Statement from Warren Jolly

[Webzcas]

Back to Business - Statement from Warren

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Please note that the below statements do not represent anything other than the facts, and/or the opinions of Warren Jolly. They do not represent the opinions of Affiliate Media, CAP, or any of its other shareholders or employees.

Dear Clients, Business Partners, Colleagues, and Friends,

Following the recent events and what they are doing to the industry, I felt issuing this statement was necessary, and frankly, a long time coming.

First, and most importantly, I owe all of you a huge apology.

I screwed up. There is no excuse for trying to cover up my affiliation with CardSpike, other than I knew there would be a conflict of interest. I realize that I have betrayed your trust, and all that I can ask at this point, is that you give me a chance to rebuild it. Here is the truth, once and for all.

Last year, Lou and I formed Effective Media Group, or EMG, as a completely separate company from CAP and PAP.

We did this for two reasons. First, Lou wanted to manage a company from his home base in Florida. A new company would provide the revenue stream necessary to enable that. Lou would have a separate company to grow and develop, while remaining at CAP as community administrator, while I handled the day-to-day business of CAP, PAP, and Affiliate Media’s other properties from our main headquarters in California.

Second, Lou and I were approached by a group of investors seeking our help in launching two new online properties: Absolute Slots, an online casino, and Cardspike, an online poker website. We set up EMG as a separate company though which we could offer managed consultancy operations to these clients as well as utilize EMG as a vehicle to launch our own affiliate portals – CasinoFan.com being the first – since that was our start in this business pre-2000. We did this together, as business partners.

Late in 2008, Cardspike experienced errors with affiliate tracking. I don’t want to minimize the severity of this error; it’s an unacceptable oversight that I take very seriously. However, ultimately it was a regrettable but simple technical error involving inaccurate reporting and in no way a deliberate failure on my behalf.

As someone who began my career as an affiliate, I sincerely hope you trust me when I say that I would never knowingly deny payment to any affiliates.

I was just notified this morning that affiliate accounts were credited yesterday for commissions up to January 31st, so everything should be up to date. February commissions will be paid next week. There are approximately 6 affiliates who have not yet been paid because they have not responded to emails requesting their Cardspike Player account information. If you are one of those affiliates, please respond to those emails as soon as possible so you can get paid.

If there are any other affiliates that still have not received payment from Cardspike, please contact tom@cakepokernetwork.net.

Although I had no ownership interest in Cardspike or Absolute Slots, I did have a beneficial interest due to my involvement with EMG. Again, I sincerely apologize for not coming clean sooner about this. I failed to do so because of the perceived conflict of interest with the CAP and PAP operations, and because Lou and I could not come to an agreement on how to go public with this information.

Effective immediately, I am resigning from EMG and surrendering my shares in this company. I will have no further connection with EMG, Absolute Slots, Cardspike, or any of the owners or shareholders of these entities.

I’d also like to address the larger issue of Lou’s banning from CAP, and the reasons behind that.

Over the past weeks, because of certain irrational and potentially dangerous decisions on his part, a rift has developed between my former business partner and me. Several days ago, Lou chose to take these private disagreements into the public arena, by posting harmful allegations and sensitive company information here at CAP and on other public message boards (as well as emailing this information to hundreds of other people).

I felt that Lou’s decision to make our business disagreements public was not only unprofessional, but also potentially damaging to CAP and the entire iGaming affiliate community.

While Lou originally founded CasinoAffiliatePrograms.com, he has since made the decision to share the ownership and business direction of CAP with other parties via a corporate vehicle.

Lou has recently accused CAP employees of failing to post his CAP TV videos, in which case the accusations were simply incorrect. The truth is, he failed to meet the deadline for content submission, which is the same every week. He has displayed unwarranted hostility towards community members and has even posted forum threads under other users’ names — even under my own name.

He has chosen to circulate throughout the iGaming world a letter in which I am accused of illegally channeling Affiliate Media funds into my own personal accounts. This is absolutely untrue. The transactions in question were simply the transferring of company funds from one corporate account to another. This was done in order to limit access to these funds and protect the company and its shareholders from rash and potentially damaging actions (such as posting sensitive financial information on public message boards).

The following is a statement from Larry Ernst, Affiliate Media’s Vice President of Finance:

The WAMU Business Analysis Checking account is used for general business purposes for all divisions of Affiliate Media, Inc.

Regarding the transactions circled on the WAMU Business Analysis Checking Account Transaction History document, funds were transferred to the WAMU Money Market account ending in 2410 to maximize return on funds since the Business Analysis Checking Account was non-interest bearing.

The funds withdrawn by the PC Initiated Outgoing Wire on February 20, 2009 were transferred to the Wells Fargo Business Cash Management Account for Affiliate Media, Inc. and subsequently transferred to the Affiliate Media, Inc. Comerica Business Checking account for safekeeping.

In no event have company funds been comingled with personal funds by any officer of Affiliate Media, Inc.

