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Investors Recovery Specialist Inc. Complaint - Failure to fullfill terms of contract

Review by Consumer on 2007-02-01
VERO BEACH, FLORIDA -- Problem:
Recovery Specialist (IRS) is in business to assist in recovering losses suffered in the stock market. In late 2004 I contacted IRS to employ them. After receiving my paper work, IRS said they felt the loss Investors was recoverable, and I signed a contract in early 2005, for a gross loss of $$342,640. All of 2005 and until October of 2006 was spent preparing the claim and exchanging numerous amount of paper work. A hearing was held in early October in Clearwater Fl. Approximately the middle of November I was notified that the arbitrators had found in my favor, but only awarded $29,000. The problem comes from how the distribution was made. Paragraph (f) of my Arbitration Management Agreement No Advance Cost Required contract reads;" IRS will pay to claimant 50% of the net proceeds of the recovery by award or the settlement amount. Claimant agrees that IRS will first deduct direct expenses and any pre-paid filing fees and hearing deposits, from the gross settlement or award before distribution of any recovery." Another sheet provided by IRS says "A No Advance Fee manageable agreement is available, providing a 50% payout after deduction of all direct expenses, from the gross recovery, before the distribution." Based on these documents ,I expected the settlement would look like 29,000 -$9216 cost supplied by IRS=$19784 divided %50/%50, or each party receive $9892. Sadly this wasn't the case. IRS arbitrairly took the gross $29000, divided it 50/50 and then took the direct cost from my half. So my share was $5284 or %18. I immediately faxed and called, all to no avail. I have sent numerous emails, 3 faxes, and two phone messages unanswered. They will not give me a direct answer to why the above documents were ignored.

Thanks for any assistance you can provide.

Michael
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