InterNACHI's suit against PHIC and Joe Kelly update page.

UPDATE August, 2007:  InterNACHI sues PHIC again.
UPDATE January, 2006:  Court overrules PHIC and orders them to respond.
UPDATE August, 2005:  PHIC gets hit with Dragonetti Action.
UPDATE July 20, 2005:  PHIC runs away from InterNACHI in court.
UPDATE July 1, 2005:  Judge strikes down PHIC.
 
 
PHIC's scam and InterNACHI's PA Compliance
by Nick Gromicko
 
For some time there has been a scam being perpetrated on consumers and home inspectors.  The scam was set up by two ASHI members Joe Kelly and Jack Milne.  In fact, PHIC is nearly all ASHI.  Jack and Joe are carpetbaggers (from an out-of-state association headquartered In Illinois). 
Now don't get me wrong, this is not ASHI-bashing.  I like ASHI.  ASHI and InterNACHI generally agree on all issues with respect to the home inspection industry, in spite of our few disagreements being widely over publicized.  And with one major exception, that being the dumping issue (see * below) that results in all home inspectors being underpaid, I have very few problems with ASHI.
*ASHI Dumping:  ASHI allows unqualified people in our industry by permitting them to join as "associates" with no requirements other than a $$$.  You can join online in less than 30 seconds with nothing but a valid credit card. Read: https://www.homeinspector.org/join/application/default.aspx  As if this isn't bad enough, ASHI then encourages those newbie associates to go out and do 250 unqualified inspections for poor, unsuspecting consumers as the only way to become full members.  This of course is bad for consumers, but it has a horrible consequence to our industry.  You see these candidates in an effort to get their 250 inspections in, drop their prices, which makes it difficult for existing home inspectors to raise their prices.  Home inspectors charge far too little for their services but not because we are stupid, but because of ASHI dumping cheap-charging, desperate to get thier inspections in, unqualified newbies into our markets.  Click here to view InterNACHI's entrance and membership requirements.  ASHI's come only with cash program is nothing short of a diploma mill.  And their full membership requirements require the passing of only one minimum-standard, beginners exam (NHIE).  It is the very same exam used by many states to license newbies fresh out of school.  The exam has a 70% passing cut-off score.  An exam taker can almost guess 1 question wrong for every 2 right and still pass.  Unbelievable! 
Having voiced my major complaint with ASHI (sorry, I couldn't help myself), and having declared that I like ASHI and think they are a fine association overall, let's move on to this PHIC/Joe Kelly scam.
PHIC is a fake organization with a fake website.  I use the word "fake" for two reasons:
    1.  PHIC is fake because PHIC stands for Pennsylvania Home Inspectors Coalition.  PHIC is not a "coalition" at all for the following reasons:
a.  You cannot have a coalition with only two local ASHI chapters and one NAHI chapter. 
b.  You cannot have a coalition when there are no non-ASHI/NAHI members as members.
c.  You cannot have a coalition when you only have a handful of members.
d.  You cannot have a coalition when you represent less than 1% of the inspectors in the state.
e.  You cannot have a coalition when you don't include the eight other national associations that qualify in PA.
 f.  You cannot have a coalition without the world's, the country's and the state's largest association, InterNACHI... with 591 InterNACHI members in PA alone.
2.  PHIC is fake because it lies on it's website.
PHIC says on it's website quote "National Home Inspection Organizations Recognized by PA:" unquote, and of course only lists their own associations.  This is a lie.  Furthermore the State of Pennsylvania does not "recognize" any associations.  In fact PA does not license home inspectors or regulate home inspection associations at all. The PA law makes no mention of PHIC, no mention of ASHI, no mention of NAHI, no mention of InterNACHI, no mention of ramp up fees, no mention of ride-a longs, and no mention of mentoring.
 
PHIC says on it's website that InterNACHI "is" not PA compliant.  This is also a lie.  PA's Act 114 does not regulate home inspection associations, nor does it determine compliance, nor does it "recognize" home inspection associations.  It merely offers a definition of national home inspection associations. 
PHIC's two prong scam:
1.  PHIC tries to use false information to trick unsuspecting inspectors into thinking they have to work for Jack Milne and Joe Kelly for free, and even worse... have to pay to work for them for free.  PHIC lies to them telling them they have to join PHIC, that they have to pay Jack Milne and Joe Kelly for what they call "mentoring fees", that they have to pay for what they call "ramp up fees", that they have to continue to pay even after they perform the required 100 inspections, and that they have to lease their inspection agreement for $750.00 a year.  See PHIC's own website.   It's mentioning of having inspectors work for them for free while all along paying them $51.00 per inspection is a clear violation of Federal Anti-Trust laws.  They may try to remove the page or edit it after this article goes out so I have a copy here.     Regardless, it clearly reveals their indentured-servitude scam.    Many inspectors have been snookered out of their hard earned money already.  Follow their money!... right to Jack & Joe.
 
2.  PHIC tries to create a monopoly to the detriment of consumers, REALTORs, inspectors, and homebuyers by pointing local governments to their fake organization and lie-ridden website.  Recently, they were nearly successful at locking out InterNACHI members from the City of Reading.  The current ordinance has been rewritten to help end the City of Readings unwitting participation in this scam.
 
PHIC has already snookered fellow inspectors out of their money and tried to lock others out of certain markets, so PHIC can't deny.  PHIC is made up of carpetbaggers (out-of-state) organizations that came into our state headquarters to try to displace Pennsylvania inspectors and steal their hard earned money. 
 
"A lie can travel halfway around the world (or at least Pennsylvania) while the truth is putting on its shoes." -Mark Twain
 
Other Joe Kelly/Jack Milne/PHIC lies:
1.  InterNACHI is not non-profit.  LIE!
InterNACHI has always been a non-profit organization.  Furthermore InterNACHI is also Federally tax-exempt, something a corporation could not be if it wasn't also non-profit.
 
 
2.  InterNACHI does not have members in 10 states.  LIE!
InterNACHI is the largest home inspection association in PA, the U.S. and the world.  In fact InterNACHI is the only home inspection that actually lists its entire membership on an open website for all to see.  Other associations use ambiguous geographic searches so no one can ever see of verify their member list.  InterNACHI has members in all 50 states, Canada, D.C, the islands, and 65 countries abroad.
 
3.  InterNACH is not the biggest and best home inspection association in the world.  I dare, no... I double dare any reader to carefully scroll through the links in:
 
 
InterNACHI is far larger and better than all these other out-of-state (carpetbagger) associations combined.  Even ASHI agrees that InterNACHI is the largest:
 
 
 
 
Thanks for your attention.
 
Nick Gromicko
 
 
P.S.  I have written ASHI asking them to expel Joe Kelly and Jack Milne from their otherwise fine association.  As of yet, they are still members.
 
 
 
ACTUAL PA LAW