Local company victim of advertising scam

Local News

December 27, 2008

Ronica Shannon The Richmond Register Sat Dec 27, 2008, 07:35 PM EST

Richmond police continue to search for two men involved in an advertising scheme where they sold a $750 ad to a local business. The ad never appeared, and the phony salesman has disappeared.

Staff at Star Mortgage, at 5011 Atwood Drive, were approached Nov. 5 by a man going by the name of Chris Pearson. He said had an advertising contract with Trader’s Village, at 1618 Northgate Drive.

The ad was to be a 3-by-8-foot banner placed on the backside of Trader’s Village, which could be seen by those driving on the Interstate.

The banner was to be in place by Nov. 15.

“I drove by on the 16th and didn’t see it,” said Karen Young, a loan officer for Star Mortgage. “I e-mailed, made phone calls, that was the last we saw of him. I don’t know how many other people this has happened to.”

The company contacted the Richmond Police Department and filed a report on Nov. 24.

“Trader’s Village didn’t know anything about that,” Young said.

“We have interviewed Chris, but we haven’t interviewed Ray Pearson (who may be Chris Pearson’s father),” said Richmond Police Chief Larry Brock. “The investigation is ongoing, but we haven’t been able to track Ray down yet.”

The man asked the company to pay him $450 up front for materials, and came back on Nov. 12 to collect the rest of the money, Young said.

Ray Pearson came along with Chris when he returned for the second time to receive the remainder of the costs.

“The police went to his (Chris’s) apartment, and he had been evicted,” Young said. “They contacted his mother who never called them back. They found the father (Ray) at the Holiday Motel in Berea and he stated due to the design (of the ad), it was taking longer than normal, but that it was going to be installed.”

Those at Star Mortgage had no reason to doubt his legitimacy as an ad salesman when he first came into the business.

“He gave us the dimensions, and the second time, he brought in a proof to show us what it was going to look like,” said Beverly Maybriar, owner of Star Mortgage. “He had even made up a contract.”

Advertising scams are showing up all over the world, but the Better Business Bureau of Central & Eastern Kentucky is trying to protect those living in the 56 Kentucky counties that fall within their jurisdiction.

The BBB has joined with the Lexington Advertising Club to create The Truth in Advertising Plan.

“The main objective of the Truth in Advertising Plan is to promote public confidence in the truth and accuracy of advertising through education and self-regulation,” according to information found at www.lexington.bbb.org/TruthInAdv.asp. “We have developed a form that you can use to help us in monitoring local advertising to make sure it is honest and ethical.”

The form can be downloaded by visiting the aforementioned Web site.

Anyone with questions about The Truth in Advertising Plan can send an e-mail to info@bluegrass.bbb.org or call 1-859-259-1008 or toll-free within the state at 1-800-866-6668.

Ronica Shannon can be reached at rshannon@richmondregister.com or 623-1669, Ext. 234.

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