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The editor of a magazine in the Champaign-Urbana area had previously promised the Illinois attorney general's office, in a consent decree, that she would not accept payments in advance of providing the products or services for which the payments are made.
But Holly Cunningham, who published Her Lifestyle magazine while using the name Rachel Spencer, sold magazine advertising space as a package to be used over the next 12 months to at least one local business.
Holly Birch Smith, who owns Holly Birch Photography in Urbana, said she paid Cunningham $1,000 for several units of advertising that could be used over the next year.
Cunningham signed the agreement with Attorney General Lisa Madigan's office June 1 after Madigan's office filed suit last July, alleging Cunningham sold ad space for a magazine that was never published in McLean County.
Cunningham said her lawyer told her that selling ad space in advance in Champaign wouldn't violate the agreement.
Her attorney, Mark D. Johnson of Bloomington, said he couldn't comment on that.
Cunningham has published May, June and July issues of Her LifeStyle and said she plans to publish the August magazine by Aug. 7.
"I delivered what I promised I was going to deliver," Cunningham said.
The magazine is printed at the Premier Print Group in Champaign, where the printer confirmed it is in production.
"We are in between having it designed and getting the final proofs done and approved," said Scott Moore, a partner at Premier Print Group, Friday. "We are waiting for that to occur."
Madigan filed suit against Cunningham last year in McLean County, alleging that Cunningham had sold at least $17,000 worth of ads in magazines that weren't published.
The magazine Cunningham ran in Bloomington was called Just 4 Her magazine.
The suit also alleged that Cunningham collected money and inventory for an event called the Navy Pier Midwest Baby Expo, and failed to return the money or inventory after the expo did not take place.
The suit was settled with an agreement between Madigan and Cunningham, in which Cunningham agreed that she couldn't accept payment or anything of value in exchange for products or services "prior to the provision of those products or services."
Cunninham was ordered to pay $1,960 in restitution for specific businesses, as well as $1,000 to the state to assist with the enforcement of the Consumer Fraud Act.
The agreement was not an admission of guilt on Cunningham's part, it stated.
Scott Mulford, a spokesman for the attorney general's office, said his office has taken some complaints about Her LifeStyle magazine in Champaign, and encourages those who have had problems to let the attorney general's office know. The office has a consumer hotline at 800-243-0618.
"We are taking the information and seeing if there may be a problem," Mulford said.
The Midwest Baby Expo was also the subject of nine complaints to the Better Business Bureau, said Jessica Tharp, vice president of the Better Business of Bureau Central Illinois.
Cunningham said those complaints were from customers who weren't happy with the turnout of an expo that was held in Minnesota. A second event was supposed to be held at Navy Pier, Cunningham said, but she couldn't sell enough booths to make the event happen.
Tharp said in general, people thinking about advertising should check with the Better Business Bureau and verify how long the company has been in business and if there have been any prior complaints.
She also encouraged would-be advertisers to "get everything in writing," because a contract can be verified or the basis for legal action, if needed.
Cunningham's consent decree, and the fact that she was using an assumed name in Champaign, came to light when one of the magazine's photographers and designers started investigating the business after not being paid for six weeks.
Champaign resident Missy Larson issued a statement about her experiences, saying she started working for the magazine in mid-April of this year, with a woman who identified herself as Rachel Walker-Spencer.
"I was promised a partnership which never materialized on top of an agreed-upon monthly salary," Larson said. "I received some initial payments, but when I had not been paid for six weeks, I began to press for payment."
Larson said Cunningham wouldn't attend meetings they agreed upon, and Cunningham ignored her calls and text messages.
"On July 12, 2012, I was informed via email by a person named Jesse, who I believed was Ms. Walker-Spencer's husband, that I was no longer part of the company," Larson said in a statement.
At that point, Larson discovered a news video that identified the person she knew as Walker-Spencer as Cunningham, and talked about the attorney general's lawsuit.
"I believed it was my ethical and moral duty to inform businesses with whom I had worked for the magazine of the information I had discovered," Larson said. "Maintaining the good relationships I have built with the local business owners whom I have worked closely with over the past several months is my priority now."
Larson said that when Cunningham was representing herself as Walker-Spencer, she told Larson she lived in Monticello.
Cunningham lives in LeRoy.
Larson said she's not making any allegations against Cunningham other than that Larson wasn't paid for work she did.
Cunningham said Larson has been telling other business owners about her history and conducting a "smear campaign."
Larson said that's not true.
