OneSource Financial - An Analysis of their Biz Op Disclosure
OneSource Financial presents in a interesting picture as we can compare their FTC Disclosure document to what various state corporate documents show about the company. Remember that the FTC or State Disclosure document is not checked for its accuracy by any government official. It is up to you to conduct the background check using the document and other sources of information.
What are the warning signs with this document?
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Item 16 is supposed to tell you the number of biz ops sold, repurchased, and/or cancelled. This is to give you an idea about the chances of success of the biz op. This Item 16, while technically correct as of January 2005, says nothing about how many biz ops have been sold. The disclosure is completely deficient.
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Item 2 is supposed to provide details on the owners of the biz op seller. None of the details about corporate management match up with corporate filings from the California and Nevada.
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Item 14 is completely contrary to the representations made to the investors in Colorado.
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Finally, the financial documents are deficient because there is no income statement, which you tell you if the seller was making more money from selling biz ops than from selling ATMs.
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