by email@example.com (Victoria Strauss)
Today, Oklahoma Attorney General Mike Hunter filed eight felony charges and one misdemeanor charge against Ryan and Richard Tate, respectively CEO and founder of vanity publisher Tate Publishing & Enterprises, for alleged fraudulent business practices.
According to local news station KFOR,
The charges include four felony counts of embezzlement, one felony count of attempted extortion by threat, two felony counts of extortion by threat, one felony count of racketeering and one misdemeanor count of embezzlement.
Since the businesses ceased operations in January, the Attorney General’s Consumer Protection Unit has received 718 complaints from authors or musicians who contracted with the companies.
Complaints from customers range from failure to deliver products and services that had been previously paid for; failure to pay royalty earnings, per contractual agreement; and refusal to return files unless the customer agreed to pay a $50 processing fee.
“The means by which Ryan and Richard Tate conducted business to defraud individuals from across the country is unconscionable and a blatant disregard for those who entrusted them to produce their work,” Attorney General Mike Hunter said. “I appreciate the dedication and hard work by the agents and the attorneys in the Consumer Protection Unit, who put this case together.”
Among other findings, investigators discovered that money received from authors was routed, via Tate’s business accounts, directly to the personal accounts of Ryan and Richard Tate.
The Tates have been apprehended, with bond set at $100,000 each, and ordered to surrender their passports.
This is good news. Tate is one of the most unscrupulous vanity publishers Writer Beware has ever tracked, and its callous disregard for authors, staff, and creditors was on full display long before it closed its doors last January, amid mountains of debt, hundreds of author complaints, and multiple seven-figure lawsuits. Just days before the Tates’ apprehension, Tate Publishing had unexpectedly risen from the dead, claiming to be ready to “once again lead the publishing industry.”
For a detailed account of Tate’s deceptions, failures, sudden demise, and unexpected resurrection, see my previous blog post.
In a press conference on May 4, Attorney General Hunter promised that his office would seek reparations for Tate authors (though with the multi-million dollar judgments against Tate probably taking priority, I think it’s unlikely that much, if anything, will turn out to be available). He also said that Tate Publishing’s apparent re-boot, as well as the possibility that the Tates were working on starting up a new venture (possibly another publisher called Lux Creative, about which there have been rumors for some time) were factors in the timing of the arrests. Overall, it’s clear that the AG is taking this very seriously.
Ryan Tate, buttonholed by reporters on his way to his arraignment, unsurprisingly declared his innocence.
“We’re looking for our day in court and fighting them and we’ll make sure the truth wins out,” he said.
When asked about the countless victims, he said, “That’s not true, we went out of business for about three months but we have about a thousand authors total so most of them are very, very happy.”
Worth noting: in a January interview, Richard Tate was claiming 39,000 authors. I’m guessing that was a teeny bit inflated, but I’d also bet dollars to donuts that Ryan is lowballing. Even if he isn’t…we know that 718 Tate authors have complained to the Attorney General since the beginning of this year. So if Tate does have only 1,000 authors, clearly most of them are nowhere close to happy.
The Tates are out on bail at present, and a preliminary hearing is set for September 6. They apparently now have an attorney (two previous attorneys quit for lack of payment).
What can Tate authors do now? You’ve already done a lot; your complaints to the Attorney General were instrumental in leading to Ryan’s and Richard’s arrests. The AG has heard from authors not just in the USA, but from all over the world.
But there’s still more to be done. The AG is still looking for Tate victims. If you haven’t yet filed a complaint, consider doing so now–more complainants will give the AG’s office more to work with in building its case against the Tates, and you’ll also get your name on the list for restitution, if there is any.
And if you hear any news, please email me or post it here.
UPDATE 8/31/17: The preliminary hearing for Ryan and Richard Tate has been pushed back to November 27. Officials need additional time to investigate author and musician complaints, which right now stand at 1,674.
Lightning Source has reportedly stopped pursuing collection of the nearly $2 million Tate owes it, but Xerox is continuing its efforts to recover a similar amount.
UPDATE 11/27/17: The preliminary hearing has been pushed back again, to allow time for “investigation, discovery and negotiations.” The new date is February 21, 2018.