Video Courtesy of KSL.com
March 15th, 2011 @ 10:34pm
SALT LAKE CITY -- A Utah talent agency investigated by KSL 5 News is now in trouble with the state. In a 70-count citation, authorities at the Utah Department of Commerce are accusing Tru Talent Management of deceptive sales practices.
A misleading sales pitch is exactly what brought Whitney Moore to KSL in 2009. Instead of finding the aspiring model any work, she says Tru Talent charged her for expensive classes and headshots.
The state says Tru Talent used the same tactics on other unsuspecting Utahns and on state investigators during an undercover operation.
"We have numerous victims that have lost a good deal of money with the promise of fame. It just doesn't quite happen that way," said Francine Giani, executive director of the Utah Department of Commerce.
Tru Talent has 10 days to respond to the citation and request a hearing to fight a potential fine of $175,000.
CLICK HERE to review the full citation.
KSL 5 News investigates Tru Talent Management
Video Courtesy of KSL.com
HOLLADAY -- The company is called Tru Talent Management. People say the company approached them in public. But after signing up, they never wound up working on a stage or runway, and wish they had run away.
Whitney Moore was on the job at Wal-Mart when, out of the blue, a Tru Talent representative spotted her.
"He introduced himself and said I had the perfect physique for a model," said Moore. "It was pretty flattering."
The representative invited Moore to audition at Tru Talent headquarters in Holladay.
Whitney Moore, Tru Talent Management client
"He said ‘That was great. I really want to get you signed up,'" explained Moore. "So I'm thinking 'Oh! I'm gonna get a job. They're going to be an agency for me.'"
The company did bring out a contract; only it wasn't to become the next top model. Instead it required Moore to pay Tru Talent $2,000 for photos and acting classes. Moore could not afford to pay that in cash; however, a company that's controlled by the relative of a Tru Talent executive was willing to finance the payment. Whitney signed up last summer.
"They don't get you jobs," said Moore. "I don't know what the courses are like. I was never able to take them. I'm paying for services I never received."
We found formal complaints about Tru Talent filed with the Better Business Bureau and the State of Utah. Apparently, you never know where a Tru Talent representative could spot you - at the mall, a store, or the school yard. People say they were told they had the look and got invited to a free audition. But that's where the free part ended.
Debbie Dujanovic
After the audition comes a contract. Aspiring actors and models wind up paying hundreds of dollars for classes and photos. Some say they're still waiting for work.
We went to Tru Talent with a list of questions and were told to contact the company attorney. We did that and returned for an interview a few days later.
Carrie Thayn is Tru Talent's Chief Financial Officer (CFO). According to her, "We never promise anything as far as making anyone a star ... is what we do is promise our talent is that through proper training, if they are interested in this field, the more training, the more likely you are to be successful."
We asked the company to respond to Moore's complaint. Thayn said, "We have a great product and service we offer the people of Utah, and we stand 100 percent behind it."
Carrie Thayn, Tru Talent CFO
Thayn presented us with a 10-page list of jobs/appearances for which Tru Talent has booked its clients. The company arranged for us to talk to three clients who say they attribute their acting and modeling success to Tru Talent. Two of those people mentioned they also now work for Tru Talent. So what about people who are unhappy?
"Complaints, we take very seriously here," said Thayne. "It's a case-by-case basis as to how we respond to those complaints. But we do have a great product and service, and we do uphold our end of the contract."
We read through the contract and saw that it does include the line, "Tru Talent does not guarantee any modeling or acting opportunities." And here's something else to keep in mind. The company says it follows an industry-wide practice of approaching people in public places. That gives you the option to walk away. You don't have to sign a contract.
"We have many different ways of finding our talent, and we are most interested in those who are interested in us," said Thayn.
So will Tru Talent let Whitney out of her contract? No. Tru Talent disputes her claims. They told us she stopped attending classes. Whitney says when the company switched class dates, she couldn't attend because she was away at college.
