How To Stop Corporate Fraud in Court Reporting by Joe Gratton

The following was written by Joe Gratton for the Stenonymous blog, mostly unedited:

There’s currently ongoing and blatant corporate fraud in the court reporting industry. Yet many industry professionals remain unaware and unconcerned about the danger posed by companies deliberately exaggerating the court reporter shortage to espouse the benefits of digital court reporting as if the two services are somehow equivalent.

The companies that have tacitly colluded under the umbrella of the non-profit Speech-to-Text Institute (STTI) are engaging in deceptive practices by spreading misinformation about the cost, quality, and validity of digital court reporting services.

With little to no oversight by courts or government agencies, these companies are getting away with it. However, there are steps stenographers, lawyers, and other affected parties can undertake to ensure justice is served and the court reporting profession is protected from further subversion.

Background to the Corporate Fraud Currently Occurring in the Court Reporting Profession

It’s worthwhile spending a few moments elucidating the circumstances that have allowed corporate fraud to occur unchecked thus far.

It’s essential to start by explaining that, yes, there are court reporter shortages within the United States – primarily due to retirement. However, these shortages are minimal and localized. Moreover, these minor shortages are increasingly offset by excellent recruitment initiatives led by National Court Reporters A to Z, Project Steno, Open Steno, and other worthy organizations.

The companies launching spurious claims that the shortage can’t possibly be filled with more stenographers (and, therefore, should be replaced with the vastly inferior practice of digital court reporting) base their assumptions on the deeply-flawed Ducker Report of 2013-14, which stated that 70% of court reporters would retire over the next 20 years (2013-2033).

Not only is the report now rapidly approaching ten years since publication (significantly undermining its relevance), but those predictions were based on, wait for it, interviews with 120 industry professionals from in and around the industry. Even with some “proprietary data analysis” thrown in from Ducker, how anyone can profess that there’s currently a potentially industry-ending court reporter shortage based on such flimsy evidence is anyone’s guess.

Worse, when reviewing objective industry data, there are around 27,000 court reporters still active within the profession. How many were there in 2013, the year of the Ducker Report? 21,000. The predicted retirement cliff must be getting taller every day since stenographer numbers are still trending upward ten years later.

And yet, companies such as Veritext, US Legal, and others have happily used these terribly inaccurate extrapolations to make even worse predictions about stenography’s future.

For instance, they have gone on the record to claim the industry requires 82,000 stenography training program enrollments annually (based on a 10% graduation rate) to plug the self-proclaimed shortfall. Yet this figure would quadruple the size of the entire court reporter industry today and increase the pool of available court reporters to six times that of 2014, the year the so-called “shortfall crisis” started.

With wildly incorrect and baseless predictions like these, it’s easy to see why those with only the most tenuous of links to the legal profession are raising eyebrows at how some of these court reporting companies are getting away with blatantly misleading the public for so long.

Why Corporate Fraud in Court Reporting Continues Today

There’s a pretty obvious reason these companies keep promoting and disseminating their misleading and inaccurate claims: there’s a lot of money to be made.

Stenography is skilled labor and is remunerated as such (some might say underpaid). For someone to type at a rate of 225+ words per minute with an accuracy rate of 99.8% takes years of training and dedication. Stenographic writing is closer to playing the piano than typing on a keyboard. It takes at least two years in a stenography training program, state licensure, and professional certification.

Digital court reporter training lasts six months, with most of that time spent learning how to take accurate notes and operate sound and video equipment. That’s it.

In short, these companies want to replace those hard-earned skills with technology so they can charge less for their services and make huge profit margins while doing so. With audio and video equipment in place, digital court reporters merely make sure the equipment is working and note key pieces of testimony.

The companies in question want to mislead the world into thinking that digital court reporting does the same work as traditional court reporting. But once again, the objective facts of the profession paint a different picture.

Automated Speech Recognition (ASR) software delivers a dreadful 25%-80% accuracy rate, and non-stenographers transcribe English dialects such as African American Vernacular English (AAVE) at a rate half as accurate as court reporters. These are merely two of dozens of damning examples showing that digital court reporting cannot replace standard court reporting.

And yet the two are conflated as one and the same on a daily basis by those that stand to profit most from doing so.

How they have been allowed to for so long somewhat beggars belief.

It seems that, thus far, the courts and government agencies tasked with protecting the public from fraudsters and con artists seem unwilling or unable to act.

So can change be instigated? How can those being hurt by these misleading and fraudulent claims take action?

How to Fight Corporate Fraud in Court Reporting

The simple answer is to fight back. The very tactics companies use to mislead the public can be used against them. They are so brazen and demonstrably false that they are easy to report to the appropriate authorities.

