STRATUS BUILDING SOLUTIONS Sued by Franchisees for RICO Violations.
(UnhappyFranchisee.com) St. Louis-based attorney Jonathan Fortman continued his relentless fight for the unit franchisees victimized by Stratus Building Solutions today by filing suit against the janitorial franchisor for violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).
Readers of UnhappyFranchisee.com are familiar with Fortman’s ongoing campaign against Stratus Building Solutions, a company that allegedly preys upon hardworking Hispanics and other ethnic minorities who are seeking to own a piece of the American Dream. Both directly and through a tier of “Master Franchisees,” Stratus allegedly collects thousands of dollars from individuals, promising them predetermined “guaranteed” commercial cleaning jobs. Franchisees allege they either never receive the promised work, they receive work that is underbid to the point that it is unprofitable, or, in some cases, are assigned work that is then taken from them due to phony or exaggerated “complaints” supposedly originating from customers.
These are all common unethical practices in the janitorial franchise industry, in which the principals of Stratus and many of the Masters have years of experience.
Here is the press release from The Law Office of Jonathan E. Fortman:
FOR IMMEDIATE RELEASE
STRATUS BUILDING SOLUTIONS SUED BY UNIT FRANCHISEES FOR RICO VIOLATIONS
The Law Office of Jonathan E. Fortman announced today that it has filed suit against Stratus Franchising, LLC, the franchisor of Stratus Building Solutions, and each of its Master Franchisees.
The suit seeks certification of a class consisting of every Unit Franchisee and seeks damages under the Racketeer Influenced and Corrupt Organizations Act (RICO). “Stratus Building Solutions is a franchise system built on fraud,” according to Jonathan E. Fortman, lead attorney for plaintiffs. “We have uncovered numerous instances of blatant fraud as set forth in our federal complaint. The franchisor defrauded the Master Franchisors who, in turn, perpetuated the fraud at the expense of those who invested their life savings into a system destined to fail,” Fortman stated.
“What I find particularly troublesome is the manner in which Stratus manipulated its ranking in the annual Franchise 500© list of Entrepreneur magazine. To many of our clients, that list legitimized this franchise system. However, we now know that the information used to rank this franchise was not based in any fact and was, in fact, fraudulent,” Fortman continued.
“The Master Franchisees had a chance to put a stop to the fraud and protect the franchisees. Instead, the masters chose to look out for their own best interests even after being made aware of this fraud. They have blatantly ignored the devastation experienced by their Unit Franchisees. They made their bed, now they have to lie in it. We look forward to presenting the overwhelming evidence in federal court and are confident that our clients will prevail,” Fortman concluded.
The Law Office of Jonathan E. Fortman, LLC, was established in St. Louis, Missouri, in 1995. It concentrates its practice in the representation of individuals harmed by fraudulent franchise systems. Jonathan E. Fortman is the lead attorney in the case of Handing v. Contours Express, LLC in which he obtained verdicts in excess of $1.3 million for 8 franchisees of the second-largest women’s only fitness chain and has over 60 additional claims pending.
# # #
If you would like more information about this topic, please call Jonathan Fortman at (314)522-2312 or email Jon at jef@fortmanlaw.com.
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Tags: Stratus Building Solutions, Stratus Building Solutions franchise, Stratus Building Solutions RICO, Stratus Building Solutions lawsuits, Jon Fortman, Jonathan Fortman, Dennis Frese, Dennis Jarrett, janitorial franchise, commercial cleaning franchise, franchise fraud, franchise scams
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I agree with the Rico Raqueteering charges. The following is part of the Stratus complaint and one of the many Criminal acts commited by many janitorial franchisors. These people must be prosecuted and put in Prison.
" 348. In May of 2011, Ms. Walker received her first account, which she did not sign to
accept. The cleaning account, Pulmonary Associates, was to pay out $1,150 a month.
However, Plaintiff Walker was only there for 5 days before she was informed that the
client had complained she was not doing a good job.
349. After being informed she was not doing a good job, Ms. Walker went to the client
to get more information as to what she could do better.
350. The client, Tammy Katzenmeyer the manager of Pumonary Associates, then
informed Ms. Walker that she made no such complaint and that she was satisfied with
her cleaning.
