Yellow Pages Sales People Are Liars.

April 14, 2011

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Not all.

Just some yellow pages sales people are crooked.

Just got off another lengthy phone call on this particular subject…

Here we go again. Read the contract. Please people!

Help me… help you!

It never ceases to amaze me how many folks call me, post on my site, or submit a request to a business lawyer client of mine on subjects related to Yellow Pages sales fraud, contract issues, ad errors, or just straightup lies or promises to follow-up that never take place. Do the yellow pages have a client trouble ticket support system? 

If it ain’t in the contract, it ain’t the truth and it didn’t/won’t happen.

Do you think the “my Sales Rep said this and that” excuse will hold up in court? Do you even read the papers you signed? Do you have arbitration? They are henchmen. They have always had a sharp axe over your head to renew, sell you based on some bullshit “your competitor is doing it” concept while my own surveys said that my former colleagues at Verizon Yellow Pages own words were, “We never use the yellow pages, except to find those in a competitors book and not ours to sell to.”

The job of many Yellow Pages workers was to design ads, market products, manage sales results, or build crappy looking websites. The job of the sales rep was to move to the next customer.

Rep comes back in the office after renewals on 3 customers (corporate quota was 5 per per day once, which is now 1) and the first thing his boss asks is “did you sell a non-ad?” (Non-Advertiser) It was never really about keeping clients. It was a monopoly. The telcos had a monopoly which became a duopoly (more books… more costs… higher prices.)

A business is always limited by resources, thus they will always have a budget. This is common sense…. but I guess so is reading a contract put in front of you by a potential lier.

Just wanted to add that I was and still am one of the good guys… “an ethicical professional who practices moral capitalism.”

Unlike the yellow pages, I am not corporate and don’t have your business guaranteed for 12 months…. or more if I used some tricks in a contract. Or some legal and collections team dedicated to enforcing the.contract, regardless of what it does to reputation or client churn.


Look here John, sorry to tell you this, but they lied to you.

November 18, 2010

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“What a tangled web we weave, when first we practice to lie and deceive…”

Just got back from the Dallas/Fort Worth Search Marketing Association http://www.DFWSEM.org meeting. You won’t believe it but the attendance was over 150 people tonight! The topic was the State of Search, featuring a gentleman from a Search Engine News Website and with two wonderful young ladies from Google and Bing. Very exciting stuff for search geeks like myself.

So… however that quote goes, has it never been more true  than in the advertising sales business.

You ever go out and tell a client what they are really getting from the service you provide? If you do it with an absolute clear conscience, you know, kinda like the feeling of helping someone down on his or her luck, wouldn’t you think you and the company you keep should be rewarded with this clients future business? Companies that can do this well have a great product or service to offer. Companies, like those that report phone book usage is down from 25% to now 11%, but then claim that they want to “opt themselves” out of paying a State mandated (so to speak) “tax” that requires them to produce a product that consumers don’t want or use, yet they then want to sue for the “freedom of speech” to saturate homes with unwanted industry waste… is that not pot meet kettle or what? The business practices of what was once an honest profession are disturbing. It is not all publishers. The problem is really all publishers combined. Take for instance my zip code, if you visit the Yellow Pages Opt Out site you will see that my home receives 4 different yellow pages company products, which equates to 6 books a year worth of collective waste. I wonder how much useful wood chips are being wasted? It is not like they are keeping legal citizens on payroll distributing the waste anymore? Have we officially handed phone book distribution responsibilities to illegal immigrants? I guess if the garbage man who doesn’t speak a lick of English can remove the phonebook trash for free, at no cost to the publishers, I am sure it won’t hurt for his Wife to keep busy littering our porches with them? Probably not the intent of the design behind the recycle symbol circle on your phonebook, but it sorts takes on a whole new meaning huh?