Report Antitrust, False Advertising, or Deceptive Business Practices to the State Attorney General

Where applicable, it makes sense to refer complaints about deceptive practices and patently false advertising to the relevant state attorney general. Not only will they have a more precise understanding of the misrepresentation at hand (being lawyers themselves) than government agencies such as the Federal Trade Commission (FTC), but state attorney generals have the legal power to act against such companies.

Their purview, among other responsibilities, includes enforcing their given state’s consumer protection laws. Given the flagrant breaches occurring, including false advertising, tacit collusion, and deceptive marketing practices, it would be entirely reasonable to expect that they can take action against these corporate fraudsters if made aware.

Report Antitrust Violations and False Advertising to Federal Trade Commission

Given the attempts by the STTI to falsely create a market problem and sell the solution (digital court reporting), it’s worth reporting any antitrust or false advertising violations to the FTC.

Not only have they already pledged to protect gig workers from unfair, deceptive, and anticompetitive practices, but they have specifically stated they will also investigate exclusionary or predatory conduct that could cause harm to customers or reduced compensation, or poorer working conditions for gig workers.

Given the practices of these companies harms both customers (by giving the false illusion of equivalency between standard and digital court reporting and deceptively exaggerating the court report shortage) and the 70% of court reporters that work as independent contractors, the FTC should at the very least investigate these practices.

Sending Information to Local and Corporate News Outlets

Sometimes the only way to draw attention to a problem is to throw a spotlight on it. By writing emails to editors of local newspapers or contacting local TV stations and radio stations, it’s possible to make clients aware of the deceptive practices and have them contact the relevant authorities and regulators to demand action.

At the very least, it may be that these fraudulent operators have to answer very direct questions regarding their business practices. With the glare of a significant readership or viewership, they may squirm under the pressure and be forced into providing evidence and documentation that doesn’t actually support their statements.

Contact Local Elected Officials

Another option for stopping corporate fraud on this scale is contacting elected local officials at either state legislature or county levels.

Not only do they have the power to pass laws that protect consumers from unfair or deceptive trade practices, but they also have a direct line to the government agencies tasked with enforcing those laws, such as the FTC and state attorney general.

Once again, those with the power to act can’t do so if they are ignorant of the problem in the first place. Only by publicizing these fraudulent practices can lawmakers and regulators be forced to act.

Court Reporting is Under Attack from Those Standing to Benefit from Its Demise: It’s Time to Act

There’s no question that the court reporter shortage has been leapt upon by companies such as Veritext, US Legal, Planet Depos, and other members of the STTI as an opportunity to cash in on the digital court reporting market.

By replacing incredibly skilled labor with unskilled and automated digital transcription, they persist in attempting to convince law firms, courts, and even government agencies that digital court reporting is a viable replacement.

The statistics speak for themselves on that front.

However, it’s the hyperbolic claims being made and the outright lies being spread about the court reporting industry in the name of corporate greed that are truly egregious. It’s naked corporate fraud that is only being further enabled by the willful ignorance of many lawmakers and regulators tasked with protecting consumers from unfair and deceptive trade practices.

Thus, the onus is now on those willing to stand up for justice to take action using some, if not all, of the avenues mentioned above.

Hopefully, with coordinated and concerted action, there can be an end to the rampant corporate fraud taking place within the court reporting and stenography profession.

Author: Joe Gratton
Bio: Joe Gratton is a professional writer who has worked with a number of legal firms in the United States, covering topics including court reporting, legal videography, electronic discovery (e-Discovery), and trial presentation services.

Bulletin: Court Reporter Shortage or Fraud?

Law360: A Dire Court Reporter Shortage? Depends on Who You Ask.

Certain court reporting companies are exaggerating and exacerbating the stenographer shortage for the purpose of selling digital court reporting to lawyers/courts/consumers.

Veritext, US Legal Support, and Planet Depos have all publicly made statements about the unavailability or shortage of stenographers while putting most of their effort into expanding digital court reporting. Succinctly, utilizing their market share to obfuscate the availability of stenographers and artificially increase digital court reporter demand. It is unknown whether this is concerted or a form of tacit parallelism.

The resulting atmosphere is also misleading to those seeking a career in court reporting.

The nonprofit Protect Your Record Project was formed to educate consumers on the bait and switch tactics occurring in the court reporting industry.

In 2021, US Legal Rep Peter Giammanco wrote, “Does it really matter if done legally and ethically and both methods end with the same final transcript?” A consumer awareness campaign was subsequently launched. There are questions about whether digital recording is reliably the same as stenography. In one New York case, the court remarked that past holdings that recording was equivalent to stenography were belied by the record in that appeal.

