Phoenix Executive Group, PEG, Larry Maglin, Joe Kran PEG Fraud - Employment Agency, Career Marketing Scam Iselin, Parsippany New Jersey

In accordance with stiplulation of Settlement I post this message...

"Phoenix Executive Group and I have reached an amicable settlement of our dispute. They are a reputable company which worked with me to successfully live up to both the letter and spirit of our agreement. The entire matter was resolved to my satisfaction."

WARNING:

Phoenix Executive Group is running a dislay ad in the Sunday Career Section of the NY Times, Star Ledger, Staten Island Advance and probably CareerBuilder.com under the title of JOBS and CAREERS.

Their practices are frauduent. When they call you, just hang up the phone to protect yourself.



NOTE: The BBB will not assist you in a claim against PEG if you have already filed a complaint with the NJ Dept of Consumer Affairs. Get your JUSTICE and take them to small claims COURT. Bring documentation for your case and you will WIN. Get your REFUND.

The Star-Ledger Archive

COPYRIGHT The Star-Ledger 2005



Date: 2005/06/12 Sunday Page: 001 Section: BUSINESS Edition: FINAL Size: 1880 words



State's career consultant industry rife with complaints



Clients pay thousands, but say they never received services that were promised



By JOSEPH R. PERONE

STAR-LEDGER STAFF



The want ads were all too familiar to Lawrence Foxman.



After losing his job in information technology three years ago, he posted a rsum online and hoped for a nibble. Then he got a call from Phoenix Executive Group. The career consulting firm ultimately promised to find him a permanent job, he said, through a "society of ex-Phoenix" employees who helped one another break into the largest companies in America.



This was "all very hush, hush," he said he was told by the Iselin company's representatives.



Foxman paid the company a fee of more than $5,000 by credit card and sent rsums to a list of Phoenix contacts who supposedly would set up job interviews. But one-fourth of the 500 rsums were returned because the contacts no longer worked at the companies, and the remaining contacts turned out to be standard human resources personnel, not insiders, he said.



The job interviews he was promised by Phoenix? Not one in two and a half years, he said. The career counseling he received? Give up, one Phoenix consultant told him, and "drive a limousine to and from the airports," he said.



Foxman is one of dozens of job seekers who lodged complaints against career counseling firms in New Jersey. Four of the seven career consultants registered with the state are the subject of multiple consumer complaints, according to state records.



State officials declined to release specific complaints, but in interviews, consumers said they paid thousands of dollars for services that never matched what they say they were promised. They also signed contracts that made it extremely difficult to obtain refunds.



"I don't want to paint the entire industry as problematic, but there definitely seem to be issues," said Kimberly Ricketts, acting director of the state Division of Consumer Affairs. "It's something that we're looking at seriously."



Consumer Affairs has at least 20 complaints on file against Phoenix dating to 2002, more than any other career consultant in New Jersey. Some former Phoenix clients in Middlesex and Morris counties are trying to get their money back in small claims court. Others have settled with the company.



There are no hard figures on how many career consultants exist around the country or how many people use their services, according to experts in the recruiting field. But what is clear is they have a mixed track record that includes complaints in New Jersey and elsewhere.



"People who are out of work, especially men over 50, are desperate," said Katherine Bredemeier, president of Career Consulting Services, a Yellow Jacket, Colo., recruiting firm that has served the financial services industry for 15 years. "They go to these places, pay the money and get shuffled off to a consultant who may or may not have the same experience as the person who sold them the contract."



For Phoenix's part, Larry Maglin, senior vice president of operations, said his company does not misrepresent its services, as consumers have alleged. He also said Phoenix tries to resolve disputes in a nonconfrontational manner.



"We are very careful to minimize any misunderstandings to a client about what we can and cannot do," he said.





NOT AN ISOLATED PROBLEM

The other companies that have complaints filed against them are Bernard Haldane Associates in Princeton and Roseland, with 18 complaints; Harvard Professional Group in Edison, with 11 complaints; and Robele Career Solutions in Princeton and Morristown, with 10.



"The allegations concern unsatisfactory service, misrepresentations and refund problems, deception and failure to deliver on services," Genene Morris, a spokesman for the Division of Consumer Affairs, said.



Some of the companies cited by consumers are no longer operating. Harvard Professional Group's phone number in Edison is disconnected, and Robele went out of business in January, according to Consumer Affairs.



Bernard Haldane Associates closed its doors last summer, said Barry Layne, who was president of the New Jersey franchise.



"If there were only three complaints against it a year, that is not terrible," he said.



Layne has operated another career consulting firm, Carnegie Career Partners, in Princeton, for the past year. Carnegie, which has no complaints against it, does not promise jobs or salaries for people and tries to resolve complaints fairly, he said. But problems can arise when clients are not truthful about their past, Layne said.



"Most people are not terribly honest during their first meeting, and you find out later that they had a drug or alcohol problem," he said. "Unfortunately, the client, in this case, is not always right."



Layne said the actions of some consultants reflect upon others.



"There are some operators that don't operate properly. So be it," he said. "But that should not be an indictment of the entire industry. There are a lot of dedicated career consultants in this industry who work hard to help people."



Layne is the former president of Career Management, an Illinois company that was doing business as Bernard Haldane Associates. He was barred from operating in Illinois after reaching a consent decree with that state last November.



As part of that agreement, he neither admitted nor denied allegations of consumer fraud, but agreed to pay $100,000 in restitution that will be distributed to some clients.



"This case was significant in the amount, the breadth of the fraud and the brazenness of it because they were offering things that people could find on the Internet" for free, said Melissa Merz, a spokeswoman for the Illinois Attorney General's Office.



