A New Scam Targeting College Students
Sorry, this is going to be published in multiple upgrades because of my current lame internet connection.
Tuesday July 24, 2007: I was wrong--the students were selling product from Firstline, not Protect America, Inc. Protect America, Inc still has numerous complaints.
My pal Karoli writes about a scam targeting college students"The Prodigy" travelled to college campuses this spring and summer. According to a press release:
To recruit show contestants, The Prodigy visited college campuses across the country, where over 10,000 students were interviewed. Two thousand students were selected for the show’s initial challenge.
The show is being produced by a firm set up solely to recruit kids to sell product.
The hitch is, the "contestants" are going door-to-door selling product from Protect America, Inc., Firstline. Firstline also has numerous complaints, see below the fold.
Protect America, Inc,., is a retailer of home security systems that has many complaints against them. Protect America, Inc, has a Unsatisfactory rating from the Better Business Bureau, in addition to other complaints.
So it looks like Protect America, Inc., Firstline and the principals in the faux reality TV company got 2,000 new door-to-door employees for a pittance.
Sorry about the messy bits that follow--the wireless connection is really spotty.
Cutting to the chase. Protect America, Inc. was founded by Thad Paschall and Turner Bowman, of . Protect America, Inc. adopted a "network marketing" format in 1997. Firstline Security is owned by Trevor Keyes and Wright Thurston of Orem, Utah.
Both are Firstline is using the ploy of
a reality television series, set to run on national TV in 2008. The show will focus on Firstline's 2,000 sales reps to find "the next entrepreneurial prodigy" and award that winner $1 million.
This is where it gets interesting. The principal behind "The Prodigy" is one Bryan Ferre (Executive Creative Director for the reality show), who is also
a Managing Partner with Fauver Partners, LLC, an international consulting firm specializing in interactive and business communications and is currently Chief Marketing Officer for Firstline Security
Well, Fauver Partners seems to be a home business based in Utah. Here's more on Ferre:
http://www.consource.org/sponsors.asp
Bryan Ferre
Bryan Ferre is a Managing Partner with Fauver Partners, LLC, an international consulting firm specializing in interactive and business communications and is currently Chief Marketing Officer for Firstline Security. Beginning in 1990, Mr. Ferre has built an international reputation as a brilliant strategist using the Internet as a primary driver for business communications and business process management. In 1999, Bryan was appointed senior art director for the world-wide Web properties of Intel Corporation. Under his direction Intel launched three online properties, including the Intel eBusiness Center, Intel Web Outfitter, and Gatherround.com while working for EURO RSCG Worldwide. In 2000, Bryan formed Cimbeo, an international consulting firm in Washington DC. Cimbeo created a global eMarketplace supplier on-boarding system valued at more than $8,000,000 that increased supplier retention and adoption by more than 452%. Cimbeo provided consulting services to AERA, a Naval Logistics Management Company and Quadrem International in the Netherlands. In 2001, Cimbeo was acquired by Anderson Group in Philadelphia, PA for an undisclosed amount. In 2002, Brian.... formed Fauver Partners. The company provides consulting and design services for national clients including Firstline Security, the fastest growing home security company in the United States. Since 2005, Bryan has served as the Chief Marketing Officer for Firstline and currently serves on its Board of Directors. Bryan's work has been featured in Communication Arts, HOW Design, and The Loupe. He is a former member of the Board of Directors of the Metropolitan Washington DC Art Directors Club and is the recipient of several awards for his work.
edited to remove information at Mr. Ferre's request
I wonder how Ferre got into business with Trevor Keyes and Wright Thurston?
Firstline brings security to masses
Trevor Keyes and Wright Thurston found a new way to meet an old need.
The home-security business has been around for more than 100 years, with companies offering various types of security to mainly affluent clients. But until Keyes and Thurston founded Orem-based Firstline Security, few had offered home security that is both effective and affordable to nearly everyone, thanks to a direct-sales method that cuts out the middleman.
