Should Suzanne Clifton face criminal charges?

Here’s the run down a local story that epitomizes the sheer greed only the worst of business leaders can possess regardless of age or gender. It’s also an argument against staffing agencies and outsourced HR/payroll firms and a testament to why any company considering itself worthy of being an employer of ten or more people should be able to process it’s own payroll and benefits internally.

Back to Suzanne Clifton. Here’s a woman who lives the high life, or so I hear. She’s the former President and sole share holder of The Castleton Group, a HR and payroll “partnering” firm that would handle these two critical pieces of business for smaller, local companies in Raleigh, Cincinnati and Asheville. It sure sounds to me as though Clifton was likely responsible for the most top decisions made for a company she went to great lengths to identify as hers exclusively. She even boasted about her business background and community service on the Castleton website.

In October of 2006 Clifton must have used her ego, reputation, and possibly money, to get named to the North Carolina Professional Employer Organization Advisory Council by the The North Carolina General Assembly. They appointed her to the council through 2009. She’s probably still a member of the council. Why is this important?

Let’s start at the beginning of Clifton’s and The Castleton Group’s bad decisions. Jay McLamb, Castleton’s former CFO, filed false federal payroll tax forms between 2005 and 2007. They didn’t pay almost $8 million in federal payroll taxes as a result. Let’s pretend for a minute that Suzanne Clifton knew nothing about Jay’s naughty behavior. Regardless, she hired Jay and didn’t have an internal audit trail to disclose fraudulent activity of this magnitude in her own company.

So the problems begin compounding. Because of this “clerical error”, which Castleton insists they reported when the problem was discovered, the NC Department of Insurance did not issue the necessary Professional Employer Organization license to Castleton twice between 2005 and 2007. Was this ever disclosed to ANY of the businesses Clifton, er, I mean Castleton handled benefits and payroll for? My guess is that a notice was not sent to their client base emphasizing they were operating illegally(?) at various intervals.

Edit: I am not certain that Castleton ever operated “illegally”.  They operated without the necessary state licenses from the NC Department of Insurance.  So they operated “unlicensed”.

It appears with $6 million currently due in back taxes from apparent fraud and no operating license, the NC board of Insurance deemed The Castleton Group insolvent on Dec. 4, 2007. Immediately Clifton found a PR firm (one that she could afford) and declared “We’re open for business under appeal”. Still no admission of a problem. By December 18th Clifton declared bankruptcy and listed 5000 debtors, most of which are employees of Castleton’s clients.

Many families had to go into Christmas wondering if they would have insurance coverage for which premiums had already been docked from their paychecks or if they would be receiving another paycheck at all while employers scrambled to internalize or change payroll providers. And who can these employers hold responsible? No one because the Castleton is insolvent and Clifton is probably privileged to numerous layers of incorporation protections for her personal assets. Assets which, according to Wake County property records, include a 2004 Mercedes valued over $42K and at least two houses worth just over one million combined. Smells like Clifton’s clients suffered the ramifications of an old woman’s greed, not just her bad business sense.

Two big questions remain in this story: Does Suzanne Clifton deserve to be on the North Carolina Professional Employer Organization Advisory Council based upon her stellar judgment we have seen displayed to date? Second, should there be further investigation to determine if she should face any criminal charges for negligence if nothing else? I’m forwarding these questions to WRAL reporter Cullen Browder to see if the media can do any damage to the matter.

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Southerner
14 years ago

Dear Yankee, my guess is that their money will eventually run out even though being the cowards that they are, they got out of a lot of debt due to being bankrupt. Assuming that authorities ever finish building the case against her, I just can’t wait to see Suzanne’s mug shot and the video of her as she is being walked in handcuffs to her prison cell. I can’t think of anyone more deserving (other than her son of course). Poor fella, what will he do without his mommy around??? That stupid grin of his will suit him just fine as a greeter at Walmart. I am amazed (ok NOT really) at how many enemies these people have made over the years by treating people the way they do.

Linda
14 years ago

You people are hopelessly stupid, ridiculously small minded and certainly have never aspired to greatness and definitely have nothing else to do. This blog is funny and cruel and definitely not suited for professionalism. It is definitely jealously and opinions that are so small minded. What is wrong________you all cannot be somebody so you shoot down the ones that are with your shallow opinions. Always blaming someone else for your lack of doing well. Get up off your ass and do something that is important and maybe one day someone will be jealous of you and want to throw darts like this at you___and you all definitely are talking out of one side of your mouth because you DO NOT know the TRUTH and would not know it if it fell in your lap. You are sad and pathetic and definitely not blessed by God by what I have seen here. AND, to bash an event like the Jimmy V and those who do their best to help_______may God not give you or someone you love cancer one day for all of what you have said about something that you could never do. Call these people and say these things to their faces?? Just what I thought___CHICKEN !! Go find something in your life that is the truth and can be proud of who you are and what you can be judged on that you and God are proud of in the hearafter. Because this kind of stuff will never get you anywhere or with anyone. Hide and do this stuff and you will always be one step behind those who try to do it right every day.

