Statements Outline Telemarketing Campaigns For Videos

Originally published June 26, 2006 in the South Florida Business Journal.

Doctors, lawyers and a variety of businesses say they were pitched by Boca Raton video companies to pay thousands of dollars to have their businesses included in videos featuring Michael Douglas.

Several say they thought the videos would be on PBS stations, but public television ultimately rejected the programs as not meeting its standards. The companies named as defendants in a suit are all in the same building at 370 W. Camino Gardens Blvd.

Among those making the pitches was Theodore Ritter, who gave a statement saying he answered a Monster.com ad to be a television producer with Paradigm Media Group (PMG).

He was given a script and told he would get a 20 percent commission on $23,100 underwriting fees.

"Certain portions of the script were altered in the version I received. For example, the contact information for 'Family Television Studios' was replaced with the contact information for Paradigm Media Group," he said.

A copy of the script was given to the court as an exhibit.

The script said underwriters would get a "high-end custom 6-8 minute demo tape (with Michael Douglas on it)..."

The underwriting companies were told it would be distributed to all 349 PBS affiliates.

PMG's goal was to close 50 transactions a month, Ritter said Bill Klump, who hired him, told him. Doing the math indicates that would generate $1.15 million in revenue.

Thousands for a sponsorship

Robert Ryniak, a software developer for Ingenuware Ltd., said another PMG employee called him in August to have his company included in "Learning About ..." if he paid thousands of dollars for a sponsorship.

Ryniak said he was told the program was for public television, which he assumed to be PBS. He checked the PBS Web site and found a disclaimer that it had no affiliation with the show or any of the Boca Raton companies.

Ryniak said he called PMG and questioned its solicitation practices. A PMG representative said its failure to clarify that there was no affiliation was not misleading.

Sharon Gardner, an attorney at the law firm Crain, Caton & James in Houston, said she was called by Infinity Media Group and solicited to sponsor a segment on end-of-life decisions and living wills, featuring Douglas.

Gardner also said she thought the series was for PBS.

She received a May 4, 2005, letter, describing the series and a $22,900 underwriter's fee.

Gardner's firm paid more than $15,000 to Infinity, but never received a copy of the segment, filmed Jan. 10, she said.

Douglas' attorneys also drove home the point about PBS. One filing said that Family Television issued a March 16, 2005, press release about Bio Tech Medics signing a contract.

"The 'Learning About ...' educational series is distributed to all 349 PBS stations in all 50 states," the press release stated. "The series has an expected reach of 30 plus million households."

In a May 13, 2004, letter, Family Television said the series was "scheduled for satellite uplink to all 349 public television stations beginning in November [2004.]"

However, there wasn't a distribution agreement until the following September, when WXEL in Boynton Beach signed on as the host station. But that agreement was short-lived.

Jerry Carr, president and CEO of WXEL Public Television and Radio, said both the National Educational Telecommunications Association (NETA) and American Public Television rejected the show as not complying with public television standards and practices.

In November, Carr wrote a letter to Bill Hough, the CEO and executive producer of PMG, to say the agreement was void because the series did not meet public television standards or FCC regulations. Terms in the contract allowed it to be canceled under those conditions.

Uplink doesn't guarantee broadcast

As for claims about where the show might air if it was uplinked, Gayle Loeber, head of programming for NETA, addressed that in a statement.

"There is no guarantee that a program, which is scheduled for satellite uplink or which is actually uplinked, will ever be broadcast," she said.

There is also no service to track when and where the short educational programs air, Loeber said. They are not listed in schedules and aren't tracked like ads on commercial television.

Loeber said she was contacted about "Learning About ..." by Scott Nurik, who said his New World Television was affiliated with a number of similar past and present companies engaging in the same business, including WJMK and Paradigm Media Group.

In December, The Business Journal reported that WJMK is a video production company owned and operated by Mark Kielar, who was embroiled a couple of years ago in a controversy involving Walter Cronkite that was written about in The New York Times and Time magazine.

Cronkite and WJMK exchanged lawsuits over a breach of contract issue that was settled.

Kielar was then listed on a state Web site as registered agent of 370 West Camino LLC, which owns the building. State Division of Corporation records show the property now has a new registered agent, James H. Batmasian, a Boca Raton property owner.

