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PMD Furniture Direct Switches to Franchising
Editor's Note: This article turned from a small news clipping with a few comments to hundreds of comments that are marginally related to the original posting. As such, I have moved it from a short-term news blog to a public forum discussion on PMD Furniture Direct..News stories come and go but forums are long-term discussions and debates on topics anchored around a specific company or issue. I would remind posters that this is a site that shares information to help readers make better informed business investments. It's not enough to say don't invest in this brand. The reader will naturally want to know from front-line operators where in this sector will make them the best returns on their investment. One last point: The Blue MauMau culture is one of civility. Readers like to focus on business issues, rather than individuals or personal issues.
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Wow, invest $50K-100K and NET profit the first year is $269K!
Hosking [PMD Furniture Direct's CEO] added that PMD should stand out as a lucrative option when it joins the ranks of franchisors. He contended that franchisees of a national sub sandwich company have to invest $300,000 to $400,000 and make less than $100,000 in annual net profit, citing a PMD attorney who previously worked with the chain.
Some of PMD's current licensees, including startups, do much better. He said the company's top rookie last year was a Pacific Northwest dealer who made $269,000 net profit on an initial investment between $50,000 and $100,000. - Furniture Today
This is the best deal EVER! I wanna buy a franchise NOW! Where do I wire the money? If I wire $100K for 2 franchises, will I make $538,000 my first year?
Yet why are they losing so many licensees?
But with financial markets in turmoil, PMD's total network sales are down because it hasn't been able to replace the 20% to 25% of dealers it loses annually to attrition.
Why would Joe Armetta settle
Why would Joe Armetta settle when he is no longer with PMD Furniture Direct? I thought he filed for bankruptcy. Couldnt he at least be running a PMD business in California and keep his head above water given he used to be one of the top 10 PMD dealers back when they said they were a top 100 furniture business in Furniture Today? What does Jeff Hosking tell the PMD franchisees when they ask about this? Does Charlie really think he is better than Joe used to be? Does Charlie get a better PMD price than other PMD franchisee's?
i have him back now
Hi every one, my name is Shannon and i want to tell you all of how i got my man back with the help of Priest Andrew. My husband of seven years left me and our son for another woman saying that he is tired of me and want to move on with his life without me, i knew that something was wrong cause i did nothing wrong to him that can lead to break up. this break up left me in a confused state and there was nothing i could do until i told a friend about it who told me about this priest. at first, i never thought it was going to work out, but i had no choice than to give it a trial, then i contacted him and he did a spell for me and behold my husband came back on his knees begging to be with me for the rest of his life. i was quite amazed myself with the way the spell work. I would gladly recommend him for anybody cause he is really powerful and can make things happen. his contact is priestandrew91@yahoo.com,
Who knows how the whacky post
Who knows how the whacky post above got on this forum for PMD Furniture Direct and PMD's Co-defendants in several fraud complaints filed against PMD, its owner Jeff Hosking and some of its top officers like Jerry Williams, Rob Swan, and Joeseph Armetta? Any way since it is a post which seems to be promoting a miricle worker maybe Jeff Hosking should hire him to see if PMD can bring back all the top 10 dealers who used to be PMD recruiters and managers and possibly make the company successful enough to be in Furniture Today's top 100 again. Even better maybe that priest can bring back the 100's of ex-dealers/franchisees who didnt make it with PMD. Maybe Jeff should hire him as a Territory Manager to run one of those company owned stores or "secret" test programs that alledgedly do incredilbe but never get passed on to franchisees. Its really the perfect post for this saga, I can see it now: Jeff was frustrated with how his furniture business and fraud trial turned out, so much so that he hired a priest, low and behold he discovered a better way to turn businesses around and now you can discover it to as a PMD Territory Manager selling the "Preists" secrect metrics system to turn failed businesses! Probably has a better chance than Jeff turning around PMD at this point.