Jackie
14 years ago

As a former employee of one of their small companies (there’s not that many of us, we are not talking a large corporation here), I have remained fairly neutral on this blog (not because I wanted to but because it was the right thing to do in my mind). However, I have to say to Linda, why would anyone be jealous of a fake lifestyle? We all knew it, they talk about everything in front of all of their employees and are not discreet about anything. I don’t know of anyone that would be envious of someone who may be getting ready to be incarcerated, and I think anyone who has ever posted anything on this site would be more successful than any of them. If you think it’s because they have a place at the beach, there are plenty of us that have that, so what’s the big deal? And guess what, we paid for it with our own money which was earned. It’s okay, Linda, they have fooled you like many of us in the beginning. They just can’t be the high rollers anymore that they always tried to think they were. We all knew the truth, and justice will prevail.

Esther
14 years ago

Jackie. Linda was not talking about a lifestyle. She was clearly talking about jealously and opinions that are not based on truth and the last part of your email reaks of someone elses demise. Remember that Jesus was hated by many but he won in the end. Opinions without truth are just exactly what Jesus had. Everyone has an opinion just like everyone has an asshole. BUT, those who are the smart ones and have an impact in this life sit on their opinions if they do not have the truth just like they sit on their asshole. Your jealously came out Jackie and you want these people to suffer. You need to ask God to help you with your anger and checking on e-mails that are small minded.

And, Todd there were 4 parts of your e-mail that was not the truth. And, you are not as smart as you think if you believe the media and government investigators. Remember. that is how attorneys make their money is by defending what is printed that is half truths. And, you want to aspire to Jay? Look where he is going?

Jackie
14 years ago

It is sad that you talk about Jesus and a-holes in the same breath. Classy! Only she would think that anyone would be jealous of her and that is all I will say about that. I really don’t think most people care that much. We are just all sick of the arrogance and belittling of others. I don’t want to see anyone suffer but I do think that those who are proven guilty, should have to pay for the harm caused to others. And as for all of your a-hole comments, I guess it takes one to know one.

God doesn't Blog.
14 years ago

Folks, enough with the Jesus talk. I know the Cliftons, I know the Savages…I know they’ve done wrong, as does J-Man; so please, stop telling us to turn to Jesus….I worked for them, all of them, as did many of these bloggers…we aren’t ALL wrong. Funny how we, the people that worked with them day to day, all have the same opinion. No one is jealous of The Cliftons or either of her sons; I urge you to tell me what any of us are actually jealous OF. Impending lawsuits? Attorney fee’s that will easily double the price of her beach house in Wilmington? A name dragged through mud because of their own actions? Hey bloggers, any of you guys jealous of that? Didn’t think so.

Suzanne used to say (and Brooks repeatedly quoted her) “you can’t make chicken salad out of chicken shit”. Oh boy, oh boy…were you right.

Todd, thanks for your blog; even though God doesn’t read it, lots of people do 😉

southern girl
14 years ago

Linda, you are either Suzanne or you have been around her so much, you sound just like her!

How very sad all of this is! Again, a case of someone not taking responsibility for their actions. This is not the first time Suzanne has alleged she has had a “problem” with the hired help.

At some point, personal accountability does come into play. You build the business, you reap the rewards but you also accept the hard knocks! At any point has this “business” ever been successful! It sounds like it has always been on the edge and it’s only true value was based on your “name value”. You stated you had assetts of over $12 million, but have now filed bankruptcy alleging $12 million in debt! I would hope that you took whatever assets you think you had (other than name) to “make right” the horrible situation you created. I somehow doubt that is the case! Please stop trying to be the victim in all of this, it just does not apply.

$12 million for you and $10 million for your son! My goodness, what kind of life style was he leading? What about the other family members in your “businesses” how much pain and embarrassment have you caused them!

Sad to say, you have “scrapped” yourself through so many different life situations, but I think it has caught up with you now. I hope this just might change your perception of yourself and your treatment of others. After all, it is just a little bit late in life to be “acting up” like this!