A look at the cast of companies, officers, registered agents

Video central

Attorneys for Michael Douglas used state records and witness statements to argue that "defendants are merely some of the related companies operating from the same building," 370 W. Camino Gardens Blvd., in Boca Raton. The companies are:

• Defendant: Family Television Studios
• Defendant: Paradigm Media Group LLC (doing business as PMGTV or PMG Television)
• Defendant: Infinity Media Group
• Not listed as defendants: United Media Communications Group, Global Television Studios and WJMK (which share a suite with Family Television), Profiles in Business and Mediaworks Television Studios

Company officers

A Business Journal search of state and court records found the following officers or registered agents associated with video companies at 370 W. Camino Gardens Blvd.:

• Tim Visser signed the settlement as president of Family Television and is also associated with Profiles in Business and Mediaworks Television Studios. He is also an officer for New World Television, at 2244 Glades Road, No. 342A, in Boca Raton.
• Mark Kielar is listed for United Media, WJMK, Acts Capital Investments LLC, Serenity Bay LLC, Black Mountain Ranch LLC and the nonprofit Cross TV, all at 370 W. Camino Gardens Blvd; and the nonprofit Cross International Aid, at 600 S.W. Third St. in Pompano Beach.
• William Hough signed the settlement as an officer of Paradigm Media Group. (State records show the registered agent is Ambassador Management Group Trust, 2929 SW Third Ave., Suite 320, Miami 33129.)
• Wali Waiters signed the settlement as an officer of Infinity Media Group.
• John M. McGuire is listed as CEO of Global Television Studios and Patricia A. McGuire is listed as VP. Their mailing address in state records is 2150 N.W. 10th St., Delray Beach 33445

Link to original article here

Actor Michael Douglas sues Paradigm Media Group

Originally published in the South Florida Business Journal February 28, 2006 by Kevin Gale...

Actor Michael Douglas sues Boca Raton companies

Actor Michael Douglas on Monday filed a federal lawsuit against two Boca Raton video production companies, alleging they offered him a position as host of an educational show that turned into an infomercial with ads for Mrs. Fields cookies, Hershey's candy, Wells Fargo online banking, TurboTax and other products.

The lawsuit, seeking more than $75,000, is against Family Television Studios (FTS) and Paradigm Media Group (PMG) of Boca Raton. A Dec. 30 Business Journal article reported the Public Broadcasting System said in the "frequently asked questions" part of its Web site it had no affiliation with the two production companies and others that were pitching a show featuring Douglas.

The lawsuit said a May 13 letter by Edie Gershon of FTS offered Douglas a job hosting a television series called "Learning About...." The letter, attached as an exhibit to the suit, described FTS as "a family-owned and operated national television production company that produces primarily high-end educational television for national distribution on networks such as Discovery Channel, The Learning Channel and public television."

The lawsuit alleges, in reality, FTS produces commercial programming including infomercials and advertising.

The Business Journal has left a message seeking comment from Gershon.

The letter said the show was "scheduled for satellite uplink to all 349 public television stations beginning in November of this year [2004]," but FTS didn't have an agreement with WXEL - television's channel 42 and radio's 90.7 FM - to do so as presenting station until Sept. 26, 2005.

Nov. 21, WXEL notified PMG the contract was null and void because the series violated Federal Communications Commission regulations and PBS guidelines and regulations for public television.

The suit said the series "amounts to nothing more than thinly veiled infomercials" and the defendants "always intended the series to air on commercial television stations."

One of the likely issues in the litigation appears to be the status of the agreement between Douglas and FTS.

The lawsuit states Douglas' assistant and director of public relations, Allen Burry, hand-wrote changes to an agreement that gave Douglas approval rights over the use of his name and likeness to promote the series.

The suit said FTS has denied the existence of the provision.

Douglas' attorney then wrote, on Dec. 20, there was no binding agreement because FTS never signed and returned one that was fully executed.

The lawsuit said the defendants, on Jan. 10, faxed a letter to Douglas' attorney with a copy of the agreement that failed to include all the hand-written notations.

The suit also says that FTS claimed Douglas replaced Mary Tyler Moore as the host of another television show called "Simple Living," but Douglas never had an agreement to do so.

An Aug. 10 episode of "Simple Living" aired on the Bravo network. The show featured Douglas five times in openings, closings and segues using footage shot for "Learning About...."

"Douglas, as the apparent host of the series, appears to be endorsing the products featured on the infomercial," the lawsuit states.