351. Ms. Katzenmeyer then proceeded to ask Ms. Walker how many hours she was
working in the building. Ms. Walker told her that Stratus calculated her building at 3
hours to clean with one person. Ms. Katzenmeyer was very surprised by this and
stated that not even superwoman could clean a building that big in 3 hours.
352. Ms. Walker then informed Ms. Katzenmeyer that she had to put in extra hours in order to clean the building well. "
@Fortman, no offense, but you are speaking out of both sides of your mouth (what an unusual situation for an attorney), here you talk about how JUST you and Sean Kelly are, let me ask you a few little questions:
a) Was it JUST for you to name nearly 100 innocent employee’s of various Stratus Masters in your recent RICO filing? Do you know what the cost to those employee’s is in regards to harm done by you and your lawsuit? Do you know that some of those people have received physical threats and verbal threats by “unhappy franchisees” that they worked with? Do you know that they have had to hire attorney’s in many cases just to defend themselves from this non-sense? Do you know that some of them have lost their jobs as a direct result of this lawsuit? Do you know that many of them are now having a difficult time getting new jobs because of this lawsuit and their names being party to it?
b) How many times have you sued Stratus Corp. and won?
c) How many lives have YOU and other Attorney’s like YOU ruined because of your pointless and non-sense lawsuits? How many of those lives ruined were the actual franchisee’s that you claim to represent? How many of those lives ruined were former Masters just trying to do right and leave the system? How many of those lives ruined were employees of those former Masters that didn’t do anything wrong to anyone?
Problem with Jonathan Fortman and other ATTORNEY’s just like him, they only look at the small picture, not the BIG. They only look at getting their names on the TV, Internet Blog Sites, News Articles etc….They don’t think about the three or four that they are representing vs. the 100′s and quite honestly 1000′s that they have harmed along the way…
@Sean Kelly, YOU are just as big of a problem as ATTORNEY’s just like Fortman and others…. You RUSH TO POST and show lawsuits, allow people to be SHOUTED DOWN for opposing YOUR PERSONAL alliances such as Fortman and “name the attorney”….YOU are just as responsible as Fortman for running of people’s lives as he is and ATTORNEY’s just like him.
Since the two of you like to play in the courtroom so much, I would think you would relish the opportunity to be on the other side of the courtroom for a change……
You and your postings through the world of the internet and blogging have affected numerous people’s lives as when you google a particular person’s name and the lawsuit that you posted here shows up, your website shows up and leads them directly to the posting…I know multiple people that are having an impossible time getting work as a direct result of you, your website and the disgusting comments made by many of your posters. You have allowed for people to be attacked personally, allegations and criminal accusations made against them without any proof, you have created an atmosphere by which any Disagreeing opinion is criticized not only by you, but “minions” that you control.
So please forgive me when I take direct HUMOR in the fact that you are facing lawsuits, criticism and are having to cozy up to a COWARD like Fortman…..
See you soon!
Not so fast: At least I use my real name.
@Fortman, Well HELL, that make's all the difference in the World to the 100's and thousands of lives you and Sean Kelly have co-destroyed!!!!!
Fortman: "Well at least I use my real name"! So, that should make ALL of the people that you wrongly sued/named in the lawsuit feel better.
The people that were harassed, threatened, harmed, families destroyed, homes and cars lost, unemployment checks to live off of, feel so much better.
Fortman, this simply proves to the world, that you are a JOKE!
Sean Kelly aka Admin, is just as BIG of a JOKE as Fortman since they are both cut from the same jib.....
As an outside observer with no dog in this fight, I'm starting to feel sorry for Rutkauskaus/Not So Fast.
He really does come off like a man in the midst of a deep personal crisis. The idea that a prominent businessman with that many followers would actually tweet the racist, adolescent bile he's been sending out seems to indicate that he's lost a few of his marbles.
That's my sympathetic spin, at least. He's probably just another unscrupulous money whore.
@Viewers, So much news to share with you over my past one (1) year hiatus.....Trying to figure out which of the Stratus Posts good ole Reasoned Source should bring back to life....Let's start with this one and work our way around. Many of you missed my posts, some of you fear them, with good reason....One of the best things about my posts was the "header" or naming of them, along with some "tongue and cheek" humor......
