Hack your elevator pitch

In the December 13, 2016 Ask The Headhunter Newsletter, a reader asks how to formulate an exceptional elevator pitch.

Question

elevator pitchI have been out of the corporate world for over 10 years. I recently sold my business and am contemplating my options. I am too young to retire (in my mid-50s), yet too old to be a hot prospect for most companies, so I am networking.

I was recently asked for an “elevator speech” about myself. Of course, I know what that is, and admit it has value because it forces focus. Yet I am vexed by the prospect of re-developing such a tool, partially because I am not sure what I really want to do and I want to keep my options open, and in part because I always question the value of a bumper-sticker-tool in changing times.

What are your thoughts? Is an elevator pitch valuable? What are the critical elements as you see it? How should it be developed and delivered? What’s the best you have heard?

Thanks for your time. I have been a subscriber for several years and recognize a great content developer, and blogger, when I see one!

Nick’s Reply

There’s no way to focus on what you cannot see, but more about that in a moment. Your instinct is right. It’s time to hack the elevator pitch, because I think elevator pitches (or speeches) are nonsense.

They’re a product of the career coaching industry, which wants your money, and which tends to fabricate stuff it can sell you. (I tell this to Executive MBA students at Cornell, Wharton, UCLA and other schools whenever I do workshops for them.)

What’s an elevator pitch?

By definition, an elevator pitch is about you. You meet me in an elevator and you spout your pitch. But I don’t know you, so I couldn’t care less about you. I don’t need or want to hear about you. Why would I be impressed that you can talk about yourself?

I care about my business and the problems and challenges I face. And they’re all unique to me. (See How to get the hiring manager’s attention.) Hearing about you does nothing for me, because when you rattle off that speech your objective is for me to listen carefully, then to invest my time trying to figure out what to do with you. That’s an unreasonable presumption.

What’s worth listening to?

Now, if you have something useful and specific to say about my business that reveals you’ve already made an investment to understand my plight — that’s worth listening to.

If you say something on the money about my business, the encounter shifts. I’m suddenly interested in who you are, and I might want to know more about you. We might even become great friends.

The trouble with job seekers

This brings us to the fundamental trouble with job seekers. On the whole, what’s painfully lacking in their presentation is attention to the person they’re addressing. An elevator pitch is all about the speaker — it shows no real respect to the listener.

Similarly, a resume that you hand to every employer is about you, and your objective is for each employer to figure out what to do with you. Consider how presumptuous that is. More to the point, consider that no employer has the time, interest or ability to figure out what to do with every job seeker that comes along!

(Think I’m daft? For all the resumes you send to employers where you’re convinced you’re perfect for the job, how many of them invest the time necessary to conclude that you’re the perfect candidate? Employers don’t do what job seekers presume they do. That’s why using automated job application tools to hit as many employers as possible is stupid and unproductive. So why do people keep doing it?)

Who are you pitching to?

If you think about it, investing time in producing a canned elevator pitch is pretty silly. Selectively and thoughtfully investing some serious time in understanding the business and problems of someone you want to work with — that’s smart. Of course, it means you must carefully select your target, right? Or, why bother making such an investment? You must prepare a short speech that’s highly specific to that individual — one that wouldn’t mean anything to anyone else.

Only if you have time to do that do I have time to hear you out.

When you ran your business, did you ever stand on a street corner reciting information about your products to impress people? I know the answer. So, why would you even consider doing that now?

Hack your elevator pitch

The best elevator pitch I’ve ever heard goes like this: “By doing XYZ, I can increase your profitability by 10%.” There’s the focus you mentioned — but to bring that kind of focus, you must first clearly see and examine the object. And that object is my business. Can you hack my business? (See Stand Out: How to be the profitable hire.)

Thanks for your kind words. Glad you enjoy Ask The Headhunter. Please use your good business sense when pursuing a job, if it’s a job you want. Because employers don’t pay for elevator pitches or interview skills. They want business acumen that addresses their specific issues, and that contributes to their bottom line. One size does not fit all.

What will get the attention of someone you want to work with? Do you use a prepared speech? How do you know what to say?

: :

“Make personal contacts to get a job? Awkward…” Get over it!

Quick Question

Thanks for your advice about meeting people and making personal contacts to get a job in Do you discriminate against employers? You should. It makes sense… except when you don’t have friends! LOL! Besides, it’s awkward!

personal contactsNick’s Quick Advice

Yeah, I know — it’s awkward to meet people to get a job. (It makes you cringe, right?) You’re in good company. And everybody in that company is wrong.

When I bring up making new personal contacts, everyone likes to excuse themselves by saying they just don’t have professional contacts, their old work buddies are long gone, no one can help them.

My answer is: Bunk.

It’s an excuse, my friend. We all learn to be lazy because we feel awkward reaching out to new people. You have to get over it.

Meeting people, making contacts, making new friends and talking shop is a skill. You learn it and practice it. (Please see I don’t know anybody.) If you don’t practice this important skill, you lose — and the job boards and online applications will not be your automated substitute for the 40-70% of jobs that are filled via personal contacts.

If you quietly fill out online job applications, you’re at the mercy of HR departments that process database records all day long while you wait for them to contact you. You already know that doesn’t work, so why do you keep pretending?

The only alternative is the one that has worked for centuries:

Personal Contacts: Go talk to people.

Meeting people to get introduced to hiring managers and new job opportunities makes sense. You know it does — but you just don’t want to think about it. I know it’s awkward for many people. So go into your bathroom, lock the door, look in the mirror. Smile at yourself for a few seconds, then scream at yourself:

PRETENDING A DATABASE IS GONNA FIND ME A JOB IS BUNK! I KNOW BETTER!

And you do.

Diddling the keyboard to find a job makes no sense at all — except to “job services” like Indeed, ZipRecruiter, LinkedIn, Monster, and every other job board. Their entire business model is based on you not finding a job, and on you returning again and again to the digital swill pot for a drink. (See Reductionist Recruiting: A short history of why you can’t get hired.)

Those companies make more money when you can’t find a job and when employers can’t fill jobs. That’s how the employment industry works. It’s not how people get hired.

I’m not beating you up, just shaking you a bit. Please listen.

For more about making personal contacts, see “A Good Network Is A Circle of Friends” and “How to initiate insider contacts” in How Can I Change Careers? It’s not just for career changers — it’s for anyone who wants to stand out when applying for a job. Until Dec. 5, 2016, you can get 40% off any Ask The Headhunter PDF book — at checkout, use discount code=MERRYATH.

: :

Do you discriminate against employers? You should.

Quick Question

How do you deal with online and phone interviews where they blatantly ask, “What year did you graduate?” Upon receiving the answer, they hang up. This is clearly age discrimination!

Nick’s Quick Advice

talk-to-the-handWell, you decline to answer, hang up, and chalk up another company you’d never dare to work for. In other words, you discriminate.

When employers rough up job applicants like that, it’s a sign that you’re dealing with jerks. They run through applicants like chaff in the wind; you can (and should) do the same to them.

And when you’re fed up with all the chaff in the wind, stop applying for jobs via ads. Start hanging out with people who do the work you want to do, make friends, build trust, get accepted, get referred, get hired. (See Get Hired: 3 steps to become the wired insider for the job.)

Just because 50 million people apply for jobs the way HR wants them to doesn’t make it right, smart, or productive. Just say no.

Go meet the people you want to work with where they congregate. That means it’s up to you. It’s not automated. Automated is a lie.

See How and when to reject a job interview. (This cuts both ways.)


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: :

Who’s behind the SevenFigureCareers recruiting scam?

recruiting-scam[See Update at end of this article.]

SevenFigureCareers is a recruiting firm that doesn’t recruit. Real recruiters are paid by employers to find candidates to fill jobs — they don’t charge job seekers. In a recruiting scam, you pay the fee.

SevenFigureCareers’ recruiters charge you a fee to set up bogus interviews with phony managing partners at fake private equity (PE) firms. And then you’re out $1,500, $2,500, $4,500 or $10,000 — depending on which iteration of this racket you did business with.

After months of research driven by loads of information crowd-sourced from the Ask The Headhunter community, best estimates are that this international scam has generated as much as $18 million since 1999.

A 17-year racket

The people behind this scam have operated at least four different recruiting firms that have each operated under several names themselves:

  • Executive Headhunter Group (Executive HGG)
  • Private Equity Headhunters (PEH)
  • Executive Top Gun Search (Top Gun, ETG)
  • SevenFigureCareers (7F, 7figcareers)

With each iteration, complaints have piled up on sites like RipOffReport, Scam.org, and Ask The Headhunter. Victims have sued for breach of contract, negligent misrepresentation, common law fraud, and consumer fraud — and won judgments in court.

