Minnesota Revokes Collection Agency's License

The Minnesota Department of Commerce revoked the collection agency license of Go More Financial, Inc today, charging the owner of the company with commingling funds, financial mismanagement, violating an earlier consent order and lying to government agencies. Today’s action comes after unprecedented cooperation with other state regulators in Wisconsin, Colorado, Maine and Connecticut. Those states are also taking action against Go More this week.

Go More Financial is a collection agency owned and operated by Lee Goemer located at 605 Highway 55 E, Ste C in Buffalo, MN. The company employs approximately 50 people.

Department officials found through a 2006 audit that Goemer frequently and improperly transferred trust account funds among Go More Financial’s four trust accounts and commingled trust account funds in the company’s general account in an attempt to remain current with creditors and employees.

On May 1, 2006, the Internal Revenue Service recorded a $482,808 tax lien against Go More Financial for failure to remit payroll taxes and the company also owes the Minnesota Department of Revenue $30,582 in overdue withholding taxes and penalties. The company did not disclose these liabilities to regulators in Wisconsin, Wyoming, Maine, Arizona and several other states as required by their state laws governing collection agencies.

In an effort to allow the company to correct its business practices, the Department and Goemer agreed to a consent order on June 19, 2006 that removed Goemer from all financial and accounting responsibilities and required him to hire a financial officer to control the company’s financial operations. But on August 16, 2006 Goemer violated the consent order by directing an employee to withhold an $8972.88 payment for state payroll taxes due for the August 15 payroll and paid himself instead.

The Buffalo Police Department and Department of Commerce investigators executed a search warrant earlier today and recovered financial records and computers from the company.

“The revocation of Go More Financial’s collection license is a great example of several states working together and sharing information to protect the integrity of this industry,” said Minnesota Commerce Commissioner Glenn Wilson. “We gave Mr. Goemer every opportunity to correct the problems with his business and protect his employees, but conditions at the company continued to worsen, leaving us no choice but to revoke his license.”

Department officials provided information to employees Wednesday morning explaining the charges against Goemer and answering questions about their status. A representative of the Rapid Response Team from the Department of Employment and Economic Development (DEED) was also on hand to present materials on Minnesota’s displaced worker program.

“I realize what a shock this is to the employees and the community and we will do what we can to help the affected employees get through this difficult situation,” added Wilson.

Go More Financial has 30 days to apply for a hearing to contest the Order for Revocation before the Commissioner of Commerce.