BJ
14 years ago

I heard that Suzanne’s middle name is Esther. lol

avictim
14 years ago

She launches multi-hundred thousand dollar law suits against anyone who has first hand information about her dealings forcing those innocent folks to fork over thousands of dollars in legal fees to defend themselves. She then settles with them (even though there was nothing really to settle) by having them sign gag provisions keeping them from making her escapades known which would have hurt her business.

The house of cards finally fell apart and I can’t think of it happening to a better family.

If Jay’s info helps in convicting Suzanne I would gladly contribute to a legal defense fund to help Jay. He finally stood up to her albeit on the late side.

Has She No Regard For High Morals?
14 years ago

I just saw where Suzanne Clifton was recently appointed to a 3 yr term as a member of Chowan University’s Board of Visitors.

“Fifteen new members were recently elected to serve on the
Chowan University Board of Visitors through 2012. The Board
of Visitors is a group of outstanding men and women who
enjoy positions of leadership and influence in their respective
communities as well as on a regional or national basis.
New members with terms expiring in 2012 include: Donna
Phillips Askew (Winterville, NC), Suzanne S. Clifton (Cary,
NC)”

What???? Are you kidding me?? She a member of a group of outstanding men and women who
enjoy positions of leadership and influence in their respective
communities as well as on a regional or national basis? What position of leadership does Suzanne Clifton hold? What influence does she have in her community?

See the link for yourself:
http://www.chowan.edu/news/paper/08-09/CU-CONNECTS-Winter.pdf

Furthermore…appointed once again to the The Jimmy V Board of Directors? “The Jimmy V Board of Directors, Division Managers, and volunteers are the backbone of the Jimmy V Celebrity Golf Classic and Junior Golf Classic. Each member offers valuable input and ideas that make the Classic a distinguished and memorable event year after year. Their contributions of support and time are much appreciated.

Board Members
Dave Benevides
Suzanne Clifton
George Dennis
Richard Donnelly
Michael Martin
John McCabe
Frank McCann
John Roos
Steve Stefano
Tracy Sternberg
Pam Valvano Strasser
Nick Valvano ”

Even if some nutcake nominated her for any highly regarded public organization,including an institution of higher learning and a cancer fund, she should have gracefully declined. It’s amazing to me she still believes she has no criminal liability in the Castleton downfall. How embarrassing for these groups if she goes to the pen before finishing out her terms.

BJ
14 years ago

Yes, Todd, you are right. Rumor has it, that is the reason why ESG was “voted” to be one of the top places to work, etc, because they paid MMI. It’s no secret MMI was the firm that they hired to do their PR work, so this stuff about leadership, etc, was all part of their marketing plan. And as far as Chowan University goes, she likes to brag about that, but where the hell is Chowan University anyway? It’s a small school somewhere in NC that no one has even heard of really and anyone can get accepted there.

non-affected party
14 years ago

Looks like McLamb got a little of what he deserved.
http://www.wral.com/news/local/story/5964918/

non-affected party
14 years ago

Also, word on the commercial real-estate market was that ESG bailed on a huge lease and was scrambling to find a place to operate their business.

BJ
14 years ago

http://www.wral.com/news/local/story/5964918/

New article on WRAL today. Jay got sentenced 2 1/2 yrs jail time. No word on Suzanne.

affected party
14 years ago

Yes, they are working out of someone’s house in Cary because they can’t afford the high rent district anymore.

Ex-Vendor
14 years ago

I used to be a vendor for the Executive Staffing Group (until they stopped paying and I just stopped doing work for them). But there was an employee, that I became friends with, that I want to make sure is okay. I always felt she was a good person caught up in a bad situation. She was the office manager and quit many years ago. Would anybody here be able to help me find her? I don’t want to leave her name here but if you worked at ESG 10-15 years ago you’ll probably know who I’m talking about. My email address is RetiredCoach01@gmail.com

Dudley
14 years ago

I heard a radio ad for Executive Staffing Group this morning. The company needs a whole bunch of people for some customer. Looks like they are out of the woods and won the battle.

Wow, who would have thought? I guess congratulations are in order!

Congrats? R U Kidding Me?
14 years ago

Desperate times call for desperate measures. Don’t kid yourself. If ESG ever did turn around, there are so many people coming out of the woodwork against Suzanne Clifton and her Chapter 11 bankruptcy, she couldn’t ever rub 2 nickels together again. It will be even worse when all federal and state criminal investigations are complete.

Perhaps that radio ad was paid with that $18K “BONUS” Ms. Clifton paid herself just a few days prior to Castleton’s Dec 22nd, 2007 bankruptcy, while she deceived clients by not truthfully telling them that she could not/would not fund their 401K’s, their medical claims payments and payrolls.

