Florida Board of Employee Leasing Companies Approves Applications, Terminations at January 2013 Meeting

 

During its January 16, 2013 teleconference meeting the Florida Board of Employee Leasing Companies (“BELC”) approved several employee leasing company and controlling person applications after brief discussion.  Approvals on others were postponed until next month because related questions remained unanswered.  

The BELC also approved terminating operations for three businesses that were financially devastated by a fraud case.

After some discussion, the BELC unanimously approved the following employee leasing company and controlling person applications:

• AccessPoint, LLC (GL Applicant) 009
• Access Personnel Enterprises, LLC (GM Applicant) 119
• Access HR Objectives, LLC (GM Applicant) 219
  • Gregory J. Packer, Controlling Person Applicant 318
  • William C. Manasco, Controlling Person Applicant 340
• Helm HR, LLC (EL Applicant) 361
  • Stephen J. Banks, Controlling Person Applicant 438
• Langley N. Lindsley, Controlling Person Applicant 1128
  • HR, Inc. – EL 374
  • HR2, Inc. – EL 410
  • HR3, Inc. – EL 433
• Jennifer Parry, Controlling Person Applicant 1168
  • American Staff Management, Inc. – GL 139
  • American Staff Management II, Inc. – GM 346
  • American Staff Management III, Inc. – GM 347
  • American Staff Management IV, Inc. – GM 348
  • Honor HR, Inc. – GM 349

The BELC tabled action until February on the following employee leasing company and controlling person applications, partly because members could not locate a final audit and no one from the company was available to answer questions:

• LBMC Employment Partners, LLC (EL Applicant) 466
  • Ronald Errol Perry, Controlling Person Applicant 663
  • Sharon Lynn Powlus, Controlling Person Applicant 692

The following employee leasing company and controlling person applications were approved after significant discussion, a summary of which also follows:

• Quadrant PHR, LLC (GL Applicant) 724
• Quadrant PHR 2, LLC (GM Applicant) 861
• Quadrant PHR 3, LLC (GM Applicant) 917
• Quadrant PHR 4, LLC (GM Applicant) 976
• Quadrant PHR 5, LLC (GM Applicant) 1033
  • Curtis Taylor Matlach, Controlling Person Applicant 1089

Controlling Person Applicant Curtis Matlach’s previous work history-which included bankruptcy in 2008-raised several questions among BELC members, who asked him to explain what happened.

Mr. Matlach told the BELC that his bankruptcy stemmed from another business venture that failed during the financial collapse a few years ago.  He said that business venture that was started with a relative and failed because it did not have an adequate business plan.   As a result, they got behind on funding and eventually closed the business down.

Mr. Matlach subsequently incurred personal credit card debt of about $80,000 and found himself so far in debt he needed a fresh start, resulting in bankruptcy, he explained.

It was noted among the BELC members that bankruptcy is not a “knockout” as far as becoming a Controlling Person.

Mr. Matlach told the BELC he now has a reputable financial advisor, and that start-up costs are minimal, involving purchases like laptop computers, desktop computers, phones, some small printers and some desks.

After additional discussion, the BELC approved Mr. Matlach’s application.

In other business:

The BELC agreed to table the following change of ownership application until February: 

• Carolina Resource Management, LLC – GL 179 1193
  • Florida Resource Management, LLC – GM 471
  • (CP Relinquishment, Richard Andrew Swaim, CO 999)

Related final discussion centered on the termination of the employee leasing company operations of National Employer Services VI, Inc.; National Employer Services III, Inc.; and National Employer Services, Inc.  with a Controlling Person relinquishment by Charles Perry Wellborn.

It was explained that the company was defrauded by a man who is now serving a 60-month jail sentence for selling fraudulent insurance policies.  The business subsequently faced a $2.3 million judgment, it was noted.  As a result, Mr. Wellborn has been forced to begin the process of shutting down the three companies.

Mr. Wellborn said he has managed to reduce 18 outstanding claims to three, but is struggling financially and must close the businesses.

An attendee at the meeting validated Mr. Wellborn’s story, likening the fraud to a pyramid scheme in which the suspect brought in new clients to pay old clients’ claims.  Mr. Wellborn said the scheme went on four years with no red flags being raised before it was discovered.  The result has been financial ruin, he said.

After additional discussion, the BELC accepted relinquishment of all three companies and Mr. Wellborn’s Controlling Person Application.

With no other business before the BELC, the meeting was adjourned.

 

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