United Against Kronos Blog Site

As the year end approaches we have the opportunity to look back and reflect upon things that have affected our lives in the year 2008. 

One thing that comes of to the top of my mind is Kronos Hotels LLC out of Atlanta Ga, and its principle owners Charles Morais, Sunil Mir, Rajesh Mir, and Moses Daniels. And with all honesty I can say this does not come to the top of my mind out of any malice or dislike for these folks.  They rank on the top of my list because as I sit and reflect I see how big of a part they have been on so many lifes including my own.  How dispite no national media attention I believe they have garnered more negative media attention then any other company in the united states.  If you know of another please by all means share your thoughts and tell us about them.  I find it hard to believe another company out there has garnered more negative media as these folks and are still in business.

So today we will recap the Kronos Hotels Situation from the start of at least my experiences with them and bring us up to date till now.  Some of this goes back to 2007, which unfortunately it has to so we can bring it up to where we are now in the Year 2008 and how so many have been affected.

I was working for Lodgian at the Holiday Inn Lancaster Visitors Center East 521 Greenfield Rd Lancaster Pa in early 2007 when we were informed our property as well as several others were being put on the market for sale as part of corporate downsizing and restruction Lodgian was doing.  A few months go by and we are informed that a buyer has been found and they are purchasing 16 of the properties Lodgian has put up for sale.  We were told who the buyer was and did like anyone in todays age of technology does, immediately got on the internet and researched this company.  We found a website, saw a coporate structure and immediately became excited.  They said they right things looked like they were organized, they even had an IT department (I will be mentioning this again later). 

As the time of the actual sale date approached we were contacted by the then Regional Manager for Kronos Hotels and Resorts Vinni Gupta, who showed up and spent much time with us and talked to us.  Greg, Tina, Judy, and Myself worked very hard to prepare for this sale to make things go as smooth as possible.  We had a game plan and all had our parts.  Sometimes working over 24 hrs and then only getting an hr or two sleep in between.  We were determined to show this new company they had a winning staff working at our property.   Midnight came and we made the switch over.  Tina running around being a cheerleader (I think she was drunk from lack of sleep) saying GIMMIE A K..GIMMIE A R…and so on.  Then around 4am we get a call saying put everything back in place the sale did not go through.  This was the first clue that something was not right.  We went through this for several more weeks.  Several times.  Finally it happened.  By this point we were all very apprehensive and not sure what to expect with the sale of the properties being on and off so many times we knew something was not quite right but did not know exactly what it was. 

Vinni Gupta was at our property contstantly badmouthing the company, how they owe him so much money and when they did give him a check it bounced.  Ok so now what are we to think, our Regional Manager was sitting there telling us how the owners of our new company are “bastards” (I think that was his favorite word), and they rip people off, not to even mention how he said the company did not  “micromanage”  (everyone should get a laugh out of this) like lodgian did.  While this is all going on we had to set up Credit card machines, and prepare to operate as a property under the Kronos Hotels and Resorts banner.  This is where the IT department would normally come in.  Unfortunately that never happened.  I seemed to turn into the IT department.  I was reciveing phone calls from several other regional managers and properties asking how to set up email, I had to talk other people through (there was talk of sending me to the other properties that could not get it done right) setting up the credit card machines, etc.  It became very apparent to us that everything we had read and thought we had leaned about Kronos Hotels and Resorts was a smoke screen.  The secretaries at the home office were telling Tina how they had to buy their own office supplies because Kronos was to cheap to buy them for them.  Tina, Greg and Judy spent alot of time trying to set up new vendor accounts and get credit.  It was not as easy as it sounds.  They would get responses back saying we could not get credit because one of the owners had a shady past (which I think we are all starting to see now).  They were told to set up bank accounts, then a day or so later sent emails chastising everyone for doing it if they did.  We had no clue what to do.  If we did what we were told to do they would just send an email out a few days later saying dont do it and raise hell with anyone that did. 

