The Web seems to be full of recruiting scams targeted at job seekers. They often use social media to lure victims. Should we accept interviews using services like Twitter and Google Hangouts?
It’s not clear whether you’re referring to being recruited for an interview via Twitter and Google Hangouts, or whether you’re going to actually be interviewed that way. Regardless, social media do indeed seem to be popular for recruiting scams.
Interviews: Person-to-person only
My rule is that interviews should be on the phone or in person, or via Skype — but no video. I’m not a fan of video interviews or automated interviews of any kind.
A recruiter or employer that asks you to invest your personal time to participate in a job interview must be willing to do the same. If they expect you to “interview” indirectly or virtually, I suggest you tell them you want a person-to-person interview, or move on. (See HireVue Video Interviews: HR insults talent in a talent shortage.)
Use multiple online resources to verify identity
If a recruiter uses Google Hangouts (or Facebook or LinkedIn or some other social network) to recruit you and to schedule an interview, I’d politely ask that they e-mail or call you to confirm the interview. I’d insist on at least a telephone call for the interview itself. Then track their contact information to confirm their identities.
If they are going to initiate the phone call, ask them to:
provide their telephone number anyway
along with their street address
and their LinkedIn page.
Then look them up using multiple online resources to confirm their identity – and that they are legitimate.
Keep in mind that just because a recruiter claims to be working for ABC Company, doesn’t mean they really are. Make sure the contact information they provide resolves back to the employer whose job you’re interested in.
The gold standard
Here’s the gold standard: If you can independently find the company online, call the main telephone number listed and ask for the Human Resources department. If HR doesn’t recognize the person that’s recruiting you, then you will know there’s a problem. Even third-party recruiters have identities that you should be able to verify.
For examples of questionable recruiting solicitations shared by readers, check the most recent comments on this article.
Legit employers will behave transparently. But it’s still your job to check them out first. There are simply too many recruiting scams out there to trust anyone who cannot or will not provide identity information that you can verify independently.
Don’t let the ridiculous levels of automation in the recruiting and hiring process lead you to dispense with your common sense. Even if it’s legitimate, any employer that’s so disrespectful as to demand your time without investing its own is probably not worth your consideration.
I hope that helps you select good employers and avoid questionable ones.
Have you ever been scammed by a “recruiter?” What tipped you off that it was a scam? Do you agree to job interviews via social media?
Earlier this week a recruiter contacted me. The salary was stated as a maximum only, and it would mean a 20% raise from my current salary. Even though I am not looking, I went ahead and applied. Following your advice, I asked who the company was and the recruiter told me “in confidence.” I disclosed that I know someone there, but didn’t give a name. The recruiter said he could still submit my name, so I gave him a PDF copy of my resume.
Things changed fast! First, he said I would be required to fill out an online application for the HR department. But I couldn’t proceed with the application unless I put in a numerical value for salary. I asked about this and he said whatever I put in could be discussed later. I put in $0. There was also a short “personality test.”I completed all this by mid-day Friday. By noon on Saturday, I got a rejection notice. BAM!
Could it be my salary expectations were too high? The recruiter recommended I come down, but because I’m not desperate I did not. Could it be that HR was totally offended that I was non-compliant? My feeling is that a junior HR person went over this and saw one thing out of order, and eliminated me. I seriously doubt that this application got further.
The bottom line is that I would not want to work for these people anyway, but I will admit that such a rapid-fire rejection hurts. Maybe I will hear from the recruiter as the week begins, or maybe not.
Next time I will ask if the recruiter’s contact is a hiring manager or HR. If it’s HR and not a manager, I will pass. So this was a good lesson learned. It cost nothing. Insofar as missing out on the raise? No problem there because I am not yet vested with my current company and I would lose the equivalent of the raise if I moved now.
Two last questions: Why does just about every recruiter who contacts me seem like a slime ball? How can they sleep at night?
Welcome to the biggest recruiting scam going: job applications. Thousands if not millions are victimized daily. They don’t even realize it. You didn’t get recruited. You got scammed. And it’s legal. Employers encourage recruiters to scam you every day.
