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TN AG sues Memphis employment agency

By Andy Wise - bio | email | Twitter | Facebook

MEMPHIS (WMC TV) - The Better Business Bureau kicked her out.

A local lawyer has sued her for breach of contract.

Linda McCluskey is backed into a corner.

"None of it's true," said the owner and operator of Britton James & Associates and former managing partner of the defunct Franklin Group of America, both at 5100 Poplar Ave.  Both are career counseling and employment agencies.

Now she has the attention of Tennessee Attorney General Bob Cooper.

Cooper has sued McCluskey in Shelby County Chancery Court, also naming Britton James & Associates, The Franklin Group of America and two firms formerly associated with McCluskey:  Hamilton Clark International and The Renaissance Group International.

Cooper's seeking restitution for more than a dozen consumers he says McCluskey mislead into paying thousands of dollars to help them find jobs "....at exaggerated salary levels, promising 'career development, career management, and career transition services' and other related 'job placement services.'"

"Unfortunately, record high unemployment creates an environment where some try to take advantage of others by giving them false hope with a large price tag and little or nothing in return," said Cooper.

"I believe in our service," said McCluskey in an exclusive television interview with the Action News 5 Investigators.  "The only time a (client) will fail is if they don't want to do what the program requires."

Cooper's suit alleges McCluskey charged her clients up-front fees for services in violation of Tennessee's Employment Agency Act.  Cooper said under the law, an employment agency can only collect fees after it lands a position for a client. 

It also alleges McCluskey used several aliases "...making the same fraudulent representations, in an attempt to garner even more business."

"Absolutely incorrect," countered McCluskey.

Memphis attorney and City Councilman Jim Strickland has also sued McCluskey, Britton James & Associates and The Franklin Group of America on behalf of Lisa David of Collierville, TN.  Strickland's complaint alleges McCluskey broke a binding Better Business Bureau arbitration that ordered her to pay David back $3,980 for career counseling services David said she never received. 

"They weren't real services," said Strickland.  "They didn't exist."

Randy Hutchinson, President/CEO of the Better Business Bureau of the Mid-South, said McCluskey failed to show for the arbitration hearing, a requirement for BBB-accredited members.  The arbiter ordered the payment because McCluskey "...engaged in deceptive sales practices and owes (David) a refund for her purchase price," according to arbitration documents.

The BBB's board of directors voted to expel McCluskey for not honoring the arbitration award.

"We can't force them to make their payment, but what we can do as we've done is expel them from membership," said Hutchinson.

"I was not notified (about the arbitration hearing)," said McCluskey.  Hutchinson maintained both she and her former partner, Glenn Roseberry, Jr., were notified of the hearing.

Action News 5 also interviewed a Bartlett, TN, man whom the attorney general said is one of the complainants that helped initiate the state lawsuit. 

The man, who asked not to be identified, said he paid McCluskey $4,000 two years ago for career counseling, job interview preparation and networking.

"They assured me that with that amount, they could guarantee me a certain salary and a certain salary range," he said.  "I didn't get anything."

"We have numerous letters from clients saying, 'I would not be where I am today without your services,'" said McCluskey.  "There's not another service in Memphis that prepares a client for what we do."

Cooper's suit also seeks an injunction to cease McCluskey's operations.

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