ED Magedson – Founder
BB&T Deborah Conrad Fraud, Potential Crminal ActivityBaltimore, MD baltimore, Maryland United States of America
Dear Mr. King,
As the President of BB&T, I felt a responsibility to inform you of certain facts regarding the actions of one of your bank officers (specifically Deborah Conrad). Please know I have been banking personally and professionally with BB&T for over a decade. During that time I have enjoyed the honesty, integrity and professionalism your team has always displayed. It was these characteristics that kept us with the bank for so long. Our banker, John Murkey has always been a gentlemen and wonderful business colleague. The relationship was mutual and always based on trust. In fact, our company was highlighted as your customer of the year in one of your advertising campaigns.
The purpose of this letter is to inform you of the unacceptable, fraudulent and potentially criminal behavior of one of your bank officers. Deborah Conrad lied on several occasions to me personally, other shareholders and the ComputerTraining.edu Management team.
I thought you might like a few of the facts.
1. ComputerTraining.edu is required by each state to establish bonds for tuition refunds. Your bank officer, Deborah Conrad, deliberately took approximately $400,000 of these funds by intentionally misleading ComputerTraining.edus President and CFO that these would be used to teach out our classes. As soon as the State of Maryland released the funds, she confiscated them. We have already notified the Maryland Higher Education Commission of her behavior and are also informing the Maryland Attorney Generals office. To deliberately mislead a bank customer/LICENSED SCHOOL and defraud the State of Maryland of $400,000 that was set aside for students is a problem.
2. When we were notified on Christmas Eve that our line of credit was revoked, Deborah Conrad insisted we secure all of our assets (BB&T has first lien position). We have several emails that show her level of interest in the equipment we had at each campus. She instructed us to lock all of our locations and secure over 1,500 computers. This included locking out our employees. She said management would need to go around and supervise anyone coming back to get their personal belongings. If there was any vandalism ComputerTraining.com was going to be held responsible. I thought it was odd she asked five separate times to write an email explaining how we were going to do all of this. Thank god we never wrote the email.
3. By revoking our line of credit, the company had no funds to operate. To make matters worse, Deborah Conrad informed me that the $2.8 million we had in accounts receivable would be confiscated by the bank to pay down our debt. We could not use the funds to teach out students or continue operations. Deborah Conrad claims the bank didnt close the company but think about it. Why else would we close? We spent 17 years of their lives building the school.
4. In addition to the accounts receivable, the company had $2.8 million set aside in restricted cash. Restricted cash was part of our bonding requirements and would have been refunded to the company had we taught out the students we still had in class. By revoking our line, we lost any opportunity to teach out the classes and use these funds to pay down business debt.
5. Another event that goes to show the lack of character Deborah Conrad displays is when she scheduled a meeting with our entire management team after the company was closed. When the ComputerTraining.edu management team showed up she had the banks counsel with her. At no time did Deborah Conrad inform us that the counsel was going to be present. To make matters worse, she introduced counsel as Oh, this David Fontana he works with the bank. She deliberately misrepresented who he was and why he was there. Deborah was shocked to see that as a loan guarantor I flew in from Florida to attend the meeting. I walked in last. She scheduled the meeting with our Companys CEO and CFO and assumed I wasnt going to attend. When I walked in and asked specifically who this person was and why he was there she stumbled around trying to explain that we should have known counsel was coming because she had ccd him on the email she sent to Chuck Lang (our president). We ended up walking out of the meeting. Her behavior was despicable. We are filing a complaint with the Maryland bar regarding David Fontanas actions (he is your attorney). Mr. King, if you dont believe me ask your VP Ed Barker. Ive known Ed for 10 years. He was there for the event and I trust he will tell you the truth.
6. During this time, Deborah Conrad also spoke with Sallie Mae and told them she was working with us. The plan was to sell the company to another accredited institution over the next 6 months and we needed BB&T to cooperate through the process. Sallie Mae was shocked by BB&Ts complete reversal. After speaking with Deborah, they were under the impression we were all moving forward (like the rest of us).
7. Only 30 days earlier, we engaged the BB&T Capital Markets Group to sell the company. They put a valuation on the company of somewhere between $10-15 million. Since we had 25 campuses that were all fully accredited, our company was of value to online and accredited schools looking to expand their offering. Again, this makes no sense considering that BB&T would have profited from this transaction.
8. The $2.8 million in receivables and $2.8 million in restricted cash would have given us $5.6 million to teach out all of the classes. The actual cost to do so was only $2 million. Thats $3.6 that BB&T would have gotten back AFTER all of the students were taught out. Let me ask you why would the company close the doors? The company would have been $3.6 million less in debt to BB&T by teaching out the classes.
Deborah Conrad deliberately caused this problem. She didnt take the time to listen to the facts. She made poor decisions that has caused a huge mess. At the end of the day I think she is simply evil.
Deborah Conrads story does not add up. I am offering to have an independent agency conduct a polygraph test. I think we should ask Deborah Conrad if she is willing to do the same.
As the President of BB&T, I thought you might want to know what some of your people are really doing. I find it hard to believe you would want your employees behaving this way. I stand nothing to gain by any of this. Deborah Conrads actions has already ruined our reputation. Deborah Conrad said she was working with us for months. The first time we met was Thanksgiving week. 30 days later on Christmas eve she closed our doors. The defamation suit the bank filed is welcomed by our team. You will quickly find out that we have plenty of documentation and witnesses as to what I am saying in this letter. What she is saying doesnt even make sense. Its stupid. We were all willing to go our own ways and move on. Once again, BB&T is making a terrible decision.
This is going to be a public relations nightmare for the bank. As far as not writing any news agencies, or publishing the truth by using lawyers to compound BB&Ts lies it wont work. I will continue writing news agencies, spend time on television reports whatever until the truth is brought out. Remember, you have put me in this position.
Again, I was willing to move on and try to rebuild my familys life. Let me state for the record Deborah Conrad is a liar, fraud and potential criminal. Sue me. Its true. She is the one who made the decision to steal from our students. She is the one who made the decision to take funds from the State of Maryland.
ComputerTraining.edu had been in business for 17 years. We were the largest and most successful Microsoft IT Academy in the country. Our thousands of graduates enjoyed an 83% placement rate within 90 days of graduation. All of our campuses were nationally accredited. Our past history will prove we ALWAYS TAUGHT OUT OUR STUDENTS when closing a campus.
Ironically, we lost $3.6 million. Or should I say BB&T lost $3.6 by not teaching out the classes. When this is all over and the dust settles Deborah Conrad wont be able to get a job at any bank. Once the facts come out in this case not only will she be embarrassed but so will the bank. Needless to say everyone is extremely disappointed.
Unfortunately, your employee has put us in a situation where we have to respond. People are posting pictures of my children on websites due to her negligence. Everyone thinks we took the students money.
Why dont you tell the truth?
I have not taken students money
I took out a $1.5 million mortgage last summer to put funds into the company
There were $5.6 million in funds to teach out the classes available Deborah Conrad lied.
There were funds to make payroll Deborah Conrad lied.
And best part is. WE CAN PROVE ALL OF THIS! ComputerTraining.edu
This report was posted on Ripoff Report on 04/08/2010 03:08 PM and is a permanent record located here: http://www.ripoffreport.com/reports/bbt-deborah-conrad-fraud-potential-crminal-activity/baltimore-maryland-/banksbb-t-deborah-conradbb-t-deborah-conrad-fraud-pot-3fd38htm-591024. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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