Tuesday, August 10, 2010

Leadership Grants Organization: Oh, the sweet smell of a scam

In the last several weeks, I've been contacted directly by no less than six or seven people who have submitted--or are considering submitting--applications to the Leadership Grants Organization. It makes me realize that I really should have shared my conclusions about this organization much sooner. So below is the breakdown of the research that convinced me AGAINST moving forward with the grant application process. (Those of you whom I've e-mailed directly will recognize this!)

As you know if you've read previous blog posts, I was initially thrilled when I came upon the Leadership Grants Organization website. It's extremely difficult to find grants for which one is eligible as an individual, and I thought this could be the solution I'd been looking for. However, my excitement was tempered with just a hint of suspicion, rooted in the fact that the only mention of actual grant recipients was a list with first names and last initials. No press releases, no links to winners' websites or projects--nothing. I've worked in publicity, and it seemed extremely strange to me that the organization would choose not to promote its work or that of its grantees.

So, first I found the site's IP address, then tried to match that with a physical address. The physical address given by the organization is on Madison Avenue in New Jersey--but the IP address is in Canada. To double-check, I did a search for the company in the directory of the Madison Avenue building it's supposed to be located in and couldn't find anything. Then I found the owner of the IP address: Darren Morgenstern. This charmer is the founder of ashleymadison.com, which caters to married people who want to cheat on their partners with other married people (more discreet that way, I suppose). Weird connection, so I looked further, and it looks like he was investigated in 2001 (in Canada) for a domain name scam. There are also accusations of a scam with a home staging teaching company he owns, but he hasn't been indicted for either (and he made some big bucks when he sold ashleymadison.com). Then I looked on BBB to see that Leadership Grants Organization has been assigned a rank of F because it was only established in April. Odd, since the website shows that some people won grants BEFORE then. Also on the BBB site, I saw that a Sarah Morgenstern is listed as a chief operating officer of the organization. So I thought--wife of Darren Morgenstern? Either way, this wasn't looking good, but I couldn't figure out where the "scam" would be. I did some MORE looking, and found that there are people complaining online that they paid between $2700 and $4000 to an "outside business plan consulting company" that Leadership Grants Organization had recommended--but these people had never (a) received help on their plans or (b) heard back from Leadership Grants Organization. So I e-mailed the woman I'd been in touch with to ask directly if the site/organization is linked to either Morgenstern. In response, she copy/pasted the contact page listed on the website, basically just ignoring my question.

As Paul and others have mentioned, my conclusion is that if people just submit their business plans, as I would have done, there would be no loss of money--just a waste of time. But I worry that it would be more harmful for those who hire this consulting company to help them create or edit their business plans. (I also did the same IP address/physical address search on this consulting company, Capital Business Service but, to be honest, can't remember the results as in detail as the ones I gave above. But they were just as fishy.)

To be clear (don't want any lawsuits here!), my "findings" are more suggestive than definitive, but they convinced me against proceeding with the organization, and I'm advising anyone who asks to be cautious in moving forward. It also seems that, at the very least, this company should be investigated by those with more resources than me to determine its legitimacy.

Have you submitted a grant application with Leadership Grants Organization? Worked with Capital Business Service? Has anyone reading this WON a grant from them? Please share your experiences in the comments, and feel free to contact me directly if you'd like to discuss this further.

And for the record, I think it's DISGUSTING and so, so disheartening that would-be entrepreneurs could be derailed by a scam like this. I hope none of you have been.

68 comments:

  1. Again, excellent investigating, Katie. I appreciate your taking the time to figure this out. You saved many people lots of time. I hope when people google "Leadership Grants" they come across this very blog entry and know not to apply!

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  2. I'm from Canada and have also been investigating this company as well. I tried to find the information related to this company by searching at the non-profit organization website of the Canadian Government and did not find it. After two emails I recieved this;

    [Hi E. Marie,
    We have publicly posted our Charter from Industry Canada on every page of our website at the bottom. (Clicking the Registration Number will open a PDF page)

    The link looks like this: Copyright, 2010 Leadership Grants Organization of Canada. Registration No.: 4537467. All Rights Reserved]

    I clicked the page and I found a PDF of their incorporation acceptance as a corporation but little else. I could have done that myself.
    I research Industry Canada for grants and there was no information about Leadership Grants Org. of Canada. Tried many ways of searching...nothing.

    Another clue that something may not be right is that there is no French language. Unusual for a Canadian non-profit association and no link to a French site. So I guess this seems to exclude a part of Canada already.

    This might be a legitimate non-profit organization but they probably aren't going to give me any money after my pushing for information from them.

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  3. PART 1

    Dear Katie Gutierrez Painter,

    Thank you for the opportunity to respond to the postings on your blog.

    The Leadership Grants Organization is a legitimate non-profit (not a registered charity) and we are making a good, proper, legal, and honest go of it.

    We make it clear that our organization is predicated on a social enterprise model (http://en.wikipedia.org/wiki/Social_enterprise) which uses market-based activity to generate income that gets allocated to our described cause: (Funding small businesses). The market based activity we employ is comprised of introducing our sponsors to applicants that may need the products or services our sponsors offer, and paying us a fee or contribution for doing so. (There is never an obligation to use our sponsors. We have many sponsors in various industries which of course includes business plan preparation, but more on that below).

    Once our revenues satisfy our expenses, 100% of the remainder, if any, is distributed to applicants that meet our criteria for funding. That is what the law and our charter say must happen and that is what’s done. We do not guarantee funding to any applicant, nor can we ever be assured that we will generate enough income to pay our expenses and have enough left over to distribute to our applicants. What we do guarantee however is that we will put forth our best efforts to generate revenue, and that 100% of the net proceeds of that revenue will be distributed.

    We are a new organization, less than a year old, and like all up-starts, we have our challenges. It is not easy to prevail in this kind of economy with limited resources, no government help, and a business community that has reined in spending. However in spite of that, we have still had limited success and have given out about 50 micro grants. (To our knowledge, we have done more than any other non-government organization)

    I think that it is unfair, harsh, and irresponsible to suggest we are a scam when we have not taken a dime from any applicant and have tried our best to make our organization work on behalf of small businesses. We don’t pass ourselves off as anything other than that which we are, we never charge any fees to our applicants and we always endeavour to safe-guard all proprietary information.