The owners of these firms have impersonated attorneys and threatened their victims. They use invalid contracts and have had their credit card merchant account cancelled as a result. Since 1999, when the heat got too high from victims they burned, the scammers created new fake websites, new fake PE firms, and new fake recruiters — and kept running the same racket.

Who could fall for such a scam? How can a fake business collect millions in fees via credit cards? Who’s behind this — and why haven’t they been busted?

We’ve already answered the first two questions in 7F: Anatomy of A Recruiting Scam and in WWEJSS: How does a fake recruiting firm get a credit card merchant account? Information and documents supplied by people familiar with the scam lead step-by-step to companies, websites, street addresses and names that are all connected by WWEJSS, LLC, “a Texas corporation” that does not exist.

WWEJSS

In the current scam, SevenFigureCareers, victims sign a contract for services and pay thousands of dollars by credit card. As we’ve already seen, the contract is bogus because the company behind it, WWEJSS, LLC, “a Texas corporation” is phony. (Even the wording on the contract is bogus, because an LLC is not a corporation.) The Texas Secretary of State confirms there is no such legal entity registered — and it must be registered if it is to conduct business.

While the contract is legally invalid, an American Express merchant account tied to that contract was very real. The contract, the account, and the domain SevenFigureCareers.com are all tied to WWEJSS.

We know WWEJSS is phony because American Express cancelled its merchant account and refunded charges collected from cardholders for fake “services” rendered.

7f-wix-1So, who’s behind this scam outfit, and who owns SevenFigureCareers.com?

A search for WWEJSS turns up a tech-support thread loaded with profanity at Wix.com, a website developer tool. The customer wwejss refers to his website, 7figuresrecruiting.com, one of the Internet domains related to SevenFigureCareers.com.

This bit of information will be helpful later. But what we’re looking for is a name tied to WWEJSS.

Who Is It?

A WHOIS database search for SevenFigureCareers.com turns up a domain registration whose owner is hidden. For a few bucks, anyone can privately register a domain name. Note the creation date of this domain registration: March 20, 2015.

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DNS Record History

But what’s hidden on the Internet is not always completely hidden. StatsInfinity — an Internet statistics tool — reveals a Domain Name System (DNS) record history that confirms SevenFigureCareers.com was registered on March 20, 2015.
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Unlike WHOIS, StatsInfinity also shows the history of the domain, which reveals the owner’s name, street address, e-mail address, and phone number. The owner’s name is listed as “Worldwide WWEJSS.”

Note the phone number: (832) 912-4445. We’ll call it later to see who answers.

Apparently, whoever established this domain locked the ownership information afterwards. But the details were captured and preserved by StatsInfinity.

Craig Chrest

Closer inspection delivers the gold nugget of information we’ve been looking for. There’s a name now connected to WWEJSS and SevenFigureCareers.com on a public document that also serves as a legal Internet registration: Craig Chrest.
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Iterations of the scam

Internet research reveals that this recruiting scam is not new. Several iterations going back to at least 1999 can be traced to the same operating entity — WWEJSS — and Craig Chrest. Before we get to the name connected to SevenFigureCareers.com, let’s go back to the domain name we found on the Wix.com support page, 7figuresrecruiting.com. (If this is not a chronological history, it’s how Internet data led to each of the companies involved.)

#1: Private Equity Headhunters

A Google search for “7figuresrecruiting.com” takes us to ScamOrg.com, where we find a lengthy report about another company, Private Equity Headhunters LLC, which pre-dates SevenFigureCareers. (You may need a score card to keep track.)

7f-pehhsOne victim connects this firm with 7figuresrecruiting. And who turns up in the complaints but “Art French (salesman),” who refers to himself in e-mails as “VP Recruiting” at SevenFigureCareers.com. (For more about Mr. French and his twin brother Tony, see 7F: Anatomy of A Recruiting Scam.)

And right beside French is “John Chris, account manager,” known as “James Chris — V.P. Account Management” at SevenFigureCareers. He apparently goes by “Chris Johnson” at PEH.

#2: Executive Top Gun Search

An earlier recruiting firm surfaces when we examine the addresses of these entities, and it’s tied to the same owner.

The street address on Craig Chrest’s current SevenFigureCareers.com domain registration is 12841 Jones Road, Houston, Texas. A search for this address on TexasCorporates.com turns up another Chrest property: Executive Top Gun Search, LLC — at the same address.

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While WWEJSS and SevenFigureCareers are not legally registered entities, Executive – Top Gun Search, LLC was registered in Texas on May 30, 2002 by Craig N. Chrest at 12019 Bexhill Dr., Houston, TX, 77065. The registration is still active.

Now let’s jump forward to SevenFigureCareers. Note Chrest’s middle initial on the Top Gun registration — N. While his name is never used by anyone at SevenFigureCareers, his initials make their way into the business. 7f-chrest-nAccording to myrelatives.com, the N stands for Nicholas.

When victims of SevenFigureCareers filed disputes with American Express, the merchant was required to document the transactions and submit supporting information to AmEx. When those victims also complained to Art French, he called them back to announce “we won the settlement — we always do.” Then French offered to put them in touch with “the CEO of the company” — C.R. Nicholas — because “our CEO would like to make things right with you.”

Listen to a voicemail left by French for a victim:

Mr. Nicholas” (CRaig Nicholas Chrest?), later left this message for the same victim:

When the victim spoke with Nicholas, Nicholas ranted about how Ask The Headhunter is “scamming” SevenFigureCareers and causing trouble — but Nicholas would “look into getting you your money back.”

French was lying, and so was Nicholas. AmEx not only refunded the victims’ money, AmEx cancelled the merchant account.

Now that we have a first, middle and last name for the owner of these companies, let’s get back to Top Gun. Websites for Executive Top Gun Search disappeared after customer complaints revealed the scam on sites like RipOffReport. (See links to complaints below.) Searches for the firm turn up nothing but complaints.

#3: The Executive Headhunter Group

The earliest iteration of Chrest’s recruiting business is referenced in a press release that claims Craig Chrest started The Executive Headhunter Group in 1999. This glowing article on SBWire is dated 2011 and is loaded with text links to Top Gun — but they’re all dead pages.

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A 2013  prweb press release refers to this iteration by another name — “Executive HHG.” It’s filled with links to a “domain for sale” page.

7f-hhg-prweb

The firm’s website is gone, but there are plenty of complaints lodged against it and Craig Chrest. The complainants tie Executive HGG to Top Gun.

#4: SevenFigureCareers

7f-wwejsslss-usplacesThe most recent iteration of this recruiting scam has been documented extensively on Ask The Headhunter.

WWEJSSLSS?

Another variation of the WWEJSS name turns up on USplaces.com — this time as WWEJSSLLS. LLS has no meaning I’ve been able to discern.

Is this another recruiting business? Perhaps it’s just another sloppy error — intended to be “LLC.” More likely it’s intended to cause more confusion for potential suckers doing their due diligence.

But it’s yet another business listed at the 12841 Jones Road address that again and again leads back to Chrest.

Unraveling WWEJSS

Legal filings connecting WWEJSS and Craig Chrest tie all the entities together with names, addresses, and telephone numbers.

There was no indication what the letters WWEJSS stood for until one of the victims pressed American Express for more detailed information about the name of this merchant on credit card bills and on the SevenFigureCareers contract. AmEx coughed up the solution: Worldwide Executive Job Search Solutions. But the only address AmEx would provide is “Suite 201, Houston, TX.” A spokesperson for American Express declined to explain why it won’t give cardholders the full address of one of its merchants.

While WWEJSS is not a registered entity, thus rendering the SevenFigureCareers contract invalid, Worldwide Executive Job Search Solutions, LLC is registered in Texas. But the registration — like the SevenFigureCareers.com domain name — is hidden, this time behind a “registered agent service.” Someone doesn’t want to be found.

7f-wej2

But in the world of government registrations, you can’t hide. Ask The Headhunter’s attorneys turned up this summary of the LLC’s true owners:

7f-wej1

Craig Crest is listed as a member, or owner, of the LLC. The rest of the details are in the complete Certificate of Formation filed by Chrest’s partner, Franklin Wescott Straussbaugh, with the State of Texas.

LLCs are interesting legal entities. They’re not corporations and technically they’re not partnerships. They have members (owners) and they have managers. The formation certificate declared all the members managers. Less than a month later, Straussbaugh filed a Certificate of Correction making Chrest the sole manager of the LLC. The other two members, Jaree Zafar and Franklin W. Straussbaugh, remain members and owners. (Soon we’ll see that Straussbaugh is more than just a member.)