A few days after the purchase while we were still trying to get our wheels under us Rajesh Mir came for a property visit.  Let me say on the record he was not a very personable lil guy.  He walked around our property which was obviously in need of improvements and said he did not see anything wrong with it.  As I was dealing with other things Tina did the property walk with him.  He walked up to our desk clerk who was on duty at the time Josiah and asked him what he thinks the problems there are.  Josiah answered with what he hears from the guests “the product”.  Raj decided to blow off that response by saying thats something we put in the staffs heads.  That the guests (lets just ignore thats what we heard every day from the guests) do not feel that the product is bad, that we do and we put that in our staffs heads.  Everyone was very greatful I was not part of that walkaround and conversation as I took great pride in what I did and my work on GSR scores.  He came, he saw, he promised renovations that never came, he annoyed, he left.

Now with so much going on and so little time since the property had been officially sold  We were all done.  All of us managers had had enough.  Raj was the straw that broke the camels back. Tina was the first to give her notice without having a backup job.  Vinni kept telling her to just “stay and collect a paycheck from these bastards”.  Tina is a good person professionally and personally.  Morally Tina could not stay and work for a company she did not respect, I ended up doing the same thing and turning in my notice and was to continue working with Lodgian in MD.  Vinni tried very hard to get me to stay as well and even Tina tried to explain to him that Raj did me in by his comments.  That I had pride in what I do.  I usually left her do my talking for me since I tend to be a lil blunt and straight forward I figured she was a little gentler with her words.  It finally got to the point where he was using what to me was teroristic tactics to get me to stay.  He was trying to sweat me into it.  He would say lets go talk, and go sit out in his mini-van in 90 degree whether with the windows up and try to convince me to stay.  It finally got to the point I looked him in the eyes and told him I was better then that company.  I worked to hard to get to where I was in the industry to let a company like that treat me in such a way.  Then Judy found other employment and she was the next out the door.  I left and a week later had some serious health issues.  A long story short, I ended up going back a few weeks later.  At that point I was the Assistant General Manager.  As I got back alot of people were happy to see me come back.  Vinni got fired and we had a new Regional Manager.  Greg the controller left shortly after my arrival back.  Now it was just me as the Acting General Manager hoping for some reinforcements.  Let me also say I truly feel like I am a better person for knowing Tina, Judy and Greg, and try to stay in contact with them all still to this day as much as possible.  They were not just co-workers or my bosses, they were family and they still are.

During all of the above the 1st couple pay periods come and gone and bounced payroll checks in each one of them.  To us its not right but we also have to give the benefit of the doubt and say its growing pains.  Kronos handling of it is what made it so wrong, oh they need a statement from the bank and they need this proof and that proof.  They have their own records. They knew,  they were just buying time.

Around August we started getting calls from the Vendors and Utility companies due to non-payment of our bills, threatening to cut us off etc…I remember running around Lancaster trying to find a place to hand deliver a several thousand dollar check to keep our gas on.  And yes paychecks were still bouncing.  I cant remember 1 payroll that a payroll check did not bounce.  We would call Satish for bills and Benjamin for Payroll and always get the run around.  Our favorite thing to hear was the check was cut today, and two weeks later the company call back and say they have not recieved it only to find out that yes it was cut, they just chose not to send it in.  We were literally just hanging on the best we could and noone at the home office seemed to care.  We were even told once that “you worry to much about bills, they need us more then we need them, they wont cut us off”.  This company was systematically ruining every vendor relationship that our property had worked so hard to establish.  Noone wanted to do business with us this early on.  Even the owners of the land the property say on called about non-payment.  When we inquired about that we were told “its a common tactic, we will with-hold payment and they will get tired of dealing with it and just sell us the land”.  We were in a no win situation no matter how we did things. 

