patience.
In January 2011 due to a corruption of our main server hard disks we lost the main HyperVM database. Note that the main server Dylan had built with NO RAID and the overall hardware quality was extremely bad and OpenVZ was configured badly also - this server was hipomenes.hostrail.com, that was the first large issue however we dealt with it at the end.
In April 2011 our main website received large scale DDOS Attacks that disrupted our service. Additionally after we applied an updated OpenVZ Kernel there was a major issue that was causing VPS's to have increased load averages which in turn caused our Servers to crash - this was explained at that time fully and credit was even provided to more than 80% of the customer base - basically to everyone that requested it.
In May 2011 HostRail went bankrupt, we were unable to keep ongoing with our expenses. We had over 60 Servers at LSN and PrivateLayer.
In June 2011 the plug was pulled and all servers went offline. Despite my attempts to secure loans from several banks we were unable to secure any loan to pay the increasing debt to LimeStoneNetworks, the debt to PrivateLayer was payed except from one Invoice but they TERMINATED all Servers even the ones that were payed.
From the day HostRail went offline until September 2011 people have BEEN GETTING REFUNDED and I've got the proof to include this here. So actually NO ONE has nothing to complain, everyone that requested a REFUND GOT a REFUND.
I am posting the proofs from PayPal in some seconds below.
In October 2011, Anthony Richa STOLE the domain hostrail.com by gaining access to my ResellerClub Account, i have a conversation from Facebook to PROVE this - i will post this if requested.
I would like to clear things up with this post and to say what happened and why it happened, i am also officially asking you give another chance to HostSnowy to PROVE to you that this time we are serious about everything and next year i will be here and so will Stan Catswon be here with HostSnowy still being alive.
HostSnowy was primarily purchased by Stan Catswon, he forgot to change some references to my name. Stan Catswon IS based in Finland and moderators can actually see this and can actually PROVE that he is not using a PROXY. I can provide Stan Catswon IP Address to anyone if this would help.
As of today, 6th of February 2012 i will get back involved in HostSnowy as i want to rebuild my name in full and show you WHO I REALLY AM. All people do mistakes, some people choose to correct their mistakes while other people abandon ship.
Expect my post with images showing from PayPal the refunds.
Comments
Proof from PayPal:
http://dl.dropbox.com/u/54725877/1.png
More is coming.
Give it a rest, we have seen nothing of you until this "Hostsnowy" came about, but whilst your here how about giving your ex-clients some refunds?
Thought not.
@VMPort The vast majority of my clients already got refunds and i am proving this with the screenshots from my PayPal account.
PayPal Screenshots - Proof that customers were refunded.
http://dl.dropbox.com/u/54725877/1.png
http://dl.dropbox.com/u/54725877/2.png
http://dl.dropbox.com/u/54725877/3.png
http://dl.dropbox.com/u/54725877/4.png
http://dl.dropbox.com/u/54725877/5.png
http://dl.dropbox.com/u/54725877/6.png
http://dl.dropbox.com/u/54725877/7.png
http://dl.dropbox.com/u/54725877/8.png
http://dl.dropbox.com/u/54725877/9.png
http://dl.dropbox.com/u/54725877/10.png
More screenshots coming.
I doubt those people like the fact that their names are being posted in full.
@ztec Well i am very sorry about that, people have asked for proofs and i am displaying the proofs. I refuse to modify the screenshots at all as then people will say i made them up.
Cool you're refunding though.
More PayPal Screenshots - Proof that customers were refunded.
http://dl.dropbox.com/u/54725877/11.png
http://dl.dropbox.com/u/54725877/12.png
http://dl.dropbox.com/u/54725877/13.png
http://dl.dropbox.com/u/54725877/14.png
http://dl.dropbox.com/u/54725877/15.png
http://dl.dropbox.com/u/54725877/16.png
http://dl.dropbox.com/u/54725877/17.png
http://dl.dropbox.com/u/54725877/18.png
http://dl.dropbox.com/u/54725877/19.png
http://dl.dropbox.com/u/54725877/20.png
More screenshots coming.
More PayPal Screenshots - Proof that customers were refunded.
http://dl.dropbox.com/u/54725877/21.png
http://dl.dropbox.com/u/54725877/22.png
http://dl.dropbox.com/u/54725877/23.png
http://dl.dropbox.com/u/54725877/24.png
http://dl.dropbox.com/u/54725877/25.png
http://dl.dropbox.com/u/54725877/26.png
http://dl.dropbox.com/u/54725877/27.png
http://dl.dropbox.com/u/54725877/28.png
http://dl.dropbox.com/u/54725877/29.png
http://dl.dropbox.com/u/54725877/30.png
More screenshots coming.
@ztec Yep exactly and that is what is important.