A recruiter contacted you to recruit you. That is, he’s out scouring the world for the right candidates for his client. He identifies the best, and then he goes after them — he pursues them. He and his client still need to interview you to be sure you’re right enough, of course, but they chose you and now they’re approaching you, enticing you, seducing you, cajoling you, trying to convince you — the guy they selected to go after — to consider a job there. They’re trying hard to impress you with an opportunity so you’ll invest your valuable time to talk with them.
Is that how this process felt to you? Of course not.
Recruiting you to fill out a job application
You were not recruited for a job. You were recruited to fill out a job application.
You were recruited off the street to do what anyone does to apply for a job they found posted on a job board. My guess is the employer is not even the recruiter’s client. I doubt they have a contract. The recruiter is hoping to throw enough job applications at this employer, in the hope one might “stick” so the employer might pay the recruiter a fee.
The recruiter led you down the path every other job seeker takes on their own. Like every other job seeker that is summarily rejected instantly, you got rejected. No surprise!
The only difference between job applicants who go through the process and you is this: If by some miracle you had been hired, the recruiter would have earned a big fee for doing nothing but ushering random people through the application process.
I’ll say it again: You were recruited not for a job, but to fill out a job application.
Recruiting to fill a job
Here’s what recruiting really looks like. Last week I finally reached a person I’ve been trying to recruit for almost a month. She’s a good candidate for my client. The president of the company and I carefully selected her because our research showed she fit our carefully defined criteria. I knew exactly why I was reaching out to her.
When I finally reached her, it was to set up an interview with the president of the company. No forms. No online links. No personality tests. No obstacles.
My job for a month was to eliminate obstacles so my client could talk to her. I never asked her for her salary information. I still don’t know it, and I don’t care what it is. When I finally got her on the phone, I spent most of the time trying to impress her. I didn’t want to let her get away.
My goal has been to pursue and persuade her to talk with my client about a job — and to impress her with the opportunity so that we’d have a good chance of hiring her. Why would we risk offending her by making her jump through hoops? That would not have impressed her!
How to test a headhunter
Who are some of the headhunter’s clients? Get the names of companies and managers.
Who has she placed? Get the names of a few candidates placed recently and a year or two ago.
Recruiters like this one sleep at night by mentally counting all the lottery tickets they’ve acquired — job seekers they’ve convinced to fill out job applications. Then they dream that a company will pay off on one of them.
The daily recruiting scam is a numbers game. Recruiters play it because sometimes it pays off — just like everyone else plays the lottery.
How to save loads of time
The recruiter’s trick is to get you to spend loads of time applying for a job that pays “20% more than you’re making!” It’s a simple rule of behavioral psychology: The more the recruiter can get you to do, the more you will then rationalize doing even more to comply. So the recruiter’s goal is to get you to start complying.
You ask what to do next time. Here’s a quick and sure way to save loads of time. The next time a recruiter contacts you, ask this question:
If the recruiter answers with a list of tasks for you to do first — submit your resume, complete online forms, take a test, disclose your salary — tell the recruiter to take a flying leap into a cactus bush.
It takes a mental re-set to realize what that guy did to you. He made you apply for a job. It’s the daily recruiting scam.
How do you sort out the recruiters? What percentage of contacts from recruiters have resulted in face-to-face job interviews for you? At what point should the reader above have recognized what was going on?
Victims of the SevenFigureCareers recruiting scam report they’re getting their money back — but not from SevenFigureCareers. Major credit card companies have refunded $2,500 fees collected by the phony recruiting firm — simply upon request.
Credit card disputes rejected
Last year, after paying $2,500 for phony job interviews with phony private equity firms, victims of SevenFigureCareers had to submit documentation to their credit card companies and wait for lengthy “chargeback reviews,” only to be rejected.
For example, American Express cardholders said their disputes were denied after SevenFigures defended the charges by submitting copies of contracts the victims signed.
