Federal, State Agencies Target Bogus Businesses

The California Department of Corrections, several federal agencies and ten states, including Indiana, are launching a sweep to stop bogus business opportunities and work-at-home scams. The Federal Trade Commission says if a business opportunity promises no risk, little effort and big profits, it is most likely a scam.

InsideIndianaBusiness.com Report
December 13, 2006

Federal, State Agencies Target Bogus Businesses
The California Department of Corrections, several federal agencies and ten states, including Indiana, are launching a sweep to stop bogus business opportunities and work-at-home scams. The Federal Trade Commission says if a business opportunity promises no risk, little effort and big profits, it is most likely a scam. Businesses in Indiana that have been targeted include an online company, a candle company and a health care business.

STATE ENFORCEMENT LIST

Arizona
1. The Results Group, LLC, Edward Longoria, Amber Halverson, Arizona parties, lawsuit filed alleging violations of Arizona Consumer Fraud Act, Arizona Attorney General (11/29/06)

California
2. Imergent, Inc., Stores Online, Inc., and Galaxy Mall, Inc., Stipulated Final Judgment and Permanent Injunction, Delaware and Wyoming parties, California Attorney General (9/13/06)

3. Vend Direct, Vending Services of America and Gary Luckner, lawsuit alleging violations of California’s business opportunities statutes and unfair and deceptive business practices, Colorado parties, California Attorney General (12/11/06)

4. The Pet Pantry International, Inc. and Pet Products Delivery, Inc., Nevada parties, Desist and Refrain Order, California Department of Corporations (4/3/06)

5. Golden Bridge Coffee, Inc. and Jainn Hwa Wang, California parties, Amended Desist and Refrain Order, California Department of Corporations (11/3/06)

6. Allerca, Inc. and Simon Brodie, California parties, Desist and Refrain Order, California Department of Corporations (11/2/06)

7. Integrative Bio Health Management, Inc., IBHM, Inc., d/b/a 5R Health, Jong Ki Kim, Jong Hag Kim, California parties, Desist and Refrain Order, California Department of Corporations (9/13/06)

8. Eureka Education, Inc., and Taesuk “Andrew” Lee, California parties, Desist and Refrain Order, California Department of Corporations (7/20/06)

9. Beyond Juice d/b/a Beyond Juice, Inc., O.L.D., Inc., David Funk, Sally Kline, Morrie Friedman, Nevada parties, Desist and Refrain Order, California Department of Corporations (4/28/06)

10. Ads Unlimited, Inc., d/b/a Welcome To the Neighborhood, Benjamin Gilbert, Kid Sodhi-Gilbert, California parties, Citation of $2,500 and Desist and Refrain Order, California Department of Corporations (8/14/06)

11. The Cure Service Group, Inc., Lisa Bongi, Rick Stonell aka Rick Stowell, California parties, Order Denying Effectiveness of current Franchise Registration Application and Revoking Current Franchise Registration, Desist and Refrain Order, California Department of Corporations (4/5/06)

12. Laurent Perron d/b/a The Margarita Man, Texas party, Desist and Refrain Order, California Department of Corporations (12/6/06)

Connecticut
13. Candy King, Stanley Gladstone, Consent Order, permanent C&D, administrative fine of $25,000 against Candy King and $7,500 against Gladstone, Candy King barred for five years from offering biz ops in Connecticut, Candy King must offer rescission for approximately $100,000 to affected Connecticut purchaser-investors, Gladstone barred for five years from acting as an officer or director of any entity selling biz ops in Connecticut, Florida parties, Department of Banking, Securities & Investments Division (4/26/06)

14. Tax Recovery Group, Inc., permanent C&D from sales of unregistered tax service biz ops and notice of intent to fine issued, Colorado party, Department of Banking, Securities & Investments Division (5/19/2006)

15. Regal Nails, LLC, Stipulation and Agreement, payment of $3,000 fine for unregistered business opportunity sales in Connecticut, Louisiana party, Department of Banking, Securities & Investments Division (11/28/06)
Florida

