17 April 2007

Vericomm and MBF Leasing bring their false and deceptive business antics to Nashua.

23 Aug 2011 Update: You know they won in NY but Senator Kelly Ayotte still failed to do anything about it as NH AG and she sucks now on the CFPB and CDO Fraud issues.


The Jackie Robinson post is still on hold not because of the Virginia shootings or my former English teacher Dorothy Icove, but because I've been interviewing local business owners who have been aggrieved by Vericomm and MBF Leasing. As their respective links indicate, these guys are a total bait & switch operation.


Heck yeah Vericomm's been sued for fraud before, that's a 2006 Diversity Fraud Action, CLCD, Inc. v. Vericomm Corporation, Maryland 8:2006-CV-01961


I love breaking stories on the blawg; and of course this would happen today as my biographer James O'Brien's paper "Boston NOW" premiers as a blog-feed newspaper. It is truly the wave of the future.


Here's how the scam works:


The Vericomm dude pulls up to your community store and offers you good rates on your credit/debit card transaction management. You see the rates and agree (they lie about those rates, BTW), and you sign only the front page of the document seen as Attachment 1. Since English is often not your first language, this is done quickly, with the representation that it's just a signature to switch over the service to Vericomm.


The MBF Leasing letterhead is kept folded under, and once they've got your signature they just add the rest of the information to the form, which is actually -- get this -- a 48-month lease for a new machine that they send you with rates I've heard to be $99.95/mo. to $179.00/mo. at the A & P on Lock Street. You want out of the contract, they try to charge you $5,000.00 according to Suman Adhikari, owner of Kirkpatricks' neighborhood store.


"I can buy that machine for $300.00" says Mr. Adhikari, adding that he never saw the fine print pages (1/2/3) and that the Vericomm dude just drove off with his signature with a promise to copy the paperwork at Kinko's and bring it back. He never did, and the next time he saw the page he signed was months later when he started getting MBF Leasing bills. Conspicuous by their absence are any initials "S.A." on the fine print pages.


"They sent me a machine and I sent it back the next day and told them to leave me alone, now they just keep on calling me," said "RP" at the Lock Street store.


I'll be following up with the Hudson Stop convenience store as well.


Now I'm off to the Telegraph, and to my local attorney friends, then perhaps on to the State and U.S. Attorney's offices. Those guys are so busted.

11 comments:

Christopher King said...

The Telegraph is reviewing the matter; Publishers Pappas and Van Fleet greeted me today and assigned it to Ashley Smith.

It is likely that Ms. Smith will have an actual complaint, or several various complaints, to report shortly.

Meanwhile Alderman Teeboom and I discuss the matter openly with city and media folks:

*********

Heh-heh you may be right about all of those, Fred, but this one I can personally help dismantle.

Cheers,

-c

FRED TEEBOOM mrteeboom@verizon.net wrote:

This is nothing compared to the Nigeria Scam, where $millions are waiting for you in an off-shore bank account (as evidenced by the Internet bank address of a very legitimate-looking off-shore bank, with a phone number where the Bank President/Bank Secretary/Bank Treasurer/Bank Director are eagerly awaiting your call)....after you pay the $------ transfer fee, followed by the $------- export fee, followed by the $--------import fee, followed by the $---------exchange fee, followed by the $---------- bank transaction fee, followed by.....well, you get my point.

This is nothing compared to the e-Bay Scam, where, shortly after signing up with e-Bay, you get an e-mail message asking you to confirm your social security number and your bank account number and your drivers license, "for your own protection".

This is nothing compared to an even bigger scam, the prices we pay for drugs in the US.

This is nothing compared to the biggest scam of them all, the war in Iraq.

-Fred Teeboom.

*********

Peace.

Christopher King said...

In comes WSMN 1590's Jennifer Horn:

************
Jennifer,

Solid.

-c


"Jennifer M. Horn" jenniferhorn@comcast.net wrote:

Good job, Chris - drop me anupdate late next week and when I get back in town maybe we can schedule some time to talk...

--
Best wishes,
Jennifer Horn
"On The Air With Jennifer Horn"
603-883-9900 Studio
WSMN 1590AM New Hampshire
www.JenniferHornOnline.com

-------------- Original message --------------
From: Christopher King kingjurisdoctor@yahoo.com

Hi Jennifer,

I'm pretty sure a Complaint will be filed with the AG's forthwith. And I don't think it's going to end there, hardly.

I've got a call into Prosecutor Tim Goulden.

Cheers,

-c

Anonymous said...

Chris,
I am very interested in what more you have found out about this scam. I am an attorney in Boston and have a client who just presented me with a very similar set of facts regarding MBF Leasing, Vericomm, and a contract for credit card services. Send me an email when you get a moment: ralbertsen@brown-brown-pc.com
Ryan

Cynthia Homuth said...