I am personally appalled to find the corporate records being posted in account number and transaction level detail and compromising the privacy and integrity of the accounts.

This kind of irrational and damaging behavior is why Lou has been banned from the CAP Forum. I cannot allow such unprofessional behavior to further jeopardize this company or the interests of its owners, employees, and community members.

In light of his recent behavior, I strongly feel that Lou’s exit will only improve the CAP community. Those of you who have been around CAP for a while know that I truly do care about this community, and have been an integral part of its growth. Yes, as a businessman and entrepreneur, I want to see it generate revenue. However, I am not willing to jeopardize my relationships with clients, affiliates, or colleagues to make that happen.

You will be seeing a lot of positive changes at CAP in the future, including, but not limited to:
- Changes to CAP Certification
- Free speech approach allowing members to speak their minds without unjust banning (several were already unbanned at the time of this posting)
- Termination of hostile CAP efforts, such as the T&C alert monitoring and CAP audits. Instead, we will partner with folks who already do this well, such as AGD and APCW.
- Evaluating the establishment of an independent “Advisory Board” consisting of influential members that will help ensure CAP makes the right decisions in the best interest of all.

I apologize for the fact that a lot of this has been made public, and in the interests of avoiding such a trend into the future, this will likely be the last public post that I make about this issue. I would like to encourage everyone to get back to business so we can move forward with positive change ahead.

I welcome your comments, feel free to contact me directly via PM.

I believe it is too late to make up. The horse has already bolted. How can anyone actually trust CAP moving forward with Warren or Lou still effectively owning it.

Both you and Lou should be thoroughly ashamed.

[wangpoker]

All good-will decisions are made in a hurry.
Obviously it's damage control after this stunt.
They just have no credibility.

[PokerNations]

I wonder if people hadn't been complaining publically about this for months, and then finally Lou hadn't gone and let the cat out of the bag officially, if Warren would have initiated these changes for the good of the community?

Would Warren have just kept the money and continued the coverups, bannings, lies and so forth had things not gone down like this? Is this just a last-ditch effort at damage control and saving their multi-million dollar business?

You'd think Warren would have done something like this MONTHS AGO, rather than waiting for things to progress to this level of outrageousness.

[casinoranking]

I know its popular to bash CAP but could we at least give them credit for when they make the right decision.

[casinojack]

I know its popular to bash CAP but could we at least give them credit for when they make the right decision.

Sure...when ?

[PokerNations]

I know its popular to bash CAP but could we at least give them credit for when they make the right decision.

To me, all three partners at CAP were aware, complacent or involved in the various bannings, thread lockings & deletions, accusations & demonizing of anyone who questioned what was going on, lies, etc.

Now that Warren wants to try and paint Lou as the perpetrator and claim that no one else at CAP wanted to go down this particular path seems rather convenient given the timing.

So the only "credit" I can give CAP right now is their attempt to use the hot-headedness of Lou to throw him under the bus and claim they want to continue on with "business"

[pokeraddict]

I like how it is played off like it is no big deal that they knowingly deceived their customers about CardSpike simply because they didn't know how to sugar coat the fact that they were in a competing business as those they were taking money from to promote. "We didn't know how to tell you we were cheating you so we decided just to lie to you until we were caught so red handed this was our only hope of saving even a tiny shred of our business."

It doesn't matter who points the finger at whom, this all stinks and there are other portals out there that deserve this lost market share.

[casinobonusguy]

I didnt post over at Cap because I swear I will cut my own fingers off if i ever think to post there again LOL. I believe this is damage control and I think Warren is no beter than Lou in this mess just smart enough that he got the majority control of CAP. CAP is just a domain now , hijacked by some holigans . I cannot in good conscious support it again and I do hope the programs remember the legal mess over there and the fact they may find their receipts as evidence in a US Court Room.
It had a nice run but For the officials there to try something like they did is unforgivable and was obviously motivated by greed.Warren had no problems NOT paying affiliates until Lou blew this out of the water.For that I do thank Lou for FINALLY coming clean.

[GGW Laurie]

It seems to me as an outsider looking in that there is alot of blame that could be spread around, this reminds me of a group of kids that got caught with their hands in the cookie jar and then snitching on each other to save themselves from punishment.

" So who stole the cookie from the cookie jar? Who me? Yes you, Not me, Couldnt be, Then who?"......laurie

[rikkerbuddy]

so let me get this right - CAP took money from programs to promote their affiliate programs - So Cap decided to start their own brand with a data base full of affiliates????? The other programs didn't know cardspike was CAP and he is calling that a bad judgment call ......YOU THINK!!!!!! I hope programs hit them in the wallet.

The saddest part of all this - affiliates lost money to cardspike and they did everything wrong, was cap not suppose to be an affiliate watchdog???? they broke all there own rules. What kind of credibility can any affiliate or program ever give someone like that?

Nothing like burning the bridge from both sides.