Unhappy investor investigates MOD Systems kiosk company

Techflash.com: Seattle angel investor and philanthropist Robert Arnold is investigating the financial activities of MOD Systems, a Seattle startup that reeled in $35 million from NCR, Toshiba and others last September for a new kiosk that allows retailers to sell movies and TV shows on SD cards. Arnold, an early backer of the company whose past investments include Starbucks, has not been satisfied with MOD's response to numerous requests for financial and business records, said Jeff Smyth, his attorney. Ron Braley, an attorney who represents MOD Systems co-founder and chief executive Mark Phillips, said that his client has not been engaged in any wrongdoing. Both sides indicated they hoped to reach a settlement.

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