Let's call this series, "Attack on the Clowns", because the attacks will center on multiple "Clowns" such as Mark/Jayson Bashforth, Channen Smith, Marvin Ashton and the biggest clowns of them all, Dennis Jarrett and Pete Frese........
Let's start with some of the most recent news which is the wonderful "Asphalt Jungle Boys" aka "Rocket Men" aka "San Diego Dreamin" aka Mark and Jayson Bashforth:
1) Former Stratus Master, Lincoln Baker has filed suit in California alleging Fraud, Fraudulent Inducement, Embezzlement and numerous other items. Suit is for 380k that Mark Bashforth and Jayson Bashforth stole from by misrepresentation on their Performa, their FDD, their Financials and other important items.
2) State Attorney General for Texas has formally opened an investigation into Fraud, Fraudulent Inducement, FDD violations against Mark/Jayson Bashforth and other Master Franchisee's in the State of Texas.
3) Jayson Bashforth/Mark Bashforth are facing additional Lawsuit (s) for the same issues as described above in the California Lawsuit but in other Geographic Areas.
4) Mark Bashforth is so involved with the success of his "Area Developers" and of his "Unit Franchisee's" that approx. one year ago, he got himself a Full Time Job working in Sales/Business Development for a company in Houston. Please review his linkedin profile......
5) Mark Bashforth is so STUPID for believing that Dennis Jarrett and Pete Frese would have his back on this California Lawsuit, that Jayson encouraged Lincoln Baker to contact Dennis Jarrett directly to confirm that He (Mark/Jayson Bashforth) had a written agreement by which He (Mark/Jayson Bashforth) had exclusive rights to sell Master/Area Developer Licenses for San Diego, the State of Texas and the State of Louisiana. Upon direct contact and conversation recorded as fact in the California Lawsuit, Dennis Jarrett at first flatly denied any knowledge of any exclusive agreement, then in a 2nd conversation, he denied any written agreement but their was in fact an "oral" agreement.
Of course, I am sure that Stratus Franchising received their "full payment" due for the closings of Austin, Lafayette, Dallas/Ft. Worth and San Diego respectfully from Mark/Jayson Bashforth, we know for a fact that they were proud/honored to announce those sales both in print and on website......Let's see, their "cut" out of the following sales would be not less than 50/50.....
Austin: 200k plus note
Dallas: 650k plus note
San Diego: 225k plus note
Lafayette: 150k plus note
So, 600k plus a % of the note payments went to Stratus Franchising, LLC and/or Jarrett Realty.......Wonder if DJ remembers the agreement now?
Don't you just love the LOYALTY, PARTNERSHIP, MUTUAL TRUST AND SUPPORT that DJ and Pete show their Employee's, their Unit Franchisee's and most importantly their Masters....Hell with Partners like Pete/DJ who the Hell needs enemies!!!!!!!!
Someone asked me about the St. Louis Business Journal article written on March, 2013. They wanted to know what was the "big deal"....Ok. Here it goes...
FRAUDULENT INDUCEMENT!!!!!! Does anyone have any doubt that the reason DJ stated and Pete Frese agreed with the article has anything else to do but trying to sell more unit franchises, trying to sell more area developers, trying to sell more Master Licensee's.
Stop and think, they recently tried to sell Shea Sealy's old area for 50k they even offered the opportunity to finance 50% of the fee....Do you think that Shea Sealy's old area went for more or less than 50K? That offer came through Mark Bashforth. Because Stratus Franchising has decided, well, WE can't lie anymore, but we can sure help someone ELSE LIE!!!!!!
How much you want to bet that article was sent to Afshin, Tom, John, Channen, Mark/Jayson just to make sure they were on the same page?
How much you want to bet that at least some of those guys had that article blown up and posted on their walls for potential Unit Franchisee's to see?
Now, smart people tell me this, with the following Masters out of the system and them reporting 100 million approx. in sales in 2011, how is it that they only dropped 4% when the following Masters left the system in 2012 and their revenues didn't/shouldn't have been counted....
Buffalo/Rochester
CT
Raleigh/Durham
Charlotte
Miami
Atlanta
Jacksonville
Lafayette
Indianapolis
Chicago
Louisville
MN
Salt Lake City
Ventura County
Orange County
Oregon
So all those cities, all that revenue left the system and you only lost 4 million dollars?