Keyes and Thurston, who met when both were up-and-coming young managers at a cell phone company, built a direct-sales force made up mainly of college students who work summers in cities around the country.
They extensively trained their salespeople and handsomely rewarded their successes: some workers made more than $100,000 in one summer, paying for their entire college educations. And they paid for all of this using credit cards until they could adopt more traditional practices.
One of the company's current sales and recruiting methods involves a reality television series, set to run on national TV in 2008. The show will focus on Firstline's 2,000 sales reps to find "the next entrepreneurial prodigy" and award that winner $1 million.
Complaints about Protect America, Inc.
Ripoff Report
Consumer Complaints
Complaints about Firstline Security
Firstline Security
370 W Center St
Orem, UT
84057
07/03/2007 Posted by squeezit
I worked for this company it is a lie, scam call it what you will. Do not get a security system from Firstline security. And most of all don't work for them. If you work for them when you quit they will tell you oh yeah you owe us more money then we ever paid you. i worked for them for 2 months and the manager said if i take them to court they'll also charge me another 6,000 dollars.
04/12/2007 Posted by blechlit
I had a "free" system installed on 04/06, however the assigned technician was not able to get the system working without errors (after three attempts on three different days). After his first installation attempt, a door sensor fell off as soon as he left the house. After fixing that, he determined that the motion detector was also not functioning and it was replaced. Now the central battery is not charging and he was going to have corporate complete a remote end-to-end diagnostics test and call me with the results. The callback never happened. Luckily I cancelled within my three business day allotment but now I cannot get them to remove the system. To speak with the "new accounts" department it normally takes at least 20 minutes on hold to reach someone. The "specialist" assigned to my account scheduled an appointment for system removal with the same technician for 5:15PM on 04/11 and of course no one showed. After spending another 20 minutes to reach my specialist, he explained that the technician’s internet access was down and he had no idea that he had an appointment - even though we left him a voicemail on his cell the evening of 04/10! The appointment was rescheduled for today (04/12) at 5:30PM and again no one showed up. Today's customer service experience was the worst; I was disconnected twice after waiting 10 minutes on hold to be transferred to new accounts. It was explained to me on my third time calling that my "specialist" was out of the office and no one else was permitted to handle my account AND all managers were too busy to take the call. The operator even took me off hold and asked if I could take a transfer (thinking I was a coworker)! Overall, both the technicians and the customer service representatives are clearly not trained to standards. Thankfully I was lucky enough to cancel my account in time but now I cannot even give them the system back! STAY AWAY FROM FIRSTLINE SECURITY!!!!!
Firstline is unreliable
03/22/2007 Posted by kjsalvner
We've had our system in place since Sept 2005. It has yet to work! Our system was installed in WA state but any Firstline system comes with the same customer support....out of their Orem, UT office. Firstline will not discuss removing the system and instead wants to upgrade to a more expensive piece of wall art. We've had too many Tech's out and none could fix it why woudl we want their service at all? Firstline's security line was patched into our main land line and it keeps our land line 'captured' (theri word) and unusable. Bottom line, the security system doesn't work and even in the event of an emergency, we can't call out for help. No warm fuzzies here for how Firstline keeps their customers secure. Don't install their systems unless you want to risk your families safety.
Pros: None
Cons: Poor customer service, no call backs, techs don't know what they're doing, unreasonable, etc.
Don't let guard down when buying security system Vicki Lee Parker | the (Raleigh, N.C.) News & Observer July 15, 2007
Scot Scheuring got a bit of a consumer sucker punch.
A door-to-door home-security salesman persuaded him to sign a three-year, $1,600 contract with a company that wasn't licensed to do business in the state.
The Raleigh, N.C., state government worker said that he is generally a smart shopper -- checking the Internet and reading reviews before buying. This time he let his guard down.
Scheuring blamed his lapse in judgment on a couple of things.
One was that the young man who showed up at his door wearing a shirt with a Firstline Security logo said that Scheuring's neighbor had sent him. The neighbor even confirmed it.
