Hillary's vacuous vetting exposes International Profit Associates hypocrisy
My good friend Dan Curry has been working on the Hillary/International Profit Associates story for months, and I'm sure he won't mind that I take his post, almost word for word, and post it here.
Dan blogs at Reverse Spin, and I highly recommend his blog.
On Meet the Press last Sunday, Hillary Clinton proclaimed that new vetting procedures had been been put in place to prevent her from taking money from sleaze merchants like Norman Hsu.
If you think you've heard that line before, you are right.
The spokeswoman for Mrs. Clinton, Ann Lewis, said Mrs. Clinton was not aware of Mr. Burgess's background when he held fund-raising affairs for her in 2000 and 2003, nor did she know whether other prominent Democrats had rejected contributions. She said that Mrs. Clinton’s vetting procedures have been strengthened since the senator’s appearance at I.P.A.
That paragraph appeared in a May 2006 article in the New York Times focusing on questionable contributions to Clinton from Illinois-based International Profit Associates, a business consulting company run by a convicted criminal that is beset by fraud allegations and a massive federal sexual harassment lawsuit.
Small business owners across the country, frustrated by Hillary’s continued refusal to turn away IPA funds, have written her this letter today. The small business owners were victimized by IPA’s fraud and are suing IPA in a federal racketeering lawsuit pending in Chicago.Hillary Clinton for President
4420 North Fairfax Drive
Arlington, VA. 22203
Dear Senator Clinton:
We, the undersigned small business owners from across the country are deeply offended that you continue to accept campaign contributions from top officials of a business consulting company, International Profit Associates (IPA), Buffalo Grove, IL., that defrauded us. As we struggle in federal court via a civil racketeering lawsuit to recover the thousands of dollars this company took from us illegally, you continue to use political donations that might have come directly from our pockets.
We also are appalled because you accepted the money amid dark clouds of fraud allegations, a criminal past by the company's founder, and one of the largest sexual harassment lawsuits ever filed by the federal government.
We are trying to fight back against this company and you, Senator Clinton, are enabling it. We ask that you immediately donate to charity the more than $150,000 the New York Times says you've accepted from IPA's top officials, a figure that includes a ride on IPA's corporate jet and a donation from a high school age son of an IPA official.
Surely, now, in the wake of the Norman Hsu scandal, some time, including:IPA is being sued by the federal government's Equal Employment Opportunity Commission for widespread sexual harassment. In a New York Times article May 7, 2006 titled, "Rubbing Shoulders with Trouble, and Presidents," EEOC lawyer Diane Smason called the allegations "probably the most egregious" ever filed by the agency's Chicago office. She said the investigation found that "sex harassment is the standard operating procedure for this company." That case is pending in U.S. District Court. The Illinois Attorney General’s office has acknowledged publicly that it is investigating IPA for alleged fraud. The Better Business Bureau says IPA has an "unsatisfactory record" based on reoccurring complaints that total 427 in the last three years. The BBB has issued "alerts" in various states to warn businesses that IPA was soliciting work there. The company founder, John Burgess, is a convicted criminal, according to numerous published reports. He was convicted of attempted grand larceny and of soliciting a 16-year-old prostitute, those reports state. He was disbarred as a lawyer in New York state in July 1987 for "failing to answer charges which involved perjury, larceny, a conviction for patronizing a 16-year-old prostitute, possession of drugs and engaging in a pattern over a six-year period of lies and deceit," according to The Lawyers Fund for Client Protection of New York state. Burgess also is named as a key defendant in the sexual harassment lawsuit. The company's attorney, Myron "Mike" Cherry, also a contributor of yours, has been identified in published reports as "Individual "H" in the Illinois criminal indictment of businessman Antoin "Tony" Rezko. Cherry has acknowledged in published reports that he was the conduit for some of the IPA campaign contributions. Already, politicians across the country have returned donations from IPA because of the company's checkered past. Illinois Senator Barack Obama, Illinois Governor Rod Blagojevich, New York Attorney General Andrew Cuomo, Wisconsin Governor Jim Doyle and former Wisconsin Attorney General Peg Lautenschlager are among those who have returned contributions from IPA.
We have made our fraud allegations in a federal racketeering lawsuit pending in U.S. District Court in Chicago.
