STRATUS BUILDING SOLUTIONS Sued by Franchisees for RICO Violations.
(UnhappyFranchisee.com) St. Louis-based attorney Jonathan Fortman continued his relentless fight for the unit franchisees victimized by Stratus Building Solutions today by filing suit against the janitorial franchisor for violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).
Readers of UnhappyFranchisee.com are familiar with Fortman’s ongoing campaign against Stratus Building Solutions, a company that allegedly preys upon hardworking Hispanics and other ethnic minorities who are seeking to own a piece of the American Dream. Both directly and through a tier of “Master Franchisees,” Stratus allegedly collects thousands of dollars from individuals, promising them predetermined “guaranteed” commercial cleaning jobs. Franchisees allege they either never receive the promised work, they receive work that is underbid to the point that it is unprofitable, or, in some cases, are assigned work that is then taken from them due to phony or exaggerated “complaints” supposedly originating from customers.
These are all common unethical practices in the janitorial franchise industry, in which the principals of Stratus and many of the Masters have years of experience.
Here is the press release from The Law Office of Jonathan E. Fortman:
FOR IMMEDIATE RELEASE
STRATUS BUILDING SOLUTIONS SUED BY UNIT FRANCHISEES FOR RICO VIOLATIONS
The Law Office of Jonathan E. Fortman announced today that it has filed suit against Stratus Franchising, LLC, the franchisor of Stratus Building Solutions, and each of its Master Franchisees.
The suit seeks certification of a class consisting of every Unit Franchisee and seeks damages under the Racketeer Influenced and Corrupt Organizations Act (RICO). “Stratus Building Solutions is a franchise system built on fraud,” according to Jonathan E. Fortman, lead attorney for plaintiffs. “We have uncovered numerous instances of blatant fraud as set forth in our federal complaint. The franchisor defrauded the Master Franchisors who, in turn, perpetuated the fraud at the expense of those who invested their life savings into a system destined to fail,” Fortman stated.
“What I find particularly troublesome is the manner in which Stratus manipulated its ranking in the annual Franchise 500© list of Entrepreneur magazine. To many of our clients, that list legitimized this franchise system. However, we now know that the information used to rank this franchise was not based in any fact and was, in fact, fraudulent,” Fortman continued.
“The Master Franchisees had a chance to put a stop to the fraud and protect the franchisees. Instead, the masters chose to look out for their own best interests even after being made aware of this fraud. They have blatantly ignored the devastation experienced by their Unit Franchisees. They made their bed, now they have to lie in it. We look forward to presenting the overwhelming evidence in federal court and are confident that our clients will prevail,” Fortman concluded.
The Law Office of Jonathan E. Fortman, LLC, was established in St. Louis, Missouri, in 1995. It concentrates its practice in the representation of individuals harmed by fraudulent franchise systems. Jonathan E. Fortman is the lead attorney in the case of Handing v. Contours Express, LLC in which he obtained verdicts in excess of $1.3 million for 8 franchisees of the second-largest women’s only fitness chain and has over 60 additional claims pending.
# # #
If you would like more information about this topic, please call Jonathan Fortman at (314)522-2312 or email Jon at jef@fortmanlaw.com.
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Tags: Stratus Building Solutions, Stratus Building Solutions franchise, Stratus Building Solutions RICO, Stratus Building Solutions lawsuits, Jon Fortman, Jonathan Fortman, Dennis Frese, Dennis Jarrett, janitorial franchise, commercial cleaning franchise, franchise fraud, franchise scams
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@Viewers, I got one more for sure to stop paying their royalties and that isn't all, they have decided to go ahead under advice of their local counsel to formally "split" from Stratus Franchising......You may ask WHY NOW? Bottom line is Stratus Franchising is going to file for BK protection sooner vs. later. Too many signs point towards that including the following:
a) DJ isn't going to give Lathorp and Gage anymore money to fight the "Civil Cases".
b) DJ and Pete have formally split away as the former Simpatico office has moved and Pete has not only "locked" DJ out, but now has his own private counsel.
c) One of their key "pansies" in Mark/Jayson Bashforth are facing their own "defaults and issues" as two of their "royalty payers" have quit paying, one is in trouble with the AG in Texas and is "coming clean" which simply shows the FRAUD committed by Bashforth and the AG will move to close him down (Bashforth). Bashforth already has one lawsuit directly against him/his brother, another is brewing.
d) They "hired" a BK expert in good ole "DD" for a reason
e) They are simply trying to move their personal assets remaining to some sort of reasonable "coverage" and/or moving it into real estate so they can collect monthly payments as they are fighting in the BK court.