    When we started this organization, we agreed to give ourselves one year to determine if it would continue to be worth the effort. If we can’t gain the trust of applicants and sponsors and provide enough meaningful money in grants to make a difference to enough people then we will simply end our efforts. No harm, no foul, and we’d still be grateful for the experience and the wonderful entrepreneurs we got to know along the way.

    And if we cannot make a go of it, then fair enough, but at least we tried where no one else dared tread, and for those that we have provided funds to, we hopefully made a difference to them.

    PART 2 FOLLOWS....

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  4. THIS IS PART 2....PLEASE READ PART 1 FIRST.

    For all of you who are considering applying for a Leadership Grant, please don’t let this blog discourage you. Yes, you will need to take the time to apply, and it is free to do so. However you will still need to make an investment in time whether you are seeking investors, going for a bank loan, or just conducting your own research to prove out your business concept. Nobody is going to consider you for funding without you taking the time to articulate the reason(s) why you feel your business idea has merit.

    If this blog dissuades you then that is perfectly fine as well. We still wish you luck and hope you make a smashing success of your business idea! We truly believe in entrepreneurs and the value they bring to society and the economy.

    About our Business Plan Sponsors: At no time will you improve on your chances for funding by using any one of our sponsors, nor should any sponsor imply or suggest that. You have no obligation to use our business plan sponsors and we provide you with free templates so you can do your own business plan if you want to. If you do elect to hire one of our business plan sponsors, it should be solely on the basis that you need a business plan anyway and would hire a third party company irrespective of applying for a Leadership Grant.

    By the way, if anyone feels they were mis-lead by any of our sponsors, then we’d like to hear about it. We have no tolerance for aggressive sales tactics and will not allow any of our sponsors to mis-lead our applicants. You can feel free to file a complaint with your representative and it will be promptly followed up. (Katie says there were 6 yet we have not heard from anyone, nor have we been able to find any of the ‘complaining’ online that she mentions. Katie, can you provide those links?? )

    In conclusion, I would like to finish by adding that Darren Morgenstern does not own our organization, nor is he a director and has no official role or title in our organization.

    Katie, I suppose that one day you will find the resources and courage to open your book store and I truly hope you do because only then will you be able to appreciate what it takes to start something from scratch as we have done.

    Thank you & God Bless

    Ethan Roberts

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  5. I believe the writer has been very hard on Leadership Grants but perhaps she is correct in her findings. But to be fair to both I believe the the writer of this blog and Leadership Grants ought to post their evidence for or against for the public to read. How about it?

    Al Yetman
    Canada

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  6. I AM PLANNING TO SUBMIT MY BUSINESS PLAN APPLICATION FOR A GRANT BY SEP 25. I HAVE NO PERSONAL INTEREST IN DEFENDING LEADERSHIP GRANT.
    I WAS FORWARDED KATIE’S COMMENT BY A COLLEGUE AND REVIEWED THE POINTS BROUGHT UP...
    KATIE WROTE: “However, my excitement was tempered with just a hint of suspicion, rooted in the fact that the only mention of actual grant recipients was a list with first names and last initials. No press releases, no links to winners' websites or projects--nothing. I've worked in publicity, and it seemed extremely strange to me that the organization would choose not to promote its work or that of its grantees”

    THIS IS NOT THE CASE. THERE ARE LAST NAMES OF PEOPLE WHO RECEIVED THE GRANT , POSTED ON THE LEADERSHIP GRANT SITE.
    ALSO, IF I WOULD GET A GRANT, I WOULD NOT LIKE MY NAME WIDELY RELEASED.

    KATIE WROTE "I did some MORE looking, and found that there are people complaining online that they paid between $2700 and $4000 to an "outside business plan consulting company" that Leadership Grants Organization had recommended--but these people had never (a) received help on their plans or (b) heard back from Leadership Grants Organization.

    ABOUT A MONTH AGO, I CONTACTED, THE LEADERSHIP GRANT RECOMMENDED, CONSULTING COMPANY AND ASKED FOR QUOTE, RECEIVED IT AND FINALLY DECIDED AGAINTS USING THEM(ALTHOUGH THEY APPEARED KNOWLEDGABLE).
    SINCE THEN, I HAD NUMEROUS CONTACTS WITH LEADERSHIP GRANT AND THEY TREAT ME AS COURTEOUSLY AS BEFORE.

    THE ACCUSATIONS DO NOT MAKE SENSE TO ME AT ALL. CAN I BE WRONG? – MAYBE. BUT USING THE WORD ‘SCAM’ ON ANY ORGANIZATION WITHOUT A PROOF IS WRONG

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  7. Hello to all,as a bussines owner who has applied to leadership grants,and is curently waiting for grant aproval. I truly hope that this is a up n up organization,I have submitted the requested business plan along with support letters from other business owners here in kansas city,mo.So far i have recived great feed back and direct communication from my apponited grants rep. Only time will tell if this is a scam or a blessing to small business people who want to live their dreams of free enterprise and self employment.good luck to all

    jbey-owner (beys noveltioes & gifts- kansas city,mo.)

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  8. Thank you all for your comments.

    The reason I made this post public is because I had received (and continue to receive) e-mails and phone calls from concerned entrepreneurs who, like me, were hopeful but wary about Leadership Grants Organization. (To date, I've received no fewer than 12-15 personal e-mails on the subject.) As I stated in the post, the information yielded by my research made me ultimately decide against moving forward with a grant application. However, the last thing I intend is to slander a legitimate organization, and I apologize to those whom this post has offended. Still, I think it's important for entrepreneurs--and consumers--to share information and experiences the way people have been doing here. So thanks again to everyone who has commented so respectfully, in a spirit of concern and curiosity. I hope you all will keep me, and each other, posted on what comes of your grant applications!

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  9. My first impression....gathering brilliant ideas and the business plans as well then taking the viable ones for themselves. Cleaver way to have entrepreneurs freely hand over their often closely guarded business ideas, with business plan and all, with no questions asked.
    No I think I will pass on this opportunity.