What should you do if you get picked out in a crowd? Consumer advocates and industry experts say take the business card and go home. Then check out the company's rating with the Better Business Bureau. If you book an appointment at the agency, don't sign anything right away. Do more homework and carefully read through the paperwork.
THE CITATION IN FULL:
BEFORE THE DIVISION OF CONSUMER PROTECTION OF THE DEPARTMENT OF COMMERCE OF THE STATE OF UTAH
IN THE MATTER OF:
TRU TALENT MANAGEMENT SLC, INC. and BRANDlE LEE FROMMELT DCP Case #74016 Respondents
AMENDED ADMINISTRATIVE CITATION (Amended as to date only page 6)
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PURSUANT TO THE AUTHORlTY granted by UTAHCODE ANNOTATED § 13-2-6(3), as amended, which empowers the Division of Consumer Protection to issue a citation upon any person reasonably believed to be engaged in the violation of any statute listed in UTAH CODE Al\'NOTATED §13-2-1, as amended, it appears, upon information and belief, that you are in violation of the Consumer Sales Practices Act, UTAH CODE ANNOTATED §13-11 -4 et seq. In particular, the Division of Consumer Protection alleges:
I. Since at least 2007, and continuing thereafter, Respondents Tru Talent Management SLC, Inc. (TTM) and Brandie Lee Frommelt have engaged in, or caused others to engage in, a variety of deceptive acts or practices to induce consumers into purchasing acting and/or modeling classes and other related services such as headshots and fashion photography. Respondents have marketed a scheme that will purportedly help conswners make their dream of becoming an actor or fashion model a reality. Respondent' s talent scouts use untrue statements to solicit names and phone numbers from potential consumers. Respondent's telemarketers call scouted consumers and use untrue statements to entice them to come in for an audition. At Respondent's place of business, consumers meet with sales agents, a/k/a new face agents, who use untrue statements to get consumers to sign contracts for modeling and/or acting classes and photography. Respondent' s contract requires consumers to purchase a minimum of six (6) photographs at $40.00 per photograph. Respondent's use untrue statements to up-sell photographs to eacb client. In addition, Respondent's website misrepresents that TTM has been in business for "over 12 years", when in fact TIM has only been in business since 2005.
1 From October 2010 until this date I received consumer complaints from the following consumers. Trisha Allen-Gibby, Shalmon McQueen, Vanessa Grancagnolo, Amber Bowden, Monica Medina, and Karen Montreal. The allegations from these six (6) consumers are consistent with the information contained in this citation.
2 From October 20 I 0 until this date I met with and interviewed six (6) previous employees of Respondents. The employees are listed, along with their past jobs positions, as follows. Gabriela Perez (Booking Agent), James McGuire (Scout, Telemarketer, Sales Agent), Robb Johnson (Sales Agent, Manager), Mario Garcia (Sales Agent, Manager), Carrie Thayn (Chief Financial Officer), and Rafael Lima (Collector). Through my interviews with the above previous employees the following scheme was uncovered.
3 Respondent's talent scouts solicit consumers in malls, restaurants, stores, public events and other public places that have a large population ofpeople. Respondent's talent scouts target parents with babies and children, teens, adults, senior citizens, and handicapped persons. Talent scouts use lII1true statements with potential consumers to get them to provide the talent scout with the consumers name and phone number. Some types of lII1true statements made by talent scouts are consumers could be an actor or model for magazines, television commercials and even movies that TIM is involved with. Talent scouts tell consumers that TTM has upcoming auditions for companies sucb as Toys R Us, Pediped shoes, Baby Gap, Ikea, Pottery Barn, Shopko. In addition, talent scouts tell consumers that TIM bas auditions for movies such as Hunger Games and Disney movies such as Ant Farm and High School Musical 4. These statements are untrue because TIM does not bave the authority to do auditions for those companies and movies. Talent scouts are told to say it's a "free audition", wben in fact the scheme is to sign consumers up for paid acting and/or modeling classes and photography.
