A shell company is a business with no active operations that exists only in name, and serves as a tool for another business to perform off-the-books transactions. Shell companies exist mainly on paper, with no physical presence (often operating from a P.O Box), employ only one person (often an agent of another business), and produce nothing. They are frequently used to shield identities and/or to hide money.
In 2010 (the same year they found out they were being sued in a California Federal Court for $12 million in a child sex abuse case), West Ridge Academy used $204,237 dollars of untaxed earned income to start the first of its many shell companies, Proficio. West Ridge Academy made the mistake of choosing Paul “Porky” Watson to start hiding its money from child abuse victims and the IRS. The following year, West Ridge Academy paid Proficio $275,037 for “IT and Accounting” services. West Ridge Academy then paid its executive director a bonus for “the performance of Proficio Management’s Investments.”
Paul Watson was smart enough to pretend to do more than just take money from West Ridge Academy off-the-books, but not much more. In less than two years, Proficio had funneled half of a million dollars out of West Ridge Academy, $275,000 of which was billed for the same services it pays its accounting and IT staff to perform, and while he still collected a paycheck from West Ridge Academy as their Chief Information Officer. Watson created a number of Proficio subsidiaries; Proficio Services Inc., Proficio Services Group, Proficio Management Inc., and Proficio Advisory Group.
Ken Allen’s decision to create a for-profit company with non-profit money, pay that for-profit company with non-profit money, and then take a percentage out of that for-profit company (in addition to more than $200,000 per year in salary from the non-profit) because that for-profit company is making money (from the non-profit) is grandiosely brazen. It probably helps to have relatives serving on the board of directors. It is important to emphasize the fact that Proficio only does business with West Ridge Academy, despite listing seven “clients” on its website. A mere five seconds on Google is all it takes to deconstruct Proficio’s claims of legitimacy.
The first company listed is West Ridge Academy itself. So far so good, but about as true as a boy calling his mother his “roommate.”
The second client listed is CALO – Change Academy Lake of the Ozarks, which is just an extension of West Ridge Academy’s “residential treatment” program. West Ridge Academy sent its clinical director to head this program in Missouri, but the business address listed with the IRS is the same as Proficio’s, a PO Box in West Jordan, UT.
- Video of Ken Huey as director of clinical services for West Ridge Academy.
- Video of Ken Huey as director of clinical services for CALO.
West Ridge Academy also claims a 57% ownership of CALO, as a “managing partner,” and earned more than half of a million dollars from the program in 2010.
The third client listed is another residential treatment program for teens called Teneo. There is no mention of West Ridge Academy on its website, but the phone number listed on the front page to “Contact Teneo!” is (801) 282-1013. One only needs to dial this number, not exactly hacker-level information gathering here, to reach the voicemail box of ”Rachel Nobel, director of outpatient services at West Ridge Academy.”
West Ridge Academy claims a 68% ownership of Teneo, as a managing partner, and reported a shared loss of $20,844.
The fourth client listed is Lifestar Network, a bizarre Utah-based collective of therapists who treat pornography and sexual addiction. West Ridge Academy is the managing partner and 39% owner of Lifestar Network.
The fifth client listed is Proficio itself, with a dead link to http://proficiomgt.com/, which is just lazy.
It is worth noting that the business address reported to the IRS for CALO, Teneo, and Lifestar Network are the same PO Box as Proficio’s business address: PO Box 1389 West Jordan, UT.
The sixth client listed is “Catherine Freer Wilderness Therapy Programs” which is a company that just does not exist. They don’t even have a website or phone number.
The seventh client listed is “Santiam Crossing Therapeutic Boarding Schools” and is another company that just does not exist. There is no website or phone number for this client either.
Paul Watson, issued a statement today to MormonGulag.com, insisting that his latest shell company inside a shell company (like a Matryoshka doll), Proficio Advisory Group, has nothing to do with West Ridge Academy. This is, of course, a lie.
I am not affiliated with West Ridge Academy in any way. Your presumptions about Proficio Services Group are misinformed. PSG is not part of WRA or Proficio Management.
PSG was formed 1 Jan, 2010 (see public records if desired). I purchased PSG from West Ridge on 1 Jan 2011 and withdrew from any position with West Ridge or any of its subsidiaries at that point. Any presumption otherwise is inaccurate.
While I do not expect you to make changes, the offensive articles about PSG and myself are not appropriate given that neither I nor PSG has any association with , contract with or provide any services for WRA at this time and have no intentions or requests to do so.
Retaining those articles may appear to strengthen your cause, but publishing tacitly inaccurate information may not help your fight.
West Ridge Academy is in the awful business of abusing children, and it takes a certain type of person to want to work there, but to suggest that Proficio (also known as Paul Watson) is in any way separate from West Ridge Academy is a mind-boggling lie to tell. Over the last three years, I have witnessed Paul Watson and Kenneth Allen, along with other West Ridge staff, tell outrageous lies, conceal and manufacture evidence for lawsuits (In December of 2012 Watson refused to answer questions under oath and instead would only submit a written statement through Ogletree & Deakins), but to accuse someone of publishing “tacitly inaccurate information” for pointing out the obvious, while failing to at least use a different bio picture on the Proficio and West Ridge Academy websites, is more than a little insulting.