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December 9, 2016

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

This is a developing situation; see the updates at the bottom of this post.

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 musician suing over copyright laws (a customer of Tate Music Group, which also runs on a vanity model); a claim by memorabilia manufacturer Jostens, which alleges that Tate owes it more than $13,000; and another by the property company that leases Tate its print shop (vacant now that Xerox has re-possessed its equipment), which alleges 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 cut-and-paste, 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.

16 comments :

Diane Mae Robinson Multi-Award-Winning Author said...

Hi Victoria. I wanted to inform you that not every author that is published with Tate has to pay a fee, of any sort. I have two traditional contracts with Tate. I have not paid for editing, illustrations, production, video trailer, website, a publicist, or any thing else you can think of that may require a fee. Therefore, I would strongly disagree with you that Tate is a vanity publisher only. They may have a vanity publishing arm to the company, I don't know what other people's contracts say. You are giving a wrong impression here.

In regards to the person who had their book published twice with mistakes, I can't see how that could happen. My books went through three rounds of editing, which I had to approve at the last round, and then a final layout, which, again, I had to approve.

There are a lot of great authors signed with Tate and great books being produced by Tate. For example, in the 2015 Literary Classics Book Awards, there were a number of Tate authors who won Gold and Silver, myself included:
http://www.literaryclassics.org/2015_Book_Awards_Winners.

I have had excellent service with Tate who has always gone out of their way to please me as one of their authors.

Many author's livelihood depends on their books being available through Tate and affiliate links. Maybe, before you bash them as the worst publisher on earth, you should get all your facts straight.

Thank you.

Diane Mae Robinson
Multi-award winning Tate author

Bridget Marzo said...

Just to avoid confusion, as it can be confusing to people in the US, that there is also an prestigious UK publisher of art books and quality children's books called Tate Publishing UK which comes out of the great Tate Art Galleries in the UK. Tate UK has no connection whatsoever with this US publisher. Their books are distributed by Abrams in the US. http://shop.tate.org.uk/shop/books+media/icat/books

Anonymous said...

Diane,

You must be one of the lucky few. My experience with Tate has been horrible. 100% horrible. I had to pay a fee, and after 12 month I received nothing. The only thing I get is excuses, new contacts each month, and a ton of lies. My refund check has literally been "lost in the mail" 5 times!!! These people are con artists, plain and simple.

Victoria Strauss said...

Bridge Marzo, thanks for pointing that out.

Anonymous said...

Diane, no one is disputing that they have published books and good authors. I do think things weren't like this a few years ago.

I worked with them in 2009 and paid the enormous fee, didn't get the service expected on the Marketing end, but did get a product to sell.
I have gone back in 2016(stupid me) and I have had a terrible experience and yes I paid a fee this time it was discounted. I have not heard from them in 30 days and they refuse to respond to any of my weekly communications. I'm sure my money is lost now. I will seek out another publisher to help me.

You are clearly one of the lucky ones....

Victoria Strauss said...

From the reports/complaints I've received, as well as the many, many author complaints online, it does appear that up until a couple of years ago Tate did provide a reasonably efficient service that fulfilled at least the basics of what it promised (though those promises were overblown, especially in regard to marketing). There was nothing like the chaos there apparently is now.

However, even when Tate was operating optimally, it was hugely overpriced for the service it offered--not to mention the exorbitantly-priced "extras" writers were encouraged to add to the basic package--and completely deceptive in its presentation of itself as a "mainline" publisher. Tate is and always has been a vanity publisher--despite the small number of reports of no-fee contracts. And it has always worked extremely hard to obscure this fact.

Doreen McGettigan said...

My first book was published through Tate and I couldn't be happier or prouder of that book. My experience with Tate was amazing.
Before signing with them for my second book I heard about the dismantling of and the firing of the editing department. My editor was one of those fired.
I was nervous about signing with them for my second book but the aquisition team assured me things were better then ever.
They weren't. My book went through 3 rounds of publishing that never happened. I never worked with an actual editor. I worked with a guy in the Philippines that was hired off the street.
My first book is constantly out of stock and when I recently ordered books for a speaking engagement I was stunned to see they were printed by Lightening Source (Amazon.)
I did not pay to publish with Tate either and am terrified now because it's been almost a year and I've received no royalties.
Emails and phone calls go unanswered.
I feel bad for Dr. Tate. When I met him he seemed like such a nice man. This company could have been something he was proud of but his son ruined it.
I hope he does the right thing and pulls it together or sells the company. So many good hard working authors are being hurt.

Anonymous said...

Doreen, no reason to feel sorry for Dr. Tate. He knows exactly what is going on and the ring leader. He is the biggest liar up there. The person I feel sorry for is Rita, she has absolutely NO idea what is going on and walks around believing everything is fine.

Tate outsourced to LSI (Lightening Source) back in June, after the Xerox lawsuit was filed. They are a cheaper & quicker way to print, and the quality is no where near as good. You get what you pay for.

John Thornton said...
This comment has been removed by the author.
John Thornton said...

There is absolutely no reason for Tate to be cheating so many people. Authors can go to create space, and Kindle Direct Publishing and receive better service, better quality, and better distribution for FREE. I have read numerous books supposedly edited and proofread by Tate, and they are filled with errors and just a mess. There might be a few good books that slipped through Tate publishing, but that was due to the AUTHOR's work, and NOT because of Tate. Tate's authors need to beware of what their book's rights are going to be going forward. Tate just consists of cheater and liars who are masquerading as a "Christian publisher." They are wolves in sheep's clothing, and sadly, a myriad of authors have been conned and cheated.

Anonymous said...

Hi! I'm an employee of Tate Publishing here in the Philippines. Currently, there's been absolutely no word about what's happening. Everyone who's still technically employed her in the PI don't have any workload, some have been sent to "work from home (whatever that means)," our government-mandated Christmas bonuses are a no-show, and our e-mail provider has been shut down, giving us no access to whatever updates there might be. Looks like it's the end for Tate Publishing. I wonder how the Tates can sleep at night.

Anonymous said...

http://www.thelostogle.com/2017/01/12/tate-publishing-closes-philippines-office-screws-over-employees-there-too/

Pablo Esteban said...

John Thornton, I worked with the editing team, and I have to be a bit defensive on this because I personally worked on manuscripts, which I edited to adhere to The Chicago Manual of Style's rules. However, and this is a big however, the authors are (a) too stubborn to read over the editors' notes (and most of them cannot write if their lives depended on it) because their writing is supposedly "a God-given gift" and (b) when they do accept the editors' changes, they revert to their unedited manuscripts in the final stages before printing; and when they do not get the changes they want, which their changes are 150 percent of the time wrong, they threaten the staff and management with lawsuits and cancellations of contracts.

Anonymous said...

Tate closed down today. I repeat: Tate closed down today.

Anonymous said...

I posted the above comment. I'm not sure how they're going to go about telling authors that they're permanently closed, because they were still signing them on and taking their money as of last week. I'll keep you updated if they issue some sort of public message.

Victoria Strauss said...

Anonymous, feel free to contact me directly--I'll protect your identity. beware [at] sfwa.org.

 
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