Lung Association Asks for Award Nominations

2007 Shining Example Award Given in Honor of Bill Peterson

13 WHAM reported last night that the Rochester Lung Association is seeking nominations from the public for possible recipients of the 2007 Shining Example Award. Named after former 13 WHAM Chief Meteorologist Bill Peterson, who passed away in August 2006 after a decades long battle with lung disease, heart disease and cancer, the award seeks to honor those who, like Peterson, battle the lung disease with determination while continuing to give back to their community. The deadline for nominations is February 16th and the award will be presented at the Lung Association's "Blow the Whistle on Asthma" kick-off ceremony on March 14th. Those who wish to nominate, or are in need of more information, can visit http://www.mrsnv.com/evt/info.jsp?id=1289 or the 13 WHAM website for further details.

We're Still Paying Manny

We Thought We Were Rid of Him, but . . . He's Baaack!

From the Office of the Governor -

Governor Eliot Spitzer and Lieutenant Governor David Paterson today announced the appointment of the Governor’s top education policy advisor. Manuel Rivera, Ph.D. is appointed to serve as Deputy Secretary for Education. Mr. Rivera is currently the Superintendent of Schools in Rochester.

In this newly created position, Mr. Rivera will act as the administration’s senior education policy advisor. Based in Albany, he will oversee the implementation of Governor Spitzer’s education reform policy, which will couple increased funding with necessary accountability and a more transparent school aid formula. He will also be responsible for implementing sweeping reforms designed to improve accountability. The appointment is the successful result of a nationwide search.

Overlooking the grammatical errors in the press release the use of the term accountability in this release is interesting as questions remain about accusations of racial discrimination by Rivera and the RCSD. Regardless of questionable hiring and personnel practices that will be highlighted in a demonstration by the Parent and Community Advisory Committee on February 15th, how sound is the decision to place Rivera in a position of state oversight when his term as superintendent in Rochester has resulted in one of the lowest graduation rates, and highest dropout rates, in the nation? A good place for Manny to start might be grammar lessons for the Governor's press office. Read the first article on the matter from the WBP for more -

Are We Supposed to Feel Better?

The D&C Henrietta blogger has posted his Final Followup on 5Linx and now everything is right with the world. Only -

- Spurred by articles at the Water Buffalo Press, 5Linx has applied for membership in the Direct Selling Association as a response to highlights here on the WBP that non-membership indicated questionable business practices by the respective entity. According to a representative from the DSA, 5Linx will not be accepted for membership as their application did not illustrate practices consistent with the strict guidelines of the DSA.

- As highlighted in our earlier article, Find the Red Queen, the supposed $6 million investment in the community is nonexistent as it can only be assumed, since exact figures are unavailable to the public, that $6 million has been returned to the company in the form of government investments and abatements.

- The championing of 5Linx as a leader in telecom is overstated, as 5Linx reps do not carry inventories; rather, 5Linx serves as a third party marketer providing website marketing materials (at a price) to direct sales representatives whose websites redirect customers to carriers.

- The pyramid nature of the business model is illustrated in the new jobs that will be housed in the expansion: According to Denise Nowak with 5Linx this inhouse sales team "provides quotes to small and medium size businesses that our independent representatives come across that would like to use our GLOBALINX service", (although the acquisition of leads from a supposedly independent representative raises questions about how independent this realtionship is) essentially these business leads are the most profitable and the 5Linx founders (the top of the pyramid, which includes ACN defectors) want to ensure that the profits continue to be weighted at the top of the structure. What is left for the independent reps to market to are private residential clients, undoubtedly less profitable than business sales.

All in all, the type of business that our region should brag about and subsidize?

Globetrotting Mayors & Cured Meats

I Smell Old Antics . . . and Cheese

I like prosciutto as much as the next person but are we going to pay for this too?

From the D&C:

Mayor Robert Duffy expects to travel to Parma, Italy, with a contingent of city leaders as soon as February to get a better understanding of the "Made in Italy" project and to help cement details with proponents in that region of northern Italy.

"It's important for us to go over for everyone to see there is serious negotiation going on," the mayor said. "Part of the foundation for this (business relationship) is a sense of trust, and it has to be a two-way street."

