PSA: Group For Victims Of Alex Kay Scam

[mgarfin]

A broker flipping miles is most certainly reportable income.

Seller was not a broker
Buyer was reporting the purchase

Flipper was stealing so I hope he didn't report it!

[precise]

A broker flipping miles is most certainly reportable income.

sounds like we're talking about individuals selling their miles

[avromie7]

Im not sure why you keep trying to steer it in that direction.

As I said above he took my BIL 500k UR promising 1.6 resold it to a non-Jewish company and was paid.

He then used the miles for tickets and hotel stays in his own name.

I don't think anyone is trying to twist what's going on, it took me a while to follow your story, and I think others are having the same issue.

[sky121]

Seller was not a broker
Buyer was reporting the purchase

Flipper was stealing so I hope he didn't report it!

Well not just he needs to report it. The ones selling to him do as well.

[mgarfin]

He used to be very reliable. Back then

That how I got connected to this. My BIL called me up he has an offer from Alex for 1.6 on UR. He asked if he was reliable.
I had done a transaction with him 9 months before and was paid a large amount. I vouched form him without checking.

Only after he didn't pay I found on DDF that he claimed to have declared bankruptcy long before!

[TimT]

Seller was not a broker
Buyer was reporting the purchase

Flipper was stealing so I hope he didn't report it!

If you sold your points & got tens of thousands in cash. You gotta report this cash or not ?
I’m assuming he’s got it all on file.

[avromie7]

Well not just he needs to report it. The ones selling to him do as well.

If you sold your points & got tens of thousands in cash. You gotta report this cash or not ?
I’m assuming he’s got it all on file.

The general consensus is that it's not taxable, because it's a rebate.

[sky121]

The general consensus is that it's not taxable, because it's a rebate.

Selling them? Is a rebate? 

[TimT]

The general consensus is that it's not taxable, because it's a rebate.

Earning cash back is rebate.

[avromie7]

Selling them? Is a rebate?

Earning cash back is rebate.

I use my credit card to spend $100 and receive 100 points which I sell for $1.60, I now received a $1.60 "rebate" on my $100 purchase.

[TimT]

I use my credit card to spend $100 and receive 100 points which I sell for $1.60, I now received a $1.60 "rebate" on my $100 purchase.

not everybody sees it quite that way

[incendia]

I use my credit card to spend $100 and receive 100 points which I sell for $1.60, I now received a $1.60 "rebate" on my $100 purchase.

No you got a 100 point rebate [probably not taxable]

you then sold the 100 points for $1.60 you now have $1.60 of revenue that you need to report

 

[yuneeq]

Why does everyone expect Dan to post every uncomfortable topic on DDMS?
Give the man a break. It's his site and doesn't need to be pressured into it.

Even if he's not worried about legal/halachik dilemmas, it doesn't mean his audience is interested in these kind of posts or possibly it might incite nasty discussion.

[mgarfin]

Well not just he needs to report it. The ones selling to him do as well.

Only if get paid!

I don't think anyone is trying to twist what's going on, it took me a while to follow your story, and I think others are having the same issue.

Ok i"ll put it out in more detail.


My Brother in law was looking to sell 500k UR. He sent out a text to all brokers he had saved in his phone and email contacts.

Shlomo Miles replied offering 1.6

My BIL called me up saying he has an offer from Alex aka Shlomo Miles for 1.6 on his UR. He asked if he was reliable.
I had done a transaction with him 9 months before and was paid a large amount. I vouched form him without checking.

He asked we transfer the miles to a 3rd parties UA account. Chase rejected it. He then asked he transfer it to his own UA account. We did so and provided login info.
A few days later he saw his UA cc was charged for taxes.. we reached out to Alex and he said ill pay you for that too. it had to be done with account holders CC.
Then he started shlepping with the payment. He said he sent it, then he said tomorrow...

Only after he didn't pay I found on DDF that he claimed to have declared bankruptcy long before!

A few weeks later someone sends my BIL a link to ripoff report with his name DOB and UA account number saying he purchased miles form Shlomo miles and wired the money (8k). He gave him this account belonging to my BIL. A few days later Alax called him up saying he needs short time access to the account. When he logging back in he was locked out.
This buyer blasted off on ripoffreport against Shlomo miles and seller.

A few days later my BIL got a call from the buyer he said he was calling all ppl in the area with that name trying to find the seller.
Only then did he realize that buyer and seller were scammed.

They teamed up to try fight. Sent a lawyers letter ...
Alex went to ripoffreport and posted the buyers name and pic and smeared his company.

BTW the buyer tried getting ripoffreport to change his own report. As he realized that seller was scammed too.
They replied saying as a courtesy they'll remove part of his DOB and UA #. They would not remove my BILs name even though the reporter said it was an error.

[aygart]

BTW the buyer tried getting ripoffreport to change his own report. As he realized that seller was scammed too.
They replied saying as a courtesy they'll remove part of his DOB and UA #. They would not remove my BILs name even though the reporter said it was an error.

I think that would be grounds for a libel suit against ripoffreport

[mgarfin]

I think that would be grounds for a libel suit against ripoffreport

Google it

This is what Alex emailed us in reply to the ripoffreport

As for ripoff report, thousands of people already sued them with no success, in this country we have a freedom of speech .

[avromie7]

No you got a 100 point rebate [probably not taxable]

you then sold the 100 points for $1.60 you now have $1.60 of revenue that you need to report

-1 just like if I sell you my dining room table I don't need to report it as income.

[aygart]

-1 just like if I sell you my dining room table I don't need to report it as income.

If you sell it at a profit you do.

[avromie7]

If you sell it at a profit you do.

-1 ask an accountant.

[Dan]

I think that would be grounds for a libel suit against ripoffreport

+1.
Free speech doesn't include libel.