You have the look! (Of a sucker.)

Most people recognize the warped priorities of parents who obsessively enter their children in child beauty pageants like Toddlers and Tiaras. As creepy as the pageants promoters are, there is nothing misleading about what they offer parents in exchange for their entry fees: the chance to strut their child around a hotel ballroom trying to win oversized trophies.

But, as your children get older, you may be confronted by a more dubious group of charlatans, who appear less pathetic than the child pageant promoters, but who use outright fraud get you to part with your money. Those swindlers are found in the swelling ranks of talent agents, scouts, schools and photographers involved in the teen modeling industry. Their calling card is often an invitation for your child to take part in a modeling convention sponsored by an organization like the IMTA.

Years ago the New York Post exposed the International Modeling and Talent Association’s ‘conventions’ as well produced events designed to separate aspiring performers and models from their money – thousands and thousands of dollars in many cases. According to media reports, local talent and modeling agencies dupe parents into forking over money for classes to get ready for IMTA conventions with the promise that their children will be scouted by big-time agents. They point parents to the fancy IMTA web site and brag about a handful of stars who attended an IMTA event.  (Note well those stars probably have not endorsed the IMTA and nor do they have anything to do with it now.) The reality is all your child is likely to get out of a convention is a very expensive vacation and the chance to pretend to be an actor or model in front of a bunch of adults who are pretending to be industry titans.

A variation on the convention gimmicks are ‘open call’ auditions and model searches advertising on the radio in New England lately. The ads grab your attention by mentioning Disney stars (even though Disney has nothing to do with the events) and urge you to call to reserve a time for your child to meet with a talent agent.  Guess what? The agent is going to love your child and promise you his or her ‘look’ is just what Hollywood is looking for. Some bottom feeders in the industry may even approach you or your child in a mall with the same hollow promise. Trust me though, the only potential the agents see is the potential to squeeze money out of you for photos, coaching and talent classes.

My advice is:

• Run away from any agency that takes part in IMTA events.
• Be leery of similar events by the Modeling Association of America International (MAAI), IPOP competitions, Millie Lewis Actors, Models & Talent Competitions (AMTC), and International Talent Showcases (ITS).
• Read about common modeling and acting scams at this Federal Trade Commission web site or this Better Business Bureau page.

Salaried employee? Management? Supervisor? You may still be entitled to overtime pay because federal and state law, not the title your boss gives you, determine who gets overtime and who does not.

 The Law

With certain limited exceptions, the federal Fair Labor Standards Act states employees who work more than 40 hours in a week must be paid for those extra hours at a rate not less than time and one-half their regular rate. They have to be paid in money, not with ‘comp time.’ However, if an employer can prove that an employee fits into one of the limited exemptions spelled out in the Act, or similar state laws, that employee is not entitled to overtime. The burden is on the employer to prove the employee is exempt.

The Exceptions

The Act became law in 1938 but certain industries have convinced Congress to exempt them from its various provisions. It is therefore littered with odd-ball exemptions – including one for some auto parts clerks and one for some radio announcers – that makes it impossible to say everyone is entitled to overtime.

The odd-ball exemptions aside, determining who is exempt from the Act’s overtime requirements must be done on a case-by-case basis. (So two people can hold the same title but only one might be exempt.) For employees to be exempt, their employer must generally prove the employees:

1. Earn at least $455 per week.

2. Are paid on a salary basis. That means they get paid the same every week they do any work no matter how many hours they actually put in during that week. Their wages cannot be reduced if they cut out early to go to a doctor’s appointment, or a child’s soccer game, or even if the business is closed because of bad weather. It also means their wages cannot be reduced based on how well they did their job that week.

3. Pass the Duties Test meaning they perform certain executive, administrative, professional, outside sales, orcomputer professional tasks specified in the Act.

If the employer cannot prove all three things, and the employees earn less than $100,000 per year, the employees are usually entitled to overtime.

The Duties Test

It is almost impossible for blue collar workers to pass the Duties Test. On the other hand, professors, professionally licensed engineers, certified public accountants, doctors and lawyers rarely flunk the exam because they are deemed professionals. Most legal fights involve people who fall between the two extremes into the executive and administrative categories.

To be exempt executives, the employees’ primary duty must be managing a business or department, they must supervise at least two people, and they must have authority over hiring, firing, and promoting people. Most shift managers, assistant managers and supervisors don’t have that kind of authority and they therefore will flunk the Duties Test and be entitled to overtime pay.

To be exempt administrators, the employees cannot be doing manual labor and their primary duty must include exercising “discretion and independent judgment with respect to matters of significance.” That means secretaries and administrative assistants will not pass and they must be paid overtime. Similarly, people who order office supplies and make other minor decisions for the business will not be exempt.

There are reams of regulations and court decisions dealing with the Duties Test so you may need an attorney to help determine whether you are exempt.