“Something told me it might be a ripoff,” said one American Express cardholder who was recruited for a top-level job. “But they had a big American Express Partner logo on their website, so I thought it must be legit. Worst case, AmEx would protect me, right? They didn’t.”
More than one victim was told by American Express to hire a lawyer and go after SevenFigures on their own.
After Ask The Headhunter published information last October showing the merchant was not a legally registered entity, American Express and VISA started issuing full refunds.
Now victims requesting refunds report their credit card companies are not requiring dispute forms or documentation. Most recently, VISA credit card holders reported getting instant approval on the phone for their $2,500 refunds. Some got refunds almost a year after they got ripped off.
“After I read about it on your website,” a victim told Ask The Headhunter, “I made careful notes from the articles and called VISA with my facts. It took seven minutes to get the refund.”
How to get your money back
If you believe you were scammed by SevenFigureCareers, it seems all you have to do is call your credit card company’s fraud office (check the back of your card for the telephone number) and dispute the charge. It helps to have your credit card bill handy.
The merchant is listed on bills not as “SevenFigureCareers” — or any of the multitude of other names it uses, including 7F, 7Figures, 7Figs and SevenFigureS.
Who charged you?
The merchant appears on credit card bills as “WWJESS, LLC” and may include the phone number 832 912-4445.
“I told VISA it was an unauthorized charge,” said another victim. “After I read complaints from other people and your articles about SevenFigures, I realized I was a victim of fraud because the contract I signed was not legal. Art French, the recruiter who did this, called his business SevenFigureCareers. That’s not the name on the contract or on my bill. The Texas company on the contract is WWEJSS and on the bill it’s WWJESS. None of these are registered in Texas. I called and checked myself. After I read your articles, VISA gave me my money back with no argument. There was no job, there was no PE firm, it wasn’t an interview and there’s nobody named Art French!”
One look at the contract victims signed show they were contracting with WWEJSS, LLC — not WWJESS, LLC. What a difference the position of a J makes!
Perhaps more important, the “Texas corporation” on the contract is not legally registered. The Secretary of State of Texas, which requires any entity doing business from Texas to be registered, says it has no record of WWJESS, LLC, or wwejss, LLC, or WWEJSS, LLC. Nor, for that matter, is SevenFigureCareers registered. (7F, Inc., however, is registered. It’s a respected cattle ranch and has no connection to the scam.)
“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.”
In other words, credit card companies use a fraud database that includes not just the names of companies, but names of the people behind them. When one credit card company gets burned, it lets the others know.
A scam by another name
Did you lose money to a recruiting scam that sounds like this one, but the names were different? The scammers behind SevenFigureCareers are already using other names. We will publish a list shortly. Sign up for e-mail updates using the Updates by e-mail link on the right-hand sidebar of this page, near the top.
Don’t be embarrassed
Scammers depend on their victims’ shame and embarrassment to keep them quiet. If you lost money to this scam, call the fraud office of American Express, VISA, MasterCard or any credit card you used. Get your money back.
Have you been scammed by SevenFigureCareers? Did you get your money back? Add your case to our log: Send us an e-mail with your details. Ask The Headhunter will not publish any of your information without your permission. Logs will be shared with federal authorities.
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.
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.
So, 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.
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.
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.
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.
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.)
One 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.)
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.
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. According 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.
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.
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.
The most recent iteration of this recruiting scam has been documented extensively on Ask The Headhunter.
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.
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.
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:
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.
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”:
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.
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.
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.
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.
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.
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.
Complaints dated 2013-2016 appear on Facebook, Yelp, 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.
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.
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.
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.
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.
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?
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:
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:
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.
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.
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:
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.
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.”
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.
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.
A 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.
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.”
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.
Hunting… 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.
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!
In 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.
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.
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?
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.
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.”
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?
7F 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
I 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?
Thanks to members of this community for looking out for one another, and thank you to American Express for its timely action.
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I applied for a job on Indeed.com at a medical facility. A person called representing herself as working for the facility. She did a five-minute pre-screening interview, and set me up for a phone interview with an HR representative. The short version of this long story is that the organization wanted to hire me, but wasn’t able to because of a recruiting fee of $12,000.
