News September 28, 2021
School District Issues Fraud Alert on Promo Company
The alleged scamming involved a Texas-based company selling branded merchandise to a school district in upstate New York.
A school district in upstate New York has issued a fraud alert to its community in response to alleged shady dealings by a Texas-based company that sells promotional products.
The Shenendehowa Central School District, located near Albany, issued the alert after it says local businesses were targeted in a scheme that district officials maintain was perpetuated by Elite Sports of North Richland Hills, TX.
As the Times Union reported, Elite Sports allegedly convinced 10 local businesses to send the company more than $7,000 in exchange for putting the businesses names on T-shirts and banners. The businesses believed the money would go to support the high school football program, and that the T-shirts and banners would promote the businesses at games.
However, the school district, football/cheer programs, and associated booster clubs knew nothing of the solicitations or promises of promotion. Instead, Elite Sports, of its own accord, allegedly used emails and robocalls to solicit the sponsorships and then pocketed the money, with none of the cash going to support the school district or its sports teams. (Elite had reportedly begun selling ads for the basketball season as well.)
According to the district’s athletic director, Chris Culnan, the district received boxes of shirts from Elite, which provided instructions that the shirts be thrown into the crowd and the businesses’ names read during football games.
SCAM WARNING: Ten local businesses agreed to hand over more than $7,000 to a company collecting sponsorships for the Shenendehowa football team.
— Times Union (@timesunion) September 22, 2021
One problem. The Shenendehowa Central School District knew nothing about it. https://t.co/l5RIuXSvXb
Confused, Culnan contacted Elite, which claimed a cheer coach had signed a contract for the promo items. However, Elite wouldn’t provide Culnan, nor the Times Union, with evidence of the contract. “We’ve never given them authorization to email businesses on our behalf,” Culnan told the Times Union. “We want them to stop.”
Issued last week, the statement from the school district warns other area businesses and organizations to avoid doing business with Elite Sports, as the company is not authorized to solicit on behalf of the district or its sports teams.
“We ask that everyone please be aware that this is a scam. Do not fall prey to these illegal solicitations by giving out any information. The Saratoga County Sheriff’s Office has been notified of this activity,” the warning said. “Any official fundraising activities from Shenendehowa Athletics are initiated by coaches or officers in Booster Clubs.”
Elite Sports’ website claims that the company has 30 employees, contracts with schools in 48 states, and maintains a client retention rate of 90%. The site says: “At Elite Sports our main goal is complete customer satisfaction. … [with a] focus on helping communities promote their local businesses, while at the same time reaching out to promote wellness through high school sports programs.”