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Former American Apparel CEO Dov Charney Speaks Out for First Time Since Ouster

ABC News(NEW YORK) -- For the first time since his ouster, former American Apparel CEO Dov Charney is talking publicly about being at war with the company he built and overcoming a reputation tarnished by allegations of sexual misconduct and mismanagement.

"I want everybody to know I’m not 'the Sleaze King,'" Charney told ABC News' 20/20 in an exclusive interview. "'The Sleaze King' is another guy."

Since being fired as the chief executive of American Apparel in December, Charney, 46, claims he is broke, but still lives in his 10-bedroom Los Angeles mansion where he plots his return to power. Inside his master bedroom suite, which he calls his “war room,” the walls and mirrors are covered in a collage of notes and newspaper articles.

“I've had a minute being on the outside to re-strategize how I want to take the company, you know, control of the company again, and I intend to,” he said.

To some of his employees, Charney was - and still is - a hero. There have even been rallies of garment workers who believe he can save the troubled California-based company.

But Charney is not universally adored. He is also infamous for building the brand by pushing the limits of good taste and sexual propriety when it came to marketing its clothing. Charney was criticized for using young models in provocative ads, but he says the models just looked younger than their real ages.

“I’m sure we pushed the envelope too far a couple of times,” he said. “That’s why you make the next ad right away.”

When he founded the company in 1989, the American Apparel brand distinguished itself by being a company that, against every trend, manufactured clothing in the U.S. and paid its workers far above the industry average.

“A good worker can make $13, $14 bucks an hour and their colleagues are working in sweatshops where they're paying cash for $5,” Charney said.

By 2005, the company was growing by leaps and bounds, earning $211 million in profits. Two years later, it went public.

For Charney, it was always about breaking boundaries, which became the driving force behind both his rise and fall.

As profits rose, so did allegations that his sexual enthusiasm wasn’t just a marketing ploy, but that it also created a sexually charged, hostile work environment. Charney denies ever sexually harassing an employee.

“I’ve never engaged in any activities that could be characterized as sexual harassment,” he said.

Despite his denials, Charney has been the subject of numerous scandalous headlines and lawsuits, many revolving around sex. Charney admits to sleeping with employees, but says everything was consensual and denies any wrongdoing.

“All those accusations against me are crap,” he said. “There’s allegations… we’ve resolved them. None of it — none of these allegations - were ever proven.”

When asked if he knew how many times he had been sued for sexual harassment, Charney said, “Maybe a dozen, maybe less.” He added that some of the lawsuits were settled and others were dismissed.

Despite the allegations, American Apparel’s board continued to keep Charney on as CEO for years, until this summer.

“The experience of two, three years, yeah, we lost a couple a hundred million dollars,” he said. “I never thought it would be such a difficult job.”

Charney was officially fired in December 2014. Some of the allegations listed in his termination letter included misusing company money, violating the company’s sexual harassment policy, and offering significant severance packages without board approval to numerous former employees to insure his alleged misconduct wouldn’t subject him to personal liability.

“Those accusations are completely false,” he said, calling his termination “ridiculous.”

“I had been working 365 for 10 years solid, OK? Built a massive brand that captured the imagination of the world,” Charney said. “Then to treat me like that, to throw me on the street... shame on them, shame on them, that’s my message to them.”

Charney has alleged that the company conspired to destroy him, citing, among other things, the suspicious leak of a now notorious video shot in a New York City apartment that shows him walking around naked in front of a coworker and a friend.

Charney says the video hit the web one day after he was ousted. He is convinced the leak must have come from inside the company because they “had access to all of my personal affairs.”

“Hours after I'm fired, a personal video shot by a friend, who had not distributed it to anyone ... was released in the public,” Charney said. “It has to be connected to the company's activities, OK? So the company went as far as to release a video of me that was personal.”

Since Charney’s firing, Paula Schneider has taken over as CEO of American Apparel. Her mission is to restore the company to profitability, save workers’ jobs and distance the company as far as possible from its controversial founder.

Schneider denies there was an underhanded plot to fire Charney and says that the company never leaked the video.

“I have great respect for what he built here, but there were challenges,” she said. “In the last five years, the company has lost over ... $300 plus million. So you know, it wasn't a financially healthy company, and my goal is to take it, turn it around.”

“Even the best of American companies had periods of losses," Charney said about the claims he mismanaged company money. "What's important here is about the 'go-forward' opportunity at American Apparel, and I believe I had a good strategy to go forward.”