Layne did not return repeated phone calls seeking comment on the Illinois agreement.





CONSULTANTS VS. RECRUITERS

Career consultants differ from recruiters, who are often known as headhunters, said Tom McGee, division director and general manager for Lucas Group, an Atlanta-based executive recruitment firm.



Consultants generally charge people an upfront fee ranging from $4,000 to $6,000 to help them spruce up their rsum, identify companies to target and teach them to sell themselves to a prospective employer, he said.



"They are mostly for people who want to change careers or who have been out of work a while," McGee said.



Career consulting services are different from recruiters, who are paid by employers to find specific talent and do not charge upfront fees, said John Sacerdote, director of the National Association of Personnel Services, a North Carolina-based trade group that certifies recruiting and staffing professionals.



"Our code of ethics prohibits charging a candidate a fee unless employment has been offered and accepted," he said.



On the other hand, Phoenix receives fees from job candidates but not from potential employers, said Maglin, the Phoenix vice president. Phoenix has a number of clients who have been hired by large companies, and it receives job orders from previous clients, recruiters and companies it has dealt with in the past, he said.



Phoenix, which has offices in Parsippany, Princeton, New York and White Plains, N.Y., employs 30 people and has served 1,800 clients during the past three years, he said. The company is owned by Joseph Kran, who serves as president. Kran was not available for an interview, Maglin said. There was no answer at Kran's residence in Brick.



Kran operated Career Consultants of America from 1991 to 1999 to provide human resources and marketing services to small- and mid-size companies, according to Maglin. Kran changed the name to Phoenix in 2000 to focus on individual professional and marketing services, Maglin said.



"Traditional recruiters work for employers," Maglin said via e-mail in response to a series of questions. "When we provide career transition services, we work for the individual professional or executive who is seeking a new position."





WHAT ONE CLIENT GOT

But John Drake, one of the Phoenix clients who filed a complaint with Consumer Affairs, said the company did little for his $5,850 payment. The Englewood man had been working as an investment banker in New York when he was let go at the end of 2002.



Drake, 40, posted a rsum on an online jobs board, and he, too, received an unsolicited phone call from a Phoenix representative inviting him to explore available opportunities. Instead, the meeting was used to tout the company's services, he said.



Phoenix promised to develop a marketing program for him that would target "hidden opportunities," he said, and outline specific jobs and salaries such as a senior vice president earning at least $225,000 at a company with $150 million in sales.



Instead, he said, Phoenix made minor changes to his rsum and provided him with a list of recruiters and companies, some of which had old addresses and outdated contacts. He was then asked to read company profiles and research target companies in finance, insurance and banking to find an angle and contact each firm in writing, he said.



After three months, Drake failed to get any interviews, and he tried to terminate the contract. He said he was rebuffed by Phoenix personnel in Parsippany and Iselin when he tried to obtain a refund.



Maglin, the Phoenix vice president, called the company's client satisfaction record "excellent" and said when there are client complaints, "The vast majority of problems are rectified to the client's satisfaction."



The number of complaints against Phoenix represents just 1.1 percent of its client base, he said.



"Naturally, PEG would like to have no complaints," Maglin said. "If we do settle with a client, we do ask the client to update any public statements with the fact that the issue has been settled."



Both he and Layne, the former Bernard Haldane executive, declined to provide the names of any satisfied Phoenix or Haldane customers who could be interviewed for this story.



Maglin said the company provides no guarantees of six-figure salaries or specific positions, and the contract clearly states what Phoenix will do for them.



"We never promise or guarantee employment or placement as we are not an employment agency," he said. "That is both illegal and unethical for any company in our business to do."



As for the company's contact lists, Maglin said Phoenix purchases them from other parties, and they are up to "92 percent accurate, depending on location and type of industry." He said Phoenix relays information about inaccurate contacts to its suppliers.



"We run a successful business which has helped a large amount of professional and executive-level people reach their career goals," he said. "Our approach is a collaborative effort. It cannot succeed if the client does not work with us."



NOTES: Star-Ledger researcher Christine Baird contributed to this report.



GRAPHIC CAPTION: LIST: RED FLAGS

When dealing with career consultants, be careful if the firm:



Is not registered with Consumer Affairs' Regulated Business Section.



Guarantees it can find you work.



Won't let you take the contract home to read it.



Won't put oral representations in a written contract.



Tells you it has a special database or list of prospective employers and job openings no one else has.



2. LIST: DEALING WITH CONSULTANTS



Companies that violate the state's Consumer Fraud Act can face a lawsuit and civil penalties of up to $10,000 for the first offense and up to $20,000 for each additional offense. Here are some tips to look for when dealing with career consultants, according to the state Division of Consumer Affairs:



1. Regardless of what the firm calls itself, focus on what services the firm is offering, how much those services cost and who pays.



2. Find out if a company is registered with Consumer Affairs' Regulated Business Section at www.njconsumeraffairs.com/ocp/agency.pdf. Or call (973) 504-6367 or (973) 504-6370 to find out if there are any complaints against the company.



3. Read the contract. Make sure all oral representations regarding promised services are in the written contract.



4. Don't give in to high-pressure sales tactics by signing a contract immediately. Ask if you can take the contract home to read. Do not sign the contract unless you fully understand and agree with the terms.



5. Ask the firm to explain its refund policy and get it in writing.



6. Ask what you're required to do to fulfill your part of the contract. Look for requirements to fill out questionnaires, write numerous letters, attend weekly appointments with a counselor or attend seminars.