4 Respondent's telemarketers call scouted consumers and use untrue statements to entice conswners into coming in for an audition. Telemarketers use statements such as "My assistant thought you were really good looking", "You might be perfect for some parts", "We have an audition coming up that I thought you might be perfect for", or "We work with Disney". Telemarketers are taught to say anything to get consumers to come in for a sales appointment. Telemarketers are required to schedule a minimum number of leads per day or they bave to stay after hours until the schedule is full. If new leads are not enough to fill the schedule, telemarketers are told to go through old leads alld try to schedule them.
5 Respondent's sales agents then meet with consumers at TIM. The sales agent's job is to use whatever means necessary to sell the scouted conswners "tbe dream" and convince them they have talent. Sales agents are taugbt to make sure consumers don't do well on
their "auditions" so a sale can be made for classes. Sales agents have consumers read a
part, or demonstrate modeling skills, however, no matter how well the consumer does, the
consumer is told they need to take classes. The sales agents tells the conSLUner that with
the right training and photos they will have a better chance of getting booked for a movie,
modeling job or both. To make Respondents and commissioned sales agents' money,
sales agents have to sign consumers up for acting and/or modeling classes and
photographs. Any consumer who can pay is signed up regardless of their talents or
abilities. Conswners are required to sign a contract and nearly all consumers sign a
finance contract through Respondents in-house financing at 18% per annum. After the
scouted individual has signed the contract, the sales agent automatically schedules them for a photo shoot and acting and/or modeling classes so TIM can say that services were
rendered, which will make it harder for the talent to back out of their contract.
1 Respondent's photographer is a make-up artist, not a professional photographer. Photographs are an important part of the scheme because they yield high profits for Respondents. Consumers come in and the make-up artist gets them ready for photographs and then takes the photographs. Several shots are taken and consumers are told they have to buy a minimum of six (6) photographs at $40.00 each. Consumers are always told they should huy 12 photographs at $40.00 each, which is unnecessary but increases Respondents profits. The photos are sent to l\vo graphic atiists to be edited, which are Ms. Frommelt's mother and aunt.
2 Respondents only employ one hooking agent. The hooking agent has ahout 4000 consumers in their data base and the majority is babies and children. The number of actual bookings, compared to the number of paid consumers on file, is few and far between. The booking agent sends out emails and notices offake auditions and photo shoot submissions to consumers to perpetuate the scheme. Many times Respondents accept photo submissions from consumers and the photos are not mailed out by the booking agent. Since 2007, only five (5) or six (6) TIM consumers have made enough money to pay off their contracts and photographs. Since 2007, no TIM consumers have made as much as $30,000.00 per year as an actor and/or model.
3 Respondents run credit reports on consumers who sign finat1ce contracts. Those consumers who sign finance contracts, with a credit score of 690 or higher, have their finance contracts sold to another company which Ms. Frommelt's father, Walt Frommelt owns. The name ofthis company is RMF Rock}' Mountain Financial (RMF). RMF pays Respondents 87% of the [ll1ance contracts value. The collections on the RMF contracts are still made in-house by Respondent's collection employee. Once a month Respondents print out a spread sheet of accounts for Mr. Frommelt and then Mr. Frommelt writes a R.MF check to Respondents. Respondents then collect on the finance contracts and deposit the money into the RMF bank account. Those consumers that stop paying are subjected to aggressive collection techniques by Respondents. Some accolU1ts are sent to collections through a third patiy collection agency. Accounts that are sent to collections from RMF are repurchased by Respondents.
4 On December 10,2010, Respondents were mailed a "Cease and Desist" letter from Lions Gate Entertainment Inc. (LGE) regarding Respondents falsely advertising auditions and casting calls for the movie "Hunger Games". A copy of the letter from LGE was mailed to the Utah Attorney General's Office and then forwarded to Utab Consumer Protection.
