The Riley McDowell Group The Kirby Company Employment Scam and Consumer Fraud Fairborn, Ohio

I answered an ad similar to the attached.  At interview I was skeptical about the salary for a normally commission only position. 
I was assured the salary was guaranteed; even without one sale.  Shay (the person who interviewed me) said that as long as we met the minimum number of demos; and continued that if you show up every day it is not possible to not get in the 12 demos.  Further stating that the crew leader in charge would not get paid if we didnt; all we have to do is show up on time to receive the salary. 

The key to this deception is the description of the demo that is not learned until later.  After several days of employ a demo is depicted as a full factory demo.  Which MUST include the 5 musts.  Which is not realistic; I actually sold two
(2) machines in my first week without a full factory demo. 

The first  week of my employ I was on time everyday (varying from 9:00-10:00 am and worked all hours asked of me, not returning till at least 8:30 pm everyday including sat.)  (One evening until 11:30 pm)

I was constantly reassured during that week that my requirements would be met; however my demos did not appear on the daily sales board.  (This is also crucial to my complaint; the reason they did not put all of my demos on the board is to
maintain their assertion that 1 out of 3 demos ends in a sale.  In actuality I performed 9 demos before my first sale)  They picked and chose which demo to give credit for; and later we were condemned for doing demos in varmint homes. (A varmint is a consumer that is obviously not a viable buyer, or one that cannot spend 2500 on a vacuum.) And told we were not getting credit for varmint demos, and were scolded for wasting our time in those homes.

Another point of contention is the amount of commission paid versus promised.  Basically the agreement was that I would receive the minimum salary of $450 or the amount of my commissions if over the base salary.  The commissions would be figured by this simple equation: 50% of any amount over $1000.  Over and over the example was used :   sale price 2489.00  (although the price of the vacuum is clearly depicted on the box as $1299- which I was instructed to hide from the consumer) $1489 over $1000 divided by 2 (split with the crew leader) $744.50.  So that is the potential commission off a
single sale.  More deceitful examples were offered similar to the following. 
Sale amount $1900 = $450 commission. 
I would not learn until my next to last day of employ that my commission on a $1900 sale would be $88.  Due to
what they claim as financing costs.

Then they fully explain the effect that financing has on our commissions; but at no time previously was that mentioned AT ALL.  In hindsight the entire scam works as follows.  Per their examples and verbiage:

        
Average sale price $1500

        
80% of vacuums are financed

Actual commission from a vacuum my wife sold for $1400 = $104 This information was never shared; only after extracted from crew leader and threat of not returning.  This sale was on what they call A loan (very good credit).  Anything less than A would negate the commission entirely.  My first sale was an A Loan; I am unaware of the final sale price but was told I would receive nothing.  The crew leader somehow talked the buyer into giving me $50 cash the night of the sale  I dont know what really happened, I just know that they bought it and I received $50 cash that night.

On the form I stated the amount of hours to be 117 and the amount to be 906.75.  I arrived at that amount according to the following

        
Wed 12/5/12  -  1 hour orientation

        
Thur 12/6/12 4 hours training (really more like 6 but scheduled for 4)

        
Fri    12/7/12 4 hours training (really more like 6 but scheduled for 4)

