New York Small Business Lender to Pay U.S. $26.3 Million to Resolve False Claims Act Allegations
WASHINGTON, May 6 /PRNewswire-USNewswire/ — Ciena Capital LLC, a private, non-depository lender located in New York City, has reached an agreement with the United States to settle fraud claims related to its small business lending for $26.3 million, the Justice Department announced today. Ciena and a subsidiary, Business Loan Center (BLC), a small business lending company licensed to originate and service loans under Section 7(a) of the Small Business Act, are alleged to have submitted false claims for payment on loans made through the Small Business Administration (SBA).
The SBA, through various lending programs, provides financial assistance to small businesses by guaranteeing up to 85% of the value of loans made by private lenders. Today’s settlement resolves allegations that Ciena and BLC falsely certified that they complied with SBA regulations when they submitted claims for payment on loans they originated, underwrote, and serviced. Some of these loans defaulted shortly after they were made as a result of Ciena’s and BLC’s disregard of SBA rules, regulations, and underwriting requirements. Other loans were originated by former BLC Executive Vice President Patrick Harrington, or his office, during his tenure. Harrington pleaded guilty to conspiracy to defraud the United States and was sentenced to 10 years in prison for his prominent role in the fraudulent loan scheme, which included falsifying loan documents, inflating property appraisals, and using straw purchasers to engage in sham transactions. This settlement also resolves allegations that the defendants’ parent company, Allied Capital Corporation, is liable for the acts of its subsidiaries.
“The United States will not tolerate fraud in lending programs designed to assist small businesses, which are so vital to our nation’s economy,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “We will pursue those who seek to take unfair advantage of programs designed to help people start a business and earn a living.”
The settlement for $26.3 million, which includes a credit for $18.1 million previously negotiated by and paid to the SBA, resolves a lawsuit filed by James R. Brickman and Greenlight Capital Inc., under the qui tam,or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. Mr. Brickman and Greenlight Capital will receive $4.3 million as their share of the government’s recovery.
On Sept. 30, 2008, Ciena and several of its subsidiaries filed petitions for bankruptcy under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The settlement announced today must be approved by the Bankruptcy Court.
“As a result of strong collaboration between SBA’s attorneys, the SBA Office of Inspector General, the Justice Department and the U.S. Attorney’s Offices in Atlanta and New York, we have recovered a significant amount of the loan loss stemming from Ciena’s operations,” SBA General Counsel Sara Lipscomb said.
“The size of these payments sends a strong message that the government will not tolerate fraud, waste or abuse of SBA programs, ” said SBA Inspector General Peggy E. Gustafson.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, including the SBA, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the Financial Fraud Enforcement Task Force please visit www.stopfraud.gov.
SOURCE U.S. Department of Justice
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Majority of Small Businesses Saddled With Websites That do not Meet Their Needs
Deluxe Corporation Offers Free Website Redesign and Web Hosting to Small Business with Worst Website
ST. PAUL, Minn., May 6 /PRNewswire-FirstCall/ — Many small businesses have a love-hate relationship with their websites — they love to reach new customers online, but struggle to keep the sites fresh and up-to-date. Deluxe Corporation (NYSE: DLX) is looking for those in most desperate need of a website makeover to receive complimentary website tools and services in the “I Hate My Website” contest.
Small businesses can enter at www.ihatemywebsitecontest.com until May 15, 2010. The grand prize winner will receive a free WebExpress(SM) site redesign, one year of Web hosting from Deluxe and a Gateway® Netbook LT2104u. The grand-prize package has an approximate retail value of $1,800.
“Having a solid online presence is critical to growing a business,” said Joanne McGowan, segment leader, Small Business Services at Deluxe. “Deluxe recognizes that many small business owners do not have the time or expertise to improve their websites. Our proprietary tools and services can fulfill this need, which is why we’re excited to be sponsoring the ‘I Hate My Website’ contest.”
