Brooke Corporation — Horrible misleading company
I AM A VICTIM OF THIS COMPANY! Brooke Corporation (BXXX Nasdaq) I assure you that you will find these events most interesting! I am writing to you for help exposing this company for what they are doing to insurance agents across the United States.
The first place for research on this company is the Yahoo! Finance Site…go to Yahoo!, click on finance, type in BXXX, then go. then under News & Info click on Message Board. You will discover what this company is doing to the franchisees.
Brooke Corporation does a few things – they buy and sell insurance agencies. They advertise that they will provide services such as financing of agency, accounting, marketing, provide insurance companies and other important services to assist insurance agencies. They do not provide the services. Brooke receives all commissions from the insurance companies. The franchise fees are kept by Brooke and the remaining money is to be sent to the agency owner. I have not spoken to one agency that has ever received money from Brooke. Brooke will not send the agencies copies of the commission statements from the insurance companies. They send you a monthly statement that Brooke compiles on an excel spreadsheet. The statement is usually incorrect with all sorts of unusual charges and omitting commissions or paying a lower amount of commission that they receive (in other words, skimming).
Basically after a time the agency is failing but not at the fault of the agency owner. It is the scheme of Brooke to see agencies fail – taking back the agency for resell – Brooke will then resell the agency to make another franchise fee (now at $165,000), Buyer Assistance Plan (program they force you to buy that is to provide services that are not provided), Loan Origination Fees, and Consulting Fees (they use ‘outside' firms that Brooke owns, but Brooke does not disclose that they own the firms). Brooke success is the failure of their agencies.
There are many agents from around the US that have been victimized by this company or they are in the system and are too scared to say anything because Brooke makes you borrow money (from Brooke Finance) when you have a negative monthly statement balance (when you in-fact DO NOT have a negative balance). If you ‘buck' the system, they ‘cut you off' and foreclose on your agency. So most agents involved do not say anything. In fact, in some instances Brooke will let an agency walk away only if they sign a confidentiality agreement not to talk.
This publicly traded company is getting away with crimes against hard working families. I, along with many others, have had to file bankruptcy as a result of this scam and many others will follow suit.
Many people and families that have been affected by this horrible misleading company.