II. On January 6,2011, Investigator Glen Minson and Investigator Spencer Heward were approacbed by a TTM scout while eating at a restaurant. Investigator Minson was told he could be a model for a magazine like "Vogue" or a model for television commercials and even movies. Investigator Minson was told he would get a minimum oftwo modeling opportunities per month and there was no upfront payment. Investigator Minson was told that TIM makes money from a percentage of the work they find for their models. Investigator Minson asked if he had to have TIM do the photo shoot and Investigator Minson was told he didn't need to.
12. On January 13,201 1, Investigators Minson and Heward went to TIM in an wldercover role to determine what misrepresentations were being made by TTM during the recruiting process. Investigators met with sales agent Fernanda "Nanda" Galhardo and tbe following untrue statements were told to investigators. Ms. Galhardo stated TIM is the nwnber one booking agency and modeling agency in Utah. Ms. Galhardo stated casting directors are currently looking for tall guys, which is why Investigator Minson was recruited. Ms. Galhardo indicated TIM is the only talent agency in the valley that offers lifetime photography and that he'd never have to pay for photography again. Ms. Galhardo advised Investigator Minson he should take both modeling and acting classes. Ms. Galhardo stated "if you're not working, I don't get paid." Ms. Galhardo indicated she gets 20% of the fee when she books a talent. Ms. Galhardo claimed she doesn't work with just anyone and actually works with very few people because she only wants to work with people that will make her money. Ms. Galhardo states she guarantees there will be an audition available every two weeks. Ms. Galhardo stated TIM has a "huge" contract with Disney.
13. On February 1,201 1, Investigator Glen Minson spoke with attorney Stuart Kricin from Disney legal department. Mr. Kricin stated he spoke with the production office of Salry Pictures (SP), which is a production entity that has produced a lot of Disney Channel motion pictures in Utah. Mr. Kticin also spoke with Jeff Johnson, an independent casting director that works in Utah and has done casting for SP. Mr. Kricin advised that TIM's representation of having a "huge contract" with Disoey is false. Mr. Kricin advised he has been unable to find that TIM has any contracts with Disney. Mr. Kricin stated it was misleading for TTM to advertise auditions for "Ant Farm" because Disney would not have been doing auditions like the flyer represents. Mr. Kricin stated "Ant Farm" is a pilot that is in production for Disney Channel. Mr. Kricin stated an audition for something like "Ant Farm" wou ld involve the taleot going in front of a casting director and not something where tbey would be submitting a picture for an "audition."
14. That on February 23, 2011, Investigator Minson and myself interviewed Jeff Johnson, an independent casting director in Utah. Mr. Jolmson does a large percentage, if not the
majority, of the casting for Disney in Utah. During this interview Mr. Johnson indicated
TIM would not have a contract with Disney. Mr. Johnson advised TIM ranks at the
boltom of his list as far as his approval of the business practices of the talent agencies he
works with. Mr. Jolmson advised he has spoken with Ms. Frorrunelt on numerous
occasions over the last several years and repeatedly warned her about not using Disney's
name or his name inappropriately to recruit talent. Mr. Johnson claims that every time he
hears something regarding TIM inappropriately representing an affiliation they don' t
have, he mentions it to Ms. Fronm1elt but she blames the scouts or sales agents.
1 During this interview Mr. Johnson was shown a printout ofTIM's website which showed TIM using a picture advertisement for High School Musical 3, which leaves an impression TIM was or is affiliated directly with that movie. Mr. Jolmson states this is not the case and TIM should not be using images or representations like that. Mr. Johnson advised that he has heard that people at TIM have told some consumers they were guaranteed a role in High School Musical 4. Mr. Johnson believes it is deceptive to make representations like that to consumers because TIM has no control over who is going to get any part in a film.