7. Find out who's responsible for mailing out your rsum and who's going to pay for postage.



CREDIT: 1. SOURCE: New Jersey Division of Consumer Affairs 2. SOURCE: New Jersey Division of Consumer Affairs

The Star-Ledger Archive

COPYRIGHT The Star-Ledger 2005



Date: 2005/06/12 Sunday Page: 001 Section: BUSINESS Edition: FINAL Size: 1880 words



State's career consultant industry rife with complaints



Clients pay thousands, but say they never received services that were promised



By JOSEPH R. PERONE

STAR-LEDGER STAFF



The want ads were all too familiar to Lawrence Foxman.



After losing his job in information technology three years ago, he posted a rsum online and hoped for a nibble. Then he got a call from Phoenix Executive Group. The career consulting firm ultimately promised to find him a permanent job, he said, through a "society of ex-Phoenix" employees who helped one another break into the largest companies in America.



This was "all very hush, hush," he said he was told by the Iselin company's representatives.



Foxman paid the company a fee of more than $5,000 by credit card and sent rsums to a list of Phoenix contacts who supposedly would set up job interviews. But one-fourth of the 500 rsums were returned because the contacts no longer worked at the companies, and the remaining contacts turned out to be standard human resources personnel, not insiders, he said.



The job interviews he was promised by Phoenix? Not one in two and a half years, he said. The career counseling he received? Give up, one Phoenix consultant told him, and "drive a limousine to and from the airports," he said.



Foxman is one of dozens of job seekers who lodged complaints against career counseling firms in New Jersey. Four of the seven career consultants registered with the state are the subject of multiple consumer complaints, according to state records.



State officials declined to release specific complaints, but in interviews, consumers said they paid thousands of dollars for services that never matched what they say they were promised. They also signed contracts that made it extremely difficult to obtain refunds.



"I don't want to paint the entire industry as problematic, but there definitely seem to be issues," said Kimberly Ricketts, acting director of the state Division of Consumer Affairs. "It's something that we're looking at seriously."



Consumer Affairs has at least 20 complaints on file against Phoenix dating to 2002, more than any other career consultant in New Jersey. Some former Phoenix clients in Middlesex and Morris counties are trying to get their money back in small claims court. Others have settled with the company.



There are no hard figures on how many career consultants exist around the country or how many people use their services, according to experts in the recruiting field. But what is clear is they have a mixed track record that includes complaints in New Jersey and elsewhere.



"People who are out of work, especially men over 50, are desperate," said Katherine Bredemeier, president of Career Consulting Services, a Yellow Jacket, Colo., recruiting firm that has served the financial services industry for 15 years. "They go to these places, pay the money and get shuffled off to a consultant who may or may not have the same experience as the person who sold them the contract."



For Phoenix's part, Larry Maglin, senior vice president of operations, said his company does not misrepresent its services, as consumers have alleged. He also said Phoenix tries to resolve disputes in a nonconfrontational manner.



"We are very careful to minimize any misunderstandings to a client about what we can and cannot do," he said.





NOT AN ISOLATED PROBLEM

The other companies that have complaints filed against them are Bernard Haldane Associates in Princeton and Roseland, with 18 complaints; Harvard Professional Group in Edison, with 11 complaints; and Robele Career Solutions in Princeton and Morristown, with 10.



"The allegations concern unsatisfactory service, misrepresentations and refund problems, deception and failure to deliver on services," Genene Morris, a spokesman for the Division of Consumer Affairs, said.



Some of the companies cited by consumers are no longer operating. Harvard Professional Group's phone number in Edison is disconnected, and Robele went out of business in January, according to Consumer Affairs.



Bernard Haldane Associates closed its doors last summer, said Barry Layne, who was president of the New Jersey franchise.



"If there were only three complaints against it a year, that is not terrible," he said.



Layne has operated another career consulting firm, Carnegie Career Partners, in Princeton, for the past year. Carnegie, which has no complaints against it, does not promise jobs or salaries for people and tries to resolve complaints fairly, he said. But problems can arise when clients are not truthful about their past, Layne said.



"Most people are not terribly honest during their first meeting, and you find out later that they had a drug or alcohol problem," he said. "Unfortunately, the client, in this case, is not always right."



Layne said the actions of some consultants reflect upon others.



"There are some operators that don't operate properly. So be it," he said. "But that should not be an indictment of the entire industry. There are a lot of dedicated career consultants in this industry who work hard to help people."



Layne is the former president of Career Management, an Illinois company that was doing business as Bernard Haldane Associates. He was barred from operating in Illinois after reaching a consent decree with that state last November.



As part of that agreement, he neither admitted nor denied allegations of consumer fraud, but agreed to pay $100,000 in restitution that will be distributed to some clients.



"This case was significant in the amount, the breadth of the fraud and the brazenness of it because they were offering things that people could find on the Internet" for free, said Melissa Merz, a spokeswoman for the Illinois Attorney General's Office.



Layne did not return repeated phone calls seeking comment on the Illinois agreement.





CONSULTANTS VS. RECRUITERS

Career consultants differ from recruiters, who are often known as headhunters, said Tom McGee, division director and general manager for Lucas Group, an Atlanta-based executive recruitment firm.



Consultants generally charge people an upfront fee ranging from $4,000 to $6,000 to help them spruce up their rsum, identify companies to target and teach them to sell themselves to a prospective employer, he said.



"They are mostly for people who want to change careers or who have been out of work a while," McGee said.



Career consulting services are different from recruiters, who are paid by employers to find specific talent and do not charge upfront fees, said John Sacerdote, director of the National Association of Personnel Services, a North Carolina-based trade group that certifies recruiting and staffing professionals.



"Our code of ethics prohibits charging a candidate a fee unless employment has been offered and accepted," he said.



