Espina Corona’s Fraud Against Me: Marcelo sold me an employee for $1,600, but delivered a black box. Narrative \tIn the several days before Marcelo returned to Buenos Aires, we discussed the particulars of our business arrangement. I explained it would be helpful to have an assistant work collaboratively with me to develop my design drawings. Marcelo gave it a thought and mentioned he knew just the person, a woman he called Mariana who was a recent graduate assisting teachers at his university. I asked how much it would cost to bring Mariana on. Marcelo replied maybe $200 USD per week. Incidentally, Marcelo had previously discussed having unpaid interns in his office for various research, marketing and production roles because he is an adjunct instructor at a college in Buenos Aires. \tHe did at that time suggest that it would be a good idea if she didn’t know that the job was for such a large client because she would probably ask for more money—I said that was OK as long as we could work together (I saw no particular ethical problem with this as long as she was paid). Additionally he qualified that he was unsure of her abilities in English, and I said that was OK, since I have passable Spanish and Google Translate is able to render most concepts lucidly. \tWe wrote Mariana specifically into our contract: an assistant to create technical drawings for 8 weeks of labor at $200 per week. Marcelo and I signed this contract and he received an $8,000 payment, $1,600 of which was specifically allocated for Mariana’s salary. Speaking by Skype shortly after he returned home he represented that he had hired and arranged things with Mariana. \tThe first indication that things were not what they seemed came when I asked to be put in touch with her and I directed him to use a collaborative remote-work platform, Basecamp. He refused and when pressed with the direct question, "Marcelo, is she being paid?" he responded with a non-denial, "But she is very happy with this arrangement!”, which is why he couldn’t let on that this was a lucrative job. Recognizing the deceit, I immediately terminated our working relationship. The Five Elements of Fraud: 1. Misrepresentation of a material fact: In discussions leading up to formalizing our contract on approximately the evening of March 9th, 2019 on a walk home from the YMCA in Downtown Brooklyn, Marcelo represented that Mariana would be available to work with me in a collaborative way to develop my design drawings into technical blueprints. 2. Knowledge on the part of the accused that they were misrepresenting the fact: During the same approximate March 9th discussion, he began to qualify and condition this collaboration due to language barriers and the importance concealing the final client so she “didn’t ask for more money”. This suggests a premeditation for his future actual behavior of keeping the employee apart and in the dark. 3. The misrepresentation was made purposefully, with the intent of fooling the victim. Marcelo assigned a price of $200 a week to Mariana. He either knew or anticipated at that time that she would work without pay consistent with his description of her as a “recent graduate who was assisting teachers at the college” and his later basic admission on March 27th, 2019 via Skype that she was unpaid OR he formalized that unpaid work at a later date; see discussion of embezzlement below. 4. The victim believed the misrepresentation and relied upon it. Marcelo and I wrote up a contract and I took him at his word that I would be able to work with Mariana. Her salary is contained in the line item for “Technical Drawings” and this work was to be “performed at my direction”. 5. The victim suffered damages as a result of the misrepresentation. Marcelo accepted payment for 8 weeks of labor to be performed at my direction and I received nothing matching that description. Marcelo issued a non-denial on a March 27th, 2019 Skype call when I asked directly if Mariana was being paid. Marcelo’s obstinate refusal to bring Mariana into the light created week-long delays during the contract and copious time lost after due to his failure to perform and layered deceits. Embezzlement \tIf Marcelo did not know that Mariana would work without pay at the outset prior to entering into our contract, the behavior would be more consistent with embezzlement where funds entrusted for a specific purpose are redirected for personal benefit. Breach of Contract vs. Fraud \tIn Commercial claims these terms of art often overlap, but if as Marcelo’s own statements suggest that he misrepresented present facts, instead of future performance, this would be both breach of contract and fraud. Espina Corona’s Commission of Fraud Against Mariana Marcelo induced a young employee to work for free by concealing the true client and lucrative nature of his work. Narrative \tThere’s not so much of a story I can tell here, since I was never able to speak with Mariana, but Marcelo accepted $1,600 for a salary, by his own indication pocketed this money and conned his employee into working for free. The Five Elements of Fraud: 1. Misrepresentation of a material fact. During our evening walk on approximately March 9th, 2019, Marcelo suggested that we not discuss that his job was for a high profile New York City periodical with Mariana, because she would “ask for more money”. 2. Knowledge on the part of the accused that they were misrepresenting the fact. See #1 above. 3. The misrepresentation was made purposefully, with the intent of fooling the victim. I cannot know how exactly Marcelo represented the work he engaged Mariana in because I was never allowed to speak with her. Marcelo’s intent is clear from #1 above. 4. The victim believed the misrepresentation and relied upon it. During a March 19th Skype call, Marcelo indicated that he had ‘hired’ Mariana and was training her, e.g. she accepted his offer under false pretenses. However Marcelo misrepresented her work to her, she evidently believed it because: 5. The victim suffered damages as a result of the misrepresentation. Marcelo issued a non-denial on a March 27th, 2019 Skype call when asked a direct question as to whether Mariana was being paid. According to Marcelo’s own suggestion Mariana had agreed to work for free and according to the March 9th conversation, Marcelo himself believed she would not have worked for free had she known the true client. Who am I? \tMy name is Matt Howard, and I work somewhere between the realms of architecture, interior and industrial design. I had a particular focus earlier in my career on the design and delivery of stores and store fixtures (also known as store furniture) for clients ranging from The Gap, Tommy Hilfiger, Tory Burch, Kiehl’s, Clinique, Proctor and Gamble, Verizon, Red Bull and Shake Shack to name a couple of names. \tI have been responsible for ground-up designs and procurement from small local teams to major domestic names in the millwork industry like Orion in Rhode Island. Internationally, I’ve worked with names like JPMA in Quebec and assisted in a cost benefit analysis for more distant China-based offshoring arrangements while at l’Oreal. I have been around the block when it comes to building interior fixtures. My Motives: To describe a very real fraud committed both against myself and a subcontracted employee. To shine a light on behavior that is damaging to young designers. To shine a light on behavior that has harmed my client relationship To publicize how Marcelo Orlievsky and his Espina Corona brand monkey-wrenched the successful completion of a large lucrative contract in order to hold on to small change.
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