Idearc Exec resigns amongst allegations of fraud and cheating local advertisers

December 3, 2009

If an executive of your organization committed fraud and the other executives covered the actions up with an announcement of “retirement”, would you want your company to announce it publicly? PR Nightmare….. who will force Idearc to be accountable for the actions of executives? Is Verizon accountable for the companies debt burden and bankruptcy? Are they taking accountability? Should be not hold our executives to a higher standard? Decisions made at the executive level impact the lives of many families.

The President of Marketing and Transformation at Idearc Media is resigning due to allegations of fraud and using power as an Area President of the organization to get her husband’s paving business in the front of the existing Paving Contractors in the Greater Dallas Verizon Yellow Pages. Doesn’t surprise me folks. This is what I have been saying is wrong with the corporate ethics and culture within the organization. Apparently the latest news is that she authorized a new heading at book close II on the book designated “Pave Stone” which appeared before “Paving Contractors” (and is also a brand name and I am sure the co-op is another issue) thus allowing her husband’s paving company to be ahead of larger full page ads with a much lower cost 1/2 page ad. I recall this going around local management and the media consultant who was required to make the submission.

This is unfair to other advertisers. This is not ethical. Although I do find it disturbing that they are announcing her retirement as President of Marketing and Transformation. Just as fishy as the manner in which the company was spun off with a heavy unbearable debt burden from Verizon (along with Hawaiian Telecom and FairPoint Communications who are also bankrupt from debt burden) to become a stand-alone organization. Verizon used the funds to finance FIOS.

Other questionable potential questionable activities that should be asked of auditors and investors:

  • directives from executives to RVP’s regarding the reporting of sales net losses (nice bonuses!)
  • quarterly decrease and cancel reporting for directory publications (report the losses later with book close extentions)
  • pricing for Greater Dallas advertising under $850.00 per month credit limit (more potential credit concerns)
  • changing credit policy that increases risk while disclosing collection issues to investors (not disclosing the softened credit policies)
  • sales reps disclosing private company information to competitors (sales ethics violations)

Immediately upon taking office as the new CEO of Idearc Media, Scott Klein, hires his former sales manager at the building supply company to head one of the three sales regions, then the same Executive Vice President recently hires his neighbor to be the new Texas area Sales Manager…… And employees like myself who have contributed to the organization wonder why the ceiling is so low at the organization.

This entire thing just sounds like a bunch of cronyism that small business owners and investors might need to be aware of.

For more information stay tuned to http://www.yellowcrooks.com

If this is the level of Corporate Leadership you can expect from Idearc, why would you not want Union representation to protect you? My mother, TC (Stewart) Adams, was a Union Steward at GTE Telecom back in 1997. I always grew up listening to the inner workings of the union. Being a Conservative thinker, I’ve never believed union representation was in the best interest of employees. I remember when management told the Local Dallas CWA Union to leave the building at 4500 Fuller Drive in Irving Tx (the local Dallas area sales office for Verizon Directories.) After witnessing questionable activities and lack of corporate direction from the Executives in the organization, I am starting to think the union might further protect the employees from this mess? I also feel additional confidence in my future as a local search marketing specialist to local Dallas area business owners. Hope other employees make the transition.

BTW, how did Sandy Henjum manage to get on the Board of Directors for the Dallas Better Business Bureau? Are they aware of what she did? Are they going to investigate this action by a board member?

What are your thoughts?

Mike Stewart
-The Dallas Google Guru-
former Idearc Media Consultant from 2000-2009