Maybe the Mayor really likes pecorino romano, but Duffy's globetrotting seems strangely similar to our last frequent flyer: Bill Johnson. Johnson's travels were many, for instance, a jaunt to Baltimore to visit with the company who would eventually become the failed developer of the High Falls district; but this international mini-vacation for Duffy seems rather extraneous, especially if the deal falls through and the cost of the trip for taxpayers gets added to the already $250,000 tab - a total racked up when the City gave the developers that much just to keep open their option to buy the property. (It seems the developers just happened to put the building on the market at just the right time.)

I hope this project succeeds and we partner with the Italian government and Midtown is revitalized; unfortunately, this appears as another backroom political deal where the public's opinion does not matter. The current owners of stores within the mall portion of Midtown have not even been consulted about proposed plans for the property. If Duffy wants to do this deal in private then go ahead (in fact an agreement has already been signed by Duffy), but we here at the Water Buffalo Press will demand the following: if this is an idea that private entities believe can succeed then use private funding and monies to finance the project, NO COMIDA abatements, NO EMPIRE ZONE incentives, use an external revenue source to expand the area's tax base, reduce the second highest property tax burden in the nation and actually benefit Rochester instead of being another ferry or performing arts center/bus station.

R-H Community Makes Great R-H Players

All apologies to dog owners but Rush-Henrietta Varsity Basketball coach Chris Reed does not think much of the canine work ethic: “If you’re a dog in the classroom you’ll be a dog on the court. We want people we know we can rely on and that extends to academics;” no one in Section V can argue as the Royal Comets are undefeated in both locations. Senior Ricky Reed is obviously well-coached as he pointed out that “no one on the team is on the academically ineligible list.” In fact, no player has even made the warning list which flags students who could potentially become academically ineligible.

The R-H faculty is quick to help Coach Reed in his efforts to stay on top of his players in all facets of their lives as scholar athletes; he receives reports from teachers on every player. “[Coach Reed] doesn’t want us to survive, he wants us to excel,” said Senior Ozel Franklin. The R-H student body has also been a big supporter of its team, “They love it and the student section is bigger every game,” noted an appreciative Ricky Reed.

There is also the very successful girls varsity team who has seen recent success at the state level, “I play against a couple of the girls and hearing them talk about states makes us really want to get there and they have a really great work ethic that we try to copy,” said sophomore Dane Miller. Coach Reed has also drawn support from the girls’ team by conferencing with its coach, “At times we have the same issues we discuss.”

All of these lessons outside the court have made their way onto it creating a team focused on strengthening their weaknesses as a team and growing as players, “Coach Reed improves us in areas where we don’t excel,” said Miller. “Coach knows we’ll score so he pushes us on defense,” said Franklin. Not surprisingly the words of his players mirror Coach Reed’s statements, “Our biggest obstacle is ourselves and we just need to focus on getting better each week.”

The team appears extremely focused as expected excitement over a Top 15 New York state ranking is tempered. “[The ranking] is nice but I don’t really look at it until the end. It’s tough to gauge when a lot of the teams don’t play one another,” said Coach Reed.

The players have learned their lessons from the tight-knit community that supports them, when asked what makes this year’s team different Franklin responded that “we’re closer and we listen to each other.” Even the young sophomore Miller, who could easily be swept away by quick success, an undefeated record and possible interest from Division I colleges keeps a cool head, “Coach has taught us that we can’t buy into the hype, we just need to work hard and keep our basketball IQ up,” he said.

That these players have come together as a true team is undeniable, when most teams hope for one big scoring threat the Royal Comets suit up three of the top eight scorers in Monroe County Division One. However, the Royal Three don’t just score, they rebound and pass as well and their numbers in those categories show how important those other players on the team are in the grand scheme of Coach Reed’s team concept: many players, one team, many people, one community, one result; and the R-H team is a shining example of the R-H community.

Paychex Will Host State of the County Address

Calling the growth of the innovation economy vital to Monroe County’s future, County Executive Maggie Brooks announced that her 2007 State of the County Address will be delivered at Paychex’s Henrietta operations center, located at 1175 John Street. The event will take place one month from today, on Monday, February 26 at 7:00 p.m., and will be covered live on R News.