[See Update at end of this article. Zafar claims Chrest added him to the LLC without his knowledge or consent and says he is taking legal action to be removed.]

Executive Top Gun Search, LLC (a.k.a. ETG) was registered by Craig N. Chrest on May 30, 2002.

7f-etg1

The Ask The Headhunter legal team pulled ETG’s Articles of Organization, filed May 30, 2002 by Chrest. He is the only member and manager of record.

Privateequityheadhunters.Com, LLC (a.k.a. PEH) was registered June 27, 2013 by another registered agent, InCorp Services, Inc. But PEH’s Certificate of Formation shows this LLC was organized by Jaree Zafar, Chrest’s partner at Worldwide Executive Job Search Solutions, LLC. [See Update below. Zafar claims Chrest forged his digital signature.] But according to the Certificate, Craig Chrest is the real manager behind all the legal shielding — he’s the guy behind Worldwide Executive Job Search Solutions, LLC, which is listed as “the governing person…” and “Managing Member”:
7f-peh-cert1

By skipping from one business entity to the next, Chrest and his team tried to escape the torches and pitchforks that were pursuing them online and in the courts.

12841 Jones Rd Ste 201, Houston, Texas

 

The address listed by Chrest on business filings, 12218 Jones Road, Suite D-108, Houston, TX, 77070, is a Mailboxes Plus store — a mail dropbox.

7f-12218jonesrd-ste-d

According to public records, Executive Top Gun Search (ETG), Top Gun Executive Group, Worldwide WWEJSS and WWEJSSLLS are located at 12841 Jones Road, Suite 201 in Houston, Texas, phone number (832) 912-4445. It’s not clear why American Express hides the “12841 Jones Road” part of this address from cardholders who have demanded contact information about the AmEx merchant that bilked them.

Earlier, we noted the phone number listed on the domain registration for SevenFigureCareers.com — it’s the same. While the number listed on the SevenFigureCareers website (at 600 W. Broadway, San Diego, CA), and the number C.R. Nicholas says he’s calling from, is (866) 621-1062, the telephone number under which the businesses are registered, (832) 912-4445 is answered by a man who says, “Billing.”

When I called for comments about the subject of this article, the man answering denies he is Craig Chrest and says he is not familiar with any of the firms or people we’re talking about. He says he’s not in Suite 201, but in 301. The building’s manager says there is no Suite 301 or third floor in this building, where offices are rented to lawyers and other businesses.

The voice answering  (832) 912-4445 is, in my opinion, the same as the voice on voicemails left by C.R. Nicholas.

When Ask The Headhunter visited the building, we found a directory of occupants inside the front door. The business occupying Suite 201 is “CNC.” Could that refer to Craig Nicholas Chrest? This seems to be the real home of all the recruiting firms connected to WWEJSS.

Who is Craig Chrest?

Craig Chrest, the documented owner of the SevenFigureCareers.com domain is also the man who owns, manages and controls Top Gun Executive Search, Private Equity Headhunters, Executive HGG, and Worldwide Executive Job Search Solutions (WWEJSS) — but has no LinkedIn connection to any of these business entities.

What successful business person isn’t on LinkedIn? Not Arthur or Tony French. Not C.R. Nicholas or Wesley Strauss or others connected to these firms. Franklin Wescott Straussbaugh does not exist on the Internet. Not even the notable entrepreneur Mark Allen is on LinkedIn, and he’s the managing partner at the notable Agile Capital Partners who “interviewed” victims for seven-figure jobs… just on the phone.

But Craig Chrest has quite a presence online, if you know to look for him.

According to public records and to promotional materials he published himself, Craig “Chip” Chrest played football at the University of Wisconsin – LaCrosse, and later in the NFL for the Green Bay Packers and the Cleveland Browns.

Chrest published the Top Gun Executive Group’s Blog during 2011. Judging from comments on his posts, the blog was used to create a “presence” to bolster the brand. The names and comments on his posts are nonsense.

7f-weebly
Many other Top Gun pages appear on third-party hosts, clearly intended to create as big an Internet presence as possible. For example, Yola lets anyone build a free business web presence.

7f-chrest-pix-17f-chrest-pix-2Chrest published The Top Gun Executive Group on Yola. It includes a promotional headshot, reproduced here.

Another photo captioned with Chrest’s name appears on a recruiting association website, Top Echelon.

A biography published on fandom reports that Chrest majored in journalism and marketing, sold software and medical equipment, and founded Executive HHG in Houston, Texas in 2013.

Top Gun In Trouble

Fandom also reports that:

In 2013, Chrest and Top Gun were defendants in two civil court cases in which the jury awarded the plaintiff all actual damages and attorney fees of 4 times actual damages for one and subsequently additional damages for the second.

The biography links to Texas attorney Bradley J. Aiken, whose website provides more details about Michael Heartsong v. Executive-Top Gun Search LLC.

7f-lawsuit-1

Chrest testified in this trial and lost. A unanimous jury awarded four times actual damages to the plaintiff for “misrepresentations and breach of an employment search services contract.” Michael Heartsong never collected a dime of the judgment. Chrest claimed bankruptcy.

In 2010, New Jersey resident Vincent Peters sued The Top Gun Executive Group and, after multiple appeals, in 2013 won a final judgment from the 14th Court of Appeals in the State of Texas. LawCitations.com provides details, including this excerpt:

BACKGROUND Peters is a resident of New Jersey, and Top Gun is incorporated in Texas with its principal place of business in Texas. Peters and Top Gun signed a contract for Top Gun to locate employment opportunities for Peters, among other things. Peters paid Top Gun $4,500 for the service. Peters eventually sued Top Gun in New Jersey for breach of contract, unjust enrichment, negligent misrepresentation, common law fraud, consumer fraud in violation of a New Jersey statute, and attorney‘s fees. Peters obtained a default judgment for $18,680.62 and filed the judgment in Texas pursuant to UEFJA.

According to public court records obtained at MoreLaw.com, Top Gun “owner Craig Chrest” was the only witness. Additional court documents are available at Justia.com. According to plaintiff Peters, Chrest has never paid the judgment. He claimed bankruptcy.

Complaints

Websites connected to older iterations of Chrest’s recruiting firms have disappeared. But complaint sites document more PE firms, addresses, and names of individuals connected to this series of scams. While people posting complaints do so anonymously, their stories are consistent and the pieces fit together across sites and time.

7f-scamorg-3 7f-scamorg-4Complaints dated 2013-2016 appear on FacebookYelp, Scam.org and RipOffReport and refer to Craig Chrest, Arthur French, Wes Strauss, Wes Anderson, CR Nichols, Wade Ahmed, Douglass Robinson, to “The Top Gun Executive Group AKA Executive Headhunter Group (along with other aliases),” and an enormous cast of characters.

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Threats against victims

One of the RipOffReports features “retaliation responses” trying to discredit victims. The responses are never credible and offer no trackable source. A legitimate company would respond and provide a name and contact information.

Perhaps the most interesting collection of victims’ stories appears on ScamOrg.com, about Private Equity Headhunters LLC. It’s chock full of names associated with various iterations of the scam, among them some familiar to victims of SevenFigureCareers. These complaints also triggered “responses” threatening the complainers.

7f-scamorg-1 7f-scamorg-2
It seems the threats frightened some complainers into silence, including a case where the scammers posted the full name of a victim — apparently to intimidate her. But judging from Scam.org postings, victims caught on and lost their fears.

Evolution of the non-disclosure threat

As complaints mounted, each firm disappeared and a new one popped up to replace it. This seems to explain why the newest “contract” — for SevenFigureCareers — includes a wild non-disclosure (NDA) clause that warns victims they’ll be liable for tens of thousands of dollars if they ever speak up.

7f-contract-2

This NDA strategy seems to have shut up new victims, notably John Rice, who first posted his complaint on Ask The Headhunter. Rice then asked me to remove it when a phony lawyer sent him a nasty e-mail invoking the confidentiality clause. The NDA seemed to be working — for a while.

But we learned the lawyer was fake — which prompted legal review of the contract, and investigation of WWEJSS. It’s all phony, thus the threats are once again empty. And now victims are not just posting complaints. Victims are delivering documentation that has led to the exposure of the entire ring and the whole string of recruiting companies under Craig Chrest’s registrations.

How big is the scam?

It’s big. Multi-million-dollars big.

Size of the operation

While it might seem there are many people involved in the operation discussed in this series of articles, indications are that it’s just a handful.

