For Release: July 29, 2009
Contact: David Clementson
Email: dclementson@oag.state.va.us
Phone: 804-786-2071
Attorney General Sues Companies that
Target the Unemployed
Virginia Employment Services, Virginia Personnel, New Beginnings Defrauded Job-Seekers in Norfolk, Virginia Beach
RICHMOND – Attorney General Bill Mims today announced that a legal action has been filed against Virginia Employment Services, Inc., Virginia Personnel, Inc. and New Beginnings, Inc. for defrauding job-seekers in Hampton Roads.
The Attorney General alleges that the companies violated the Virginia Consumer Protection Act by defrauding consumers. The companies posted job opportunities in local newspapers and on the Internet. The companies charged consumers hundreds of dollars in “membership” fees in exchange for “guaranteed” jobs, but then offered little or no assistance in finding employment. The companies refused to provide refunds, and made unauthorized charges to debit and credit cards, causing consumers to incur over-the-limit and overdraft fees. Two of the companies have shared office locations. James or Karla O’Leary served as principals for each of the companies.
The Norfolk Commonwealth’s Attorney’s Office settled with another O’Leary company, Jobs Plus, Inc., in 2006 under its authority to enforce the Virginia Consumer Protection Act. Since then, it collected complaints about the other three companies, but turned these complaints over to the Attorney General’s Office on March 27, 2009. The Attorney General’s Office investigated the complaints, obtained extensive records from the targeted companies and met with representatives. When the companies refused to reimburse consumers or halt prohibited conduct, the Attorney General filed suit.
“People are working so hard to get through these tough times,” Attorney General Mims said. “And yet, Virginia Employment Services used this as an opening to solicit those who can afford it the least -- people who are desperately seeking jobs. These people should get their money back, and the prohibited conduct brought to a halt.”
The Attorney General’s lawsuit seeks full reimbursement to each consumer for “membership” fees (typically $365 or more), as well as reimbursement for over-the-limit fees and overdraft fees incurred by unauthorized charges. It also requests a permanent injunction from such conduct in the future, as well as civil penalties and attorneys’ fees.
Consumers should report such activities of Virginia Employment Services or any other company to the Office of Consumer Affairs at 1-800-552-9963 or www.vdacs.virginia.gov.