John Paulson is a smart man for booting SuperMedia CEO Scott Klein, and his two EVPs out of the company. Time to make room for DexOne management. DexOne folks didn’t subscribe to the Verizon/Idearc way of cheating. With the bankruptcy of Idearc, FairPoint Communications, and Hawaiian Telecom, Verizon should be held liable for unloading massive amounts of debt free and clear after two years outside of the nest, especially considering the knowledge of mobile smart phone advancements and patents. Considering the timing of the bankruptcy, one has to question the integrity of the investors and executives, whom did an excellent job of raising executive salaries while demanding subordinates take massive paycuts and benefit reductions. I guess we should ask Congress to do the same too? It is not like the 545 folks that run our federal government ever get fired for doing a crummy job?

What does this have to do with Google?

Product advancements in search come from ideas. Problem solvers combined with engineers and designers who create amazing solutions and verticals for just about any consumer need. The best that the Worlds first and once most respected “internet technology” companies, the yellow pages industry veterans, could create was an online version of the printed product. Nothing more, nothing less. That was because they, like most other intelligent businesses, understand how to carve a niche. Too bad ethics and technology passed them up. Companies like the one I used to work for are inundated with mid-level sales managers, high quotas, fat profit margins, nepotism, excessive executive compensation, and a lack of focus on change. Just because you are relevant today, doesn’t mean you will be relevant tomorrow.  The YP industry lacked the foresight to see the near future. Even paid search was a rush it to market solution with an inferior product like SMLocal that didn’t incorporate the tools from Google’s UI and AdWords Editor desktop applications. What we got was a cheap investment of the BidCenter tool from the purchase of Inceptor vs true software as a service (SAAS) solutions or platform planned and engineered application, such as those from companies like ReachLocal.com. To build a massive search marketing company you must find a way to embrace a holistic methodology to search and social, stay transparent with cpc/cpa and offer measurement tools and reporting such as Google Analytics.

The next step is to incorporate content strategy, and then after dotting i’s and crossing all the t’s you get to sales. Not sales and then a wonderful and almost preplanned game of hot potato by the outsourced and overworked/understaffed fulfillment department. Beuller? ANYONE want to take some accountability for the clients problems? Your CEO must be on the same page as your head engineer and his team of programmers. This is the side of corporate that deserves investment. Clearly not what Verizon chose to invest in with its Yellow Pages division Verizon Information Services.

Do you know why two terrible companies, or expired business models combined, just make one really bad company or idea?

John Paulson’s Hedge Fund was lied to by yellow pages executives. Now Mr. Paulson’s fund managers are making plans to turn yellow lemons into lemonade by combining the administrative and management expenses of SuperMedia and DexOne. I guess that is what most people hope, just because some monopolizing of the printed yellowbook business would be a good thing for porches everywhere. So the plan is to cut costs, merge resources and expenses, kill white pages, and then sell whatever is left back to investors or bondholders, but not at 40 bucks a share and the thirty some odd dollars per share they shorted the way down…. does this ring a bell folks? Gotta love crony hedge funds as much as crony capitalists right? I guess you deserved to be lied to… that is what you get for backroom deals to rob shareholders on bankruptcies of a dying business model before the companies had the opportunity for fresh and creative leadership to take a shot. Too bad when Verizon Yellow Pages and Idearc Media was spun off of big Verizon that big Verizon didn’t get to keep the crony leadership team from Kathy Heartless…. errr I mean Harless.

Maybe they need to just stop pretending they are so Super and actually do what is needed to become it… invest in something… anything. Just RIF the entire Verizon Management Team and start fresh… or do what Local.com did and buy a company like Octane360 for a basic SEO offering? Heck, you can’t do worse than BidCenter/SMLocal and Business.com. (lol)


The Milgram Experiment in Crony CEO Capitalism, the Commonalities Between Enron and SuperMedia

September 11, 2010

Stop the Stock Scam by Crony Executives at SuperMedia and Verizon

In the early 1960’s Stanley Milgram, a scientist, wanted to uncover what kind of common characteristics existed in evil people. So he set up an experiment with an actor playing an experimental subject and a real experimental test subject. The real subject would ask a question to the subject (the actor) and then if the subject got the question wrong the real test subject would shock the actor with an “electric charge”, so long as the scientist, an authority,would reassure the test subject that what he/she was doing was the right thing. The electric charge was not real, the actor would scream out in pain as the test subject would increase intensity. Approx 50% of the test subjects tested would continue the shock treatment on the subject to the point of death.

