-The initial plan in the first quarter was to buy some time, push out with drawls for a time, expand into new markets, and eventually become profitable.
-Declining margins, increasing operating expenses, under estimated with drawls, declining traffic, and the rapid decline of new deposits has made this impossible. The company will fail and certain insiders know it.
-Lock is generating cash flow, but it is not profitable. There is money coming in, but expenses are higher. So, they are only paying essential expenses that keep the company operating. Wherever possible creditors and bills are not being paid and are being strung out as long as possible.
-One faction at Lock is operating under the theory that when they expand into new markets, they will generate new revenue and be able to turn things around. Another faction is operating under the theory that the company will fail and are designing a stalling strategy until the company collapses.
-Lock is comprised of many shell corporations and individuals who function as fronts to disguise ownership and to provide vehicles to inhibit creditors. Cipaco, Revolution, Cake, Lock, SDB Services. Lock may not own Cake, but that is a distraction. What matters is who controls the cash. That is a small group of insiders in Canada. The idea that JL is sole owner and CEO not entirely accurate. Just as M.J. Hugenholtzweg is not. JL gets a cut, but is not taking the largest slice of the pie and is a semi front person.
- Lock is not reconciling with the network. The way the companies are structured, Lock can point the finger at the network and the network can point the figure at Lock. But it’s the same people. A better way to look at it is that the skins are owed money. Around $4 million from last count.
- Lock will not be paying employees in an upcoming pay period. Excuses will be used, but the money is running out.
-2+2 was a huge problem for Lock. If you Google Lock and with drawls, cash outs, or scam you will get hits to the 2+2 forums. This is a big problem to acquire new customers and has crushed new deposits. Initially, they wanted to pull out after the ad flap, but certain factions felt that they could manage the issue.
-Shane’s performance was so poor and raised more problems that they pulled the plug and decided that a hide and seek approach was better. The plan is to run disinformation from their own site touting improved cash outs. Costigan will be a point man for this effort. The hope is to marginalize 2+2 and paint a more positive picture in the poker community.
-Lock had fund in Cyprus where they conducted banking transactions and they lost a significant sum.
-Funds are not segregated and never have been. All money went into one bucket and was then spent on operating expenses, player acquisition costs, and payments to ownership.
-Without an influx of capital from player deposits, Lock will collapse by year end.
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