STRATUS Lawsuit Alleges Janitorial Franchise Fraud

Stratus Building Solutions franchisees in Indiana have filed a Class Action Complaint and Jury Demand against Stratus master franchisee Shamrock Building Services, Inc.,  Kevin Spellacy, Jerry Wenger, and Pamella Martins,and Stratus Building Solutions franchisor Stratus Franchising, L.L.C..

The case was filed June 8, 2012 in Marion Superior Court on behalf of the defendants by Paul B. Overhauser, attorney, and Kathrine Jack, of Counsel, of the law firm of Overhauser Law Offices:

Read the full complaint here:

Nidia Martinez, et. al. v. Shamrock Building Services, Inc., Stratus Franchising, L.L.C., Kevin Spellacy, Jerry Wenger, and Pamella Martins

Nidia Martinez, Maria Manriquez, Elsa De La Cruz, Eni Cruz Rodriquez, Victor Garcia, Laura Andolon, Ronny Funes, Theresa Escobedo, Lorenzo Rodriguez, Faustina Negrete, Yolanda Alvarez, Jose Leon, on behalf of themselves and others similarly situated,

Plaintiffs,

vs.

Shamrock Building Services, Inc., Stratus Franchising, L.L.C., Kevin Spellacy, Jerry Wenger, and Pamella Martins,

Defendants.

Indiana Franchisees Allege Stratus Master Franchise Scam

According to the franchise complaint:

“This case involves unscrupulous Defendants who ignore these laws, and instead oppress hundreds of American workers just to make themselves richer.

“Their unscrupulous strategy is to label their workers ‘franchisees,’ and have them sign a ‘franchise agreement.’

“Using the misguided and illegal strategy, they have evaded the consumer and worker protection laws that form the foundation of American society.  Instead, they pay their workers a fraction of the minimum wage, make illegal deductions from payments to their workers, and evade taxes owed to the Indiana and Federal governments.”

The complaint alleges that the franchise system used by Stratus Building Solutions and its master franchisee Kevin Spellacy is essentially a scam that promotes an oppressive and illegal scam that defrauds would-be business owners out of their life savings.  The lawsuit contends:

“Defendant Stratus is a janitorial services company that contracts with owners of commercial buildings to clean offices, schools and medical clinics.  Because janitorial work is often an unattractive occupation, Stratus needs to offer incentives to prospective workers.

“Unlike legitimate businesses, who would simply offer a higher wage to attract workers for an undesirable job, Stratus uses a different scheme.  It offers prospective workers a ‘guaranteed business’ and ‘guaranteed financing’ and the prospect of making thousands of dollars.

“To make matters worse, when hiring cleaning workers, Stratus makes them first pay a ‘franchise fee’ to purchase a ‘franchise.’  These ‘franchise fees’ often represent a worker’s entire life savings;  yet they get nothing in return, other than the right to be subjected to further exploitation by Defendant’s illegal scheme.”

Read more hereJanitorial / Commercial Cleaning Franchise Issues

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205 thoughts on “STRATUS Lawsuit Alleges Janitorial Franchise Fraud

  • August 21, 2014 at 4:07 pm
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    Reasoned Source:

    This post is about the Jerry Wenger lawsuit and allegations, yet you keep refusing to either add him to your list or exonerate him.

    What does it matter that Stratus has 2 FDDs when franchisees contend Jerry Wenger didn’t give them either?

    Why don’t you address the Manriquez incident where he’s alleged to have been caught terminating a franchisee for fraudulent reasons and not returning her money?

    Can you address the allegation in the lawsuit that he actually called police on a poor franchisee who didn’t speak English and didn’t let her take valuable equipment HE made her buy???

    “Wenger and another Stratus manager arrived at Dellon and rudely informed Cruz Rodriguez that she would no longer work at that location. Cruz Rodriguez, who could not understand what Wenger said, attempted to finish her cleaning work for that day. Wenger called the police, and Cruz Rodriguez left…

    “Cruz Rodriguez was not allowed to take any of her equipment or her $750 plate washing machine with her when she left. She was never allowed to return to Dellon to pick up her property despite her requests to do so.”

