Modeling Agency News: American Modeling Industry Headlines

"Against the backdrop of a state investigation into the business practices of plaintiff and defendant alike, famed fashion model companies Wilhelmina Scouting LLC and Wilhelmina International Ltd. are seeking $24.3 million in damages from boy band king Lou Pearlman. At issue is a license and marketing agreement giving Pearlman's talent scout firms the right to operate under the internationally known Wilhelmina brand. Manhattan-based Wilhelmina contends Pearlman personally guaranteed 10 years of fees to the agency as part of the agreement--a sum that adds up to $25 million."¹

"Specifically, the complaint says Trans Continental recruiters pressured potential models and actors to pay large sums of money to have their photos placed on Trans Continental Talent's Web site. Pearlman counters that he rescinded the deal last October because of questionable business practices employed by the Wilhelmina agencies. Further, he says, the suit is a response to his own legal action against Wilhelmina, filed in New York, and that he never signed any personal agreements with Wilhelmina. "We are asking for it (the Orlando suit) to be dismissed without merit, or enjoined with the New York suit," he says."²

"Wilhelmina is entitled to immediate payment from Pearlman," write New York attorney Stuart Abrams and Tampa attorney Robert Hearn, who represent the modeling agencies."³

1. Jill Krueger, "Model contract turns ugly, boy band king sued," Orlando Business Journal, Mar. 22, 2004.
2. Ibid.
3. Ibid.

Man pleads to lesser crime in blackmail case

"A man convicted of blackmailing Orlando pop-music impresario Lou Pearlman is helping state officials investigate his intended victim's business empire. Robert Christopher Fizia received a year in federal prison on Tuesday as a reward for assisting a state attorney general's probe of Pearlman's Wilhelmina Scouting Network. He faced a felony conviction and nearly three years in prison until being allowed to plead guilty to a misdemeanor count of blackmail. "We've interviewed him on several occasions, and he provided us with some material," said state Assistant Attorney General Jackie Dowd, who is heading the Pearlman probe. "We've been in negotiation with the company and hope to resolve [the investigation] through a settlement," she said Tuesday. At the sentencing before U.S. Magistrate James G. Glazebrook, the prosecutor and defense lawyer both said Fizia, 28, of Orlando, had been threatened as a result of cooperating with authorities. Neither said who made the threats.... Fizia, who previously worked as a salesman for the modeling agency under a previous corporate name, was arrested in March. He had threatened to release damaging information about the company, Trans-Continental Talent, if he was not paid $225,000, according to federal court records in Orlando. A sample of the information included public record about the arrest and conviction of a Pearlman aide, Alec DeFrawy, for bank fraud and wire fraud. "The Attorney General's Office and the Press would love to have this information," Fizia wrote in an anonymous note delivered March 5. "They will receive a copy of this file within the next 72 hours if you do not comply with my requests." The FBI arrested Fizia the next day in a men's room at the Florida Mall when he took delivery of a duffel bag that was supposed to contain the payoff. Fizia was prosecuted by Assistant U.S. Attorney Bruce Ambrose and was represented by Assistant Federal Public Defender Fritz Scheller."¹

1. Henry Pierson Curtis, "Man pleads to lesser crime in blackmail case," Orlando Sentinel, Sept. 17, 2003.

Internet site to keep operating

"Lou Pearlman's Wilhelmina Scouting Network has suffered a setback in its bid to shut down a Web site that warns consumers to stay away from his Internet-based model-scouting company. A lawsuit against Badbusinessbureau, filed in federal court in Orlando, was dismissed by Judge Anne Conway, who ruled that she did not have jurisdiction. Ed Magedson, the Web site's creator, said the legal maneuvering by Wilhelmina was little more than an effort to silence a critic. "They knew they didn't have jurisdiction. They just wanted to cost us money," Magedson said. "They have in-house lawyers who pump out these boilerplate lawsuits." Wilhelmina officials could not be reached for comment. It isn't known whether the company will pursue the lawsuit elsewhere. "If they do, it would be absolutely ridiculous. It would just draw more negative publicity for themselves," said Frank Torelli, an investigator for the Web site who also was named in the lawsuit. The lawsuit alleged trademark infringement, unfair competition and defamation. Badbusinessbureau operates the ripoffreport, which includes scathing commentary about Pearlman's company, known both as Trans Continental Talent and Wilhelmina Scouting Network. The lawsuit asked the court to prohibit the Web site from using the Trans Continental name anywhere on its pages. "Defendants, by improperly using this trademark, are misleading the public into believing that their services are connected with" Trans Continental Talent, according to the lawsuit. The suit also alleged that there are numerous false statements published on the site. Web sites like this have long been a source of irritation for the company, which has said "slanderous Internet postings" are one of the reasons for its problems with customers. Such sites have convinced many customers that something could be wrong with the services sold by Wilhelmina/Trans Continental. The company puts would-be models on the Internet, where they have a chance of being seen by casting agents and modeling agencies. The company has been under investigation for more than a year by the Florida Attorney General's Office, which has received some 1,300 complaints from consumers. Among other things, customers have complained they were misled with promises that work in the fashion industry would be easy to find. The company says it makes no such promises."¹