The Business Journal reported in December that FTS and PMG are in different suites at 370 W. Camino Gardens Blvd. Another occupant in the building is WJMK, a video production company owned and operated by Mark Kielar, who was embroiled a couple of years ago in a controversy involving Walter Cronkite hosting a program written about in The New York Times and Time magazine. The two parties settled after suing each other.

A television series host agreement attached to Douglas' lawsuit says the actor would provide services to WJMK, including taping of segments. The agreement says WJMK would pay Douglas $1,000 an hour for additional taping time.

Kielar and WJMK are not named as defendants in the suit involving Douglas.

Link to the original article here

Broward-Palm Beach New Times Article June '03

How Much Does Credibility Cost?
Boca Raton video producer Mark Kielar signed Cronkite, Brown, and Safer to host thinly veiled advertisements -- until the deal fell apart By Wyatt Olson
Original Article Published on June 12, 2003 in The Broward-Palm Beach New Times

In the journalism world, hawking goods is a sin approaching that of plagiarism. So when the New York Times reported in May that a Boca Raton video-production firm had hired three of the most recognizable newsmen in America as pitchmen, the upshot was malodorous publicity all around.
It all started early this year when WJMK Inc., which produces short "educational" videos for public television, signed former CBS news anchor Walter Cronkite and CNN's Aaron Brown to introduce segments of its medical-themed series American Medical Review. They were replacing 60 Minutes' Morley Safer, who had worked for the company for four years, appearing in hundreds of videos.
This was just the latest of the 17-year-old company's big, ambitious projects, according to WJMK publicity. "With cutting edge content, award-winning producers, and network-quality production," says the company's website, "WJMK features issues that have impact both nationally and internationally, and features interviews with some of the most prestigious names in the industry."
In a photo posted on the website, there's Cronkite himself, radiating authority in a black jacket and crimson tie. The acronym AMR, for American Medical Review, is posted on the wall behind him, and a television screen beside him flashes the name of the health-related series, for which Cronkite is touted as the "host." An accompanying bio trumpets the 86-year-old former CBS news anchor as the "Most Trusted Man in America."
But last month, the deal started to unravel. On May 7, the New York Times reported that the American Medical Review series appeared to be thinly veiled ads for corporate sponsors. According to the Times, the sponsors of the videos, often pharmaceutical companies, have broad discretion in editing the tapes, providing the raw information, and having final-cut rights before broadcast. In effect, the pharmaceutical companies were paying for the credibility of major news figures, in at least one case shelling out a six-figure fee to Safer for a single appearance, the New York Times said.
The report sent Brown and Cronkite scurrying for cover. Both have now sought to distance themselves from WJMK, which is owned by Mark Kielar, a controversial South Florida businessman and born-again Christian who has a long, litigious history, including complaints of sexual and religious harassment from female employees. Cronkite and Brown have both formally terminated any relationship with the company, with Cronkite demanding that the company remove any reference to him on its website.
For Cronkite, Brown, and Safer, as well as for ABC's John Stossel, who appeared in earlier WJMK-produced videos, it was the kind of situation that could undermine careers. "In order for journalists to maintain their objectivity, they have to remain free of commercial interests," explains Jill Geisler, a former TV news director now on faculty with the Poynter Institute in St. Petersburg. "Clearly, you do not see Peter Jennings endorsing products. You don't see Dan Rather with the Nike swoosh on his blazer." The WJMK controversy, of course, revolves around a more subtle form of advertising, she says, but it underscores an Achilles' heel in television reporting. "In broadcast journalism," Geisler says, "we sometimes use the producer approach in which a recognizable journalist may not have done any of the research himself."
A spokeswoman for Cronkite says the revelations about corporate involvement in the project have removed any contractual obligation on Cronkite's part. "The contract, as far as we are concerned, has been breached," she said. Brown and his bosses at CNN said the same, asserting that "WJMK is not sufficiently independent to satisfy the editorial standards of CNN or Aaron Brown." And a CBS spokesman reportedly said that Safer had determined that working for WJMK was not consistent with CBS News standards.
According to critics, the company's aura of public service, its use of well-known spokesmen, even the company's name have allowed WJMK to assume a mantle of credibility that disguises a more mercenary agenda. "I think what they're doing is very clever," one local television program director says. "Do I think it's deceitful? I mean, to name your company four letters that don't make a word, beginning with a W, well... " The company charges about $15,000 to produce two- to five-minute shorts, which have medical experts talking on television news sets about health issues, according to the New York Times.