Back to the REASON for sending the letter separating yourself from Stratus Franchising: BK Court reviews any/all actions 60 days PRIOR to filing. If your Breakaway happens 61 Days out, YOU will NOT be forced to Pay any Royalties at all....FOR those of you that are TOO STUPID to realize that your BRAND IS DEAD, then ok, you will make your bed and have to LIE in it! The rest of you, SEND YOUR LETTERS ON MONDAY A.M. AND WITHOUT DELAY!!!!!!!!!!
@Viewers: BREAKING NEWS!!!!! In an email sent to all remaining Stratus Masters, Channen Smith Proclaims; I'M NOT SELLING!!!!! MY WIFE AND I ARE PERFECTLY HAPPY RIPPING PEOPLE OFF AND CRUSHING THEIR DREAMS! Though he does admit he is having some "Growth Issues" in the Phoenix Market.
Mr. Smith also forgot to mention some/all of the following in his email:
1) Instead of paying the 1/2 Royalty that most of you are paying, He, Ashfin, Tom Weiss/John Coleman, Mark/Jayson Bashforth are paying and have been paying 1/3 Royalties and currently Mark/Jayson Bashforth are paying ZERO!
2) While YOU WERE PAYING full price for your territories, Mr. Smith was given Knutzen's business in Nebraska and Kansas City for the balance of notes held by JARRETT REALTY!
3) While YOU WERE PAYING full price and Upfront in most cases for your Territories, Mr. Smith was simply "signing a note" to none other than JARRETT REALTY for Phoenix!
4) While YOU were running your business overall well, Mr. Smith was on TV with his Kansas City Branch having to answer for ISSUES in regards to unfulfilled Packages.
5) While YOU were doing right by your owner-operators, Mr. Smith and his TEAM in Phoenix were busy RIPPING PEOPLE OFF such as the lady described in the Fortman case that caused ALL OF YOU great harm.
6) While YOU were doing right by your owner-operators, Mr. Smith and his TEAM have been BANNED from posting ads on Craigslist in the Denver Market as Craigslist has placed a SCAM ALERT on him and any of his postings.
7) While YOUR employee's who were doing things the RIGHT WAY and therefore actually appreciated their jobs and their customers whom happen to be not only the contract cleaning customers but the Owner-Operators, His simply couldn't stand his unethical practices and LEFT in droves! Most especially in the Denver Market.
SO Mr. Smith, let me ask you a few questions about your email:
a) How do you like being front and center in Good Ole Reasoned Sources sights?
b) How do you like answering questions that clearly show that you have done things the WRONG WAY?
c) How do you like LYING to the Masses in regards to the SELLING of your company and/or your attempted SELLING?
Seems like you just can't trust anyone but DJ/Pete, Mark/Jayson, Afshin, Tom/John well hell, they don't even TRUST themselves anymore!
Remaining Masters: Douglas Doyle aka "DD" is a HEAVYWEIGHT BK attorney, he has one purpose only, Take Stratus Franchising into Bankruptcy! Send your letters, Quit paying your FEE's NOW....IN BK every transaction is looked at 60 Day's PRIOR to filing. Though it BREAKS your Master Contract, the BK court MAY order a restraining order which would/could force you to not only REMAIN in the System but have you Pay FULL ROYALTIES to the Court!!!!!!!!
Reasoned Source has NEVER lied to you in the PAST about KEY THINGS!!!!!! We've had fun, we've made a joke about the "Poodles", we've made fun of DJ's stripper habit/gambling habit/Fraud Habit/Drinking Habit, we've made fun of Bill Blair's Drinking Habit/Sexual Habits/Sexual Harassment Habits/Fraud Habit/Business Habit, we've made fun of Pete's Monotone Voice, Divorce, Sleeping Arrangements etc....But HEED what Reasoned Source is Saying about the BK......He knows first hand of what he is speaking!
@Viewers: Breaking News!!!!!!!! Pete Frese denies he and DJ are "Breaking Up" and then has the audacity to BLAME the remaining Masters for the Woes currently being experienced by Stratus Franchising, LLC. Because in his words " You are spending too much time looking at websites and helping those websites GAIN in Google Rankings and Highlighting the issues even more!"
Wow! It kind of reminds me about a conversation that Pete had a while ago (over one Year plus) in where he didn't DENY THE FRAUD, he simply stated "FRAUD is hard to prove!"
I'm going to right a book about Pete Frese and his sayings, similar to what Yogi Berra had published once! We will call it FRESEISMS!
