Re: FW: Summary of Discussions and Ideas

I will try to see gerald in paris.. I think it is
important htatyou talk to him and get an agreement
watever the agreement is... you need to have some
weight to start again i n NEwYork

--- Jeanluc Brunel jeanluc@mc2mm.com wrote:

I am sending you a e-mail from Jeff that has
summarized our discussions
It is long. I hope that you will have time to read
it.
On the line of credit around 90.000US$ went to E
The rest is advances to models secured by the
receivables.
I will call you in Paris tomorrow
Take care
JL

-----Original Message-----
From: Jeff Fuller [mailto:jefffuller@mac.com]
Sent: Saturday, July 15, 2006 1:59 PM
To: Jeanlucbrunel
Cc: jeanlucbrunel@msn.com
Subject: Summary of Discussions and Ideas

Jean Luc,

I am sending this document to you per your request
to summarize our
recent discussion(s) regarding the future of MC2 and
E Management. As
you are aware we are in a major transitional moment
which is both
exciting looking forward but also extremely
delicate. To recap the
history and events:

A) As we came out of the restructure of Karin
Models, and due to the
hinderance of being associated with Karin Paris, and
the presumption in
the worldwide marketplace that we were still a
network, we elected to
change the name of the agency to MC2 Model
Management. In 2003 when
we directed our focus on NY. We leveraged ourselves
in order to
relaunch the new Karin Companies that we eventually
turned into MC2.
With my departure of focus from Miami the billing
dropped about 20%.
While we raised the billing in New York 30% by the
end of 2005. We
needed to consolidate our accounting to cut costs
after decentralizing
it in 2000. We did so trusting Maritza and Richard
Fernandes (CPA) as
they had cleaned up the Miami company after it was
neglected by their
predecessors. It only seemed logical. After a time
Maritza seemingly
did not have the communication skills to service our
clients, models,
or affiliated agencies. The problem only escalated
by her becoming
what I believe was one of (if not the most) hated
individuals in our
industry. After much patience, reprimand, and
irreparable damages in
the loss of models and loss of total faith by the
industry in our
administration and accounting department we decided
to terminate her
after six years. This coinciding with the timely
increase of our
credit line has allowed us to restore faith in our
accounting
department which was needed; because in the past
Maritza simply did not
do what she said she would do for people. This was
not due to cash
flow as I uncovered after she left. She was not
paying people so she
could steal for herself from both offices. Paying
her mortgage on her
house for a year, taking liberties to run personal
expenses and use our
vendors for her own needs, making checks to cash for
herself, forging
bank documents, commandeering another employees
credit card and having
the bills shipped to her so she could take long
weekends in Paris and
have the company reimburse American Express when we
thought she was
visiting sick relatives. In any case, the findings
are too numerous to
write about and we discovered it just in time. The
climax being condos
purchased in Peru. Approximately 400k over a couple
of years. Not to
mention her lies and stories she has told about you
and me to so many
models, employees, and affiliates. But people know
us and know how
she was and the recovery has been consistent and
swift and faith is
being restored through persistent and consistent
efforts. As you
stated, if we keep losing models due to accounting
of course our
scouting costs to replace them will be high. With
a lack of
reporting and the complete disappearance of regular
P&L reports, model
debts, and scouting costs, it became impossible to
manage the company
also solidifying our decision to terminate Maritza's
employment. In
the end she had really ramped up for big theft and I
believe we caught
it just in time before recovery would have been more
difficult. To the
point that she cashed checks and payed herself on
the day she was
terminated.

B) The Miami company has manageable debt to the IRS
for the foreign
models that have worked and that debt is being
serviced as the billing
has been consistent and with my last six months on
stay in Miami and
the staff adjustments we are no longer maintaining
but growing again
which is really exciting. The models are so happy
being paid
regularly. Moving the accounting of Miami back to NY
will save us about
100k per year through the elimination of the 3rd
floor office. Miami
will show, and would have previously shown profit
but it was
subsidizing the Brazil projects (scouting and Wired
office) and
absorbed extra costs of New Generation in 04. The
New York office
finds itself in a near identical situation billing
wise and with it's
payables to the Vendors and IRS as it was when we
took it over in late
2003. It has eroded through the loss of girls
primarily due to
accounting. If that accounting department would
have been solid we
could have weathered the break up with Karin and
kept the few money
makers from them, and kept the girls we lost due to
staff changes.
When you have a weakness it is picked on by others
in order to take
from us what they desire such as staff and models.
Rob LaSalle is
still cleaning and investigating NY but it appears
to be carrying and
IRS Payable of about $350k that may or may not be
adjustable for better
or for worse but this is for the foreign models tax
we have withheld.
We have suffered some losses in NY but were unable
to monitor it
exactly under Maritza's Regime aside from our
awareness level of the
billing being down in 2006. We should have a
clearer picture in the
next few weeks as he continues his work.

C) The credit line has been essential in our
recovery with the models.
Some that were on fence and considering leaving
the agency have stayed
and we have received so many positive comments on
timely payment as
well as a positive attitude with issues being
addressed and problems
being solved quickly. Our credibility is
definitely being restored
in a big way. I believe that the key to success is
to pay the models
on the regular US catalogs and Clients in good
standing regularly using
the credit line to do so. Ford, Next, and Elite
have had passed
reputations of paying the models quickly on what
they have agreed to
pay them on and models are gravitating to those
agencies due to the
stability. It is unbelievable how many commercial
money makers have
switched to Ford. When I look back I think they
have been our fiercest
competition in the mid level commercial sector. As
far as the use of
the Credit Line has gone, both you and I have made a
commitment to one
another to make that the top priority and concern as
Jeffrey's