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  10. I recently applied for a grant from Leadership Grants to grow my small business. I have been in touch with Ann, my assigned case worker on several occasions. After submitting my business plan Leadership Grants contacted me to request due diligence documentation, which I am preparing. I haven't ever felt scam vibes nor have I ever paid for anything. In fact, the Leadership Grants website provides extensive, detailed business building resources for free. If Leadership Grants doesn't turn out to be a viable funding vehicle, at least it prompted me to write a very detailed business plan, which has proven itself a valuable asset. Winning this grant would be great but it's not the only funding source I've pursued. Money ain't free, friends.

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  11. Hi! Well, I missed my "deadline" to submit my business plan because I was waiting for quotes on software I would need. So... now that it seems to be established this is a scam, have you got any ideas on where I can safely go to get a grant? My business is past the research stages but I have not opened yet, no money... I found the office space I would need, have three clients that will hire, but I need the software and computers. I was very excited about this but I thank you for researching them.

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  12. This is a total scam. After jumping through hoops, providing all necessary documentation I was denied with no reason given. If they do give out grants it must be to friends and family because I haven't seen a single person actually receive any money yet they say most of the people who send in all the paper work get some money. I'd be happy just to get all the money I spent on postage and getting the paperwork done back.

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  13. I would seriously like to see atleast one person recommend The Leadership Grants Organization. I do not want this to be a reference of Mr. Ethan Roberts, but rather a business owner who has experienced the benefits of the organization. Is anyone able to supply us with any sort of references recommending this organization? Anyone?

    Once I find that, I shall apply, create a business plan and complete whatever due diligence is required of me. Til then... I will keep searching for something I feel a little more certain about.

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  14. hello,
    Has anyone actually received money for leadership grants of america?

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  15. Hello all/ still waiting for a letter from the review panel of this (L.SG.O.A.) my funding date was ended on 9/30/10 according to "Ann Ross" it takes 45-60 days for the commititee to send out a letter of approval or not for the grant. If this is a scam then they are stealing or business plans and other info, what can we as a gruop do ? to have them investigated.

    business man-kc,mo.

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  17. Katie - how I wish I read your blog post before I spent roughly $450 putting togther my application, not to mention countess hours working on my plan. While it's true that I would have had to produce a business plan anyway, the Leadership Grants process consumed every free moment I had for over 6 weeks straight. I got the whiff of a scam early on - when their business consultant company gave me a really hard sell to the tune of $5K for a business plan. My suspicion was further piqued when I learned that the sponsors sit on the review panel for granting funding. Red flag? Then, when I told the consultancy the $5K was out of my range, he started bargaining with me on the phone. The unprofessionalism was palpable. When I asked their success rate he could not tell me - they do not track it. Seriously? When I asked to speak to the CEO he said I would need to make a downpayent first, Really? But I was assured by my representative in Canada I would not be penalized for writing the plan myself or using an outside company. I prepared a meticulous plan and submitted it to the organization. I also provided due diligency items. Moreover, I raised matching funds (something the organization claims makes a grantee extremely competitive). Despite satiating all of these requirements, I received word today in a form letter that I was rejected for funding - the letter said that most grantees are rejected because of a lack of matching funds. I called Leadership Grants and asked why it was rejected and they said they "did not have the infrastructure to provide responses to individual applicants, as they receive thousands." Fair enough. My suspicion was aroused again when the liason could not tell me how much in grants had been distributed this year. If this organization is not a scam (which I believe it is), then it is painfully unprofessional and I recommend NOT wasting one's time with an application. As my father told me, if it's too good to be true (i.e., free money for a for-profit business) it probably is.

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  18. Oh yes - what a scam this is! Same as above post. I submitted my application in Canada. I got the form letter today saying that I wasn't able to demonstrate Matching Funds. Bullpucky! I had a signed letter from my RBC Dominion Securities agent verifying that I had 4 times the amount requested in unencumbered funds. I did have a professionally prepared business plan - I just didn't use the company that they recommended because they were way overpriced. I too spent countless hours doing research and gathering the pertinent documents for the consultant. I took the completed plan to our company advisory board member and he made some minor suggestions but said it was a "solid, well-thought out" plan. I'm telling everyone who will listen what a farce this program is. There is nothing in Ethan Robert's post that gives me confidence in this organization. Perhaps Leadership Grants should have asked their consultant buddies to write them a proper plan before they started this venture. I'll bet my plan goes a lot further than theirs!

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  20. They are a total scam. don't waste your money.

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  21. They claim that they can give up to 100K yet clearly they do not even have these funds. There is a hidden agenda here.

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  22. Sounds to me like it is a way to hawk their sponsors and get advertising dollars I am working on a business plan for them right now but plan to not submit it I will go elsewhere.

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  23. Thank you Katie for starting this blog and allowing others to share their feedback.

    I was wary of this organization from the beginning, specifically when I received the introductory email below (I've erased my name). It's comical that "Shelley" included "Derek" in the email to get back to me regarding his services.

    Under the Contact Us link on their website, Shelley Barnes is the only representative listed (on the Canadian site anyway). Shelley must be really busy with all those Canadian accounts, phewy. I decided to call their NON toll-free number, and it goes right to this Shelley's voicemail, instead of an automated service that you would typically hear.

    As others have stated, the recent grant recipients do not have any organizations associated to their names. After doing quite a bit of research, I have not found one person state they received a grant from them.

    Think twice about submitting your plan. It's sad to say, but I wouldn't be surprised if they took your hard work and tried to sell it to someone else... aka "Derek"

    PS The Ethan Roberts joker, who posted his comments above, is the "General Manager" listed on the website. Conveniently, he does not have a direct line posted. Hey Ethan, business must have been pretty slow if you had time to comment on someone's blog at 3pm on a Monday.

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  24. Hello (Name),

    I'm writing to let you know that I mailed your Welcome Guide by Canada Post and wanted to mention that I took the liberty of including a brochure from Canada Business Plans. (www.canadabusinessplans.org)

    Canada Business Plans offers business plan consultation and writing assistance to entrepreneurs like yourself and they have special packages and programs for Leadership Grants applicants, so I felt an introduction may be useful to you and have included their manager, Derek in this email thread. (Derek's toll free number is 800-481-8434, Ext 2212.)

