Labor Smart Inc (LTNC)

[DD2Gain]

The CEO lying about taxes.

Some may say he was just misleading...would it matter?

A request was made for this email to be posted so here it is. It was a pain to format this, so forgive any errors, but I have now decided to forward this to the appropriate authorities for the benefit of everyone.

A quick rehash of why this is being posted: In 2012 Labor SMART reported in its 10K that it had been delinquent on payroll taxes, but had paid the amount due plus penalties and interest by the time the 10K was released. Subsequently, a second employer review was posted on glassdoor.com referring to poor accounting practices. I decided to ask the public relations officer at the time (Joseph Vazquez) what LTNC's response was. Here is that exchange. Bear in mind that the 10K was not released until months after this email and it made no mention of delinquent taxes. It wasn't until the 2014 1Q that a blurb was provided about a payment arrangement with the IRS for a significant (but unspecified) sum of delinquent payroll taxes. Note how evasive Mr. Vazquez was until Mr. Schadel "chimed in".

On Jan 13, 2014 9:15 AM, <Myself> wrote:

Mr. Vazquez,


There is a pretty damning review on Glass Door right now. Does LaborSMART have a response?

http://www.glassdoor.com/Reviews/Employee-Review-Labor-Smart-RVW3515912.htm


Sincerely,

<Myself>


On Mon, Jan 13, 2014 at 8:32 AM, Joseph Vazquez <[e-mail]> wrote:

Mr. <Myself>,
I wouldn't say the voice of one disgruntled employee is a pretty damming review.
Fact is, he is probably correct that the jobs start off with low pay and are very demanding.
However, for those who are goal oriented and are willing to accept the challenge, you can work your way up the corporate ladder, have a career, and make seriously good money for a job well done.
This industry is not for everyone. And, while the company is still growing aggressively, the demands will remain high.
Although it is impossible to make everyone happy, I can tell you that the CEO never asks for anything more than what he is willing to do and sacrifice himself.
Also, not to compare us with anyone else, but I'm sure a little due diligence would show other much larger companies in our industry with lots of disgruntled ex-employees. It's the nature of the business.
I hope this answers your question. Please feel free in contacting me any time with any additional questions.
Regards,
Joe Vazquez


On Mon, Jan 13, 2014 at 9:46 AM, <Myself> wrote:

Mr. Vazquez,


I am not much concerned about the former employee's perception of the company. I am, however, very interested in the following charge:

"Not reprting income to unemployment or paying payroll taxes."


I understand that different states may have different reporting standards, but is there merit to those claims? There is an option on the Glass Door website for employers to publicly respond to such reviews, which would seem to be an appropriate course of action. As I recall from the 2012 10K, there was an issue with being late with payroll taxes that caused additional expenses.


Sincerely,

<Myself>

-------- Original message --------
From: Joseph Vazquez
Date:01/13/2014 10:00 AM (GMT-05:00)
To: <Myself>
Subject: Re: Glass Door Review

Mr. <Myself>,

I understand your concern.

However, we are a fully reporting company that audits its financials and files with the SEC. We pride ourselves in running a fairly transparent corporation. If what was alleged were factual, our auditing firm would make us disclose these facts and they would also make mention of it as a going concern.

For an Auditing company to not disclose such a material event would create a liability issue for themselves. You will never see that happen in today's market.

I hope this brings light to your legitimate concerns.


Regards,
Joseph M. Vazquez III
President
Infinity Global Consulting Group, Inc.
Phone [phone]
Conference Call Info: [phone]
Access Code: 180300#



On Mon, Jan 13, 2014 at 9:23 AM, Ryan Schadel <[e-mail]> wrote:

I'm going to chime in to the response here. Labor Smart is 100% current on ALL tax reporting requirements. We report to over 100 government agencies including state, county, local, and federal. Our tax liability is fully disclosed.


Regarding an unhappy account executive- it is a demanding job. Pay is a direct reflection of performance. If an account executive isn't making a lot of money it's because they aren't bringing in a lot of business and we don't keep salespeople that can't close.


I hope these concerns have been addressed to your satisfaction.


Ryan


Sent from my Verizon Wireless 4G LTE smartphone


On Jan 13, 2014 10:37 AM, <Myself> wrote:

That's exactly the direct response I was looking for, Ryan. Thank you to both you and Mr. Vazquez for your time in addressing this matter.

On Mon, Jan 13, 2014 at 9:39 AM, Joseph Vazquez <[e-mail]> wrote:

Mr. <Myself>,
As a shareholder, your questions and concerns are always very important to us.
Please feel free in contacting me any time.
Regards,
Joe Vazquez