Update: MFS provides employees cash

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Tammy Sharp

Former employees of Multi-Family Services line up to receive $150 to tide them over until the company can pay them the rest of what they are owed. Trance Griggs, MFS manager, checks off the names of the employees as he pays them. Griggs, said MFS owes him close to $5,000. The company shuttered its doors on Friday after terminating its contract with Picerne Military Housing at Fort Polk. The employees showed up on Tuesday and Wednesday expecting to get paid only to be told there was no money. They were not willing to leave until owner Jeremy Parrott, of Georgia, provided them with at least some of the funds they were owed.

  

Yellow Pages

By Tammy Sharp
Posted Aug 04, 2010 @ 02:44 PM
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A mob-like crowd made up of former employees of Multi-Family Services, which has shuttered its doors due to financial troubles, were able to get some relief for their own financial distress Wednesday morning.
The employees had not been paid, some for as much as month, and had shown up at the company's New Llano office on Tuesday morning and again on Wednesday morning wanting their money. They were told there was no money to pay them. Some were facing not being able to pay rent or mortgage or buy school supplies and clothes for their children.  
"Everyone in the company is owed money," Jeremy Parrott told the employees via speaker phone from his home in Georgia.
"But you ain't done no work," one employee yelled out. "You been sitting in the a.c."
Multi-Family Services (MFS), a landscaping business that services housing complexes on military bases, terminated its contract with Picerne Military Housing July 30 after learning on July 29 that a loan the company needed to continue operations had been denied.  
"This is an off shoot of something that happened back in March," said owner Jeremy Parrott in a phone interview Aug. 3. "It's a snowball effect, because another customer decided not to pay us."
MFS had also contracted with Pinnacle, a housing management firm similar to Picerne, at Fort Benning. On March 31, Pinnacle terminated its contract with MFS in the wake of one of its employees being charged with fraud. According to Parrott, Pinnacle still owes MFS $187,000.
That loss of funds is what ultimately caused MFS to terminate its contract with Picerne, said Parrott.
Parrott said that in the spring his company made the decision to go forward through the summer, despite the loss of funds and in the hopes that they could secure a $250,000 loan. The loan fell through on July 29.
"We had to resign, basically," from the contract with Picerne, said Parrott. The resignation took effect around midday on Friday, though Parrot said workers finished out the month so that MFS could receive payment from Picerne.  
Three days later, according to Parrott's website, Picerne sent an email notification to MFS President Clint Thomas informing him that no payment would be rendered to MFS from Picerne until Picerne had documented and accounted for all costs incurred or expected to be incurred as a result of the breach of contract. Thus far, Picerne has not responded to any calls from Leader staff. Parrott said he's gotten no response either. Parrott said that Picerne owes MFS approximately $100,000, a fact that is also preventing him from paying his emplyees.
In the meantime, the employees still hadn't gotten paid, said Trance Griggs, manager for MFS, who was at the company's office Wednesday morning when two other MFS employees showed up to collect the company's equipment, including tractors and mowers estimated to be worth in the tens of thousands, with the intent of taking the equipment in order to liquidate it.
The Fort Polk employees protested, saying that if the equipment was taken, then they would never get paid.
"I can't make the guys leave," said Griggs. "They want their money just like I want mine."
Via speakerphone, Parrott told the employees that he'd deposited close to $5,000 in Sabine State Bank that could be used to provide them with funds until other arrangement could be made to pay them the rest of the money they were owed. Griggs collected the cash from the bank and then provided each employee with approximately $150, which seemed to appease most, with the crowd quickly dispersing.
Griggs said he had plans to begin liquidating the company's equipment, which would provide the rest of the funds necessary to pay the employees.
About a dozen other employees, here from Mexico on a work visa with MFS, said they were still worried about their living arrangements.
Parrott said he was fully aware of their plight and was working to resolve the situation.
None of the workers speak English, none have transportation and none have a phone. Jose Flores, a native of McAllen, Texas, who has worked for MFS for about a year, also lives in the building and sometimes acts as translator for the other workers.
The living quarters are attached to the company's rented office. Parrott said the rent was paid through August 15 and that the electricity should be paid through the end of August. He told the employees via speaker phone that he was actively trying to find them employment and encouraged them to try to do the same.
"If you think you can find you a job sooner than I can find you a job, I wish you all the best," he said.
Jose Us, minister of El Alfa y la Omega Hispanic Mission, said that he, too, would provide the workers the help they needed. Helping Hands donated food.  
The Vernon Parish Sheriff's Office was also on the scene. Close to noon, detectives arrived to speak with Griggs and also Parrott, via phone. A spokesman with the sheriff's office said that the situation seemed to have been resolved.
 