This experiment is a classic example of what is wrong with evil corporations and crony executive leaderships. Test subjects or loyal sycophants will do anything, as long as they have the encouragement of the superior or authority figure.

For 10 years I was a participant in an industry that had an Enron style corporate culture. Regardless of what happened to clients, shareholders, and employees not in management, executives would continue to demand people stay the course. Executives, like Scott Klein the CEO of SuperMedia, had zero investment in the company. Employees who understand the business were told to “shut-up” and agree, accept, and fulfill the changes the new CEO was making. Regardless whether or not these changes are in the best interest of shareholders, employees, or the future of the organization.

Being a corporate leader requires the utmost ethical conscience, honesty, and fraud prevention and corporate crime policing.  Whistleblowers are to be respected and given a podium to speak from.

When the SEC began investigating Enron, Ken Lay reaffirmed traders and other employees that he and the company were frauded by “Andy” Fastow, yet the companies auditor Arthur Anderson was busy shredding evidence of wrongdoing. Ken Lay the Enron CEO shifted all responsibility to Andy, traders, the Government, and anyone else besides the executive leadership.

Jeffrey Skilling told employees to “invest your 401k” into Enron stock while he committed fraud. Skilling himself moved his money out of the stock. His Milgram Experiment was to keep influencing employees that what they were doing was right. Keep selling. Employees had faith in leadership. Leadership does not “fall on a knife” when corruption is discovered. When Scott Klein from Idearc met with employees, while being aware of his bankruptcy plans for the company, he assured employees and investors that the spin-off debt and stock arrangements were “strong.”

In Dallas, at a Fuller Drive meeting, Scott Klein the new CEO of Idearc Media reassured employees that the company was financially sound and had cash on the balance sheet few companies had. Instead of going into detail about the companies longterm plans, Scott Klein proceeded to pander to employees his “7 keys to success,”” a presentation better suited to High School kids.

Atleast, we now know how Mr. DeKlein likes his cocktails.

During the rise and fall of Enron, employees and investors were scammed for more than 20 billion. Just the same, Verizon scammed investors with Idearc stock, as well as FairPoint Communications and Hawaiian Telecom spin-offs. The fraud committed by Verizon, Idearc Executives, and SuperMedia’s CEO Scott Klein will be uncovered just like Enron in years to come.

I respect those who blow the whistle to protect the innocent. Those who are not in leadership or positions of influence. I respect the honest worker who gets up, turns on the pot of coffee and heads to work to do good. I respect the Good Guys, not those that put on a super cape and claim “Good Guy” status.

It is wrong to tell investors you have challenges with receivables yet turn around and increase the credit limitations to clients. It is wrong to tell investors good news while hiding the bad. This is manipulation and dishonest.

Milgram’s experiment emphasizes that leadership is ultimately responsible for corporate culture.

Leadership doesn’t get the axe. Take a look at the 545 folks who run this country. Do they get fired? They work for us voters, yet we can’t seem to fire them and they just blame the bad decisions on co-workers or subordinates.

It’s time to put your big boy britches on fellas. Grab your whistles, proxy statements and voting cards….. Make a CHANGE. It is in your hands. When people are crying out in pain, will you continue shocking them? Do you want the blood of the innocent on your hands? What will you do? I suggest it is time to grab and axe and start hacking away at the leadership team. Time for them to get fired!

(btw, I wonder why would an executive commit suicide? Enron’s executives did after the Justice Department began inquiring about illegal activities. Thousands of people faced with crimes go to prison or face social scrutiny, so why are white collar criminals so spineless that they become suicidal?)

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Idearc Corporate Fraud Begins at Sales Culture

December 28, 2009

How quickly times do change.

