Topic: Nanaimo Gold - Shady Business Practices??? - page 3. (Read 18520 times)

Hello all.

I sent money via post to fund a Pecunix account on the 10th, and like Zallion my letter has yet to arrive. I trust Nanaimo fully and I do not believe he is trying to rip anyone off. It may be that customs is experiencing delays.

I registered however to reply to what eRage said about his experience. I'm not sure I understand the bit about the goths exactly, but his reply seemed pretty clear about him not wanting the banks to get any ideas about trading currencies. I also tried to go the bank route my first time around but the bank details were never sent.. now I understand why. It makes sense, and so far Shane has proven reliable, so I'm withholding judgment for now.

I weighed the benefit of relative anonymity vs. risk of being ripped off and mailed cash.

Did you mail him actual cash or a money order or something similar?  With an M/O you'd be able to check to see if it was cashed or not, and if not cashed, you could set out to cancel it and get your money back.

Seconding what zallon41 said.  It's a pity that my first post must be like this.

Backstory:  Last night, I used to website to send him an email saying I wanted to send him $500 USD for bitcoins and got the confirmation email stating my account is awaiting approval before he gave me bank deposit information.  So this morning I got this email:


The carroted part is where he forwarded me the confirmation email I already received.  I left off the last half because it just has my personal information.  However, see the part that I bolded?  WTF?  On top of that, his message "Hahaha. Goth." is also really weird.  I assumed he'd been hacked or on drugs or something.  I decided at this point to never give this guy any money.  However, I wanted to see how weird the rabbit hole goes, so to speak.

My reply:

And then his reply(edited out my real name):

I don't what criticism he means, why he'd need my picture, or who the 'goths' are (Germans?/Visigoths?), but I'm touching this place with a 1000 mile pole, or a WU transfer, or a bank deposit, or anything at all. 

I assume by the poor command of English that he got hacked and people are redirecting the funds until he gets control again, but who knows.

It's unfortunate that this is going to be my first post in this great forum. I'll reserve judgement about what really happened in my case with nanaimo gold, but I bought 21.21 BTC for $15 CAD ($0.7073 CAD/BTC) on April 10th and mailed the cash. The exchange rate skyrocketed in my favour two days later. Here's the curt end of it all:

From:  shanesmith
To:  me   
Date:  Thu, 28 Apr 2011 04:19:38 -0300   
This message is not encrypted, and is not digitally signed.

Your letter has not arrived.

>
> From: me
> Message: Dear Mr. Smith,
>
> It has been over two weeks since my $15 CAD BTC order on April 10th. My
> letter to you was sent April 12th. When will I be receiving my 21.21 BTC
> as agreed upon?
>
> Sincerely,
>
> (me)

From the order form, in Shane's words: "Order with confidence. The mail is reliable."

It's been 42 days.

I'd like to make a clarification to my last price.  Nanaimo Gold's price for buying bitcoins is not manually set and neglected.  It is infact capped at $5 USD.  It adjusts just like his price for selling bitcoins, in a value related to the MtGox rates, but for buying bitcoins from people, it stops adjusting at $5 USD.  So even if the Bitcoin was selling for $50 a piece, he'd only offer you $5 for them as his site currently operates.  I realized this yesterday as the price of the bitcoin fell enough for his site to set a price below $5 and then return to $5 as the value went up agian but no higher.

What I find strange is, when I emailed him about his price for buying bitcoins and pointed out that the price wasn't rising with the current value of the bitcoin, he responded only with 'duly noted'.  He seemed to have no interest in communicating to me that he his set was set to not offer a value higher than $5 USD.  This isn't so much dishonest but poor communication and a desire to leave potential customers in the dark.  However, when the bitcoin is selling for far mor than $5 USD one would hope that potential customers would compare prices and simply go to somewhere else for that kind of service.  Competition benifits the consumer and all that.

This part his mearly conjecture, but I think it's possible that Nanaimo Gold doesn't have enough operating funds to make large purchases of bitcoins at high value.  That, when the bitcoin was selling at $8.999, he flat out couldn't afford to buy them at anything even close to that rate.

In the end he sent me my MO back to me. I went to the PO where I bought it. They issued a refund in the form of a new MO in my name. I crossed the street and Royal Bank honoured the MO instantly without problems.  A terribly irritating experience.

I was really thinking of doing buisness with Nanaimo Gold but now I'm very weary and I'm pretty certian I'll cash out my bitcoins through someone else.  I'm not accusing him of any dishonesty, as I havn't done any buisness with him, but I have my concerns that keep me from doing so.

Firstly, his site and FAQ listed Paypal as a payment option but it's actually locked out.  I contacted him about this, he explained that he no longer had a paypal and I suggested he updated his FAQ then.  ...That was 10 days ago and he hasn't done so.

His price for selling bitcoins seems to be set automatically by some system that checks with the current market places but his price for buying bitcoins seems to be manual.  More importantly, his price seems to have been locked at $5 USD for selling BTC for the last six days and counting.  I contacted him about this and got no response.  I contacted him agian, he said he never got my first attempt, and then asked me what I was asking about.  I had been clear that I was asking about his failure to update prices in my message but I reitterated.  His response on me pointing out that his buying price hasn't changed was a two word email that simply said 'Duly noted!'.  ...He hasn't updated his price since then either.

