BBB Investigation II

(11.07.05) —
IT'S THE JOB OF THE ATTORNEY GENERAL TO PROTECT THE PUBLIC
FROM CONSUMER FRAUD!
WHY THEN HAS IT PAID COLORADO BETTER BUSINESS BUREAUS TO
HANDLE CONSUMER COMPLAINTS?
THAT'S THE FOCUS OF A FOX-31 UNDERCOVER INVESTIGATION.
Jan Zavislan/Debuty Attorney General:"It's been nothing but positive."
JAN ZAVISLAN IS WITH THE ATTORNEY GENERALS OFFICE, HE OVER
SEES THE PARTNERSHIP WITH THE BBB.
AND AT FIRST GLANCE IT IS POSITIVE.
EACH COLORADO BUREAU GOT 10 GRAND TO HANDLE ALL
CONSUMER COMPLAINTS AND THE A-G IN RETURN GETS TO
MONITORS THE BUREAUS DATABASES TO TARGET BAD BUSINESSES
WORTHY OF A STATE INVESTIGATION AND POTENTIAL
PROSECUTION.
BUT WHEN IT COMES TO THE DENVER BOULDER BETTER BUSINESS
BUREAU FOX-31 UNDERCOVER HAS SPENT SEVERAL MONTHS
TAKING A CLOSER LOOK.
WHAT WE'VE LEARNED ... THE ATTORNEY GENERAL MIGHT NOT BE
GETTING THE MOST ACCURATE PICTURE WHEN IT COMES TO WHICH
BUSINESSES COLORADO CONSUMERS ARE COMPLAINING ABOUT.
ROB CAREY IS A FORMER DEPUTY ATTORNEY GENERAL FOR THE
STATE OF ARIZONA.

Rob Carey/Attorney: "The BBB and the Colorado Attorney Generals Office
have completely different objectives and that makes this partnership a little
odd."
AND THERE'S ALSO EVIDENCE THIS PUBLIC/PRIVATE PARTNERSHIP
IS POSSIBLY BEING USED FOR PRIVATE GAIN.
FOX-31 UNDERCOVER OBTAINED THESE MEETING NOTES BETWEEN
THE ATTORNEY GENERAL AND THE BUREAU IN WHICH A BBB STAFF
MEMBER SAYS "SALES STAFF APPRECIATE THE PARTNERSHIP AS A
SELLING TOOL."
SALES STAFF ARE PAID ON COMMISSION BASED ON MEMBERSHIP
SALES.
Rob Carey/Attorney: "It's a perception issue of the Colorado Attorney
General thinks enough of them we might just want to join up to be on the
good side of the BBB so that the Colorado Attorney General doesn't come
down on us."
Jan Zavislan/Debuty Attorney General:"Businesses might have that view of
the world, there's nothing I can do about it. The fact of the matter is it's
ridiculous."
THE BBB ALSO BENEFITED FROM THE ATTORNEY GENERALS
SETTLEMENT WITH QWEST COMMUNICATIONS.
IN 2002 QWEST PAID 1-MILLION DOLLARS TO THE STATE FOR
ALLEGED DECEPTIVE MARKETING.
SINCE THE DENVER/BOULDER BUREAU HELPED THE ATTORNEY
GENERAL COMPILE EVIDENCE AGAINST THE PHONE COMPANY ....
PRESIDENT JEAN HERMAN REQUESTED THE BUREAU GET 10% OF
THE FINE PAID BY QWEST.
THE BBB GOT A 100 THOUSAND DOLLAR GRANT FROM THE A-G FOR
SPECIFIC TECHNOLOGY, BUSINESS AND CONSUMER EDUCATION
PROJECTS.
BUT WHEN WE STARTED ASKING QUESTIONS ABOUT HOW THE
MONEY WAS SPENT WE LEARNED THE BBB NEVER FILED THE
REQUIRED PAPERWORK WITH THE STATE DETAILING WHERE THE
MONEY WENT.
Jean Herman/BBB President: "It was spent accurately and the reporting back
to the AG's I think we should get a 50/50 responsibility that they should have
said where is it and we should have said it's on the way."
AND WHEN WE ASKED THE BBB FOR DOCUMENTATION .... WE GOT
CONFLICTING PAPERWORK .... FOR EXAMPLE THEIR SUMMARY OF
EXPENSES HAS GRANT DOLLARS GOING TO "ETHICS SEMINARS"
WHILE THE TAX RETURNS THE BUREAU GAVE US SHOW MONEY FOR
THOSE SEMINARS CAME FROM OTHER FUNDING. J
an Zavislan/Deputy Attorney General:"Everything we heard during the year
that the grant was in effect indicated that they were absolutely right on target
with what they were spending money for and we just didn't have any
concerns about it."
SOMETHING ELSE WE UNCOVERED PRESIDENT JEAN HERMAN GOT
AN 11-THOUSAND DOLLAR BONUS THE YEAR THE BUREAU GOT ITS
100-THOUSAND DOLLAR STATE GRANT .... (A BONUS SHE AT FIRST DENIED GETTING.)
Jean Herman/BBB President: "I don't keep track of this stuff."
HERMAN INSISTED SHE "NEVER" GETS BONUSES OUT OF THE BBB'S
FOUNDATION (A SEPARATE ORGANIZATION USED SOLELY FOR
CONSUMER EDUCATION .... WHERE THE GRANT MONEY WAS
DEPOSITED.)
AND LOOKING AT TAX RETURNS FROM THE ORGANIZATION NO
BONUS' WERE GIVEN THE YEAR BEFORE THE GRANT OR THE YEAR
AFTER.
SO WHY THAT YEAR .... WE'RE TOLD THE 11-GRAND WAS BECAUSE
HERMAN SET UP A NUMBER OF NEW PROGRAMS AND MET
"FUNDRAISING" GOALS.
Jan Zavislan/Deputy Attorney GeneralL "There's been nothing ever
suggested to us that this money was used in a fashion in that regard. The
only thing I would suggest is purely coincidental."