LOS ANGELES (CN) – Infomercial marketer Robert Klayman stiffed federal inmates for five months of work, Federal Prison Industries claims in a federal complaint.
Klayman contracted with a West Virginia Prison for 12,000 hours per month of call-in customer service, beginning in January 2006, the complaint states. FPI says it canceled the contract in May 2006, after Klayman bounced two checks, for a total of $50,000, and refused to pay bills totaling $389,000. The contract was supposed to pay $7.50 to $10 an hour for inmates who worked four-hour shifts. It required Klayman to be part of a corporation, but FPI claims that Klayman ran the Klayman Group as “a mere instrumentality of himself,” not as a valid corporation.