The company, iYogi, made a splash when it looked to the US to create up to 300 jobs in partnership with a call center operator in Maine. The July announcement was big enough news that Gov Paul LePage attended the event in Lewiston.
But it didn't take long for the deal to unravel. Argo Marketing terminated the contract with iYogi in October and filed a lawsuit for nonpayment this month. Only 30 people were hired in Lewiston.
Yesterday, a lawsuit in Washington state accused iYogi of scamming customers into buying software and services they didn't need. The attorney general said hundreds if not thousands of people had fallen for the scams in that state.
Vishal Dhar, iYogi's president and co-founder, defended his company today, saying accusations that iYogi scammed consumers were "false and baseless."
He described the company's Maine venture as important for delivering "baseline metrics" and said the company aims to relaunch US operations in the new year. "We chose Maine for its talent, and it still remains our first choice," he said in a statement.
The lawsuit in Washington alleged deceptive business practices under the state Consumer Protection Act and Computer Spyware Statute.
Washington Attorney General Bob Ferguson said iYogi representatives routinely took remote control of the computers of people who sought help, causing ominous warnings to flash on the screen and then encouraging them to pay for additional services.
The call center workers in Lewiston, Maine, weren't involved in any of the questionable activities that were alleged in Washington state, Levesque said.
Saying he was "deceived," Levesque accused iYogi of paying only about half of what it was owed. A lawsuit in New York aims to collect the remainder, about USD 72,000.
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