On September 11th, 2007 my father was violently killed in the state of Florida when a drunk driver drove through his bedroom and killed him on impact.  I was informed by my cousin while I was at work.  I finished up what I had to do and went to see my family.  I went back in to work the next day because there was no excuse good enough for Kronos Hotels to not have a report in on time or be late with anything (except their bills).  I took the weekend off to fly to Florida and collect some of his belongings.  I was dealing with the legal system down in Florida over this, trying to plan his funeral (including having his remains brought back to PA to be buried with his family) and everything else.  About that time we were hit with a suprise safety inspection.  What they got us on was a fire panel behind the front desk that gave faulty readings.  This was no secret of this problem as it was part of the P.I.P. (Property Improvement Plant)that was given to Charles Morais and crew before they even purchased the property so they knew what needed done.  Anyway, we failed.  I thought I did but I guess I did not send an email letting them know about this but they were sent notice of it, this I do know.  So when the reinspection came around and it was not fixed they were going to get a fine.  They claimed they had no clue about it and reamed me a new one for not letting anyone know.  Sorry I had to deal with the death of my father and I didnt make a federal issue out of a problem that was so widely known about as one of our biggest and most expensive problems since even before they purchased the property.  We realized around that time that that was their way of life.  Act like they didnt know and blame someone else. 

October, November and December go by and not a thing changed, only got worse.  More Unitilty threats, more vender unpaid bills (were were put on cash only by this point) and still no support from corporate office just reamings blaming us for everything.  I did however manage to keep everything from getting cut off.  As I reached out to other properties I realized they were having same problems.  My staff was loyal and noone quit on me.  I can never be thankful enough to them for that.  Without them my accomplishments while I was there would mean nothing and would not have been possible.  We doing the best we could with nothing.  We would get guys in to start renovating the parking lot only to make it worse then quit because they were not being paid.  We would get constant emails asking us for measurements and such for renovations, then the following week get the same email again.  There was no organization.  By now the corporate infrastructure of Kronos Hotels and Resorts started crumbling.  Several big names in the company quit abruptly without explanation.  It was also towards the end of Novemeber they finally hired us a General Manager.  It was at that time I knew my time was limited.  I did everything I could to prepare my staff and let them know I would be let go soon.  I even had several conversations with my new GM letting him know the same thing.  December 2nd came along and one of our Regional Managers came in and terminated me.  He was a good guy and I had a good relationship with him.  He knew they were using me as a scapegoat.  He knew it was not right.  I was not concerned as I had been expecting it.  Also, after being in the Hospitality business as long as I had been I saw it as a business move and honestly saw nothing wrong with it, its the way the business goes.  I told him I had schedules to do, forecasts to do and a few other things, so I would finish my day of work and leave.  He trusted me and was fine with that.  As my day went on I slowly packed my office so noone would notice, and at the end of the day I walked out like any other normal day with noone knowing anything different.  I did not want to make it harder on the new GM.  As people found out and got upset they would call me saying they were going to quit as they had threatened to do when I told them I would be let go soon I told them the same thing again….keep your job, you need a job, give everything a chance it will get better, its how the business goes.  I was very positive and always spoke to people as such.  I kept in regular contact with my former staff because we had been through alot together.  They would call just to vent or ask advice or whatever.  I was always willing to make time for them. 

2008 comes along and I am unemployed due to being used as a scapegoat.  That is fine to me because I never really took time for myself to deal with my fathers death and my wifes kids had just moved in with us so it was an opportunity for me to get to be home with them more often and get to know them better. 

My wife who still worked at the Holiday Inn would come home and tell me the horror stories of what was going on there, how they were made to wash out trash bags and hang them over the shower curtain rod to dry off and reuse them because they could not get any anywhere else.  How they would have to go to Dollar General and get shampoo and refill the shampoo bottles so they would look new.  How they were washing laundry without detergent in just plain water because they could get no supplies.  Then she came home and told me about the bedbugs.  I immediately called IHG to inform them how their property was operating. I also called the health department who showed up and shut their lower building down.  Keep in mind the bed bugs were known about but they were made to keep renting those particular rooms.  After the rooms were shut down by the health department the staff had asked the New GM (came in after the one who replaced me quit) if they should go down and clean the rooms they were told not to worry about them.  My wife was smart enough to seek other employment seeing how things were rapidly declining even further then I thought possible.  She fond another job and I insisted out of professional courtesy she give 2 weeks notice.  She walked in the next morning to do so and was immediately fired and escorted off the property.  At that point honestly I was livid.  She was being professional about it and they just saw it as an opportunity.  It was also at that time that because with me not there and her not there to ask me stuff alot of the knowlege walked out with us.  The New Gm would have someone call us and ask us questions or information and I simply informed them if they wanted to call and say hey then great but do not ever call my house and ask information as a representative of that company again.  I even emailed Raj and Charles Morais and let them know that they had their opportunity to ask us for that information and they chose not to take it so please have their properties stop calling us for information. 