Aside from the losses, Schneider said Charney was fired “for violating our sexual harassment and our anti-discrimination policy” and “for misuse of corporate assets.”

When asked how Charney was allowed to continue on as CEO for years after repeated sexual harassment allegations from employees were reported, Schneider said that was “hard to understand.”

Getting the company back on track, Schneider admitted, does mean that workers periodically have been furloughed, “and I feel tremendously bad about that,” she said. But the company pointed out that plenty of workers were elated by the news that Charney was fired and banned from the facility.

The company directed ABC News to an American Apparel employee who asked ABC News to call her “Sam” and not to reveal her identity. Sam said she worked with Charney before he was ousted.

“When you work at American Apparel closely with Dov, you’re pretty much scared all the time,” she said.

Sam claims Charney was cruel and vindictive.

“He will yell at you, call you names, humiliate you until you feel down, broken,” she said.

Schneider said that Sam’s statements echoed others she had seen in human resources reports.

When asked about Sam’s allegations, Charney said that was simply “one person's point of view.”

“There's many different points of view,” he said. “I'm not going to get along with everybody. This is a tough environment. It's the apparel industry. Not everybody has to work at American Apparel.”

But he doesn't deny he can be a tough boss.

“I’ll tell you one thing, I’ll push my white collar workers harder,” he said. “I was combative, I was a pushy boss, I was a hammer on my white collar staff, that’s for sure.”

Charney refused to further discuss the sexual harassment allegations and claimed his ouster was the result of a “witch hunt.”

Despite Charney’s plans of returning to the company, Schneider said that he will never be reinstated.

“He is not allowed to be an employee, or an officer, or CEO of the company. Period. There's no option there,” she said.

This week, the U.S. Securities and Exchange Commission announced it was investigating what led to his termination. Charney declined to talk about the investigation.

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Lonely Bros Can Grow Their 'Wolfpack' With New App

ABC News(LOS ANGELES) -- There’s a new app for bros looking for other bros to hang with, and it could be the salvation of the modern male heterosexual friendship.

It’s called Wolfpack and, yes, it does howl.

The brainchild of Nile Niami, a movie producer turned real estate developer, he said a recently divorced friend inspired him to create the app.

“A lonely guy that lost track of all his buddies because he was married for 20 years and when they got divorced he had … nobody to do anything with,” Niami said.

Women just seem to be better about keeping close friends around than men, he said.

“I think the women, they keep in touch or they have a group of women that they stay close with,” Niami said. “So if anything happens in their life, they would have somebody to talk to."

Here’s how the app works: After users log in, they list their hobbies, interests and a few other details about themselves. Then guys can either sign up to attend a Wolfpack event or create their own, basically a group man date, such as a pick-up softball game or bar meet-up for a drink or a movie night.

Just launched in January, Niami says Wolfpack has 4,000 users so far, mostly in the Los Angeles area. With Wolfpack, users can pick and choose friends, and discard ones they don’t connect with, not so unlike today’s online dating apps, but Niami said Wolfpack is not meant to be a dating app.

“We were very cognizant from the very beginning to make this a manly site,” he said.

One user named Kevin Thomsen said he was married for 10 years, and is recently divorced.

“I used to be on a bowling team... but the bowling team was literally my brother-in-law, and his uncle, and another co-worker of hers,” he said. “And at some point you just kind of had to slice that out and try filling the holes in other ways.”

Thomsen said he tried other apps, like Meetup, but felt that it was too broad to find others with whom to connect.

“There would be people there but not a whole lot that I had things in common with,” he said. “I like to hike, so I thought, ‘Oh, maybe I’ll join a hiking group and make some new friends,’ and no offense to people, but I get there and there’s like a 65-year-old woman, which, awesome that she hikes, more power to her, but we’re not going to go hang out after.”

Wolfpack, which is available for iOS devices, narrows the interest field, letting guys bond over “guy stuff,” however they want.

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Steak 'n Shake Expanding Into Pakistan

SeanPavonePhoto/iStock Editorial/Thinkstock(NEW YORK) -- One of the pioneers of the premium burger market is now expanding into Pakistan.

Steak ‘n Shake announced on Friday that it will open 15 new locations in Pakistan, after signing an exclusive agreement with FM Foods Pvt. Ltd., an affiliate of MJ Holdings.