Armetta settles Fraud Charges
Looks like the Fraud case against Joseph Armetta has been satisfied and paid in full. If PMD, Jeff and Joe were not convicted of Fraud do you believe Mr. Revenue Stream would settle? Anyone believe Joey Boots just got tired of lying and running and wanted to cleanse his soul? He has been a busy beaver with his Bankruptcy, his imminent Divorce and passion for building fraudulent businesses. Karma, rectitude, justice, deserved, rightful, fairness, duly punished etc. etc. etc. Seems like Game Over for Joe, as he finally received the ultimate PIP. Joe, you have six months to respond.
For all the ex-dealers who have suffered and who Joe has truly impacted in a negtive way thank God that he is no longer involved in your life and he is paying for his lack of integrity, for not accepting responsibilty for his family and for the consequences of a life style that has rendered him and his family bankrupt more than just financially. Can you still wear $400 shoes if you only have $200 in your bank account?
Armetta bails
So before the PMD appeal is final Joe Armetta bails on PMD and settles his fraud conviction.I guess he knew the game PMD plays with their legal garbage is over and he better cut his loses. That company test store in Dallas and all the continued misrepresentation didn't give Joe that warm fuzzy feeling he use to get from cashing the PMD paycheck. Jeff can go it alone. That will be interesting to say the least. Joe always took care of Joe so nothing has changed.
Jerry and Scott PMD Furniture Direct
Nothing really embrasses the PMD group as the cohost the Poker Tournament for Autism in Las Vegas. Where was Jeff? He was probably sleeping it off. Just what does PMD do at the shows now? Industry knows they have been convicted of Fraud so I'm sure the job interviews have many questions. Is Rob still with the company? They don't have many vendors so the poker tournament must be the highlight.
A list of the co-hosts:
Other co-hosts included Allen Parvizian, APJL Consulting; Mark Quinn, Leggett and Platt; Richie Gallaher, Tempur-Pedic; Randy Coconis, Coconis Furniture; Stuart Carlitz, Eclipse International; Phil Miner, Symbol Mattress; Mike McQuiston, Symbol Mattress; Scott Graham, PMD Furniture Direct; Jerry Williams, PMD Furniture Direct; Anthony Mehran, Huffman Koos Furniture; and Joseph Amato, Mattress Matters.
Can't say I'm sad
He did not care about the managers, dealers or their families. He looked down upon everyone because of his (in his own mind his superior belief) investment banking background and experience and his loquacious abrasive style. He believed he knew more than anyone he associated with at PMD and would not permit anyone to challenge him or the obnoxious owner he protected. He has experienced the ruin he so arrogantly ignored over the years. He is now experiencing what many involved with PMD experienced over the years and I wonder what his spin is now.
Conferences and False Testimonials
As pointed out the lie eventually catches up. PMD, Hosking and Armetta were all convicted of FRAUD. Regret that it took 28+ former dealers to initiate a process that cost thousands of dollars to uncover the FRAUD. What is difficult to fathom still, to this day, is how they continue to attract more franchisee's into a model that doesn't work, is misrepresented and in of itself will likely be found to be the same fraud perpetrated.
Conferences
As a former dealer who closed my operation in '08 I have followed the comments here for some time but never posted until today.
I think it was obvious to any casual observer that Hoskings and the Armettas had no real moral compass that they followed. I never really dealt with Swan or Williams to any great extent.
I knew I was sunk when I found the cuddler for sale at a non PMD retailer for less than what I paid for it.
The question I have is this:
For the Managers and dealers who stood in front of the assembled dealers at the conferences to extoll the success they experienced by simply following the "program".
Did you actually experience the success you described?
Were you forced to stand in front of the group and give false testimonials?
Were you compensated (in some manner) for the testimonials?
Why are some of the same people who told all of us how great the program was have now either sued the company or, at the very least, posting derogatory comments here on Blue MauMau?
I have absolutely no love for PMD or its home office managers, they ruined me financially. But I don't understand how so many touted the program that put so many of us in dire financial straits while they knew the program was a loser.