So Pete, if not true, Why did you move "Simpatico Offices" from the Innerbelt Sanctuary still occupied by Stratus Franchising and DJ respectfully?
So Pete, if not true, Why do you have your own attorney?
So Pete, If not true, Why are you still blaming Poor Ole Reasoned Source and "Forces outside Stratus" and YOUR REMAINING MASTERS for your Ills? Can someone say LOOK IN THE MIRROR? Let me ask you a Question?
Did Poor Ole Reasoned source do the following?
a) LIE TO POTENTIAL AND THEN NEW masters about the Performa and how you and DJ committed MULTIPLE ACTS of FRAUDULENT INDUCEMENT?
b) LIE TO POTENTIAL AND THEN NEW masters about HOW Stratus Franchising and Simpatico came into being?
c) Hire Bill Blair?
d) Move Fernando Lamas from Pete Vevan's office to San Diego office?
e) Cause the original "Fortman Case'?
f) Hire Marvin Ashton? Who is now party to two RICO cases, One direct Fraud Case and soon to be more....
g) Did good ole reasoned source cause the following Masters to Leave the System?
Rochester
Buffalo
CT
Atlanta
Jacksonville
Miami
Oregon
Ventura County
Orange County
Salt Lake City
Chicago
Indianapolis
MN- technically twice
Lexington
Louisville
Charlotte
Raleigh/Durham
Triad
and others coming soon!
h) Did Good Ole Reasoned Source cause you and DJ to openly LIE to the St. Louis Business Journal in an article where the sole purpose was to commit additional acts of Fraud?
I) Did Good Ole Reasoned Source cause the dismantling of Stratus Franchising International which is now a legally dissolved company in Illinois formally held by Dennis Jarrett?
j) Did Good Ole Reasoned Source cause the Tax Lien to be filed against "Affiliated Services" for 20k?
k) Did Good Ole Reasoned Source LIE about any of the above?
Shame on you Pete Frese for blaming the Remaining Masters for your Woes!
Shame on you Pete Frese for being a primary cause for Fraud and the direct harm that you have caused dozens of Masters and 100's of Unit Franchisee's!
Shame on you Pete Frese for being a COWARD!
Shame on you Pete Frese for Cheating on your Wife (former)!
Shame on you Pete Frese for allowing SCUM like Bill Blair to Harm Innocent People!
Shame on you Pete Frese for orchestrating the move of the SCUM Fernando Limas to SCUM BASTARDS Mark and Jayson Bashforth!
NOW, Final Shame on the Remaining Masters for not doing what Reasoned Source has BEGGED for you to do!
@Viewers, Over the weekend, I had the chance to re-read both Channen Smith's email to the Masters as well as reported earlier by me, Pete Frese's email to the Masters in which he scolded the current/remaining Masters for taking time away from their business (2 or 3 minutes) and spreading "gossip".....
Channen, How does Mrs. Smith feel about you directly implicating her in your business dealings that are at best questionable? I mean let's face it, you basically stated in writing, that she not only knows about your offices (various) issues, but approves 100% of those dealings which have landed you in court and lawsuits.
Kansas City, you have at least two (2) attorneys pursuing you and your branch there along with the DAMAGE caused directly by you and your key employee's by having the brand on local TV and described as a Ponzi Scheme!
Phoenix, you have at least one local and one national attorney (fortman) that has directly named you and your branch in Phoenix of inappropriate business dealings and Ms. Rivera has signed an affidavit and declared as much.
Denver, you have been BANNED from posting on Craigslist as your franchise has had so many problems there that Craigslist has BANNED YOU!!!!!!
Now, why didn't you tell the remaining Masters about your business dealings with Pete/DJ in which all four (4) of your branches are paying only 1/3 Royalties while everyone else is paying 1/2!
Why is it that your branches are directly named in and to a degree a primary role in the DAMAGE caused to the BRAND yet you aren't paying anything to the overall 'DEFENSE FUND' which in of itself is a Joke?
Why is it that you and the other members of the Executive Team are pictured and talked about in a recent Newsletter vs. Pete Frese and Dennis Jarrett?
Why is it that you and the other members of the Executive Team are selling/whoring the Master Licenses and cutting deals (attempting) to sell previously held territories for extremely low prices and offering to finance? Is it because you see the beginning of the end?
Remaining Masters, GET OUT!!!!! Reasoned Source has learned over the weekend that Dan Doyle is busily trying to SPEED UP the process for filing of Bankruptcy, in fact, he is planning on filing NOTICE OF INTENT TO FILE, in the coming Days/Weeks!!!!