Companies continue to profess shortage while placing the bulk of their effort into expanding the digital reporting market, effectively limiting consumer choice and ignoring consumer preference for stenography. The 2013-2014 Court Reporting Industry Outlook is used to add credibility to these claims, but that forecast is nearly a decade old and does not account for recruitment initiatives such as National Court Reporters A to Z, Project Steno, and Open Steno.

Attorneys, courts, and support staff can attempt to find stenographers or stenographer-run businesses through their state court reporting association or NCRA Pro Link.

The FTC has stated it will crack down on companies taking advantage of gig workers. It is unknown how this will affect court reporting, a field that is approximately 70% independent contractors according to available data. It is also unknown how rampant misclassification may be in the field.

Stenonymous (Christopher Day) is dedicated to informing the court reporting and legal community and has faced legal threat for accurate reporting in the past.

Does this look like they’re looking for stenographers?

Members of the community that wish to support advertising for this bulletin may send money through the donation box at Stenonymous.com.

Court Reporter EDU is FoS

So I stumbled across the CourtReporterEdu.org website. A pleasant website that is facially neutral. You look at it, and it doesn’t seem to be anything “bad.” It talks about stenographers and shorthand. It has a picture of a stenotype. Looks like the kind of marketing stenographers should be doing.

Then you, reader, head on over to a magical place, court reporting info by state.

And when the reader goes to look at their state, they’ll infallibly get a long list of schools that have “court reporter programs.”

From my review of the New York schools listed, none have a digital court reporter degree. The few that mention digital court reporting sell the digital court reporting as a “continuing education” program. In short, they’re selling continuing education for a degree track that does not exist. Some of these schools have zero mention of digital court reporting on their website. Some schools, like BMCC, you reach out to admissions, and they know nothing about the program.

So, of course, I ask Ed 2 Go what the deal is, because Mark Pugal from Ed 2 Go has been trying to sell me on Digital Court Reporting for like a month now.

And of course, I trust, but verify.

BMCC asked for my concerns, so I put them out there.

Now, just to explain, in part, why I think CourtReporterEDU and possibly Ed 2 Go is being dishonest: (1) In many of the schools listed, when one goes to independently verify the existence of the program, it doesn’t seem to exist. Attempting to verify the program with the schools that actually do seem to offer it leads to this roundabout “we don’t have that program, but actually we do” response. Maybe at the point colleges are selling programs with no future and are so insignificant the admissions department doesn’t know they exist, or they don’t exist, we’ve gone too far. (2) Even where the program exists, it is selling students a course in something that is not the industry standard and does not have as many opportunities. (3) Putting a stenotype on your homepage and then diverting people to digital court reporting via esyoh.com and Ed 2 Go is just dishonest. Even if we forgive everything else, the way this page is set up is to confuse people and lend legitimacy to digital court reporting that it does not deserve.

At the bottom of this page is a video walking people through that part. Now for a bit of speculation. We know from the WHOIS lookup that the registrant’s address was in Florida. The server the site is hosted on appears to be in California, but that’s likely irrelevant.

Luckily, one of the schools actually advertising the program gives us a peek into who might be promoting it. Wagner College lists Merritt Gilbert and Natalie Hartsfield.

Merritt Gilbert is apparently in Florida and connected to BlueLedge. BlueLedge, as some may remember from a prior post, are aggressively marketing digital as the answer to the stenographer shortage exaggerated and exacerbated by STTI, Veritext, and US Legal. The author of that article stating digital reporting is the answer to shortage? Benjamin Jaffe. Who is Benjamin Jaffe? BlueLedge.

Who is Merritt Gilbert? BlueLedge.

Who is Natalie Hartsfield? Digital, BlueLedge, Florida.

Now here’s where it gets really interesting. Remember when I wrote yesterday that US Legal has been on inactive status in New York since 2001? BlueLedge, according to Florida Department of State, has been dissolved since 2019.

And just for anyone who thinks “maybe there are two BlueLedge companies in Florida,” take a look at that mailing address, 101 E Kennedy Blvd. Guess what the address for BlueLedge is.

If you guessed 101 E Kennedy Blvd, congratulations.

How is it legal for a dissolved company to misdirect the public, searching for stenographic reporter training, to Ed 2 Go and digital court reporting? It might not be, but it’s going to depend on us asking our various government agencies to look into this as a matter of false advertising and possibly operating illegally in the state. I reached out to my New York State Education Department as it pertained to this course being sold to New York consumers. Maybe this is something the members of each state association can tackle.

This situation blew my mind. We cannot stand for this. We have to fight and understand that we are playing against people that do not play by the rules or within the bounds of our self-imposed moral code. I have collected these images and ideas in a central place. Please use them to do good. I should note that at least one consumer was extremely confused and came onto our message boards asking about how to buy a stenotype for digital court reporting. We must act with compassion. Consumers are being lied to and we are the only people with the knowledge to explain it to them. They WILL stumble onto our message boards confused because they ARE being bombarded by lies.

