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Pete
09-26-2014, 10:19 AM
TEEMCO LLC, an oilfield engineering company based in the Oklahoma City suburb of Edmond, thrust themselves into the spotlight over the last year, signing huge endorsement deals with the Oklahoma City Thunder, The University of Oklahoma, Oklahoma State University, and local CBS television affiliate KWTV, among others.

TEEMCO made another big splash when they announced plans to purchase and renovate the historic Gold Dome building in central Oklahoma City, with their CEO Greg Lorson comparing the building's positive electromagnetic energy to golf bracelets and revealing plans that included massive aquariums and the world's largest salt crystal lamp.

But as these audacious deals were being signed and promoted, TEEMCO and it's chief executive were mired in legal and financial issues, and the troubles appear to be quickly escalating.

CEO has checkered past
Gregory Damien Lorson, 57, is the founder and Chief Executive Officer of TEEMCO and has recently been portrayed by several publications and the company's press releases as a visionary leader of a successful, rapidly growing company.

In a December 2013 “Executive Q&A” published in The Oklahoman, Lorson was quoted extensively on his personal background and professional accomplishments, and said, “For 25 years, I was an investment banker and bought and ran companies”.

Yet court and prison records tell a very different story.


http://www.okctalk.com/images/pete/teemco6a.jpg

Lorson has a long criminal history including two separate felony convictions for financial fraud and has been successfully sued over 30 times in Oklahoma alone, starting in the mid-1980's and with several cases still on-going.

According to the Oklahoma Department of Corrections and legal records, in 1990 Tulsa courts found Lorson guilty on two counts of obtaining cash by false representation and was imprisoned for the crimes until late 1992.

In 1994, court documents show Lorson started work for a financial services company in Tulsa which led to a 1998 conviction and 70 month sentence in federal prison for conspiracy, mail fraud, wire fraud and money laundering. The 17-count indictment alleges that over a two year period Lorson and a co-defendant settled and collected on loans for the government's Resolution Trust Corporation and others, then diverted money to their own out-of-state bank account. Federal Bureau of Prisons records indicate Lorson was released from incarceration in late 2003.

In 2004, legal filings show that Lorson became involved in a real estate venture near Guthrie, Oklahoma which soon failed and resulted in foreclosures, multiple lawsuits and substantial judgments against him. Related legal matters are still pending in Logan County court.

Questionable credentials
Lorson's self-proclaimed academic achievements seem to reflect several inaccuracies.

TEEMCO's website features this in a bio about Lorson: “His undergraduate study was in finance at the University of Oklahoma, graduate studies in business & anthropology at Harvard, and holds a postgraduate certificate in Business Administration from Edinburgh Graduate Business School.”

In the Oklahoman's Executive Q&A, Lorson's education is listed as "University of Oklahoma, bachelor's in finance". Lorson's LinkedIn profile claims a Bachelor of Science degree from the same school, with attendance dates from 1977 to 1981.

However, documents obtained from the University of Oklahoma indicate "No Degree -- Enrollment Only" from 1977 to 1982.

It is unclear how Lorson conducted "graduate studies" and achieved a "postgraduate certificate" without having earned an undergraduate degree.

Lorson's LinkedIn profile states "Harvard University, 1995-1998", yet according to court documents he was working in Tulsa throughout this time and was in fact under indictment in September of 1997 and convicted in March 1998. The same profile lists "Edinburgh Graduate Business School, 2000 to 2002", while federal prison records show he was incarcerated during this entire time.

Research reveals that both schools offer a variety of programs, including on-line courses open to all. However, it is not known what specific options were available during the time periods claimed by Lorson.

TEEMCO assets in dispute
Lorson has stated in published interviews that in 2009 he started working for 8-employee Wellstar International, the predecessor to TEEMCO.

On 5/13/10, records indicate Lorson formed TEEMCO LLC and on 6/4/10 acquired Wellstar's operations and signed a purchase agreement for $130,000, an amount which included fixtures and equipment. TEEMCO continued to operate in the established Wellstar offices at 1600 E. 19th Street in Edmond, which is still listed as the company headquarters.


http://www.okctalk.com/images/pete/teemco1a.jpg

Almost immediately, the terms of the Wellstar deal were in dispute and by September of 2010 Lorson had allegedly stopped making payments. A new agreement was subsequently formed in April of 2011 but by May of 2012, a lawsuit claims Lorson stopped payment on two checks and made no further remittance. The former owners of Wellstar are now suing TEEMCO and Lorson for millions, and the case is still pending.

Court filings also show that within two weeks of forming TEEMCO, Lorson entered into a lease agreement for a property on N. Kelly in Edmond but never occupied the space or paid rent. The landlord filed suit and won judgment against Lorson, and currently has a pending appeal to increase the amount of the award.