"FM Foods is the perfect partner to introduce the Steak 'n Shake premium burger and milkshake experience to Pakistan" said Jim Flaniken, Sr. Vice President of Marketing for Steak 'n Shake, in a statement.

Steak 'n Shake expects to open its first locations in Lahore, Pakistan later this year.

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Ellen Pao Loses Big Silicon Valley Sex-Bias Case to Kleiner Perkins

Justin Sullivan / Getty Images(LOS ANGELES) -- A preeminent venture capital firm was mostly victorious in Silicon Valley's biggest sex discrimination suit.

A jury has ruled in favor of Kleiner Perkins Caufield & Byers in the case. At the center of the lawsuit and court case is Ellen Pao, 45, the interim CEO of Reddit and former partner at Kleiner Perkins. She filed her complaint in May 2012 against the prominent venture capital firm, which is based in Menlo Park, California, near the headquarters of Facebook, one of the many tech firms in which it has invested.

The jury initially decided in favor of Kleiner on three questions: the firm didn't fail to promote Pao because she’s a woman, that it did take reasonable steps to help her and that it did try to prevent discrimination, if any. The judge ruled that the jury should continue deliberations on the fourth question, because only eight out of 12 initially decided the company didn't retaliate against her for complaining. The jurors later found in favor of Kleiner Perkins on that count as well.

Pao's attorney Therese Lawless had urged the jury to make a decision that would send a message to the venture capital industry.

“Today’s verdict reaffirms that Ellen Pao’s claims have no legal merit. We are grateful to the jury for its careful examination of the facts," the partners of KPCB said in a statement. "There is no question gender diversity in the workplace is an important issue. KPCB remains committed to supporting women in venture capital and technology both inside our firm and within our industry.”

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California Chinese Restaurant Turns the Tables on Yelp Reviewer

iStock/Thinkstock(MILLBRAE, Calif.) -- The owner of a Chinese restaurant in the California city of Millbrae, near San Francisco, is taking a stand against a scathing review, and he says he has video to disprove the negative comments.

Yelp user “Dan W.” gave Wonderful restaurant a one-star review, claiming it was “busy and potentially understaffed. It’s not that classy of a place, but they refused to seat [him],” so he says he left after waiting one minute.

Wonderful owner Joseph Xue, who could not be reached for comment, and his management team responded by posting surveillance video on the restaurant’s website from the day in question. It revealed that a man who they surmised was Dan W. walked into the eatery, looked at the waiting list, then left after about 22 seconds.

Yelp’s website crowdsources reviews on local businesses from users like Dan. W, and allows the companies to reply.

The management team says on their website that Dan W. is banned from Wonderful, and if he returns, he will be arrested for trespassing. Dan W. responded by toning down his original review, accusing the restaurant of online bullying, according to the restaurant’s website. He also requested the management take the video down.

Dan W.’s comments about Wonderful are no longer on Yelp, but the restaurant says it has screenshots of both the original and the tweaked review on its website.

ABC News was unable to identify Dan. W so he could not be reached for comment.

In a statement to ABC News, Yelp said, “Our records show user Dan W. has closed his account and removed his Yelp review himself.”

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Gains on Wall Street Despite Slowed Economic Growth in Fourth Quarter

iStock/Thinkstock(NEW YORK) -- After a run of losses this week, Wall Street finished Friday's session on a somewhat positive note. All three major indices closed the day with gains, despite a Commerce Department announcement of slower economic growth in the fourth quarter.

The Dow Jones Industrial Average gained 33.90 to end the day at 17712.13.

The Nasdaq climbed 27.86 to 4891.22, while the S&P 500 closed the session at 2060.94, up 4.79 from its open.

The U.S. Commerce Department announced Friday that the U.S. gross domestic product climbed by just 2.2 percent in the fourth quarter. In the previous quarter, the GDP had risen by five percent.

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Silicon Valley Startup Creates $20 Toothpaste

iStock/Thinkstock(NEW YORK) --  In this age of $30 dollar shampoo, $50 sunscreen, and $200 face cream, would you pay $20 for a small tube of toothpaste?

A Silicon Valley startup hopes you will.

The company, started by Berkeley and Stanford graduates, says it has invested 12 years into research and development of a product called Livionex.

One 1.7 ounce tube of this dental gel retails for $20.

