could this happen in the UK?

[bigbucks]

WEST ISLIP, NY--Friday, November 6 -- A jury in Central Islip, New York, convicted six men yesterday on felony charges of conspiracy and fraud in the sale of candy vending machine business opportunities, the Department of Justice announced.

Edward Morris "Ned" Weaver, 42, of Perrysburg, Ohio, and Lawrence A. Kaplan, 57, of Brooklyn, New York, were convicted of conspiracy, six counts of fraud and one count each of making false statements to federal agents during a related criminal investigation. Scott M. Doumas, 43, of East Setauket, New York, was convicted of one count of conspiracy and one count of mail fraud. Richard R. Goldberg, 43, of Bay Shore, New York, and Richard Linick, 73, of Coram, New York, were each convicted of conspiracy and one count of wire fraud. Paul E. Raia, 64, of Brookhaven, New York, was convicted of conspiracy and two counts of wire fraud.

The convictions followed a six-week trial before U.S. District Court Judge Joan M. Azrack in federal court in the Eastern District of New York. Each of the defendants faces a statutory maximum sentence of 10 years in prison on the conspiracy count and 25 years in prison on the fraud counts. Weaver and Kaplan face a statutory maximum sentence of five years in prison on the false statements charges.

"These defendants promised their victims the American dream, but knew that what they in fact were offering was a worthless business opportunity," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department's Civil Division. "The Department of Justice will continue to prosecute those who seek to scam out of everyday Americans the hard-earned money in their retirement accounts and life savings."

According to evidence presented at trial, managers, sales representatives and operators of "locating companies" associated with Multivend LLC, d/b/a Vendstar, made material misrepresentations about the profits customers would make from bulk candy vending machines. During the telemarketing calls, Vendstar's sales representatives falsely claimed to operate their own profitable vending machine businesses.

Additional evidence at trial described how Vendstar advertised nationwide in newspapers and on the Internet. Vendstar sales representatives promised to provide consumers with everything they needed to operate a successful business, including vending machines, an initial supply of candy, assistance in finding locations for the vending machines, training and ongoing customer assistance. The locating companies who worked with Vendstar to close deals had no special skills, tools or expertise in finding locations and generally placed consumers' machines wherever they could as quickly as they could, often in businesses that had not consented to housing the machines and that soon demanded that the machines be removed. The vending machines generated little business and Vendstar's customers lost all or nearly all of their investments. The typical customer paid about $10,000 for the business opportunity.

Prior to this trial, 16 other Vendstar managers, Vendstar sales representatives and locating company operators pleaded guilty to federal felony charges for related conduct at Vendstar. Evidence presented at trial established that from 2005 to 2010, the Vendstar scheme cost consumers $60 million.

Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for their investigative efforts. The case was prosecuted by Trial Attorneys Patrick Jasperse and Alan Phelps of the Civil Division's Consumer Protection Branch.

SEE ALSO:

Judge Orders Jail Time For Two Vendstar Defendants

- See more at: http://www.vendingtimes.com/ME2/dirmod. ... q7tvN.dpuf

[Siting Services]

YES it can and YES it has!

We met an individual about 25 years ago who was selling condom machines with promises of high yields, sited vendors and protected areas. We did not get involved thankfully. He was given a custodial sentence for misleading, selling sited vendors to several operators at the same time all of whom lost their money. He had bodyguards to protect him and the vending operator had no chance of getting their money back. He was conducting himself in a fraudulent manner to extract monies and misrepresenting a business model.


Barbara

[Snackmore]

Google Beck Vending!

I got started on the back of a guy selling me his Pringle towers for next to nothing having lost ten grand with them

[Siting Services]

I remember Beck Vending, selling Towers for £1k each! Blue Star Vending were another one, then Self Leisure were also selling Towers for £1k each.

[Quinch]

How could they get away with charging so much, were other suppliers like tubz vending/Hurleys etc not around then?

[Siting Services]

How could they get away with charging so much, were other suppliers like tubz vending vending/Hurleys etc not around then?

No they weren't at the beginning. The history is quite interesting when you do look back over the years. Those companies who did charge £1k per tower soon went out of business when the likes of Salysol, Bristol Merchants, Continental Snacks (tubz vending), TVR (Snack-a-Can) started to sell them and we introduced Franchising to vending then all hell broke loose! tee hehe The prices of the Towers have actually remained quite stable for a new one and there is now a very buoyant 2nd hand market for Towers which does enable expansion to happen a lot easier and quicker for the current tower vending operators out there today.

Barbara

[PGBrew]

Beck Vending had an UK exclusive on all Clenport Pringles for the first two years, I also talked to Autosnacks, Supersnacks. With Bluestar you had to pay £5 per year per machine, for life, on top of the machine purchase price! I bought my first 80 machines, all sited and with spare stock, from 'The Nut Vending Company' for about £350ea.

[Siting Services]

Beck Vending had an UK exclusive on all Clenport Pringles for the first two years, I also talked to Autosnacks, Supersnacks. With Bluestar you had to pay £5 per year per machine, for life, on top of the machine purchase price! I bought my first 80 machines, all sited and with spare stock, from 'The Nut Vending Company' for about £350ea.

Yes that's right about Beck Vending - didn't they 'mislead' saying they had the exclusive with Proctor and Gamble to sell the Pringles pots? Jamie who ran The Nut Vending Company did well for a short while until others came in the market and cut prices again. Those other companies you mention I remember too. Blimey I feel old ....

[mikeholness]

That's how I got into vending due to beck vending.
Went to a franchise exhibition at Gmex Manchester.

As said they wanted 10k for 10 machines.
I was very tempted at the time as their office in knutsford was 10 mins away.
Got put off by the constant phone calls saying pay up quick as somebody else might buy your area.
Thank god I didn't go ahead.
Have bought two lots of Pringles machines from becks operators in past who got ripped off.

Mike Holness
Topvend