Trouble at Tate: Could it be End of Days for America's Most Prolific Vanity Publisher?

Posted by Victoria Strauss for Writer Beware

Since putting this post online, I've received dozens of questions about whether there's a class action lawsuit against Tate. To my knowledge, the answer currently is no. I don't think that's the best option, anyway, because given all the complaints by authors and staff of non-payment, I'm guessing that Tate has few resources to tap for reparations.

Instead, I'd strongly encourage authors to file complaints with the Oklahoma Attorney General's Office and with the FBI. Individual complaints don't usually spur action, but a volume of them may, especially if they are received over a short period of time. The Oklahoma AG has already received a lot of complaints about Tate.

File a complaint with the Consumer Protection Division of the Oklahoma Attorney General's Office

Contact the FBI field office in Oklahoma City


It's hard times lately for "America's Top Publisher," a.k.a. Tate Publishing & Enterprises, a.k.a. one of America's most prolific vanity publishers.

Tate has been on Writer Beware's Thumbs Down Publishers List since the list was created. Not just because it charges enormous fees (an initial $3,990, with the option of paying hundreds or even thousands more for extras such as video trailers, custom websites, self-ordered books, and the like), but because it presents itself as a "mainline publishing organization" and doesn't reveal its fees anywhere on its website or in its promotional videos.

In fact, Tate's website specifically promises that authors do not have to pay to publish: "Tate Publishing does not charge a fee for publishing and absorbs all the cost of production and distribution of a book." But this is classic vanity publisher doublespeak. Deeper into the submission process, when Tate finally gets around to asking authors to pull out their credit cards, they are told that the money is for a publicist.

Clearly, Tate wants authors to assume that it's as traditional as traditional can be. And they do. Writer Beware has gotten hundreds of questions and reports from authors who approached Tate in the belief that it was not a vanity publisher.

We've also heard from many Tate authors who don't feel their money was well spent--and we aren't alone. In 2015, Tate was the second most complained-about company to the Oklahoma attorney general. Many more complaints--not just about Tate Publishing, but about its vanity recording subsidiary, Tate Music Group--can be found online. They make for terrifying reading--bad editing, shoddy production, constant staff turnover, books ordered and paid for but never received, delayed pub dates, non-payment of royalties, "marketing" that mostly consists of urging writers to buy their own books...the list goes on.

The Better Business Bureau, which as of this writing has logged 134 complaints over the past three years, yanked Tate's accreditation earlier this year.

That's a lot of chickens, and they are now coming home to roost. This past May, Xerox Corporation filed a $1.7 million lawsuit (since increased to $1.89 million) against Tate, alleging defaults on service agreements and promissory note payments, and seeking re-possession of $450,000 in leased equipment. Tate has not had good luck with its attorneys in the case; the first withdrew in September, saying he was retiring, and the second is also seeking to withdraw, in part, apparently, because Tate hasn't paid him. (Maybe that's why Ryan Tate never got around to filing his promised counter-suit against Xerox.)

The Xerox lawsuit spurred layoffs from Tate's printing plant, even before Xerox began re-possessing its equipment in late July. And that's not all. Tate is facing at least four additional legal actions: a lawsuit by an author who claims that she paid over $12,000 for a book that was published full of errors (twice); a petition by a client of Tate Music Group to compel arbitration, due to various alleged breaches of contract, including copyright infringement; an action by memorabilia manufacturer Jostens, which says that Tate owes it more than $13,000; and another by the property company that leases Tate its print shop (possibly vacant now that Xerox has re-possessed its equipment), which claims that Tate owes nearly $20,000 in rent.

If that weren't enough, Tate's employment practices are being investigated by the Department of Labor. (Some employees say that they were threatened and "coached on what to say" by CEO Ryan Tate before Labor Department investigators came to interview them; this would not be the first time that Ryan Tate has threatened employees.) And per an (uneverified) comment on one of my previous posts about Tate, Tate may recently have been evicted from its offices.

Are these the straws that broke the camel's back? Has Tate reached its very own End Times? Either way, it's not looking good for "America's Top [Vanity] Publisher."