The company’s CEO, Amit Goswamy, said of the thinking behind their product, “Traditional toothpaste was invented in 1873. There hasn’t been a lot innovation in plaque reduction since then.”

The problem, according to Goswamy, is that traditional toothpaste is primarily an abrasive to rub plaque off your teeth; think of those grainy counter cleaners that scour stains off of surfaces.

Livionex, which does not contain fluoride, is described by Goswamy as more like nail polish remover that detaches plaque from the teeth.

“We actually look at it from a chemical perspective because it aids the brushing and removes plaque much better," Goswamy said. "Because the plaque is actually repelled from the teeth, we break the molecular bonds beyond between plaque and your teeth so the plaque basically falls off.”

The company has funded a few small studies, most notably one conducted by the University of California at Irvine on 25 subjects, some of whom used Livionex for three weeks.

Goswamy says the Livionex users showed more than a two-fold reduction in plaque, gingivitis and gum bleeding as compared to those who used a traditional toothpaste.

I’ve been trying Livionex for a few days and the first thing you notice is how a dental gel differs from toothpaste. It doesn’t foam. It is minty and your mouth feels fresh afterwards.

I noticed that my teeth felt smooth and clean afterwards like when I brush with regular toothpaste. But what has impressed me is that for the rest of the day my teeth felt cleaner for longer. They even felt smoother in the morning when I woke up after brushing them eight hours prior.

The American Dental Association commented on the new dental gel in a statement provided to ABC News: “The American Dental Association welcomes research that can lead to innovations in dental products intended to improve the dental health of the public. The American Dental Association (ADA) is aware of the limited data that has been published about Livionex dental gel."

The statement continued, "Livionex may hold promise, but the publicly reported data was drawn from sample sizes of 25 or less people. Initial research results on any sort of product be it oral care, pharmaceutical, etc., may or may not be replicated when further studies are conducted and published in peer-reviewed journals. Product claims regarding effectiveness at preventing disease should be evaluated by the U.S. Food and Drug Administration (FDA), the regulatory agency responsible for protecting the public’s health."

When asked about the ADA’s statement, the Livionex CEO says the company and the ADA share a common goal.

“We would like to work with the ADA because both of us have the same goal: better oral health in America," Goswamy said.

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Apple CEO Tim Cook 'Deeply Disappointed' in Indiana 'Religious Freedom' Law

Apple(NEW YORK) -- Apple CEO Tim Cook expressed disdain for a new Indiana law that could allow business owners to discriminate against gay people.

The law, signed by Indiana Gov. Mike Pence on Thursday, is called the Religious Freedom Restoration Act. Pence claims that it "does not even apply to disputes between private parties unless government action is involved," though critics have argued otherwise.

Cook posted to his Twitter account on Friday to express disappointment in the Indiana law, and also to call for Arkansas Gov. Asa Hutchinson to veto a similar bill.

Apple is open for everyone. We are deeply disappointed in Indiana's new law and calling on Arkansas Gov. to veto the similar #HB1228.

— Tim Cook (@tim_cook) March 27, 2015

"Around the world, we strive to treat every customer the same," Cook wrote, "regardless of where they come from, how they worship or who they love."

Around the world, we strive to treat every customer the same — regardless of where they come from, how they worship or who they love.

— Tim Cook (@tim_cook) March 27, 2015

On Thursday, National Collegiate Athletic Administration President Mark Emmert expressed concerns about the law ahead of the NCAA's men's basketball Final Four in Indianapolis next week.

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Federal Bureau Outlines Protections from Abusive Payday Loan Practices

iStock/Thinkstock(WASHINGTON) -- The Consumer Financial Protection Bureau issued a draft of its upcoming payday loan rule on Thursday, the first step in protecting consumers from abusive payday loan practices.

Last year, the CFPB released an analysis of payday loan usage rates and determined that more than 80 percent of payday loans are followed by another loan within two weeks. Additionally, half of all loans are part of a series of ten loans or more, the analysis said.

The CFPB draft sets separate requirements to prevent debt traps on short- and long-term loans. Among the proposals to prevent abusive practices on short-term loans are requirements that lenders determine at the outset that the consumer will be able to pay the loan when due, a 60-day cooling off period between loans, the prevention of overlapping loans. Another proposal would require documentation of improved financial circumstances to take out a second or third loan within two months.

Additional requirements would limits amount of length of loans, as well as the number of allowable rollovers.