According to victims, Chrest handles the database and operations from Houston (including “Billing”). People familiar with Straussbaugh suggest he’s the voice on the phone — Arthur and Tony French, a.k.a. Wesley Strauss and Wes Anderson — doing the sales pitches and coddling the victims until they realize their money is gone. A changing roster of programmers seem to be helping with the back end in Pakistan. According to a 2013 prweb article, Jaree Zafar — an LLC organizer and current member — handled information technology, though his involvement today is unclear. [See Update at end of this article.]

It doesn’t take many people to run a scam when it’s automated. Judging from communications received from SevenFigureCareers by victims, boilerplate “reports” and “updates” are mail-merged with different names and sent out en masse every day to hundreds of victims and targets at a time. Most notable is the boilerplate included in supposedly confidential e-mails between French and the managing partners of PE firms. This bit of social engineering has generated loads of laughs among the Ask The Headhunter team:

Good talking to you and glad to hear Julie is doing better.

— See 7F: Anatomy of a recruiting scam

Suckers are supposed to think they’re listening in on personal repartee that reveals the close connections between Art French and his clients. But Julie is referenced in e-mail threads attributed to multiple sources and included on mails pertaining to multiple job opportunities from different “managing partners.” Poor Julie.

Big bucks

Ask The Headhunter has been contacted by people to whom Chrest has bragged about his accomplishments. How much money have victims been scammed out of since at least 1999?

Reasonable estimates are between $4 million and $10 million, possibly more. Chrest has changed his fees over 17 years to what the market will bear — $10,000 per “client,” $4,500, $2,500, $1,500. The number of victims per month is shocking.

When American Express cut off the WWEJSS merchant account, the credit card company’s fraud unit kicked into action. Victims have confirmed that AmEx has already begun refunding fraudulent charges to cardholders. VISA and MasterCard participate in a fraud clearinghouse called MATCH. Because of the scope of the scam, it’s reasonable to expect that federal authorities are investigating. One victim has reported that:

The good news is that I have all the addresses, contracts and bank info to turn over to the FBI.

The credit card companies and banks have a lot of explaining to do. Now that victims are demanding charge-backs, does anyone think the card companies are going to eat the costs in dollars and damage to their brands? How did they let this go on for 17 years?

International

Art French solicited a leading telecommunications scientist in Israel who contacted Ask The Headhunter immediately. He played cat and mouse with French while feeding along French’s e-mails and audio recordings of their conversations.

The scientist believes French found him in an executive networking database he’d recently joined. This suggests time zones and country boundaries are no obstacle when everything is done online and on the phone — and that there are many more overseas victims and targets who will come forward.

Here a condescending French pitches the “opportunity” for a phony job with Apax — a renowned London-based venture firm — and an interview with the non-existent Mark Allen. It’s all very, very confidential. (Audio approx. 3 minutes.)

At the end, French lays the hook — he’s got to get approval to “let” his victim do the interview.

In the next call, French tries to reel in the victim. He explains how “the program” works. Finally, the frustrated French discloses that an interview for the job in San Jose is going to cost $1,500. And, if the Apax job doesn’t work out, for thousands of dollars more, “7F” will make him “a client” for three months. (Audio approx. 6 minutes.)

International fraud is what attracts federal authorities. French is still waiting for the scientist in Israel to wire $2,500.

Craig Chrest: “Someone is scamming us!”

When victims have confronted Craig Nicholas Chrest — calling himself Mr. Nicholas — after they realized he’d ripped them off, he has responded that, “Someone is scamming us!” Someone was using his firm’s name, ripping people off, and making it look like it was him.

But Chrest’s signature across a span of 14 years doesn’t lie about who’s behind it all. Here it is on the 2002 Articles of Organization for Executive Top Gun Search, LLC that he filed with the Texas Secretary of State:

7f-chrest-sig1

And here’s Chrest’s signature, dated September 1, 2016, on a contract he signed as SevenFigureCareers with one of his victims — while claiming he was C.R. Nicholas, CEO of the firm:

7f-creditcard-sig

This particular victim’s $2,500 was refunded by American Express after the credit card company’s fraud unit turned off the lights on Chrest’s merchant account.

Scam firms beyond this series of articles

Fortune recently published two articles by Dan Primack about a recruiting scam the magazine referred to as The Ghost In The VC Machine, but they never got to the actual culprits. (See also The Venture Capital Firm That Wasn’t There.) Could these be connected to Chrest and SevenFigureCareers?

I think they are. The names are different. But note the address of one of the scam recruiting firms discussed in the Fortune article: 600 West Broadway, San Diego, California.

7f-fortune

That’s the address of SevenFigureCareers, which appears in press releases like the one below, and on the firm’s erstwhile website, and which is confirmed by the receptionist when you call (866) 621-1062:

7f-600bwy

This scam is bigger than anyone has guessed until now.

Have you been scammed?

Repeated calls to SevenFigureCareers’ advertised phone number, (866) 621-1062 (which is also the number on the firm’s contract) to reach Art French, C.R. Nicholas, Franklin Straussbaugh, Craig Chrest, and Jaree Zafar for comment failed. Only an answering service is available.  [See Update at end of this article. Zafar contacted Ask The Headhunter after publication of this article and provided a detailed comment.]

What’s interesting is that the receptionist — like the guy answering the phone at 12841 Jones Road — answers, “Billing,” then denies you’ve reached SevenFigureCareers. When pressed to speak with Art French, she goes to get him, then says “your account representative is not available” and denies any of the aforementioned individuals are at the number.

If you’re a victim of any of the recruiters and recruiting firms described, I’d like to hear from you. So far the people behind these firms have stayed far enough under the radar to trigger only small lawsuits — which the plaintiffs have always won.

The scam continues

Recently an Ask The Headhunter reader who paid SevenFigureCareers with his VISA card contacted me and referred to Chrest & Crew as the “7F CROOKS.” He said:

Anthony French solicited and sold me on a PE package and I actually got an interview with a PE firm that was questionable at best. Now their emails are all dead! I welcome a chance to share this bad experience with your readers.

Is it possible to go after people who hide behind ever-changing business names? Lawrence Barty, an attorney who has specialized in employment and labor law, offers this:

If you can identify the person who perpetrated this fraud, a tort claim of fraudulent inducement might be possible (as always, State laws vary) against that person — not against the illusory 7F. You were induced by X (identity presently unknown) to enter into a contract that cost you money, but was known in advance by X to be worthless. So, you should sue X, the person who tricked you into entering that contract. A claim of that type can be a tort claim, possibly giving rise to compensatory and punitive damages.

While Chrest’s victims have sued and won judgments in court, it seems the mistake they made was to sue his LLCs. According to attorney Barty, they should have sued Chrest personally. As in TheLadders case, individual victims need not hire lawyers. As more evidence and more plaintiffs surface, a massive consumer class action is likely the best legal strategy. (See TheLadders: How the scam works and Federal Court OK’s Suit Against TheLadders: Breach of contract & deceptive practices. This action arose out of complaints published on Ask The Headhunter, too.)

In the meantime, American Express found enough evidence in these articles to start refunding money to victims who were each defrauded of thousands of dollars by “WWEJSS.” No matter which credit card you paid with, you should contact your credit card issuer, include links to this series of articles, and ask for restitution.

All crooks are sloppy

This story started with an Ask The Headhunter reader who complained about getting scammed out of $2,500 by SevenFigureCareers on the comments section of this website. (See SevenFigureCareers: Threats and fraud.) He immediately received a threatening e-mail from a lawyer. The lawyer’s name was real — but the lawyer didn’t write the threat. He was impersonated by someone at SevenFigureCareers — a crime in all 50 states.

Arrogance makes scammers sloppy, especially when they do their business on the Internet. But when it’s on the Internet, information is forever — and any number of people can play.

Many thanks to all who have shared their experiences and information, and e-mails, contracts, recordings, and other documents to help expose this recruiting racket. Special thanks to the Ask The Headhunter legal team for digging up and reviewing documents, and for their insights, comments and legal advice. A big shout out to the field team that visited actual locations discussed in this article.

>Update: November 30, 2016

Jaree Zafar contacted Ask The Headhunter after publication of this article and says that he himself is “a victim of this fraudster,” referring to Craig Chrest.

Zafar says, “I am not his partner,” but that he worked for Chrest as an independent contractor “handling his IT needs between 2012 and 2013,” and decided to leave when he discovered Chrest’s “fraudulent practices.” He says that since 2013 he has had “absolutely nothing to do with Craig Chrest or his businesses,” that he has “not been paid a single cent from him” since 2013 — and that Chrest “still owes me thousands for my last month” of work.

Commenting on the LLC filings that bear his name, Zafar says, “I found out that [Chrest] had forged my signatures on his LLC formation and added me as a member without informing me and without my permission.”