Brainwashed to think
We were all brainwashed to think that PMD had a chance to be successful and real compnay and Jeff paid for the loyalty, testimonials and the secrecy by paying significant salaries to the manager group for hiding the truth about the company. Joe influenced Jeff to screw dealers and managers and Jeff was all in. Many found out later that the results and perfomance were much more fraudulent than they even knew. Once the salaries were cut by Joe Armetta the managers knew their days were numbered just like the dealers they mislead. The massive exodus of dealers could not be hidden anymore and PMD was being charged with being a Franchise by the AG of Illinois. The Armetta's realized early that the clearance center was a "disaster" and that's why they closed their own centers and continued to sell the dream from their corporate view. I wake up often with the thought of all the dealers who PMD and its managers (myslef included) impacted in a negative (some worse than financial ruin) way with very Interesting stories. No manager, left the managerial role, and ever ran a successful PMD clearance center after that. That kind of tells you all you need to know about following the program. Armetta in Bankruptcy tells you how good the program is. Over 400 ex - dealers tells you more about the program than all the testimonials over the 10 years. The conviction for Fraud tells you the truth! Its all available in public documents that outlines the story and its horrors for those involved over the years. Its a very sad story! Good luck and hope you recovered from the mess.
Brainwashed......you should be ASHAMED!
To justify your actions as being brainwashed, you should be absolutely ashamed. It is amazing to believe you would compromise your own values of integrity (strike that - you don't have any) and be a complete perpetrator of the fraud. Your post is sickening to read knowing that you went along with the actions of PMD, Joe and Jeff.
People's financial lives ruined. Marriages torn apart. Questions surround one individual's death as a result of the pressure and influence of those of you that continued the fraud. And you knew the entire time that this was going on?
I can't express enough ..... you are shameful!
Only a few of the weak
Only a few of the weak "Cool-Aide" drinking managers were brainwashed. Most were simply bought and paid for by Jeff and Joe. Managers were recruiters and cared more about helping bring in new dealers than helping existing ones make it. If it was such a good business and they are so desperate for new franchises, why dont any of the so called PMD greats at running a clearance center that were managers & recruiters open one up? Where is Jason, Bert, Mitch, Stephen, Greg, Joe A, Clff, Sarah, Joe M, Rick, Tim, Cindy, and a few others? Do you reall think all those ex-managers are now doing better than what PMD said they were as "Top 10 delaers" making 2,3, and 4 times the average $150,000? While their hands might not be as dirty as those who were found guilty of fraud, none of those ex-managers sleep well thinking about the lives of the families they helped hurt.
Look at the Managers
Jeff and Joe were "bullies" and they did not care what the managers said. They compensated the managers and corporate for walking the walk and talking the talk and most knew based on their results or the results of others that the talk was misleading. They partied with the managers and placed them in very compromising positions. What went on in Vegas stayed in Vegas until Jeff and Joe needed to leverage a very leveraged group. This culture permeated the corporate staff and the managers. They signed a "Naval Academy" pledge that if someone questioned authority, performance or company direction the individual manager would be responsible to "handle" it. That didn't mean discussing it intellegently to find a solution. It meant telling dealers whatever they wanted to hear or that no one else was complaining so it must be isolated. You don't get convicted of Fraud because you are handling and addressing problems of the company in an open and honest manner. Average salary claims were not even close to the claims. The managers knew what their clearance centers generated and they were below the PMD average. Jeff swore it was a $200K opportunity and the lawyers warned him it was misleading. The managers listened and said nothing! They knew it was a lie! The book being developed will outline PMD over the 12 years and be an interesting read. Good reading!
Questions?
Questions surround at least 3 or 4 dealers not just one indivdual. They were a churn and burn and didn't care about people. Call Scott or Jerry they know all of the victims. They sent flowers and best wishes!
Your comments
I don't disagree and understand your comments. It's certainly not an experience that I am proud of but like you you move on as best as you can. You can become part of the next lawsuit and maybe recoup some of your loses. I will recant the term "brainwashed." I did not respond to justify my actions! I responded to answer your question. Many decent people made mistakes along the way. Many wish they had followed a different course. Unfortunately, they didn't and that's a fact not a justifaction.