The Consumer Federation of America noted three of the most important aspects of any proposal in a Wednesday press release -- a strong standard for a consumer's ability to repay the loan, protecting borrowers bank accounts from abusive collections and making mandatory the ability to repay standard.

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What's at Stake in Kleiner Perkins' Silicon Valley Sex-Bias Case

iStock/Thinkstock(LOS ANGELES) -- The sex discrimination case against one of Silicon Valley's biggest venture capital firms has placed the spotlight on the region’s perceived gender imbalance, with millions of dollars and high-profile reputations at stake.

At the center of the lawsuit and court case is Ellen Pao, 45, the interim CEO of Reddit and former partner of Kleiner Perkins Caufield & Byers. She filed her complaint in May 2012 against the prominent venture capital firm, which is based in Menlo Park, California, near the headquarters of Facebook, one of the many tech firms in which it has invested.

Pao's attorney Therese Lawless urged the jury to make a decision that will send a message to the venture capital industry.

Here’s what you should know:

Accusations of Harassment

Kleiner Perkins hired Pao in June 2005 as chief of staff for one of the managing partners, John Doerr. After working at a handful of technology firms and a law firm, her title with Kleiner was junior partner. Pao studied electrical engineering at Princeton and went to Harvard Law School and Harvard Business School.

"She was told if she was successful in this role, she would move to a full-time investing role after three years," according to her lawsuit.

In her suit, Pao said another partner who is no longer with the firm made "inappropriate sexual approaches" during a business trip to Germany in February 2006, and she "rebuffed his advances.”

From March to October 2006, that former partner, Ajit Nazre, allegedly pressured Pao to "have a sexual relationship with him" and falsely told her that his wife had left him, the suit said.

Pao "eventually succumbed to Mr. Nazre's insistence on sexual relations on two or three occasions," but in October 2006 she told him she would "no longer have a personal relationship with him," the suit says.

The jury will decide if Kleiner discriminated against Pao because she’s a woman, if it took reasonable steps to prevent discrimination, if any, and if the company retaliated against her for complaining.

Kleiner Perkins has denied all of Pao's claims in court. Nazre could not be reached for comment.

Retaliation Allegations

Over the course of five years, Nazre "engaged in retaliation against" her, including excluding her from "numerous" business meetings and removing her from business email discussions where she had initially been included," the court filing stated.

Pao alleges that she repeatedly complained to superiors about this treatment but was told "that she should just accept it," the suit said. She also alleges "inappropriate" behavior by other male employees. The firm has said that Pao didn't complain about alleged harassment until late 2011.

Six months after filing suit, Pao was fired in late 2012, which Pao said was in response to her lawsuit, while the firm claims she was fired for her performance.

Christina Lee, a spokeswoman for the firm, said in a statement to ABC News, "This suit is completely without merit and has no basis in the law. KPCB has a well-established record of championing women in our firm, our portfolio companies and the overall industry. We look forward to clearing our name in court."

Alleged Inappropriate Behavior

In one alleged example, on Valentine's Day in 2007, a senior partner came into Pao's office, the suit states. He gave her a book called Book of Longing, by Leonard Cohen, which contained sexual drawings and poems with "strong sexual content," and invited her to dinner, explaining that his wife would be out of town, the suit states. The firm has stated that Pao never previously complained about the book and that it had been purchased by the partner's wife and was given because of a shared interest in Buddhism.

Alleged Unequal Treatment Toward Women

The suit said Pao "believed that the retaliation and gender discrimination were affecting her compensation at KPCB, because women generally were not treated equivalently or promoted to Senior Partner based on their gender."

Pao alleges she was criticized during performance reviews for qualities that male employees were praised for, such as being "aggressive," according to the lawsuit. On the stand, one of the supervising partners, Ted Schlein, said Pao was "entitled," "territorial" and that big-picture thinking "wasn't part of Ellen's genetic makeup," according to Re/Code.

Kleiner Perkins says that 20 percent of its investing partners are women, compared to the industry average of 6 percent, which comes from the “Diana Report: Women Entrepreneurs 2014,” from Babson College.

What Could Happen

Along with the issue of whether the firm is liable, the jury must decide whether Pao should receive past and future lost earnings. The judge already ruled that Pao can seek punitive damages.

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GDP Rises 2.2% in Fourth Quarter

iStock/Thinkstock(WASHINGTON) -- The U.S. economy grew at a slower pace in the fourth quarter, according to the latest report from the Commerce Department.