Suspect regional offices
As a part of this investigation, OKCTalk spoke to several former TEEMCO employees.

Acting on a tip that the purported TEEMCO regional offices were false fronts, we were able to confirm that all the locations touted on their website and marketing materials are in fact either executive suites that promote inexpensive phone answering in a company's name (Houston, Washington D.C. and Pittsburgh, PA), or in the case of Pittsburgh, KS, a residential duplex.


http://www.okctalk.com/images/pete/teemco2a.jpg

Greg Lorson told the Edmond Business Times in a 4/13/13 article, “Our regional offices are there to serve our clients locally.” Yet sources tell us that TEEMCO employees have never occupied these offices and they are nothing more than a phone number.

A recent TEEMCO publication advertises three more locations without addresses: Golden, CO; London, GB; and Panama City, PA [sic].

Gold Dome stalls
In the fall of 2012, local investor David Box purchased the historic Gold Dome building at 1112 N.W. 23rd in Oklahoma City after it had been seized through foreclosure. The iconic geodesic dome structure was built in 1958 and is on the National Register of Historic Places.

Box had filed for a demolition permit in March of 2013, as previous owners and potential buyers had cited high renovation costs and the impractical nature of the unique building.

Just three months later, TEEMCO made headlines when the little-known company announced their bold plans to purchase, renovate and occupy the building.

A large press conference was held inside the building, Box called TEEMCO "the perfect buyer” and the company promoted itself as the building's savior, with plans to move it's ostensibly rapidly growing enterprise from Edmond.


http://www.okctalk.com/images/pete/teemco5a.jpg

Soon thereafter, the outside of the dome was painted and TEEMCO signs went up; the building seemed to be coming back to life.

But sometime after the first of the year, work stopped. Pictures taken this week show overgrown weeds, incomplete improvements and little progress apart from the sign and paint. TEEMCO had previously announced their intention to occupy in early 2014.


http://www.okctalk.com/images/pete/teemco4a.jpg

The Oklahoma County Assessor website confirms ownership of the property was never transferred to TEEMCO and that it is still in the hands of David Box. A representative from Mr. Box's office referred all questions about TEEMCO's involvement with the Gold Dome back to Greg Lorson.

Huge endorsements
On the heels of the high-profile deal for the Gold Dome, TEEMCO became an almost inescapable presence throughout Oklahoma.

The inside cover of TEEMCO's self-published Summer 2014 edition of Service and Press Management Magazine shows a letter of commendation signed by Oklahoma governor Mary Fallin which sits opposite an introductory passage from Lorson. In that same publication, TEEMCO claims a $12 million budget.


http://www.okctalk.com/images/pete/teemco7a.jpg

In March of this year, TEEMCO announced two huge endorsement deals: one for the Oklahoma City Thunder of the NBA and another with Learfield Sports, which brokers sponsorships for many major universities, and in this particular case The University of Oklahoma, Oklahoma State University and Tulsa University.

Both deals were trumpeted by TEEMCO and their beneficiaries through press releases. The Thunder announced that their partnership included naming rights to the TEEMCO Commons hospitality space on the Cox Club Level at Chesapeake Energy Arena. Learfield revealed the deal with the state's three largest college athletic departments would span five years.

Another article soon appeared in The Oklahoman, where Lorson spoke of using the sponsorships and the Gold Dome to “get young people excited about careers in engineering and the energy industry in order to meet the nation’s need for energy independence in the 21st century”.

On April 17th, TEEMCO hosted a large fund-raising event called Uncorked within the Gold Dome.

A month later, white TEEMCO t-shirts were draped over each of Chesapeake Arena's 18,200 seats for the Thunder's playoff game with the Los Angeles Clippers.


http://www.okctalk.com/images/pete/teemco3a.jpg

Two more major endorsements in Oklahoma City quickly followed: one for music events at the downtown Myriad Gardens and another with Remington Park racetrack.

CFO leaves amid allegations
OKCTalk has learned Lorson has told creditors and employees that former TEEMCO Chief Financial Officer Michael S. Dixon embezzled company funds and was fired for the same in June. However, no charges appear to have been filed in this matter.

Dixon's LinkedIn profile verifies he left TEEMCO in June, 2014. It also indicates that he started at TEEMCO's predecessor Wellstar International about the same time as Lorson.

Further investigation has revealed another parallel to Lorson: Dixon has spent substantial time in federal prison for fraud.

In September 2000, Dixon pleaded guilty to nine criminal counts of wire fraud, mail fraud and money laundering before a Kansas district judge. Dixon had been president of South Kansas Title in Wichita and admitted in federal court that he devised a scheme to take more than a million dollars from south-central Kansas home mortgage holders and real estate investors.

Prison records show Dixon was discharged from incarceration in April of 2004, which means his sentence coincided with Lorson's for the majority of the time each man served.

