Company sued Texas AG on probe, offspring faces similar charges

Rob Luke Aug. 9, 2007, 7:48am

Greg Abbott

AUSTIN -- A company whose predecessor is also the target of a probe by Texas Attorney General Greg Abbott shouldn't expect too many favors from the AG should it ever come under the microscope.

After all, the response of Great Western Business Services (now National Business Capital Services) to an earlier demand by Abbott's office was to slap a lawsuit on him, accusing the AG of a "fishing expedition."

Abbott's investigation followed a 2001 report alleging GWBS preyed on sellers of small businesses. The company filed suit against Abbott's demands in December 2005 and was later sold to NBCS in June 2006 with Abbott's probe still on-going.

Company officials say they filed the suit because Abbott did not give the company enough time to meet the deadline for producing the documents. The article accused GWBS of collecting thousands of dollars in brokerage fees from from prospective sellers but not delivering sales.

Abbott's action was solely to the ongoing probe into the now-sold GWBS, the Dallas Morning News reported recently. Now attention is on a second company started by GWBS founder, Dr. John Binkley.

GW Equity, a business-selling consultancy Binkley launched in January 2005, has recently brought suit against three former employees, DMN reported. They have leveled similar charges to those Abbott was originally investigating when GWBS sued him.

GW Equity is also suing RipoffReport for publishing a series of negative reports against the company based on what it alleges are bogus complaints posted by the former employees. RipoffReports posted another negative report on GW Equity last week.

GWBS and Brinkley were penalized in Minnesota in 2000 for failing to appear at a pre-hearing on charges of selling real estate and franchises without licence or corect filings.

Abbott's inquiry into GWBS's business practices is continuing now that the company has turned over documents to the AG.

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