The gross domestic product rose at annual rate of 2.2 percent, compared with 5 percent in the third quarter.

Looking ahead, economists expect to see a similar or weaker showing in the first quarter because of severe weather.

"We're all aware of the severe winter weather that we went through. It was unusually severe this year compared to prior years. So we will see a little bit of an effect on consumer spending and business spending from that angle," says Wells Fargo economist Michael Brown.

But Brown predicts stronger growth for the rest of the year.

"A lot of the effects in the first quarter that were negative, were weather-related. The good news is we should make up a lot of that demand in the second quarter. So we're looking for much more robust economic growth, somewhere around 3-percent or more, throughout the rest of this year," he says.

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Americans Continue to Buy Less Soda, Data Shows

Tom Pennington/Getty Images(NEW YORK) -- It seems nobody wants bubbles in their drinks anymore.

The year 2004 was the first time people really started talking about sugary drinks as one of the main reasons for weight gain -- and since then, the fizz has gone out of soda sales.

Last year was the 10th year in a row that Americans bought less pop, according to the latest data published by Beverage Digest. That includes both regular and diet soda.

Coke remained the most popular soda in the U.S. in 2014, but Diet Coke, which used to hold the No. 2 spot, was trumped by Pepsi and fell to third place.

So what are people turning to instead to quench their thirst? Energy drinks, fortified water and bottled or tap water.

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New Jersey Man Sues Builders over $1.6 Million 'Uninhabitable' House

WABC-TV(FLORHAM PARK, N.J.) — The $1.6 million “dream house” a New Jersey man had built for his wife 10 years ago has become a never-ending nightmare for him.

When the house in Florham Park, New Jersey, was completed in 2007, Humayun Akhtar, 66, discovered the home’s interior and exterior had cracks and that the house was “sliding down the hill it was built on,” he told ABC News Thursday.

The house is “unrepaired and uninhabitable,” according to court findings, which added the soil the home was built on was “of insufficient load-bearing capacity to hold the building.”

A reporter from ABC News station WABC-TV in New York visited Akhtar’s home Wednesday and put a marble on the floor, which rolled in the direction of the hill’s slope without being pushed.

WABC-TVAkhtar said he’s never spent a day in the house, but he’s had to pay its mortgage in addition to the mortgage of the Livingston, New Jersey, house his family has been residing in.

Joseph Natale, who owned JDN Florham Park, the entity developing Akhtar’s home, told ABC News Thursday that he and the main builder, Robert Deluca, asked Akhtar multiple times to let them fix the problems with the house, but he wouldn’t let them.

“We also tried to settle with Akhtar on numerous occasions,” Natale said, “but he would not hear about fixing the house and wanted nothing to do with those things.”

Deluca added that he built nine other homes in the development, including one for himself, and none were found to have any problems.

WABC-TVAkhtar said he didn’t want the builders to do anything more to the house because he was concerned they would just conceal the problems rather than fix them.

“I didn’t want them to just do some Band-Aid patch,” Akhtar said.

Akhtar sued JDN FP, Natale, Deluca and Deluca’s contracting company, Deltrus LLC, in 2008, alleging consumer fraud for building the home without determining that the soil was strong enough to bear the house.

The trial was delayed for three-and-a-half years because the defendants repeatedly failed to post security bonds the court ordered, Akhtar’s lawyer, Jay Rice, told ABC News Thursday.

In 2011, a judge suppressed the defendants’ answers because of the violations and ruled JDN FP, Natale and Deluca violated the Consumer Fraud Act and owed Akhtar $7.4 million in damages, Rice said.

WABC-TVHowever, a New Jersey appellate court reversed the verdict last month, stating that Natale and Deluca had been given an inadequate opportunity to defend themselves, and a new trial with a jury will decide the case, Natale’s lawyer, David Stanziale, told ABC News Thursday.

Akhtar’s lawyer said they are trying to appeal the appellate court’s decision, adding he and Akhtar would apply to bring the case to the New Jersey Supreme Court Thursday.

While Akhtar said he believes he’s the “innocent victim” of people trying to defraud him, Natale and Deluca said this isn’t the case and that they wish Akhtar allowed them to fix the problem years ago.

Meanwhile, the Akhtars’ dream home is going into foreclosure, Akhtar’s lawyer said.