It’s worth noting that, while Craig Chrest’s and Franklin Straussbaugh’s actual signatures appear on the Texas State filings obtained by Ask The Headhunter (see links above), Zafar’s actual signature does not. He explained that the forms were filed online and that Chrest merely had to type a name in place of an actual signature — without Zafar’s permission.

In 2013 Zafar “assumed that [Chrest] would have removed my information [from the LLCs] after receiving three demand letters from my attorney.” Unable to afford legal costs, Zafar says he did not go through with litigation.

About Chrest, Zafar says, “This guy has a long history of impersonating and defrauding people. I have contacted my attorney regarding this matter and I intend to start criminal proceedings for identity theft and fraud… but since he has all my personal information including my date of birth and social security number, I am now seriously concerned about the extent of this thief’s intentions. I am sorry for everyone who has been victimized by this fraudster.”

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Have you been solicited or ripped-off by a similar scam?

Comments on this post are closed. If you’ve encountered what you believe is a similar scam, send details here.

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Recruiting: How to get your hands dirty and hire

In the November 15, 2016 Ask The Headhunter Newsletter, a hiring manager offers a profound recruiting tip for employers.

Question

recruitingMost professional associations have “X helping X” groups (e.g., lawyers helping lawyers). These groups consist of people being rehabilitated from disabilities of one sort or another (including a number of recovering alcoholics). It never hit me before, but such groups can be great sources of hires. When we brought our latest aboard and she worked out extremely well, I asked where we found her. I got to thinking after that.

A guy in my company goes to just such a “helping group.” (He joined Alcoholics Anonymous 20 years ago and has been sober since.) A while back he started recruiting the occasional employee from the group. The success of our hires from that group, compared to hires from the general population, is about 4 to 1. Why? I think it’s because at these meetings you get full disclosure of a person’s problems, a good feel for the degree of their recovery (just being a member is a good sign) and the people are generally competent, humble, loyal, and grateful as heck to be employed.

Anyway, I find it an interesting approach to hiring. I attend our industry’s “X helping X” group whenever I can now. Afterwards, people go to dinner together, and I’m usually the last to be left out of a group!

Nick’s Reply

I have corporate clients who pay me a lot of money to provide them with recruiting ideas like the one you just described. It’s so obvious, it’s almost silly, isn’t it? Real recruiting by getting your hands dirty — going out to meet people!

Recruiting: I doubt you are!

Employers get so stuck thinking about hiring the traditional way that it never occurs to them to make it personal. That means having managers stop and think about social, professional, and community settings where potential job candidates congregate. You’ve hit on a particularly interesting one, where you’re not only getting what you want, but helping the kinds of people who make great employees.

Think of all the other possible sources of job candidates, all of them essentially free, where you can observe people in action:

  • Local chamber of commerce meetings
  • Church groups
  • Professional associations and meetings (like the one you describe)
  • Job search clubs
  • Professional training programs (e.g., marketing, programming, finance and accounting, etc.)

I do workshops for some of the top business schools around the world (and I charge them a fee), but I also regularly conduct pro bono Ask The Headhunter workshops at the Somerset Hills YMCA in New Jersey. Very talented “downsized” people gather to learn how to job hunt. I’ve never met an employer at these events! Why don’t employers jump on these? Maybe because they’re too busy reading through dopey resumes on LinkedIn and Indeed!

Managers have forgotten how to circulate and meet people! (See Smart Hiring: How a savvy manager finds great hires.)

Recruiting people where they learn

Think about professional training programs especially. This is where people are building skills that you want to hire! Why don’t companies routinely send a few of their managers to these? The students at these programs are great potential hires, and it’s a comfortable setting in which to recruit. Like the “X helping X” groups you talk about, these classrooms are also a revealing environment in which to observe prospective candidates.

Clearly, you already get the idea, and it’s paying off. I’m not at all surprised that your hires from that group are four times more likely to succeed than other hires. When you find people — especially people who’ve overcome problems — where they’re helping one another, you’ve hit a gold mine.

Sheesh — What do people think employers did before the Internet? For that matter, what do people think any of us did before the Internet? (See Network, but don’t be a jerk!)

Thanks for sharing a great tip from the employer side! My compliments!

If you’re a hiring manager, where do you find your hires? Ever invest time in your professional or social communities to meet people you can hire? Have you ever gotten a job this way?

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My references died: how do I get more?

Quick Question

How should a person deal with the fact that his best references for a job have died?

Nick’s Quick Advice

references

Sorry to hear it — but it’s actually a problem we headhunters encounter from time to time. It’s a very real problem, and a challenge, but you must address it. People who can endorse us are actually all around. You just have to stop and see them. That’s how you’ll develop the new references you need.

References are everywhere

Consider people who worked in your department or in related departments. Your best advocates don’t need to be your ex-boss or even someone you worked with directly. For example, if you’re an engineer, there are probably people in your old employer’s manufacturing, quality, and sales departments who can probably speak about you.

Who else saw the work you were doing? Not just other employees — but perhaps customers, vendors, and consultants who worked with your company. Anyone you did work with can speak up for you. But you have to ask them.

Call, don’t e-mail

Call them. Don’t send an e-mail request. References are a personal favor, so demonstrate that you’re willing to make your request personally.

Don’t start by asking them to be references. Just reminisce — try to get them to talk about their memories of when you worked together.

How to Say It

“Hey, remember the X project we both worked on… What did you think of how it turned out?”

Then lead them into a discussion about stuff you worked on. Get them to talk about it. If they can discuss it a bit, you’ve got a reference.

Here’s the magic

Helping people talk about your work and past performance helps them formulate what they’d say later as references. It’s your job to help them talk about it. Then, when you ask them to be a reference, they feel like they’ve got something to say. (See Don’t provide references, LAUNCH them.)

Does this sound like manipulation? It’s not. It’s like priming a pump. By helping people remember, you help them find the phrases they need to talk about you to an employer. Just do it honestly.

(If you’re an employer, see References: How employers bungle a competitive edge.)

Ever provide a surprising reference that helped you land a job? How would you advise this reader?

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WWEJSS: How does a fake recruiting firm get a credit card merchant account?

WWEJSS, LLC — a.k.a. SevenFigureCareers — is a “recruiting” company that does not legally exist, yet major credit card companies have authorized merchant accounts that it uses to fraudulently collect fees for services it never delivers, while it silences its victims with a confidentiality agreement that’s fake, too.

WWEJSSA credit card scam

In a series of recent articles, readers shared their experiences with phony recruiters at SevenFigureCareers (a.k.a. 7F, 7figcareers, and loads of other names) who scammed job seekers out of loads of money:

But, how does a racket like SevenFigureCareers get a merchant account to collect fees via American Express, MasterCard and VISA — then win disputes when victims complain about being scammed?

By getting victims to sign a contract.

To defend against claims of fraudulent credit card charges, 7F tells credit card companies that its “customer” signed a contract and that 7F delivered what it promised under the contract — hence, no refund is due.

One victim, John Rice (not his real name), told me that AmEx said it was a contractual problem between him and 7F because 7F reported it had fulfilled its obligations. AmEx suggested he hire a lawyer after AmEx rejected four requests for a refund.

After reports detailing the scam appeared on this website, AmEx eventually refunded Rice and other cardholders thousands in fees collected by 7F, and cancelled 7F’s merchant account. But it seems that AmEx issued that merchant account without confirming whether 7F is a legal entity. AmEx declined to explain exactly how it vets merchants before signing them up. AmEx also won’t disclose what problems it found with 7F after a phony lawyer threatened a user of this website who spoke up about getting scammed.

The SevenFigureCareers contract is a fraud

Two real lawyers reviewed the 7F contract for Ask The Headhunter. One of them explained the problem:

“A contract is between two parties. If there are not two parties, then there is no contract. This contract is invalid because there’s only one party — the victim.”

When high-salary executives don’t recognize that an agreement they’re signing is invalid, then everyone needs to learn the basics.

Read the contract

Let’s start with the SevenFigureCareers contract. Several victims provided me with copies. Each seems to be coded with an ID at the upper left, to identify the victim. I’ve redacted that.

Here’s why the contract is a fraud, and why AmEx — and MasterCard and VISA — should never have issued merchant accounts to SevenFigureCareers.

7f-contract-1

Although it calls itself by many names, SevenFigureCareers does business under a name its victims don’t see until they receive a contract: WWEJSS, LLC. But this “Texas corporation” does not exist. Thus, there is no contract.

Did credit card companies get scammed, too?

So, how does a fake company collect payments through real credit card accounts? Why would credit card companies with anti-fraud departments authorize merchant accounts for crooks? Good questions, for which we have no answers. And that means you should never assume that paying with a credit card protects you from fraudulent vendors.