Addendum:

After reaching out to ESYOH well after this article, they took action! The scheme is now less potent because of their valiant actions.

Where the schools used to lure students to a splash page, they now lead to box about degrees.

Veritext and US Legal Lied to the Public About Stenographer Shortage

Veritext, through its puppet Cooper, and US Legal, have both been lying about the stenographer shortage. How do we know? Cooper claims the problem started 8 years ago. This is objectively false. Firms 8 years ago were saying they could not pay better rates because there was a glut of reporters. Even if you don’t believe that, stenographers are 30 years behind inflation, which does not happen if a field is experiencing a shortage.

But they’ve made it even easier to tell they are lying and committing a fraud against the legal profession. Let’s see what Cooper has to say.

As you can see, Cooper claims you would need 82,000 students to enroll in court reporting training programs nationwide in 2019 and each year following in order to overcome the deficit.

What does US Legal say?

Wow. 82,000 enrollments needed and only 2,500 enrollments occurred. Sounds like a death knell for stenography. Right?

Liars. How do we know? In 2014, BLS told us there were 21,000 court reporters. From my own independent analysis of the numbers and NCRA statistics, there are actually closer to 27,000 or 28,000 court reporters. It does not matter whose statistics you use, the conclusion they’re lying remains the same. There was no shortage crisis in 2014. We have roughly the same number of court reporters today as we did back then. The 2013 Ducker Report told us that 70% of court reporters would retire over the next 20 years (2013-2033). 70% of that 28,000 is about 20,000 reporters. Succinctly, the retirement cliff we are trying so hard to fight is about 20,000 people if you trust NCRA and about 15,000 people if you trust the Bureau of Labor Statistics.

About 10% of people that start steno graduate. So if we had 82,000 enrollments a year, that’s 8,200 new stenographers per year. But look at what US Legal wrote again. “We needed 82,000 new students to enroll in court reporting training programs nationwide each year to overcome the impact.” If we, in fact, have 82,000 new students each year from 2019 to 2033 (15 years), we would have 1.23 million enrollments or 123,000 graduates. Our field would be quadruple the size it is today, and if you go by the Bureau of Labor Statistics, nearly six times larger than it was in 2014.

To combat our retirement cliff of 20,000 people between 2019 and 2033, we need a total of 200,000 enrollments. That’s about 13,400 enrollments or 1,340 graduates a year, a number six times smaller than the one proffered by US Legal and Veritext/Cooper. If you’re six feet tall, that’s like me claiming you’re 36 feet tall. If we required 8,200 stenographers per year, about half of all depositions would be going uncovered right now (8,200 x 3 years 2019-2021, a gap and demand for 25,000 stenographers by 2021.)

If you accept Owler’s revenue numbers, Veritext controls about $490 million in revenue and US Legal controls about $100 million. That’s a combined total of $590 million. If you accept the Kentley Insights 2019 Stenotype Services market research report, that’s about 20% of our field, and they are using their power to destroy it.

590 million divided by 3 billion is almost 20%

Some have said: They’re lying. So what?

Well, the market preference is stenography.

Court Reporting Industry Outlook 2013-2014 Ducker Worldwide

We know from nonprofits like Protect Your Record Project that attorneys are being told they must accept digital because no stenographer is available even after attorneys order stenographers. So we know there’s some serious false advertising going on.

Previously, I was unsure if there was collusion between major players in the field. Considering that both are using similar language it seems unlikely that both have come independently to the same incorrect conclusion. It’s not like the two firms are enemies. They’ve lobbied together before.

Alliance-of-Deposition-Firms-2 Download

It seems much more likely that following fraudster Jim Cudahy’s lead via the Speech-To-Text Institute, the two companies are involved in a plot to hurt the market and rob consumers of their choice. Quite frankly, Cudahy uses his ex-NCRA credentials to lend credibility to this fraud. After all, STTI has been instrumental in creating the propaganda ruining our field. STTI was, without a doubt, created for the sole purpose of promulgating propaganda and facilitating the ongoing fraud, against its stated mission of representing all modalities in speech-to-text transcription. STTI’s lies are also easy to see through.

A gap of 11,000 predicted by 2023 according to a recent study. What study was that? None. The year 2023 doesn’t appear in the Ducker Report. At best, these numbers are extrapolated from an outdated report that could not account for the positive recruitment impact of NCRA A to Z, Project Steno, and Open Steno — initiatives that Jim Cudahy should have known about in 2019.

Unless you believe 2 + 2 = 24, the stenographer shortage is being exaggerated and exacerbated by Veritext and US Legal Support. And now you have a brief video to help explain it directly to attorneys.