“This whole thing has destroyed my life,” Akhtar said. “I bought the house as a dream house for wife, and now we have nothing, and it’s taken a toll on me emotionally and financially.”

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Why Customer Service Representatives Might Be Deliberately Making Your Experience Worse

JumpStock/iStock/Thinkstock(NEW YORK) -- More and more disgruntled customers are posting personal horror stories online about their interactions with customer service representatives at call centers.

But former service representatives Mark Pavlic and Jacob Curtis recently told ABC News’ 20/20 that the stress of the job and even the customers themselves are sometimes responsible for those negative experiences.

“You almost never have anything good happen to you at work,” Pavlic, a former cable company agent, told 20/20. “And I think that that makes the job stressful.”

“You're just entry-level position,” Curtis, who worked for a home security company, said. “You just do what you're told.”

“The reality is that our negative customer service experiences are far more memorable than our positive ones and we typically embellish those negative events to anyone that will listen, thereby affecting the original source business well beyond that single frustrated customer,” Bill Crutcher, president, National Customer Service Association, said in a statement to ABC News.

He added: “Our Chapter organizations, journal contributors, class attendees and general membership assure us that there are many organizations whose true culture is one of excellent customer service--internally and externally. Small and large employers alike are role-modeling and empowering a staff focus on service excellence through routine and training and consistent messaging; encouraging employees to do what it takes to provide a positive customer experience every time.”

Pavlic and Curtis revealed what they say really went on at the other end of the phone line and why representatives may actually be deliberately antagonizing their customers.

Watch the full story on ABC News’ “20/20” Friday at 10 p.m. ET.

1. There’s a lot of pressure on customer service representatives.

Pavlic and Curtis say the reason customer service representatives have such bad experiences is that it’s one of the worst jobs in the world. They say it’s no surprise that some overworked and lowly paid representatives lash out at their own customers.

“It's not an easy job, because you're trying to appease the company that you work for and then you're trying to appease the angry customer who disagrees with the policies,” Pavlic said.

They say a manager is also often hovering over your shoulder, timing and monitoring calls.

“And then having to do this a hundred times a day; it's very emotionally draining,” Curtis told 20/20. “And it's call after call after call. You get maybe 30 seconds, if you're lucky, in between calls.”

2. They have little to no power to fix issues.

Representatives’ hands are often tied when it comes to fixing the problem in the first place, according to Pavlic and Curtis.

“I mean, the policies are very set in stone, and you can't really override them,” Curtis said. “What's also difficult is that it's not really your fault, and the customer takes it out on you.”

3. Representatives might transfer difficult customers on purpose.

According to these former customer service representatives, unruly customers are dealt with by being transferred from department to department.

“You just transfer them to another department, not your problem anymore,” Curtis said. “Because there's no repercussions for you as the customer service rep. It's all of a sudden with one click of a button, ‘Hey, I'm going to transfer you.’ All your problems are resolved. It's so nice to do.”

“I can say that it has happened, even by people sitting next to me,” Pavlic said. “They've transferred people back into the queue.”

4. Good luck getting an actual supervisor on the phone.

“The company does not want you to get to the supervisor, because it takes up the supervisor's resources and time,” Curtis said.

Pavlic says customers who want to talk to a supervisor might actually be talking to someone pretending to be a supervisor.

“It's essentially -- they have a different job title than us, but they have no real power over a normal customer service representative,” Pavlic said.

“I had the same thing at my company. You were told, ‘You are a supervisor,’” Curtis said. “So you can tell the customer you're a supervisor. Even though they don’t, they're not supervising anyone.”

5. Agents are mostly playing the “sell game” instead of helping you with problems.

In their experiences, Pavlic and Curtis say there was a focus on sales over customer service.

“You definitely spend the majority of your time trying to push something on them that they don't want pushed on them,” Curtis said, “trying to sell them something.”

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Unemployment Claims Drop, Wall Street Follows Suit

tarabird/iStock/Thinkstock(NEW YORK) -- Thursday was another poor day on Wall Street, with all three major indices posting losses, the fourth consecutive negative day on Wall Street.

The Dow Jones Industrial Average dropped 40.31 to 17,678.23.

The Nasdaq posted 13.16 in losses, closing the day at 4,863.36, while the S&P 500 dipped to 2,056.15, down 4.90 from its open.

The U.S. Labor Department reported on Thursday that unemployment claims dropped 9,000 from the previous week. The four-week moving average also dropped 7,750, to 297,000.

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