Guest
Giants -3 vs Patriots. PMD down to 15 franchisees by end of year 100%, additional legal suits vs. PMD 100%, Jeff tipsy by gametime 100%. Jeff arrive at work around 2 pm on Monday 100%. enjoy the game!
PMD status 2/1/12
Over the last two years PMD in its Franchise move has added 3 new Franchisees. They have lost 5 so they are currently at 18 Franchisees with 4 to 6 about to leave the business. This unique concept never worked and it is about to disappear in the next 6 to 8 months. Stay away, save your money and don't even take this Franchise offer if its free. Since the Franchise move, nothing has changed, nothing has improved and nothing will ever change with Jeff. Over 400 dealers over the years and 18 are stilling alive. Good hard working people don't leave a business that works and that they have invested their money in. Check around as former PMD dealers have much better opportunities than PMD Furniture Direct and they have never been convicted of Fraud.
Jerry the cohost
Good to see the boys are back in Las Vegas and Jerry is now the co-host of the Autism poker event and has commented in Furniture Today:
"We are very excited to have Karina Jett help us at our event," said co-host Jerry Williams, an executive with PMD Furniture Direct. "She is one of the top professional poker players in the world. "
Jerry who in recent court cases tesitified he didn't really know he was an Executive with PMD Furniture Direct is stll rubbing elbows with the Furniture Today staff and other Industry executives. Some things never change and once convicted of Fraud always convicted of Fraud. Is jason Armetta flying in for a little cards for a good cause. Is Armetta setting up the late night entertainment at the club? Somethings never change.
Did Furniture Today have
Did Furniture Today have Jerry Williams, Jeff Hosking, or Rob Swan give them company or franchisee information so that Furniture Today could see where PMD Furniture ranks in the top 100 in the last two years? If Jerry is the COO of the company will he be reporting to Furniture Today in the future?
Top 100
The threshold for Top 100 in 2004 which PMD lied about their numbers to FT was around $60 million. PMD never captured retail sales and claimed they did $69 million in Retail sales. Coincidently or just lying to get the #93 spot, The next year 2005 they did less wholesales, around $34 million but claimed $74 million at retail and $43 million at wholesale. Jeff explained that as the $9.3 million company owned Dallas store that did $18 million at retail and lost money so he closed it.............................retail sales were always a lie and wholesales never match the TABS. Jerry and Rob testified they did not know of the Dallas company owned store but Rob processed the payments for all PMD transaction.
At $15 million wholesale and maybe $22million at retail PMD if reported would rank #296 out of the Top 300. They suck and they know it! Furniture Today has prepared their legal representation if anyone challenges why they let PMD lie their way into the Top 100. They hope PMD goes away and would never publish any PMD financials ever again.
What kind of numbers is PMD
What kind of numbers is PMD reporting now and will Furniture Today do a story on all the PMD Furniture Fraud that went on using their trade journal and Top 100? Who at PMD had the idea to use Furniture Today and just how much of what was reported to Furniture Today was a lie?
Is this Furniture Today?
I can not believe that Furniture Today wants to be in the same room as PMD, Jeff and Jerry. After the Fraud conviction Ray Allegrezza and Dave Perry both stated that they were mislead and duped by Jeff Hosking and his claims that made PMD Furniture Direct a Top 100 Furniture Vendor 2004 thru 2009. They had an independent reatail analyst and their legal department review PMD's claims over the years and concluded that the PMD's metrics provided were inaccuracte and that PMD did not capture retail sales and perfomance metrics. Their elevation to a Top 100 was erroneously awarded. Call Furniture Today and ask about PMD and they refer you to their legal department. They still can't get over that 20X Turnover figure PMD used over the years.
I also talked to Furniture Today
They were well aware of PMD's dishonesty in their numbers. Sales inflated, gross margins higher and never realized by PMD, the turnover whopper and sales per sq foot without ever calculating the square footage of their dealers. They were provided with the same information that was used to convict PMD of Fraud. In looking at the numbers provided they realized as the industry was contracting PMD always said they were growing, always. From 2004 to the time they were removed 2009 from the Top 100 PMD lied about their performance. They never used the "infamous" approximate and unaudited they used to hide the truth in other reporting vehicles. In 2009 in PMD's public relations announcement they claimed prior to the Franchise opportunity they had sales of 82,000,000 retail. 82 Freakin Million??