Kinda crazy, a few years ago when people said the name “Ron Paul,” more times than not,  people probably thought of:

Also crazy is how quickly things can change. The growth of the Tea Party movement signals one of the greatest changes in my life. Not of the personal sort, but from a cultural perspective.  It appears to me, to some extent, that our opinions as consumers , businessmen, parents, teachers, consultants, employees, and citizens have changed towards corporate America, corporate greed. There is a growing movement towards ethical consumerism. Did your corporation donate money to a lobbyist? This might effect your earnings by patriotic American’s who believe in investing in moral and ethical corporations. Not just from the environmental or green sentiment, but also from that of a political sort. Business owners, like everyone else, are also consumers. They choose where they invest advertising dollars.

Who also recieved the email from Google for the $20 Million “Christmas Gift” to Charities?

Unions want to take corporate profits. Wealth redistribution if you asked me. Unions cater to workers, but who really profits in the unions? When a union is no longer non-profit they too become Crony Capitalists.

Aside from the message about “Card Check” at the end, I really believe this video communicates a growing sentiment in America toward Crony Capitalism.

I don’t believe Congress should pass the Employee Free Choice Act, maybe because I am not that big into unions, considering how bad they managed to screw the direction, profits, and innovations of many of America’s best corporations. Many American corporations are misguided my unions. It is often challenging for a business to sustain “LONGTERM” success with union involvement. Such is the case of GM being held back from innovation by its own employee labor union the UAW.  (My mother, TC Adams,  was a union steward in 1997  while working at the GTE Phone Mart in Garland Tx prior to joining GTE Yellow Pages as a sales consultant. ) GTE, then Verizon, then  Idearc, and now SuperMedia has a challenge working with the CWA Union. At Verizon/Idearc, reps in non-union states are compensated less for advertising sales than those in union organized territories. Cutting into corporate profits? Sure. Offering the company guidance from collecting information directly from clients and media consultants then sharing it  with the companies executives and so called product managers to guide the direction of the organization? Heck No!

(American Greed is a great show btw!)

I’ve always felt that I was paid too much  money just to sell Yellow Pages Advertising. Sell an ad. Move on to the next sell. Sell another. Do some paperwork. Move on the next yellow page ad sale. Man! When I was 20 years old I made over $100,000 selling Yellow Pages for Verizon! (And this was without selling “Fake Yellow Pages Ads to Fill a Phone Book.”) I think that was one of the years I earned one of my numerous Verizon Yellow Page Sales President’s Awards from Kathy Harless, the companies CEO. It was a great career. Up until I started becoming tenured in my job and craving to learn more and more about internet marketing.

Once I quickly recognized that the folks actually doing the work, managing the Google Adwords Campaigns and building the websites, got paid significantly less than those that made the big “SELLS,” it only took me a few years to really grasp what a lack of value Verizon Yellow Pages was really offering for online advertising. That’s when I began studying advanced Search Engine Optimization and Internet advertising methods and strategies.

The corporate sales culture had its flaws, but it was nothing like the direction that Idearc Media is headed, with leadership from Idearc CEO Scott Klein and his circle of crony executives.  As if corporate fraud of the personal sort from executives was not bad enough, they also don’t take accountability for the direction of the company. Ask anyone who heard quarterly earnings calls over the past few years.

If folks knew better they would be looking into Kathy Harless and her dream team of women who apparently thought it was wise to spin the company off with such a debt burden. Idearc paid the price to become a self sustaining organization. Verizon sapped the company dry of cash. Huge profits from Verizon Yellow Pages advertising sales went to fund FIOS and Verizon Wireless ventures. You would want to look into the corporate responsibility as well of Ivan Seidenburg and Verizon directors for FairPoint Communications, Hawaiian Telecom, and Idearc Media’s bankruptcies.

“Audit the Fed!”

If you haven’t been following Ron Paul’s latest movement.

After spending 9 years and 3 months in the Corporate jungle of Yellow Pages Sales from the age of 19 to 28, I want to scream out at the top of my lungs

“Audit Idearc!”

