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The SKULLY Nightmare Unravels: Strippers, Lambos, Limos…

Where did the money go? Strippers? Limousines? First Class Air Tickets? Fine Art? All of the above and more, according to the latest news…! When we first heard of Skully’s awesome HUD smart helmet, we were very impressed. Fast forward a few years, we can erase the words “very impressed” and replace them with “very disappointed.” It’s not the tech that was the problem, it was the company founders…and their appetite for the high life. Nearly $2.5 million of investment down the plughole, and most of the R&D budget (allegedly) spent on unnecessary extravagances. Former Skully executive assistant, Isabelle Faithhauer has launched a lawsuit against Skully bosses Marcus and Mitch Weller that exposes their alleged fraudulent activities. For the sake impartiality, and the whole “innocent until proven guilty” rule, we can’t stress the word “allegedly” enough…

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According to Faithauer, the brothers: “used the corporate entities of Skully in such a fraudulent manner as to render the corporate entity a sham.” She also claims that the brothers: “routinely demanded [she] engage in fraudulent bookkeeping practices designed to defraud investors in Skully into believing that Skully funds were being used for business purposes, when in fact, the funds were being used to pay the personal expenses of the Wellers.”

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And what were those personal expenses? Here are a few of the best allegations…

Investors money was used to pay the rent for the brothers’ rented apartment in San Francisco’s Marina district, $80k in cash given to an unnamed co-founder (processed through the books as a business trip to China), Lamborghini rentals, two Dodge vipers, $2,000 on limousine rentals, $2,000 spent at a strip club called “De Ja Vu”, $2,345 spent on paintings, four motorbikes, a first class flight to Hawaii booked at the last minute, and much, much more.

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When Skully first arrived on Indie GoGo, they were asking for a mere $250k to get things started up. That figure swelled to nearly $2.5 million after independent backers were impressed with the idea and wanted more – but the product never arrived. The company website still says that the helmets are “now shipping” but according to the Indie GoGo page, Skully has closed its doors for good. We’ve copied and pasted the statement below:

“It is with great regret we must announce that SKULLY will formally cease operations, effective immediately. Over the past several weeks our management team has worked feverishly to raise additional capital but unforeseen challenges and circumstances, beyond our control, made this effort impossible. What this means now is that SKULLY will no longer be able to ship AR-1 Units or process refunds directly.

Substantially all of the assets of SKULLY are now subject to liens held by a secured creditor. The management team does not know if there will be any value above the amount of the secured debt. In addition, at this time, we are not aware whether there will be any distribution amounts available to unsecured creditors. SKULLY now plans to file a Chapter 7 Bankruptcy case within the next several weeks. You will receive notice from the Bankruptcy Court and instructions on how to file a claim.

Our team is devastated and deeply saddened that our valued partners, vendors, employees and customers have been negatively affected by what has transpired. We realize there are many unanswered questions and that this is a very upsetting situation. We are truly sorry.”

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If you were one of those individual backers, or put down a deposit for a Skully HUD helmet, we’re sorry to say that your money has probably disappeared for good. If any of our community put an order in, let us know and tell us your experiences…

 

Categories: Motorcycles

Joe Appleton
About Joe Appleton

I’ve done a bit of work here and there in the industry – I’ve even ridden a few bikes for actual money but what it comes down to is this: I ride bikes, build bikes and occasionally crash ‘em too. I like what I like but that certainly doesn’t make my opinion any more valid than yours…