Did these credit card companies get scammed, too? How? Will they ever admit it?

Tip: If you have concerns about a company you’re about to contract with, investigate the entity. If SevenFigureCareers’s victims had done due diligence, they’d never have gotten suckered. They never would have paid — even with a credit card. John Rice, a seasoned executive, has said to me several times, “I was such a dumb shit.” Yes, he knew better — but he suspended his concerns because he figured American Express would protect him from losses. American Express, however, apparently didn’t take reasonable precautions to protect Rice from this phony merchant.

Caveat emptor really does mean that due diligence is always your responsibility.

WWEJSS, LLC is a fraud

American Express credit card charges from SevenFigureCareers appear as WWEJSS, LLC or WWJESS, LLC on victims’ statements.

After doing some basic research, one victim learned the company is not licensed in Texas and confronted 7F recruiter “Tony French.” French replied in an e-mail that SevenFigureCareers doesn’t have to be licensed, but that it is registered in Texas under “WWEJSS, LLC.”

7f-e-mail-1

On September 29, I contacted the office of the Texas Secretary of State. Victoria, a helpful employee, told me that, “If it’s a legal entity, like a Texas corporation or LLC or limited partnership, it has to be registered with the State, even if it only does e-commerce.”

She then looked up WWEJSS, LLC and WWJESS, LLC, “a Texas corporation,” in the Texas registry.

“There is no WWEJSS or WWJESS registered,” Victoria reported.

That makes Tony French a liar and his “company” illegal.

7f-whitetailsHunting… scammers, or deer?

Nor is there a registration for SevenFigureCareers, Seven Figure Careers, 7Figures, or any other such name. (In 1993, “Seven Figure, Inc.” was registered to Carl Poston, but that expired in 1996.)

There is, however, a registration for 7F, Inc. — to Gary Benbow in Yoakum, Texas. I spoke with Gary, who runs the respected 7F Whitetails Ranch. The 7F comes from an old cattle brand that’s been in his family for generations. He’s never heard of SevenFigureCareers. Gary’s not in the recruiting business. His family raises cattle and offers trophy deer hunting on the property. And he’s not happy about scammers tarnishing his registered brand.

Targeting the credit card companies

American Express and other credit card companies have permitted an unregistered legal entity to collect payments with their credit cards even after the victims gave notice that this merchant is a fraud. Apparently, AmEx failed to do the simplest due diligence. (When I asked, AmEx would not disclose exactly how it vets its merchants.) Then AmEx rejected requests for refunds out of hand, relying on what we now know is an invalid contract used by a fake company operating illegally in Texas.

These credit card companies have put a target on their own backs that says “Fraud.” I didn’t ask Gary Benbow whether he takes credit cards. But I’m sure he’d love to find the guys who call themselves 7F.

As of the date of this column, Texas Company Search lists no registrations for any of the SevenFigureCareers legal entities — least of all WWEJSS, LLC, the name listed on its contracts.

WWEJSS: How it silences its victims

It seems clear that WWEJSS has flourished because it keeps its victims quiet.

After John Rice’s credit card dispute was rejected, he posted about the scam on this website. Within minutes, SevenFigures silenced Rice with an e-mail. A phony lawyer “representing” SevenFigures threatened him with a contractual penalty of $25,000 if he didn’t remove what he posted. It was actually that threat that publicly unraveled the entire SevenFigureCareers scam.

What scared Rice and other victims into silence is an intimidating non-disclosure clause (or NDA, or Non-Disclosure Agreement) in the contract — “Mutual Confidentiality Regarding ENTIRE AGREEMENT and your Search.”

The NDA threat

We’ll forget for a minute that the entire contract is invalid because WWEJSS doesn’t exist. Let’s take a look at what these people agreed to — and at what a lawyer says about it.

7f-contract-2

This clause essentially says that the signer can’t reveal anything about their experience with 7F, or comment about it anywhere to anyone. Victims I interviewed were convinced that, even if they knew they’d been scammed, they’d have to pay 7F $25,000 if they told anyone.

But, this section of the contract by itself wouldn’t stand up in court, say two attorneys who reviewed it. That is, it seems there is no danger to SevenFigures’ victims if they tell all to the world. (Note: The opinions of the lawyers I spoke with are not legal advice. If you have a specific contractual controversy, you need to get advice from a lawyer about your specific problem.)

Phony Lawyering: liquidated damages & penalties

It’s worth understanding a legal concept that’s key to many contracts. The idea is pretty simple. If we bind ourselves with a contract, and I do something that violates our contract, I will cause you damage, and I must reimburse you for that damage.

But, how much could the damages be worth? The law acknowledges this can be hard to calculate. Here’s how one lawyer explains it:

In situations where it’s not practical or maybe possible to come up with an actual number, in a contract parties can “pre-decide” what the damages will be (called liquidated damages), but there has to be a reasonable relation to the actual harm caused. It can’t just be some outlandish number like a bazillion dollars because then that would be more like a “penalty” and less like compensation for actual damages received.

If a court (judge) feels like the amount pre-decided (the liquidated damages) is actually a penalty then they may decide to throw out that figure. That is why lawyers go to great lengths when using a liquidated damages clause to make it seem as far from a penalty as possible, starting with not calling it a penalty!

7f-contract-3In this lawyer’s opinion, the fact that the contract calls the payment a “penalty” would probably invalidate any damages claim. What this — along with the other sloppy wording and writing in this “contract” — tells us is that a lawyer didn’t write it.

My guess is it was written by the same putz who impersonated a lawyer — illegal in all 50 states — in the e-mail threatening John Rice.

This is how 7F silences its victims, using an unenforceable confidentiality agreement in a fraudulent contract to intimidate them into keeping their mouths shut. They naturally worry that speaking up would cost them $25,000 for violating confidentiality. But liquidated damages normally can’t be a penalty — only compensation for damage.

Go suck rocks.

All that Tony French’s victims have to do is tell him to go suck rocks when he threatens them. And that’s why we’re having this brief legal lesson, courtesy of two friendly lawyers who hate scammers.

(We won’t get into it here, but SevenFigureCareers violated its own NDA when Tony French shared confidential communications from his private equity “clients” with the candidates he was supposedly recruiting. Except those PE clients don’t exist — so where’s the harm?)

Who should sue whom?

Well, it seems Mr. French might be doing more than sucking on rocks soon.

I asked Lawrence Barty, a retired attorney who has specialized in employment and labor law, for his views on this case. He suggests the SevenFigureCareers victims may have grounds to sue whoever is behind this phony recruiting firm. Even though SevenFigureCareers doesn’t legally exist, someone convinced the victims that the firm does exist and that the contract is real. And that person faces trouble.

The persuasion of this “person” led you into a situation in which you lost money. If you have a legal claim, it can’t be against an entity that doesn’t exist — right? So who can you sue?

If you can identify the person who perpetrated this fraud, a tort claim of fraudulent inducement might be possible (as always, State laws vary) against that person — not against the illusory 7F. You were induced by X (identity presently unknown) to enter into a contract that cost you money, but was known in advance by X to be worthless. So, you should sue X, the person who tricked you into entering that contract. A claim of that type can be a tort claim, possibly giving rise to compensatory and punitive damages.

Ah. Now we get to penalties. Not just compensatory damages, but punitive damages. Except now the penalty is against the scammer.

This is tricky stuff — maybe more than your readers need to know. The threshold issue is to identify and locate who is behind 7F. You can’t sue someone whom you can’t identify. And, because he is a crook by any definition, he therefore is likely to be a very, very elusive target.

Yah — like a deer on Gary Benbow’s ranch.

What’s next?

Since this series about SevenFigureCareers.com was published, the “firm’s” website has gone dark. Many of the associated phony websites of phony private equity and venture capital firms have disappeared. But SevenFigureCareers continues to operate and collect fees, with a web presence on Manta, a business web-hosting service. It’s newest customers have been in touch with Ask The Headhunter — after they lost their money.

Where is the crook? Has American Express found him?

How does someone running a fake company get merchant accounts with American Express, VISA and MasterCard? What basic controls against fraud do these credit card companies have in place? I mean — how hard is it to look up a corporation’s or LLC’s credentials? A dog with a note in its mouth can do it.

In the next edition, we’ll go down to the bottom of this wormhole: Who’s behind the SevenFigureCareers recruiting scam?

Are you one of the victims scammed by SevenFigureCareers? Or did you see the scam coming and walk the other way? How would you avoid getting fleeced by a “career service?” What due diligence do you do?