On the other hand, Phoenix receives fees from job candidates but not from potential employers, said Maglin, the Phoenix vice president. Phoenix has a number of clients who have been hired by large companies, and it receives job orders from previous clients, recruiters and companies it has dealt with in the past, he said.



Phoenix, which has offices in Parsippany, Princeton, New York and White Plains, N.Y., employs 30 people and has served 1,800 clients during the past three years, he said. The company is owned by Joseph Kran, who serves as president. Kran was not available for an interview, Maglin said. There was no answer at Kran's residence in Brick.



Kran operated Career Consultants of America from 1991 to 1999 to provide human resources and marketing services to small- and mid-size companies, according to Maglin. Kran changed the name to Phoenix in 2000 to focus on individual professional and marketing services, Maglin said.



"Traditional recruiters work for employers," Maglin said via e-mail in response to a series of questions. "When we provide career transition services, we work for the individual professional or executive who is seeking a new position."





WHAT ONE CLIENT GOT

But John Drake, one of the Phoenix clients who filed a complaint with Consumer Affairs, said the company did little for his $5,850 payment. The Englewood man had been working as an investment banker in New York when he was let go at the end of 2002.



Drake, 40, posted a rsum on an online jobs board, and he, too, received an unsolicited phone call from a Phoenix representative inviting him to explore available opportunities. Instead, the meeting was used to tout the company's services, he said.



Phoenix promised to develop a marketing program for him that would target "hidden opportunities," he said, and outline specific jobs and salaries such as a senior vice president earning at least $225,000 at a company with $150 million in sales.



Instead, he said, Phoenix made minor changes to his rsum and provided him with a list of recruiters and companies, some of which had old addresses and outdated contacts. He was then asked to read company profiles and research target companies in finance, insurance and banking to find an angle and contact each firm in writing, he said.



After three months, Drake failed to get any interviews, and he tried to terminate the contract. He said he was rebuffed by Phoenix personnel in Parsippany and Iselin when he tried to obtain a refund.



Maglin, the Phoenix vice president, called the company's client satisfaction record "excellent" and said when there are client complaints, "The vast majority of problems are rectified to the client's satisfaction."



The number of complaints against Phoenix represents just 1.1 percent of its client base, he said.



"Naturally, PEG would like to have no complaints," Maglin said. "If we do settle with a client, we do ask the client to update any public statements with the fact that the issue has been settled."



Both he and Layne, the former Bernard Haldane executive, declined to provide the names of any satisfied Phoenix or Haldane customers who could be interviewed for this story.



Maglin said the company provides no guarantees of six-figure salaries or specific positions, and the contract clearly states what Phoenix will do for them.



"We never promise or guarantee employment or placement as we are not an employment agency," he said. "That is both illegal and unethical for any company in our business to do."



As for the company's contact lists, Maglin said Phoenix purchases them from other parties, and they are up to "92 percent accurate, depending on location and type of industry." He said Phoenix relays information about inaccurate contacts to its suppliers.



"We run a successful business which has helped a large amount of professional and executive-level people reach their career goals," he said. "Our approach is a collaborative effort. It cannot succeed if the client does not work with us."



NOTES: Star-Ledger researcher Christine Baird contributed to this report.



GRAPHIC CAPTION: LIST: RED FLAGS

When dealing with career consultants, be careful if the firm:



Is not registered with Consumer Affairs' Regulated Business Section.



Guarantees it can find you work.



Won't let you take the contract home to read it.



Won't put oral representations in a written contract.



Tells you it has a special database or list of prospective employers and job openings no one else has.



2. LIST: DEALING WITH CONSULTANTS



Companies that violate the state's Consumer Fraud Act can face a lawsuit and civil penalties of up to $10,000 for the first offense and up to $20,000 for each additional offense. Here are some tips to look for when dealing with career consultants, according to the state Division of Consumer Affairs:



1. Regardless of what the firm calls itself, focus on what services the firm is offering, how much those services cost and who pays.



2. Find out if a company is registered with Consumer Affairs' Regulated Business Section at www.njconsumeraffairs.com/ocp/agency.pdf. Or call (973) 504-6367 or (973) 504-6370 to find out if there are any complaints against the company.



3. Read the contract. Make sure all oral representations regarding promised services are in the written contract.



4. Don't give in to high-pressure sales tactics by signing a contract immediately. Ask if you can take the contract home to read. Do not sign the contract unless you fully understand and agree with the terms.



5. Ask the firm to explain its refund policy and get it in writing.



6. Ask what you're required to do to fulfill your part of the contract. Look for requirements to fill out questionnaires, write numerous letters, attend weekly appointments with a counselor or attend seminars.



7. Find out who's responsible for mailing out your rsum and who's going to pay for postage.



CREDIT: 1. SOURCE: New Jersey Division of Consumer Affairs 2. SOURCE: New Jersey Division of Consumer Affairs

The Star-Ledger Archive

COPYRIGHT The Star-Ledger 2005



Date: 2005/06/12 Sunday Page: 001 Section: BUSINESS Edition: FINAL Size: 1880 words



State's career consultant industry rife with complaints



Clients pay thousands, but say they never received services that were promised



By JOSEPH R. PERONE

STAR-LEDGER STAFF



The want ads were all too familiar to Lawrence Foxman.



After losing his job in information technology three years ago, he posted a rsum online and hoped for a nibble. Then he got a call from Phoenix Executive Group. The career consulting firm ultimately promised to find him a permanent job, he said, through a "society of ex-Phoenix" employees who helped one another break into the largest companies in America.



This was "all very hush, hush," he said he was told by the Iselin company's representatives.