A recent Deluxe survey found the majority of small businesses (56 percent) feel they are saddled with websites that do not meet their needs. Among the survey findings:
21 percent of respondents said that their website needs more work in terms of content and layout29 percent of respondents said their website needs an overall refresh
Deluxe’s WebExpress provides users with access to more than 5,000 professionally designed website templates, one-on-one website design, consultation with an experienced website designer, search engine optimization and e-commerce design service. Through WebExpress, businesses also receive bundled website updates and maintenance service, along with marketing applications to help them reach new customers and communicate with existing customers.
“Deluxe has spent years working closely with small businesses. We can anticipate needs and tailor our tools and services to help small business owners achieve their goals,” McGowan said. “Our WebExpress offering makes it easy for small businesses to quickly establish or grow their online presence. Business owners have access to skilled experts who can deliver a professional, custom site within 10 business days.”
More than 60 prizes will be awarded in the “I Hate My Website” contest. Fifty entrants will receive $50 DeluxeCard® Visa® gift cards and one month of free website hosting and design with the purchase of a WebExpress package. From these 50, a popular vote will determine the 10 finalists who each will win a Flip Video™ Ultra Series II Camcorder White/Silver Model U1120W. Deluxe will select the grand prize winner from the finalists.
About the Survey
Deluxe Corporation fielded an in-depth phone and online survey completed by 227 small business owner respondents through an independent research company. Complete results are available on request.
About Deluxe Corporation
Deluxe Corporation is a growth engine for small businesses and financial institutions. Through its industry-leading businesses and brands, the Company helps small businesses and financial institutions attract and retain customers. The Company employs a multi-channel strategy to provide a suite of lifecycle driven solutions to its customers. In addition to its personalized printed products, the Company offers a growing suite of business services, including logo design, payroll, web design and hosting, business networking and other web-based services to help small business grow. In the financial services industry, Deluxe sells check programs and fraud prevention, customer loyalty and retention programs to help banks build lasting relationships and grow core deposits. The Company also sells personalized checks, accessories, and other services directly to consumers. For more information about Deluxe, visit http://www.deluxe.com.
SOURCE Deluxe Corporation
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Venable, Small Businesses from Across Nation, Launch Small Business Coalition for Fair Contracting
Small businesses, the backbone of the American economy, are negatively impacted by government’s new in-sourcing policy
WASHINGTON, May 7 /PRNewswire/ — Venable LLP announced today that the firm, in conjunction with a group of clients and other government contractors, is launching the Small Business Coalition for Fair Contracting in response to federal government procurement initiatives that could, if unchecked, have a significant and negative impact on the operations of small businesses working for the federal government.
Small businesses represent 99.7 percent of all businesses in the nation and received 21.5 percent of all federal prime contracting dollars in fiscal year 2008. Small businesses contracting with the federal government employ workers in every state in the nation, do work for every government agency, and provide services from cleaning offices to providing complex intelligence analysis.
“Although well intentioned, the federal government’s current in-sourcing initiative threatens to take away work from hundreds of small entrepreneurs,” said Venable partner Rob Burton, who served at the Office of Federal Procurement Policy as the nation’s top career federal procurement official.
The 2011 budget has been designed to “rebalance” the relationship between the government and federal contractors through more oversight and in-sourcing. A goal of the budget is to “decrease reliance on contract services” by using federal employees to perform services currently provided by contractors.
In line with the budget’s goals, the Office of Federal Procurement Policy recently provided detailed guidance to agencies on the types of work that should be reserved for government employees. As a result, contractors may soon see fewer business opportunities, as agencies in-source jobs that serve a “critical function” in the government.
“No one wants to be associated with a ‘non-critical’ function,” Burton said. “Many federal agencies will be tempted to ‘over classify’ jobs as ‘critical.’ Those agency choices are not victimless. Small businesses are already feeling the impact of those choices.”
According to Burton, the in-sourcing initiative has already forced small contractors across the nation to dramatically reduce the scope of their operations as their contracts are cancelled and their employees are hired into government jobs.