“Entrepreneurship and innovation are the economic engines that are powering our economy. To build upon our successful efforts to create good paying jobs in Monroe County, we must continue to keep property taxes stable, while developing new entrepreneurial ventures and supporting start-up companies,” said Brooks. “Certainly, we need look no further than the story of Tom Golisano and Paychex to understand how powerful one person’s idea can be.”
-snip-

“The entrepreneurial spirit embodied by Paychex is key to our future success, and much of the job creation activity that is taking place in County government parallels this belief,” Brooks added. “In fact, that is why we created The Entrepreneurs Network – to help high-tech companies bring their ideas to the marketplace, maximize their growth and success, and thereby create more jobs. The Entrepreneurs Network has already helped 18 early stage companies get to the next level and is now working with its second class of 16 entrepreneurs from across our region.”
-end-

So to capitalize on and promote the supposed success of Brooks' pet project, The Entrepreneurs Network, she holds her State of the County address at a business that was well-established and succesful long before Brooks took office. And, as though he needed more help, Tom Golisano receives free advertising and an opportunity to keep his face in the public eye - I wonder how much Tom had to pay Minarik.

Colbert Report: The Word on Blogs

Up to Their Old Tricks

Sorry Joe, not this year -

The panel established to recommend replacements for former Comptroller Alan Hevesi has released their list of five candidates - no, wait, three candidates I guess, and surprise, surprise the Democratic legislative majority selected three downstate Democratic candidates.

First Spitzer appoints a Pennsylvanian as the Upstate Empire Zone chief and now our region does not get so much as a nod of acknowledgment in the oversight of New York's economic development. Those of us north and west of Albany continue to be politically alienated in a system dominated by a region that is geographically, economically and culturally unlike our own.

The dog and pony show public hearings, which were supposed to produce a final list of five candidates, divided 17 hours among 18 candidates. The panel made its selections based on the submission of a resume and just over half an hour of public statements. Could the public be any less informed on these candidates? The kicker is that Assembly Speaker Sheldon Silver has made it very clear that the legislative body is not obligated to make their ultimate selection from the recommendations of the panel, meaning that what little information the public does have on the candidates could be thrown out the window and an unknown Party tool could be inserted as the holder of the state purse.

Where is Governor Spitzer who has called for a political outsider and reformer to replace Hevesi? Eerily quiet . . .

Illegal Alien Murderers

Illegal Aliens That Murder or Murderers of Illegal Aliens?

Comments today on the Brother Wease Radio show brought the WBP's attention to this issue and the "data" being circulated by Congressman Steve King. King has recently made comments that places all out blame for a quarter of the nation's murders on illegal aliens. I did a quick search for the story expecting to find many refuting and tearing holes in Congressman King's argument, instead I found this one. I reccomend you read the entire article but I felt compelled to highlight a particular section as the publication seems to pay no mind to the fact that no federal entity has done an official study on the rate of murders by illegal aliens:

"But the carnage wrought by illegal alien murderers represents only a fraction of the pool of blood spilled by American citizens as a result of an open border and
un-enforced immigration laws." That's right, carnage, a giant pool
of blood.

What King is suggesting is that out of a total of roughly 16,000 murders a year in the United States 25% of those murders are committed by illegal aliens, a group which accounts for about 7% of the population.

I don't know if I am more discouraged by King, the voters who supported him (this is the same guy who called Joseph McCarthy an American hero), the author of the article and the editor who cleared it or the people involved in the creation and reading of the article that actually believe these outrageous claims.

Manny Continues to Play the Game

We Continue to Pay Him

In June of 2006 Rochester City Schools Superintendent Manuel Rivera announced that he would not be leaving the school system (again) and the community gave mixed reviews, some were tiring of his excuses for the failures of the school district while others praised his dedication.

The City School Board accepted Rivera's resignation from the school district effective in July of 2007.

In September Rivera announced that he was leaving Rochester to assume the position as head of the Boston school system. Those of us tired of his failings cheered that he would no longer be supported by the tax rolls, but not so fast - Rivera has decided that he will not be headed to Boston.

Not suprisingly compensation appears to be a determining factor as suggested by a quote from Board of Ed Chief Domingo Garcia in the Democrat & Chronicle: "Manny mentioned with me that he was having problems negotiating with Boston. That's all he said to me. That was some time ago, about two weeks ago," Garcia said. "He said 'we're having some difficulties and it's getting a little frustrating."

Rivera, it appears, will also continue to be paid by the residents of Rochester as reports circulate that Rivera will be named to a cabinet position with the Spitzer administration. Normally promotions are reserved for individuals who achieve, but in Rivera's case it is obvious that knowledge of how to play the political game is more valuable than displays of success when it comes to career advancement.