We are from Texas and the same thing happened to my sister. The business that fronted for MBF Leasing was Integrity of Texas. But it is the same. IT is all over. I was in Lousiana and someone was talking about the same thing happening to them another front company but MBF or Northern Leasing was behind it.

Anna M Smith, Wyoming said...

Same company MBF Leasing, same scenario, same crap. Now what?

Anonymous said...

unfortunately your best bet is to close down your checking account. only way to get them to stop dinging you for the monthly fee. you can get out of their leases - but it takes a long time and plenty of patience.

you can actually get the terminals for free now...

www.capital-bankcard.com

Anonymous said...

FYI this type of lease also requires verbal approval from the principle listed on the lease paperwork. A merchant must verify personal information and verify that they understand they are paying X amount of dollars for X amount of months. If a merchant can't understand English or can't read maybe they shouldn't be in business.

Christopher King said...

Problem is, the merchants I spoke with did not receive the entire contract and were lied to.

Also, the word is "Principal" and if you don't know that you shouldn't be posting comments.

Later.

Kathy Tarochione said...

Hey Chris this is great. MBF is now in Harrison, Arkansas. We are the Backyard Framer, Inc. and got scammed by Dana Mansfield. It happened exactly as you stated. Not only did we file with several Attorney General Offices, Better Business Offices but also with the Federal Trade Commission. We got our Congressman to file a complaint directly with the FTC. We filed a lawsuit with the small claims court and put a "Fraud Alert" on our credit report with all the credit reporting agencies. Because they sent us a lease from MBF Leasing (a company we never heard of) in the mail, this also constitutes US Postal Fraud. We're filing there too. These guys must be stopped and anything you can do to help us would be great. Kathy

Christopher King said...

Hey you know the major case in NY was resolved in favor of Plaintiffs, right?

Senator Kelly Ayotte, as NH AG, ignored my report on this.

Go to the Kelly Ayotte Legacy post linked at the top of the Joe Arpaio video post, then scroll down to read this in red:

And remember Vericomm/MBF Leasing scam that many Attorney Generals were fighting? The Class Action FRAUD case in New York continues watch the video and read the Decision in Pludeman v. Northern Leasing Systems, 2008 NY Slip Op 04183 (2008). The class was certified on 24 April 2009, 2009 NY Slip Op 51290U read the comments. But Kelly Ayotte ignored my complaint on that, of course.

.....Ahhhh, nothing but the best for our U.S. Senate.

parsmarketfoods said...

You also need to add East Payment Solutions Inc, into the list of the new frauds, They are also partner with the huge scams NORTHERN LEASING SYSTEMS Inc, I am posting you my story so more people be aware and take this seriously as new scams!

My name is Armin Babaei and I am owner of Pars Market LLC. About a year ago I met the owners of East Payment Solutions, Jake Bensimon ,one of the owners, walked into my store and introduced himself as the owner of a merchant processing business. He seemed like a nice man and very intent on switching my credit card processing so that I could save a lot of money. During that time, I was using Heartland Merchant Services. After he convinced me to switch companies, he returned with Mike Forst who then introduced himself as Mr. Bensimon's partner. Since they represented themselves as the owners of the entire credit card processing company, they insisted that there would not be a middle man and I could start saving money immediately by using their service. They promised to pay my termination fee of $295.00 so that I could use their service without any worries. Yet after I had terminated my contract with Heartland Merchant Services, East Payment Solutions refused to pay my termination fee. I told Jake and Mike that I would not sign a contract just in case if that later on I needed to cancel the service, I did not want to find myself in a problematic situation. They assured me many times that there would not be a contract or any hidden fees and that I would be able to switch companies at my convenience. This all occurred during the busiest season at my establishment. They returned to my store with several papers and told me that they were necessary for processing my information and depositing the money into my account. After that they convinced me that this company would process all of my Credit / Debit Card transactions. Come to find out that the rate they had given me was amongst the highest rates in the market that anyone could get! Also, they signed me up for a Check processing service (the machine was defective) that I did not want or need yet despite telling them several times that I did not want that service, they did not cancel it. After sometime, I began to receive my monthly statements and I discovered that Jake Bensimon and Mike Forst were in fact contractors for a company called First Data; and that Jacob and Mike were only middle men responsible for supplying new clients to First Data. By end of the month, I was being charged through First Data (not through East Payment Solutions) as they processed my transactions. Then to my surprise, I discovered that I was also being charged through the Northern Leasing Systems company. When I confronted Mr. Forst about these multiple transaction he told me that he was not making profit by processing my transactions. Mr. Forst and Mr. Bensimon were being dishonest and manipulative and stole a lot of money from my business under the premise of cutting some of the costs of running my establishment. I hope by reading my story someone will be able to assist me in resolving this issue with East Payment Solutions and Again Please be Aware of East Payment Solutions their office located at 15400 Calhoun Drive
Suite 350 Rockville, MD 20855

Signed,

Armin Babaei
Owner and CEO
Pars Market
Columbia, Maryland