The Coalition represents a diverse group of companies with a common interest in ensuring that small businesses do not suffer a disproportionate loss of business as a result of the government’s in-sourcing and other policy initiatives.
“The government recognizes small contractors’ critical role in supporting the operation of the federal government and understands the importance of expanding that role,” said Burton. “The coalition will educate lawmakers and federal executives about the unintended consequences of the in-sourcing initiative, provide ideas on how to fix the process and implement fair solutions that best meet the nation’s needs, while protecting the economic viability of America’s small businesses.”
The Small Business Coalition for Fair Contracting will hold a briefing conference call on Tuesday, May 11 at 11 am (EDT). Small businesses doing business with the government are invited to participate in the call and should contact Venable for additional information. Although the call is closed to members of the media, Venable partners Rob Burton and Paul Debolt will be available to provide members of the media with commentary on the call and issues raised by the participants.
Note: An American Lawyer top 100 law firm, Venable LLP has attorneys practicing in all areas of corporate and business law, complex litigation, intellectual property and government affairs. Venable serves corporate, institutional, governmental, nonprofit and individual clients throughout the U.S. and around the world from its headquarters in Washington, D.C. and offices in California, Maryland, New York and Virginia. For more, visit www.Venable.com.
Contact: Allan Ripp 212-262-7477 arippnyc
Majority of Small Businesses Saddled With Websites That do not Meet Their Needs
Deluxe Corporation Offers Free Website Redesign and Web Hosting to Small Business with Worst Website
ST. PAUL, Minn., May 6 /PRNewswire-FirstCall/ — Many small businesses have a love-hate relationship with their websites — they love to reach new customers online, but struggle to keep the sites fresh and up-to-date. Deluxe Corporation (NYSE: DLX) is looking for those in most desperate need of a website makeover to receive complimentary website tools and services in the “I Hate My Website” contest.
Small businesses can enter at www.ihatemywebsitecontest.com until May 15, 2010. The grand prize winner will receive a free WebExpress(SM) site redesign, one year of Web hosting from Deluxe and a Gateway® Netbook LT2104u. The grand-prize package has an approximate retail value of $1,800.
“Having a solid online presence is critical to growing a business,” said Joanne McGowan, segment leader, Small Business Services at Deluxe. “Deluxe recognizes that many small business owners do not have the time or expertise to improve their websites. Our proprietary tools and services can fulfill this need, which is why we’re excited to be sponsoring the ‘I Hate My Website’ contest.”
A recent Deluxe survey found the majority of small businesses (56 percent) feel they are saddled with websites that do not meet their needs. Among the survey findings:
21 percent of respondents said that their website needs more work in terms of content and layout29 percent of respondents said their website needs an overall refresh
Deluxe’s WebExpress provides users with access to more than 5,000 professionally designed website templates, one-on-one website design, consultation with an experienced website designer, search engine optimization and e-commerce design service. Through WebExpress, businesses also receive bundled website updates and maintenance service, along with marketing applications to help them reach new customers and communicate with existing customers.
“Deluxe has spent years working closely with small businesses. We can anticipate needs and tailor our tools and services to help small business owners achieve their goals,” McGowan said. “Our WebExpress offering makes it easy for small businesses to quickly establish or grow their online presence. Business owners have access to skilled experts who can deliver a professional, custom site within 10 business days.”
More than 60 prizes will be awarded in the “I Hate My Website” contest. Fifty entrants will receive $50 DeluxeCard® Visa® gift cards and one month of free website hosting and design with the purchase of a WebExpress package. From these 50, a popular vote will determine the 10 finalists who each will win a Flip Video™ Ultra Series II Camcorder White/Silver Model U1120W. Deluxe will select the grand prize winner from the finalists.
About the Survey
Deluxe Corporation fielded an in-depth phone and online survey completed by 227 small business owner respondents through an independent research company. Complete results are available on request.
