Federal authorities are continuing to crackdown on business opportunity fraud and in the last several years has resulted in over 100 convictions in the Southern District of Florida alone.
The latest vending scam uncovered by authorities alleges that during telemarketing calls, managers, sales representatives and operators of locating companies associated with Multivend LLC (dba Vendstar) misrepresented the profits customers would make and the locations they would receive for bulk candy vending machines.
In addition to those allegations:
- Vendstar’s sales representatives falsely claimed to operate their own profitable vending machine businesses
- The vending machines generated little business
- Vendstar’s customers lost all, or nearly all, of their investments
- The typical customer allegedly paid about $10,000 for the business opportunity
Read the story: 10 Indicted In Bulk Vending Biz-Op Scam