The Industry realizes this business opportunity is a joke!
Stay away from PMD
For years I was part of the interesting story and watched how Jeff, Joe and Jerry hid the true results of the company perfomance and growth. Dealers were kicked to the curb, called out for not taking responsiblity and branded not being able to run a business. Managers ran non profitable clearance centers just so they could make believe it worked. Jeff always said leave and he would sue you and tie you up in court. He stood up at a managers meeting and said he would use the same tactics that Vector used to churn and burn the dealers to build his company and didn't care what anyone thought. He required managers to lie and pretend that PMD was $200K opportunity.10 years and hundreds of dealers later he has 18 Franhcisees? If your looking at this as an Investment 1.5% from your bank is a better deal. PMD has a track record of failure that is plainly obvious and should be avoided at all costs. I wake up everyday and regret my mistakes of misleading so many good hard working people!
Managers at PMD
How many companies do you know that do not have any of the employees who were once leaders still working as Managers or active as Dealers or Fanchisees in a company that is only 12 years old? Only two left are the owner and Jerry Williams, the lackey and follower and they are the Corporate face of the group. Rob and Scott are just servants to the big boss! People who help start the business and tried to make it work are gone. Not one person who was a Manager could make this turkey work. That says a lot about this company, its past and its culture. If the Harvard business school needed a study of business disasters this company would go to the head of the class.
Contact Info Coming Soon
Sorry for the lack of response. They were so overwhelmed with dealer callsthey have decided to avoid contact at this time. Information on how to contact and join the group will be provided shortly and you will be contacted once you repsond. Given PMD's recent settlements everyone is being cautious not to get Jeff and PMD a chance to escape this suit.
Guest
2012-01-25 08:23
I would like to join this group 've had no luck with Michael or Carolyn returning phone calls. As a burned ex-dealer, would love to talk to someone about joining the suit against PMD. Just need some good contacts. Thanks.
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Detractors
This sounds a lot like sour grapes from a few who couldnt cut it! Get a life, earn a living, and do it without being a copy cat!
Detract this PMD: as you hit
Detract this PMD: as you hit 100+ dealers/franchisees in 2003-2004 (on the back of a similar number of failures) you could have truly been on your way to a real and honest 250 nationwide chain that would have been a top 100 Furniture Today story. Instead I believe you empowered the wrong people, lied about sales and performance figures to the public & Furniture Today, got greedy in your recruiting strategy, choose not to invest in real program and franchisee development, and stuffed the pockets of owner (Hoskings) and managers from top to bottom who were paid to support the LIES! All of those people have to try and sleep knowing about the PMD horror stories that I dont have to mention here because you know both the names and faces of people whose lives were ruined and worse. Will you ever be able to make it right? I guess that depends on doing what is right from where you now stand. If you do that, maybe you can sleep better and maybe just maybe you can move on. If not good luck keeping even 15 franchisees through 2012 and good luck in todays job market.
DETRACT THIS PMD....
Sorry the model was never there to go from 1 - 250 let alone 100 to 250. The model doesn't work and never will work. You over pay for product, you're constantly are in a hostile environment, you pay thousands and thousands on advertising, you have to listend to Jeff feed his own ego and other things including about how he walks on water...... You know in the end it is just a ruse and sick experiment that caused a lot of grief for a lot of people (and still is!). And in the end Jeff, Joe and PMD are convicted of fraud.
The fraud conviction says everything you can say about the PMD model.
So Jeff!
The only thing Jeff didn't say was Blah, Blah, Blah! Who else at 3:00 in the morning would be worrying about anyone copying PMD? Copying is when you do the same thing. By paying 40% less it's not copying! It's earning a much better living than at PMD. Good to hear you still have trouble sleeping!