Still my staff and I stayed in contact and my wifes staff stayed in contact with her and we would always try to give them positive information.  Then at the end of September I got a call about food being stored in a room because the walk-in frig was broke down, and how they were selling alcohol without a license.  It was then that I found out they were trying to throw one of the young ladies whom I went to school with, whom I hired at the front desk, whom I agreed to let transfer to another property only if they would consider her for the front office manager position because she had so much potential, under the bus for the illegal alcohol sales.  I was also informeed at this time that checks were bouncing literally every time, utilities were being cut off left and right and it was getting very bad out there.  I immediately took action.  I did some quick research and started finding all kinds of other articles out there on Kronos Hotels LLC, Destination Hospitality, Charles Morais or whatever other names they may go under.  I immediately emailed and called every television news station about the situation.  I also emailed the Local Newspaper.  The situation took a life of its own.  I did countless TV interviews, and newspaper interviews. And the story became huge pblic knowlege.  Then Chip Smeldey came into the picture.  He is a reporter for the Lancaster Sunday News.  He did not just look at what was on the surface and blatant.  He did his own research, and it started in Cedar Rapids IA and Justin Foss, and discovered exact same things out there, that led him to other states and other cities.  When these other states and cities discovered it was everywhere they started doing their own articles (Cedar Rapids IA had been on it since the beginning of the year at least).  And it grew into what to me was almost the unthinkable.  About that time at the begininng of October I created the website http://kronoshotelsllc.com to basically compile a list of information we could find on this Kronos Hotels or its owners and put it in one centralized place.  It did not take long for me to start getting emails from employees, former employees, and venders from across the country that have been done wrong by these guys.  I added a forum and chat room.  The site went from a little information site to a support site where people were able to share stories, compare notes and help eachother.  It went from a web site to a community almost over night.  It seriously seemed like overnight the flood gates of information just cracked open.  I started doing public records searches, and uncovering so much information that it just left me sitting here half the time with my mouth wide open wondering how can a company keep doing this.  It was also Chip Smedleys article that gave me some insight as to what was going on.  A man from CW Capital Assets company (one of the lending companies) reached out to Chip and asked to be put in contact with me.   I contacted him and we spoke at great length.  He told help was on the way, he told me thing were being worked on as we speak.  I gave him information and kept him in the information loop after that.  I figured anything that can help..I was willing to do.

Then all of a sudden someone emailed me a link, and it was Dothan Alabama employees picketing because they had had enough of the bounced paychecks and constant excuses.  The picture from that article which still stands today on the main page of our site had become a symbol of what this whole situation had come to.  Then I started getting emails from reporters in the other states wanting to talk to me asking me if I would be willing to talk.  My answer to every one of them was the same..”if someone wants to listen I want to talk”  I then made my own media contacts reaching out to several people on my own.  Before you know it, there was a huge network of information being shared.  I worked closely with several of the media outlets trying to help them get in contact with people from the other cities that wanted to talk.  I provided them with story leads and other information that I came across that could help get the story out.  My main goal was to help those being affected.  I knew the site was growing, I knew what the site stood for. 

