A Cautionary Tale

I’ve used MANY vendors over the years.

That’s one of the keys to getting a lot of things done, and done well – having a team of great people to put all of your ideas into action.

At the heart of the matter, I believe that the role of a true entrepreneur is to START great projects – not to finish them.

The good news is that the vast majority of vendors I’ve used and recommended to my clients and loyal followers have been outstanding people and have done outstanding work.

But once in a while, a bad apple finds its way into the bushel…

Last week, I received a very troubling phone call from a friend who is a highly-respected member of the direct response marketing community. His voice cracked as he relayed the shocking news to me:

He had been the victim of multiple scams over several months by someone that I, too, was involved with in various business dealings.

*One of these scams was even perpetrated on both of us at the same time! Unbeknownst to each other, we had both wired tens of thousands of dollars and signed similar agreements making us part owners of the very same “revolutionary” software – software that, as it turns out, was completely non-existent.

My friend explained to me how he had discovered that the person who was scamming both of us at the same time was operating under a fictitious alias, and is actually internationally notorious for cheating many, many people out of their money via multiple scams. He told me the scammer’s real name and urged me to do a Google search, upon which I immediately found mountains of evidence of his various schemes.

This news sickened me, and not just because I had paid his company tens of thousands of dollars for various services and had just agreed to partner with him in a business venture. Worst of all, I had recommended this con artist’s services to some of my friends, colleagues, members and clients.

When I confronted the fake-named scammer’s partner, I was shocked and saddened when he told me that he had found out about this man’s fake name and unethical past several months ago, and that instead of letting me and his other clients know the truth, he had made the decision to keep up his partner’s fake name charade. (He said that he felt his charlatan partner had changed his con artist ways and should be given a second chance – an opinion he conveniently decided to keep from me and his other clients.)

So far, this company CEO continues to insist that he is merely an innocent victim along with all the rest of us – that his COO duped him, and that he never intended to harm or defraud anyone.

That’s why I now refer to him as “The Pete Rose Of Business” (or Lance Armstrong, or Ryan Braun, or so many others who repeatedly denied any wrongdoing for a period of time before finally coming clean).

Will he ever admit that he helped perpetuate this fraud that continues to harm so many people? If not, I’ll have to start calling him “The Barry Bonds Of Business.”

In contrast, to me the most important thing in business is trust.

I believe that if anyone is going to hear anything negative about me, they’re going to hear it FROM me, and they’re going to hear it from me before they hear it from anyone else.

Therefore, here’s the completely different way that I chose to approach the situation…

1. I started going through the difficult process of letting my colleagues and clients know what I had found out about this scam, and admitting that I had played a role in it by promoting the scammers.

2. I also promised to do whatever it took to right any wrongs to my clients because of these scammers.

Was that a very uncomfortable thing to do? Could it result in a considerable financial cost to me? Absolutely. But I believe that it had to be done.

My clients agree, giving me feedback such as: “I know this has been difficult for you and Michele. I also know I am not alone when I say I am proud to be associated with you. The way you run your business with total honesty and integrity is rare and admirable in today’s world.”

So what about the business partner of the fake-named con artist?

Sadly, he chose to take a different path…

• He denies any wrongdoing, claiming that he never meant to hurt anyone.

• He also refuses to return any of the wrongfully-attained money he collected as a result of the scam.

• He continues to list his con artist partner as the COO of his company – complete with phony bio – on his website.

As a result, I and many others have lost all respect for this man as a business person.

Here’s the moral of the story…

Negative things are bound to happen to you in business. When they do, have the courage and integrity to be up front with your clients, and avoid making excuses and trying to place blame on someone else.

Always remember: It’s about your clients. It’s not about you.

Coming next week: More lessons to be learned from this situation…

Now tell me: Have you ever been the victim of a con artist’s scam? Have you ever had a con artist use you to get to your clients? I’d love to read your comment below.