Foxman paid the company a fee of more than $5,000 by credit card and sent rsums to a list of Phoenix contacts who supposedly would set up job interviews. But one-fourth of the 500 rsums were returned because the contacts no longer worked at the companies, and the remaining contacts turned out to be standard human resources personnel, not insiders, he said.



The job interviews he was promised by Phoenix? Not one in two and a half years, he said. The career counseling he received? Give up, one Phoenix consultant told him, and "drive a limousine to and from the airports," he said.



Foxman is one of dozens of job seekers who lodged complaints against career counseling firms in New Jersey. Four of the seven career consultants registered with the state are the subject of multiple consumer complaints, according to state records.



State officials declined to release specific complaints, but in interviews, consumers said they paid thousands of dollars for services that never matched what they say they were promised. They also signed contracts that made it extremely difficult to obtain refunds.



"I don't want to paint the entire industry as problematic, but there definitely seem to be issues," said Kimberly Ricketts, acting director of the state Division of Consumer Affairs. "It's something that we're looking at seriously."



Consumer Affairs has at least 20 complaints on file against Phoenix dating to 2002, more than any other career consultant in New Jersey. Some former Phoenix clients in Middlesex and Morris counties are trying to get their money back in small claims court. Others have settled with the company.



There are no hard figures on how many career consultants exist around the country or how many people use their services, according to experts in the recruiting field. But what is clear is they have a mixed track record that includes complaints in New Jersey and elsewhere.



"People who are out of work, especially men over 50, are desperate," said Katherine Bredemeier, president of Career Consulting Services, a Yellow Jacket, Colo., recruiting firm that has served the financial services industry for 15 years. "They go to these places, pay the money and get shuffled off to a consultant who may or may not have the same experience as the person who sold them the contract."



For Phoenix's part, Larry Maglin, senior vice president of operations, said his company does not misrepresent its services, as consumers have alleged. He also said Phoenix tries to resolve disputes in a nonconfrontational manner.



"We are very careful to minimize any misunderstandings to a client about what we can and cannot do," he said.





NOT AN ISOLATED PROBLEM

The other companies that have complaints filed against them are Bernard Haldane Associates in Princeton and Roseland, with 18 complaints; Harvard Professional Group in Edison, with 11 complaints; and Robele Career Solutions in Princeton and Morristown, with 10.



"The allegations concern unsatisfactory service, misrepresentations and refund problems, deception and failure to deliver on services," Genene Morris, a spokesman for the Division of Consumer Affairs, said.



Some of the companies cited by consumers are no longer operating. Harvard Professional Group's phone number in Edison is disconnected, and Robele went out of business in January, according to Consumer Affairs.



Bernard Haldane Associates closed its doors last summer, said Barry Layne, who was president of the New Jersey franchise.



"If there were only three complaints against it a year, that is not terrible," he said.



Layne has operated another career consulting firm, Carnegie Career Partners, in Princeton, for the past year. Carnegie, which has no complaints against it, does not promise jobs or salaries for people and tries to resolve complaints fairly, he said. But problems can arise when clients are not truthful about their past, Layne said.



"Most people are not terribly honest during their first meeting, and you find out later that they had a drug or alcohol problem," he said. "Unfortunately, the client, in this case, is not always right."



Layne said the actions of some consultants reflect upon others.



"There are some operators that don't operate properly. So be it," he said. "But that should not be an indictment of the entire industry. There are a lot of dedicated career consultants in this industry who work hard to help people."



Layne is the former president of Career Management, an Illinois company that was doing business as Bernard Haldane Associates. He was barred from operating in Illinois after reaching a consent decree with that state last November.



As part of that agreement, he neither admitted nor denied allegations of consumer fraud, but agreed to pay $100,000 in restitution that will be distributed to some clients.



"This case was significant in the amount, the breadth of the fraud and the brazenness of it because they were offering things that people could find on the Internet" for free, said Melissa Merz, a spokeswoman for the Illinois Attorney General's Office.



Layne did not return repeated phone calls seeking comment on the Illinois agreement.





CONSULTANTS VS. RECRUITERS

Career consultants differ from recruiters, who are often known as headhunters, said Tom McGee, division director and general manager for Lucas Group, an Atlanta-based executive recruitment firm.



Consultants generally charge people an upfront fee ranging from $4,000 to $6,000 to help them spruce up their rsum, identify companies to target and teach them to sell themselves to a prospective employer, he said.



"They are mostly for people who want to change careers or who have been out of work a while," McGee said.



Career consulting services are different from recruiters, who are paid by employers to find specific talent and do not charge upfront fees, said John Sacerdote, director of the National Association of Personnel Services, a North Carolina-based trade group that certifies recruiting and staffing professionals.



"Our code of ethics prohibits charging a candidate a fee unless employment has been offered and accepted," he said.



On the other hand, Phoenix receives fees from job candidates but not from potential employers, said Maglin, the Phoenix vice president. Phoenix has a number of clients who have been hired by large companies, and it receives job orders from previous clients, recruiters and companies it has dealt with in the past, he said.



Phoenix, which has offices in Parsippany, Princeton, New York and White Plains, N.Y., employs 30 people and has served 1,800 clients during the past three years, he said. The company is owned by Joseph Kran, who serves as president. Kran was not available for an interview, Maglin said. There was no answer at Kran's residence in Brick.



Kran operated Career Consultants of America from 1991 to 1999 to provide human resources and marketing services to small- and mid-size companies, according to Maglin. Kran changed the name to Phoenix in 2000 to focus on individual professional and marketing services, Maglin said.