Or at least I thought I knew.  It was not until I came across a news broadcast out of Louisville KY from Wave 3 on the staff at the Kronos Owned property down there that walked into the local magistrates office to file criminal charges against The owners of Kronos for blatantly filing these bad checks did I realize what the site truely had become.  As I watched the video, as I sat here with a huge smile on my face thinking “damn I am proud of those people”  I hear a familiar song come across the speakers on my TV.  And then…there is our website.  They actually showed the site on the news broadcast.  I was astounded.  I could not believe it. I immediately reached out to those people down there in Louisville and told them how proud I was.  It was when they informed me it was our site, it was the information it provided and the support it gave them, that gave them the courage to do what they did.  It was then that I knew this was something that had to continue.  It was then that I knew that even though I thought it had already gone beyond what I could have ever imagined, it was now at a point of no return.  It was now to a point that what I had originally started would go on with or without me.  The word was out and people were done taking it.

In the midst of all this around the middle of October my wife who worked at a Holiday Inn close by was approached by a higher up at her work who had been following this story in the media and said “you havent told your husband anything about us have you?”.  I now knew I had a reputation and what I suspected at the beginning was happening.  I just throw an 18 year hospitality career down the tubes to help others.  I didnt mind.  It was the right thing to do.  Morally I had to do something.  It was also about this time that she started noticing little things like access to IHG and a few other things at her work that were being taken from her.  She was suffering because of what I started.  Her work which up until now had no complaints about her now had issues with everything she did.  It was never the same for her after that.  I encouraged her to keep plugging away explaining that unfortunately every company does things they should not.  Thats why they were nervous.  They felt like we on the site did what we did just to do it.  In their defense I explained to my wife, they probably thought that everything was being blown out of proportion.  Its hard to believe in riting what was really going on or how bad things were until you were in the situation and experienced it first hand.  Telling someone about it does not do the story justice.  This situation I feel is what ultimately led to my wife losing her job.

The site continued on and continued growing.  It was being hosted for free by a vendor that had not been paid by Kronos.  The vendor donated the space because they wanted to do what they could do help.  Then around the End of october the Hosting provider got a letter from Kronos Hotels Attorney Matthew Wilkins based in GA.  They threatened legal action and claimed copyright and trademark infringement.  I went over the site with a fine tooth comb and found nothing of the sorts.  I was ready to fight back.  Unfortunately the hosting Provider did not feel it was worth it to hang in there with me because it could have led to huge Attorneys fees for them and they shut me down a few days later.  I totally understood and did not blame them.  I was immediately contacted by someone else who offered me free web site hosting but I had already put my backup plan which I put together in the days proceding getting shut down.  I transferred everything to another Hosting provider and was back up a few hours later. 

Shortly thereafter I recieved an email from Kronos Hotels Attorney Matthew Wilkins asking me how he can get in contact with me.  I asked him what this was pertaining to.  He never did answer me.  His response was, “You are intimately aware as to the nature of my clients’ claims against you.  Presently, they are considering pursing both civil and criminal actions.  If you would like to mitigate your liability, my clients may waive certain claims if the website is immediately removed.  However, if the site is not taken down, I have been instructed to pursue all legal remedies against you. I recommend you retain legal counsel, and provide your attorney(s) with my contact information.”  So as of this point they still have not told ME what they wanted from me.   I will have to give him one thing.  I do know what they wanted me to do and I was not a willing participant.  I responding in kind and told him to procede with his clients wishes because the site would not be taken down.  Of course being the sarcastic individual I am I did email him back and explain that due to my concerns of his client paying him I would be more then happy to agree to all communications being made through email to save him money on postage and such.  Of course that got no response but it gave me a good laugh.  We as a new community had went to far and I was not about to stop now.  To many people were involved and used our site.  To many people believed in what we were doing.  I was determined they were not just going to intimidate me like they were accustomed to doing with others.  I was determined to show them they knew longer held people in fear like they once did.  I was dertermined to show them they no longer had control.  The people took back control, and the people were not ready to roll over and play dead again…not just yet.

