What is Fraud?

Ullja Kuntze, on her Online Fraud Investigation web sites, accuses various artisans of fraud.

What exactly is she accusing them of?

A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed—that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
West's Encyclopedia of American Law, edition 2

Fraud consists of the following five elements:

1. a false statement of a material fact
2. knowledge on the part of the defendant that the statement is untrue
3. intent on the part of the defendant to deceive the alleged victim
4. justifiable reliance by the alleged victim on the statement
5. injury to the alleged victim as a result

Tax fraud against the federal government consists of the willful attempt to evade or defeat the payment of taxes due and owing (I.R.C. §7201). Since tax records are private, Ullja Kuntze has no way to know if any of the artisans she's labeled "fraud" have engaged in tax fraud. Furthermore, non-compliance with local or state licensing does not constitute fraud. At times hobbyists transitioning into profit-making activities consult with local authorities, who fail to give full or correct information, which is easily remedied upon discovery. An innocent oversight is much different than a willful act of deception.

Ullja Kuntze's use of the word "FRAUD" may in and of itself be fraud, as she is engaged in making false statements about her competition with the knowledge that the statements are untrue, with the intent to deceive potential customers and thereby harm the artisan upon which the label of "fraud" has been affixed.

Legal Action: Artisans v Ullja Kuntze

It appears that some of the artisans featured on Ullja Kuntze's Online Fraud Investigation web site will be meeting with Ullja in a Texas court room at some point in the future. Sources indicate that "some artisans" is more than a handful, and that filings are being prepared.

Debbie of Pierce's Designs has been valiantly organizing the legal fund for these efforts. She and many other artists have given time and money, and dedicated the proceeds of their creative works to the ever-growing fund.

Why do these people, many of whom have not been named on Ullja Kuntze's blogs, give of their time and resources like this?

When asked, the resounding answer is "I hate bullies".

You can donate on this page set up especially to gather funds, or follow the links on the page to items on various venues being sold specifically to support this cause.

P.S. apparently curiosity is killing the cat... Ullja made a donation to the fund as well, presumably to figure out who to report for this outrageous activity.

Why is Ullja Kuntze so Vindictive?

In late 2007 and into Summer 2008, Ullja Kuntze claimed to make cookies in her central Texas bakery while simultaneously selling lampwork beads from Milan, Italy. Since it's physically impossible to make beads in Italy while operating a bakery in Texas, it was suspected that Ullja was not actually operating a bakery as her Etsy cookie site claimed.

Texas authorities confirmed that Ullja did not have a licensed or inspected bakery in Texas. Authorities were denied access to the address (a residence) from which the baked goods were being shipped. Etsy subsequently terminated her cookie shop account. At this point, approximately 150 Etsy transactions have been found for cookies make in an undisclosed, uninspected, unlicensed kitchen.

During this time, Ullja was also being investigated for fraud by a group of lampwork glass beadmakers. Ullja was found to be purchasing beads from these beadmakers (see Proof of Fraud), then listing them on Etsy as her own work. This is a clear violation of Etsy's terms of service so Ullja's Etsy bead shop was terminated on June 15, 2008.

[link to table of pdf records of transactions from both Etsy shops]
[link to table of jpg and pdf records of misrepresentation of other beadmakers' work]

About the Handmade Artisan Fraud web sites

Online Fraud Investigation are two websites written by Ullja Kuntze. They are located at http://handmadeartisanfraud.blogspot.com and at http://www.onlinefraudinvestigation.com.

The purpose of the Online Fraud Investigation website is to harass online sellers who either 1) have spoken out against Ullja Kuntze's fraudulent activities, or 2) are small online sellers in direct competition with her.

Ullja's accusatons of fraud are, in fact, fabrications against online sellers who have spoken out against Ullja's own fraudulent business practices, practices that resulted in the termination of both her Etsy seller accounts in 2008. She is also making accusations of fraud against those who have questioned her online smear campaigns in 2009.

How Do We Know Ullja Kuntze is the person writing the libelous posts on the Online Fraud Investigation website? Visit ulljas.com.