"Traditional recruiters work for employers," Maglin said via e-mail in response to a series of questions. "When we provide career transition services, we work for the individual professional or executive who is seeking a new position."





WHAT ONE CLIENT GOT

But John Drake, one of the Phoenix clients who filed a complaint with Consumer Affairs, said the company did little for his $5,850 payment. The Englewood man had been working as an investment banker in New York when he was let go at the end of 2002.



Drake, 40, posted a rsum on an online jobs board, and he, too, received an unsolicited phone call from a Phoenix representative inviting him to explore available opportunities. Instead, the meeting was used to tout the company's services, he said.



Phoenix promised to develop a marketing program for him that would target "hidden opportunities," he said, and outline specific jobs and salaries such as a senior vice president earning at least $225,000 at a company with $150 million in sales.



Instead, he said, Phoenix made minor changes to his rsum and provided him with a list of recruiters and companies, some of which had old addresses and outdated contacts. He was then asked to read company profiles and research target companies in finance, insurance and banking to find an angle and contact each firm in writing, he said.



After three months, Drake failed to get any interviews, and he tried to terminate the contract. He said he was rebuffed by Phoenix personnel in Parsippany and Iselin when he tried to obtain a refund.



Maglin, the Phoenix vice president, called the company's client satisfaction record "excellent" and said when there are client complaints, "The vast majority of problems are rectified to the client's satisfaction."



The number of complaints against Phoenix represents just 1.1 percent of its client base, he said.



"Naturally, PEG would like to have no complaints," Maglin said. "If we do settle with a client, we do ask the client to update any public statements with the fact that the issue has been settled."



Both he and Layne, the former Bernard Haldane executive, declined to provide the names of any satisfied Phoenix or Haldane customers who could be interviewed for this story.



Maglin said the company provides no guarantees of six-figure salaries or specific positions, and the contract clearly states what Phoenix will do for them.



"We never promise or guarantee employment or placement as we are not an employment agency," he said. "That is both illegal and unethical for any company in our business to do."



As for the company's contact lists, Maglin said Phoenix purchases them from other parties, and they are up to "92 percent accurate, depending on location and type of industry." He said Phoenix relays information about inaccurate contacts to its suppliers.



"We run a successful business which has helped a large amount of professional and executive-level people reach their career goals," he said. "Our approach is a collaborative effort. It cannot succeed if the client does not work with us."



NOTES: Star-Ledger researcher Christine Baird contributed to this report.



GRAPHIC CAPTION: LIST: RED FLAGS

When dealing with career consultants, be careful if the firm:



Is not registered with Consumer Affairs' Regulated Business Section.



Guarantees it can find you work.



Won't let you take the contract home to read it.



Won't put oral representations in a written contract.



Tells you it has a special database or list of prospective employers and job openings no one else has.



2. LIST: DEALING WITH CONSULTANTS



Companies that violate the state's Consumer Fraud Act can face a lawsuit and civil penalties of up to $10,000 for the first offense and up to $20,000 for each additional offense. Here are some tips to look for when dealing with career consultants, according to the state Division of Consumer Affairs:



1. Regardless of what the firm calls itself, focus on what services the firm is offering, how much those services cost and who pays.



2. Find out if a company is registered with Consumer Affairs' Regulated Business Section at www.njconsumeraffairs.com/ocp/agency.pdf. Or call (973) 504-6367 or (973) 504-6370 to find out if there are any complaints against the company.



3. Read the contract. Make sure all oral representations regarding promised services are in the written contract.



4. Don't give in to high-pressure sales tactics by signing a contract immediately. Ask if you can take the contract home to read. Do not sign the contract unless you fully understand and agree with the terms.



5. Ask the firm to explain its refund policy and get it in writing.



6. Ask what you're required to do to fulfill your part of the contract. Look for requirements to fill out questionnaires, write numerous letters, attend weekly appointments with a counselor or attend seminars.



7. Find out who's responsible for mailing out your rsum and who's going to pay for postage.



CREDIT: 1. SOURCE: New Jersey Division of Consumer Affairs 2. SOURCE: New Jersey Division of Consumer Affairs

The Star-Ledger Archive

COPYRIGHT The Star-Ledger 2005



Date: 2005/06/12 Sunday Page: 001 Section: BUSINESS Edition: FINAL Size: 1880 words



State's career consultant industry rife with complaints



Clients pay thousands, but say they never received services that were promised



By JOSEPH R. PERONE

STAR-LEDGER STAFF



The want ads were all too familiar to Lawrence Foxman.



After losing his job in information technology three years ago, he posted a rsum online and hoped for a nibble. Then he got a call from Phoenix Executive Group. The career consulting firm ultimately promised to find him a permanent job, he said, through a "society of ex-Phoenix" employees who helped one another break into the largest companies in America.



This was "all very hush, hush," he said he was told by the Iselin company's representatives.



Foxman paid the company a fee of more than $5,000 by credit card and sent rsums to a list of Phoenix contacts who supposedly would set up job interviews. But one-fourth of the 500 rsums were returned because the contacts no longer worked at the companies, and the remaining contacts turned out to be standard human resources personnel, not insiders, he said.



The job interviews he was promised by Phoenix? Not one in two and a half years, he said. The career counseling he received? Give up, one Phoenix consultant told him, and "drive a limousine to and from the airports," he said.



Foxman is one of dozens of job seekers who lodged complaints against career counseling firms in New Jersey. Four of the seven career consultants registered with the state are the subject of multiple consumer complaints, according to state records.



State officials declined to release specific complaints, but in interviews, consumers said they paid thousands of dollars for services that never matched what they say they were promised. They also signed contracts that made it extremely difficult to obtain refunds.