He also told Scheuring that the home-alarm service uses cellular technology to connect to the monitoring station.
Because he doesn't own a land-line phone, Scheuring had been looking for an alarm company that would work with his cellular-phone system. The young man promised free installation, equipment and activation, as well as a discounted monitoring rate of $44.95 a month if Scheuring agreed to keep a company sign in his yard and stickers on his windows.
Scheuring agreed. But after the salesman and the serviceman left his home, he had second thoughts. He did some research and learned that Firstline Security was a reseller, or an authorized dealer based in Orem, Utah. The system was made by Alarm.com and if Scheuring had bought directly from Alarm.com, he would have paid about $10 less per month for monitoring. Scheuring then called the North Carolina Alarm Licensing Board, a department of the state Attorney General's Office, to ask about Firstline Security.
That's when he found out the company didn't have a North Carolina business license.
Mark Poole, who works for the Alarm Licensing Board, said Firstline had applied for a license in May, and it was still pending.
"They can't conduct business in North Carolina until they have a license," Poole said. Before it can receive a license, his office must complete a background investigation that includes criminal history checks on the company and its employees.
Cindy Sullivan, director of subscriber services at Firstline Security, said it was not unusual for the company to start operating in a state before it has a license.
Poole's office has issued a "cease and desist" order to Firstline Security. The company is appealing.
Scheuring canceled his contract with Firstline without penalty because he notified the company within three business days after it was signed.
Before you sign up:
Ask salespeople and service workers to show the registration card that proves they are registered with the state. If they decline, don't do business with them.
Don't let salespeople into your home.
Ask whether the company is an authorized dealer -- meaning they sell equipment and monitoring systems that are made by other companies. If the company is an authorized dealer, you may want to check directly with the original company they claim to represent to make sure.
Don't be pressured into making a decision immediately. Ask the salesperson to leave information about the product and a contact number. Look up the company online. Compare its prices and services to at least two other companies.
Story from Durham, North Carolina
The salesmen went door-to-door in at least two Triangle cities and they've got state authorities checking out the way they do business.
The security system salesman's pitch got Ken Gasch's attention. "How myself, and my family would be susceptible to all kinds of different things, and really playing that fear," Gasch explained to Eyewitness News reporter Anthony Wilson.
That made Gasch, president of Durham's Inter-neighborhood Council, suspicious. He asked for proof the company, Firstline Security, had city permits for door-to-door sales. "When he didn't have those proper permits, I told him to get out of the neighborhood," Gasch said.
Raleigh resident, Scot Scheuring bought a security system from another Firstline salesman who said it would work with his cell phone. After checking online after the sale, he learned that Firstline wasn't in line. Scheuring said, "They didn't have their license yet, to be operating in the state of North Carolina."
He also learned Firstline re-sells another company's system which would have charged him $10 less per month.
Scot went public in a big way, going to the website ripoffreport.com and documenting his experience with Firstline. The complaint runs almost 19 pages long.
He posted e-mail from the company which has a Raleigh business license, but he also noticed, "The contract had a 3-day cancellation clause in it, so I immediately faxed that to 'em. I also express mailed it to 'em." Firstline is removing Scheuring's system.
But Gasch has another concern. "Concerned about the little old lady who's by herself, and them playing this fear card to get them to spend money that they may or may not have," Gasch said.
The Attorney General's Office sent a cease and desist order to Firstline.
Door-to-door sales companies recruit university students with promises of big money; while huge paychecks are possible, there are things students should know before signing up. Companies selling home security alarms or pest control contracts focus recruitment on college campuses.
Job advertisements state "Thousands of dollars in only three months" and "$500 just for signing up!!!" Information meetings often offer free pizza and movie tickets.
Mark Poff, a recent U alumnus who worked one summer as an alarm-system salesman, said the companies especially target returned missionaries.
"We're used to knocking on doors," he explained.
Poff estimated that 80 to 90 percent of the salesmen he met were returned missionaries from Utah schools.
