AMERICAN FORK, Utah — Platinum Protection, a summer sales model company here, laid off most of its employees last week, The Salt Lake Tribune reports.
The company, which has roughly 140,000 clients, dismissed 65 corporate employees, as well as its sales staff and technicians. When the company first opened in 2006, Platinum Protection employed 300 marketing team members and 150 install technicians during its first year. Within four years, the integrator grew 200%, prompting the company to move its Provo, Utah-based headquarters to American Fork, Utah, according to the company Web site.
A small management team will still assist existing customers; however, Platinum Protection will not sell any new accounts, the company’s in-house legal counsel Mike Melzer told The Salt Lake Tribune. Additionally, company officials said they hoped to pay employees their due in a few weeks.
It is unclear what prompted the company to dismiss most of its workforce. Yet, some observers wonder if the layoffs are a result of the recent lawsuit filed by the Securities and Exchange Commission (SEC) against Utah real estate tycoon Wendell Jacobson and his son, Allen. The suit alleges that the two men, who provided the startup capital for Platinum Protection, duped about 225 investors in a $220 million Ponzi scheme, reports Deseret News.
However, Platinum Protection reps said that the Jacobsons ended their connection with the company in July.