“Audit SuperMedia!”

Let’s look at just one thing that needs auditing in Idearc’s Corporate Sales Culture:

How much do Hispanic Reps in Texas earn vs non hispanic reps.Why do Hispanic Reps get paid higher commissions? Why did Hispanic Reps have lower quotas and earn more money since Verizon/Idearc began publishing Spanish Yellow Pages?

“Sell 4 different geography Solutions/SuperDirect mail drops of Spring vs selling 4 seasonal SuperDirect Mail drops of a single geography deck to keep from being charged back and losing commissions, when the clients doesn’t pay. Then disconnect the pre-paid cell phone that you are having someone answer. “

If this is the kind of advice,  Idearc local sales managers and sales reps believe will contribute to the success of the organization, may Idearc not go bankrupt but cease to exist. Idearc rewards sales. Even sales to illegal immigrants who want to start a business and have zero credit or identification. All you need is an address, business name, and a cell phone.

Quiere empezar un negocio?

Idearc does not reward taking care of the client.They do not reward media consultants for expertise beyond getting a signature on a contract to obligate a client for 12 months worth of billing, regardless of Idearc’s contribution to the success and outcome of the client. Idearc’s sales culture, unlike America’s Small Business Advertising Agencies such as this one,  do not reward results. Idearc does not reward sales based on retention or even receivables. The problem with corporate advertising sales is it is just too much about sales and not enough about advertising.

Audit Idearc’s local postcard sales have been made by hispanic reps in El Paso, Texas, and other hispanic markets. How many of the numbers in the advertisements are disconnected or ring to some newly formed paving, carpentry, locksmith, or painting company?

The Spanish phone books are a JOKE. The rates are a joke. The distribution is a joke. The profit margin is a joke. The entire thing stinks.

I don’t want a Spanish phone book at my house. (I need to remind myself to give Tim O’hare, the Mayor of Farmer’s Branch a call about Spanish phone book littering and see if the city councel can put something together to end this sort of environmental waste — I also recall Idearc changing the book’s name during O’Hare’s nationally recognized push to end the Farmers Branch sanctuary city policies towards illegal immigration.) If saturation distribution wasn’t a big enough issue, we get a few english and now spanish books! Apparently Idearc has had run overs, because they sent me two December publications of the Idearc Spanish Yellow Pages.

Idearc’s corporate fraud began when Scott Klein, the companies newly found CEO, incentivized by a $3.2 million home in Highland Park began lying to investors and employees about the state of Idearc’s business and the decline of yellow pages usage and receivables.  I still think Idearc / Super Media’s next CEO or group of executives needs to have experience with “carrying the bag” before they being hired.  I am anxious to see if he actually manages to reform the organization beyond his intense loquacious lip service work.

Most Yellow Pages advertising sales reps are greedy and unrealistic. I would say many of them are dumb, but I might lose a few friends. Seriously, how much is there to understand about an ad in a phone book. They might want to consider automating the process of purchasing yellow pages ads and transition the companies sales focus to more of a marketing/branding and promotion focused business model.

Well, time to get back to work. It takes a serious amount of energy and effort to start a business. Not as easy as buying an ad in the phone book.

I asked my future “local internet advertising boutique business partner” and chief web developer Jeff Swope what he felt makes he and I different from Idearc. (He has had the pleasure of getting an ear full of my soap box grandstanding over the years.)

His response:

We sell advertising, but advertising sales is not what we do. We are a small web Dallas area marketing boutique. We care about the success of our clients. We call our clients weekly and daily with innovative ideas. We believe that local advertising is as much about brand appearance as it is reputation and ethics. We are accountable. We are responsive.

I want to add:  We teach. My passion is to teach others what I know. I enjoy teaching my clients as well as learning from them.