My concern here is that he is unwilling to invest any effort into keeping his website up to date and this leaves me concerned about how much effort he would place into executing transsactions.  In addition, his prices for buying bitcoins are simply uncompetative, even if this is just a result of his poor upkeep on his website, $5 USD for a bitcoin (At this time of posting) is flat out not worth it.

Do you not notice how it is I that initiates every conversation? After 5 days I ask what the hell is going on and only then he replies with his story. If he had problems he would contact me no? One would think.

Too many repeated coincidences, both cases are very clear.
As market moves against, exchanger is not honouring the trades.
Shame on that. I never did a trade with Nanaimo, and I never will.
-10 

Here's the original email. The address the btc should be sent to is still empty.

http://blockexplorer.com/address/1GrYfw3WbYXgtehhfsUp73vkKYNUYELiGF



[email protected] <[email protected]>    Wed, May 4, 2011 at 10:06 PM
To: [email protected]
Byron,

 Your letter arrived today. I don't have the bitcoin on hand. Often
people make orders and don't pay for them so it is difficult to know
what to put aside for mail in orders.

 With the other digital currencies this is seldom a problem, but the
bitcoin price is not stable and there is no reliable well to go draw
more from whenever we like.

 I am endeavoring to get your coins to you, please be patient.
Optionally, you might take Liberty Reserve, which is more price stable,
to the public auctions and negotiate a trade there.

 Your money order is safe in my hands now.

Shane


>
>
> Date ordered:          Sat, April 30, 2011 08:34 am
>
> ORDER INSTRUCTIONS TO BUY $999 CAD WORTH OF Bitcoin PAYING BY CANADA POST
> MONEY ORDER
>
>
> Print this email to enclose with your payment
> or print clearly on a sheet of paper;
> 1) Your email address
> 2) Your account number if applicable
> 3) The name displayed by that account.
> 4) Optionally, your name and telephone number.
>
> Visit any Canada Post location and buy a money order
> in the amount of $ 999 CAD
>
> Make the money order payable to Dimitar Sapountziev.
>
> Be sure to mark the MO with the words; "Re: Phone credits".
> Failure to do so may result in delay.
>
> Affix 59 cents postage for regular first class lettermail.
>
> Optionally you can send it by Xpresspost.
> DO NOT ORDER "SIGNATURE REQUIRED". Doing so may delay your order.
>
> Address your letter to:
>
> SHANE SMITH
> 499 WALLACE ST
> NANAIMO BC  V9R 5B7
> CANADA
>
> Be sure to use a real return address on your letter.
> Your return address is not recorded by Nanaimo Gold and
> your envelope will be promptly destroyed.
>
> Order with confidence. The mail is reliable.
>
> Your Bitcoin account will be funded with $ 999 CAD
> as soon as your letter arrives.
>
> Link to payment type notes;
> http://www.nanaimogold.com/payment_options.php#canada_post_mo
>
> 336.14 BTC @ 2.972
>
> Additional information about this order
> Bitcoin Address:             1GrYfw3WbYXgtehhfsUp73vkKYNUYELiGF
>
> Alternate email:
> Telephone:
>
> If you have made an error, simply make another order.
>
> Use this link if you want to contact me:
> http://www.nanaimogold.com/contact.php
>
> DO NOT REPLY to this email
> Array
> (
>     [currency_type] => CAD
>     [minimum_commission] => 0
>     [same_day_fee] => 8
>     [commission_rate] => 0
>     [money_sign] => $
>     [DGC_type] => Bitcoin
>     [payment_method] => Canada Post money order
>     [btc_sell_rate] => 2.972
>     [your_gold_wanted] => 999
>     [bitcoin_amount] => 336.14
>     [my_commission] => 0
>     [fiat_exchange_fee] => 0
>     [fiat_total] => 999
>     [your_name] =>
>     [your_location] =>
>     [your_telephone_number] =>
>     [your_email_address] => [email protected]
>     [alternate_email_address] =>
>     [your_account_number] => 1GrYfw3WbYXgtehhfsUp73vkKYNUYELiGF
>     [your_account_name] =>
>     [subButton] => Submit
> )
>
> Ordered from IP:       24.84.14.59      Vancouver Canada
>

Byron Bussey <[email protected]>    Mon, May 9, 2011 at 11:31 PM
To: [email protected]
Well any idea?  5 days and not a single bitcoin.



Byron
[Quoted text hidden]
[email protected] <[email protected]>    Tue, May 10, 2011 at 2:11 PM
To: Byron Bussey <[email protected]>
Byron,

 I can't cash this. the GD post office won't keep that much cash on hand.
I have been refused several times.

 You should take this thing back to where you bought it and complain.
They should not be writing cheques if they can't back them up.

I am so angry at all the time wasted.

Shane
[Quoted text hidden]
Byron Bussey <[email protected]>    Tue, May 10, 2011 at 5:03 PM
To: [email protected]
I don't believe you.


