- Report: #1207937
Complaint Review: Newport Board Group - Nationwide
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Author Confirmed
Why?
Newport Board Group
Nationwide, USA
Web:
newportboardgroup.com
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Newport Board Group pyramid scheme Nationwide
This company (actually a partnership) recruits former CEO's and senior executives to join them for a $15,000 fee on the premise that you'll be part of a national firm of respected advisors.
And they tell you that in return for your membership, money & hard work marketing the firm, you'll get valuable engagements to earn retainers, have opportunities to serve on boards of companies, etc.
They don't tell you that most of the partners are making zero or miniscule income, that the firm has no real value proposition, no marketing and that 90% or more of the business that has come into the firm has come from each individuals' own contacts and efforts.
They recently changed the rules so that partners who leave before the 3 year vesting period is over get none of their $15,000 joining fee back. That's 'cos they realized they had a $500,000 liability on the books to partners who had left the firm.
They don't tell you that since inception in late 2011, 140 partners have signed up and about 40 have already left the firm. Some in as little as three or six months, after realizing the firm has inept leadership, no integrity and a board of directors that are manipulated by the CEO/founder, Douglas Payne.
The don't tell you that the firm is bankrupt.
They don't tell you that the firm cannot sustain itself without the new partner buy-ins and never has made a profit.
Nor do they tell you that the LLC agreement you sign requires delivery to partners of annual finacial statements prepared accoridng to GAAP and that it has never delivered any in the four years it's been in operation.
They don't tell you that many of the longest serving Managing Directors refuse to recruit new partners until there is evidence it is a sustainable business.
They don't tell you that partners who question the CEO or raise issues about the firm are summarily ejected from the partnership.
Be very careful when considering joining this pyramid scheme.
1 Updates & Rebuttals
1BusinessGuy
Dallas,Texas,
USA
I agree
#2UPDATE EX-employee responds
Thu, July 23, 2015
I was one of the partners who left after 3 months. I did not feel that Newport Board Group had any value to offer me as a consultant. No brand equity, no methodology, no tools, nothing. I also felt like it was a bit of a ponzi or pyramid scheme. Only upon my resignation did I realize that my $15K would be returned to me over a 3 year period. I didn't read the agreement very carefully and I would never have expected my money to be held hostage this way. The market I was in had very little revenue and nobody was making any money. Not a penny. Partners came and went.