    Derek, when you get a moment, please get back to (Name) with some more information regarding your services.

    (Name), if you already have a business plan, or if you don't need assistance preparing your business plan, please 'reply to all' and let Derek know so he doesn't take up your time.

    Thanks everyone, I hope this introduction was helpful!

    Sincere regards,

    Shelley Barnes
    Applicant Support Services

    Direct: +1.416-572-7568 - (Long distance charges may apply)

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  25. Should they be asking for my credit report???

    Beth

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  26. There is no such thing as free money...... there never has been and never will be. If you want to be a success you have to work your ass off. Any prospective new business owner is doomed to failure if they honestly believe this will work. These people are running a business and making money by 'coaching and fine tuning' business plans for any of you who choose to pay. The sell tactic is clever and some of you have fallen for it expecting to get what...free money. Don't be so niave.If you think you have what it takes to make it as a business owner and you honestly believe in this free cash.....think again or go get a job at Mcdonalds.

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  27. Dont waste your time. After spending $400 for a business plan and lots of time, I was denied with no explanation. The outside agency that they suggest for the business plan wanted $2000. What a joke. These guys are in cohoots with them. If anyone is getting grants its their friends and family. I think everone should get together and complain so that we can shut these scam-artists down!

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  28. well kinda sucks to here this my dead line is jan 7th i spend past 4-5weeks an staying up all night to make one i hade a phone call from a consuling agencey but he never mention anything about me paying to get him to looki it over he wanted me to e-mail him the one i made to look it over. Unforently the day i was done was friday an he was going be in office for only 2 hrs that moring an cause i stayed up all night my e-mail i sent using my new outlook an hotmail merge account never got sent only in my outbox. so i dunno if this is a scam or not but i havnt been asked to pay this guy calling me any thing only weird thing is day before friday he called me and asked me how our my funds coming. and i was like huh but just thought maybe he ment my plan and he said he would be in the office on friday for 2hrs ,,, newyears eve day. anywas cant hurt to send it out now. unless they try an take my plan an start up the company i wanted 2

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  29. It's a scam, pure and simple. The only defenders are always the same people. Shame on me for being duped and not doing more homework on LGO and it's "directors & prinipals". What is a Micro Grant anyways? Ethan Roberts states above "the remaining funds IF ANY are given in MICRO GRANTS" !!! Wish I would have read that a few weeks ago. I thankfully stopped the madness at the requested "due diligence" items. I called "Shelley Barnes" and was horrified by her tone and unprofessional manner. It was if I was talking to a chain smoking convict from her cell. If it smells like crap and looks like crap...its CRAP! I don't need to eat it to make sure. However...I still have a bad taste in my mouth. Some must have came through the phone that day.
    Does anyone notice that "Shelley" & "Ann" are reps for the US and Canada? Smells funny to me. It's disgusting that the BBB in Canada gives them a A- rating. Shame on them too. I feel bad for people who wasted even more time than I did. It is simply cruel to prey upon people who are only trying to get some help with their ideas. I'm sure that the business plans submitted are safe from being implemented by the above crooks...that would take work. I highly doubt they even read them. They are in it for the 'con-sulting fees" thats it. One thing I know for sure...they will reep what they sow. This will be a news/scam story soon enough.

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  30. I also applied for the leadership grant last year 2010. After countless hours, and getting my grant in ON TIME ! I was told it got "LOST"
    I sent my Purolator Courier confirmation to them and then they sent me an email back saying I didn't meet the deadline. After calling Shelley Barnes - I was told - that was a mistake and she corrected her email to me. IT was at this point I knew I wouldn't be getting the grant - because if they lost my couriered application - then said oh it's okay now we found it. BS !!! So then I was excited about 6 weeks later I got a reply asking for everything dilligence letters from my bank and asked for my credit bureau (Personally). I didn't send this - as I think sending your personal credit bureau to someone you can't confirm or authenticate their office is just plain STUPID. If your a business owner and sent this - your business is gullable and you need to be aware of scams out there.
    I was denied my grant of course.
    I actually called two grant recipients and confirmed they received money. However, the names have been the SAME on their web site for the past year !!! I thought they did quarterly grants ???

    Note to self: When something doesn't feel good - don't do it.

    Are they a scam ? Who knows but something is up for sure... their is doubt !!! As things don't all add up for sure.

    God bless everyone for trying... whatever their intentions are - good or bad... they need to ensure they address the situations brought up on this blog. I would if I were a diligent grants organization.

    Perhaps they are just too busy getting too many applicants and can't keep up. Maybe it's just a serious tax write off and way to keep another loop hole in the legal system for whatever illegal scam they are running.

    One thing I know for sure.... if there is any doubt just DON'T DO IT. Don't waste your time.
    I am not sorry I did - because now I have my copy of my business plan it made me think and analyze my business.

    Let's look on the upside - Lesson learned !!

    I hope for the sake of mankind this is not a scam and is a real organization.

    Take care fellow entrepreneurs !

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  31. I say let's call myth busters on this one ! !

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  32. I am very glad to have read this. My deadline is February 4th, 2011. I have had a similar conversation with "Shelley" where she was very rude and unprofessional. She would cut me off and at one point said "I don't care why you need an extension". Please note that the "business plan template" they have as one of their resources is the exact same one found on Biztree.com. There are free downloadable documents from their "Business-In-A-Box" service which includes every conceivable form, letter or financial statement template your business could possibly need. Please note that the one (business plan template) available from LGO has been modified to state "Be sure to answer the following questions that are usually asked by our Review Panel". The original from Biztree states "Be sure to answer the following questions that are usually asked by potential investors". I have also now confirmed that the marketing plan template on the LGO resource center is the same as the one in Business-In-a-Box. I encourage readers to go to Biztree.com and check it out. They even allow you to download Business-In-a-Box (please read the user agreement carefully before proceeding). I hope this information is very helpful, I appreciate everyone's input as it has saved me from further exposure to LGO. I will not submit my business plan as I too believe there is a risk they might either plagiarize it or outright steal it. Like the others, I don't regret this as it has forced me to actually put my business plan in writing which is not a waste of time.