Even though religion is used to recruit, the companies employ strict business practices that students should ask about before signing up, Poff said.
For example, many companies promise a $500 signing bonus. But salesmen are paid only half of the money they earn in a pay period. The other half goes into what is called a "hold fund," from which the company can deduct money, should any clients cancel their contracts.
"The remaining funds are then given to the salesmen, usually in February, and it is almost always less than what you think you're going to get," said Patrick Kilbourn, a former Salt Lake Community College student and alarm salesman.
What recruiters don't always tell potential salespeople is that this half-and-half payment system often includes the "signing bonus." In reality, that money is often eaten up by contract cancellations well after the summer job is over.
Kilbourn and Poff both added that another promise made is free rent for the entire summer.
But many of the companies only provide the rent for free if they sell one contract per day. If they fail to do so, the rent is automatically deducted from their paychecks, they said.
Another company selling satellite dishes only discloses after students have signed up that free rent is contingent on "100-percent attendance."
"The rent was a joke because if you missed any work, they wouldn't pay for it," Kilbourn said.
If they do miss a day, the money is deducted, often from the hold fund so the students don't know until after the summer is over.
Other companies set a "reasonable housing fee," they explained.
Poff said that he and his three roommates paid $400 a month per person for a four-bedroom apartment.
"But then we asked our neighbors (who weren't part of the program) what they paid, and it was only $900 a month (total) for the same apartment," he said.
When the company was confronted about the inflated prices, Poff was told that the extra money goes toward rent in other areas where the prices are higher-as it does for missionaries.
"It's like they were trying to recreate our missions in a creepy kind of way," he said. "That really made me mad because they were just using religion to get us to sell their contracts."
In spite of the loopholes, most salespeople asked said that they made a large amount of money. The commission is about $500 per contract.
Eric Brady, a pre-medicine junior, worked for Stone Security last summer and made $10,000.
"It was my first time out there, and I was just OK at it. There were guys who made $20,000, $30,000 and $50,000," Brady said. "It's really hard work and really discouraging sometimes, but if you're willing to work hard, you can make a ton of money."
If you only sell two contracts a week, that is $1,000 per week, as compared with $250 a week working at a bagel store. If you sell one contract a day for three months, you could make $32,000 to $35,000 dollars, he said.
Andy Smoot, a junior in sales and tech services at Weber State University, said he made around $20,000 last summer.
"What you should know about selling is that it is mentally challenging," he said. "(It's) like a mind game because sometimes you'll sell two (contracts) in one day, and then none the next week."
But if you can break through that barrier, he explained, you can pretty much make as much as you want.
Karoli's son's story starts here and continues here.
My previous posts:
A New Scam Targeting College Students
Door to Door Sales and College Students
More Lies from Actuality Entertainment
Other bloggers
Ivory Power and here and here
Steven and LaNelle Simons: here and here (they are Firstline employees in Washington State)
West Seattle Blog on Firstline (read the comments)
Mikey Preston's Evolving Impressions: here and here
Natalie's Crazy Life: here
Otterstorm: here (he was selling in Pittsburg and quit after his Firstline-provided apartment was without power for a week).
MSM reports
ABC-11 from Durham, NC, July 9, 2007: Firstline not licensed in NC, but selling door-to-door
Liz, thank you for digging deeper into this. When the Eldest first told me about this, I looked all over the internet to find info about this operation, but at that time they were posting announcements on myspace, their web registration was private, and I couldn't seem to dig deep enough into what they were doing to turn up anything.
Reading this makes me furious. Just livid.
Posted by: Karoli | Saturday, July 21, 2007 at 09:42 PM
After reading your post, I called him and read it to him. He's on his way home tomorrow. My anger is white-hot at this point...I wrote a blog post about the sick marketing on their http://gofirstline.com site, and tomorrow's installment will be entitled The Unreal Allure of Reality.