OKCTalk was told by several former employees that CEO Lorson and ex-CFO Dixon met while behind bars. We were also told that at least one other TEEMCO employee came to meet Lorson in the same way, and were able to confirm an overlapping federal prison sentence of a long-time employee who has recently left the company.


Unpaid bills, near eviction
In addition to the issues at the Gold Dome, OKCTalk has learned that TEEMCO is currently more than 60 days past due on several debts.

At least three of their endorsement contracts are in serious arrears with two never receiving any payment whatsoever.

Multiple creditors report that after repeated broken promises to pay, TEEMCO will no longer return their phone calls.

Court records show that on September 7th, 2014, Lorson was served with eviction papers for warehouse space TEEMCO was renting on N. Santa Fe Avenue in Oklahoma City. That matter was later dismissed when neither party showed for a hearing.


Lavish spending
A reliable source told OKCTalk that the cost to TEEMCO for one endorsement deal alone is over $600,000.

Lorson has been recently seen driving a late model Jaguar. A June photo of his residence shows a black Jaguar XJ in the driveway, a car valued between $75,000 and $100,000. There is also a late model black Land Rover in that same driveway photo. According to records, Lorson was ticketed early this year while driving a black Land Rover. And in 2011, Lorson's then 16 year-old daughter who listed Lorson's home address as her own, was cited while driving a Mercedes Benz.

Records also indicate that TEEMCO purchased a 58 foot Hatteras yacht valued at $200,000 to $300,000 and that the boat is still registered in the company name. A newsletter for a marina on Lake Texoma, Texas shows TEEMCO LLC is leasing two boat slips.


http://www.okctalk.com/images/pete/teemco8.jpg

Social media reveals a TEEMCO private suite at Chesapeake Arena as well as courtside tickets for Thunder games, several extravagant company parties, and a Hummer vehicle with TEEMCO logo and contact information.


OKCTalk's investigation of TEEMCO is on-going and updates will be provided as more information becomes available.



Related Information
3/13/98: “Two Guilty of Fraud (http://www.tulsaworld.com/archives/two-guilty-of-fraud/article_e76ee566-e969-5362-8f58-b52a5c9d7b13.html)”, Tulsa World

7/16/98: “Tulsan faces 70-month term for fraud (http://www.tulsaworld.com/archives/tulsan-faces--month-term-for-fraud/article_714f9871-4cd4-50a3-8fab-c55c272b7bb3.html)”, Tulsa World

Lorson's failed appeal of prison sentence (http://federal-circuits.vlex.com/vid/u-s-v-lorson-18486026)

9/26/00: "TITLE COMPANY OWNER ADMITS CRIMES (http://www.okctalk.com/images/pete/dixonarticle.pdf)", Wichita Eagle

6/20/13: "Landmark Gold Dome in Oklahoma City set to be sold, preserved (http://newsok.com/landmark-gold-dome-in-oklahoma-city-set-to-be-sold-preserved/article/3854798)”, The Oklahoman

6/21/13: “New Gold Dome owners prepared to do 'what it takes' to renovate OKC landmark (http://newsok.com/new-gold-dome-owners-prepared-to-do-what-it-takes-to-renovate-okc-landmark/article/3855200)”, The Oklahoman

12/22/13: "Executive Q&A: Consulting company chief promotes positive energy, environmental harmony (http://newsok.com/executive-qa-consulting-company-chief-promotes-positive-energy-environmental-harmony/article/3916659)", The Oklahoman

3/13/13: "Thunder Partners with TEEMCO (http://www.nba.com/thunder/corporatenews/release_teemco_140313)", Official website of the NBA's Oklahoma City Thunder

3/30/13: "TEEMCO calls new college sports agreement a victory (http://newsok.com/teemco-calls-new-college-sports-agreement-a-victory/article/3948362)", The Oklahoman

3/31/13: "TEEMCO UNDERWRITES MAJOR SPONSORSHIP FOR OKLAHOMA, TULSA AND OKLAHOMA STATE UNIVERSITIES (http://learfieldsports.com/2014/03/teemco-underwrites-major-sponsorship-for-oklahoma-tulsa-and-oklahoma-state-universities/)", Learfield Sports website

4/1713: "Outlook 2014: TEEMCO recruits next generation of energy industry with several tools (http://newsok.com/teemco-calls-new-college-sports-agreement-a-victory/article/3948362)", The Oklahoman

TEEMCO's Services and Press Magazine (http://www.joomag.com/magazine/teemco-services-ampamp-press-magazine-summer-2014/0246019001407182718?short), Summer 2014

http://www.theteemco.com/

Pete
10-02-2014, 08:52 AM
I'm placing this article in the Development forum because it directly pertains to the Gold Dome.

gopokes88
10-02-2014, 09:33 AM
Dang. That's intense. This will really crank the heat up on them. I've seen Teemco's stuff everywhere but never really knew what they did.