1. Tim Barker, "Internet site to keep operating," Orlando Sentinel, Sept. 13, 2003.

Complaints Mount Against Pearlman's Modeling Network

"We've opened our investigation to look into deceptive and unfair trade practices," Florida's Assistant Attorney General Jackie Dowd said. "We've received a complaint from I think every state and some even from people in other countries." Local 6 News interviewed one of Wilhelmina's self-proclaimed dream doctors. "When I believe, I can make people believe," former Wilhelmina scout manager Tara Doyle said. "The sky's the limit. That's how it was presented." The report also featured Rachelle Regis who was scouted by Wilhelimina on her college campus. "These people are preying on people's dreams," Regis said. "'You are so beautiful, how are you not a model? We'll make you a model. You could be the next Tyra Banks.' That's the kind of stuff you hear." Local 6 News reported that the company required money from Regis for services. "I remember him also telling me that $595 seemed like a lot of money, but you'll make your money back in a month, guaranteed," Regis said. Regis' photo was posted on Wilhelmina's Web site with thousands of other aspiring models and actors, according to the report. However, she never received a phone call or modeling appointment offer. Local 6 News sent a 30-something mom into one of Wilhelmina's open calls with a hidden camera to test her "star quality." The producer was measured, photographed and told she could make $250 an hour in national department store ads."¹

1. "Complaints Mount Against Pearlman's Modeling Network," WKMG Local 6 Orlando, July 11, 2003.

1. "Attorney General Investigates Company."
2. "Saltzman Reports Part 2."
3. "Saltzman Reports Part 3."

Scouts prey on wannabes

"She showed me the website and explained the importance of professionalism. Finally came the issue of payment. For a flat fee of £675, the agency would take my picture, set up a web page and keep my details on the site for a year. Diane piped up when she saw I was wavering. "It's not much money when you think about it. Imagine when the big bucks start coming in," she said."²

"But would I get any modelling work from these photographs? I went to see Sarah Doukas, founder of Storm model agency, who has worked in the industry for 21 years and launched Kate Moss's career. "You're not a model," she said, as soon as she saw my pictures. "We wouldn't take you on. I don't think you'd even get low-level advertising, let alone a campaign for a big fashion company. What this company is doing is shocking. You shouldn't make promises and you shouldn't raise expectations. "When we sign a model up, we work hard for them but we don't promise anything and we never ask for money. Operations like this prey on vulnerable people. I would never use its website to find new models--I have my own scouts out there."³

"WSN has more than 100,000 "models" on its website, most signed up after being scouted in the street. However, several of Britain's top model agencies, including IMG, Models 1, Next and Premier, said they wouldn't use the site. The Association of Model Agents' guidelines say members can only derive income from commission on fees earned by the models that they represent."⁴

"They made us walk up and down and took us to be interviewed. I was told I would have to pay $1,000 [£600] to have my pictures on the website. That was the first time money was mentioned. I paid that, but a few days later they said I had to pay $590 [£354] extra for a photo-shoot. That's when I got suspicious. At my interview they said I should have at least 10 job offers a month but after several weeks I've had none. I have been suckered in."⁵

"They are selling dreams to people," says Dowd. "Most of the young girls and parents who have complained say they were led to expect things they didn't receive." Former scouts have told Dowd they had no experience, and were told to approach anyone who looked as if they had the ability to pay--the commission was usually about $10 for every girl persuaded to show up in the office.⁶

1. Emine Saner, "Scouts prey on wannabes," Evening Standard, June 25, 2003.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.

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