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13 Investigates: Hundreds of ServiCom Employees still without paychecks

MACHESNEY PARK (WREX)- It has been months since ServiCom closed its doors at the final call center location in Machesney Park. Hundreds of employees are still without thousands of dollars from roughly three-weeks worth of pay.

“Like 24 hundred dollars,” said Jasmine Sank sitting at her dining room table.

“880 plus 440, whatever that is,” said Jordan Quandee. “I still haven’t even gotten paid.”

ServiCom filed for bankruptcy in October closing two locations in the Stateline, leaving hundreds of people without a job and leaving customers on the line.

“[a manager] said, ‘you can go on floor support now, just disconnect the call,'” said Rebecca Medley, describing her last day at one of the locations that closed in October. “I’m like, ‘I can’t just hang up on the customer.’ She’s like, ‘yeah, you can.'”

That is when her location at Machesney Park closed on Forrest Hills Road. The same day, ServiCom closed its Rockford location on Mulford Road.

Quandee, Medley and Sank were all transferred to the final location in Machseney Park.

“Couple months in, paychecks started becoming late,” said Quandee. “In the back of everyone’s head, you knew something was coming.”

While employees in the Stateline grew leery, attorneys in bankruptcy court painted the picture before a judge.

It was clear, ServiCom was running out of money.

In a December 4 hearing, attorneys told a judge that if “appropriate arrangements are not made for payroll,” ServiCom would have to close. In that same hearing, attorneys said they were still looking to work out a deal to sell the company.

13 Investigates reached out to ServiComm owner David Jefferson and his attorneys multiple times, but never heard back. The only way to hear their side of the story was through MP3 recordings of court hearings.

“We’re going to try one more time to see if we can pull this off,” said one attorney for ServiCom said in one of those hearings on December 4. “If not, we’ll take the appropriate steps in regards to the employees and the operations.”

On December 5, employees received a letter saying their paychecks would be delayed.

Then, on December 6, roughly two months after filing for bankruptcy, the final closure came.

“I walk into the building,” said Quandee. “That’s when we were told clear your desks, nobody has a job anymore.”

“You kind of go into disbelief,” said Medley. “Like shock, it’s like anything traumatic happens, you go into shock.”

Now, three months later, hundreds of those employees are still without their paychecks.

Payroll alone for the final check that was never given was $180,000, according to court documents. Employees say they’re without roughly three weeks of pay.

“I almost lost my roof, my car, I couldn’t pay a couple of bills,” said Sank. “People couldn’t eat, people were going to pantries, singing up for link cards. It just got rough, it got bad.”

The bankruptcy filing shows the names and addresses of all of the former employees, the ones we talked to all say they have not received their paychecks.

“Give us some type of answers,” said Quandee.

“We put in that time and those hours,” added Sank. “We signed a contract and we deserve to be paid. I don’t care if it takes one year or two years. I am going to be paid.”

Bankruptcy records show 67 claims have been made against ServiCom by former employees and businesses that worked with the company, totaling almost $20 million.

At the end of February, a class action lawsuit was filed against ServiCom owner David Jefferson and AlphaStaff, a co-employer.

The suit alleges employees worked overtime without receiving proper payment and that their overtime was not calculated correctly.

The case was filed to receive that proper payment, the $250 loyalty bonus that allegedly never came, and payment employees say they never received when the company went under.

If the court certifies the case as a class action suit, notices will be sent to all former employees on how to receive proper payment.


James Stratton

James Stratton is the Evening Anchor at 13 WREX and reports for 13 Investigates He joined the team in August, 2018 after working at KWQC TV-6 in Davenport Iowa. His work in Illinois and Iowa has been awarded in both states, along with Edward R. Murrow and Emmy Awards at 13 WREX.

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