It may very well be just a
It may very well be just a few still watching PMD Furniture, Jeff Hosking, Joe Armetta, Jerry Williams, and Rob Swan now. A few franchisees. a few ex-PMD dealers who failed, a few ex-PMD dealers that succeeded, a few who have been sued by PMD, a few who have sued PMD, a few state attorney's general, and probably the fewest of all being anyone interested in buying a franchise! Thanks to more than a few that posted their experiences and knowledge about the failures at PMD (over 4000 posts) on this site, somebody is up at 3:00am wishing they could still keep people from talking to each other. You can only bully people who you have authority over PMD.
That is not true...all of
That is not true...all of these ex-dealers were successful, profitable and intelligent people, they put all they had in with this group, only to find out it all was a scam..some of them couldn't live with themselves. The shame and guilt of being fooled by this company was just to great for them...very very sad and sickening...how do those people that own the company live with themselves? May God have pity on them...
Legal Communication
Have there been any recent legal communications from Sheila Vitale or Charles Cooper to the remaining franchisees? The last email/letters seemed to talk about PMD’s defenses against TL, CSA, JC, and RP. Then there were the quotes on BMM and in Furniture Today about PMD’s recent cases not being very meaningful and Rex Elliott called one of them “frivolous” saying about the DA case: “We will be responding to this lawsuit with a very, very vigorous defense and a pursuit of our own claims against these plaintiffs.” Elliott exclaimed that the lawsuit was frivolous, adding, “There is no merit to the suit. The allegations are false. It is very disappointing.” I think all of us as dealers were told the suit were frivolous, without merit, and that PMD would win them both. Was that just another lie to get dealers to sign the franchise agreement? Is loosing one and setteling another what PMD and Jeff Hosking call winning or was that Charlie Sheen speaking?
How many saved?
What if a site like this existed from 2003-2008? How many would have been kept from the PMD fraud? How many has this site help set free and how many has it kept from making a bad decision? Pissed Off Consumer also has some good PMD Furniture, Royal Herritage, Jeff Hosking, Joe Armetta information that would have been helpful.
Just wondering?
Why did you think when Jeff and Joe in the Policy & Procedures manual stated that dealers were not permitted to discuss PMD with other dealers? If so, the dealer could be terminated! Terminiated for discussing PMD's business model, their loss of hundreds of dealers or the success of the business. That's right, no talking!
Managers sign a Naval pledge to ensure the ills of PMD, which they all knew, would never be discussed.Transparency was not a hallmark of the PMD culture! Thank God for the effforts of the Dealer Association.
Who knows what number I was
Who knows what number I was as so many got burned by Jeff Hosking, Joe Armetta, Jerry WIlliams, Rob Swan, Scott Graham, PMD Furniture Direct, and the rest of their gang by the time I became a dealer but when I read the Policy & Proceedures manual it made me think O-S***! I should have been able to see this and more before signing. Anyone looking at their franchise should ask to see a copy of it to review before paying them a single dime. If they say they dont use one anymore ASK WHY? That in of itself should be a huge red flag. If they do have one ask to speak to a list of people who won bonouses or Rolex's so you can check and see if the people who earned them actually got them. Please post your story about you or someone else not recieving what you should have from PMD Furniture Direct. Ask Rob Swan to provide a list of people who got 1099's for any of those bonuses or trips they brag about. If they cant produce one it might be a scam.
Rob Swan is skilled in use of 1099's and Accounting laws
Managers, Coordinators, Advisors, Leadership team, Recruitment team etc. etc. were paid on 1099's for many years in directing violation of State and Federal laws.Names were changed year but responsiblity was the same. 1099's for bonuses, volume career levels, trips, rolexes etc. etc. were never provided as required by State and Federal laws. PMD's company owed store doing $18,000,000 in 2005 did not file taxes as Jeff let his Mexican partner file in Mexico?
Might be a scam?
They never provided a disclosure required by the Ohio Business Opportunity laws. That's why the appeall will over turn the decision made in the CSA case and open the flood gates for the Class Action against Jeff and PMD. If your name appeared on the Tabs 2001 to 2010 you are entitled to your license fee and damages because it was a SCAM! Stay tuned it will be fun!