More PayPal Screenshots - Proof that customers were refunded.
http://dl.dropbox.com/u/54725877/31.png
http://dl.dropbox.com/u/54725877/32.png
http://dl.dropbox.com/u/54725877/33.png
http://dl.dropbox.com/u/54725877/34.png
http://dl.dropbox.com/u/54725877/35.png
http://dl.dropbox.com/u/54725877/36.png
http://dl.dropbox.com/u/54725877/37.png
http://dl.dropbox.com/u/54725877/38.png
http://dl.dropbox.com/u/54725877/39.png
http://dl.dropbox.com/u/54725877/40.png
More screenshots coming.
More PayPal Screenshots - Proof that customers were refunded.
http://dl.dropbox.com/u/54725877/41.png
http://dl.dropbox.com/u/54725877/42.png
I'm checking to see if there is anything else.
I've posted 42 screenshots currently, each screenshot contains 20 results - a quick calculation will mean that 840 people got a refund. 840 people is around as many services we had, i would say around 90% of the customers got a refund.
Hi Constantinos, i did NOT receive refund. You still owe me money.
So, or you're a fake or just a liar.
So I have a question, if you are willing to answer it You mention 830 as your services, then how did you have 60 servers? I figured at 60 servers and the overselling you had to do to float the business, you must have had something like 10,000 ip's in use no?
Francisco
@marrco Please provide me with your email address you used and i will check this one.
I wouldn't give any money to your new company, you might publish all my personal data.
@Francisco Yeah you're right actually, something isn't looking correct. I admit i was doing overselling supposedly - but what is overselling? thats the question. When you have 10 VPS's on one Server but these 10 are abusing the node and you put an 11th VPS's that isn't abusing the node this 11th customer thinks that i am overselling whereas actually i am not overselling there is just a lot of abuse.
For the IP Address i do remember we had somewhere around 1200 IP Addresses actually, so approx 840 does look correct actually since some VPS's had more than 1 IP Address.
@gsrdgrdghd I actually re-checked the PayPal screenshots i provided, it doesn't actually disclose any details. Its not as if its a list that some other provider can "buy" - i didn't include contact info.
840 / 60 = 14
YOU WERE DOING ONLY 14 VPS PER NODE??? STOP KIDDING US.
@consc198 - I just find the numbers odd because you had emails where you claimed you released 1000 pieces of stock at once. I know a few people from my IRC had gobs of your VM's so I can't see 800 being all you had.
Like I said, I figured you literally had 10,000
Francisco
I haven't got any refund.
@apollo15 You can confirm the amount of IP's that i had with LimeStoneNetworks. I am not here to lie to anyone.
However something is not looking right - actually 60 servers must be including privatelayer - if anyone has any info how many servers i had it would help.
All together i had around 1200 IP's. At LSN i was a Tier 3 Reseller so i had up to 39 Servers - i remember i was very close to the 39 Servers.
With PrivateLayer i had 8 Servers.
So total actually comes out to around 45 Servers.
@Francisco I highly doubt LSN would even give us 10,000 IPv4 Addresses
@tux Please inform me of your email address that you used to pay with so i can check.
what the fuck??
@consc198 you have a PM with my email address, this is the data:
invoice was paid to: C & C Advanced Online Services : [email protected]
amount -$17,46 USD
HostRail - Invoice #131148
as you can guess from the amount this was an upgrade of my 2 small VPS to a single annual package.
In the PM you have my email, will you please show proof of refund?
~840 VPS's?
Since I am assuming that here by "subnet" you are referring to a /24 (Class C), since you mention 256 addresses. So that would be 2048 IP's, for just your offshore location, and there was an email at a later point in time stating that order setups were delayed due to running out of IP's.
Due to the popularity of the $1.05 offer, I would guess that a large portion of your clients were in the US. Going by the 60 servers mentioned above, at 840 clients that would only be 14 clients per box. Just for an example, assuming all the $1.05 256MB offer, that would be $14.70 per month per server. I doubt limestone networks gave you servers that cheap :P
On a side note, should you start up a new company selling VPSs, I would probably buy one. You and Rob were very knowledgeable and helpful in support tickets, especially when compared to ~80-90% of LEB provider's support staff.
@marrco I'm trying to investigate this within PayPal - it may take a while however due to the hundreds of transactions. It would help if you by any chance also have the date you paid and/or the transaction number. I will appreciate your patience.
@Kuro LSN charged quite a lot actually, you can find their prices at their website - however have in mind that the majority of the servers we got with a 50% discount as they had a promo when we ordered them.
@constantinos here the data you requested: Date: 5 mar 2011 Time: 14:51:12 CET - Transaction id: 7M222672364626912 paid to: C & C Advanced Online Services : [email protected] - amount -$17,46 USD - HostRail - Invoice #131148
Do you still insist you really issued refunds to your customers?