Friday, January 30, 2009

A Delusional World

As the end of January fast approaches, it seems that Ed Fanning, Nick Jevic, and Tom Hennings seem to be living in a delusional world of denial. The corporate entity known as Phoenix Building Solutions; once produced modular Homes, Apartments, and Condominiums has sat cold, dark, and dormant at 630 Hay Avenue and 600 Albert Road in Brookville, Ohio since January 5. The lights are off, the heat is gone and the only activity in the facility is the screeching cries of fighting raccoons. The flame of the Phoenix has been extinguished.

In the fantasy world inside the delusional heads of three Cincinnati, Ohio men, Phoenix still burns bright and productive. This fantasy is very evident by the three’s total lack of the concept of reality, as they refuse to acknowledge their failures in life and in business. Total Denial, is an appropriate term. The website for Phoenix Building Solutions continues to be live, without any indications to public that company is no longer doing business. The phone numbers and email addresses on the website are listed for inquiries, but not a single person works at the facility to answer those inquiries. After not compensating the employees for two weeks of employment before being layoff, the employees were told verbally without any written record as Ed Fanning termed the phrase they were “temporarily” discharged.

In a matter that makes this curious case of delusion even more interesting is the simple fact that Phoenix Building Solutions’ third party Human Resource Company, PAYCHEX, which handled payroll, 401k, and W-2 tax filings, has not been informed of the situation at Phoenix by Edward J. Fanning. When employees place a call to PAYCHEX to find out information regarding W-2 filing, the employees are told they are not authorized to receive this information. When requesting information on accessing the employees 401k account, the employees is told the plan is still “Active” and there has not been a triggering event. Furthermore the person that has the ability to access and cancel the account with PAYCHEX is Edward J. Fanning, and the account administrator. Apparently Ed Fanning believes he is still operating an ACTIVE corporation. This one major headache for all the employees can be cured by Edward J. Fanning contacting PAYCHEX, terminating the account and having W-2 Form sent the former employees. Instead of Edward Fanning choosing use morals and do what is ultimately right, he chooses stay in his home office and play Modular Home Builder with his Lincoln Logs and Lego’s.

By keeping this account with PAYCHEX active, Edward J. Fanning had done nothing more than anger and push his former employees even more towards the breaking point. Coupled with the loss of their employment, vacation compensation, 2 weeks compensation, locked 401k benefits, flex spending accounts, and with-holding IRS W-2 forms; the drive to survive in tough economic times become even harder. What would make Edward Fanning, Nick Jevic or Tom Hennings think any employee would even comprehend working for these men ever again? It must be pure delusion.     

Update: Custom Cabin/Property Removed from Buildings

We would like to update the “Custom Cabin of Lies” story we brought to you yesterday, as we currently have breaking news on this story.

We have just learned that sometime during the week of January 26, 2009; Edward J. Fanning entered the Phoenix Building Solutions locked facility and removed several items from the buildings. We have been able to confirm that one item that was removed was the Heat Pump designated to be delivered to House #810, Custom Cabin. This heat pump was already paid for by the owner of this home, who has paid Phoenix in full for the House Order. This is not Edward J. Fanning’s property, and is in fact STOLEN PROPERTY. We do believe Edward J. Fanning had help to accomplish this task, but at this time we are withholding the identity of this person until confirmation.

We will bring you more information as we continue our investigation.

If anyone has any more information on this, please contact us.

Thursday, January 29, 2009

The Custom Cabin of Lies

In August 2008, Phoenix Buildings Solutions accepted and signed an order to produce a custom designed cabin to be built in Ohio. The order was processed, the contract was signed between the client and Phoenix, and the deposit was accepted. Engineering completed plan schematics and received approval from the State of Ohio Building Department in early September. The original plan was to start production in late September, but production did not start until mid-November. Why? Tom Hennings, President and CEO, simply did not want to produce the product and had no intentions of producing the product. This was simply a scheme by Phoenix Building Solutions to inject capital into the company. At the contract signing, a customer is required to make deposit of at least 10%. By signing contracts with clients, the company is making quick cash.

During the next two months, the client was lied to repeatedly by Phoenix Building Solutions about the status of the model plans. The client was told that the plans were still at the State of Ohio, and had not had been approval yet. The story then changed after client found the plans were approved. The new story became “engineering needed more time to produce production drawings”. This went on for two months, while Tom Hennings and the Owner, Edward Fanning and Nick Jevic, tried to decide if they wanted to build this product. Production finally began on the Custom Cabin home around the first of December 2008, and the home was completed and delivered on December 15th 2008 near the site location.