=== message truncated ===

Do You Yahoo!?
Tired of spam? Yahoo! Mail has the best spam protection around
http://mail.yahoo.com

were you able to do the nadia deal

--- Jeanluc Brunel jeanluc@mc2mm.com wrote:

I am sending you a e-mail from Jeff that has
summarized our discussions
It is long. I hope that you will have time to read
it.
On the line of credit around 90.000US$ went to E
The rest is advances to models secured by the
receivables.
I will call you in Paris tomorrow
Take care
JL

-----Original Message-----
From: Jeff Fuller [mailto:jefffuller@mac.com]
Sent: Saturday, July 15, 2006 1:59 PM
To: Jeanlucbrunel
Cc: jeanlucbrunel@msn.com
Subject: Summary of Discussions and Ideas

Jean Luc,

I am sending this document to you per your request
to summarize our
recent discussion(s) regarding the future of MC2 and
E Management. As
you are aware we are in a major transitional moment
which is both
exciting looking forward but also extremely
delicate. To recap the
history and events:

A) As we came out of the restructure of Karin
Models, and due to the
hinderance of being associated with Karin Paris, and
the presumption in
the worldwide marketplace that we were still a
network, we elected to
change the name of the agency to MC2 Model
Management. In 2003 when
we directed our focus on NY. We leveraged ourselves
in order to
relaunch the new Karin Companies that we eventually
turned into MC2.
With my departure of focus from Miami the billing
dropped about 20%.
While we raised the billing in New York 30% by the
end of 2005. We
needed to consolidate our accounting to cut costs
after decentralizing
it in 2000. We did so trusting Maritza and Richard
Fernandes (CPA) as
they had cleaned up the Miami company after it was
neglected by their
predecessors. It only seemed logical. After a time
Maritza seemingly
did not have the communication skills to service our
clients, models,
or affiliated agencies. The problem only escalated
by her becoming
what I believe was one of (if not the most) hated
individuals in our
industry. After much patience, reprimand, and
irreparable damages in
the loss of models and loss of total faith by the
industry in our
administration and accounting department we decided
to terminate her
after six years. This coinciding with the timely
increase of our
credit line has allowed us to restore faith in our
accounting
department which was needed; because in the past
Maritza simply did not
do what she said she would do for people. This was
not due to cash
flow as I uncovered after she left. She was not
paying people so she
could steal for herself from both offices. Paying
her mortgage on her
house for a year, taking liberties to run personal
expenses and use our
vendors for her own needs, making checks to cash for
herself, forging
bank documents, commandeering another employees
credit card and having
the bills shipped to her so she could take long
weekends in Paris and
have the company reimburse American Express when we
thought she was
visiting sick relatives. In any case, the findings
are too numerous to
write about and we discovered it just in time. The
climax being condos
purchased in Peru. Approximately 400k over a couple
of years. Not to
mention her lies and stories she has told about you
and me to so many
models, employees, and affiliates. But people know
us and know how
she was and the recovery has been consistent and
swift and faith is
being restored through persistent and consistent
efforts. As you
stated, if we keep losing models due to accounting
of course our
scouting costs to replace them will be high. With
a lack of
reporting and the complete disappearance of regular
P&L reports, model
debts, and scouting costs, it became impossible to
manage the company
also solidifying our decision to terminate Maritza's
employment. In
the end she had really ramped up for big theft and I
believe we caught
it just in time before recovery would have been more
difficult. To the
point that she cashed checks and payed herself on
the day she was
terminated.

B) The Miami company has manageable debt to the IRS
for the foreign
models that have worked and that debt is being
serviced as the billing
has been consistent and with my last six months on
stay in Miami and
the staff adjustments we are no longer maintaining
but growing again
which is really exciting. The models are so happy
being paid
regularly. Moving the accounting of Miami back to NY
will save us about
100k per year through the elimination of the 3rd
floor office. Miami
will show, and would have previously shown profit
but it was
subsidizing the Brazil projects (scouting and Wired
office) and
absorbed extra costs of New Generation in 04. The
New York office
finds itself in a near identical situation billing
wise and with it's
payables to the Vendors and IRS as it was when we
took it over in late
2003. It has eroded through the loss of girls
primarily due to
accounting. If that accounting department would
have been solid we
could have weathered the break up with Karin and
kept the few money
makers from them, and kept the girls we lost due to
staff changes.
When you have a weakness it is picked on by others
in order to take
from us what they desire such as staff and models.
Rob LaSalle is
still cleaning and investigating NY but it appears
to be carrying and
IRS Payable of about $350k that may or may not be
adjustable for better
or for worse but this is for the foreign models tax
we have withheld.
We have suffered some losses in NY but were unable
to monitor it
exactly under Maritza's Regime aside from our
awareness level of the
billing being down in 2006. We should have a
clearer picture in the
next few weeks as he continues his work.

C) The credit line has been essential in our
recovery with the models.
Some that were on fence and considering leaving
the agency have stayed
and we have received so many positive comments on
timely payment as
well as a positive attitude with issues being
addressed and problems
being solved quickly. Our credibility is
definitely being restored
in a big way. I believe that the key to success is
to pay the models
on the regular US catalogs and Clients in good
standing regularly using
the credit line to do so. Ford, Next, and Elite
have had passed
reputations of paying the models quickly on what
they have agreed to
pay them on and models are gravitating to those
agencies due to the
stability. It is unbelievable how many commercial
money makers have
switched to Ford. When I look back I think they
have been our fiercest
competition in the mid level commercial sector. As
far as the use of
the Credit Line has gone, both you and I have made a
commitment to one
another to make that the top priority and concern as
Jeffrey's

=== message truncated ===

Do You Yahoo!?
Tired of spam? Yahoo! Mail has the best spam protection around
http://mail.yahoo.com