Bellaboo
10-02-2014, 09:38 AM
Dauum... Crooked astards...

DoctorTaco
10-02-2014, 09:44 AM
Amazing work Pete.

HangryHippo
10-02-2014, 09:58 AM
There was a poster in Steve's OKCCentral chat a long while back that was concerned about Teemco when they were first looking around the Gold Dome. Based on his pointed questions, I got the feeling something was amiss back then. Great work here, Pete.

adaniel
10-02-2014, 10:02 AM
Great work, but I must say I'm not surprised this is coming out...this is pretty much an open secret in the industry.

TEEMCO was more or less a competitor of my previous employer. We quickly learned they were little more than a paper tiger. I did wonder how they were funding themselves when for the life of me I have never known anyone to use their services extensively.

turnpup
10-02-2014, 10:02 AM
Yes, very well done, Pete! OKCTalk is now going to be a source for investigative reporting. Love it!

Chitty
10-02-2014, 10:11 AM
Great work Pete, keep it up.

Jersey Boss
10-02-2014, 10:36 AM
Kudos. That is a fine piece of investigative reporting.

Richard at Remax
10-02-2014, 10:55 AM
They sound like a bunch of $30K millionaires

CuatrodeMayo
10-02-2014, 10:56 AM
Well done, Pete! It's a good thing you're in California =)

I've always had a sense of uncomfortableness about TEEMCO taking possession of the Gold Dome, but I never could put a finger on why. The shoddy nature of the renovations plus the tacky sign and Christmas decorations also gave me a weird feeling. Something was "off" but I have no idea what/why.

It's good to know my intuition is correct.

OKCisOK4me
10-02-2014, 11:05 AM
In this instance there is an I in Teem and it stands for Indictment... geez!

metro
10-02-2014, 11:08 AM
Amazing work Pete.


Yes, very well done, Pete! OKCTalk is now going to be a source for investigative reporting. Love it!


Great work Pete, keep it up.

This! Great work Pete! I've asked some pointed questions about them on this forum from time to time, as it seemed fishy from the start, especially the work around the Gold Dome and the overnight sponsorships of this little known Oklahoma-based company and then act like they're Devon/CHK overnight. Someone correct me if I'm wrong, but at first didn't they act as if they were a Houston company re-locating to OKC?

Of Sound Mind
10-02-2014, 11:20 AM
Let me add my kudos as well, Pete. Not much more that I can say that others haven't. As a former journalist, I can only add that this is absolutely excellent work and an example of want journalism is supposed to be (but often can't be for the sake of the bottom line).

zookeeper
10-02-2014, 11:42 AM
Just to echo what others have said. Wow - eye opening. Excellent job, Pete!

soonerguru
10-02-2014, 12:45 PM
I'm placing this article in the Development forum because it directly pertains to the Gold Dome.

Wow! Great work, Pete. This is extremely thorough.

David
10-02-2014, 01:36 PM
So, does this mean the Gold Dome is likely to be back in the position of being up for demolition?

bchris02
10-02-2014, 02:04 PM
So, does this mean the Gold Dome is likely to be back in the position of being up for demolition?

Hopefully not. I have never understood why so many developers are licking their chops to demolish that historic landmark. It should be turned into something the entire community can enjoy.

bradh
10-02-2014, 02:08 PM
always be wary of those who believe in magic powers of gold balance bracelets or power balance bands

Urban Pioneer
10-02-2014, 03:22 PM
Wow. Just wow. Great work Pete! That is impressive journalism.

LuccaBrasi
10-02-2014, 06:00 PM
Wow! Great work, Pete. This is extremely thorough.

Ditto up and down the board....unbelievable effort nailing this down. Great work!

NoOkie
10-02-2014, 08:48 PM
My wife worked for them for a couple of years. It was pretty insane, and stressful. Lorson seemed really...weird. Egotistical, self-aggrandizing. Not-very-subtle racist jokes in a power point presentation(To your employees and all their guests). The 20 year old girlfriend was a bit creepy, too.

I had to sit through their Christmas party/dinner/whatever. It was full of the most self-aggrandizing bull**** I've heard outside of a political rally. She still gets some messages from her former co-workers. One of them said paychecks started bouncing a few months ago and that department that wrote the actual environmental spill plans(Their primary product) was entirely laid off. At one point, we were invited to the yacht on Texoma(Some big departmental thing). We declined,

soonerguru
10-02-2014, 10:30 PM
TEEMCO has received a lot of very positive press from the Oklahoman.

hewi
10-02-2014, 10:46 PM
Yes, very well done, Pete! OKCTalk is now going to be a source for investigative reporting. Love it! Agreed. Great reporting sir.