Appeal of Business Opportunity
Stay tuned as the appeal to reverse the Business Opportunity decision in the CSA fraud case is now active. It will over turn an early court decision and every PMD License agreement from 2000 to 2010 would be null and void. That means an ex dealer could sue for the License Fee they paid. That's good news for every ex dealer regardless of why you left PMD. More information to follow! Get your license agreement out and payment of the license fee + interest will be yours. Good suing!
By Guest
2012-01-19 19:08
Ex dealers forming
Hear a group of 30 to 40 ex dealers are getting together to go after Jeff for fraud to recover their License fee. Dealers paid between $12,000 and $30,000 since 2002 and are talking to lawyers about taking the group suit on a contingency(25% of recovery total) based on the total recovery settlement. Average of 35 dealers x $25K would put a serious hurting $875,000 on Jeff as he is 100% liable. Look for another 50+ dealers($1,250,000) to also join with a goal of 100 ex dealers. That's less than 25% of the ex dealers over the years. That big hamburger house in Columbus is a big target for the group. Can you say Summary Judgement? Stay tuned as its a win win for the ex dealers and it will cost nothing.
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Business Opportunity Plans Act
Ohio's Business Opportunities Sales Plan Act which is Chapter 1334 of the Ohio Revised Code is very clear and legal experts say the Judge in the Andrew case dismissed it prematurely without applying the law as it was written but instead going along with the way Cooper & Elliott wrote it which was not how it is worded in Chapter 1334 at all. It may be no coincidence that at the time of the premature dismissal of the claim Adam Crowell was the Judges staff attorney and soon after the dismissal went to work for Cooper & Elliott the firm that represents PMD. If PMD Furniture, Jeff Hosking, Joe Armetta, Jerry Williams, and Rob Swan are found to have violated the Business Opportunity Plans Act it is a serious charge with punitive awards and carrying the tag of being a first degree misdemeanor. The law also says that “A final judgment against a seller or broker under sections 1334.01 to 1334.15 of the Revised Code is admissible as prima-facie evidence of the facts upon which it is based in subsequent proceedings under sections 1334.01 to 1334.15 of the Revised Code against the same seller or broker or their successors or assigns.” That means anyone who was sold the PMD business opportunity in the same way can merely use the judgment to file their own case and receive an automatic summary judgment with the “Prima-facie” evidence. Not a good "Game-On" for PMD as it will dynamically change the scope of people who can sue from ex-dealers to franchisee's.
Legal is right on!
Talked with numerous legal advisors and they confirm Legal's assessment. They also stated that many times a judge due to his case load would not have the time to research properly and the judge would farm this inquiry and ruling to his clerk or clerks. Given that the case was a much bigger fish to fry the judge moved onto the Fraud and its significant requirements. Everyone knew that the appeal process was available to both parties and would be used regardless of the outcome.
The PMD license agreement was a Business Opportunity, at least, or a Franchise. The Licnese Agreement even stated that it was not a Business Opportunity or a Franchise (a serious red flag). Call the AG of Illinois who was pursuing PMD for selling ilegal franchises. Armetta move from Chicago real quick when that happened and hasn't been back since.
This saga will never end!
Jeff needs to get a PR advisor. Why would anyone with his exposure continue to make believe nothing is wrong. He would have been better off killing this years ago. Not trying to prove he was right. Missed that business class at Ohio State. Listened to Armetta that he ould lie his way out of it How's that working out?
Jerry Williams
The Franchisee have a great case against Jerry, Jeff and Joe as they misrepresented the company perfomance and franchise differences when they solicited the signing of the Franchice agreement. Jerry actively with Joe lied about the Franchise agreement and PMD's performance on numerous conference calls. Good thing the Franchisees and some Dealers recorded those calls as Jerry and Joe lied about the company performance and franchise potential. Good Litigating!
Legal communications - you OK?