BB
[Quoted text hidden]
Byron Bussey <[email protected]>    Tue, May 10, 2011 at 7:08 PM
To: [email protected]
Anyways now I have to worry about getting robbed let alone being less 330 bitcoins which are now worth 2000 dollars and perhaps vastly more. The 1st story you told me (the true one) is you took my order without actually being able to match it. I suggest you change this policy. Then the lie is a) the PO office wont cash it because they don't have $999, which is ridiculous, (why do you accept MO then) AND b) that is somehow the fault of the issuing Post office. I am pretty sure the issuing post office has nothing do to with how much the local PO has in their till.


BB
[Quoted text hidden]
[email protected] <[email protected]>    Tue, May 10, 2011 at 9:02 PM
To: Byron Bussey <[email protected]>
I have your bitcoins and I paid less for them than I asked you for. In
fact, I bought enough to cover your deal within hours of your letter
arriving.

Your MO is to be deposited to Demi's personal bank account tomorrow. I
just talked him into it. (He's worried about his income tax.) I handed it
back to him while we were at supper. I intended to just trust you to not
stop payment before the paper clears.

Judging from your tone and the ease in which you accuse me, I suppose you
have already stopped payment. Now, I am uncertain what I should do.

Nobody has a magic well to draw more bitcoin from. My available balances
are published right on the buy order form. If you choose to buy something
I don't own - well that's your choice isn't it?

And you can ask the PO about their new policy of keeping no more than $200
in the til. I have been doing this job for years. Until recently they have
usually been able to accommodate me up to about $2000. There is no way I'm
going to accept these things or the MG cheques if I have to put them
through bank accounts.

Anyway, you can check that for yourself. Just call Canada Post.

I'm tired of getting run over from behind. If I can't collect a WU because
it's fucked up, or I can't cash instantly any other pay vector, I'm not
accepting it for bitcoin. You guys can buy LR, which is value pegged to
the USD, then take that to the cash markets like Mt Gox and negotiate your
own best deals.

This whole bitcoin scene is not about commerce, the little bit of biz that
got started has been killed because of this mad rush of greedy fucks all
trying to ass rape the exchangers and merchants. No thanks. Instant trades
only for bitcoin from this day forward. That policy I extend to
bitcoin4cash.com as well. The price is now set when the envelope is
opened.

I may be a lot of things to a lot of people, but "liar" is not one of
them. I resent your accusation and I challenge you to talk to Canada Post
about their new policy. I suggested you complain where you bought it about
their failing to be able to liquidate it on the other end in hopes of
getting the policy changed. Calling me a liar for that is insulting. If
you had asked CP, you would know it to be true.
[Quoted text hidden]
Byron Bussey <[email protected]>    Tue, May 10, 2011 at 9:57 PM
To: [email protected]
cash the MO and send my bitcoins then.


BB
[Quoted text hidden]
Byron Bussey <[email protected]>    Tue, May 10, 2011 at 10:36 PM
To: [email protected]
And I will apologize. You have to realize I sent 1000 off to someone I dont know and now I am seemingly getting the run around, so I am suspicious. If I am proven wrong I am sorry.

BB
[Quoted text hidden]
Byron Bussey <[email protected]>    Thu, May 12, 2011 at 9:59 PM
To: [email protected]
Hello, remember me? Seems like my concerns were completely valid.

BB

Wow, is this legit?

I'm not going to leave feedback myself, since the details of these situations aren't hashed out yet, but if any of you feel that Nanaimo Gold has wronged you or did indeed follow through on their promises, leave some feedback!  That will help give a clear indication of whether people should trust this company.

http://www.bitcoinfeedback.com/viewuser.php?id=28

On may 4th Shane Smith of nanaimo gold informed me my money order for $999 of BTC @ 2.9 had been received but he didn't have the bitcoins to actually send. (He claimed it was other peoples fault instead of his which is weird since he buys and sells bitcoins). Anyways we have been back and forth for 8 days and I still have no bitcoins and no idea where my money is. DO NOT USE THIS WEBSITE.

The money was posted to my bank account this morning.     Besides the one nervous day of not hearing from Shane it was a very pleasant experience using Nanaimo Gold and I would recommend it.

However the phone number on the website should probably be updated or changed to some sort of voice mail box.  The undescriptive beep that I hear when I dial it is what made me nervous.

I am having a problem with him. Avoid.

I recently sold off some Bitcoins on mtgox for liberty reserve which I sent to Nanaimo Gold to be deposited in my Canadian bank account.  Before making the trade I used the contact form on their site and was replied to by a Shane Smith promptly. Now that I have actually sent the money I can't get a response via email and it appears the phone number on their website is not in service. has anyone else had this issue?  It's only been 24 hours since I sent the money so there is still a chance that he is just busy at the moment and my money will arrive, but the lack of a working phone number worries me.

Thanks for the links. I'll check them out...

I'll have to see if there is anyone in the Philly area dealing in this. Thanks for the suggestion.

I've done business with Nanaimo Gold before and he always honored his end of the bargain.