"I don't have the time or the interest in a smear campaign," Larson said, adding that she's made no personal comments about either Cunningham or her husband. "Anything I have said about them is verifiable with the Illinois Attorney General and the McLean County Circuit Court. I have no interest in stalling the August magazine. I hope it is published."
Cunningham said she started Her LifeStyle magazine because it's always been her dream to create a magazine, and Champaign would give her a fresh start.
"It's been something I wanted to do my whole life," she said.
She said her attorney told her she could do business using a different name to get past the bad publicity of the past.
Johnson said he advised Cunningham after the agreement with the attorney general's office to run any business she had lawfully.
"I advised Ms. Cunningham to fully comply with any and all terms of the consent decree," he said, and to comply with Illinois law.
He said doing business using a different name would require someone to register the assumed name with the county clerk.
Neither the Champaign nor McLean County clerk's office has a record of Her Lifestyle Magazine being registered.
The corporation is registered with the Illinois secretary of state under the name of Cunningham's husband, Jesse Cunningham.
Johnson said he couldn't comment on the particular issue of whether Cunningham can sell advertising space in advance under the agreement with the attorney general's office.
Cunningham said she's produced everything she promised to advertisers.
"Yeah, I didn't go by my name, but I delivered what I promised and more," she said.
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We are advertisers. We are very happy with the service we have received. We found her to be very attentive to our needs and deliver as she said everything as promised.there is a smear campaign going on or why else are we being urged by Missy to reverse our payments. Why have we received no less than a dozen emails from her. The fact is three issues have been delivered as promised. Everyone has skeletons.
We LOVE the magazine and Rachel/Holly. I completly understand the name thing and give her lots of credit for standing up brushing herself off and achieveing her dream. How many people get back up and try to right their mistakes? Seriously? If it was a scam then there would not be three issues with a 4th nearing to be released. It has been a HUGE smear campaign I too have numerous emails and on another site Missy states to reverse your charges, if thats not telling you its a scam then what is that?
The magazine is gorgeous and she obviously works her tail off, im not that interesting to be around but I would have her in my shop 1-2 times everyweek wanting to know how it was going or to tell me an idea she had for future campaigns.
I wish her the best and will continue to advertise.
Lets not chase a beautiful thing out of Champaign because of her past, anyone around her for 2 minutes knows how bad she wants this thing.
Maybe we need to ask why on a few other issues related to the outed party......
And if you're so eager to slam her, where's your real name?
RED FLAG!
Where in my orginal comment did I "slam" her? I was simply noticing a trend in all of the comments and pointed it out, as any reasonable, curious person would.
My real name is Amanda Baker, for the record.
Im being featured in September, didn't pay anything. Had my picture taken why would you do that if your not putting it out? Why put time and energy into something that doesn't help you achieve stealing thousands if thats your MO. I agree with the above post 2 minutes with her and you know how much she wants this. I havent gotten emails because this Missy doesnt know who I am but I have read emails she sent out. It is a very obvious what the agenda was. The magazine caught my eye at the grocery store in May. I contacted the editor in June about my craft she said she would contact me later to showcase it never tried to sell me anything. I love the magazine all my friends love the magazine my husband loves it because its not Cosmo or People. Its a positive thing for this community and you have to give her thumbs up for following her dream and heart. Good luck to her and I realllly hope it works not just so my feature will be out, though that is going to be pretty cool!
Im not in the middle of all this but I do knnow there are many stories. One site says prosecuted another says an agreement? I have picked up all 3 and I am also a fan they are great. In my opinion everyone deserves a chance and shes proven herself by delivering 3 magazines. I hope it continues. One great thing about our country is that you are allowed to rise above your mistakes. Go knock their socks off and achieve your dream!
It is tough enough to stay in business with all the rules and regulations let alone having someone that is unhappy try to destroy you. Holly or Rachel has produced exactly what she promised three months in a row with the forth on the way. We need to get behind this effort and make sure this addition to our community is a sucess.
Isn't it interesting that management at the the N-G decided to devote such a substantial amount of space to this story? Remember that the N-G is in the magazine business, too. Maybe the real purpose of the article is to muddy up the reputation of a potential competitor.
The N-G isn't the only place to cover this story. The potential for people being scammed is what is driving this, not that suddenly there is some "competition" out there.
On the theroy there is no such thing as bad press my husband urged me to contact the owner. Who isnt going to pick up this magazine? Everyone will want to have a copy. If anything she should be thanking those that are keeping this going. I emailed her.