What makes you the best in town is not just being the best but sharing what you know and being willing to spend the time effort and energy to learn more. I don’t have to the the authority for search engine optimization for all American Small Businesses. I just the SEO authority for my clients in Dallas-Fort Worth. My client who is a transmission shop doesn’t need to become the authority on Google for transmission repair in the United States, but just Garland, Plano, Lewisville and Dallas Tx.

Others in this organization might add that we don’t chase clients with contracts or big attorneys. When you have an issue, it is not softened by 4 mid-level managers before it gets to the desk of the CEO. In most cases you deal directly with the CEO. We have a team of pay-per-click campaign managers who don’t own the campaign after it is built. We build it for the client. We have content writers and web developers who utilize the latest innovations in Web 2.0 and content distribution. We don’t own the content or the site we build for the client. They do. If they cease doing business with our firm for any reason we can recommend another agency through the Dallas Fort Worth Search Engine Marketers Association. Benefit to the client is that most experienced developers can work with our existing efforts due to the capabilities of an open-source content management system like Joomla, WordPress, or Drupal.


Another Lawsuit caused by bankrupt yellow pages company Idearc Media

December 1, 2009

from MarketWire:

Retirees Charge Verizon & Idearc With Illegal Pension Switch

Involuntarily Switched to Financially Challenged Spin-Off Pre-Bankruptcy

DALLAS, TX–(Marketwire – December 1, 2009) – Telephone company retirees have filed a complaint for proposed class action relief under the Employee Retirement Income Security Act (ERISA) charging that they and over two thousand others were involuntarily switched in November 2006, post-retirement, from the financially secure Verizon Communication Inc. (NYSE: VZ) pension plans to pension plans sponsored by a newly spun-off company, Idearc Inc. (PINKSHEETS: IDARQ).

Less than 2 years after Verizon transferred the retirees, Idearc encountered financial problems and began cutting back various earned retiree benefits. These benefit reductions were not experienced by retirees remaining in Verizon’s pension plans. In March 2009, Idearc filed for Chapter 11 bankruptcy.

In mid-November, 2006, after each Plaintiff had been retired for at least ten years, they together with more than 2,000 others were involuntarily reclassified and switched into pension plans run by Idearc. All three Plaintiffs were fully vested in the Verizon pension plans with rights to continued payment of monthly annuities and other Verizon welfare benefits. No party received any Plaintiff’s consent to be switched over to Idearc’s pension plans. From the point of the spin off, concluded on November 17, 2006, Verizon treated the retirees’ rights to the usual Verizon retiree benefits as being terminated.

Plaintiff Philip A. Murphy, former President of CWA Local No. 1301, a resident of Mills, MA, retired from a predecessor of Verizon in 1996. Plaintiff Sandra R. Noe of Ipswich, MA and Plaintiff Claire M. Palmer of West Newton, MA both retired from predecessors of Verizon in 1995 and had for years been participants in Verizon pension plans. None of the Plaintiffs had actually ever worked for Idearc.

When retirees tried to administratively challenge their involuntary transfer to Idearc and its pension plans, without going to court, the respondent companies stonewalled and missed mandated deadlines to respond to the retirees’ internal claims. The retirees’ proposed class-wide administrative claim sought to remedy the mistreatment accorded to both non-management and management retirees who have suffered tremendous losses not suffered by their fellow retirees who were not transferred to Idearc. The respondents refused to treat Plaintiffs’ internal claims as class-wide claims.

Therefore, Plaintiffs filed a proposed class action on November 25, 2009 in the U.S. District Court for the Northern District of Texas, Dallas Division. The Complaint filed in Civil Action No. 3:09-CV-2262 charges pension plan administrators with numerous ERISA violations including:

— Failure to provide requested plan documents;
— Breach of fiduciary duty for refusal to disclose pension related plan information;
— Breach of fiduciary duty for failure to comply with pension plan document rules;
— Various other ERISA violations justifying court ordered declaratory, injunctive and other equitable relief;
— Unlawful refusal to make payment of Verizon pension plan benefits; and
— Unlawful interference with retirees’ rights to receive Verizon retiree pension and welfare benefits.