Mrs. Clinton, we see from published reports that you have identified yourself as a champion for women’s rights and an advocate for small business owners. We cannot fathom, in light of those self-labels, how you could possibly accept campaign contributions from a company accused by the federal government of sexually harassing scores of women and one that has left behind a long trail of fraud complaints from small business owners. Do you believe the 114 women who were allegedly sexually harassed at IPA are not telling the truth about that harassment? Do you believe the Better Business Bureau is wrong? Do you think the state Attorney General is unjustified in her investigation of IPA?
We believe this is our concern because the campaign contributions you continue to accept came from the money that we believe was taken from us illegally. We do not believe you should continue to further your political career with such tainted cash.
We are not singling you out in this request. We plan to make the same request to other public officials who continue to accept and hold IPA-related campaign contributions. We wrote you first because you are running for President and certainly should be setting an example for other politicians.
Sincerely,
Amari Company, Inc., Amherst, NH.
Amazing Productions, Inc., Tamarac, FL.
Precision Painting and Decorating, Inc., Elmhurst, IL.
All About Construction, Inc., Fort Myers, FL.
Capital Removal, Gold River, CA.
BBQ Island, LLC., Gilbert, AZ.
Compsolution VA, Inc., Richmond, VA.
JRP Construction, LLC., Yuma, AZ.
Evco Commercial Construction, Corp., Lake Elsinore, CA.
Gunnison Metal Shop, Inc., Gunnison, CA.
Captains Select Seafood, Minneapolis, MN.
MSI Redimix Inc., Mesquite, CA.
Joseph E. Clouse, Inc., Lehigh Acres, FL.
Kyles Discount Stuff, McPherson, KS.
Dames Air, LLC., Warrenton, MO.
Home Theater Design Group, Carrollton, TX.
Gigs Inc., Tewksbury, MA.
Cool Access LLC., Mesquite, TX.
Philipsburg Electric & Supply, Inc., Philipsburg, PA.
Gilbert-American Companies, Rockwall, TX.
Hinsdale Sales and Rental, Inc., Hinsdale, NH.
Hitech Fire Detection, Inc., Houston, TX.
Tonight, the Democratic candidates for President are debating in New Hampshire. Considering that some of IPA’s victims are from that state, it would be the perfect time for somebody to ask Hillary about how IPA has escaped her vaunted vetting procedures.
The International Profit Associates story is out there on the Internet, but you have to do some digging to find it. The Oprah Winfrey Show's take on it can be found here.
From Oprah's site:
According to Charlotte, even the top executive participated in the harassment. "John Burgess, the owner, had his assistant proposition me to have sex with him," she says. "She started telling me a story of how he sleeps with women in the company and how I can get a better job if I do sleep with him."
Shortly after Charlotte rejected her boss's proposition, she says, she was demoted. "The next day I went to the [Human Resources] department and spoke with the manager," Charlotte says. "She looked at me and shrugged her shoulders and said, 'That's how he is.'"
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12 comments:
Rezko's hand reached far....
Is this guy related to James Burgess from the Illinois National Guard sexual harassment scandal?
I guess it's OK though to Dan (and Bill) that he gave Sen. Chris Lauzen's committee more than $21,000.
Go ahead, check the elections website.
Actually Sen. Lauzen has taken more than $70K from IPA officials and I noted it in one of my earlier blog posts where I listed all the contributions.
--dan curry
First let us all thank INC for serving the small business community in exposing this nationwide scam!
Without your thoughtful and continued support of this forum, it is likely that this would continue forever.
To any that believe the efforts are not having serious impact, consider the following:
1. IPA has been forced, either by political or AG of Illinois to stop advertising fake/purchased testimonials of Bush, Clinton, etc etc etc. The advertising has been taken down on all IPA sites. They have also been forced to stop using the name of Harvard, The Chamber of Commerce, and INC,. My understanding is that DUN and Bradstreet will soon join the growing list of folks that don`t want to be used by this firm...Heck they don`t even want their name mentioned in the same sentence...LOL
2. IPA has been forced to answer in a court of law charges of fraud, from over 40 heroic business owners who were all scammed in the same manner by this company. These 40 are supported in their effort by more than 10 eyewitness` to the crimes, who were all employees of IPA during the incidents of fraud and deceit.
3. The AG of Illinois continues to investigate this company for several charges including: Deceptive Marketing Practices, and Illegal Business Activity.
4. The EEOC is alleging and proving the largest Sexual Harrassment case in their history.
5. IPA has been forced to "Settle" two previous RICO cases in the last 6 months.
Now based upon IPA answer to Plaintiffs response to IPA`s "motion to dismiss", there is obvious fear in the otherwise arrogant pleading of the Defense Council.
