UPDATES: (12/20/2003) ModelWatch launched this article last July 2003 and we received numerous emails from concerned parents, models and just about everyone in the Industry. Some were very critical about our article and some were congratulatory. Its a complex issue, requiring further analysis and study. Let us make the following cases in point:

1. A huge amount of investment goes with the venture and as such, promotion and advertisement related to Wilhelmina Scouting Network were propagated. Obviously, shrewd advertising people were employed to come up with an effective ad & promotional campaign. The venture produced numerous websites with one common theme: to promote the network. Various "officers" of the venture were employed and were assigned to handle specific locations, areas of specilization;

2. To completely rely on announcements, "testimonials" and similar feedbacks against the Scouting Network is simply not enough. To the viewers, bear in mind that the reputation of the source is of paramount importance.One should consider who are the people behind the news or the websites for that matter.

The best way to come up with your own decision about the case is to consult the Better Business Bureau website. All other sources, better read them and consider their reliability and truthfulness with a grain of salt.

3. A huge modeling scam is news. But there are two sides to a conflict. Consider the victims and the scouts. TCT-Wilhelmina Scouting Network is a profit-oriented project and will always entertain potential customers.

Finally, ask yourself, "Do I have what it takes to be a model?"

TCT-WILHELMINA JOINT VENTURE: Can Wilhelmina Right the "Wrongs" of TCT?

By Jed Medina

On March 21, 2003 TC Entertainment Group, the parent company of TCT, the world's largest searcheable database for modeling, acting and musical talent, announced that it has finalized a multi-million dollar deal with Wilhelmina Scouting, LLC, the newly formed Scouting and Development affiliate of Wilhelmina Models.

The news was received with mixed reactions. Some authorities within the industry hailed the partnership as a revolutionary attempt to integrate the latest technology with model management. However, some industry practitioners concluded that it is nothing but a shrewd attempt to continue operating a modeling scam, albeit a highly profitable one. They cited numerous cases that were unfavorable to TCT and have been reported in the media.

ModelWatch features our exclusive look at the venture between TCT and Wilhelmina Models- from its history and background to the people working to get the venture into full swing. What we want is to provide you with the bigger picture in an objective & fair manner and maybe at the end you can conclude if this is a scam or not.

History: A Closer Look at TCT and Wilhelmina Models: How did it all began.

TCT was formerly known as E-models and also by another name, Options Talent. In September 2002, Lou Pearlman bought the company. Mr. Pearlman is a musical promoter credited for launching the careers of the Backstreet Boys, N'Sync and O-Town.

However after its initial success, both BSB and N'Sync have decided to leave Mr. Pearlman's representation. This is after failing to agree on certain working conditions, in addition to some reported legal issues involving professional fees, and other matters still unresolved as they parted ways.

Wilhelmina Models started operations in 1967 by top model Wilhelmina Cooper. Cooper is acknowledged as one of the most successful models ever, with prestigious stints for top designers and the most number of covers for Vogue magazine, still unduplicated even today. The agency is listed by models.com as the #2 agency in NYC in its listing. The company is currently owned and controlled by German Business tycoon Dieter Esch. The agency has offices in Los Angeles, Miami and New York.

It remains one of the biggest agencies with more than 45 bookers working in different Divisions. The agency represents such names as Mark vanderloo, Nelson Vance and Ian Webb, among others.

The Joint Venture: Wilhelmina Scouting Company- The Company Under Scrutiny

The newly-formed company, Wilhelmina Scouting Company (WSC), is based in Orlando, Florida, with Scott Bennett, designated as its Principal. He holds the Vice President title within the company. It offers services to potential and aspiring talents (models, actors, singers) by placing their portfolios on the company's database, which in turn, is accessible to clients thru the internet. These customers (talents) are required to pay a certain fee for having their portfolios displayed on the WSC's online database.

Reputation: According to the BBB, WSC has an unsatisfactory record due to a pattern of complaints concerning misrepresentation in selling practices, including the issue of proper selection of customers as potential models. A number of cases have been reported where pressure is said to be exerted to the customers, emphasizing a "sense of urgency", for these customers to decide immediately on being listed and included in the company's database. One opportunity lost means one year of waiting before being included and considered in the list.

Complaints regarding refunds is one of the most hotly debated issue. Currently, WSC has an inconsistent practice on refunds. Not all WSC offices follow the same SOP on refunds.

Controversial Issues: From sources at the Securities and Exchange Commission (SEC), TCT is said to be employing Consultants with questionable reputations. Two of these Consultants were reported to have settled a lawsuit with the FTC. These lawsuits were cases of misrepresentation from earlier modeling businesses. Legal fines were paid but these Consultants denied any wrongdoings.

Another Consultant pled guilty in 1995 to conspiracy to commit bank fraud and wire fraud.

Case in Point: One Customer's Quest for Redemption: Rachael Holloway (Talent No. 291462) Cile and Ben Holloway experienced first-hand how the company conduct business. Their daugther Rachael Holloway was one of the company's talent (Talent Number 291462).The couple wrote TCT Florida office, with an attention to a certain TCT employee named Nena Mason. They requested refund of the $600 set up fee, citing the following reasons:

"...your company has provided nothing professional in exchange for the fee and used deceptive- fraudulent business practices to entice (our daughter) her enrolment."

The couple also stated that the company worked with top local modeling agencies in the area (Florida), including Page Parkes, Kim Dawson, and the Campbell modeling agency. All of these agencies denied being associated with the company.

What was particularly alarming with the way the company convinced potential customer is the way these agents lie just to convince these "talents" to sign up. Another issue concerning paying a professional Photographer to take shots of a customer was also noted. The set up fee of $600, in fact, did not include any photography services and that the company representative even adviced the couple to seek out a professional Photographer at the cost of $395.

Managing the Venture: Wilhelmina Models at the Helm- Wilhelmina's Chairman and major stockholder Dieter Esch is credited for initiating the joint venture between TCT and the agency. Esch has a fairly respectable reputation within the industry. With his skills and expertise in business strategy and planning and his reputation as a master in the legal abnd licnesing aspect of the business, Esch steers Wilhelmina into the very top of the industry.

He was once quoted as saying: " Through me, the industry has become more stable, contracts more relevant and the movements of models less erratic."

However, Esch was involved in a lawsuit filed by the agency's former Director (Women's Division) on the issue of sexual harrassment. This case has been settled with the employee getting another position in a competitor (The said employee is now the Director of Major Models) and certain employees found to have been the source of the problems, properly reprimanded.

Issues regarding gender and employee relationship seems to be Esch's weaker points.

Looking Forward: What is Next for WSC?

Given the capabilities of Wilhelmina Models to provide professional expertise for WSC, a number of industry insiders expect the joint venture to become a success. Though a number of people working in the modeling business agreed that there is too much negative already that perhaps the best way to convince people that it is not a scam is by setting examples and settling past obligations.

Generally, the industry is on a "wait and see" attitude. A lot of things can happen in the couple of months. Other agreements, including similar joint ventures, and startegic alignments between agencies can never warrant the ultimate outcome of the WSC project.

Can Wilhelmina right the "wrongs" of TCT? Its rather too early to tell. Indeed, until now that seems to be the case.