"I don't want to paint the entire industry as problematic, but there definitely seem to be issues," said Kimberly Ricketts, acting director of the state Division of Consumer Affairs. "It's something that we're looking at seriously."



Consumer Affairs has at least 20 complaints on file against Phoenix dating to 2002, more than any other career consultant in New Jersey. Some former Phoenix clients in Middlesex and Morris counties are trying to get their money back in small claims court. Others have settled with the company.



There are no hard figures on how many career consultants exist around the country or how many people use their services, according to experts in the recruiting field. But what is clear is they have a mixed track record that includes complaints in New Jersey and elsewhere.



"People who are out of work, especially men over 50, are desperate," said Katherine Bredemeier, president of Career Consulting Services, a Yellow Jacket, Colo., recruiting firm that has served the financial services industry for 15 years. "They go to these places, pay the money and get shuffled off to a consultant who may or may not have the same experience as the person who sold them the contract."



For Phoenix's part, Larry Maglin, senior vice president of operations, said his company does not misrepresent its services, as consumers have alleged. He also said Phoenix tries to resolve disputes in a nonconfrontational manner.



"We are very careful to minimize any misunderstandings to a client about what we can and cannot do," he said.





NOT AN ISOLATED PROBLEM

The other companies that have complaints filed against them are Bernard Haldane Associates in Princeton and Roseland, with 18 complaints; Harvard Professional Group in Edison, with 11 complaints; and Robele Career Solutions in Princeton and Morristown, with 10.



"The allegations concern unsatisfactory service, misrepresentations and refund problems, deception and failure to deliver on services," Genene Morris, a spokesman for the Division of Consumer Affairs, said.



Some of the companies cited by consumers are no longer operating. Harvard Professional Group's phone number in Edison is disconnected, and Robele went out of business in January, according to Consumer Affairs.



Bernard Haldane Associates closed its doors last summer, said Barry Layne, who was president of the New Jersey franchise.



"If there were only three complaints against it a year, that is not terrible," he said.



Layne has operated another career consulting firm, Carnegie Career Partners, in Princeton, for the past year. Carnegie, which has no complaints against it, does not promise jobs or salaries for people and tries to resolve complaints fairly, he said. But problems can arise when clients are not truthful about their past, Layne said.



"Most people are not terribly honest during their first meeting, and you find out later that they had a drug or alcohol problem," he said. "Unfortunately, the client, in this case, is not always right."



Layne said the actions of some consultants reflect upon others.



"There are some operators that don't operate properly. So be it," he said. "But that should not be an indictment of the entire industry. There are a lot of dedicated career consultants in this industry who work hard to help people."



Layne is the former president of Career Management, an Illinois company that was doing business as Bernard Haldane Associates. He was barred from operating in Illinois after reaching a consent decree with that state last November.



As part of that agreement, he neither admitted nor denied allegations of consumer fraud, but agreed to pay $100,000 in restitution that will be distributed to some clients.



"This case was significant in the amount, the breadth of the fraud and the brazenness of it because they were offering things that people could find on the Internet" for free, said Melissa Merz, a spokeswoman for the Illinois Attorney General's Office.



Layne did not return repeated phone calls seeking comment on the Illinois agreement.





CONSULTANTS VS. RECRUITERS

Career consultants differ from recruiters, who are often known as headhunters, said Tom McGee, division director and general manager for Lucas Group, an Atlanta-based executive recruitment firm.



Consultants generally charge people an upfront fee ranging from $4,000 to $6,000 to help them spruce up their rsum, identify companies to target and teach them to sell themselves to a prospective employer, he said.



"They are mostly for people who want to change careers or who have been out of work a while," McGee said.



Career consulting services are different from recruiters, who are paid by employers to find specific talent and do not charge upfront fees, said John Sacerdote, director of the National Association of Personnel Services, a North Carolina-based trade group that certifies recruiting and staffing professionals.



"Our code of ethics prohibits charging a candidate a fee unless employment has been offered and accepted," he said.



On the other hand, Phoenix receives fees from job candidates but not from potential employers, said Maglin, the Phoenix vice president. Phoenix has a number of clients who have been hired by large companies, and it receives job orders from previous clients, recruiters and companies it has dealt with in the past, he said.



Phoenix, which has offices in Parsippany, Princeton, New York and White Plains, N.Y., employs 30 people and has served 1,800 clients during the past three years, he said. The company is owned by Joseph Kran, who serves as president. Kran was not available for an interview, Maglin said. There was no answer at Kran's residence in Brick.



Kran operated Career Consultants of America from 1991 to 1999 to provide human resources and marketing services to small- and mid-size companies, according to Maglin. Kran changed the name to Phoenix in 2000 to focus on individual professional and marketing services, Maglin said.



"Traditional recruiters work for employers," Maglin said via e-mail in response to a series of questions. "When we provide career transition services, we work for the individual professional or executive who is seeking a new position."





WHAT ONE CLIENT GOT

But John Drake, one of the Phoenix clients who filed a complaint with Consumer Affairs, said the company did little for his $5,850 payment. The Englewood man had been working as an investment banker in New York when he was let go at the end of 2002.



Drake, 40, posted a rsum on an online jobs board, and he, too, received an unsolicited phone call from a Phoenix representative inviting him to explore available opportunities. Instead, the meeting was used to tout the company's services, he said.



Phoenix promised to develop a marketing program for him that would target "hidden opportunities," he said, and outline specific jobs and salaries such as a senior vice president earning at least $225,000 at a company with $150 million in sales.



Instead, he said, Phoenix made minor changes to his rsum and provided him with a list of recruiters and companies, some of which had old addresses and outdated contacts. He was then asked to read company profiles and research target companies in finance, insurance and banking to find an angle and contact each firm in writing, he said.