Your Rights

As an employee, you can sue and recover double the amount of overtime pay your company cheated you out of in the prior two or three years. On top of that, your company will have to pay your legal fees if you win in court. If you do not want to sue, you can also file a complaint with the Department of Labor but it rarely gets involved in individual cases.

If you own a business and want to make sure you are complying with the law, you can check the Department of Labor’s on-line eLaw Advisor. Then check with your state department of labor because state laws are sometimes stricter than the FLSA.

Reprinted from www.GoLocalProv.com article by John Longo

Rhode Island False Claims Act

GoLocalProv recently published John Longo’s article explaining the False Claims Act and how cheating-bicyclist-turned-whistleblower Floyd Landis may receive millions of dollars because of it.

The Act is a Civil War-era law Congress passed to fight fraud by government contractors. The Act requires anyone caught collecting money from the government based on a false claim to repay up to three times the amount they fraudulently obtained. To help uncover fraud, the Act contains qui tam provisions that allow individual whistleblowers to bring lawsuits against people who defraud the government and then rewards them by letting them keep15% – 25% of the money they recover for the government.

Reporting Fraud on RI & MA Governments

Rhode Island and Massachusetts have false claims laws that are very similar to the federal Act and both require the whistleblower to actually file a lawsuit before they can earn a commission. The Rhode Island law rewards whistleblowers with 15% – 30% of whatever the state recovers; the Massachusetts law gives them 10% – 30%.

Reporting Tax Cheats & SEC Fraud

Whistleblowers in False Claims Act cases must actually file a lawsuit to earn their cut but the IRS and the Securities and Exchange Commission makes it even easier for tipsters to earn money for their information. The IRS rewards people who simply turn in big tax cheats with 15% – 30% of whatever it collects and it lets them do it anonymously; in October it gave a whistleblower $38 million. (But think twice before turning in your neighbor because the IRS only pays if your tip results in it collecting at least $2 million.) Similarly, the SEC now gives whistleblowers 10% – 30% of any fine over $1 million it collects based on their tips.

Citadel recently helped a client get a full refund after they accused a used car dealer of failing to honor a written warranty.

RI and MA law protect consumers who purchase used cars sold "as-is"

When buyers of used cars experience mechanical problems with their cars, dealers will often assert that the car was sold “as-is” or the repairs are not covered by the warranty.  They often have a piece of paper signed by the buyer to back them up. But selling a car “as-is” is not a license to lie, cheat and steal from consumers.

In Rhode Island, even if the sale was “as-is,” if you buy a used car with less than 100,000 miles from a dealer, the dealer must give you a written warranty covering the:

1. Engine, which captures all lubricated parts, water pump, fuel pump, manifolds, engine block, cylinder head, rotary engine housings, and flywheel
2. Transmission, including the transmission case, internal parts, and the torque converter
3. Drive axle, covering the front and rear drive axle housings and internal parts, axle shafts, propeller shafts, and universal joints
4. Brakes from the master cylinder to the vacuum assist booster, wheel cylinders, hydraulic lines and fittings, to the disc brake calipers
5. Radiator
6. Steering assembly, starting from the steering gear housing and all internal parts to the power steering pump, valve body, piston, and rack
7. Alternator, generator, starter, and ignition system, excluding the battery

If the car has less than 36,000 miles, the warranty must be for 60 days or 3,000 miles, whichever comes first. If the car has between 36,000 and 100,000 miles, the warranty must be good for 30 days or 1,000 miles, whichever comes first.

In Massachusetts, the law is even more consumer-friendly. Dealers must give a written warranty for cars with up to 125,000 miles that is good for 90 days or 3,750 miles, whichever comes first. If the dealer fails to honor the warranty, you may be able to sue under MGL 93A, the Massachusetts Consumer Protection Act and recover up to 3 times the damages you suffered along with all your attorney fees.

If you are concerned about a used car purchase, call me at Citadel Consumer Litigation to discuss your specific situation. The office is conveniently located 10 minutes from Warwick, RI and just 45 minutes from Worcester, MA.

For More Information:

For more details about Rhode Island law, read the Rhode Island Used Car Warranty requirements.

If in Massachusetts, read the Massachusetts Used Car Warranty requirements and  the Massachusetts Consumer Protection Act 93A.

Dealing with a Modeling Agency? Watch Your Wallet!

The New York Post exposed the International Modeling and Talent Association’s “conventions” as well produced events designed to separate aspiring performers and models from their money – thousands and thousands of dollars in many cases.

According to media reports, local talent and modeling agencies dupe parents into forking over money for classes to get ready for IMTA conventions with the promise that their children will be scouted by big-time agents. They point parents to the fancy IMTA web site and brag about a handful of stars like Ashton Kutcher, Katie Holmes and Jessica Biel, who attended an IMTA event – like the upcoming one in New York City.  (Note well that none of those stars endorse the IMTA and they do not have anything to do with it now.) The reality is all a child is likely to get out of a convention is a very expensive vacation and the chance to pretend to be an actor or model in front of a bunch of adults who are pretending to be industry titans.