JohnH_in_OKC
10-03-2014, 05:35 AM
This thread should be award winning journalism. It wins my award for a top notch investigation. Congratulations, Pete, for your hard work.

bombermwc
10-03-2014, 07:34 AM
WOW, I still can't believe all of it! Pete, amazing work there. If there is such thing as a Board at Teemco, surely they would toss him after learning about all of this and then how did they not know!? If someone doesn't run this story in mainstream, they are missing out on a MAJOR piece! Great job!

Pete
10-03-2014, 08:27 AM
WOW, I still can't believe all of it! Pete, amazing work there. If there is such thing as a Board at Teemco, surely they would toss him after learning about all of this and then how did they not know!?

TEEMCO is an LLC that operates more or less like s sole proprietorship.

As such, there is no board or real oversight.

I've seen them list a "board of advisers" but those are usually just friends without any power or authority.

Pete
10-03-2014, 08:57 AM
Not many people understand what this company does -- I never did until I started researching this story.

From what I've learned they perform two major categories of services to oilfield companies: 1) compliance consulting and 2) remediation.

It terms of compliance, everyone operating a drilling rig is required to comply with many regulations, including those that concern the environment. "Spill plans" were mentioned up-thread and that seems to be (or have been) one of the biggest parts of their business, where they basically take a stock plan and customize it for each client. Basically, it's a plan they can keep on file in case there is a spill at the site. I was told that they charge about $15,000 to $20,000 for these plans, so not a ton of money.

The remediation piece involves much more money both in terms of revenue and expense. I know in one case they sold a contract for "flowback" -- cleanup of fluids from the fracking process -- that would have been for millions over several years, but had no equipment to provide the service. So, they partnered in West Texas someone who already had the equipment, but things fell apart from there.


I would like to say more about all this but I'm being very careful to only post/publish what I can document and verify.

I hope to be able to share more in the near future.

RadicalModerate
10-03-2014, 10:50 AM
Very interesting article, Pete. Very sad, yet interesting.
Now I'm a bit concerned about The Gold Dome again.

Not to nag . . . Yet, this volume might help to put current events into perspective:
http://c745.r45.cf2.rackcdn.com/img/2009/the_mark_inside.jpg

litt
10-05-2014, 07:33 AM
Not many people understand what this company does -- I never did until I started researching this story.

From what I've learned they perform two major categories of services to oilfield companies: 1) compliance consulting and 2) remediation.

It terms of compliance, everyone operating a drilling rig is required to comply with many regulations, including those that concern the environment. "Spill plans" were mentioned up-thread and that seems to be (or have been) one of the biggest parts of their business, where they basically take a stock plan and customize it for each client. Basically, it's a plan they can keep on file in case there is a spill at the site. I was told that they charge about $15,000 to $20,000 for these plans, so not a ton of money.

The remediation piece involves much more money both in terms of revenue and expense. I know in one case they sold a contract for "flowback" -- cleanup of fluids from the fracking process -- that would have been for millions over several years, but had no equipment to provide the service. So, they partnered in West Texas someone who already had the equipment, but things fell apart from there.


I would like to say more about all this but I'm being very careful to only post/publish what I can document and verify.

I hope to be able to share more in the near future.

pete,

i have been in the same business as teemco for 7 1/2 years. there are ALOT of companies like theirs in this profession. as far as i'm concerned, the couple that sold the business to them isn't any better, either. it's nothing short of shocking to me that teemco has even gotten this far with their business practices. i'm amazed that they've gotten the positive press they have over the years. it's about time someone did an article on these guys. they MORE than deserve it. i would also say that ANYone that pays 15-20K for a spill plan has their head where the sun doesn't shine. that's WAY WAY WAY more than they should. even the most expensive jobs that i've done aren't ANYwhere near that price. not even beginning.

again, great work, pete. this article nailed it on these guys. i wonder what the over/under is on channel 9 removing them from their "teemco cam" stuff is?

NoOkie
10-05-2014, 08:45 AM
pete,

i have been in the same business as teemco for 7 1/2 years. there are ALOT of companies like theirs in this profession. as far as i'm concerned, the couple that sold the business to them isn't any better, either. it's nothing short of shocking to me that teemco has even gotten this far with their business practices. i'm amazed that they've gotten the positive press they have over the years. it's about time someone did an article on these guys. they MORE than deserve it. i would also say that ANYone that pays 15-20K for a spill plan has their head where the sun doesn't shine. that's WAY WAY WAY more than they should. even the most expensive jobs that i've done aren't ANYwhere near that price. not even beginning.

again, great work, pete. this article nailed it on these guys. i wonder what the over/under is on channel 9 removing them from their "teemco cam" stuff is?

I think the deal may have just expired. They started doing it about a year ago. And if they blew all their money and laid off a bunch of people, they may not be able to afford re-sponsoring it.

Pete
10-05-2014, 10:25 AM
Actually, I just learned from someone who works for Channel 9 that they are now using a collection agency to try and get money owed from TEEMCO.