2 During this interview Mr. Johnson was presented with an audition flyer sent out previously to TIM consumers about a Disney Channel audition called "Ant Farm." The description on the flyer stated TIM consumers could go to TIM's location and have headshots taken and they wuuld be submiLLed tu Disney. Mr. Johnson indicated that is not an audition. An audition would be in front of a casting director where you are being considered for a specific part for a specific project. Mr. Johnson pointed OUl that the "Ant Farm" flyer sent to TTM consumers was misleading because it stated Disney was casting for "extras and featured roles." Mr. Johnson indicated "Ant Fam1" was not being filmed in Utah and the industry doesn't typically hire extras from outside the state where the film is being shot due expense, time, and availability issues in doing so.
3 During this interview Mr. Johnson stated he is aware of many of the allegations and alleged deceptive practices TIM is utilizing based on what he hears in the industry and fi'om consumers. Mr. Johnson believes it is unethical to charge as much as TIM does for the modeling and acting classes. Mr. Johnson indicated the photography quality from TIM is substandard based on what he gets from other photographers that shoot consumer headshots and photographs. Mr. Johnson believes TTM is only interested in signing talent and collecting money, not finding talent work. Mr. Johnson stated, "They don' t care if they get a booking or not."
4 During this interview Mr. Johnson stated he believes some people might need acting and modeling classes, but he doesn't think TTM does a very good job of doing them. We asked Mr. Johnson if it was true that 30% of all movies are made in Utah, which is a representation being made by certain TIM employees. Mr. Johnson said Utah is not even in the top three states for film production. Mr. Johnson guessed that maybe 1% of all movies are made in Utal1. Johnson stated Utah is a very small movie market. Mr. Johnson stated he might see 700 to 1000 people for a film be is casting and only hire 15.
5
19. During this interview we asked Mr. Johnson ifhe thought having approximately 4000 consumers on file with one booking agent was reasonable based on industry standards. Mr. Johnson believed having that many conswners, with such a limited nwnber ofjobs in Utah, would prevent any agency from being able to make claims about their ability to actually place consumers with regular frequency. Mr. Johnson stated this industry is tough and most people make very little, if any, money as a model or actor in Utah. Mr. Johnson stated people will work in the industry for decades and still be struggling to fmd work or make any money. Mr. Johnson advised he does not believe TIM's business model was sustainable if TIM were to conduct their business like other talent agencies and primarily seek compensation from booking clients. Mr. Johnson does not believe Ms. Frommelt is oblivious to the potentially deceptive practices he hears about in his experience. Mr. Johnson indicated jobs for babies and children are much rarer than jobs for teens and adults. Because of the labor restrictions, babies and children are not ideal for casting in anything. In fact, Mr. Johnson stated they will often cast people over the age of l8 that look younger so they don't run afoul of labor laws.
The above actions are in violation of one or more of the following subsections of the Consumer Sales Practices Act, UTAH CODE ANNOTATED §13-1 1-4, Deceptive act or practice by supplier.
(l) A deceptive act or practice by a supplier in connection with a conswner transaction violates this chapter whether it occurs before, during, or after the transaction.
(2) Without limiting the scope of Subsection (I), a supplier commits a deceptive act or practice if the supplier knowingly or intentionally:
(a) indicates that the subject of a consumer transaction has sponsorship, approval, perfonnance characteristics, accessories, uses, or benefits, if it has not.
(b) indicates that the subject ofa consumer transaction is ofa particular standard, quality, grade, style, or model, if it is not;
(d) indicates that the subject of a conswner transaction is available to the consumer for a reason that does not exist;
(e) indicates that the subject ofa conswner transaction has been suppli ed in accordance with a previous representation, if it has not;
(h) indicates that a specific price advantage exists, if it does not;
(i) indicates that the supplier has a sponsorship, approval, or affi liation the supplier does not have.
(70 Counts-Potential Fine $175,000)
(This citation may be amended or supplemented based on an ongoing investigation)
THIS CITATION ISSUED this the 14th day of March 2011
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David P. Furlong, Investigator
Utah Division of Consumer ProtectlOn
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