A mob-like crowd made up of former employees of Multi-Family Services, which has shuttered its doors due to financial troubles, were able to get some relief for their own financial distress Wednesday morning.
The employees had not been paid, some for as much as month, and had shown up at the company's New Llano office on Tuesday morning and again on Wednesday morning wanting their money. They were told there was no money to pay them. Some were facing not being able to pay rent or mortgage or buy school supplies and clothes for their children.  
"Everyone in the company is owed money," Jeremy Parrott told the employees via speaker phone from his home in Georgia.
"But you ain't done no work," one employee yelled out. "You been sitting in the a.c."
Multi-Family Services (MFS), a landscaping business that services housing complexes on military bases, terminated its contract with Picerne Military Housing July 30 after learning on July 29 that a loan the company needed to continue operations had been denied.  
"This is an off shoot of something that happened back in March," said owner Jeremy Parrott in a phone interview Aug. 3. "It's a snowball effect, because another customer decided not to pay us."
MFS had also contracted with Pinnacle, a housing management firm similar to Picerne, at Fort Benning. On March 31, Pinnacle terminated its contract with MFS in the wake of one of its employees being charged with fraud. According to Parrott, Pinnacle still owes MFS $187,000.
That loss of funds is what ultimately caused MFS to terminate its contract with Picerne, said Parrott.
Parrott said that in the spring his company made the decision to go forward through the summer, despite the loss of funds and in the hopes that they could secure a $250,000 loan. The loan fell through on July 29.
"We had to resign, basically," from the contract with Picerne, said Parrott. The resignation took effect around midday on Friday, though Parrot said workers finished out the month so that MFS could receive payment from Picerne.  
Three days later, according to Parrott's website, Picerne sent an email notification to MFS President Clint Thomas informing him that no payment would be rendered to MFS from Picerne until Picerne had documented and accounted for all costs incurred or expected to be incurred as a result of the breach of contract. Thus far, Picerne has not responded to any calls from Leader staff. Parrott said he's gotten no response either. Parrott said that Picerne owes MFS approximately $100,000, a fact that is also preventing him from paying his emplyees.
In the meantime, the employees still hadn't gotten paid, said Trance Griggs, manager for MFS, who was at the company's office Wednesday morning when two other MFS employees showed up to collect the company's equipment, including tractors and mowers estimated to be worth in the tens of thousands, with the intent of taking the equipment in order to liquidate it.
The Fort Polk employees protested, saying that if the equipment was taken, then they would never get paid.
"I can't make the guys leave," said Griggs. "They want their money just like I want mine."
Via speakerphone, Parrott told the employees that he'd deposited close to $5,000 in Sabine State Bank that could be used to provide them with funds until other arrangement could be made to pay them the rest of the money they were owed. Griggs collected the cash from the bank and then provided each employee with approximately $150, which seemed to appease most, with the crowd quickly dispersing.
Griggs said he had plans to begin liquidating the company's equipment, which would provide the rest of the funds necessary to pay the employees.
About a dozen other employees, here from Mexico on a work visa with MFS, said they were still worried about their living arrangements.
Parrott said he was fully aware of their plight and was working to resolve the situation.
None of the workers speak English, none have transportation and none have a phone. Jose Flores, a native of McAllen, Texas, who has worked for MFS for about a year, also lives in the building and sometimes acts as translator for the other workers.
The living quarters are attached to the company's rented office. Parrott said the rent was paid through August 15 and that the electricity should be paid through the end of August. He told the employees via speaker phone that he was actively trying to find them employment and encouraged them to try to do the same.
"If you think you can find you a job sooner than I can find you a job, I wish you all the best," he said.
Jose Us, minister of El Alfa y la Omega Hispanic Mission, said that he, too, would provide the workers the help they needed. Helping Hands donated food.  
The Vernon Parish Sheriff's Office was also on the scene. Close to noon, detectives arrived to speak with Griggs and also Parrott, via phone. A spokesman with the sheriff's office said that the situation seemed to have been resolved.
 

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