If an agency ‘selects’ you to attend the IMTA, it probably just means they think they can squeeze some money out of you – it has nothing to do with your looks, talent or ability.

My advice is:

• Run away from any agency that takes part in an IMTA event.
• Be leery of similar events by the Modeling Association of America International (MAAI), IPOP competitions, Millie Lewis Actors, Models & Talent Competitions (AMTC), and International Talent Showcases (ITS).
• Read about common modeling and acting scams at this Federal Trade Commission web site.

These two modeling agencies in Massachusetts and Rhode Island are associated with the IMTA or the ITS:

Karon Shea Model Management or Central Massachusetts Dance Academy in Worcester, MA.

Rhode Island Modeling Agency in East Providence, RI.

Call from 1-866-254-7556?

If you receive a call from Eastern Capital, at 1-866-254-7556, be very careful. I recommend you a) ask them for their mailing address, b) take detailed notes about what they say, and c) that you talk to a lawyer familiar with the federal Fair Debt Collection Practices Act (FDCPA) before you send them any money.

It is very easy for scam artists to buy lists of people who are in debt.  The criminals then call and try to scare them into paying money they do not owe or that the fraudster has no right to collect.

Here are some ways to protect yourself when dealing with debt collectors:

• NEVER wire them money.
• NEVER allow them to withdraw money right out of your bank account.
• Always ask them for a mailing address.
• Always ask them to mail, not fax or e-mail, you proof you owe the debt.
• After you receive the proof in the mail, mail them a Bank Check or US Postal Service Money Order.

Eastern Capital Debt Collectors

I do not know if Eastern Capital is a scam. But I do know that they are not licensed to collect debts in Rhode Island even though they tried to collect one from a person in Warwick, Rhode Island. They used the phone number (866) 254-7556.  They may also be calling people in Fall River or New Bedford, Massachusetts.

Learn More

Read about fraudulent debt collectors here and about your rights under the FDCPA here

Fight Back

If you think a debt collector tried to pull a fast one on you, file a complaint here with the Federal Trade Commission and contact an attorney who handles consumer cases in your area.

ABC News recently ran this story exposing a common car dealer scam:  sending a buyer home with a car they think they bought then calling them back a few days later claiming the financing fell through and they have to pay more.

"Trust us, you don't need a lawyer."

John Considine noticed a $10 charge on his Verizon bill he did not authorize – not a lot of money to John and certainly not enough to justify hiring a lawyer over.

But Verizon put similarly questionable charges on 480,000 other customers’ bills.  That added up to lots and lots of money for Verizon. (Verizon got caught cheating its customers in a similar scam last year and had to repay more than $90 million.)

Until April, companies that cheated lots of people like John out of a little money each often got caught when their victims banded together, got a lawyer and brought a class action lawsuit. Lawyers were willing to take the cases on a contingency fee.  But in the AT&T v Conception case, the US Supreme Court held companies could keep consumer suits out of court and in arbitration where class action cases are banned.  As a result, victims of small-dollar frauds are finding it very hard to get lawyers to help them – lawyers will take the cases when the most they can recover is 1/3 of $10.  So the big corporate cheaters have effectively stolen their victims’ money and then their lawyers.

“The wisdom of our sages and the blood of our heroes has been devoted to the attainment of trial by jury. It should be the creed of our political faith.”         

Thomas Jefferson First Inaugural Address 1801

Fight Back!

If you agree with Thomas Jefferson, and think citizens should be able to hold corporations responsible in court when they break the law, take a minute to sign this petition or get involved with Fair Arbitration Now.

PBS recently ran this story on unscrupulous companies preying on military retirees in financial trouble. The companies promise the desperate retirees a quick pile of cash in exchange for the retirees giving them their future pension payments. The companies sometimes call the arrangement a pension buyout. What it really is is a very bad deal that often end up costing the retirees thousands of dollars in fees and leaves them worse off in the long run.

Watch the full episode. See more Need To Know.

You can read these victims’ full story here.

Unfortunately, companies have been fleecing military veterans out of their pensions like this for years as this 2004 story in the New York Times illustrates.  Despite their patriotic sales pitches, the ‘help’ they are offering is designed to make them lots of money; not benefit veterans.

In general, anyone overwhelmed by debt should get advices from a not-for-profit debt counseling service that has a physical office in your area (not one you can only deal with over the internet) and from an experienced bankruptcy attorney.  Talking to a bankruptcy attorney does not mean you are going to file bankruptcy – it just means you are smart enough to want to understand all your options.  For help finding a counselor, go here. For help finding an attorney, go here.

So if  C & A Financial Programs, or Veterans First Financial Services, contacts you be very, very, careful.  And if Structured Investments Co., or U.S. Pension Funding, or Retired Military Financial Services, contacts you, be especially careful because, according to California State Corporations Commissioner, one of the principals in those companies has been arrested and convicted of bank fraud and another was sanctioned in another fraud case. Contact Susan Carroll, on Tipping Rock in East Greenwich, RI, for more information about Citadel.