Investors burned in Krispy Kreme franchise scam

"We now have been able to find 13 people who paid out more than a million dollars to this suspect, and we believe there are more victims out there who have yet to come forward," says Const. Tim Shields. Police say the man used the name "William (Bill) Francis Myles," and made his "investors" sign a confidentiality agreement not to talk to the Krispy Kreme head office.

www.myTelus.com
May 5, 2004

Investors burned in Krispy Kreme franchise scam

VANCOUVER (CBC) - Some B.C. investors who thought they had purchased a Krispy Kreme franchise now find themselves in a financial hole.

Surrey RCMP say a man had been using the Krispy Kreme name to sell franchises – in Mexico and in B.C. – that weren't his to sell.

"We now have been able to find 13 people who paid out more than a million dollars to this suspect, and we believe there are more victims out there who have yet to come forward," says Const. Tim Shields.

Police say the man used the name "William (Bill) Francis Myles," and made his "investors" sign a confidentiality agreement not to talk to the Krispy Kreme head office.

West Vancouver restaurant owner Kamal Mroke had thought he was in negotiations for a Krispy Kreme outlet, and had invested more than $250,000 US.

But that changed when a realtor helping him find land for the outlet sounded the alarm. “And the lady said, ‘You know, something fishy is going on’,” says Mroke.

He then called Krispy Kreme, but instead got a call back from the FBI telling him the money he thought he had invested had gone to a scam artist.

Krispy Kreme has little to say about the scam. Its message, through a local publicist is – it’s not the first time this has happened and there’s nothing they can do about it.

In mid-April, the suspect was deported to the United States when it was determined he had an outstanding warrant for his arrest for fraud in Illinois.

Charges are pending locally in connection with the Canadian scam.

the CBC, 2003


Brought to you by WikidFranchise.org

Risks: Confidence, Federal Bureau of Investigation, FBI, Fraud, Development agents, Gag order (confidentiality agreement), Outright scam, Royal Canadian Mounted Police, RCMP, Canada, United States, 20040505 Investors burned

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License