Predictably, the honchos at Tate are pretending nothing's wrong. “There are a lot of issues that probably would be a little more important for you or your news agency or any news agency to deal with," company founder Richard Tate told local news station KFOR, "other than the fact that our company is doing a great job.”

Hmmm. I think some Tate authors would disagree.

Watch this space.

UPDATE 12/22/16: I'm getting a flood of emails and comments not just from Tate authors, but from Tate staffers in the Philippines (you can see some of the comments below). Here's what I'm hearing.

- Apparently Tate's Philippine workforce once numbered close to 1,000, but massive dismissals have seriously reduced this. The consensus seems to be that around 80% of staff have lost their jobs since October.
- Unpaid or part-paid salaries and bonuses; apparently corporate headquarters in the USA hasn't been wiring enough money to cover payroll.
- Staff complaints filed with the local Labor Department, citing salary disputes and dismissals without the required 30-day notice.
- Production halts and slowdowns have put books in limbo, since there's no longer sufficient staff to work on them.
- Resignation of high-level corporate staff in the US.
- Silence on these issues from corporate headquarters.

The Philippine staffers I've heard from are convinced that Tate can't survive much longer. Several have told me that they suspect that the Tates are shifting assets to a new company called Lux Creative Concepts LLC, which was registered in February 2016 by Ryan Tate's wife, Christy Kelley-Tate.

Stay tuned.

UPDATE 1/10/17: From the comments on one of my previous posts about Tate, today--I stress that this is unconfirmed. [UPDATE:: at least one Tate author has received an email from Tate's marketing department confirming the closure.]

"Tate Publishing has officially shut down their business in the Philippines today. Their main office in Cebu has been locked up by the Department of Labor and the owner of the building due to non-payment of the rent."

UPDATE 1/11/17: And another:

"I'm an ex-employee of Tate, and we were just at the Cebu office yesterday. Today is the the last day that the office is open, mainly for HR to furnish ex-employees with certificates of employment and other documents. The Department of Labor has officially ceased all operations and is taking stock of the company's physical assets.

We have been informed that, as of this writing, there is no official directive or announcement from the Tates that the company is closing or declaring bankruptcy."

UPDATE 1/12/17: More on the Philippines debacle from an Oklahoma-based blog that has published a lot of articles about Tate's shenanigans. A former Tate staffer in Tate's now-closed Cebu offices describes partial payment of salaries, non-payment of government-mandated bonuses, and other problems dating back months.

I've received many similar emails from Cebu staffers, one of whom shared with me the Department of Labor notice resulting from a compliance visit to Tate's Cebu offices on January 9. Findings:


UPDATE 1/14/17: Some Tate authors report receiving an email signed by Tate's Director of Production, Tim Kelley, claiming that Ryan Tate hasn't paid employees and "your book will never be finished." This email was reportedly followed, within a couple of days, by another email claiming that the first email was the result of "identity theft" and its allegations aren't true.

Okay.

Meanwhile, Tate authors are receiving this, also--apparently--from Tim Kelley:


Things are fine, folks, just fine. Never mind the mass layoffs of employees. Never mind the lack of payment and non-communication. It's all just a transition.

I'd love to hear from Tate authors who sign up for the portal. Have you received any results from your "new support ticket"?

UPDATE 1/16/17: There's now a forum for Tate authors to share experiences and support: Tate Publishing Help.

UPDATE 1/18/17: The Xerox lawsuit goes to court on Friday.

"Meanwhile, it was unclear Tuesday who is representing Tate Publishing in the case. The firm's attorney when the lawsuit initially was filed was Richard L. Hasley, of Oklahoma City. But in September, an order was granted allowing Hasley to withdraw from the case, as he was retiring.

Hasley was replaced by George H. Ramey and William D. Tharp, of Ramey & Tharp in Yukon.

On Dec. 1, Ramey & Tharp submitted an application to withdraw from the case as Tate Publishing's representatives, as well, saying the Mustang publisher had failed to meet its financial obligations with the law firm."


And...uh oh. This is what you get at 12:53pm on January 18 when you click on Tate's website URL:


YET ANOTHER UPDATE, 1/18/17: I've now heard from several Tate authors and former US staffers that Tate closed down today. Two people have told me that it is considering a bankruptcy filing.

