The

Entrepreneurial

Code

Lessons from an

Ivy League Entrepreneur

Chapter Thirty-Seven

As Johnny and his partners were finalizing their first press release, things got more serious.  Because of the newspaper headlines, they began to receive calls from State Attorneys General, requesting information about College Card.  Those calls really freaked out the staff. 

Some of the Attorneys General didn’t wait before they began commenting to the press.  They had no qualms about issuing the following kinds of statements: 

§  The State Attorney General of Rhode Island was quoted in the Providence Journal-Bulletin as saying, “We believe that this is a scam designed to lure unsuspecting parents and students.”

§  The Hartford Courant quoted the State Attorney General of Connecticut, as saying “the company [NCEB] listed on the letter is fake.”  He then went on to say, “This is a striking example of people preying on the anticipation and anxiety of students about to go off to college.”

§  The Florida Times reported that its State Attorney General “warned parents and students yesterday not to fall for a debit card scam that fools people into thinking their card is official university identification.”

§  The New York Attorney General was quoted in the Times Union as referring to College Card as “nothing more than ‘Scamming 101’ – a blatant misrepresentation that puts the company on the dean’s list for deceptive business practices.”

Johnny was dazed by these negative statements from such highly regarded officials, like he was being punched in the face from every direction.  He was almost in disbelief about how things had gotten so screwed up.  The partners found an attorney, who came very highly recommended by a friend of Maverock’s family.  They had no choice but to retain him, so things wouldn’t get any more out of hand.  Hiring a good lawyer also meant hitting up friends and families for more money.  That’s because the company’s balance sheet didn’t have the cash available to deal with additional legal costs.

While the company’s lawyer worked to resolve the situation with the Attorneys General, the partners were prohibited from speaking to the press.  Their lawyer reasoned that a press blackout was necessary until they got the situation under control.  Whenever a newspaper contacted them with a question, they had to respond with the official “No comment.”  Unfortunately, it meant anyone could say anything they wanted about them, and they couldn't give a rebuttal.    Unfortunately, if you don’t tell your story, then someone else will tell it for you, but you might not like what he or she says.

Copyright  2005 by Chris Cononico
All rights reserved. No part of this manuscript may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the author, except by a reviewer who may quote brief passages in a review.