Posted by: Karoli | Sunday, July 22, 2007 at 02:28 AM
From
http://www.bizjournals.com/albany/stories/2005/03/14/daily1.html
Integrated Alarm pays $4.4 million for alarm contracts
The Business Review (Albany) - March 14, 2005
Integrated Alarm Services Group Inc. has increased its alarm monitoring portfolio by another 5,000 contracts.
The Albany, N.Y.-based company acquired the residential contracts from Firstline Security Inc. of Orem, Utah, for $4.425 million cash. The contracts generate $150,000 of recurring monthly revenue (RMR), meaning the purchased price represented a multiple of 29.5 times RMR.
"We are very familiar with the Firstline accounts as we presently monitor and perform billing for these accounts," said Timothy McGinn, Chairman and CEO of Integrated Alarm (Nasdaq: IASG) "As such there is minimal integration required."
About 90 percent of the Firstline contracts are located in Integrated Alarm target markets, including California, Michigan, New Jersey and New York. The accounts are monitored by the company's central station in Manasquan, N.J.
Integrated Alarm is the largest wholesale provider of alarm servicing contracts, monitoring nearly 800,000 alarm systems in its own portfolio and on behalf of 5,000 dealers nationwide.
Posted by: Liz Ditz | Wednesday, July 25, 2007 at 10:53 AM
hi,im travis stevens a sales rep for firstline JaX Florida,iv sold over 60 accounts my 2 months in the alarm industry,
yes i had issues not getting paid w/icon security,i came to firstline my second month in the business and iv been paid on all my accounts,the product is the best,idc what ppl say its OVERPRICED,its cellular it works off cell towers NOT through a phony security system tht runs through a phoneline tht can be disarmd by a $1 pair of scissors,or through sattelite thtl not work during a storm,firstline offers more for your money then any other alarm company thts Y we are an INC 500 company and #1 alarm company TWO years in a row,in 4 years we WILL be a fortune 500 company,YES i have my doubts about the prodegy i do think its a recruiting tactic,but this company not only has a great product but the oppertunity and the learning expierence is awesome,u past reps who had bad expierences,u didnt get paid,ask ur self did u work did u put in the full hours? or did u get discouraged and get on ur phone 24/7 and find excuses y u arnt getting paid?
firstlines hard work but great oppertunity presents itself if u cant work hard dont bother w/this job.
Posted by: Travis Stevens | Sunday, August 05, 2007 at 12:13 PM
From CBS 5 in the San Francisco Bay area titled "Problem Solvers - Alarm Systems." by Jeanette Pavini.
October 26, 2006
" Robert and Kathy Grant signed up for a home alarm system from Firstline Security and ADT. Firstline supplied the alarm hardware and installation, and ADT provided the monitoring service - at first.
After a few months, Firstline switched the alarm monitoring from ADT to Criticom - a company not licensed by the state. "My initial reaction was to ask them to change it back to ADT," said Robert Grant. Firstline refused, saying they were within their rights to sell the monitoring of the alarm system.
CBS-5 talked to Firstline Security, who agreed to switch the Grant's alarm service back to ADT.
Buying a home alarm can be tricky. In California, the company you buy your alarm system from can sell your monitoring contract to other companies as long as they provide the same service - and they don't have to notify you.
So, if you want to be sure who is monitoring your system, make sure your contract says your service can't be sold. It's also a good idea to see if the alarm company is licensed. Licensing gives the state oversight over a company's operations and employees.
You can check licenses on the Departmen of Consumer Affairs website, where you can also file a complaint against an alarm company.
Posted by: Pam | Saturday, August 18, 2007 at 05:46 PM
I found the news story titled "Problem Solvers - Alarms Systems" using Yahoo as the search engine, it didn't come up for me using Google.
On the CBS 5 website, it's also hard to find, but it's there. It includes a video.
Posted by: Pam | Saturday, August 18, 2007 at 06:56 PM
First Line is a non reasonable company with a poor door to door sale reps.They have falsly offered me money to not opt.out in a very reasonable time frame and took my check
and electronically sent it through 3 times
and got money,causing my account to bounce.