BUT...

Remember how I mentioned suspicions that Tate was shifting assets to a new company called Lux Creative Concepts, LLC, registered last February in Oklahoma by Ryan Tate's wife, Christy Kelley-Tate? Well, get a load of this.

As many Tate authors know, Tate's Marketing Director is Terry Cordingley. Here's a screenshot, taken today, of Mr. Cordingley's Blogger profile; it identifies him as Tate's Associate Director of Marketing, a position he says he's held since 2006:


And here's a screenshot, also taken today, of Mr. Cordingley's LinkedIn profile, which identifies him as the Director of Marketing for Lux Creative, a position he also says he's held since 2006:


Draw your own conclusions.

5 comments to Trouble at Tate: Could it be End of Days for America’s Most Prolific Vanity Publisher?

  • Victoria Strauss

    Hi, Patsy,

    I’ve heard from a number of sources that the Tate files are messed up and require a lot of correction and tinkering before they can be used to re-publish. So even if Tate wasn’t demanding $50 for them, getting the files isn’t that useful. Better just to use your original manuscript version.

  • Patsy A. Lowry

    I too am a Tate author. My book was approved for release after a surreal year and a half. I am seeking the opportunity to acquire my file from Tate, so I can publish elsewhere. Don’t know what the likelihood of this is.

  • T W Whistler III, Author

    You can do what several 100′s of Tate’s author’s are doing, Contact either your states AG Office and or the OK State AG Office. Many others are also filing with their or the BBB. Their own attorney requested
    to step down as their attorney and the judge allowed him to step down. I read all three page court document dated Jan.03.2017. They have now a court hearing in court this Friday Jan.20.2017. Better hurry, IBM & Xerox have already files.

  • Victoria Strauss

    Rodney,

    I can’t say that the claims in that email are true or untrue–I can only cite the many news reports, online complaints, and direct complaints and emails to Writer Beware that paint a picture of disarray and chaos at Tate. It’s not surprising that they’d want to put a good face on things…but given what I’ve heard, I am frankly skeptical of this cheery picture of the situation. Certainly the problems have been ongoing for a lot more than 9 weeks. To name just two examples, Tate’s printing equipment was re-possessed by Xerox in late July, and staff layoffs in the Philippines reportedly started in October and have resulted in an 80% reduction in a workforce that once numbered close to 1,000.

    I don’t know if Tate can pull itself back from the brink–maybe it can–but even if it does, the staffing reductions alone suggest that there will be major delays and snafus.

    Sorry–I wish I had a more optimistic assessment for you.

  • rodney thomas

    Hi Victoria,

    I saw your site and was shocked by the responses regarding Tate. I just sent them my revision for my first book and had not heard back from them. I figured due to the holidays delayed response is normal. then I received an auto reply about my revision not being in. this happened a few time. so I sent my account manager an email to ask if he was in the office. there was not ooo reply or anything, but I received the following:

    Hello Rodney,
    We received your message and have asked the production team to reach out.

    It is no secret that Tate has had some major restructuring in the last 9 weeks and we absolutely recognize the frustrations that this has caused. It has been a bit of a perfect storm with staff realignment as well as the long holiday break for people to get their questions and concerns handled in the amount of time that we prefer. This is not what we want and I assure you that we are re-positioning ourselves to be better on every level (including communication and author service) in 2017. As we allow the dust to settle and we get our house in order we do ask for your patience and we will see to it that each and every author issue, order, complaint, question is handled. We are creating tickets for all issues that have been presented to us and we will handle them this week as we allocate each out to staff to address them. Again, we understand your frustration and we are more motivated than ever before to make our authors proud to be Tate authors and serve you as we have always envisioned. God is doing some rearranging, but we are still here and He is not done with us yet!! 2017 is going to be a year or major growth and success for us and we are on your side and here to help! Thank you for your understanding and if your concerns are not addressed within the next 7-10 business days please LET ME KNOW!!!

    Thank you and God Bless!
    Kortney Disney
    Acquisitions Team

    I am not sure what to think. do you have any suggestions?

    regards!

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