The Federal Complaint states that when Verizon transferred hundreds of millions of dollars in surplus pension assets to Idearc in November 2006, no pension plan language identified and traced the transferred monies to actual liabilities owed to particular plan participants for the payment of pension benefits. When Verizon conducted the transfer, there were no existing plan terms giving the plan sponsor or any other entity the authority to change the status of the retirees.

“What Verizon did to these retirees is disgraceful,” said C. William Jones, who heads the Association of BellTel Retirees Inc., (www.belltelretirees.org) a retiree activist organization. “They are ducking a fiduciary responsibility to employees who gave decades of service and earned these benefits. These pension funds were set aside over the years for the benefit of employees who worked 20, 30 or more years and earned their pensions over their careers. It is reprehensible to refuse to provide plan documents so retirees can make informed judgments on the state of their pension plan and other benefits which they earned during their working years.”

The Complaint asks that all retirees who were transferred to Idearc be put back into Verizon’s pension and welfare benefit plans. It also asks that Verizon’s and Idearc’s pension plan administrators be order to pay a daily penalty for failure to timely provide requested records. The Complaint is posted at the website for the Association of BellTel Retirees, Inc. See: http://www.belltelretirees.org/index.php?option=com_content&view=article&id=33&Itemid=32

Plaintiffs’ counsel can be contacted at: CurtisLKennedy@aol.com

Almost as bad as employees getting shoved into company stock………………….. Sure they will match it, but as long as the company continues with accounting tricks so Wall Street and Main Street do not know what is really going on with the decline of yellow page usage, you will never see a positive return on the investment. Unless of course you get friends to do some insider trading while hushed during a “Quiet Period”. Someone is laughing all the way to the bank! More to come later folks!


Idearc Execs Sued for Fraud via Dick Larkin at YP Commando

October 13, 2009

Idearc Execs Sued for Fraud

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Short and sweet: Scott Klein said that the company was having issues with collections due to a change from “the phone company” bill to Idearc direct billing. He also stated that they had issues with receivables in 2008 from relaxing the credit policy in 2007 (which I can confirm was something that was not disclosed to investors but only sales consultants.) Klein and his treasurer Dee Jones failed to mention the relaxed credit policies in 2007 after the switch from Verizon billing. This had a direct impact on bad debt. Klein violated securities and exchange rules by not disclosing the relaxed credit policies. The stock dropped 40% after he mentioned the decision he made in 2007 to relax credit policies.

Idearc CEO Scott Klein is not committed to the level of transparency that investors need to make proper decisions on whether investing in Idearc is beneficial to them. I have a feeling that he will not be with the company after a new investor takes over majority share of the company.

The companies executives failure to disclose information to investors does not surprise me. The company fails to discuss issues within the sales organization such as racial discrimination (Spanish Yellow Pages sales commissions in Texas) as well as racial discrimination by Scott Klein’s henchman Jesse Vickers who is black and targets folks that are “white.” It is well-known that these and other issues exist within the sales organization.

I believe that Idearc has a “way-to-heavy” amount middle management people in the way of fixing the company’s customer service issues. When a problem exists, instead of the problem going straight to the person responsible for resolving the issue, the problem is sugar-coated by middle management and the client is left with a bad taste in his/her mouth regarding the way the problem was resolved or lacktherof. Idearc fails to ask the right questions from sales reps and clients. Surveys do not work. Workers feel that survey responses may have a direct impact on employment. The environment in the organization has not been positive since the company has been in the hands of Klein and his cronies.

In my PERSONAL opinion, Scott Klein is just like Obama.  He says what he can to make you think the way he wants you to think, but his policies and acts do not mutually benefit Idearc’s clients, investors, or employees. How many of his announcements and promises made back in the February National Sales Meeting have he actually been successful and made improvements to the company? He is full of crap if you ask me.  The best he can do is create a new gimmick for sales consultants, advertisers, and consumers to be duped into believing is original. Klein copied ServiceMagic.com’s ServiceGuarantee and rebrand it the SuperGuarantee.