I’ve been informed that this recruiting company has put a six-month “lock” on my name. Is this legal? This kind of thing has never happened to me before. I’m appalled that they can get away with it! Do I need to contact the state attorney general’s office? I never signed any documents stating any agreement for them to represent me. Please help!
This is a deep crack in the law that you’ve fallen into. Employment agencies and third party recruiters (a.k.a. headhunters) are not regulated everywhere. The recruiter has submitted your resume as one of her referrals — and if the employer hires you as a result of that referral, it may owe the recruiter a fee.
(Of course, the recruiter serves a purpose. Without her, you may not have gotten the interviews with this employer. But her intervention should not cost you a job!)
I’d do two things.
Get the facts first
Call the employer’s HR office. Don’t tell them what happened. Just ask whether they have a contract with that recruiter.
My guess is they do not, but the recruiter’s referral may be interpreted by the employer as an obligation to pay a fee to hire you. That’s the crack in the law.
Recruiters will sometimes find and use resumes like yours as an entree to a company they don’t have a contract with. They will threaten the employer with a lawsuit to collect a fee, because they were the source of the referral. This may not stand up in court, but the easy way out for the employer is not to hire you. So you lose. My guess is that’s what’s going on here. The loose interpretation of the law might be that if the hospital hires you within six months of the referral, it owes the fee. After that, there’s no fee. That’s what the “lock” refers to.
But all this is questionable. What recruiters like this one bank on is an HR department’s unwillingness to risk legal action — which is silly.
What’s important for you to realize is that — I’m sorry to say — you are at least partly responsible for all this:
Have you ever put your resume on an online job board? Then you may have slimed yourself because anyone who has access to that resume can do exactly what that troublesome headhunter did with your implied blessing. You’d have a hard time convincing a judge or jury that the headhunter did anything wrong if your resume is already widely available.
The second thing I’d do is call your state’s department of commerce. Find out whether the recruiter is licensed. Not all states require licensing. If yours does, and she’s not, she’s out of luck. I’d explain that to the employer — and I’d turn her in to the authorities..
Of course, it’s possible the recruiter has a contract with the hospital. In that case, what the lock means is the hospital has agreed to pay a referral fee for up to six months after a referral is made. Thus the lock is not on your name, but on the employer. You are not bound by a contract you are not a party to.
But here’s the risk you face, and it’s significant: If this recruiter circulates your resume to lots of employers, under her letterhead, such referrals may be construed by those employers as an obligation to pay a fee to hire you — even if you later apply directly. A good headhunter or recruiter would never refer you to any employer without your knowledge or consent. An unsavory recruiter will plaster your resume all over kingdom come — under her letterhead.
There are two sections of How to Work With Headhunters… and how to make headhunters work for you that you’ll find helpful in the future. “How should I judge a headhunter?”, pp. 26-27, defines a set of standards that good headhunters adhere to. “How should I qualify a headhunter?”, pp. 28-33, goes into great detail about how you can separate the good headhunters from the unsavory ones.
Some of the book is about how to protect yourself, but most of it is about how to leverage headhunters and recruiters to your advantage.
Assert yourself & protect yourself
I would immediately send the recruiter a certified letter, with a return receipt, stating that she is not to refer you to any employers, and demanding that she notify you what companies she may have already referred you to. Again, recruiters like this one bank on people not fighting them legally. It can be a nasty game.
Depending on what you learn, you may want to contact your state’s department of labor and employment. Explain what happened and ask their advice. If the recruiter misrepresented herself as an employer, I’d consider filing a complaint of consumer fraud and possibly identity theft, citing the recruiter’s misrepresentations, and for her failure to tell you that it would cost a fee to hire you.
Much depends on whether the employer is willing to stand up to the recruiter. I doubt the employer or the recruiter would want to see an article in the newspaper about a job seeker in a tough market finding out he got screwed out of a job because of all this.