Don’t believe me? Just check PACER, the link is pacer.login.uscourts.gov

Dudley
14 years ago

Exactly. Her 2007 banbkruptcy. Here is a news flash, it’s going to be 2010 shortly. She made most of her money at Executive Staffing and she will do it again. Lawsuits against her personally will not affect the company if she isn’t the registered owner. The civil matters will be resolved and the bankruptcy will shield her from actually paying anything. She will always be able to pull a sizeable paycheck from Executive to live on. And lets face it, it’s been years now – still talking about criminal charges is laughable.

Let me know how that works out for ya Dudley
14 years ago

It aint over til the fat lady sings… And laughing at the possibility of no criminal charges??? Hey if Dudley isn’t Suzanne or Brooks, tell her, “Happy Holidays”! She’s gonna need it! January 2010 is coming quick! LOL

Observer
14 years ago

Well its now been 2 years since the Castleton Group fiasco began….when will we begin to see these folks brought down? Will Jay McLamb actually go to prison in Jan? Will Suzanne Clifton actually be charged (isn’t that why Jay has languished in freedom this long?). Hopefully Todd you will post an update on this saga soon.

Sonya (Jay's wife)
14 years ago

No need to wait for the media outlet to report on Jay. Jay will report to prison in January. He will be reporting to Hopewell VA by noon on January 15th. And Yes, that is why Jay’s reporting date has been delayed. Will more charges come? Who knows…BUT…they should. Depends on political connections.

Sonya (Jay's wife)
14 years ago

Oh and one more thing. Observer,or anyone else who has an interest or gripe, my cell is 919-696-3944 if you care to comment or discuss rather than hide your identity behind a computer screen. You see, unlike others…we have nothing to hide. Nothing but the truth has been given by the McLambs since Jay brought the whole tax issue to the attention of the IRS. (No he didn’t get “caught” by Suzanne or anyone else – he finally came clean about everything and has been truthful ever since).

Also, Jay may not be in the best position to share everything he knows due to legal ramifications, but if another or others are not implicated criminally, I will have alot to say publically that IS the truth about involvement of others. There is nothing stopping me. I may not have known what Jay was doing from 2005 through November, 2007, BUT I DO know alot about other things from 2003 until the closing of Castleton in December 2007.

Pat
14 years ago

Sonya,

I have to say I am impressed with how you are handling these comments. It would be easy to ignore these comments, but you choose to address them head on.

Regards,
Pat Donnelly

A Former Client
14 years ago

Talk about audacity- First she screws the clients and client employees of Castleton now she is screwing the people of Wake County.

The Cliftons are delinquent on $6K of real estate taxes on their residence in Cary which were due in Nov 2009 and deliquent after Jan 6, 2010.
https://services.wakegov.com/ptax/main/billing/acctsummary.aspx?search=re&yrs=2&prev=re&id=0173035

However the Cliftons paid $65K (thats right SIXTY FIVE THOUSAND) in real estate taxes for their home in Palm Beach in Nov 2009.

http://www.pbcgov.com/eTax/eTax/property/payment_search.aspx?Fpcn=68-43-42-08-23-000-0680&Inst_num=0&Coll_num=425199260&Year=2009&FeeTaxYear=2009&PCN=68434208230000680&ExternalReq=&table_type=&cert_yrnum=&sFlag=

Thankfully on Jan 4, 2010 the US Dept of Labor has filed a complaint against Suzanne for her activities in diverting funds from 401k and health care premiums.

EyesWideOpen
14 years ago

WOW!!! Suzanne owns a $4 million dollar house?? OK – I see now that 2 + 2 does equal 4! I knew when I worked there that there was some shadey things going on, but man, this takes the cake. How are these people getting all this money, with a staffing agency that only has 4 job postings? If I can make that type of money with just 4 job postings, then I want to get in that business! When I was there and didn’t know anything about this Castleton thing, people would bad mouth me, because I work there. Didn’t know why until now. Glad I am out of there.

my two cents worth
14 years ago

It is my belief that Ms. Clifton hopes to sell her Florida property for a couple of million more than she paid for it, then use that couple of million as a basis to get the bankruptcy courts to accept her pathetic Chapter 11 reorg plan.
If her previous bankruptcy attorney, Stephanie Humrickhouse, now an appointed bankruptcy judge (how convenient), had any luck on Dec 31st, she convinced the IRS to back off on the repayment monies they have hit her with. Let’s hope that didn’t work.