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  33. I would like to thank everyone for their responses to this blog. I have recently applied for the LG but after reading this I will stop wasting my time. For anyone living in Ontario Canada looking for business funding, check out the Ontario Self Employment Benefit program. Its run in conjunction with Employment Ontario and in my region Niagara College.

    http://www.mybdc.biz/content/FundedPrograms.aspx

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  34. Thank you all for starting this blog. Unfortunatly, I had already submitted my Pkg before this blog started. My pkg was submited Oct 2010 and I am still waiting for an answer. I will keep you posted on the results. I just hope and pray that this is legit.

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  35. WHAT DOES IT TAKE TO HAVE THESE GUYS SUED? IT SEEMS THESE PEOPLE OPERATE WITH MAX IMPUNITY WITH THIS UTMOST VIOLATION OF PEOPLE'S INTELLECTUAL RIGHTS AND OBSTRUCTION OF PEOPLE'S VIBRANCY AND CREATIVITY TO OVERCOME DURING THIS ECONOMICALLY SUFFOCATED TIMES.
    FEEDBACK I GOT WHEN I CONSULTED GVT RUN BUSINESS CONSULTANCY IS THAT THEY TRADE ON PEOPLE'S BUSINESS IDEAS BY COLLECTING MANY B-PLANS SELLECT A FEW AND SELL BRILLIANT IDEAS AT HIGH PRICES. THEY ALSO SOLICIT FOR BUSINESS CONSULTANCIES WHO PAY LEADERSHIP GRANTS FOR THE SUBMITTED IDEAS AND B-PLAN EDITTING OPPORTUNITIES. THEY GET RICH FROM CREATIONS THEY LIED TO ACQUIRE. OUR HARD INTELLECTUL WORK.
    I PROPOSE A PERTITION SO WE UNITE ALL PEOPLE WHO HAVE BEEN ILL TREATED BY THESE PEOPLE.WHEN THATS DONE THEN WE CAN FILE A COURT CASE AS THE RICHES THEY ENJOY ARENT OF THEIR SWEATING. MY DOCUMENTS WERE NOT RETURNED DESPITE SENDING THEM A MONEY ORDER SO THAT I CAN SECURE MY INTELLECTUAL PROPERTY. ETHAN REFUSED ME MY OWN CREATION ONLY BECAUSE THE MONEY ORDER WAS ADDRESSED TO SHELLEY BARNES. WHEN I OFFERED TO COLLECT THEM FROM THEIR OFFICE I WAS TOLD THEY HAD BEEN SHREDDED. WHY WAS IT SO HARD FOR THEM TO LET ME HAVE MY OWN WORK BACK AS I HAVE A CHANCE TO IMPROVE ON IT? I FEEL VIOLATED AND CHEATED ONLY BECAUSE I TRUSTED THEM. I WELCOME MORE IDEAS ON HOW TO AFFECT A PERTITION AND A COURT CASE. BEAUTIFULL PEOPLE LETS TAKE ACTION.

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  36. Good point. My assumption is that only those who have submitted a business plan and/or have paid any funds to either LGO or their "sponsors" have grounds for any legal recourse but if this is started and there is a need for some type of supporting witnesses, I would be more than happy to oblige.

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  38. Hi All,

    I am planning on submitting a business plan shortly. The one thing that I see lacking from everyone's comments is a concise explanation of their experiences. I have some doubts about this organization. However, like a few of you, I have already gone through rigorous preparation and my plan is already complete. Our company's product is very difficult to duplicate so I am not concerned about the LG taking my plan and selling it to others. Our market is a niche market and will not attract any bloodsuckers that are looking for a good idea. Wish me luck!

    Here's my experience to date.
    I had a brief conversation with Shelley a couple times over the past few months. Overall, like many, I found her to be very cold and matter-of-fact with me. Basically, not the kind of person I would have operating my phones.
    I opened my account with LG mid-January and received a “thank you” email instantly. The email informed me that Derek would contact me from http://canadabusinessplans.org/.
    In less than 24 hours I received an email from an Administrative Assistant from Business Plans International. On behalf of a “Mr. Ho.”
    The email address was from an “@businessplanservices.org” email address. The office location in the signature is:
    Business Plans International
    460 Richmond St. West
    2nd Floor
    Toronto, Ontario M5V 1Y1
    Canada

    1001 SW 5th Avenue
    Suite 1100
    Portland, OR 97204
    United States of America

    Tel: 1-800-481-8434 Ext. 2243

    NOTE: This email did not come from Derek from Canadian Business Plans.

    Here is the message I received:

    - - start of message - -
    Nice to meet you - I'm Mr. Ho's Administrative Assistant.

    I'd be happy to set up a complimentary needs assesment for you, with one of our Business Plan Representatives. Assesments are free and last for about 15 - 20 minutes.
    I have openings between 8am to 8pm EST. Please reply to this email and confirm an available time and contact number which we can reach you. If it's easier to book by telephone, please feel free to call me.
    Best regards,
    - - end of message - -

    Two days later I received an email from Shelley (probably automated) reminding me of my submission due date.

    Stay tuned... I’ll keep you posted on updates. So far, there are couple red flags.

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  39. wow... I was actually excited to start the process.. but not anymore! Thanks Katie, I was going online to show my husband the website and as I was typing your blog came up! How ironic!

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  40. SCAM, SCAM by all meaning of the word. Please whatever you do, do not go through these people. If you read the information "Estelle" wrote, the exact same thing happened to us. I'm hurt but refuse to let these S.O.Bs destroy my dreams. As another person wrote, nothing is Free. Another question is to ask them is why are they not allowed to loan in the US now? Just ask …..

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  41. Best put your business plan under your pillow if you believe in the business fairies.
    If you are awarded a 'micro' grant it wont pay for your postage.