I’d love to know what you learn and decide to do. This is a murky situation because much depends on who did what, and on whether the employer has a contract with the recruiter.
Keep this in mind: None of these agencies or recruiters work for you. Their client is always the employer. They have no contractual obligation to you, or you to them. Yet many such firms will use phrases like, “We will represent you…” They do not represent you. The employer pays them, and their fiduciary duty is to the employer. But it’s an odd business, because they can imply that they represent you — with the result that employers might lock you out of jobs due to the fee they’d have to pay.
Finally, remember that posting your resume or profile online makes it easy for anyone to “refer” you to an employer and to claim a fee. You can fight this, of course — but good luck, because employers are more likely to protect themselves than fight to hire you.
Has a recruiter or headhunter ever cost you a job? What would you do if you were the job hunter in this week’s Q&A?
It was inevitable: Scammers are stealing job seekers’ identities using over-the-top interview protocols established by employers to gather sensitive personal data. Have employers gone too far demanding too much of job applicants before they even need the information?
Great news! A well-known employer in your area sends you an e-mail saying it wants to interview you by phone — they found your resume online or your profile on LinkedIn. You answer the phone at the appointed time and have a job interview. Perhaps the interviewer makes an offer on the spot — your lucky day! He helps you complete the job application right there on the phone. What’s not to like?
Highmark, a BlueCross BlueShield healthcare company, warns on its website that the interview you think the company just conducted with you was a fraud — and someone stole your private information in the process:
Important Notice Recently, Highmark has received several reports of possible fraudulent online activity in which an individual posing as a Highmark human resources representative contacts job seekers by e-mail or phone/text, conducts interviews and makes employment offers on behalf of the company. In most instances, those contacted have never applied for a position with Highmark. These false job offers are likely made in an attempt to gain access to your private information, such as your social security number.
While fake online job postings are common and used to get you to fill out forms with personal information that can be used to steal your identity, this fraud is bold. Someone posing as a well-known employer actually calls you up and interviews you — and by the time it’s over you’ve got a phony job offer and the scammers have your very real social security number and other private information.
How can this happen?
An alert job seeker might recognize a phony e-mail address behind the official-sounding name of the company and the recruiter. But some won’t. Job seekers are understandably excited to get an e-mail asking for an interview and will quickly follow the “script” we’re all accustomed to — an e-mail expressing interest, a phone interview with a recruiter, and an intimidating demand for highly detailed “job application” information that includes private personal data that no employer really needs — but demands anyway.
Of course, not all victims will believe they just got a job offer on the phone without an in-person interview — but some will. And even if the “recruiter” doesn’t make an offer on the phone, he makes it awfully easy to “complete the application” on the phone while he does all the writing for you. He’ll even write down your social security number and your home address and phone number. What’s not to like?
How employers help scammers steal your SS#
Employers have programmed job seekers to quickly disclose private, confidential information — when there’s no real benefit to doing so, but lots of risk. Long before the employer decides you’re even a serious contender for a job, it demands your home address, your social security number, names and contact information of your references and permission to contact them, your salary history (which you should never disclose) and loads of other information that’s none of their business at this juncture and which they don’t even need. (When you fork over your references, you’re putting them at risk, too — probably not a good idea if you want good references!)
Why do HR departments routinely demand all this information? Simply because they can. You’ve been trained to deliver “the required information” just to apply — while the employer hasn’t even checked your qualifications or indicated the slightest interest in talking with you much less hiring you. (See Does HR Go Too Far When Screening Candidates? — especially comments by HR manager Earl Rice. As you’ll note from the 2003 date on this article, this is not a new employer protocol.)
That’s why you become an easy target for scammers. Scammers exploit the intimidating “script” employers have taught you to follow. That’s how unreasonable, over-the-top job application requirements put you at risk. But it’s even worse.
Where’s your data?
Even a real, live employer that collects your private information puts you at risk. Many employers use third-party applicant tracking systems (ATSes) to log your application information and personal data. It all goes into “the cloud” — and good luck protecting it. When you complete that application, you’re usually asked to sign a waiver that gives the employer and its “agents” (translation: any third parties it deals with but that you don’t know about) permission to do with your data as they please.