About Deluxe Corporation
Deluxe Corporation is a growth engine for small businesses and financial institutions. Through its industry-leading businesses and brands, the Company helps small businesses and financial institutions attract and retain customers. The Company employs a multi-channel strategy to provide a suite of lifecycle driven solutions to its customers. In addition to its personalized printed products, the Company offers a growing suite of business services, including logo design, payroll, web design and hosting, business networking and other web-based services to help small business grow. In the financial services industry, Deluxe sells check programs and fraud prevention, customer loyalty and retention programs to help banks build lasting relationships and grow core deposits. The Company also sells personalized checks, accessories, and other services directly to consumers. For more information about Deluxe, visit http://www.deluxe.com.
SOURCE Deluxe Corporation
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Small Business Group Bemoans Federal Intrusion on the Internet
Government Intervention Will Hurt Jobs and Small Business, Chill Investment and Slow Broadband Deployment and Adoption
WASHINGTON, May 7 /PRNewswire-USNewswire/ — Despite the fact that Congress has not given the Federal Communications Commission (FCC) authority to regulate the Internet, along with a recent court decision informing the government agency that it exceeded its regulatory boundaries in trying to do so, the FCC announced that it will move forward with intrusive and risky rules that hurt innovation, the economy and small business. According to the Small Business & Entrepreneurship Council (SBE Council), such federal government intrusion dictating how the Internet operates will suffocate innovation, chill investment, and erode U.S. competitiveness. Moreover, Internet regulation undermines two crucial goals of the Obama Administration – accelerating the pace of economic recovery, and making broadband available for every American who wants access.
Commenting on the FCC’s fixation to control the workings of the Internet where no problem exists, SBE Council President & CEO Karen Kerrigan said: “I cannot tell you how disappointed and concerned we are that the federal government has decided to intrude into an area where creativity, capital and freedom have joined to produce unprecedented gains and opportunities for the individual, society, entrepreneurs and our economy. We are particularly troubled because the FCC has not offered any compelling evidence that an ‘Open Internet’ has been compromised. In fact, the vast record accumulated by the FCC over the years proves this point: There is no problem.”
Raymond J. Keating, SBE Council’s chief economist, added: “The FCC’s drive to micromanage broadband networks is a case of irrational exuberance for government interference. While Internet providers have every incentive to serve their markets well, and clearly no market failure exists, the FCC chairman nevertheless wants government calling the shots on broadband pricing and operations. Investment and innovation will suffer accordingly, as will the entrepreneurs and small businesses that rely on and contribute to the Internet. At a time of great uncertainty regarding the economy and markets, the FCC inexplicably is creating greater uncertainty.”
As the SBE Council has argued in its comments to the FCC, certainty is needed in order for broadband providers to invest the billions upon billions needed to fully deploy broadband and maintain its complex operations and growth. Indeed, the FCC has developed a National Broadband Plan recognizing the need for massive private sector investment in order to reach its goal of making broadband available to every American who wants access. Unfortunately, the FCC’s obsession with regulation will undermine the essential goals it sets out in the National Broadband Plan, according to SBE Council.
Kerrigan continued: “Chairman Genachowski is moving full-steam ahead with a risky regulatory scheme even though the Congress has never given the Commission such authority to regulate the Internet. As consumers of broadband, and as entrepreneurs engaged in its deployment, maintenance and development; small business owners have the most to lose if intrusive new rules are enacted. That is why small business owners overwhelmingly oppose ‘net’ regulation, and we will continue to work with our supporters and small business leaders in Congress to ensure the FCC does not impose burdensome rules that disrupt innovation, service offerings, deployment as well as the Internet’s staggering progress and the opportunities it offers.”
SBE Council is the nation’s leading nonpartisan advocacy organization dedicated to protecting small business and promoting entrepreneurship. For additional information, please visit: www.sbecouncil.org.