I am physically disabled and have brought this to the attention of the Attorney General's Office.They are good at confusing
the customer when calling to opt.in a 3 day
bogus time frame in which the weekend was
considered a buisness working day or day's.
I have been thrown around like an idiot as
my findings here in St.Louis Mo.is just what
I thought to be A BUNCH OF DEAD BEATS HUNGRY
TO MAKE RICH.
GAIL
Posted by: Gail Tenney | Monday, August 27, 2007 at 10:07 AM
My experience with Firstline has been
unbelieveable. If you are thinking about
dealing with them, first go to your dentist
for a tooth extraction, buy a used car, and
get up and speak in front of a thousand
people about something you know nothing
about - all in the same day. This day will
prepare you for what's in store for your
dealings with Firstline.
The door-to-door salesreps are taught
very aggressive, predatory techniques to
close a sale. I have always thought a
successful business was one that brought
some extra-ordinary value to a customer.
Firstline's success rests in selling to
anyone by saying anything. Honesty is not
something you should expect. Someone who
studies business should do a case study on
Firstline because they have obviously taken
making money in unscrupulous ways to a
whole new level.
Corporate governance - this company lacks
conscience for running a company in this
manner. And what is really ironic and just
makes me laugh as I type this, is that they
are in the SECURITY business! I mean, who
do you want to be protecting your home?
A disgustingly deceptive company - NO, I
don't think so...
Posted by: Guy | Sunday, October 14, 2007 at 09:30 AM
I have read with interest your assertions on this blog. I find it incredible that you would find enough time to sit and dig up this stuff. It appears though that you are proficient in research.
I would like to ask you to please remove my personal information from your site.
I do not mind if you publish your opinions and the "facts" as you see them. I will not ask that you change your post as it relates to your views. But I will ask you to please remove the referrences to where I live and my family.
The biography that you have published here was stolen from a Copyright protected Web site and was published for their exclusive use.
As long as we are questioning ethics -- is it right for you to lift Copyright material for publication -- Note: I did not ask if it was legal -- I asked if it was right. For one who argues so fervently for that which is wrong with your world, I have to question your willingness to copy content without at least first asking if you could use it.
Please remove my family information immediately!
Thanks
Bryan Ferre
Posted by: Bryan Ferre | Tuesday, October 30, 2007 at 07:54 PM
Thank you!
Posted by: Bryan Ferre | Tuesday, November 06, 2007 at 05:15 PM
firstlie......... It is all in their name.
Posted by: Apex | Wednesday, December 05, 2007 at 12:15 AM
It does sound like a scheme asking all of 2000 people to compete and sell products for Firstline and only to find out at the end of the filming, (oh, don't get me wrong, the camera was rolling all the time like everything was for real.) I think that the master mind behind this is to get people to sell as much as they can and dump them when the summer is over. The producer of the show has no show, and the actors wasted their time. As for all the employees recruited from the show to sell for them, oh, well, you may not get the backend they promised you. I think that these evil people will get what they deserve from God.
I am sorry for your friend.
Posted by: John | Thursday, January 31, 2008 at 03:05 PM
i worked for firstline last summer as a technician. they didnt train me at all, they just gave me my tools and an installation manual and sent me into customers homes. i felt guilty about my work after being there a few weeks and learning about how stuff really went down. salesman would straight up lie to customers and expect you to carry it on. i made around 800 dollars in 2 months, paid in 800 for rent. beware of the pay stub with no breakdown, firstline will even loan you money!!! i hope you get my point, if you have any moral structure stay away from firstline(well that doesnt matter now that they are bankrupt). beware however, there are plenty of other firstline-esque security companies. i.e. pinnacle
Posted by: jacob | Tuesday, February 12, 2008 at 09:19 PM
It seems like everyone and their dog is trying to scam college students. I thought college students were supposed to be smart, but I guess everyone thinks otherwise.
Posted by: Roddy Whyte | Wednesday, October 01, 2008 at 08:02 AM