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  42. Yep this is indeed a company that will string you on and give you false hope. My daughter spent hours and hours on a business plan, had several experienced people read it over. It was perfect. Next step Credit ck and proof of match financial funds from the bank, done. Everything they needed we provided. We thought we had the grant in the bag. Guess what, they also sent us a letter that we did not have suffient proof of matching funds. What more could we have provided. We gave them a letter signed by the bank manager proving the matching funds. We didn't use any of their recomended services for the business plan so we are not out any of our money, just false hopes, wasted time and a bruised ego!!! DON'T WASTE YOUR TIME ON THIS , UNLESS YOU WANT EXPERIENCE IN WRITING A BUSINESS PLAN, CAUSE THAT IS ALL YOU'LL GET OUT OF THIS. Signed: Stupid to fall for it!!!

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  43. Hello,

    I also submitted a business plan to the LGO with credit report etc. Haven't heard anything back as yet, but I guess I am not going to. It is just to bad that people don't see this earlier. There are a lot of bad comments here and not one good one.

    Just from the comments you can tell it is a scam. Ethan is not justifying anything. What's to say the "expenses" Cough payroll don't go up every year so there is never any money left over.

    Anyway you look at it this is a scam and it should be stopped. It doesn't feel very good that those kind of people have what I have worked so hard on over the last 5 years, along with my credit report.

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  44. Hi,
    My deadline is next week, and am so glad I came across this blog. I was already stressing over, wanting to extend the deadline. I just finished the "Starting a Small Business" seminar series at Toronto Business Development Centre. The last seminar was on financing and I asked the facilitator what he thought of LGO, and showed him their brochure. He said, don't do it, you are wasting your time, no one gets anything out of them, their very website is missing too much info. Besides, my husband works for a bank and all he does is deal with small businesses and read their business plans all the time to approve the bank loan. He said the only thing he was surprised with LGO is that there is particular form they should provide you with, which is an assurance that your BP will never be disclosed to any third party, or something like that. Banks do it.
    I'm glad I read this blog, I'm going to work hard on my business plan now and put it in action right away. But I will not give it to them.
    Elizabeth

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  45. Thank you for this thread. It is tempting to follow leads to "free" money and doing so led me to the Leadership Grants (LG) organization for help in getting my business off the ground. I had assumed the program was too good to be true and was not going to contact them. Subsequently, I had a conversation with a legitimate Canadian government loan funding group who had a link to LG on their website and provided assurances to me that it was a legitimate group, although no one they knew had ever received funding. I did send initial contact information to LG, but after reading these entries, this will be as far as the process goes with them. As well, I have advised the government organization I talked to, to take a look at this blog thread. A good thing that has come out of all of this is that I am now more motivated to create a business plan, which was something that wasn't really on my radar before. Thank you to the other writers who have provided references to business plan sites, and reinforced for me the incommutable value of hard work in turning visions into reality.
    Laurie
    P.S. Katie -- I love the quote at the top of your site. All the best to you in your bookstore endeavour. L.

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  46. Many thanks to all for the insightful information on this blog. I was planning to send my plan to LGO next week so timing couldnt be more perfect. I had already developed my own business plan but was invited to send it to the BPI sponsor for a "Free" review to see what if anything could be improved, to understand the cost of consulting. There were no pressure tactics but, thankfully, I had the snr consultant I spoke with sign a confidentiality/non-disclosure agreement in advance. To my surprise, he said the plan was fine and that there was nothing he would change, then wished me luck with the application. But after reading these comments, I've decided against sending my plan to LGO and risk any further exposure to them. Thanks for raising the alarm, Katie!

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  47. Scam - Well after reading all the above comments, i was surprised seeing the name Shelly Barnes. Through our back and forth emails, i remember that i wanted to come and discuss my busniness plan with the advicer, but i felt that they prefer doing that through a phone interview. So, i guess all of you know their address which is
    busiThe Leadership Grants Organization of Canada
    C/o: Grants Review Panel
    1920 Yonge Street, Suite 200
    Toronto, ON M4S 3E2
    and guess what, after i googled 1920 Yonge Street, Suite 200, I got this:

    Progressive Lawn Maintenance & Snow Removal Show border

    1920 Yonge Street, Suite 200 Toronto, Ontario, M4S 3E2 work416-572-7747
    http://www.progressivelawnmaintenance.com
    surprised and shocked.

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  48. Thank you all again for your feedback. I am so sorry that so many people have been affected by this, but I'm grateful that you all are willing to share your experiences in an effort to prevent others from going through, at best, a waste of time, and at worst, a waste of (very) hard-earned money. Best of luck to everybody in your business endeavors!

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  49. Guys, I would like to sue the Leadership Grant Organization of Canada nad the Canada Business Plan. Anybody interested in joining me?

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  50. Hi, I thought I would share my experience. Always optimistic, often disappointed.

    The first red flag I had was when I came across the website. They spent a lot of money on the SEO. How could they afford to be so optimized?

    I spoke with Shelly on the phone. She was pretty horrible, I got icky vibes from her.

    Second red flag was when Shelly sent my information to a third party without my permission, Shannon at Canadian Business Plans.

    Hello Lindsay ,

    I'm writing to let you know that I mailed your Welcome Guide by Canada Post and wanted to mention that I took the liberty of including a brochure from Canada Business Plans. (www.canadabusinessplans.org)

    Canada Business Plans offers business plan consultation and writing assistance to entrepreneurs like yourself and they have special packages and programs for Leadership Grants applicants, so I felt an introduction may be useful to you and have included their manager, Shannon in this email thread. (Shannon's toll free number is 800-481-8434, Ext 2243.)

    Shannon, when you get a moment, please get back to Lindsay with some more information regarding your services.

    Lindsay , if you already have a business plan, or if you don't need assistance preparing your business plan, please 'reply to all' and let Shannon know so he doesn't take up your time.

    Thanks everyone, I hope this introduction was helpful!

    Sincere regards,

    Shelley Barnes
    Applicant Support Services


    I decided to have consultation call will shannon from the Business Plans International writing service.

    Red Flag - she tells me that today of all days is the last day of a deal they have where they include the financials with the business plan. Usually an additional $1500 charge. She also boasts that if they applied for the extension on my behalf, I would get it. What kind of business plan writing service has week long deals? I respectively declined.
    - She sounded old... grandma con artist?

    But always looking at the world through my rose colored glasses, I continued to spend every waking our gathering research and finishing my business plan... that brings me to finding this blog...

    Thank you Katie.