Find the Red Queen: COMIDA, 5Linx & Trillium

Following a story broken here by the Water Buffalo Press the Rochester blogs have been abuzz lately with talk of COMIDA's questionable investment in the Henrietta based company 5Linx. The history can be reviewed in the Water Buffalo Press archives, what follows is a summation of information gathered so far by the Press and its sources -

County Executive Maggie Brooks held a press conference last week to announce COMIDA benefits tied to a project involving expansion plans for 5Linx. The press conference, as well as some reporting on the event, was misleading as 5Linx seemed to be the sole beneficiary of the benefits. In actuality the incentives were passed along to LeFrois, the development company building the office park expansion, the second such incentive they have received on the property according to an official with Monroe County.

Unconfirmed reports suggest that 5Linx heads may have felt "pressured' by the owner/developer but these sources wish to remain anonymous and statements were unclear as to the type of pressure applied.

Rochesterturning.com refers to high-ranking 5Linx officials with former government ties, this is likely a reference to William Faucette Jr., former Chief of Staff under Rochester Mayor Bill Johnson and founder of the 5Linx Millionares Club. Faucette is likely the individual who has posted to this blog under the user name positive1. There is no information that suggests Faucette used his ties to improperly influence the funding process, but his ability to set up tours of 5Linx facilities for local bloggers covering the issue raise questions about his relationship with the 5Linx founders and how strictly the company adheres to the restrictions placed on businesses employing the MLM structure.

5Linx received COMIDA incentives in October on the purchase of VoIP equipment, the very same equipment that is billed as their breakthrough in the telecom industry and the same equipment that was likely distributed down through the 5Linx network of independent sales representatives for a profit.

5Linx was also the beneficiary of equity from a branch of the Trillium Group in Pittsford that oversees the investment of funds drawn from the New York State Common Retirement Fund. Funds directed by the office of the Comptroller are reinvested in businesses, these investments range from two to five million dollars. The direction of state funds by a private firm is questionable as there is no way for the taxpayer/voter to hold the decisionmakers responsible, however the practice is common across the state and is the sixth such investment by this branch of Trillium.

The legitimacy of the 5Linx business model is questionable, as is any that employs the MLM structure, but concerns are only multiplied by 5Linx founder Craig Jerabeck's questionable dispute with Verizon that resulted in the downfall of his former company @Wireless and the fact that neither 5Linx nor GlobaLinx is recognized in the membership of the Direct Selling Association whose membership includes companies like Avon and Cutco. Additionally, quotes from Jerabeck regarding the cost of operating a business in New York state and references to North and South Carolina suggest 5Linx was considering relocation; in which case 5Linx likely misrepresented their intentions to secure funding from Trillium, as I would hope Trillium is not in the practice of investing New York state tax dollars in companies who plan to relocate.

While none of these activities or funding initiatives are outside the realm of law the return on the investment for the New York state taxpayer remains to be seen. In all 5Linx has promised to create over 150 jobs in return for the incentives they have received, time will tell if they live up to their end of the deal. The numbers, however, do not illustrate a benefit to our area. Quotes from Maggie Brooks cite the investment of $6 million in the community from the 5Linx expansion, but the combined COMIDA incentives added to the possible $5 million investment by the Trillium Group, drawn from the New York State Retirement Fund, totals over $6 million in funding and tax breaks returned to the company. All this equals a net loss for our community. In the coming days the Water Buffalo Press will attempt to discern what guidlines, if any, exist for the receipt of funding from COMIDA and Trillium. We will also highlight COMIDA funding recipients as many, like LeFrois Inc., have received mulitple grants over the past two years.

The Water Buffalo Press will continue to monitor the project's progress and report as neccesary -

How Much Did This Cost Us?

From the "You have to be friggin' kidding me!" file (aka the Monroe Co. website) -


Monroe County Executive Maggie Brooks announced the County has launched efforts to educate, inform and prepare the public for a potential outbreak of Pandemic Flu. The outreach plan includes a new Pandemic Flu page on the County website as well as an educational brochure that will be made available at all Monroe County Wegmans pharmacies.

“Monroe County has been working aggressively with our partners at the local,
state and federal levels to develop plans, and be prepared in the event of an
outbreak,”said County Executive Maggie Brooks. “An informed public is critical
to the success of this plan, and I am grateful to Wegmans for their partnership
in this effort.”

“Planning for business continuation in the event of an
emergency is part of doing business at Wegmans. We fully understand that our
customers depend on us for food and medicine in times when other services may be
disrupted.” said Jo Natale from Wegmans Food Markets, Inc. “We’re pleased that
we can help by acting as a distribution point for these brochures. We have been
impressed with the efforts at the county level in every state, but we are
especially proud of Monroe County, because their collaborative process is one of
the best we have experienced.”