The brains behind WJMK is the Massachusetts-born Kielar, 43, a 1981 graduate of Bryant College in Smithfield, Rhode Island, where he majored in marketing. Once describing himself as "socially aggressive" in his younger years, he is now a high-energy Christian proselytizer. Kielar recently named Jesus as his hero and declared that if his house were burning, the first item he'd get out after his family would be his Bible.
Kielar responds irately to the article in the Times, from which he has demanded a retraction. "It's just a smear job, basically," he sniffs.
In 1983, Kielar moved to Fort Lauderdale, where he worked as an investment broker, and in 1986, he founded WJMK, one of the first television-production companies to form after federal deregulation of the broadcasting industry in 1985. Lately, he, his wife, and their five children have been spending a lot of time spearfishing. In 1998, as described in a New Times story, Kielar and Bob Coy, pastor of Calvary Chapel in Fort Lauderdale, launched Cross TV, a Christian cable station. It's still a Kielar property, though he and Coy have ended their partnership because of "doctrinal" differences.
Having weathered accusations of sexual harassment, Kielar is usually reluctant to talk to reporters. But the recent bad publicity makes it hard for him to keep mum, he says.
Kielar contends that the contract Cronkite signed was different from previous ones with, for example, Charlton Heston or Stossel. The provisions were vetted by a former attorney for the Public Broadcasting System to ensure that they were "public-television compliant," Kielar says. Cronkite's segments were to have been created from raw footage the company had collected while shooting promotional videos for various companies for a fee. "We create independent stories that are public-television compliant about technology or information," he says. "They don't mention companies by name. It's not an endorsement in any way. That is what Mr. Cronkite was associated with." Funding for the series comes from underwriters independent of the subject, he maintains. For example, a cruise line might underwrite a segment on heart surgery.
However, recent New York Times stories, citing contracts between WJMK and video sponsors, said the companies were allowed to re-edit scripts and give final approval of finished segments.
Among some of his former WJMK employees, the handsome, athletic-looking Kielar can allegedly show a far less pious image than the Bible-loving company president likes to display in public. For example, Laura Bailey, Miss University of Miami in 1984, filed suit in 1991 (two or three years after Kielar was born again) contending that Kielar and top managers showed an X-rated Christmas-party video in which Kielar and other managers dressed up as women employees and simulated sex, according to the Palm Beach Post. In one scene Kielar, dressed in leather and depicting Bailey, allegedly pretended to masturbate. He then portrayed Bailey, who was working for WJMK as a marketer, giving oral sex to a man in a blond wig, the Post reported. During the party, Kielar and others encouraged a manager to drop his pants in front of the sales staff. The manager did so, exposing "his entire genitalia," the Post wrote.
Bailey dropped her suit in December 1992 after signing a confidential settlement with the company.
More recently, two former employees charged that Kielar's religious fervor went too far in the workplace. Rozanne Sonneborn asserted in a lawsuit filed in January that after the company discontinued direct deposit, it began giving employees paychecks in envelopes along with quotations from the Bible. Sonneborn, who is Jewish, objected. She was terminated a couple of months later. She was told that it was part of an economy-driven downsizing, but she contends it sprang from her objections.
Michelle Subwick filed a similar civil complaint in April, claiming she was fired after refusing to attend in-office Bible studies, where she had witnessed another employee being accused of having allowed Satan to "infiltrate" her life. Kielar fired Subwick in 2001, telling her that she was a victim of "spiritual warfare" and that "getting fired was a blessing and was God's will."
Kielar declined to comment about the two lawsuits. But he is philosophical about his loss of Cronkite as a spokesman. "You can't blame Walter Cronkite," he says. "For 65 years, he's never endorsed a single product. We knew that and understood it, and we made sure we weren't in that ballpark."
Even if WJMK eventually produces the series, the company, given its record, faces a skeptical reception. Steven Weisberg, program director for WLRN-TV (Channel 17), South Florida's public television station, says that WJMK's past offerings have been discussed among PBS decision-makers. He has declined to run them on WLRN. "It just seemed to be the consensus that the material was suspect of being free from commercial influence," he says. "It's like the definition of pornography: You know it when you see it."