Be honest. Don’t lie to people and say they failed something you never submitted. People have a right to be informed before they make a big decision to leave their current employer. Also, don’t be nasty to people when they politely call to inquire how things arrived to the point they did. You have some growing up to do. To say the very least, you need to learn how to be a more effective and better leader. It was shocking from the minute I met you to how things moved along that you were in charge. If you want things to get better you have to make better decision. Ask yourself why you can’t keep employees and why you can’t attract good ones. Be a leader and work with corporate to make changes. Your current employees who suffer due to your lack of leadership deserve it. Especially, don’t lie to people and say they failed a background when in fact you never submitted it. Grow up. Be a real leader.