TEEMCO was behind on a bunch of bills when they signed new endorsement deals in July.

CCOKC
10-05-2014, 10:29 AM
I heard on of their endorsement spots while listening to the OSU game on the radio yesterday. Took me aback a little.

Pete
10-05-2014, 10:30 AM
I heard on of their endorsement spots while listening to the OSU game on the radio yesterday. Took me aback a little.

They just signed those deals this spring.

Pete
10-06-2014, 02:53 PM
From Brianna Bailey's Twitter account (https://twitter.com/briannabailey80); says there is a broken window at the Gold Dome as well:

https://pbs.twimg.com/media/BzR4dgXIQAAhOMe.jpg:large

Pete
10-06-2014, 05:09 PM
The little video blurb they do on NewsOK said that Brianna Bailey is doing a story on how financial troubles at TEEMCO has "prevented the sale of the building".

I'm sure it will be posted later tonight.

ljbab728
10-06-2014, 09:42 PM
Brianna's article.

http://www.oklahoman.com/article/5349252?embargo=1


Work on Oklahoma City’s iconic Gold Dome building has been stalled by financial problems at the Edmond environmental engineering company with plans to renovate the local landmark at NW 23 and Classen.


Edmond-based TEEMCO LLC. CEO Greg Lorson confirmed that the environmental company was experiencing “financial stress” after internal problems, he said in a phone interview.

Lorson said that while renovation has taken longer and cost more than originally anticipated, the company still plans to move into the building in November.

Lorson said the company is under financial stress after he fired TEEMCO’s Chief Financial Officer Michael S. Dixon in June. Although Lorson claims Dixon was fired due to “major dysfunction in his position,” Dixon disputes Lorson’s claims and says he resigned over disagreements about the company’s finances.

TEEMCO’s financial problems were first reported by the website Okctalk.com.


There certainly can't be any question about proper credit given in this.

soonerguru
10-07-2014, 12:33 AM
Brianna's article.

http://www.oklahoman.com/article/5349252?embargo=1


There certainly can't be any question about proper credit given in this.

Pay wall. Thud.

TheTravellers
10-08-2014, 12:53 PM
Pay wall. Thud.

Oklahoma City landmark Gold Dome saga continues with financial problems, conflicting claims from buyer | News OK (http://newsok.com/oklahoma-city-landmark-gold-dome-saga-continues-with-financial-problems-conflicting-claims-from-buyer/article/5349252)

Pete
10-08-2014, 01:06 PM
There certainly can't be any question about proper credit given in this.

They only say "financial problems were first reported" but not all the other things they mentioned in this article, such as the Gold Dome being stalled and the prison records of the two main TEEMCO executives.

Also, the advance blurb on the NewsOK website -- both the graphic and the words spoken by Dave Morris -- said "Financial Problems Halt Purchase of Gold Dome", but the article didn't say that at all.

There is much more to come on all this; still conducting interviews and research.

http://www.okctalk.com/images/pete/newsokdome.jpg

Urbanized
10-08-2014, 02:24 PM
There has been a little activity around the place in the last 2-3 days; mostly grounds maintenance, which had been ignored for a while.

Pete
10-08-2014, 02:37 PM
Reading back through the Gold Dome thread, posters reported all activity stopping in February.

Do they still have Christmas decorations up on the light poles in the parking lot? I know they did in April.

Urbanized
10-08-2014, 02:46 PM
I don't think so. I'll look later.

Canoe
10-08-2014, 02:49 PM
Reading back through the Gold Dome thread, posters reported all activity stopping in February.

Do they still have Christmas decorations up on the light poles in the parking lot? I know they did in April.

Yes just on some of the poles.

ultimatesooner
10-08-2014, 03:27 PM
great work Pete, i need to hit the powerball so i can buy that yacht @ Texoma when it goes up for auction :)

Plutonic Panda
10-10-2014, 12:31 PM
10/9/2014

These stars were still up

https://farm4.staticflickr.com/3948/15493800225_5eeedef6ef_b.jpg

macfoucin
10-11-2014, 10:31 AM
Heard a Teemco commercial on 1520, just now, during the OU Texas game.

Pete
10-13-2014, 09:08 AM
Earlier this month, OKCTalk.com posted a story about Edmond-based TEEMCO, a company which had received a great deal of positive exposure and press where bold claims of the company and its chief executive were published without scrutiny or verification.

We documented in great detail key information which had not been previously reported, including the extensive criminal histories of its two top executives, dubious academic claims, concerning business activities, stalled work on its proposed new headquarters and extravagant spending. See our exclusive report: “Troubled times at TEEMCO (http://www.okctalk.com/showwiki.php?title=Exclusive+Report:+Troubled+time s+at+TEEMCO)”.