The only fact I see here is she got out 3 magazines. It cant be easy to get out 3 magazines let alone have a 4th on the way.
I see no wrong, only a past that needs to be overshadowed not the other way around.
I dont want to insult anyone with a verse but I find it appropriate.
Isaiah 1:18 “Come now, let us reason together, says the LORD: though your sins are like scarlet, they shall be as white as snow; though they are red like crimson, they shall become like wool.
- Dana Lacusky
I've never seen the magazine as I don't buy them. There is a difference between starting over and concealing you past and identity so the people you are working with can't make an informed choice and protect their own interests. It's an unregistered business that has already garnered new complaints to the attorney general's office. It sounds like perhaps their hopes and dreams are bigger than their skills, and rather than have help corners are being cut. Perhaps if they were willing to ask for help they could prevent things from going downhill and really get the sucess they truly want. There are many places locally they could turn to for help.
Excellent advice! The magazines are free and all over town. I think your advice is great because from what I heard this is basically a one person show. The magazines are beautiful and very well done.
My employeer is a client. I want to first say I think a few people choose to be annonymous because they have been bombarded with emails and calls for a week now. I know that our business is only concerned with what the effects of all this will be. It's an advertiser supported publication so is there to much damage done? I know that we will continue to advertise. We agree that there hasnt been a scam to date. Everything that she said materialized. She delivered everything as promised, on time and to our satisfaction. This community can defietly benefit from this publication. I myself discovered new places from it and was very touched by stories I read. There was a post about how there are now complaints at the attorney general. Those are because of all this no one was unhappy or worried until the email went out on the 21st.
A word to Rachel, Keep moving forward you have a sensational product that is embraced and this storm will pass. Keep reaching for the gold ring!! ;)
Click on their IDs and it gets even more interesting. According to their comment history this is the first day any of them have been so moved by a story that they will comment. However a couple of them have caught the bug and commented on other stories.... also published today.
I can only speak for myself as being only one person and if you hadn't noticed this article showed up today.
Exactly!
I've been commenting here for a while. I use my real name.
I'm thoroughly impressed with the magazine. The Jen Smith profile was gripping. It was good to see that Emily Weber got into modeling.
I also wondered how the publishers pulled it off, given what I know about magazines & advertising in this community. I further wondered how Rachel Spencer got in the publishing business; because last I knew she was working at Farren's (hello Rachel ... although I suspect it's actually "Rachael"). Finally, I'd wondered why the N-G hadn't covered the magazine in its (usually depressing) new consignment shop, car wash opens column.
This feature answers all those questions.
I think everyone has a right to their opinions and what would anyone have to gain with posting themselves. I liked the magazine and know others that do as well. I only know two advertisiers and both said they are staying with it. Today is my first day on here as well I wanted to say I like the magazine.
Being fairly new to the area I haven't been on here before. Sleep is a luxury with an infant so I decided to check out the gazette. I actually got a copy of the magazine a week or so ago. I really like it. It would be ashame to see it go. I think everyone deserves a chance regardless of opinion and past. I think these threads could be more productive it they weren't littered with boilerplate responses.
I enjoy the magazine and thought it was put together very well. If they were out as guaranteed then her past shouldn't matter.
I have to say, I'm not a former employee, but am displeased that my post has been removed. All I was trying to do was point out that regardless of what she's doing now, she had an agreement with the State that she wouldn't pre-sell advertising space in return for not having to pay everything back or possibly go to jail. Is she trying to get herself back together and follow what appears to be her dream, looks like it. Did she make an agreement with the State? Yes. Did she violate that agreement by selling 12 months of advertising space? If she accepted payment in advance, yes.
This story wasn't about smearing her reputation. It's about facts that shows a potential for a crime having been committed. In this case, violation of a consent decree, that she agreed to abide.
Someone suggested the removal of my post, most likely because I was a voice of reason. Unfortunately, my well thought out points were against what they agreed with, so they had my comment removed. I have nothing against this proprietor and wish her all the luck she deserves, but when you make an agreement with the State, you need to follow the rules and decrees in that agreement.
Like this isnt you just trying to get attention.
found online that in 2005 she was convicted on three counts of Prostitution in cook county. aka Chicago. Shes a piece of something.
Everywhere u go right now everyone is talking about this. obviously she needs to be tossed away.
Comments are getting out of control and wrong. If she was convicted of prostitution then it would of been in the article. Thats made up. That and a few other comments are wrong and a straight out attack. All over online there have been comments that she has children do they really need to read some of this stuff especially if made up. Move on stop the attack.