Complaint Review: Mobile Comply

Summary

Elaina Farnsworth is a con-artist who induced numerous people and companies to invest money to a company she started called Mobile Comply.  In addition, she hired a large amount of staff on “contracts” which were never written or signed, and then ended up not paying several months of salaries or invoices to her staff upon their departure.

A large company in Pennsylvania invested its common shares based on false and misleading information, deception and fraud.  We supply you the following information to assist you in evaluating your dealings with her or Mobile Comply. 

Farnsworth, originally from Mississippi and now resides in Clarkston, MI is Chief Executive Officer of Mobile Comply with revenue originally earned teaching mobile security solutions and later with money obtained from defrauded investors.

Mobile Comply held addresses in Pontiac, MI and Troy, MI, and now uses a Clarkston address which is likely a home address.   She seems to change the address every few months on the web site.

History 

Mobile Comply, originally started 5+ years ago, and in 2014 branched off into the automotive space with a concept of forming classes for a Connected Vehicle certification.  However, no course material was developed, nor were processes and instructors solidified.  Employees were added to a “team” and encouraged to sell this “service”.  Some stayed, some left after only a month or two.

The Beginning of Mistrust

In 2015, a business plan was created the night before a large meeting with a successful company in Pennsylvania, who was also a former friend of Elaina Farnsworth.  The business plan contained false data, unrealistic projections, and exaggerated statistics with no proof of studies or surveys to support the numbers, percentages or claims.  The business plan projected an unrealistic growth in the industry and in the target market that Mobile Comply was proposing.

This company in PA chose to invest based on the trusted friendship.  From February - December, 2015, Mobile Comply received investments in the form of monthly payments and 100+ hours of time from employees of this successful company in Pennsylvania. 

Marketing materials were developed, webinars were formed, emails were sent, and sales began to happen based on a value proposition of teaching courses on Connected Vehicle.  A few courses were taught by instructors who were subject matter experts in the field.  However, there was no profit, and no business growth.

In Oct, 2015, the PA company proposed a restructuring of the business requested a business plan and strategy for 2016.  Farnsworth did not meet the deadline, and still had no information for them after a 30-day extension.  Thankfully the PA company saw the truth and terminated the investment with Mobile Comply and severed ties with Elaina Farnsworth.

The total value of their investment was over $1M, of which no amount has been repaid to date.

Unresolved Issues- Many Unpaid Employees

In addition, numerous part and full-time employees were staffed as contract, some of who were given signed contracts signed by both Elaina Farnsworth and the employees.  However, some employees were never given a contract, though it was promised to come.

The staff changed continuously with people leaving or being asked to leave for not performing to unrealistic expectations.  Remaining team members began to feel uneasy and felt mistrust as they witnessed dishonesty by the CEO.  Proof of this is evident on Glassdoor.com:  glassdoor.com/Overview/Working-at-Mobile-Comply-EI_IE1080953.11,24.htm

Whether or not a contract was signed, over 6 employees who chose to dedicate their time to this startup company were not paid the full amount due to them in correlation with hours invested over the course of the year (2015).  Several instructors were not paid either.

The accumulated amount due to all of these employees totaled over $50K and has not been paid to date.

Where did the money from the investors go?  How was it spent? 

At least one lawsuit against Elaina Farnsworth and Mobile Comply is on record in the city of Troy, MI to recover funds.

The above information was summarized from documentation received from former bookkeepers, former employees of Mobile Company, and personal knowledge.  Our legal firm will be pleased to furnish any or all of the documentation to you, if and when it will be helpful.