NORFOLK
A local employment-assistance company that the state has sued, claiming it deceptively took money from job-seekers for services it failed to provide, appears to have shut down its office on North Military Highway.
Virginia Employment Services Inc. also has responded to the state's charges against it, denying that it engaged in any fraudulent practices.
Virginia Attorney General Bill Mims filed suit against VES and two other companies, New Beginnings Employment Inc. and Virginia Personnel Inc., in late July in Norfolk Circuit Court. He charged the companies with advertising jobs that didn't exist and asking customers for a $365 "membership" fee while guaranteeing that they would find work.
The company told customers that it set up interviews with local employers, but many of those businesses said they never heard of VES and had no knowledge of any referrals or appointments for those job candidates, according to the lawsuit and several local consumers who have complained about VES.
In its answer to the lawsuit filed Friday afternoon, VES contends that those allegations "mischaracterize the nature" of its services and are "inconsistent" with its business practices.
"Any individuals who contracted for services to be rendered by the defendant were specifically told and notified in writing that they were not guaranteed employment," wrote J. Roger Griffin Jr., the Virginia Beach attorney representing VES, in the company's answer. "Furthermore, the defendant did not promise jobs as alleged in the complaint."
In the filing, Griffin described VES as the only entity still in business among the three named in the lawsuit. All three companies were owned or run by James M. O'Leary Jr. and Karla L. O'Leary, according to the state's suit.
It's unclear now whether VES is still operating.
Behind its glass front door inside an office building at 870 N. Military Hwy., rooms looked empty and dark Monday. A small sign on the door directed "current Virginia Employment Services members" to call (757) 478-2232.
A message left by The Virginian-Pilot at that number was not returned. Griffin didn't return a phone call late Monday.
"This does not end the lawsuit filed by this office on behalf of consumers," said David Clementson, a spokesman for the attorney general's office, referring to the possible shutdown of the company. "While it is welcome news that they are apparently ceasing operations, this office is seeking far more."
The state is asking for full refunds for all consumers who paid the companies for services but never received their help getting jobs. The suit also seeks to stop the companies' illegal practices and force them to reimburse any overdraft or credit card fees that resulted from them taking money from customers' accounts.
According to the lawsuit, VES and the other companies took clients' credit and debit cards, agreeing sometimes to take only a partial down payment for the membership fee but withdrawing the full amount that same day or soon after. That caused some consumers to incur overdraft fees or other bank charges, the state alleges.
"Terms of any installment plans were set forth in writing," VES wrote in its response to the suit. Some consumers complained about unauthorized withdrawals "even when those same individuals gave the defendant written authorization for those same charges," its answer reads.
VES also denies that it refused to pay "any refund that was rightfully owed."
Clementson said VES customers should continue to report the company's "fraudulent activities" to the state Office of Consumer Affairs.
Pilot writer Josh Brown contributed to this report.
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com