Contact: Karen Kerrigan, Raymond Keating or Mabel Vaught , 703-242-5840, mvaught
InterCall Launches Hosted Unified Communications Geared to Small and Medium-sized Businesses
Strategic Partnership with CallTower to Deliver Services Reinforces InterCall’s Commitment to Becoming a Collaborative Solutions Provider
CHICAGO, April 26 /PRNewswire/ — InterCall, the world’s largest conferencing and collaboration services provider, today announced the launch of InterCall Hosted Unified Communications for the SMB market. The solution delivers the productivity, cost savings and enterprise-class reliability businesses are looking for in a Unified Communications solution, without expensive hardware and infrastructure investments, long and complex deployments or on-going support and upgrade concerns.
“Many small to mid-sized businesses are very interested in Unified Communications from a productivity and cost savings standpoint, but are intimidated by the prospect of hardware expenses, complicated implementations, and day-to-day management requirements,” said Bob Wise, executive vice president of Unified Communications Services, InterCall. “This solution provides cost-effective, easy-to-deploy and scalable Unified Communications services that meet the needs of that market.”
InterCall Hosted Unified Communications includes central hosting and management of:
Microsoft® ExchangeOffice CommunicatorSharePointActive DirectoryCisco UC Manager
The solution will be bundled with InterCall’s award-winning audio conferencing and custom options will be available. As a fully hosted solution, customers can leverage all the benefits of Unified Communications without upfront capital expenditures and no need to hire dedicated on-site staff to maintain the system.
To deliver the offering, InterCall has partnered with CallTower, a leading provider of Unified Communications as a Service (UCaaS) and recognized in Gartner’s 2009 UCaaS Magic Quadrant as a visionary in the Unified Communications services market. The combination of InterCall’s best-in-class conferencing services along with CallTower’s technology platform provides customers with an unparalleled service and support experience, as well as the benefit of having a single vendor to manage and a single invoice for their monthly communications spend.
“We were wholly impressed by InterCall’s Unified Communications vision,” said Bob Barnes, executive vice president of sales, marketing and business development at CallTower. “Their long history of success, their ability and desire to find the best available partners, and their commitment to bring them to market in an integrated fashion is what makes us strongly believe in the partnership.”
InterCall customers will also have access to expert technology consultants, thanks to the recent acquisition of SKT Business Communication Solutions by West Corporation (InterCall and SKT BCS are a part of West Corporation). SKT BCS is a leading professional services, systems integration and information technology firm specializing in the consulting, project management and implementation of Unified Communications and IP telephony, legacy telecommunications systems, virtualization and Communications Enabled Business Processes.
Both the CallTower partnership and SKT relationship are key pieces of InterCall’s Unified Communications strategy, reflecting the transition from being the world’s largest conferencing provider to becoming the leading provider of collaborative business solutions.
“We’ve built our services out of the desire to meet customer needs, so our move from being the number one conferencing provider to the number one collaboration provider is a natural transition that reflects where the market is going,” stated Wise. “This partnership will ensure our continued delivery of best-of-breed services and easy-to-use solutions.”
About InterCall
InterCall, a subsidiary of West Corporation, is the largest service provider in the world specializing in conference communications. Founded in 1991, InterCall helps people and companies are more productive by providing advanced audio, event, Web and video conferencing solutions that are easy-to-use and save them time and money. Along with a team of over 950 Meeting Consultants, the company employs more than 1,600 operators, customer service representatives, call supervisors, accounting, marketing and IT professionals. InterCall’s strong U.S. presence, which includes 10 call centers and 35 sales offices, is bolstered by a global reach that extends to Canada, Mexico, Latin America, the Caribbean, the United Kingdom, Ireland, France, Germany, Australia, New Zealand, China, India, Hong Kong, Singapore and Japan. For more information, please visit www.intercall.com.
About CallTower, Inc.
