2nd Overseas Job Agency in L.A. Goes Out of Business

A Los Angeles employment agency that promised to locate jobs in foreign countries has closed and filed for liquidation under U.S. bankruptcy law, prompting complaints from more than 100 customers and an investigation by the California attorney general’s office.

The firm, which operated in the mid-Wilshire district under the name of Overseas Careers of California Agency, became the second well-known Los Angeles company in the scandal-rocked employment services business to shut down in the last few months.

In June, Overseas Unlimited, facing Federal Trade Commission charges of fraud and misrepresentation, agreed to close indefinitely. Overseas Unlimited was accused by the FTC of bilking some 70,000 clients who were promised jobs of at least $25 million. The company was separate from Overseas Careers and operated under different ownership.

Overseas Careers disclosed in bankruptcy court Friday that it would fold after two years in business. The Chapter 7 bankruptcy filing actually was made by International Careers Agency, which did business as Overseas Careers and as Best Employment Agency Unlimited. Under Chapter 7 of the U.S. Bankruptcy Code, a company ceases operations and its remaining assets are distributed to creditors.

Employment services companies such as Overseas Careers charge clients fees from around $375 to several hundred dollars more to match job seekers with positions in foreign countries. The employment agencies pass on resumes to potential employers, who are responsible for contacting the applicants.

Overseas Careers was served in March with a notice of violation by the California Bureau of Personnel Services stating that the company had not obtained bona fide job orders from several companies. No action was taken, however. A lawyer for Overseas Careers vehemently rejected the claim by state officials that the company had operated in a manner similar to Overseas Unlimited.

“They weren’t making misrepresentations or committing any fraud,” Jerry Kaplan, a lawyer for Overseas Careers, said Wednesday. “They have valid jobs they were matching.”

Overseas Careers went out of business because of financial problems caused by a drop in new business following the demise of Overseas Unlimited, Kaplan said. In addition, the company had to pay “hundreds of thousands” of dollars in refunds to clients who did not get jobs. Kaplan added that the company’s bank refused to extend it any more credit.

The state attorney general’s office has launched an investigation into the operations of Overseas Careers, said Sande Buhai Pond, deputy attorney general. “We certainly will be participating to whatever extent possible in the bankruptcy proceedings to protect consumers,” she said.

The Bureau of Personnel Services, which polices the employment services industry, said it has received more than 100 complaints from clients since Overseas Careers closed its office last week.

Lawrence Maccarone filed suit against the company in Los Angeles Municipal Court last week, claiming he paid Overseas Careers $645 last November but has yet to receive a job offer. “The idea of working overseas was a real nice idea,” he said.

Sandra Ringer, owner of Airport Marina Telecommunications, said she is owed more than $6,500 by Overseas Careers, which leased a toll-free 800 telephone number from her company.

“I’m a small company but I’ll probably recover from this. It’s not irreparable,” Ringer said. “But there are others--they can’t afford it.”

The bankruptcy filing for Overseas Careers stated that the company has more than 200 creditors, with the Los Angeles Times listed as the largest. The filing, however, did not specify the amount of the company’s assets or liabilities. Kaplan said that information is being gathered.