MyFox New York
College
Students Say University Painters Victimized Them
See below for transcript of the FOX News story on University Painters. This
was broadcast in New York and reportedly reached 12,000,000 viewers.
Authorities are calling University Painters predatory. They say the company lures in unsuspecting college students looking for a summer job and sets them up for a rip-off. Mary Garofalo investigated the situation.
Ernie Anastos (Fox 5 News Anchor): The word is predators. That's what the authorities are calling one company luring in unsuspecting students simply looking for a summer job.
Rosanna Scotto (Fox 5 News Anchor): And now law enforcement officers in some states are looking to shut them down. FOX 5's Mary Garafalo is here with her investigation.
Mary Garofalo (Investigative Reporter) You've probably seen the ads. The company is called University Painters, it recruits students on campuses across the country. But what the company is doing to them has authorities and victims up in arms and we're going to tell you all about it.
Mary Garofalo to University Painters CEO, Josh Jablon: What are you doing to these kids?
Josh Jablon: Uh, I have no comment for you.
Mary Garofalo to Josh Jablon: What kind of a business are you running that would hurt kids like this?
Mary Garofalo (Narrative): All he can do is sit there with a smirk on his
face. But this big boss is in a lot of trouble these days.
Mary Garofalo to Josh Jablon: Come on Mr. Jablon, you owe something to these kids.
Brenden Moore (Victim): For somebody to do something like this and to have such behaviors is absolutely terrible because you are preying on innocent victims.
Mary Garofalo (Narrative): Brenden Moore says he was one of the those innocent victims. A business graduate from Rider University in New Jersey, he was recruited on campus by a Virginia-based company called University Painters.
Steven Veltri (Victim): It was definitely a learning experience.
Mary Garofalo (Narrative): Steven Veltri from Ohio University was also recruited by University Painters.
Steven Veltri : I thought it was a good opportunity more than anything. I thought it would look really good, you know, ran my own business.
Mary Garofalo (Narrative): The company which touts its as the Educated Choice, hires students as independent sales reps, claiming they can earn upwards of 40,000 dollars for the summer. The student is trained to be the boss, hiring private contractors to do the work. All the money collected goes immediately to University Painters who then distributes a cut. 50% for the contractor, 25% for the student, the rest goes to University Painters.
Mary Garofalo: But before anyone is hired, the student is required to sign this unbelievable 39-page contract. With what they say are ridiculous clauses. Like the one that states that the student is fired or quits, they have to pay the company $3,000. And then there's this:
Brenden Moore: The company can terminate you at any time they feel you're under performing.
Steven Veltri: It was a 39-page contract laden with penalties.
Mary Garofalo (Narrative): The students say they were pressured into signing the contract and they were set up to fail.
Steven Veltri: All the kid's biggest concern was "are we going to be able to get subcontractors?"
Brenden Moore: I found out that I couldn't find anybody to do the jobs. They were underbid, but not just underbid but underbid drastically.
Mary Garofalo (Narrative): And Brenden says since he couldn't find contractors to do the work, he gave back his customer's deposits, and Josh Jablon of University Painters went ballistic.
Brenden Moore: He (Josh Jablon) said, "Well, you need to send in those checks." I said, "I'm not sending in the checks because I don't have people to do the work." They (University Painters) said, "If you don't send in those checks were going to file police reports with your police station and encourage your customers to do as so as well."
Steven Veltri: Everyone was struggling. Their system wasn't working.
Mary Garofalo (Narrative): But suddenly Steven and Brenden received e-mails notifying them that they have been terminated and they weren't alone.
Steven Veltri: Out of the twenty-five of us that were employed here in Ohio, twenty-two of us got fired.
Mary Garofalo (Narrative): And each of them got hit with astronomical fines that were outlined in their contract.
Brenden Moore: I started getting these e-mails that I owed the company, 3,200 dollars in the termination fee plus fines and that I owed the marketing company 3,700 dollar for all the marketing materials I had.
Mary Garofalo (Narrative): Brenden says Josh Jablon tried to negotiate a lower fee for his silence, but Brenden wanted nothing to do with it.
Brenden Moore: He (Josh Jablon) offered me $2,000 for the termination fee rather than $3,000 if I were willing to sign a release that said I would not go to any agencies and report them for their actions.
Mary Garofalo (Narrative): So Brenden paid the Company so he could go public with his story.
Brenden Moore: I had to sell my car to pay them.
Mary Garofalo (Narrative): Steven Veltri wasn't so lucky.
Steven Veltri: I did not pay the termination fee.
Mary Garofalo: University Painters put a black mark on Steven's credit rating. He couldn't buy a car, he couldn't get a loan. In fact, they ruined the credit ratings of so many students that it caught the attention of the authorities.
Shaun Petersen (Ohio Deputy Attorney General) I think what they are doing is nothing more than fleecing these students.
Mary Garofalo (Narrative): The Ohio Attorney General's Office sued University Painters for violating 14 sections of Ohio law.
Shaun Petersen: Essentially, University Painters would put these students in a program that there was no way for them to make any money, and, in fact, we have discovered that not only did they not make any money, they found themselves more often than not with ruined credit.
Mary Garofalo (Narrative): And the Maryland Attorney General's Office went after the company in 2003 for violating franchise laws and forced them to permanently cease and desist from offering and selling franchises.
Mary Garofalo (Approaching Josh Jablon): Mr. Jablon I'm Mary Garofalo with FOX 5 News out of new York City, I want to talk to you about University Painters.
Mary Garofalo (Narrative): We wanted answers so we headed to Maryland where we found CEO, Josh Jablon at this crab restaurant (Bethesda Crab House) with his staff.
Mary Garofalo to Josh Jablon: They say you set them up to fail. Is your Company actually doing that?
Josh Jablon: :::Silence:::
Mary Garofalo to Josh Jablon: Are you setting them up to fail?
Josh Jablon: :::More Silence:::
You know, you can make a business out of just the fines these kids are being charged, you know that?
Josh Jablon: :::Even More Silence:::
You know you've got cases in Ohio and Maryland?
Josh Jablon: I have no comment for you on it.
Mary Garofalo to Josh Jablon: You know your company says you're the educated choice, and you're screwing up these kids' lives. I mean what kind of educated choice is that?
Josh Jablon: :::Silence:::
Mary Garofalo: The Attorney General's Office in Ohio is seeking full retribution
for the students in the meantime, they tell us they have been in contact
with other State Attorneys General as well as State Universities and College
Newspapers to warn them about University Painters.
Mary Garofalo: Now if have you a story you would like to us investigate. Give us a call here at FOX 5 at 1-877-TELL-FOX5.
Mary Garofalo: I'm Mary Garofalo, FOX 5 News.
Recent Updates
VIDEO: FOX NEWS video exposing University Painters CEO Josh Jablon
New Shell Corporation Suspect - "First Financial Management Group Inc."
Cusik Marketing threatening a $4224.99 bill against college students
Petro Sues University Painters For Scamming College Student Workers
Seeing Red: students at Johnson & Wales regret ever becoming involved with University Painters
According to the Progressive Blog Alliance, the career services office of Duquesne University sent an e-mail to its students and recent graduates warning them of and providing a list of questionable companies, of which University Painters is one.
Research
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VIDEO: FOX NEWS video exposing Josh Jablon
Ohio Attorney General sues University Painters
Ohio Attorney General sues painting company for fleecing college students
Ashley Wisecup of Miami University files suit against University Painters
Bowling Green State University Students Darrell Kendall, Adam Hickey
University Painters, JZA Development, Jablon/Torres FCC Citation for Telemarketing