This is because, his entire answer is the hope for some mythical and/or technical attempt to dismiss.....Damn the Facts, just "trust" me, IPA is not a RICO enterprise.
My guess is that any Federal Judge will see through the attempt by IPA to avoid prosecution through poorly attempted legal trickery, and the case will continue.
And when that happens....the gates of Hell will surely open up for this firm! maybe that is why the prosecution wants to "go to arbitration".....
IPA claims in their pleading that they have professionally and successfully served over 175,000 clients. Now in their WEB AD`s they claim 75,000. Guess that means that only 75000 of the 175000 got to the second step of the scam...they only lost a few hundred...the other 75,000 lost between $5k and $300k each....Cannot wait till discovery, when IPA is forced to show the actual number of Clients that received the full "Consultant Works" and are showing 3 to 1 return.......Also like to know how many of the 75,000 alleged happy clients would like to join the RICO suit, when they get a chance.....and are made aware...
Your guess is as good as anyone...Mine is that there will be over 25,000 added clients to the Plaintiffs list...if not more....
But we do know there at least 10 or 20 happy IPA clients....from IPA`s website....uhh! that would be about .0001%, or is my math wrong.
id like to know how they can still be in business. i just learned that after my objections my partner hired them anyway and they have taken us for over 30k so far. and we are only a small company with 5 employees. how can i afford that? they were suppose to help with irs trouble too. guess whos knockin on my door? thanks ips
My Company was also scammed by these scumbags.
I would love to be a part of that class action suit!!
Clint B.
i review about this too, :)
link exchange
LOOK AT IT THIS WAY WE HELP ALOT OF PEOPLE OVER 220,000 PEOPLE A YEAR CANT HAVE ALL GOOD WE DO ARE BEST
they came across as a high pressure sales company and i was wondering why. i have one of their consultants in my office right now. they maybe sleezeballs in their sales tactics and their billing but i really think the service is a great asset to business owners.
could you really afford an MBA full time? if you take the information and use what they give you, you will make that money back and grow your business.
i am going to send them packing this week but the time i've spent with them has been very informative and i don't have the resources to hire full time staff to get results in a few weeks.
count me down as one of the .0001%.
if you were in trouble with your biz in the first place, you're a little late in getting help!
The IPA system is unethical! I spent $2k on a laptop, flight tickets, etc..., to go to IPA training for a week. They said the Biz Analyst (BA) does not sale anything. The BA sales consulting services. They BA will ask biz owner questions that nobody would know, just so the BA can gain credibility and make the owner feel stupid. The BA calls the research staff in front of the owner, but there is no research staff. The BA is calling the boss and talking to the boss as one that would talk to a subordinate, so the BA looks as though he/she has power. IPA hires anybody to be a BA. You do not need a financial background to work for IPA. There were people there with little to no financial statement analysis experience. 80% of the new employees quit in 6 months. The job burns them out with long hours, like 5am-10pm. They only pay .30 cents on the mile for your car or a rent-a-car that you use. They say that this .30 cents will workout, but I doubt it. They will also say that they have a 99% satisfaction rate. They will tell you the Better Business Bureau (BBB) complaints divided by number of client's serviced equals 1%. This is not how you measure satisfaction. It should be calculated by the number of complaining phone calls to IPA divided by number of client's serviced. I would guess this is 50%. I never asked. Many dissatisfied biz owners will not bother to call the BBB. So if you are considering working with or for IPA-IBA, I would reconsider.
IPA-IBA earned 216 million dollars in 07'. I say earned because they do the work first then based upon "satisfactory completion" are paid. You folks that worked for the company just could not cut it and left dissatisfied. Thats understandable, but to rip a company that is out there helping companies survive in this current economic crisis is uncalled for. IPA-IBA shows companies how to be more profitable, become easier to operate, and shows them how to retain more of there earnings by providing "makes sense solutions" in the face of an incredibly difficult and complex tax issues. The "harrassment issues" are unfortunate if in fact the are legitmate - but I can assure you that the compmany has long since grown out of any "behavior" that anyone may have been exposed to. The company is only 18 years old - and because of its incredible growth cycles may have been less vigilante in that area than it should have been. In this case the good (helping these companies - that really do not have the resources, time or expertise to overcome or improve on their problems) far outways the bad.
Thankes,
Slambo8
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