It is disgusting, deceiving and conniving in my opinion if the bankruptcy courts accept any Clifton repayment plan. Greedy Ms. Clifton ideally, will attempt to keep all her homes, Wrightsville Beach, Florida home and Cary home, and could potentially be successful, IF the courts accept her repayment plan and she sells the Florida property for a couple mill more than she paid for it. Let’s just hope the courts decide to disallow the discharge of any of her IRS and mortgage loan debts AND decide not to accept her repayment plan. Force the witch into Chapter 7.

How Is It . . .
14 years ago

How is it that Jay McLamb is now serving prison time but Suzanne Clifton is not?

A Former Client
14 years ago

Jay fessed up when he got his conscience back. Suzanne never had one.

Sonya
14 years ago

I’m getting angrier by the day that no action has been taken yet. If this ends up being an “OJ” situation, I will have lost all faith in the judicial system. The ripe fruit is there, just hanging for the picking. If you agree, write your newspaper editors, write your Congressman. Demand action be taken.

For any of you who hope the civil system finds justice, even if the criminal doesn’t, make plans to attend Suzanne Clifton’s big day in bankruptcy court in Wilson, NC on February 24th. All sorts of creditors will be there making their cases, but the best of all….IS JAY’S BIG OPPORTUNITY to testify against Suzanne face to face. He’s coming back – halleluyur! Dirty little, and BIG, secrets can finally be revealed, under oath, and in a PUBLIC forum.

Do I sound bitter? You betcha. I, for one, will not let this die.

Sonya
14 years ago

Willful blindness is criminal

She's right
14 years ago

“Willful blindness (sometimes called ignorance of law, willful ignorance or contrived ignorance) is a term used in law to describe a situation in which an individual seeks to avoid civil or criminal liability for a wrongful act by intentionally putting himself in a position where he will be unaware of facts which would render him liable.”

GO FOR IT JAY!

sad4all
14 years ago

First of all, Sonya, prayers are truly with you and your children. This has to be the most difficult time for you. On the other hand, rightous anger is a good thing! It is time for all of the facts to come out. Suzanne is bragging to everyone about how “above this” she is! Accountability and responsibility is needed for all! I will be there on 2/24 as I hope many others will be. It is time for the judicial system to know that we are sick of this kind of behavior! I hope this is widely covered if not in the news, the results posted in detail on this blog. We all look forward to Jay’s side of the story, as I have no doubt there is a lot of truth to it.
Please continue to keep us updated. The more that is known the sooner nonsense like this stops in our society!

For Suzanne, shame on you, at 68 years old to behave in this manner. It is time to act your age and accept responsibility for your actions. Look what you have dragged your family into..what happens to their futures after you are dead and gone. What a role model. To say that you have risen from rags to riches..no thanks, if this is the way to do it. Money is only money, your name is mud now. I would hate to have reached this stage in my life and have this hanging over my head!

DJ
14 years ago

I wonder if I need to show up since they owe me back pay?? I used to work there and was let go for no reason they could tell me, but received my last paycheck and ESG shorted me 2 days of pay and travel. Plus I found, hearsay, out they did not pay the Insurance premiums on a few people there. I guess it all starts again. Man I was hoodwinked by this group. I truly hope the people get there peace they deserve.

Nancy
14 years ago

Sonya, I am so sorry you and your family are going through this. I know your husband has admitted wrong doing and is paying the price. Like someone said before, he has a concience, Suzanne does not! I hope that Jay’s testimony will bring charges against Suzanne.

I am the one who posted several months back about working for her over 20 years ago and found her to be extremely arrogant. She laughed in my face for wanting a raise. :)For her to act like Jay did this on his own and she knew nothing is laughable! Poor pitiful Suzanne! NOT!

Notice Sonya, how the posts are changing. I think you are finding more support now. I hope that gives you some comfort. Hang in there hun! Nancy 🙂

Nancy
14 years ago

I am now living in RI, so I cannot be there, but I am glad sadforall and others will be there to add support. Why should Jay take the fall for everything? Make sure to give Sonya a hug for me!

Sonya
14 years ago

Looks like everything for Suzanne’s court date in Wilson on Feb 24th has been continued.

TinkerBell
13 years ago

Any word or anything new on this? Is the bitch finally going to pay? Or is she using another excuse like the rest of them within the company?

anon
13 years ago

Rumored court date coming up July 20th in Wilson.

Sonya
13 years ago

The court date is scheduled for July 20th but will be held in Raleigh. This is the IRS civil case against Suzanne Clifton.

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