Ex-Verkada Partner Reliant IT Files For Bankruptcy
Reliant IT, founded by a man convicted for an $11 million fraud, grew quickly, fueled by sales and promotion of Verkada products in the last four years. However, the company has now filed for bankruptcy.
In 2022, IPVM reported that stop-work orders were filed against Reliant IT after revealing that the company had not filed certified payroll for public school projects.
In this note, we examine the bankruptcy filings, the debtors, and how Verkada is now officially disassociating itself with Reliant IT, in remarks to IPVM.
Executive *******
*************** ******* * ********** ** ******* 2023, ********* $*.* ******* ** ***** but **** **** $***,*** ** ******. Reliant's ***** ******* ***** ** **** known ** *****-*** ****** ******* **********, *.*.,**************** **** *,*** ******* *******.
** ***, *** ******* ******** ********* *******,*** *** ** * ***** **** renovation ****, *** ** **** $*.* million ****** *** *****. ******* **** owes $***,*** ** ************'* ***** ********** in ***** *** ******* *****.
******* * ********** ******** *** *********** of * ******* ****** **** * restructuring (******* **). **** ** *******'* debt ** ************* ***** **** *** $500,000 ** *** ***** ********** *** unpaid ***** *****.
******* *** ***** *** *** ******* to ******* ********. ******* **** **** that "** **********" ******* ** * partner ** ******** **** *** "**** are *** ******* ** **** *** products." ** ********, **** ** ****, Verkada ******* ***** ******** ***** ******* IT's *******'* **********, ****** ****** **** expected ***** ******** ** ****** ******* business *********.
Burns/ ******* **********
******* ******* *** ***** *** *** ** Pennsylvania ***************** **. ****** ******** *** ******** ********, Burns*********-**** ** ******* ****** *** ***** over * ****** ** **** ******* tech ****** ***-***. **** *** ******** by ****'********* *****:
Known *** ******* ***********
***** / ******* ****** ****-***** ** security *** ********** ******* *******, *.*., in ****,************* ********** "**** *,*** ******* *******":
********* ****** **************** *** *** *** ** **** more *******:
***** ************** ******************** ** *** $*.* ******* *********:
******* ********* ** ******** ******** ****** ****** * "******* ********* ******** *** Trusted ******** *********."
Verkada: ******* "**********" ** ******** ****
******* **** **** ** "**********" ******* in ******** ****, ******* "**** *** not ******* ** **** *** ********, and ******* **** *** **** *** products ** ****":
******* ** ** *** ** ********** Verkada ******* (*** *** *** **** sincewe ********** **** ** ******** ****). They are not ******* ** **** *** ********, *** ******* **** *** **** *** ******** ** ****. Verkada’s customers should work with one of our more than 6,500 authorized resellers to purchase our products and solutions. We take any unauthorized resale of Verkada products seriously. [emphasis added]
**** ***** ******* *** ** ******* Reliant, *** ** *** *** *******. (Note: ******* ******* *** *** ******* distributors *********** * ******** ** *** ********** filing.)
Bankruptcy ****** ********
** ******* **, ****, ******* / Burns******** ******* * **********, **** ***** himself ******* *** ******:
* ******* * ********** ********* ****** businesses ** ********* **** ********* *****, i.e., ***** **** *** *** ****** by **********. ******* ****** ****** *** the **** ($*.** *** ** $*.**) as *********. *******, **** ** ** cannot ** **********, **** ** *******'* unpaid ***** *** ***** ** ***** labor ***********.
$5.4m ** ***** *** **** **** $***,*** ** ******
******* **** ** **** *** $**,***-$***,*** in ****** *** ******** ** ***********:
** **** ** ********, ** ***** it **** ****** *** **** ** Reliant's ********* ** ** **** *** meaningfully. *******'* ********* ***** ******* ****, but ** ***, ** ******* ********** has **** *****.
