AG sues employment services for fraud

Wednesday, the Attorney General announced it's suing Virginia Employment Services, Inc., Virginia Personnel, Inc. and New Beginnings, Inc. for defrauding job-seekers in Hampton Roads. VES and its business practices have been the focus of a 10 On Your Side investigation for more than a decade.

According to a news release, 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. Either James or Carla 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 in a news release. “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.”

Ten On Your Side visited VES's office armed with the lawsuit.  Office manager Crystal Harrison had no comment, but potential clients who looked at it did.  "Ok, I guess I'm not doing this," said one woman who walked out.

Another man who walked out after refusing to pay the $365 fee told 10 On Your Side he's glad the Attorney General finally did something.

For more than a decade, 10 On Your Side has investigated James and Carla O'Leary.

In early July, James O'Leary and two employees faced a judge for allegedly assaulting a client.  All three VES employees left court without comment, but must return to court in August.

Stacey Kastel has been waiting for this since she walked through VES's doors in 2008.  Kastel says she shelled out $365 to VES after she lost her job that September.

"They made a lot of promises that really, really sounded good. They're very good sales people," says Kastel.

This college graduate soon found VES didn't live up to the promise she paid for.

"They gave me a car maintenance job and I called them and said, 'okay you guys, I have never told you I can do anything like this.' They were the most unhelpful people."

Kastel wants what she's owed.

"I'd like of course in the end for everybody to get their money refunded."

Veronica Davis is ecstatic at the possibility of a refund.  She still has the receipt of her $365 charge she thought would help her find a job.

"They humiliated me," says Davis.

Davis recently read about a job opening at a warehouse, so she called the number in the paper and it sent her to VES.

"She noted it down and made it clear to me that they were hiring for this company and they were hiring for various companies," says Davis.

The woman Davis is talking about is Carla O'Leary, the owner of VES.  Davis says the company never got her a job and now with word of the lawsuit she says, "It's good that they're doing something about it so it won't happen to anybody else in the future."

If you think you may have been scammed by VES, the attorney general is asking that you file a complaint with Virginia Employment Services or any other company to the Office of Consumer Affairs at 1-800-552-9963 or www.vdacs.virginia.gov .

Click here to read the lawsuit filed against Virginia Employment Services.