Dec 14, 2011

Republican Rob Cornilles Exposed: A Sham Businessman

Republican Tea Party congressional candidate Rob Cornilles is campaigning as a small businessman and “proven job creator” in Oregon’s First District special election, but two investigative reports that surfaced this week show the reality that Rob Cornilles’ sports marketing business is a sham, and his campaign claim that he is a job creator is at best inaccurate.

While Cornilles claims his company, GameFace,  is one of the most influential sports marketing firms worldwide, it has abandoned its office space and only employs 4 people who work from home. And through Cornilles’ so-called GameFace training program, enrollees spent their time as unpaid ticket phone salespeople.  GameFace has also been plagued with ethical troubles, including employee complaints with the Labor Department, an $83,000 tax lien after Cornilles failed to withhold payroll taxes and letting his business dissolve for more than a year in his registration with the state.

“Oregon voters just can’t trust Rob Cornilles. Two independent media reports this week reveal that Rob Cornilles is dishonest about his business record from exaggerated and ever changing job creation claims to failing to pay taxes,” said Jennifer Crider of the Democratic Congressional Campaign Committee. “Tea Party Rob Cornilles’ exaggerations and half truths about job creation won’t get Oregonians back to work.  Oregon voters cannot trust Rob Cornilles to be honest about his own business record, and they certainly cannot trust Cornilles to represent them in Congress.”  

Background:

Claimed Business was “One of the Most Influential Consulting and Executive Training Firms in the Sports Industry – Worldwide.” In a 2011 candidate guide by The Oregonian, it was reported that Cornilles said the business he started was “one of the most influential consulting and executive training firms in the sports industry- worldwide.” The Willamette Week reported that “news reports have since shrunk those claims down to size, citing problems with regulators, tax liens and the fact his company is a ghost of its former self. [Oregonian, accessed 10/31/11; Willamette Week, 12/14/11]

Registered His Company at an Address He Vacated In 2008. In 2011, Cornilles registered his company at an address that he vacated in 2008. Cornilles listed 19125 SW 125th Court, Tualatin, as Game Face’s address to register his business “The only catch—Game Face vacated its 6,800-square-foot office at that location in 2008 to save money.” [Willamette Week, 12/14/11]

Business was Down to Four Full-Time Employee– Employees Worked Out of Homes. In December 2011, Cornilles acknowledged that his business was down to four full-time employees and two part-timers. The Oregonian reported, “employees now work out of their homes.” [Oregonian, 12/13/11]

Game Face Trainees Filed Complaint That They Were Unpaid Ticket Phone Salespeople. Cornilles agreed to pay just over $9,000 in back wages when three former trainees to his Game Face program complaints in 2003 charging that they deserved back wages. The three trainees filed complaints with the Oregon Bureau of Labor and Industries charging that they spent at least 11 weeks trying to sell tickets over the phone.  “Basically, we were paying to work,” says Catherine Turallo, one of the complainants who paid $1,395 to attend the academy. They got a few tips on their selling techniques, but essentially worked the phones all day long, she says. [Oregonian, 12/13/11]

Business Had “Problems” Such as an $83,284  Federal Tax Lien. In 2011, Cornilles tried to downplay the “problems” his business had, such as a federal tax lien in 2007 for failing to pay payroll taxes. “The company's other brush with authorities came in 2007 when the Internal Revenue Service filed a tax lien of $83,284 against Game Face after it failed to pay payroll taxes for nine months.” [Oregonian, 12/13/11]

Let Business Registration Administratively Dissolve for More Than a Year. Cornilles let his business registration with the state lapse for more than a year. He claimed the lack of registration was a simple paperwork error and that Game Face remained a viable company. On July 10, 2009, Game Face Marketing was administratively dissolved for not filing an annual report and paying the yearly fees. [Oregonian, 12/13/11; Oregon Secretary of State, Game Face Marketing 7/10/09]

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