    What is this Goldeneye company? Is he using these types of tactics on poor franchisees there who are just trying to make an honest living?

  • August 21, 2014 at 4:17 pm
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    Reasoned Source:

    Why is this not someone deserving a top spot on your list?

    “Funes contacted Stratus numerous times attempting to have Stratus assign him work to allow him to earn the income that was promised to him. Stratus, however, has never provided Funes with any income.

    “Funes finally spoke to Defendant Wenger regarding his contract. Funes requested the work and income that Stratus promised. Wenger told him that Status was not interested in working with him any longer.

    “When Funes asked for a refund, Wenger laughed at him and refused.”

    Here’s a list – allegations against Jerry Wenger you refuse to address:

    1) Selling illegal franchises
    2) Taking Manriquez’s account away
    3) Cruelly firing Cruz Rodriguez and not letting her retrieve her equipment
    4) Not giving Funes work he paid for, then laughing at him

    You’re slandering others for a lot less than this.

    Why no comment on all these Jerry Wenger allegations? Please share your insights.

  • August 21, 2014 at 4:27 pm
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    @Guest, Why do you feel that it is up to us to defend Mr. Wenger? You claim to have inside information and that per your statement ALL Allegations Made are therefore true. Sounds like to me that you are Judge/Jury/Executioner. Fortunately for all of us, we live in the U.S.

    Problem for Pete Frese, Dennis Jarrett and others is that the Allegations made against them have been “settled” which indicates at least partial/some guilt. Plus there have been numerous lawsuits against them in multiple states and they currently have the AG’s in California and Texas looking into them and their Respective Masters in those states.

    Those made against Kevin Spellacy, Jerry Wenger, Pamella Martins and Stratus Franchising, LLC. have yet to be adjudicated. Therefore, it is merely allegations. Of course we all know that Allegations are TRUE because Attorney’s are so TRUTHFUL in their Sensationalism in filing their Lawsuits.

    Wasting time with you as you have a different agenda that simply is built on speculation and lacks merit…..

    Confirmed Source is the real “of interest” discussion……

  • August 21, 2014 at 4:37 pm
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    “Those made against Kevin Spellacy, Jerry Wenger, Pamella Martins and Stratus Franchising, LLC. have yet to be adjudicated. Therefore, it is merely allegations…”

    How many of the attacks you continue to make against a wide range of individuals have been adjudicated?

    These at least are sworn statements filed in a court of law.

    Why isn’t Jerry Wenger on your list?

  • August 21, 2014 at 4:55 pm
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    @Guest, Charges against Pete Frese, Dennis Jarrett, Marvin Ashton, Carmen Garcia, Mark Bashforth, Jayson Bashforth, Bill Blair and others HAVE BEEN adjudicated. Settlement of a Lawsuit = Adjudication. Texas and California AG’s office is looking not only into the activities of Dennis Jarrett and Pete Frese, but those of Afshin Cangarlu, Ric Boucher, Mark Bashforth, Foad Rekebi, Jayson Bashforth and others.

    I think it qualifies when you have a State Official/Agency looking at you, don’t you.

    Now, You continue to want to play your stupid game to what end? First you claimed that Kevin, Jerry, Pamella, Stratus hadn’t answered the charges. When you found out that they did, You changed the criteria as now you want them to be found “Not Guilty” and to have the Lawsuit Adjudicated. Well when you reviewed the documents you could access online, when is the case to come to trial?

    You state for the record that Allegation equal Guilt. Obviously, I would hope you are smarter than that, because this post deserves a quality discussion. Even the valued Administrator/Owner/Publisher of this site has been sued multiple times, accused of various acts falsely, in writing, in Allegations and he has Won EVERYTIME! Please visit the multiple posts and blogs to attest to those facts.

    Now for the final time, What is it that you want from either REASONED SOURCE or Mr. Wenger?

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