    I won't waste any more of my time... I hope no one else does either. They are totally praying on people's hopes. It's sick.

    And that email they send you was such an overworked pile of garbage. Sounded nothing like a professional grant program.

    Fishy fishy.

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  51. I've done some research into Leadership Grants, as both myself and a classmate in my entrepreneurship college program are considering it. This blog has helped me confirm many suspicions that something isn't right.

    I also found that North End Home Inspections, one of the recent grant recipients, has a website, but it's broken. Their Facebook group seems riddled with pyramid scheme ads and the like. Also, TSR Virtual Solutions' website (another supposed recipient) looks like it was designed by a five year old, and displays the LG banner at the bottom proudly.

    I can't say what this means for Leadership's legitimacy, but hopefully this can help anyone else doing research.

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  52. I was leary of this from the start, and I'm glad I trusted my gut. A quick internet search found this blog, which has saved me from a big waste of time.

    The "Calgary" office is a Regus center, where you can rent a single cubicle if you want and have the benefits of a central receptionist to answer phones and greet guests. I called the number there and guess who I spoke to? Shelly of course!! So it appears they just forward those phones to T.O.

    I'd like to think that this organization is just trying to sell business plan writing services, but my opinion would be that they are actually trying to obtain great ideas to copy and/or sell.

    My mom told me as a kid to not accept candy from strangers. That same advice applies here.

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  53. I have recieved money from the Leadership Grants Organization. From my experience they are not a scam organization. It was a very easy process.

    For those complaining, maybe you just didn't have the greatest business idea, or something was wrong with your application. Even if you have a good business plan, and all criteria, you may not recieve money as I'm sure hundreds of people apply and there is only limited funding available.

    My website is www.adrenaline-productions.ca and you can contact me at ben@adrenaline-productions.ca. I won't be able to help much beyond telling you they are a legitimate organization and recommending you apply.

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  54. 9 months of this blog, 52 negative comments, one supposed good comment, hmmm...

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  55. HI EVERBODY. SORRY FOR SCREAMING HERE (CAPITAL LETTERS), BUT I WANT TO BE NOTICED. I'M ORGANIZING A GROUP LEGAL ACTION AGAINST THE LEADERSHIP GRANT. My business idea had been supported by many grant organizations, I have three Masters degrees, but Leadership Grant not only didn't give me the requested grant, but stole my private informations and didn't keep the idea confidential. Im suing them and would like people in similar situation to contact me. Together we can finish off this scammers and their supporters. You should know that the company belongs to the owner of Ashley Madison - bastards, who make money on enabling people to cheat on their spouses. Well, let see if the law in Canada has anything to say about this situation. If you are interested, please contact me at kpictureproductions@gmail.com.

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  56. Hi. I contacted them 2 days ago (online application) and have received 2 E-mails from the today. They want to talk to me over the phone needing some extra details. So it sounds like I shouldn't do that? And of course give no financial institution info, SIN# or anything like that. It's too bad I'm unemployed,53 and want to move and spend my last years in B.C. I do have enough in RRSP's to finance the move and buy a mobile home. I think my chances of getting a job there would be better than here (Stratford,ON). But the whole thing would be scary and risky. I have successfully quit smoking and drinking though and I would feel better living where mountains to see everyday. I wish I could get a sizable grant to buy a better home and make a go of self employment, perhaps including my youngest daughter. Feel free to E-mail any helpful advise to
    kirkby.john@gmail.com If interested I could forward the Leadership Grants messages to you also. Thanks John

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  57. Anyone can register a "legitimate" not for profit and get a registration number...its a joke how these people put it on their site as though it gives them credibility....here's what they do....they generate leads for business plan services under the lure of free money, then their ASSOCIATES (NOT THEM, see what shiesters) make money from that and kick much of it back to them from which they make token grant awards of a few gran here and there, almost like an advertising expense....I have called their so called grant recipients...also,they go to great pains to appear legitimate...funding cycle my #$%% they were unable to find anything wrong with my plan....better educated than them had the money, unimpeachable credibility...they asked for proof of substantial funds, I provided it...then they apologized they could not accomodate me...they are clowns and jokers....think ablout it...their so called "donors" the the business plan guys...lol...and I guarantee no one has even gotten more than a few grand, here or there....I called them

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  58. Thank the good lord for Google! I knew there was something up with these people and now it's in the clear. The one person who claims he got money from these robbers has a cheapo "website" (a page) that links to a facebook account where he puts his logo on pictures and posts them for 40 followers. I'm SURE that's what a legitimate grant association would be tripping over itself to finance :)

    THANK YOU KATIE!

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  59. Hello all,

    I applied and got all my due diligence items together for the March deadline of 2011. I just received in the mail today (July 28th) my denial for approval from the committee stating the reason was probably because I did not have matching funds. I submitted every piece of due diligence that they requested including proof of matching funds; it therefore irritates me when they decided to throw out a random comment assuming that is why I was denied funds. I have a degree in Business Administration and have a thorough understanding of running a business so if they were to tell me I was denied because they felt it wasn't viable or that I was not in need of the grant I could accept that, but to say it was due to reasons that I fulfilled that makes we feel that I was one of many others who just got the same letter sent in the mail.

    I do not regret preparing for the grant and getting my business plan together because it will make the process for applying for creditable grants that much easier and I feel it is an accomplishment to write my plan from start to finish and is great experience. However, I do truly believe after gong through the process and doing more research on the company that their main line of business is not providing grants but taking money from individuals who choose to use their other services.

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  60. Interesting, when you email them that you do not want to work under the time constraints that have set and ask for your application to be suspended until you re-contact them, they tell you that you have to wait 12 months and need to use a different email than the one you used for your original application. Why would a legitimate grant program impose a 12 month delay for re-application, all because I told them that I wanted to take my time with the business plan development and was going to work with local organizations for assistance. Why would I need to use another email address, the application is for the same individual same idea. Glad to be done with this!

