Two Arrested in Connection With Utah-Based Business Opportunity Fraud Venture
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Two individuals charged in connection with the operation of a fraudulent business opportunity scheme were arrested today following their indictment by a Miami federal grand jury on Oct. 21, 2008, the Justice Department and the U.S. Postal Inspection Service announced. According to the charges, Gold Star Vending Inc. purported to sell table top shooter machines, along with assistance in establishing, maintaining and operating a businesses involving the machines. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.
Michele Benitez of Titusville, Fla., and George Hustus of Miami who have been apprehended were indicted for their involvement in the Utah corporation that had connections to Miami. Small Business Also charged were Robert Nicol and Andrew Vogen of Salt Lake City. Gold Star Vending sold business opportunities from approximately May 2005 to January 2007. All the defendants were charged with conspiracy and with committing their offenses via telemarketing. Nicol also was charged with three counts of wire fraud.
The business opportunity sold for a minimum price of approximately $8,000. According to the indictment, Gold Star Vending told potential purchasers that independent firms would find locations, such as restaurants, Small Business in which to place the machines. The company also told potential purchasers that, if they invested, they would earn substantial profits when members of the public fed quarters into the table top machines. Gold Star Vending salespeople referred potential purchasers to references who, according to the indictment, told false tales of their success as business opportunity owners.
Tags: based business opportunity, business opportunity fraud, crackdown, gold star, indictment, postal inspection service, salespeople, salt lake city, substantial profits, titusville fla, utah corporation, wire fraud