Now, our continuing investigation has uncovered something even more serious: Allegations that TEEMCO has engaged in practices whereby millions in federal taxes have gone purposely unreported and unpaid.

Unpaid employment taxes
OKCTalk was told by those with direct access to the TEEMCO books that the company has in fact never paid the federal taxes they have been withholding from employees since the company was formed in 2010, a cumulative amount of nearly three million dollars.

Through the normal course of business, TEEMCO – like most companies with full-time employees – issues paychecks which reflect government-mandated deductions for various state and federal taxes. Laws dictate that those funds be held in trust for the government, and are often referred to as “trust fund taxes”. There are specific rules that require expedient deposit to the Internal Revenue Service and other appropriate agencies on a strict schedule. It is important to note that TEEMCO processes all payroll internally rather than using an outside service.

However, OKCTalk has learned that over its entire four years of operation, TEEMCO has yet to forward a penny of the federal trust fund taxes and has instead kept the money for its own use.

Furthermore, employees tell us Chief Executive Officer Greg Lorson gave specific instructions to not pay these taxes or to set aside any funds for future payment. We were told the employment taxes have been used as operating funds and spent indiscriminately.

Reportedly, the issue first came to light in early 2011 when TEEMCO, having newly formed the previous June, skipped depositing the federal withholding taxes for both previous quarters. The initial plan was to set aside funds to cover the obligation, but the reserve account was soon abandoned and the company proceeded to operate without reporting or paying an ever-growing mountain of money that was owed to the government.

Although a small amount of employees involved with the company's finances and payroll were aware of this issue, they say they were given strict instructions by Lorson not to pay these back taxes, as the company had “other priorities”. As we also previously reported, just last year at the behest of CEO Lorson, TEEMCO splashed out hundreds of thousands for a 58-foot yacht and a private suite at Chesapeake Arena, among many other extravagances (see Lavish spending section (http://www.okctalk.com/showwiki.php?title=Exclusive+Report:+Troubled+time s+at+TEEMCO#Lavish+spending) from “Troubled times”). The IRS expressly forbids using employment taxes for general operations or paying others.

OKCTalk was told an IRS audit of a TEEMCO employee for the tax year 2013 recently brought the employment tax issue to the attention of others in the company. During the course of the audit, the IRS revealed it had no record of having received the taxes shown on the employee's W-2 form issued by TEEMCO, and thus a rebate was disallowed. The employee approached Greg Lorson who then allegedly authorized a quick bonus payment to the affected employee.

Social Security and retirement plan issues
Employees also reported problems with Social Security funds being properly credited to their accounts. In the case of Social Security, an employer is required to withhold 6.2% of an employee's gross salary for every pay period, then match that amount with their own funds. Similar to federal withholding taxes, Social Security is considered to be funds placed in trust by the employer and are to be deposited on a regular basis for each employee.

The Social Security Administration operates a website which allows individuals to monitor their running balance. Several employees told OKCTalk that in the process of checking their accounts, they found no funds had been deposited by TEEMCO for 2011 and beyond. The issue was reportedly raised to CEO Lorson early this year who only then authorized the payment of Social Security for first 2012, then 2011. Employees still report no new funds in their account since 2012.

Social Security and Medicare taxes are typically grouped together as “FICA” deductions, but it is not clear if TEEMCO is current on its Medicare obligations, or its state and unemployment taxes; or for that matter, the company's own federal income tax.

Additionally, employees report not being able to verify account balances in their TEEMCO retirement accounts. Employees told OKCTalk they have not received any sort of account statement and cannot get verification of where those funds are being held.

Possible consequences
Failing to pay employment and Social Security taxes are matters taken very seriously by both the Internal Revenue Service and the Social Security Administration with possible civil and criminal repercussions.

When taxes are not paid in a timely manner, there are often significant financial penalties and interest charges added to any outstanding balance which can quickly turn a large debt into an insurmountable sum.

Under Sec. 7202 of the Internal Revenue Code, a willful failure to pay over or collect tax is a felony punishable by up to a $10,000 fine or five years in prison, or both. There are many cases documented by the IRS where the failure to pay even a few hundred thousand dollars in a timely manner resulted in significant prison sentences.

Employees may also suffer because they may not qualify for social security, Medicare, or unemployment benefits when employers do not report or pay employment and unemployment taxes. Consequently, taxes withheld and paid by compliant employers are used to pay the refunds and social security benefits of employees whose employers did not pay the withheld taxes.

Also, the persons deemed responsible for paying these taxes are often held personally liable for the entire amount owed to the government. Bankruptcy laws do not provide protection in this area.