County Executive Brooks established the PIC Team six months ago to develop plans assuring that all segments of our community are reached with information should we ever face a large scale emergency like Pandemic Flu. The PIC Team is comprised of communications professionals from groups including: our local hospitals and medical community, the business community, local government, schools and colleges, public safety, and various community agencies.
-end-

Here's what the braintrust came up with to protect our community:
· Cover your mouth and nose with a tissue when coughing or sneezing. If you don’t have a tissue, cough into the crook of your arm or sleeve so you don’t get germs on your hands and spread them to others.
· Wash your hands often and thoroughly with soap and water. Use hand gels with alcohol if washing with soap and water is not possible.
· Try to stay at least three feet from people who are coughing or sneezing.
· Stay home from work or school if sick with respiratory symptoms.
· Keep a supply of non-perishable food, bottled water, and necessary medications to minimize trips to stores during an outbreak. Have a first-aid kit and a battery operated radio on-hand.
Stay attentive and informed. Don’t wait until pandemic flu has arrived to start learning and making plans.


This release officially confirms that everything you need to know you learned in kindergarten. Of what benefit is this to the community? I'm sure the Wegmans family appreciates the free advertising from the County but this appears to be nothing more than the political exploitation of a trendy issue and another excuse for an always classy, photo "pat myself on the back for doing nothing" opportunity for Maggie Brooks.

The website which the release refers to consists of nothing more than a photo of Maggie and a categorized list of links which all redirect to the same website, pandemicflu.gov, a third party site.

Thank you Maggie, we feel so much safer.

5Linx Update

Company Not Recognized by Direct Selling Industry

Website membership searches of the World Federation of Direct Selling Associations and the U.S. Direct Selling Association do not yield search results for GlobaLinx or its parent the Henrietta, NY based company 5Linx. Each website, whose membership includes companies like Avon and Cutco, indicates that non-membership is a warning sign that the company in question may not be legitimate.

NYS Government "Announces" Reform

From the NYS Assembly Website

For Immediate Release:
January 16, 2007

Silver, Spitzer Bruno Agree To Significant Budget Reform Measures

Silver, Gov. Spitzer and Senate Majority Leader Joseph Bruno announced major reforms to the state budget process. "With this agreement, we move our state’s budget process into the 21st Century with a strong constitutional emphasis on mutual respect between the executive and legislative branches in forging a fiscal plan for our state. We will continue to rely upon the joint conference committees, and we will have a more transparent, more easily understood budget process," said Silver at a Capitol news conference with Spitzer and Bruno.
Highlights of the budget-reform package include designating the state comptroller to resolve disputes over revenue projections; preparing ‘plain language’ impact statements on spending programs, including local governments; itemizing ‘lump sum’ appropriations, including ‘member items’; and resolving budget bill disagreements through joint conference committees.


The release sounds like the men agreed to enact these reforms, great - here's the problem: the men only agreed on a common piece of legislation that will now have to go before the Assembly and the Senate for a vote, all before the Governor releases his budget on January 31st.

COMIDA's Numbers Don't Add Up

The County of Monroe Industrial Development Agency approved incentives for four other projects at its meeting.
They include:
HOLT ROAD INVESTORS It is proposing to construct a 9,300-square-foot child care center on the west side of North Ponds Park in Webster, creating 33 full-time jobs. The incentive package totals $126,000.
ROCHESTER LODGING ASSOCIATES The company is proposing to renovate the 98-room Best Western Rochester. It would create five full-time jobs. The incentives total $99,000. NORTH FOREST PROPERTIES It is proposing to construct a 13,764-square-foot building at 105 Canal Landing Blvd. in Greece that would create 30 full-time jobs. The incentives total $188,000.
THE BENNETT GROUP The consulting and training firm, which specializes in education, is purchasing $112,621 in mailing equipment to be used at its training facility. The incentives total $8,900. - As reported by the Democrat & Chronicle

Fresh on the heels of reports that COMIDA had to revoke incentives to certain companies for noncompliance comes the announcement of another $421,000 in tax break incentives for child care, a hotel and mailing equipment. I have a question - why does Rochester Lodging Associates receive incentives totaling $99,000 for the creation of five jobs while Holt Road Investors who is creating seven times the number of jobs only receives $27,000 more in breaks? Also, what mailing equipment costs $112,000 and why is the County helping The Bennett Group purchase this equipment? This does not strike me as an instance of giving incentives to prevent a business from relocating, rather, it appears like the public subsidization of a private entity.