FRAUDULENT INDUCEMENT is why!!!!!!! Remaining Masters that aren't Afshin, Tom, John, Channen, Mark/Jayson....WHY ARE YOU STILL IN THE SYSTEM?
@Viewers, Has anyone noticed the Stratus Franchising Website over the past one year? Ever since Marissa Lather left the company, no updates...In fact, Stratus Franchising is still giving the false Illusion that it actually has more offices than it really does.....On a recent visit, I still saw the following offices listed as "Stratus Offices":
Buffalo/Rochester
CT
Atlanta
Louisville/Lexington
Indianapolis
Chicago
Raleigh/Durham
Charlotte
Jacksonville
Lafayette
And others.....Why oh Why would it take more than one year to remove those cities from a website? Could it be that they are trying to persuade unknowing Unit Franchisee's that they are still going to be part of a "National Company"? How about unsuspecting Area Developers or Masters? No one is that Dumb right? Well, recently good Ole Reasoned Source, Spoke with a potential Area Developer that somehow actually did his research and contacted me without knowing exactly who I was.....Seems the "Rocket Boy" and his Brother, were trying to sell Shea Sealy's old area for 50k!!!!!!!!! Wonder how much Shea Sealy had paid for that same area? As a "bonus" they were willing to finance up to 50% of the purchase price! REALLY!!!!!! What a Deal, I could buy a failing/destroyed/dead Brand, for 50k and have them hold a note for 50% of the 50k, wait, let Good Ole Reasoned Source break out his calculator, Wow, for 25K I could buy the rights for Salt Lake City!!!!!! What a DEAL! What do you think Good Ole Reasoned Source asked for? How about a PERFORMA COPY! Seems to me, Mark/Jayson Bashforth, through DJ are doing some mighty NAUGHTY THINGS?
Iowa
Cincy
Nashville
South Carolina
New York
Colorado
Northern Utah
Tampa
THIS is your partner continuing to destroy himself and YOU!
@Viewers: Over weekend I was asked a series of questions by some current Master Franchise Owners of Stratus: Here is the Next Question.......
Who should be deposed on the Stratus Franchising Team in order to get the most damaging evidence against Stratus Franchising?
a) Bill Blair- Former VP, Disgraced, Now running NuKastle Cleaning/Maid Service...He has been and will continue to be "thrown under bus" by DJ and Pete respectfully....
b) Marissa Lather- Former Director of Information and anything Web Related. She was the primary spokesperson for Stratus Franchising in regards to Net Operations. Currently works for herself and a Solar Company based in St. Louis. She was also rumored to be having "pillow talk" with none other than Pete Frese in the past.....
c) Chelsea Pulley- Former Office/Administrative Person for Stratus Franchising and Simpatico. She was also one of several women harassed by Bill Blair. Not a Big Fan of either DJ/Pete, has a lot of interesting information to give if asked.
Poor DJ/Pete, they see the end coming of not only Stratus Franchising, but of themselves in this Industry....Only question really left, Will they end up in Jail?
@Viewers: I have gotten a commitment from one of the current Masters Left in the Stratus Franchising System to no longer will they pay into the defense fund, nor their Fee's!!!!! One is a start:
His "turning point" was the expose' that Good Ole Reasoned Source did on the scum bags Bill Blair and Marvin Ashton. At end of the day, whatever "turns" the final few Masters into a group that leaves and therefore finishes off Stratus Franchising is good by me.
As reported earlier, DJ is up to his "old tricks" and they are still trying to sell territories at reduced prices by utilizing Mark/Jayson Bashforth and Afshin C. vs. their own FDD and DJ.
They are now offering former territories at ridiculous rates...I've already reported about Shea Sealy's "old area".
Let me ask you remaining Masters a final question? When Stratus Franchising is desperate enough to completely ruin the Brand, is it then you will finally "jump ship? How about when your non-franchise competitors start handing out http://www.unhappyfranchisee.com website and excerpts about who DJ, Pete Frese, Marvin Ashton, Bill Blair, Carmen Garcia, Mark/Jayson Bashforth and copies of all the lawsuits to YOUR CUSTOMERS, Will you jump ship then?
Let me ask you remaining Masters another "final question'? How many disgusting and unscrupulous ambulance chasers does it take to bring down a 3 million/year in gross revenue business?
Just some "food for thought"!