@Matt Bryant
They never had senior management or shareholders, it was just a small operation with under 150 clients (most lifetime) and less than $1k/month in actual recurring income. They only had a total of 3 hosting servers, one of which (the biggest) was used just for the lifetime clients. It never got off the ground enough and was never something that was intended to be a scam. There just wasn't enough recurring income/profit to pay for the expenses.
Source: I provided some consulting for the company.
Biting the hand that feeds IT