The site continued on, between my research and research from others all over the place we kept compiling information.  We kept building our case.  The articles kept coming, the informations kept flowing.  Kronos Hotels could no longer hide under an LLC corporation and keep playing their game.  We received countless emails from invenstors asking for a list of Kronos owned properties, and other information.  We received emails from law enforcement officials and government agencies asking for information.  We recieved countless emails from vendors asking for information or offering what help they could.  We were no longer being looked at as disgruntled employees or ex-employees.  We were being looked at as victims.  Victims as one person on the site put it….financial terorism.  We were getting support.  People were rallying behind us.  We had also saw in the weeks preceding alot of the properties management being taken over by court ordered recievers.  The Mortgage companies were starting foreclosures.  But we were still concerned because of the emergence of a company called Hyperion.  Which after the initial onslaught of takeovers we never heard anymore about.  To us it was just another shell game by Kronos to keep their properties.  We were not buying it and kept pushing forward with our fight.

Around mid November during a public records search I uncovered documents filed against myself, john doe#1, john doe#2, and xyz corp.  I waited impatiently to be severed my papers and never was.  So I went and picked them up myself (I am a very impatient person).  Immediately I posted the complaint online for others to view and started reaching out for legal help.  We vowed right then and there that we would fight.  We would not back down.  We were excersing our 1st Amendment Rights.  Those rights entitle us to Freedom of Speech, and the Right to Peacefully Assemble.  To us thats exactly what we were doing.  Among such accusation of posting false information, they threw in a few more charges that were untrue to make it sound better.  Their goal is to intimidate us with Attorneys fees and Law Suits in the hopes we know we dont have the money to fight this and back down based on that alone.  Our minds were made up immediately.  If it costs me everything I own, if I can not find an Attorney to represent our cause I would fight it on my own.  This was a fight worth fighting.  In my own personal life I have never been much of a selfless person…more of a selfsih person.  For once in my life I was fighting for something that I had nothing to gain nor lose in (apparently now I have something to lose).  In todays world there is to much of an “its all about me” attitude and “noone looks out for you but you” attitude.  This was not about me nor was it ever about me.  This was about people I cared for, people I met and learned to care for.  My family, people in the hospitality industry. 

After much searching and many phone calls I came across an Attorney from the Ga 1st Amendment foundation website Clyde Thomas who was willing to take our case at little to no costs.  People say that Attorneys are only after money.  This is not the case.  I had Attorneys in other states offering me help with what they could, and advice.  Unfortunately unless they were certified in the state of GA there was not much they could do.  So again, not all Attorneys are just after money.  Attorneys are just like you and I, they are in a profession and they are there to make money.  Think about it like this.  Did anyone want to continue working for Kronos for Free?  Same situation.  We chose professions and we go to work everyday to make a living.  Mr. Thomas was more then willing to tackle this case feeling we had done a good thing here and feeling that our rights were being violated.  Our answer to the complaint was filed and the ball was put back in the court of Kronos Hotels and their Attorneys.  I will be forever greatful for the help and guidance of the Attorneys (they know who they are) who contacted me and offered to help in whatever ways they could, and to Mr. Thomas for being willing to take on this challenge. 

Now here we are on the last day of 2008 and the fight continues.  And as I reflect back on the whole situation I will never regret it.  It has made me a better person.  It has been an educational experience and a humbling experience.  I have met some great people whom I would have otherwise never met.  So anyway this all plays out it has been a good year for me.  All the bad that has happened has guided me to the good, has guided me to a better self.  So how has Kronos affected me through 2008…well, I committed career suicide and became known as a whistle blower, I am being sued for alot of money, I cost my wife her job, I met some GREAT people, and I feel like I helped alot of people.  But, it has been a great year!  So I would like to thank Kronos for the year I had.  Because had it not been for their incompentance I would not be where I am at with my own personal self today.  I would not have had the chance learn as much as I have.  I would not have had the chance to make so many great new friends, and last but not least I would have not had the chance to realize how good it feels to know what I started played a small part in helping so many others.  Our Website being viewed in approximately 40 different countries right now tells me how good of a year it has been.

There is so much that I did not even touch on through all this and one day I will.  For now though I want to thank everyone involved for everything.  To thank you all for being there.  To thank you all for allowing me to get to know you.  Lets move on to 2009 with positive outlooks and know the worst is behind us all.

Tom Showalter
Lancaster, PA