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American Express fires recruiting scam merchant “7F”

After realizing they’d been ripped off for thousands of dollars by phony recruiters when they used their American Express cards to pay for “services,” Cate Bruner and John Rice (not their real names) found an active discussion about SevenFigureCareers (a.k.a. 7F) on this website.

Rice learned the 7F lawyer who had threatened him into silence was bogus. Bruner learned the private equity partners she had interviewed with were frauds.

Other readers who had been solicited and scammed by 7F recruiters shared their experiences, as well as documents, phone numbers, voice mails and e-mails they’d saved. Crowd-sourced evidence was quickly gathered in the community and late last week American Express fired the recruiting scam merchant — SevenFigureCareers.

“We did our own research based on some of the things you highlighted,” said American Express spokesperson Ashley Tufts. “We have cancelled the merchant.”


UPDATE : Sometime today, Oct. 12, 2016, the SevenFigureCareers.com website went dark.
Readers have reported the firm is doing business on Facebook and at Manta:
https://www.facebook.com/ArthurFrench.SevenFiguresCareerS/
http://www.manta.com/c/mx6hngr/sevenfigurecareers


American Express fires SevenFigureCareers

When I contacted American Express, the credit card company immediately put its fraud team on the matter. Within a matter of days, it took action.

“We always want to do what’s best for our card members,” Tufts told me, “and one of our policies is that if it’s a fraudulent charge our card members aren’t liable for that.”

She could not comment on exactly what AmEx found when it researched SevenFigureCareers, but said, “We did determine that we wanted to cancel the relationship. They will no longer be able to accept American Express cards. They’re no longer a merchant.”

What to do if you got scammed by 7F

7F uses so many business names that I gave up trying to track them all down. Most are permutations and abbreviations of Seven, 7, figure, and careers. The scam usually starts with an e-mail from Tony French or Art French. For more details, see 7F: Anatomy of A Recruiting Scam.

“If a Card Member has questions about their purchases with this merchant, they should call the number on the back of their Card,” advised Tufts.

So how did 7F slip by?

amex-partner7F victim John Rice said he put aside his misgivings about signing a contract with 7F when he saw the big American Express Partner logo on 7F’s website: “It gave me the confidence to do business with them, because I figured I could get my money back if anything went wrong.” And boy, did it go wrong.

“They promised interviews for six- and seven-figure jobs,” said Rice, “but delivered short phone calls with illiterate phonies.”

Rice filed disputes with AmEx, but didn’t get anywhere. “They said, ‘I’m sorry,’ and I was out $2,500, but I learned a lesson.”

But it seems credit card fraud — whether it’s AmEx, VISA or MasterCard — usually pertains to unauthorized charges being made on your card, or to merchants not delivering what was promised. It seems the credit card companies have a harder time identifying phony merchants.

I asked American Express a few questions

1. How does AmEx verify that a merchant is legitimate before authorizing it to collect payments?

“We have a number of steps we go through when signing up a merchant to accept American Express, including reviewing both information provided by the merchant and information from external sources. We also require that merchants abide by applicable laws and regulations. After account set-up, we provide ongoing monitoring of merchant accounts.”

2. What is AmEx’s process for investigating and issuing refunds?

“Customers can contact us any time they have a concern about a charge on their American Express Card. Whether it’s a charge they don’t recognize, a service that wasn’t delivered by the merchant or any other reason for a billing inquiry, we are happy to investigate, taking into account both the Card Member and merchant perspectives.”

But giving up is not the answer if a credit card company rejects your dispute. It’s up to you to provide additional information — and that’s what happened here. Loads of people helped crowd-source evidence about SevenFigureCareers.

“We may investigate an inquiry further,” said Tufts, “if a Card Member or merchant provides new or additional information after we review the initial supporting documentation regarding a disputed charge. Based on the investigation, American Express will determine if the Card Member is eligible for a refund.”

3. Doesn’t this kind of thing hurt American Express’s reputation?

“American Express maintains the right to…terminate Card acceptance with merchants that may be harmful to our brand, are illegal or high-risk.”

I judge people and businesses by whether they deliver. American Express jumped on this when I brought it to their attention. Tufts did exactly what she said she’d do, and followed up with me several times by phone and e-mail, when she said she would.

I’ll be happy when I learn John Rice and Cate Bruner have gotten their $2,500 back. I’ll be impressed when I learn American Express has contacted all card holders who lost money to a merchant that AmEx now knows has been operating illegally and fleecing card holders. To me, that’s what brand means.

Will anyone get a refund?

American Express made it clear to me that’s between AmEx and its card holders. Tufts could not disclose to me whether refunds will be issued — the card holders will be contacted directly.

To avoid fraudulent transactions, consumers can visit AmEx’s Security Center to learn more about steps they can take to protect themselves from fraud. It seems we’re all a bit too trusting when we buy stuff — but there’s no assurance that using a credit card will protect you from phony vendors. So check the link and think!

Meanwhile, if you got scammed by SevenFigureCareers, don’t let it slide — this is your chance to try to get your money back again. If you succeed, please let me know.

7F vs. AmEx, MasterCard, VISA

7f-credit-cardsI asked Tufts whether, as a result of identifying a scammer merchant, American Express will notify MasterCard and VISA.

“Yes,” she wrote me. “We may report a business name and the name of their principals to the MATCH™ (Member Alert to Control High Risk Merchants) listing maintained by MasterCard.”

It’s ironic — I reported in another article that Art French touts 7F’s cool new technology of the same name!

“7F has developed an automated MATCH technology platform, a different approach to executive recruiting which gives us a significant competitive advantage in the marketplace.”

It’s poetic justice: MATCH™ is being deployed against a phony MATCH. We’ll see which works better — the one that rips people off, or the one that stops fraud.

Company brand & community responsibility

Where does this episode end? With a few people getting their money back? With a phony merchant losing its ability to collect payments using credit card accounts?

If the merchant is operating illegally, this ends when the merchant gets hauled before the authorities, goes to court, is tried, fined and goes to jail. I believe that’s AmEx’s responsibility — and VISA’s and MasterCard’s — to the community it serves and does business with.

If all a credit card company does is cut off a crooked merchant’s account — that’s not responsible community  behavior. And it’s not a smart brand strategy.

Community responsibility means:

  • Taking legal action against scofflaws to protect the community and the company’s brand.
  • Notifying all AmEx card holders who’ve been scammed by SevenFigureCareers — whether last month, last year, or two or more years ago — that their money was taken illegally.
  • Using all legal means to get all victims their money back.

I realize AmEx can’t disclose its legal matters. But if the company files charges against SevenFigureCareers, that’s a matter of public record, so AmEx should make its actions public.

A company’s brand is defined by how it treats its community.

Only American Express has all the evidence and information necessary to prosecute SevenFigureCareers. Will it protect its brand by protecting its community?

How did we bust SevenFigureCareers?

It’s important to understand what kind of crowd-sourced information led to this consumer win. I’ll lay it out in the next Ask The Headhunter newsletter and here on the website: WWEJSS: How does a fake recruiting firm get a credit card merchant account?

Thanks to members of this community for looking out for one another, and thank you to American Express for its timely action.

Sign up for the newsletter if you don’t already get it — it’s free, it’s weekly, it arrives in your e-mail, and it’s loaded with answers to daunting job-search challenges real people face, in a Q&A format.

Then join us here for the post mortem to learn how to recognize recruiting and career scams — including funky contracts and con artists. There’s lots more to this story!

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SevenFigureCareers: Threats and fraud

When someone threatens a member of this community, I get upset. For the past 10 days I’ve been doing research on SevenFigureCareers to find out who’s behind it. I found myself going down an Internet wormhole. Now I’m back out.

sevenfigurecareersSevenFigureCareers

SevenFigureCareers claims to be a “Recruiter Network” with “over 2,400 Associates” and “Over 1,600 Private Equity Contacts.” For a fee, it will give you “Access to Confidential Jobs” and “Hidden Opportunities.” (See SevenFigureCareers: Had an encounter?)

After John Rice [not his real name] had a bad experience, he found the Ask The Headhunter community was already talking about SevenFigureCareers. So he posted in the comments section, and requested more information from others.

Within a matter of minutes, he sent me an e-mail:

“Hey, Nick — Please take down the post I made today re: Arthur French.”

As long as someone isn’t playing games, I respect a reader’s wishes. We all sometimes blurt out something in a discussion forum that we wish we could take back. So I removed John’s comment, but I asked why he wanted it taken down. “Call me,” he wrote back.

Threats

Rice was irritated and worried.

“As soon as I posted my comment, I got an e-mail instantly from an attorney in Texas. Cease and desist, it said. Then somebody else from SevenFigures contacted me and said, if you take it down we won’t sue you. That’s when I contacted you.”