What's Wrong With This Picture?

- From the opening of the newest ESL branch at 215 Merchants Rd. in Rochester, the picture shows state Senator Joe Robach on the left and Assemblyman Joe Errigo on the right. What's wrong? Well, this branch in located in the 14609 zip code of Rochester, this zip is not represented by Assemblyman Errigo. There a few possible explanations:

1. Assemblyman Errigo (who is a member of the Assembly Banking Committee) somehow helped secure funding or incentives for the branch opening, in which case he was not serving the constituency he is paid a salary to represent.
2. Senator Robach asked Errigo to be there, in which case Errigo did not deem anything within his district to be more worthy of his attention than a ribbon cutting.
3. Assemblyman Errigo was simply trolling for photo opportunities because getting his picture taken is more important than being in his district or in Albany working.

None of these reasons are acceptable. If anyone who lives in Assemblyman Errigo's district (the 130th which stretches from Pittsford to parts of Livingston County) disagrees with me and doesn't mind their Assemblyman being paid to have his picture taken, please let me know -

5Linx - Legit or MLM Scam?

5Linx Gets Second Grant From COMIDA

The Democrat & Chronicle reported yesterday that COMIDA (which stands for the County of Monroe Industrial Development Agency and will be the subject of a story to come later here on the Water Buffalo Press) awarded a $600,000 grant to 5Link, a "telecom" provider based in Henrietta. The Henrietta Blog of the D&C praised the company for brining hi-tech jobs to the area, over 130 of them as reported. As I posted on the Henrietta Blog yesterday:

5Linx uses a business strategy called "MLM" or "Multi Level Marketing" to sell their "products;" what this essentially translates to is a Pyramid structure that recruits people to invest in a startup much like Tupperware or Cutco knives. They do not even sell their own products, they resell things like cell phone service and satellite tv. Much like the Fast Ferry founders and Maplestar, they receive millions in government funding and tax breaks under the guise that they will add "hundreds of jobs" only to see the C-level employees pocket the profits and split town. 5Linx currently employs 30 people and we are to believe they will add 130 in the next year through a work at home pyramid structure that forces their "employees" to recruit others? Neither COMIDA, nor Monroe County, nor the D&C, nor this so-called blogger have done their research and that is why our region continues to get swindled by moneymen who make big promises. Ever seen the Simpsons episode where the town decides to buy the monorail? - that's Monroe County and Rochester. Mark it down, 5Linx will never create that many jobs and despite what Maggie Brooks says in her photo "pat myself on the back for doing nothing" op this is not a company our area should brag about.
1/17/2007 4:55 PM

Another blogger, known as alocalbusinessman, posted that he has attempted to contact the HR department of 5Linx only to continually be routed into voicemails. Wouldn't a company poised to take on a massive undertaking such as the hiring of over 130 people at least need an HR department in place to oversee and train the employees?
But let's just say that 5Linx is legit and is as succesful as their C-levels would like us to believe, why then would they be in need of such a sizable grant from the government (the second such grant they have received)? One might answer to pay for the cost of the massive facility they are building in Henrietta, however, the building of the site was announced before the grant was received. By any measure, should our tax dollars be going to businesses so succesful that they expect better than 100% growth in the near future? Certainly a business so succesful would understand if we used 600,000 taxpayer dollars on something like education or our economically depressed City instead of a big fancy call center in a suburb that has no trouble attracting companies.

One of 5Linx claim to fame is the issue of Inc. 500 that names it as one of the fastest growing companies in America (based on projected hires that haven't happened yet), but even the magazine is skeptical about the methods employed by the company:

"What it does - Sells VoIP services and video phones to consumers and businesses through multilevel marketing. Why it's growing - The multilevel marketing model is designed to produce fast revenue growth. It also, of course, produces controversy in many cases. In 5Linx's case, CEO Craig Jerabeck says strong consumer interest in VoIP helps 5Linx sign up the direct sales representatives it needs to recruit."

There merits have come under the pretense of video-phone sales but an exploration of their website reveals that the basis of their business is the resale of cell phones, Dish TV and medical benefits cards. Last time I checked medical benefits didn't fit under the category of 'telecom.'

More to come -