CallTower (www.calltower.com) transforms a company’s voice and data communications into a strategic business tool that provides a competitive advantage in today’s market. CallTower’s Unified Communications as a Service (UCaaS) provides growing companies with enterprise-class reliability, a single point of support, productivity-enhancing features and 24/7 service for a fixed monthly fee. CallTower’s communication services are based on the Cisco® CallManager, Microsoft Office Communications Server, Microsoft® Exchange Server and Microsoft® Sharepoint Server powered by the proprietary CallTower vXML VoiceCube voice messaging platform.
About West Corporation
West Corporation is a leading provider of technology-driven, voice-oriented solutions. West offers its clients a broad range of communications and infrastructure management solutions that help them manage or support critical communications. West’s customer contact solutions and conferencing services are designed to improve its clients’ cost structure and provide reliable, high-quality services. West also provides mission-critical services, such as public safety and emergency communications.
Founded in 1986 and headquartered in Omaha, Nebraska, West serves Fortune 1000 companies and other clients in a variety of industries, including telecommunications, banking, retail, financial, technology and healthcare. West has sales and operations in the United States, Canada, Europe, the Middle East, Asia Pacific and Latin America. For more information on West Corporation, please call 1-800-841-9000 or visit www.west.com.
SOURCE InterCall
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T4 Teaming Seminar Provides Opportunities for Large & Small Business Plus Product & Service Providers
T4 Teaming Seminar Provides Opportunities for Large & Small Business Plus Product & Service Providers — RESTON, Va., April 26 /PRNewswire/ — /
Landrieu Chairs Hearing to Discuss Efforts to Expand Broadband to Underserved Small Businesses
WASHINGTON, April 27 /PRNewswire-USNewswire/ — United States Senator Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, today convened a hearing entitled “Connecting Main Street to the World: Federal Efforts to Expand Small Business Internet Access.” The hearing focused on implementing the Federal Communications Commission’s (FCC) National Broadband Plan and ongoing broadband grant opportunities made available from the American Recovery and Reinvestment Act (ARRA).
“In the same way that our interstate highway system connected America by reducing travel time and facilitating commerce, broadband has minimized the barriers that separate small businesses from geographically distant consumers,” Sen. Landrieu said. “Broadband has not only impacted small high-tech businesses, this technology has changed the traditional business models that all small business owners once relied on. As such, it is particularly important that small businesses have access to broadband technology, so that they can compete on a global level. Expanding broadband access and adoption is not just the FCC’s job; we all have a role to play. We have some challenges ahead, and it is important that we understand how to best work together to implement our National Broadband Plan to benefit small businesses, particularly in rural, underserved and unserved areas of the nation.”
According to reports from the FCC, businesses with 25 employees or less pay two times more per employee for broadband than those with more than 25 employees.
“While we must expand access to these services, at the same time, we must ensure broadband is affordable for these entrepreneurs,” Landrieu said. “If our goal is to allow these small firms to grow, we cannot limit their growth by over-charging for services. Business could instead use this capital to hire new workers or upgrade older equipment.”
In a February letter to FCC Chairman Julius Genachowski, Senator Landrieu cited several policy recommendations that were included in the National Broadband Plan, including:
Creation of SBA Broadband and Emerging IT Coordinator;
Improvement of Broadband Counseling Among SBA Resource Partners;
Expanding the reach of Entrepreneurial Development Service Via Broadband and Online Applications;
Creation of Public-Private Partnership on Technology Training for Small Disadvantaged Businesses; and
Creation of Pilot Entrepreneurial Development Programs through the Economic Development Administration (EDA).
A copy of the letter can be viewed by clicking here.
During the hearing, Senator Landrieu announced the release of a Federal guide for small businesses interested in applying for loans and grants, to connect small entities with valuable Federal resources. A complete copy of the guide can be viewed by clicking here.
Additionally, Senator Landrieu announced that the Small Business Committee will hold a hearing in the coming weeks with small business owners to discuss the availability and affordability of broadband Internet access.
To view the complete and to view written testimony from all the witnesses, please click here.
SOURCE U.S. Senate Committee on Small Business & Entrepreneurship
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