You have no idea where your data goes, who has access to it, or how well (if at all) it is secured. Personal job application data is stored in unregulated, central repositories that even employers have no control over. Who controls these enormous databases? Companies like Oracle Taleo, Bullhorn, HRIS, IBM’s Kenexa, iCIMS, JobVite, HireBridge, JobScore, and ADP VirtualEdge among others. (For more about the applicant tracking system racket, see Employment In America: WTF is going on?)
Of course, to apply for a job you must provide basic information. But it’s up to you to be judicious about what you share and at what point in the recruiting process. Do they really need your social security number — when they haven’t even met you or given you any clear indication that they’re going to make a job offer? Most people today have already been brainwashed by the employment system to hand over anything and everything an employer says it “needs” to “process you.”
BAM! It’s that misconception that turns you into a sucker when a phony recruiter calls you and asks for all your data.
It’s time for employers to behave
It’s time for employers to stop demanding information they don’t need to recruit you. Today, HR departments ask for the kitchen sink simply because they have a database for kitchen sinks. “We’ll just get all the person’s data up front, so we don’t have to do it later.” More cynically, “We’ll get all their data before we even decide they’re viable candidates because then we can use a keyword scan to quickly reject people we haven’t even talked to yet.” (Less politely: Presumptuous Employers: Is this HR, or Proctology?)
When employers put some of their own skin in the game, then they can ask applicants to do the same. For example, what’s the salary range on the job? How much did you pay the last guy in that job and the one before that? What’s your Employer Identification Number? May I see some references from your customers, vendors and former employees? How about your credit rating? You’re privately held? I still need that information — I’m privately held, too. Are some of those questions over the top? Hmmm…
It’s also time for job seekers to stop being suckers. You are always free to politely but firmly decline to disclose any information you think is too private to share — until you think it’s warranted to process your job offer. Don’t be a sucker for either a legitimate employer who asks for too much — or for a scammer. See Fearless Job Hunting, Book 8: Play Hardball With Employers for tips about how to stay in control when you’re talking with an employer.
DOL investigators found that the online networking and job-board company “did not record, account and pay for all hours worked in a work-week.”
359 current and former employees were affected at LinkedIn’s branches in California, Illinois, Nebraska and New York. LinkedIn agreed to make restitution to those employees. “The payment to the workers under the accord includes over $3.3 million in overtime back wages and about $2.5 million in damages,” says Computerworld.
The high-tech database company, which tracks the online profiles and behavior of over 300 million members, many of whom pay for the service, told Computerworld that the violations were “a function of not having the right tools in place for a small subset of our sales force to track hours properly.”
Judge says consumer class action against LinkedIn can proceed
A judge in the U.S. District Court for the Northern District of California has ruled that a case against LinkedIn can proceed. Computerworld reported that “LinkedIn will have to face a lawsuit that alleges it damaged the image of users by repeatedly sending emails to their contacts inviting them to join the social network.”
At issue is whether LinkedIn derives “economic benefit” by using its existing members’ names to solicit other people to join the service. This is illegal in the State of California.
According to Computerworld’s report, Judge Lucy Koh ruled that, “The Court notes that this type of injury, using an individual’s name for personalized marketing purposes, is precisely the type of harm that California’s common law right of publicity is geared toward preventing.”
LinkedIn has taken a lot of heat from its users for its practice of cleverly scraping addresses from their private e-mail directories, and then spamming their contacts repeatedly with solicitations to “connect” on LinkedIn. LinkedIn has also been accused of conflict of interest because it charges employers to search its database for the best job candidates — while LinkedIn also charges members for “premium” positioning in those search results. (See LinkedIn Payola: Selling out employers and job hunters.)
Against LinkedIn’s protests, the court ruled that the case may proceed.
Is LinkedIn a network marketing scheme?