Send your SEPERATION LETTER Today, Make sure you point out the following in order to convince a BK Judge in the future that both Pete/DJ committed acts of Fraudulent Inducement and you MAY NOT be required to continue to pay Fee's to the BK court......
Performa used to make decision was Fraudulent as it did not say/state about the acquisition of former Jan-Pro Master License in St. Louis in order to Start Stratus Building Solutions. It therefore SKEWED all of the Performa as nearly 600k in general Revenue and approx. 40 Unit Franchisees that were counted, presented and in writing shown to be NEW SALES when they were actually part of the Jan-Pro Transfer/Acquisition.....
FDD was false as it didn't show the previously closed/bankrupt Masters in Las Vegas, MN and others.
FDD was false as it didn't show the relationship with Jarrett Realty
FDD was false as it didn't show the relationship with Nyco, Tennant, Bio-Shield
Promises not kept in regards to "Affiliated Services"
Dennis Jarrett's resume was incorrect and falsely stated in regards to his titles and positions at both Jan-Pro and Coverall-Pacific/Mountain
Validators Afshin C., Mark/Jayson Bashforth, Tom Weiss, John Coleman received financial considerations both short term payments and long term Royalty Breaks for Validating the False Information in both the Performa generated by Stratus Franchising, but that they created their own FALSE Performa's as well!
Not that you needed more, but it appears that multiple Magazine and Awards won by Stratus Franchising was as a direct result of Fraudulent Figures being filed and shown by them in regards to growth, unit franchises, Master Licenses sold. Recently to additionally prove the Fraudulent Intent/Inducement was the recent article in which Both Dennis Jarrett and Pete Frese were quoted that Stratus Franchising Sales were down 4% based upon Customers cancelling due to the BAD ECONOMY!
Current Stratus Clean Website shows the following Masters as still "Part of the System" and they clearly are not and legally are not.......
Indianapolis
Louisville
Lexington
MN
Chicago
Rochester
Buffalo
Jacksonville
Miami
Atlanta
Charlotte
Raleigh
Triad
Ventura County
Orange County
Oregon
Salt Lake City
And others.......In fact up until the NEW Website launched approx. 1.5 Years ago, it was still showing the Las Vegas Branch as being Active!!!! It had been shut down for nearly 4 Years!
WRITE your Letters, Send them Certified, GET OUT OF THIS FRAUDULENT SYSTEM!!!!!!
BREAKING NEWS!!!!!! It appears that good ole Pete Frese and Dennis Jarrett are attempting another "Covert Action" that has been discovered by Good Ole Reasoned Source and his friends!
Yesterday late afternoon, Pete Frese and the "Webmaster" of Stratus Franchising sent out a note to all Stratus Masters informing them that their will be a MASS DELETE of the Stratus Clean Email System on 10/19/13! Any/all emails dated 4/13 and earlier WILL BE DELETED!
Now, we all know Pete Frese and Dennis Jarrett have no morals.
Now, we all know Pete Frese and Dennis Jarrett have lied under oath in regards to the lack of supposed information that they have access too including denying the BOSS system and its contents.
Does Dennis Jarrett and Pete Frese think for a moment that with all of the Court Cases going on in California, Indiana, Missouri, the investigation on-going in Texas by the AG's Office, Notice of Intent to file suit recently sent to them from a LARGE MASTER IN A LARGE STATE (Yes, Reasoned Source knows all!)! That some how, some way, they would be able to SNEEK this thru?
Now Remaining Masters who aren't SCUM BAGS Channen Smith, Afshin C., Tom Weiss, John Coleman, Mark and Jayson Bashforth.....PAY ATTENTION!
Reasoned Source has told you time and time again, that Stratus Franchising is heading into BK sooner vs. later....
WHEN ARE YOU GOING TO LISTEN? Not only is this an attempt to DESTROY EVIDENCE, but they are quite literally CLEARING THE DECKS in order to HIDE emails that detail not only the FRAUD, but the conversations that took place Between them and the Departing Masters! Which included PROOF of the Fraud!
THESE ARE THE PEOPLE YOU ARE ASSOCIATED WITH!
@Viewers, Update: Reasoned Source has made sure that attorney's in three (3) states have the information listed above. Not to mention a contact in the Texas AG office has been given to Reasoned Source as well!
My Question is, What did Matt Jacober and Dan Doyle know and when? Reasoned Source has a hard time understanding How and/or IF Lathrop and Gage were aware of Dennis Jarrett and Pete Frese's obvious disregard for the Law and the Court Systems in General.
