I'm looking for some second opinions on this one.  In talking with another SEO, he is of the opinion that if my company name is two words like Crazy Man, I should write some news release that have my brand combined as Crazyman because it is a variant of the brand name.  He claims that Google does not look at my brand as Crazy Man, but as one word and in Google's mind Crazyman as one word is my brand.

What do you all think?

Sorry Eran, I'll try to address this more specifically:

1. As part of their plan they want to submit our site to a large list of link directories (First red flag),
2. and we're not sure if that's a good option (trust your gut).
3. As far as we know, those directories have been ineffective for a long time now (correct)
4. and we're wondering if there is the chance of getting penalized by google (small chance)
5. When I asked the agency their opinion about that, they gave me the following answer -
6. Updated and optimized by us - We are partnered with these sites and control quality of these sites. (second red flag)
7. Unique Class C IP address - Links from unique Referring Class C IP plays a very important role in SEO. (third red flag, trying to game the system is never good.  You'll eventually get caught.)
8. Powered by high PR backlinks (I love buzzwords)
9. Domain Authority (DA) Score of over 20 (Buzzwords are often code for, "as management, I'm trying to sound like I know what I'm talking about and I hope you can't see through me")
10. These directories are well categorized. (So are grocery stores...so what?)

So they actually control those directories themselves, which we think is even worse (it is). I'm wondering what does the Moz community think about link directory submission (sorry, I'm not the community, just a member of it so I can't speak for all of them) - is there still something to be gained there (not really), is there any risk involved (very little), etc (not really sure what you are looking for specifically here, but hope my answers help.)

Typically you can trust that gut feeling that says, if it doesn't sound right, it probably isn't.

My guess is that this firm has a flat rate that they charge and they guarantee x number of links built per month.  I'd shy away from a strategy like that.

I don't feel that you can say all link directories are bad, but I wouldn't spend much, if any, time building links in that manner.  Not sure how much you are paying for their services, but I'd probably take the $200-$400 a month and hire some content creators, a social media manager, or something that has more value.