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  61. Thank you everyone for posting to this site. I am so glad I chose NOT to share my proprietary information with this company. I looked for this company on Google street view. It is in a building at 1920 Younge street in Toronto, ON supposedly. I then called a few of the other merchants in the building to find out if they knew of their fellow tenant. One woman wisked me off the phone and wanted absolutely nothing to do with my questions. She did give me the superintendents phone number though. Another company indicated to me that Suite 200 (as they list) is a floor with the most number of businesses. She indicated it was shared office space. I don't think I am going to take this any further. Also, when you search the address in google maps, Leadership Grants is not listed as a business at this address. That may or may not be relative, but its all the proof I need; That and everyone getting the same rejection letter.

    I would expect that if someone can take the time to review your business plan and make a decision, they can at least tell you why you didn't make the cut.

    Thanks,
    Liz another Concerned Canadian

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  62. I wish I had read this blog prior to forwarding a great deal of personal information to this organization.

    When we started our business we were self funded but always interested in opportunities for additional funding. Our business plan was prepared, along with confirmation from our bank of matching funds.

    We applied and forwarded very detailed information about our business to Leadership Grants and awaited a response. I now wonder if this isn't a tool to allow those involved with the organization to drum up business ideas????

    We contacted the organization recently to try to determine the status of our application and were advised by e-mail that they had not yet made their decisions for this cycle but would do so in late September or early October. That very day I received a letter by mail advising that we had not qualified for funding. The letter went on to say that they were not able to comment as to why we did not qualify but the typical reason would be lack of matching funds. That struck me as odd (both the timing and comments) as we had included letters from our banker advising that we did indeed possess matching funds.

    What is not a surprise is that my e-mail asking why the process unfolded as it did have gone unanswered.

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  63. I applied to this before and my gut said no when the stage came to supplying credit information.I asked again after my business has grown to apply. My gut again rebels. Thanks for the posts and investigation. I am better off to keep working my backend off on my own business and spending the hours promoting etc.

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    1. I am (was) in the process of sending my business plan to the Leadership Grants Organization....

      Also I have contacted: Canadian Grants Business Center and they want $699 just to apply for 600 programs...fishy, right?.... they do not communicate by e-mails.... WHY?...I have googled them = scam. I have googled Leadership Grants Organization and found this discussion... THANK you all....and Google...another Concerned Canadian

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  64. My submission deadline for my proposal was June 8th, 2011. The review panel was supposed to review applications in October, 2011. I contacted them in September asking when I should be expecting to hear something. My reply from Shelley Barns at LGC was by the end of the year. It is now February 2nd 2012 and 8 MONTHS after applying for my grant I have not heard anything!!! 8 months!!!! I've contacted them several times to see what was going on and the response I get is that 'the review panel is made up of VOLUNTEERS and they have to work around their schedules!! REALLY? So frustrated.

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  65. Katie, you've done a real service for everyone. I would suggest that anyone interested in reporting "www.leadershipgrants.ca" organization as a scam should contact:
    RCMP Phonebusters. You can google the name and it will take you to: www.antifraudcentre.ca
    The following information is quoted directly from that site:
    It's not always easy to spot a scam, and new ones are invented every day.

    If you suspect that you may be a target of fraud, or if you have already sent funds, don't be embarrassed - you're not alone.

    If you want to report a fraud, or if you need more information, contact The Canadian Anti- Fraud Centre:

    Toll Free: 1-888-495-8501


    Toll Free Fax: 1-888-654-9426
    Email: info@antifraudcentre.ca

    I was fortunate enough to find them when I was involved in an internet scam. If you don't get your money back at least you know there's a team of RCMP members devoted to gathering information and chasing these scammers;charging those they can catch in the act. They were great to deal with. They made me feel like a hero, not a dunce, for getting caught up in the scheme. Getting involved is a miserable experience and like any theft, it leaves you feeling violated and it leaves you feeling like a simpleton, a ninny a sap; take your pick because you fell for scam. You have no one to blame but yourself.
    Katie and the rest of you I can't thank you enough for being there when I needed you. The Holy Spirit is really looking after me! You are angels.
    I too sent in an application to this site. I took it as legitimate because it came from:
    "Alyssa Gregory, your Guide to Small Business Information" site. I subscribed to the Newsletter a couple of years ago and have found her Canadian content to be very good. I've used a few of her resources and they have been a real help. I got suspicious myself when I received a call from Rose Green from "Insight Communications". When she introduced herself she said I had requested her to call and she honoring my request. I told her that I had no memory of asking for help with my plan and I had no idea if I would get an extension. When she told me I must've "hit a button with her name on it accidently", I couldn't argue with that, but then she added that I "had recieved the extension"; bells went off, but as I talked to her she sounded sincere and very interested in my type of business. Then she told me she could do my plan for me for $2900.00 and I could make it in 3 payments.I told her I'd have to think about it and she asked when would be best to get back to me and I told her Monday. I can't wait to get her on the phone on Monday! I'll let you know how it goes. We all need to contact the antifraudcentre.ca to let them know that we think we've been approached by a scam. That's the only way we'll see justice. If enough of us alert the RCMP maybe they'll post it on their site.
    Thanks for giving me a chance to have a voice in your blog, Katie.






    I was searching her name and the website of her company and it just wasn't making sense. Having been bit once makes me very dilegent on getting all the facts. I would never give my credit card number over the internet again, not even for my favorite charity. Unless I know it's a secure site like Paypal, where they guarantee the company is ligit or your money back, there's no way they'll get money from me.

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  66. Yes indeed, isnt the internet a quick and resourceful tool....
    Thanks to Katie and all the contributors on the blog to date.
    I first learned of LGO 3 days ago....submitted an application as a lark to see what would transpire, and sure enough everything that has been mentioned above happened within the first 48 hours. I even received an email from the business plan writing service trying to hock there wears after I told Shelley I wouldn't need assistance. That's when I jumped on the 'net' to do some research......low and behold.....here I am...lmao.
    Scam or not....I feel bad for those that spent big money in hopes of getting free money....I truly hope you got in return a professional, accruate and polished business plan.
    If nothing else, to all the entrepeneurs out here....you really needed a business plan anyways! Just maybe not one to be put together in less than 6 weeks and incur all those extra hours and sleepless nights.....

    Well all I can say is.....Here's a big Trudeau salute (inside Canadian joke for those Americans on here) to all of those associated with LGO.....

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