LinkedIn holds itself up as the standard bearer of ethical networking — yet more than half its revenues come from selling access to members’ information to third parties. In a Fortune article (LinkedIn’s Networker in Chief), LinkedIn CEO Jeff Weiner says:
“values are the first principles we use to make day-to-day decisions”
“Compassion has essentially become my first principle of management”
But based on these news stories, this quote says a lot about Weiner’s motivation and priorities:
“I didn’t realize until I got to LinkedIn that without access to economic opportunity, nothing else matters.”
It seems LinkedIn may have become too focused on its own “economic opportunity” and that the cost is being borne by its employees and members. Has the leading professional network turned into a sort of network marketing scheme?
In all those cases, third-party “firms” were selling people “help” finding jobs. The help even came with “guarantees.” (If I could guarantee you a job, I’d be writing this from a private island.)
Such third-party “career management firms” have always attached themselves like leeches to the help-wanted business. But the worst of the offenders are employers themselves: companies you want to work for that reject your resume then try to sell you the “opportunity” to get a job with them.
Today’s example: Major League Baseball. The San Diego Padres.
Pay Us For a Chance at a Job
After Taylor Grey Meyer applied for several jobs with the Padres baseball team and received rejection after rejection, the Padres sent her an invitation to come meet “hiring managers” at the “Sports Sales Combine here at Petco Park.”
What’s the Combine? It’s made to look like a job fair. Except the Padres say, “Please note that this is NOT a job fair.” Oh, it’s much, much more!
“We anticipate attending sales managers will be looking to fill 50+ jobs at the Combine. “
“Teams from the MLB, NBA, NHL, NFL, MLS and college athletics all use the combine as a key source to find talent for their organizations.”
“Having been to multiple combines myself, and hired numerous people from the events, I could think of NO better way to get a start in the sport industry.”
Sound like a job fair pitch to you? Sure sounds like one to me! The Padres’ personalized e-mail to Meyer came from a Padres sales manager at a padres.com e-mail address and laid it on thick:
“Taylor, as we look for the best young talent from across the country we wanted to make sure you were aware of the opportunity. You can find the combine application at Teamwork Online through the link below.”
Clicking through to the “application,” Meyer found she could attend this “job fair” by paying $495.
Okay, Give Me The Job
The San Diego Padres are using a mailing list of rejected job applicants to sell an “opportunity” to get one of “50+ jobs.”
I don’t advocate profanity or nasty come-backs in business, especially when you’re trying to convince an employer to hire you. But Meyer knows a job from a come-on. After getting slimed with enough stupid Padres rejection e-mails to fill a hard drive, she responded in exactly the right way:
“I would like to extend you a counter-offer to suck my dick.”
Meyer then demonstrates to the male-dominated Major League Baseball sales guy that her cojones are bigger than his:
“Clearly, I don’t have one of these, so my offer makes about as much sense as yours. But for the price you’re charging to attend the event, I’m sure I would have no problem borrowing one.”
SportsSalesCombine.com triggers my #2 scam alert: There’s no physical location listed for this business — just a gmail address. And there’s no explanation of its relationship to the Padres or any other sports team, except that an awful lot of the Padres’ (and other teams’) coaches are listed as “staff.”
The Padres also trigger my #3 scam alert, one of the oldest sales tricks in the book: They want you to fill out an application to qualify to pay $495.
What’s my #1 scam alert? The Padres strike out big-time for soliciting job applicants to whom they then pitch a chance at job “opportunities.”
As for that suck-my-dick rejection letter Taylor Meyer sent, the Padres deserved it. They rejected Meyer again and again, then “invited” her to “apply” to pay for a chance at a job. Deadspin.com reports Meyer’s letter has already generated at least one job interview from a team that saw a second-hand copy of her e-mail. Now, that’s networking and creating a personal brand. And it won’t cost Meyer a dime. Seems to me that Meyer has demonstrated the “Sports Sales Combine” pitch is for losers.
You apply for a job. The employer rejects you again and again. Would you then pay $495 to that employer for “the most authentic training and networking experience available” and for an “opportunity” at “50+ jobs?”