More Darana/IHRA news (8 Viewers)

No one is walking away from this. It may very well get bloody. Here is another twist. Should this go in favor of Musk and they prove the money was billed and spent fraudulently, that money was not Darana's to spend and people that received certain funds may be forced to repay it. It sounds crazy but it has happened. I know of a sub-contractor that was forced to pay back $150K because the money he was paid on a job (rightfully so) was from funds that were not supposed to be allocated to that. If this goes the direction I believe it will go (only speculation) this can be a big black eye for all of drag racing - not just IHRA. Already, I see local news reports about "drag racing" on the streets. Seems we are going backwards. At one point it settled into "street racing". This whole thing is way worse than anyone imagined and many very competent people - Alan, track owners, Frank Hawley, Larry Morgan and scores more- got sucked into it all like a lot of us on the sidelines did.
 
Bruno said:
No one is walking away from this. It may very well get bloody. Here is another twist. Should this go in favor of Musk and they prove the money was billed and spent fraudulently, that money was not Darana's to spend and people that received certain funds may be forced to repay it. It sounds crazy but it has happened. I know of a sub-contractor that was forced to pay back $150K because the money he was paid on a job (rightfully so) was from funds that were not supposed to be allocated to that. If this goes the direction I believe it will go (only speculation) this can be a big black eye for all of drag racing - not just IHRA. Already, I see local news reports about "drag racing" on the streets. Seems we are going backwards. At one point it settled into "street racing". This whole thing is way worse than anyone imagined and many very competent people - Alan, track owners, Frank Hawley, Larry Morgan and scores more- got sucked into it all like a lot of us on the sidelines did.
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If I recall correctly, some of the racers and tracks that received money from Torco had to pay it back when Evan Knoll was caught. I remember talking with at least one racer who had ordered a new chassis with money he had to give back.
 
Joe, cant speak for Alan or Larry but I didnt feel sucked into anything. DC made me a offer that I accepted and get paid for every race that announced. Disappointed, very much because I really thought it was going to work but sadly the train wreck hit.
 
How can you miss getting overcharged by that much (allegedly) for that long? Did someone at Elon's place gets fired for that lack of oversight.

I wonder if it's just a countersuit scare tactic or if there's legitimacy to it. Of course that's what the trial will tell us. It's not like all of DC's spending was done in secret. Not to say he wasn't using wrong money but pretty ballsy to rip off the world's wealthiest guy then flaunt big spending so publicly and assume you won't get caught. Hope it's not true, I would fear Elon's group gaining access to all these tracks in a settlement and we know they will not stay tracks then.

Something doesn't add up. A bunch of lawyers are going to make bank of this though.
 
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PJ said:
How can you miss getting overcharged by that much (allegedly) for that long? Did someone at Elon's place gets fired for that lack of oversight.
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I said earlier that I thought the SpaceX IPO brought additional scrutiny to the company's books.
 
PJ said:
How can you miss getting overcharged by that much (allegedly) for that long? Did someone at Elon's place gets fired for that lack of oversight.

I wonder if it's just a countersuit scare tactic or if there's legitimacy to it. Of course that's what the trail will tell us. It's not like all of DC's spending was done in secret. Not to say he wasn't using wrong money but pretty ballsy to rip off the world's wealthiest guy then flaunt big spending so publicly and assume you won't get caught. Hope it's not true, I would fear Elon's group gaining access to all these tracks in a settlement and we know they will not stay tracks then.

Something doesn't add up. A bunch of lawyers are going to make bank of this though.
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I believe it is a scare tactic and they will both wind up walking away.
 
PJ said:
How can you miss getting overcharged by that much (allegedly) for that long? Did someone at Elon's place gets fired for that lack of oversight.

I wonder if it's just a countersuit scare tactic or if there's legitimacy to it. Of course that's what the trial will tell us. It's not like all of DC's spending was done in secret. Not to say he wasn't using wrong money but pretty ballsy to rip off the world's wealthiest guy then flaunt big spending so publicly and assume you won't get caught. Hope it's not true, I would fear Elon's group gaining access to all these tracks in a settlement and we know they will not stay tracks then.

Something doesn't add up. A bunch of lawyers are going to make bank of this though.
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How can you miss getting overcharged by that much (allegedly) for that long?

Shoot, that's been standard operating procedure with Uncle Sam for decades, sadly. With our money too, not a private (up til now) company. Wish I could say otherwise.


However, if some of those tracks were sold via land contract, I don't think Musk's company can claim (gain access to) them unless he makes the sales contract whole. If Darana defaulted on those land contract, the seller gets them back and keeps whatever had been paid. At least that's how every land contract I've seen was written (a fairly common clause in them).
 
Jim said:
Will shareholders let XAI walk away? Or would they sue the board and management for violating their fiduciary responsibilities?

I can see this forcing XAI to go back and take a closer look at prior billing from Darana and from other contractors.
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XAI was billed but did not pay so what are they out ?? if everything said is true ?? lots of IF's. Can they go back to before they went public ??
Darryl said he wasn't paid XAI says they were over billed and are not paying ??
 
GumbyWVU said:
How can you miss getting overcharged by that much (allegedly) for that long?

Shoot, that's been standard operating procedure with Uncle Sam for decades, sadly. With our money too, not a private (up til now) company. Wish I could say otherwise.


However, if some of those tracks were sold via land contract, I don't think Musk's company can claim (gain access to) them unless he makes the sales contract whole. If Darana defaulted on those land contract, the seller gets them back and keeps whatever had been paid. At least that's how every land contract I've seen was written (a fairly common clause in them).
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According to Josh on here IIRC he stated all the transactions were cash EXCEPT Maple Grove and Memphis, then someone added Atlanta to that list so who really knows ??
 
ironpony said:
According to Josh on here IIRC he stated all the transactions were cash EXCEPT Maple Grove and Memphis, then someone added Atlanta to that list so who really knows ??
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I certainly could be mistaken but I thought he, or someone else said in one of these threas, VMP was the other and not Memphis. I don't know fir sure one way or the other.
 
ironpony said:
XAI was billed but did not pay so what are they out ?? if everything said is true ?? lots of IF's. Can they go back to before they went public ??
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Yes, they can go back to before XAI went public if shareholders, investors, and the SEO think that such overbilling should have been disclosed as part of the IPO filing.

I can see them also wanting to be sure that overbilling by contractors was not an ongoing practice and that no one was ever paid more than they should have been paid.
 
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