Anytime someone is getting sued it is a "crap" storm. Lawyers are lawyers. They're paid to say that. Hosking/Armetta convicted of Fraud; PMD looses the court case. Dealers Association takes a settlement and runs from PMD with cash falling out of their pockets. If you honestly think anything coming form the PMD side represents the true nature of what is going on . . . you're delusional. I can't believe there are actually new franchisee's at PMD. Amazing.....
The dealers association got
The dealers association got nothing except their freedom. They hardly walked away with money falling from their pockets. They spent 50 million plus over the years with pmd. At a 40% markup. They
made Jeff a very rich man. He is still a very rich man. The dealers association walked away with their tail between their legs. No fraud conviction and some unpaid balances with pmd that they dont have to pay.
Thats like the indians claiming victory over the US government because they were given land for their reservations. Newsflash, when someone gives you back a very small percentage of what was once all yours, you are not the winner. Plus there was only 23 of them. The other 400 are left with no justice. Hopefully the CSA fraud conviction holds up and he gets paid. Regardless Jeff still wins. He has already cashed in. Anything he can make going forward is just gravy. Maybe the lawsuit that is developing against all of the past managers and trainers who were complicit in the fraud will prove more fruitful. We'll see.
You sure must not be one of
You sure must not be one of us then as it was a whole lot for me. Outside of what I got getting out, all I have to do is look back to what business and life was like with PMD Furniture Direct and now look at what its like without PMD and I am EXCITED at the difference. Who cares what Jeff got over the years, he has to try and go to sleep every night wondering if he can ever get back to even 30 franchisees. He used to loose that many almost every year and still grow as a whole. What a difference being honest makes on both sides of this fence. Gotta go, phones ringing!
Jeff settled because he was guilty
They no longer have to deal with Jeff. Pricelesss! They can buy direct and make their money back. No more lies and vendors who want them to do well. Just cleaing them out for themselves! Talking with the Franchisees on their move to sue Jeff and Jerry for fraudulent misrepresentation under the guise of the FDD was misrepresented and all infomation provided prior to was inaccurate. Jeff and Jerry knew the prior infromation was misleading and willfully misrepresented the company performance claims...................that's a slam dunk Fraud and has already been proven. The thrid times is a charm!
No prior info
Now you know why PMD Furniture Direct made no mention of the successes of PMD or Power Marketing Direct in their detailed FDD. They knew the claims and successes were fraudulent. Talking about PMD 2000 to 2010 would have violated federal laws and Jeff was not going to do battle with the Feds. He never mentioned his $18,000,000 company owned Mexican store in Dallas like he tried to in Franklin County Court.
A-ok thanks for asking. Being
A-ok thanks for asking. Being free of Pmd Furniture Direct, Jeff Hosking, Joe Armetta, Jerry Williams, Rob Swan, Scott Graham, and the rest of the PMD gang has me busy pursuing profitable business instead of just hoping to keep my head above water and survive with PMD which we all know now was bassed on a bunch of lies in the first place. I heard it was a lot different however for the PMD gang as a whole slue of new legal situations are brewing for them to pay their attorneys and franchise advertisers to dance with.
Thanks
Thanks for all the helpful information here. Some of us are still looking at what we can do about our current situation and all the information we can get is helpful. It seems that PMD was/is possibly generating profits in numerous ways or "revenue streams" or "verticals" as Joe Armetta would say. Among the possible up-charges were: freight add ons, pass-through mark ups to companies owned by Jeff Hosking, failure to pass on discounts (even though that was a part of the PMD Furniture selling promises), and failure to pass on kick-backs provided by manufacturers. It seems to me that Rob Swan and Jerry WIlliams were just lackeys for Jeff and Joe who used peoples "perception" that Jerry & Rob were "nice guys" when they were told the products sold to them were only marked up an average of 14 to 16%. I think paying a royalty to an honest franchisor of 6 to 10% would be a lot more profitable. Have any franchisees seen the $200,000 to $500,000 income that Jeff & Joe said would be a part of the e-commerce program a franchisee would supposedly get? Its been two years since that promise was made and I still have notes taken from Jeff's spread sheets that supposedly proved it had been tested. If you know of any other possible lies people were told that are not shown on this first page please post them.
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