Wenhold ** *** ******* ********
*******'* ******* ******** ** *** ********* *******, *** ******$*.* *******:
********* *** ***** ********* ******* *** Chief ********** ******* ******* **** **********, * ******** ************* $* ******* ** *******, *,*** employees, *** ****** ** ** *** US' "*******, ****-*******, ******** **** *********."
******* ****** ******* / ***** *** money ****** *** ******** ************ ** 2022 *** ****. **** ***** **** Wenhold ****** ** *******, ** ***, is *** ********* ** *** ****** materials **** ********.
******* *** *** ******* ** ******* requests **** ****. ** ** ****, we **** ******.
Sued ** ******* ****** *******
** ****** ****, *** ****** ****** Reliant ***** *** **********, ****************** / ***** ** ************, ********* the $*.** **** ** **********. *******, the ******* * ********** *********** **** significantly. *******'* ****** **** ** ***** under "*********, ***********," ******* ** ** dischargeable ** *** ********** ** **********.
Owes $***,*** ** ************ ***** **********
*********** ****$***,*** ** ***** ** *** ************ Labor **********. **** ** **** *** "payroll ***" *** *** ***** **** is **** *** "***** ***':
**** **** ** ****** ** "********" so, ****** **** ** *** **** of *** ****, ** ****** ** discharged. **** ** ******* **** *** it ****,***** *** ** ** ** *** publicly *****, ***** **** ** ******** less **** $***,*** ** ******. ***********, the ***** ***** ****** ******** ** the *******, **** ** *****, ********.
Other ***** ********** ******
*** $***,*** **** ** *** ************ labor ********** **** ** *******'* ****** with ********* **** ***** ***********, *.*.,** *******, ** ********** **** - Verkada ******** ******* *** *** *** NJ ****** ****************** ******* ******* *** **** *** NJ ****** *******, ** ********* ******* Submitted.
Other *********: ***, *******, ******* *****
*** *** ******* *** ************ ********* *** *** **** $**,*** and $**,*** ************:
******** ******* ***** *** **** ****** wages, *.*.:
- *** ******, ******* ********** (**** $**,***.**)
- ****** ****, ********** ******* ********* (**** $*,***.**)
- ****** *******, ** ***** **** (**** $*,***.**)
- ***** *****, ************ & ********** *********** (**** $564.28)
*********, ****** ***** ****** *************** * **********. ******, *** ***** debts *** ****** ** "********" (*.*., not *************) ** *********. *** *** *******'* *****, *******, are "***********" *** **** *************.
No ****** ************/*********
***** ** ** ******** ************ ** the ********** ** *******'* ******* *******' ********. **********, ***** *** **** ***** on ******** **** *** **** *** months, ******* ************* ***** *** *** ******* ******** off.
Poor ******* ********* *** *******
*** ********** ***** **** ******* ********* for *******, ***** *** *****-**** *********** with *******, ******** ** ***** ** argued **** **** *** * ****** of ***** ***** ** *****-********* *** that ** *** ******** ******* ***.******* ** ****** ** *** **** security ***********.
Adds ** **-*** ******
*****' ***** **** *** ******** ************** ************** ******* ************* *** *********** ****** partner **** (** ** *** **) convicted ******. *** ********** ***** ** interpreted ** ********** *** ***** ******** with ***** ****, ********, ** ** sure, ***** ** ** ******* **** of *** ******** *********** **** *** company.
***!?! ******* ****, * ********* ***** not ******* ** *** ***** *** still ***** *** ******* ****. *****!
* *********** **** ***** ***** * years ***, ********** **** *** *********** as "********** ******* ********* *** ****** on. **** *** **** ** *** staff ** **** ****** ***** *** hardworking.
*** ***** *** ******* ** **** bankruptcy ******?
***** ******* **** ** *** "**********" its ************ **** ***** / ******* - ******* ** ** ********* ** a "******* ********* ******** *** ******** Installer" ** ****** ****** *******:
****, **** *****, ***** ******** * Verkada ****** *** ******** *********** *** ********** ** * ******* (Verkada ** *** ********* ** ****):