Thursday, April 21, 2011

When is a job not a job...when it's a scam...you've been warned!

Federal agencies are targeting a number of scam operations that they believe prey on jobless Americans' desperation by offering them work at home schemes, access to supposedly hidden job listings and other too-good-to-be-true opportunities that require significant costs and provide little return.

The Federal Trade Commission (FTC), which has the authority to shut down business operations in a company it believes is using deceptive practices, has already done so at about a dozen companies, according to the Washington Post. The Justice Department, the Postal Inspection Service and various state law enforcement agencies have also participated in the year-long sweep, named "Operation Empty Promises." During that time, the Justice Department has won 48 cases regarding job scams, the Postal Inspection Service brought seven civil actions and state authorities investigated 28 cases, according to the news source.

Scams can actually begin with the best of intentions. A startup with little seed money will still need various levels of expert workers to create a viable business venture. The problem begins with promises. As an example, you're hired into an IT position that includes weekly wage guarantees. No commission and is not under the auspices of Independent Contractor. 
So we are happier than pigs in sh*# at this point. Payday comes along and we are informed, gosh we don't quite have the money now but all our Angel and VC talks are looking great for funding. If you just give us 2 more weeks, we will pay you for sure.....AND throw in a bonus for being so patient.
2 Weeks later we walk through the CEO's door and inquire as to our pending VC windfall. Oh my gosh you will never guess what happened? It fell through (because the CEO is marginal at best and due diligence is a deal killer. But guess what folks? Because you're hanging in there like troopers, you're getting a raise and bonus for your trouble. 
An obvious point is management knows without question that the company will only secure funds through passing the requisite gauntlet that is due diligence.
This dubious facade continues for some time. And..at this point the car and house are most likely to end up fond memories. There was a time when integrity meant something. Back to our story...
It's now 10 months later. You've been promised the world. You have worked your way up to the corporate infrastructure. You've been promised the first born of your choice. Hell, you're making 100,000.00 on paper. Yet where is it? 
And you know managements response"Don't let the door hit you in the ass on the way out". So now Mr. CEO has secured a whopping 3,300 for payroll, cleaning, etc. Even with a contract, If the company can't pay you, you're in a smaller boat and it's sinking fast.
The company knows quite well they will not have funds to pay you for your time with them. They now owe you around 90,000.00. Kiss it goodbye. The company never gets funded and you next visit  the authorities, i.e. Labor Commission to file another complaint. 
What is our recourse? Education, research, and a much better understanding of contract law.
Our tech has made a total of less the 2000.00 in 1 year. Sales people averages were negligible. 
The company is called MapWide, Inc. (mapwide.com) and integrity alone should dissuade too much future business. They will get what is coming to them. In the meantime, scores of people have lost their retirement and or life savings. Tip of the day: AVOID this firm like the plague. Unless volunteering is your thing.
 
 
Article authored and researched by Chris Borowski; former CIO at MapWide, Inc.


Author's Note: I'm not bitter as this was a genuine learning experience for which I've gleaned invaluable insight into how not to run a company. My sincere appreciation to the good Doctor for teaching me what business needs to be a success. A muzzle makes a great start. Enjoy your pending education of California's Labor Employee protective services. See you there! 

1 comment:

  1. Very poignant and correct on all levels!!! Too many people have been hurt through the total incompetence of Dr. Said ( founder/CEO MapWide).

    ReplyDelete

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