Shoutout to Stan Fichtman (PoliticsHawaii.com) for breaking the story of the sudden demise of SMS Research and Marketing Services Inc., a company which was considered the leader in survey research and polling in Hawaii over much of the past half century.

Although perhaps not quite a household name, the company was well known in both the business and political communities for its survey research and political polling.

In a series of posts, Fichtman caught a rumor that the company had gone under, confirmed it had closed its doors, and tracked down evidence of a financial mess that led to its collapse.

“Word on the street – SMS Research shut down”

“SMS Vanishes: State Contracts in Limbo”

“SMS’s Cash Catastrophe: A Tale of Debt and Default”

Fichtman cited documents filed in an Ontario County, New York, court last month charging the company’s most recent owner, Timothy James Carson, with defaulting on a $22,500 30-day loan.

The loan, dated August 24, carried an estimated annual percentage rate of an astounding 528.62%. The lender is identified as Seamless Funding LLC, which does not appear to have an online presence. The loan was to be repaid with daily payments of $655, 13% of the company’s estimated monthly income, or a total of $33,727.50 after 30 days.

Carson pledged all of the company’s assets as collateral for the loan, subject to forfeiture in the event of default, loan documents attached to the complaint show.

A lawsuit alleging the loan was unpaid and in default was filed just days after the expiration of the original 30-day loan term.

The court record does not indicate how the company found itself in such dire circumstances, or how it was reduced to such a lender of last resort.

Carson took over the company on December 1, 2021, following the retirement of longtime company principals, Hersh Singer and Jim Dannemiller, Pacific Business News reported at the time.

PBN provided a brief profile of Carson.

Prior to joining SMS, Carson has held management, sales, sales-engineering, and consulting roles in Silicon Valley, Washington D.C., and responsibilities for the North American and Latin American markets for the last 16 years. This included working with tech companies such as IBM, RSA Archer and SAI Global. Carson started his career working for U.S. Representative Patsy T. Mink and U.S. Representative Ed Case in Washington D.C. where he gained a deep understanding and appreciation of research and evaluation. Carson is a graduate of Punahou School and he received his B.A. from the University of Oregon.

Fichtman reported the company was awarded eight public contracts valued at $4.58 million from 2021 to 2023. It is not clear whether any of the contracted work was incomplete at the time the company folded.