7f-threat-xI asked John if he’d called the lawyer. Of course, he said. He left a voicemail because no one answered — but the lawyer never called him back.

Much of a headhunter’s time is spent doing research, specifically, checking people out. It’s hard to hide from me if you’re trying to do business with me. Or if you’re causing trouble.

When I research people, I go to independent sources where I know I’m getting information they cannot manipulate. The State Bar of Texas was my first stop. And there was the lawyer in the directory — same name, different phone number. His record was reported as clean.

I wanted to make the call myself, but I know better than to interfere in a legal matter — so I asked John to call the lawyer at the number I’d found listed for him on the State Bar website. John’s my kind of guy — he didn’t hesitate and was excited about getting to the bottom of this.

Fraud

We both expected we’d find a kind of Better Call Saul attorney — a slime who would write a nastygram like that for a fee. What troubled me was how sloppy the e-mail was. I’m not a lawyer, but my lawyer has taught me enough about contracts and legal documents that I couldn’t imagine a real lawyer writing crap like that.

John called back shortly.

“Nick, I can’t believe it. He says he didn’t write the e-mail. Had nothing to do with it. But he’s pissed off.”

Frankly, I couldn’t believe it, either. Who would be stupid enough to impersonate a lawyer so brazenly?

With John’s permission, I called the lawyer myself. He said the threatening e-mail “was definitely not from me.” However, he had done some work for “a SevenFigures entity” about a year ago but had not had any relationship with them “for quite some time.”

The lawyer

He didn’t recognize any of the names connected to the firm that Rice and I shared with him — including Arthur French –, but he would not go into the details of work he had done for his client. This is exactly what a lawyer should say.

Since he had spoken to Rice, he said he had been “trying to figure out who was behind that e-mail” but has not been able to. He closed by saying he was going to contact his old client, and the Texas Bar Association, because he was “extremely concerned about the use of my name.”

Was he telling the truth? He was being as cagey as a good attorney should be, and I have no concrete evidence that he was involved, so I am not publishing his name unless I learn otherwise.

Meanwhile, I shared the e-mail with a New York consumer class action attorney. His comment:

“Engaging in the unauthorized practice of law is a crime in Texas (and every other state). See this link: http://www.txuplc.org/. Please keep me updated.”

What matters most is that the e-mail threat came from a sevenfigurecareers.com address, and someone at the firm was impersonating an attorney. That’s a crime. Fraud. [UPDATE: Shortly after this article was published, the SevenFigureCareers website was shuttered.]

The phone number

A search for the telephone number of the lawyer in the e-mail turned up a surprise: a press release (dated September 1, 2016) on Online PR Media about “7F-SevenFigCareers” including a media contact named Philip A. Alia. (I’m disclosing the PR agent’s name because, unlike the lawyer, he has made his connection to SevenFigures public, online.) Beneath his name is a contact number: the same number under the lawyer’s name in the threatening e-mail.

What putz would put out a fake threat from a lawyer and list a phone number that traces back to his own company’s press release? (See Stupid Recruiter Story #1.)

I tracked down Alia like I did the lawyer — through other independent sources. He’s a public relations consultant, and said he had done just one press release for “CR Nicholas” at SevenFigureCareers in December 2015. He admitted he didn’t even write it. He just placed it in the media. Alia also knew Arthur French, who is quoted in the press release. But Alia said he had done no other work for them. When I pointed out the September 1, 2016 press release, he seemed genuinely surprised. He had nothing to do with it — so I suggested he might want to bill them for it. There is no indication Alia has any other connection to SevenFigureCareers.

Alia’s experience seems to mirror the lawyer’s. One assignment for each, then SevenFigures appropriated their names and used them fraudulently. In the case of the lawyer, someone at SevenFigureCareers impersonated a Texas attorney to threaten and intimidate John Rice.

I won’t stand by when scammers threaten members of this community.

7f-logoEarlier today the SevenFigureCareers.com website was altered. The 7F logo is gone as is much of the promotional verbiage. Most of the site is now locked down behind passwords. If you type the URL into your browser, the site comes up. But if you click a link to get there, the site yields a blank page with “Nope” in a box at the top. (But if you then put your cursor at the end of the URL in your browser and hit Enter again, the site comes up.) It seems they are trying to avoid inbound links from other sites — like from this article.

7F

It turns out 7F has an interesting history. It’s an old Texas cattle brand, originated by the grandfather of a rancher whose business has long been registered as 7F, Inc. with the Texas Secretary of State. We had a long talk. He and his brand have got nothing to do with SevenFigureCareers — but he sure wants to know who’s using his grandfather’s brand as their logo.

How does a phony recruiting firm operate? See 7F: Anatomy of A Recruiting Scam.

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Stupid Recruiter Story #1

In the October 4, 2016 Ask The Headhunter Newsletter, a guy minding his own business meets a dog from another city.

Would you be a stupid recruiter? Let’s see how you perform. Try this exercise.

I’m going to give you $50 and tell you to buy and bring me a dog within 60 minutes — any kind of dog, and you can obtain it anywhere you like. (But you can’t keep the change. recruiter-dogIf there’s any change, we donate it to an animal shelter.) The sooner you appear with a dog, the bigger the bonus you’ll earn — up to $1,000.

You can start from one of two locations, and I’ll take you to either place you choose, but you have to make your own way back to me with the dog. One location is Grand Central Station in New York City. The other is an animal shelter in Princeton, New Jersey.

I’ll be waiting for you at the train station in Princeton. Ready? This will reveal what kind of recruiter you’d be.

Stupid recruiter?

According to the federal government, to news media, to human resources experts and employers, there’s a massive skills and talent shortage. That’s why companies can’t fill jobs. It’s akin to the startling shortage of dogs in Grand Central Station. So armies of recruiters are being deployed daily to find the right talent. Most of them are stupid.

What kind of recruiter would you be? (Hey, that could be a new interview question.) Would you chose to start looking for a dog at an animal shelter? Every day, platoons of stupid recruiters look for dogs in Grand Central Station and the Grand Canyon, by waving a “dog wanted” sign on the New Jersey Turnpike, and in dark caves.

Reader Stephen Liss sent in this e-mail exchange he had with a stupid recruiter who solicited him for a job. Liss didn’t even have a question for me. He was just tired of being mistaken for a dog.

From a recruiter

We noticed your information on the job boards or in our database and thought you may have an interest in an opportunity with a large F500 client in the Rochester,  NY area. Here are the details:

We are looking for a Technical Writer in Rochester, NY to work with one of our major clients. Please go over the details and let me know your interest.

Technical Writer with PM Skills in Rochester,  NY
6+ Months
Pay Rate: $36/hr on W2 / $40/hr on C2C
Key Skills: Technical Writing, Some Project Management Background/Skills

[truncated… I mean, who wants to read the rest?]

Stephen Liss replies

You want me to relocate from the west coast for $36/hr? Please take me off your list.

The recruiter’s response

We get these opportunities everywhere. Unfortunately our software doesn’t work by location only by skill set.

First of all, these recruiters “notice” you “everywhere” — on job boards, in databases, by sniffing telephone poles… Sheesh. Does this dog even hunt or does it just snap at whatever comes along?

The recruiter’s software organizes jobs and people by skill set only. Not by location. It doesn’t matter where the dogs are. Or where the dog has to be shipped, or how much shipping costs. The software will shout into the Grand Canyon, then move on to the Turnpike. So will most recruiters. They’re like Energizer bunnies — they will bump into anything, turn, and keep going until they find a dog.

And they will pay only $36.

Got that?

tom-perez-catThe U. S. Department of Labor

In an interview about the “talent shortage,” Tom Perez, Secretary of the U.S. Department of Labor, tried to explain why employers can’t find the people they need to fill jobs:

“I speak to a lot of business leaders who are trying to hire. They want to hire. And the most frequent thing I hear from them is too many people coming through the door don’t have the skills necessary to do the job I need to do.”

Did you get that? The business leaders Perez talks to are counting people “coming through the door.” Thomas Perez thinks he’s hanging around with business leaders?

Hey, schmuck! Nobody walks up and hands you what you want. You have to go look for the people you need where they hang out! Be the leader of your pack! Figure it out! Stop hanging around Grand Central Station peeing on poles to attract talent. Go hunt, because a pooch isn’t going to walk up with a perfect resume in its mouth. Woof.

(Many thanks to Stephen Liss for sharing that roadkill of a recruiter solicitation.)

What proportion of recruiter requests match you and the work you do? How many are just dogs? I’m looking for Stupid Recruiter Story #2.

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