        
Sun 12/9/12  -  5 hours canvassing and assisting with demos

        
Mon 12/10/12  -  12 hours canvassing and demonstrating

        
Tue  12/11/12  -  12 hours canvassing and demonstrating

        
Wed 12/12/12  -  15 hours canvassing and demonstrating

        
Thur 12/13/12  -  13 hours canvassing and demonstrating

        
Fri   12/14/12  -  13 hours canvassing and demonstrating

        
Sat 12/15/12  -  14 hours canvassing and demonstrating

        
Mon 12/17/12  -  12 hours canvassing and demonstrating

        
Tue 12/18/12  -  12 hours canvassing and demonstrating

In a demand letter that I hand delivered to Mr. Pat Riley on Wednesday the 19th, (also sent certified return receipt on the same day and signed for on Thursday the 20th) I stated that we (David & Sherry Thompson) would settle for $1500 dollars if paid on Friday the 21st.  (I have included a copy for your review)  On Friday afternoon at approximately 12:00 pm
I followed up with a phone call to Mr. Riley. 
I simply asked when he answered the phone, can I come pick up a check?  Or do I need to contact the labor board?.  He replied Actually I have turned this over to my attorney and proceeded to give me a number to call.  I have made several attempts to contact that attorney and have left messages describing my actions in lieu of communication with him and or Mr. Riley.

I have since filed a complaint with the BBB, the Secretary of State, and written to the Kirby Corp.  I also plan to post YouTube videos detailing some of the unethical and or deceitful manners in which we were instructed to mimic.  I have also filed form SS-8 with the IRS asserting that we were not independent contractors but under their employ.

I have duplicated this document in the complaint filed by my wife.  The only relevant difference is she did not work on Sunday the 9th.

I want to make it clear we have not received any money from RMG.  Not anything toward the salary promised or the (3) sales my wife and I made. 
(Other than the $50 Tim Sparks gave me the night of my first sale; directly from the consumers wallet to my hand)

 

Dave and Sherry Thompson

 David Thompson

201 S Central

Fairborn OH 45324

December 19, 2012

Pat Riley

President

Riley McDowell Group

418 W Main St

Fairborn OH 45324

Dear Mr. Riley:

It is with much regret that I am forced to type this letter .

To avoid the actions specified herein we urge you to deliver payment of $1500.00 no later than 5:00 PM on Friday 12/21/2012 in the hands of myself or my wife.  At such time we will be willing to sign a release form (or any such reasonable form that indicates no further action will be brought by us.)   The content of this letter in no way indicates a complete description of violations or deceptive practices; rather a brief overview intended to explain the rationale behind our demand.

If you want to discuss special arrangements for payment, please contact us at (480) 584-8935.

In an effort to resolve this matter expediently, I have hand delivered a copy of this letter to your place of business; but please expect a copy sent via USPS: certified return receipt.  It is my hope that this matter will be disposed of prior to you having received the certified copy.

Failure to make payment in full in the time allotted will result in the following:

1.     
Legal representation will be sought

2.     
We will pursue action through ODJFS for nonpayment of wages including overtime

3.     
We will file form SS-8 with the IRS to determine contractor/employee status

4.     
We will contact current and former dealers and advise them of their rights

5.     
We will file complaints with the BBB regarding employment and business practice

6.     
We will forward detailed information regarding employment and business practice to Kirby

7.     
We will post detailed information on social media outlets

8.     
We will contact the Ohio Secretary of State, and the FCC regarding your advertising and business practices

To assist you in your decision please consult:

        
http://ohioline.osu.edu/cd-fact/1179.html

        
http://jfs.ohio.gov/ouc/uctax/comnfaq.stm

        
http://www.irs.gov/pub/irs-pdf/fss8.pdf

Please be advised that should you decide to ignore this demand; the amount specified herein will not suffice should further action be necessary.

Facts in support of demand:  (details and pertinence of each line item will be avail should further action be necessary)

1.     
Promise of salary

2.     
Bait and switch offer of sign on bonus for merchandise

3.     
Required or Mandatory presence

4.     
Quantity of hours worked or under the control of RMG or representative

5.     
Deceptive instruction

6.     
Deceptive income representations

7.     
Instructions offered in support of deceitful business practices

8.     
Ambiguous demo descriptions/requirements

9.     
We are not in receipt of any executed documents regarding our employ

10.  Documents presented for execution were entirely illegible

11.  Inability to work Sunday in an effort to accomplish said salary requirements although desirous

Sincerely,

David Thompson

Enclosures

Pictures (3)