After three months, Drake failed to get any interviews, and he tried to terminate the contract. He said he was rebuffed by Phoenix personnel in Parsippany and Iselin when he tried to obtain a refund.



Maglin, the Phoenix vice president, called the company's client satisfaction record "excellent" and said when there are client complaints, "The vast majority of problems are rectified to the client's satisfaction."



The number of complaints against Phoenix represents just 1.1 percent of its client base, he said.



"Naturally, PEG would like to have no complaints," Maglin said. "If we do settle with a client, we do ask the client to update any public statements with the fact that the issue has been settled."



Both he and Layne, the former Bernard Haldane executive, declined to provide the names of any satisfied Phoenix or Haldane customers who could be interviewed for this story.



Maglin said the company provides no guarantees of six-figure salaries or specific positions, and the contract clearly states what Phoenix will do for them.



"We never promise or guarantee employment or placement as we are not an employment agency," he said. "That is both illegal and unethical for any company in our business to do."



As for the company's contact lists, Maglin said Phoenix purchases them from other parties, and they are up to "92 percent accurate, depending on location and type of industry." He said Phoenix relays information about inaccurate contacts to its suppliers.



"We run a successful business which has helped a large amount of professional and executive-level people reach their career goals," he said. "Our approach is a collaborative effort. It cannot succeed if the client does not work with us."



NOTES: Star-Ledger researcher Christine Baird contributed to this report.



GRAPHIC CAPTION: LIST: RED FLAGS

When dealing with career consultants, be careful if the firm:



Is not registered with Consumer Affairs' Regulated Business Section.



Guarantees it can find you work.



Won't let you take the contract home to read it.



Won't put oral representations in a written contract.



Tells you it has a special database or list of prospective employers and job openings no one else has.



2. LIST: DEALING WITH CONSULTANTS



Companies that violate the state's Consumer Fraud Act can face a lawsuit and civil penalties of up to $10,000 for the first offense and up to $20,000 for each additional offense. Here are some tips to look for when dealing with career consultants, according to the state Division of Consumer Affairs:



1. Regardless of what the firm calls itself, focus on what services the firm is offering, how much those services cost and who pays.



2. Find out if a company is registered with Consumer Affairs' Regulated Business Section at www.njconsumeraffairs.com/ocp/agency.pdf. Or call (973) 504-6367 or (973) 504-6370 to find out if there are any complaints against the company.



3. Read the contract. Make sure all oral representations regarding promised services are in the written contract.



4. Don't give in to high-pressure sales tactics by signing a contract immediately. Ask if you can take the contract home to read. Do not sign the contract unless you fully understand and agree with the terms.



5. Ask the firm to explain its refund policy and get it in writing.



6. Ask what you're required to do to fulfill your part of the contract. Look for requirements to fill out questionnaires, write numerous letters, attend weekly appointments with a counselor or attend seminars.



7. Find out who's responsible for mailing out your rsum and who's going to pay for postage.



CREDIT: 1. SOURCE: New Jersey Division of Consumer Affairs 2. SOURCE: New Jersey Division of Consumer Affairs

unlike some i read, i was recently solicited by PEG via my posted resume on a reputable site. i got a VM fr "Pat Fodor" on dec 29th, 2005 - her EXACT words were "we've your resume, we like you to come in for interview" -- which sounded alot like job replacement. *(i still have her VM on my mobile.)



excited i called bk but told them i couldnt make in for any early interview during the holiday and that i couldnt just take off from my current job in the last minutes.



i followed up with a call on jan 6, 2006 (this past friday) - left Pat a msg on her VM late after business hours.



i knew something didnt add up right when i got a VM bk from her on the same day wayyyy after business hours - she wanted me to come in for interview today jan 9th, 2006 (monday).



was gonna call Pat bk & leave VM this morning 7am on my way to work, to my surprise someone picked up the phone with just "hello?" - this added to my suspicion. i asked for Pat's ext & left a VM on pat to contact me to reschedule.



then i got a VM bk from another person named Dieatra, i called bk & spoke with her. she wanted me to come in for interview tomorrow (jan 10, 2006) and verified my email addr saying she would send me a confirmation + direction to the Iselin, NJ office.



this was around 10am, i waited for hours, the email did not come. i called bk - someone (who wouldnt tell me her name, i think it might have been Pat?) inquiring about my email.



get this - she said "we usually send these emails out at 3pm!" right away i thought it was strange - cuz as you all know these days it takes just minutes to send emails out. it was just direction + appt confirmation after all. i asked the lady to give me Dieatra's VM since she wanst available, she said Dieatra did NOT have VM.



i waited and waited, 3pm came & went. i called PEG at 3:30pm, spoke with a lady telling her that i was still waiting for the email. then i asked for Dieatra, THIS time she HAS VM all of the sudden. i left her VM that i hadnt got any emails from her. i also left VM on someone named Paul Jacob.



by then, i've done my researched online - stumbled to THIS GREAT WEBSITE + BBB, they'd confirmed who the PEG really is!! a PAYING career counseling svs...



i heard nothing from them and i left work 4:30pm as usual.



when i got home, i got a late email from Pat with directions + confirmation to meet them.



i finally sent them a declined email and thanking them to contact me.



i wanna thank you all for those posted here, if it werent for you guys, i would have wasted my PTO half a day off from work.



so be warned - if you have been contacted by PEG unsolicited cuz you posted your resume even on a reputable popular jobsearch website, read what others wrote, have your information in hand & make a sound judgement call.



so thank you, thank you & thank you!