Now if the case of the cabin had not been ugly enough, by December 15, 2008, the weather had turned ugly and rain, snow, and ice were a constant reminder that homes are not usually delivered in the winter. The set crews spent a week trying to lowboys carrying the modular units up to top of hill in the snow, ice, rain and mud to the site. The crane crew then spent another day trying to get a crane to the top of the hill. Because of the cold, wet, muddy conditions, the actual placement of modular units on the foundation were delayed a week after December 15, 2008.

Phoenix Building Solutions, Tom Hennings, Ed Fanning and Nick Jevic opted to charge the builder for every day that set crew was unable to ascend the hill with lowboys to the site. Phoenix’s claim was that house was to be delivered on the 15th per the contract and every day late incurred a late charge to builder. Now if the home would have been constructed and delivered in October when and around the contract between the builder and Phoenix was signed, these weather conditions would not have been a problem. Another interesting note concerning this case is that in a Phoenix contract nowhere does it state an actual delivery date, but the contract references the “delivery date” throughout the contract.  The client refused the invoice over the delayed delivery due to faults committed by Phoenix. By refusing to pay the invoice, Phoenix Building Solutions have withheld the heat pump that failed to ship with home. The heat pump was being held hostage in their now closed and locked production plant.

Wednesday, January 28, 2009

Phoenix Building Solutions - Media Day

Thursday, January 22, 2009, WHIO-TV and WDTN-TV in Dayton, Ohio covered the closing, refusal of compensation, and lock out by Phoenix Building Solutions, Inc in Brookville, Ohio. 

Several former employees were interviewed on camera and gave their account of the situation.
The Chairman, Edward J. Fanning, who was identified as an Investor in the company  and not an owner gave a statement. Ed Fanning summarized the company is in temporary layoff due to the rough economy and has intentions on paying all of the employees laid off. Ed Fanning said due to lack of orders, and inflow of capital the company was forced to close.

What Ed Fanning did not mention was the fact a 6-unit Multi-Family Building was on the assembly line which company had already received two installment payments, which roughly accounted for $150,000 of the total $300,000 of the project. Ed Fanning also did not acknowledge the company took out a second mortgage on the properties on December 7, 2008 for $257,000. In the month of December, Phoenix should had already received roughly $450,000 cash flow into the company. Where did all this money go? What happened to the loan issued on December 7, 2008 by Wesbanco for $257,000?  

Edward J. Fanning, your audience is awaiting your response.

WHIO-TV and WDTN-TV did not find out about this information from Ed Fanning, but a simple search of public records at the Montgomery County Court House will confirm that a second mortgage exists.

If you would like to read the WHIO-TV article CLICK HERE

Phoenix: A Plundered Name; A Pillaged Logo

Photo Credits: Phoenix Building Solutions.

In early 2007, FNJ Group acquired Benchmark Homes, and formed a new company with the assets known as Phoenix Building Solutions. Phoenix needed to establish an identity for itself and corporate logo. Tom Hennings was established as the President and COO of Phoenix Building Solutions by his business partners Edward J. Fanning and Nikola Ljubisavljevic (Nick Jevic). Together the three amigos pillaged a corporate identity and violated copyright laws.

The birth of Phoenix Buildings Solutions was not out of the decaying ashes but rather out of convince. The company stole and adopted a corporate logo featured on, and pawned it off as their own original concept. Even more shocking is the corporation name, was apparently stolen from the exact same logo design. The stolen logo was for “Apex Building Solutions, Inc” and the company altered the name and logo slightly to “Phoenix Building Solutions, Inc” and modified the logo design. How convenient that another corporation was to provide Ed, Tom and Nick with the building blocks to form a corporate identity.

On Phoenix’s website they have a section devoted to their business practices and it quotes “We are committed to maintaining the highest level of integrity and honesty throughout all aspects of our business”, then later goes on to say “We are committed to the highest standards of professionalism, we pursue innovation, and we deploy imagination.” (Read the whole quote) Apparently Ed Fanning, Nick Jevic, and Tom Hennings’ imagination failed to evolve past the Homo Erectus stage of the evolutionary trail.

Phoenix Building Solutions is a corporation that designs and builds modular homes. It does not take a lot creative genius to steal an idea or concept, so I ask you how original are their products if they can’t even develop a name and logo?