This is not the first incident by which Dennis Jarrett and/or Pete Frese have "snubbed" their noses at the court. Question is, is this under direction of Lathrop and Gage's "Poodles"? If so, what does that say about Lathrop and Gage's overall program by which they understand the Pete Frese statement of "Fraud, is hard to prove"! Are they now not denying the Fraud, Are they simply stating they KNOW the FRAUD happened and they have simply decided to DENY and DESTROY willingly and knowingly anything that can prove the Fraud?
This is Disturbing on numerous levels........
Is this the type of people YOU, The remaining Masters want to be associated with?
They by their actions are fully admitting the FRAUD!
They by their actions in releasing and in some cases PAYING OFF some of the Former Masters is Proof in and of itself that the FRAUD Happened!
What more do you remaining Masters want from Reasoned Source?
Coming Soon, More Bad News for Stratus Franchising, Mark Bashforth, Jason Bashforth and Dennis Jarrett!!!!!!!!
BREAKING NEWS! Reasoned Source has just confirmed that three (3) current Masters have been "cut off" access to the BOSS System!!!!!!!!! You all remember the BOSS System, the one that didn't exist according to Pete Frese, Dennis Jarrett and Lathrop and Gage!
Now, why on earth would Pete Frese, Dennis Jarrett cut off access to these three (3) Masters? HMMMM........
Me thinks, it is because they aren't paying their notes/fees anymore?
Me thinks, it is because two of them have notified them in writing that they are filing suits very soon?
Me thinks, it is because they are underhanded, Scum Sucking, Liars, Frauds and Disgusting Human Beings?
Me thinks, that more news is coming sooner vs. later when it comes to Stratus Franchising, LLC., Pete Frese, Dennis Jarrett and Lathrop and Gage...........
@Viewers: The final nail for DJ and Pete Frese is definitely in place...It will be a matter of days, not weeks or month's when these two Scum Bags are finally forced to file for Bankruptcy Protection in Missouri.
Missouri Courts Website has been busy the last few days, especially since Reasoned Source has sent to more than a few current Masters links to prove the Tax Liens filed against "Affiliated Services" for 2008 and 2009.
Texas AG's office has been sent documents including letters in Reasoned Source's possession of the separation agreement for Pro2FS and Stratus Franchising, not to mention the depositions of Pete Frese and Dennis Jarrett, not to mention the Performa utilized for the Fraudulent Inducement and the FDD's for 2008 till 2012 for Stratus Franchising, LLC filed in Missouri.
Lots more coming on that situation.........
Now that Reasoned Source has started his Campaign against Channen Smith and his wife Rene, it is amazing the change in verbage coming from Channen Smith to various people. Seems that he made a MAJOR mistake by putting words on paper in regards to his Wife's (Rene) satisfaction with Stratus Franchising and the Model by which they operate....
More coming on that growing situation........
Now that Reasoned Source has sent numerous documents directly to Texas AG, I wonder how long it will be before Mark/Jason Bashforth start turning on Pete Frese and Dennis Jarrett....Can anyone say "Eat their Young"!!!!!!!!!
You few Masters that are afraid, you need to GROW SOME and send your separation letter....You cannot sit and wait, that Letter needs to be sent for Legal Reasons both in/out of Bankruptcy Issues....Check with your own attorney if you don't believe Reasoned Source, TIMING is EVERYTHING!
More defections to be announced soon!
Read the $11M demand letter against Stratus Master franchisee Mark Bashforth here:
STRATUS Master Franchisee Bashforth Accused of Fraud, Franchise Violations
Comments invited
Breaking News!!!!!! It appears that another Lawsuit is about to be filed against Stratus Franchising, Gator Greenwill and my new FAVORITE MASTER, Channen Smith!!!!!! Reasoned Source was contacted by a source close to the situation and needed some assistance with information......Always glad to be of service!
Speaking of Lawsuits.....You remaining Masters, let me ask you a question, How much support from Stratus Franchising have you received with the RICO case, the Bad Publicity, the loss of value of your investment in Stratus Brand, have you Google'd your name recently? How many more Lawsuits are going to be filed before you lose your total investment? How much more harm will come to you and your families by staying with these liars, cheats, thieves?
So lets see, wanna guess how much money has been spent by former Masters with attorney's? Wanna guess how much more money is going to be spent? Wanna guess how much help Stratus Franchising, Pete Frese, Dennis Jarrett, Marvin Ashton, Bob Stapleton are going to be?
Wanna Guess when Reasoned Source is going to stop?