Uncertain future
Compounding the situation are the current financial difficulties faced by TEEMCO. Lorson told The Oklahoman in a 10/7/14 article, the company was experiencing “financial stress”. We had previously documented the company being seriously past due on many bills. (see Unpaid bills, near eviction section (http://www.okctalk.com/showwiki.php?title=Exclusive+Report:+Troubled+time s+at+TEEMCO#Unpaid+bills+near+eviction) of “Troubled times”)

Records obtained by OKCTalk show only 28 employees have logged hours into the TEEMCO time tracking system in the month of October. Although we have learned a handful of employees are not required to use this system, it appears the total number of employees has dropped dramatically in just the last few months.

When Lorson first discussed moving TEEMCO headquarters to the Gold Dome he cited a rapidly-growing enterprise of 100 employees; now only a fraction of that number seem to be on the payroll. Former employees confirm large-scale firings and layoffs in recent months.

In the 10/7/14 Oklahoman article, Lorson said the company still intends to move to the Gold Dome.


OKCTalk's investigation of TEEMCO is ongoing.



Related Information
10/2/14: "Troubled times at TEEMCO (http://www.okctalk.com/showwiki.php?title=Exclusive+Report:+Troubled+time s+at+TEEMCO)", OKCTalk.com

10/7/14: “ Oklahoma City landmark Gold Dome saga continues with financial problems, conflicting claims from buyer (http://newsok.com/article/5349252)“, The Oklahoman

June 2014: "The consequences of willful failure to pay payroll taxes (http://www.journalofaccountancy.com/Issues/2014/Jun/20149645.htm)", Journal of Accountancy

10/3/11: "Fail To Pay Payroll Tax: Go To Jail (http://www.forbes.com/sites/robertwood/2011/10/03/fail-to-pay-payroll-tax-go-to-jail/)", Forbes

"Examples of Employment Tax Fraud Investigations -- Fiscal Year 2012 (http://www.irs.gov/uac/Examples-of-Employment-Tax-Fraud-Investigations-Fiscal-Year-2012)", Official website of the Internal Revenue Service

Pete
10-13-2014, 02:31 PM
Bumping this to the top.

Lauri101
10-13-2014, 02:43 PM
What a shock those employees will have when they try to draw SS in their golden years!

Mel
10-13-2014, 02:45 PM
I had been reading all the info reported on this forum. Like a lot of others we are happy to see local companies do well. Then their shenanigans short getting noticed and now this. I feel for the employees who thought their SS fund was being paid into. What a load of corruption.

Easy180
10-13-2014, 04:35 PM
Pros and cons working for small businesses....This would be one of the cons

BBatesokc
10-13-2014, 04:39 PM
Pros and cons working for small businesses....This would be one of the cons

Literally and figuratively!

Chadanth
10-13-2014, 04:45 PM
What a shock those employees will have when they try to draw SS in their golden years!

Not just that, they're liable for those taxes if the business doesn't have the assets (which seems likely here) to make it right.

Snowman
10-13-2014, 05:27 PM
It is shocking they might be deluded enough to think they could keep that up for long, the IRS is has a history of finding even sole proprietors and partnerships malfeasance, how can you even contemplate get away with it with dozens of staff.

bluedogok
10-13-2014, 05:48 PM
Pros and cons working for small businesses....This would be one of the cons
It can happen to large companies as well, any place where corrupt people are in control.

OKCDrummer77
10-13-2014, 07:44 PM
I work for a local payroll service provider, so this article was of particular interest to me. As was mentioned above, it's surprising that they got away with it for so long. The IRS, OTC, OESC, etc., are usually pretty quick to bring the hammer down on companies that try to pull stuff like this.

MadMonk
10-14-2014, 07:16 AM
Man, that stinks for their employees. I hope most of them are informed enough to know to bail out before the big crash.

bombermwc
10-14-2014, 08:17 AM
Good reason never to work for someone that does their own payroll. There are a lot of layers of protection by letting another firm handle that type of thing. It keeps people from doing things they are supposed to (unknowingly or not) and makes them do things they're supposed to. It also keeps leadership from being able to do underhanded bullpoop like this.

This guy needs his butt thrown in jail, he personally should be found liable for all the back taxes, and the company should close and be liquidated. Yes, that means some people will be out of the job. And they're getting messed with from all sides. If the company files chapter 11, perhaps those employees can be absorb by someone that could take the company over. But if the buyer has to assume the debt, it won't happen. My last employer purchased another company under similar circumstances and the CEO of the bankrupt company did go to jail. Unfortunately, he had made some many bad decisions and messed things up so badly with his clients that we ended up making very little off of the deal and only by absorbing their IT hardware. In terms of client base, there were so few left that they eventually all left from a decision to in-house their billing. At that point, the few remaining employees did lose their jobs, but all were able to get a new one. Not a small thing to do in California just a few years ago. They were great people and I felt badly for them, and was lucky enough to visit with them in person as I downsized and then closed their offices. But it's a good example of how even a buyer with the best intentions, can end up getting no where with this kind of mess.