16. On-Site Corporation, Settlement Agreement, administrative fine of $3,000, Idaho party, Florida Department of Agriculture & Consumer Services (6/9/06)

17. Global Resources, Inc., Stewart Pope, default judgment, injunction, judgment of $960,000.00 (plus court costs), Florida parties, Florida Department of Agriculture & Consumer Services (6/13/06)

18. American Cash Machine, LLC, Settlement Agreement, payment of $2,000, Florida party, Florida Department of Agriculture & Consumer Services (6/21/06)

19. Energy Automation Systems, Inc., Settlement Agreement, payment of $2,000, Tennessee party, Florida Department of Agriculture & Consumer Services (6/28/06)

20. Crown Beverage Systems, Informal Settlement Agreement, payment of $1,000, Ontario, Canadian party, Florida Department of Agriculture & Consumer Services (8/24/06)

21. U.S. Vend Technologies, LLC, a/k/a Vend-It-All, a/k/a U-Turn, Settlement Agreement, payment of $500.00, Idaho party, Florida Department of Agriculture & Consumer Services (10/5/06)
Indiana

22. Global Venture, default judgment entered on January 9, 2006, permanent injunction against defendants and employees prohibiting conduct in violation of Indiana Business Opportunity Transactions Act and Indiana Deceptive Consumer Sales Act, payment of $17,647, cancellation of defendant’s business opportunity contract with the Sheryl E. Stutz Trust, Florida party, Indiana Attorney General’s Office

23. Imergent/Stores On Line, lawsuit filed on January 13, 2006 for violations of Business Opportunity Transaction Act and Indiana Deceptive Consumer Sales Act, for injunctive relief, restitution, and other relief, Utah party, Indiana Attorney General’s Office

24. Sunshine Candle Corp, lawsuit filed on February 10, 2006 for violations of the Indiana Business Opportunity Transactions Act and the Indiana Deceptive Consumer Sales Act, for injunctive relief, restitution, and other relief, New York party, Indiana Attorney General’s Office

25. Holiday Enterprises & Holiday Ink, lawsuit filed on August 9, 2006 for violations of the Indiana Business Opportunity Transactions Act and the Indiana Deceptive Consumer Sales Act, for injunctive relief, restitution, and other relief, Georgia parties, Indiana Attorney General’s Office

26. Nelson Baker d/b/a Sparetime Enterprises, Consent Judgment entered on August 11, 2006, consumer restitution of $2,390 and $300 costs, contract between Defendant and Peter and Reeta Willis declared void, Ohio party, Indiana Attorney General’s Office

27. People’s Health Choice, Inc., Consent Judgment entered on August 25, 2006, costs of $872.15, consumer redress of $1,127.85, contract between defendant and Shirley Baker declared void, California party, Indiana Attorney General’s Office
Kentucky

28. Tosh Farms, LLC, Tosh Farms General Partnership, Pig Palace, LLC, and Shiloh Hills, LLC, Assurance of Voluntary Compliance, Tennessee party, Kentucky Attorney General’s Office (9/13/2006)

29. National Snack Products, Inc. and Dennis Roberts, TRO issued against defendants to cease from offering business opportunities in Kentucky and refrain from destroying or concealing records or assets, Minnesota parties, Kentucky Attorney General’s Office (10/20/06)

Louisiana
30. Dreamlife, LLC, d/b/a Power Plus MPG and Dreamlife Products, and Brent Holland, Petition for Injunctive Relief, Louisiana parties, Louisiana Attorney General’s Office (12/6/06)
Maryland

31. Coffee Beanery, Ltd. and Kevin Shaw, Consent Order, Michigan parties, Maryland Attorney General’s Office, Securities Division (9/12/06)

32. Aussie Pet Mobile, Consent Order, California party, Maryland Attorney General’s Office, Securities Division (1/25/06)

33. Carpet Network, Inc., Consent Order, New Jersey party, Maryland Attorney General’s Office, Securities Division (2/9/06)

34. Emerald Coast Mfg., Inc., dba Java Jo’z Coffee, Agreement, Florida party, Maryland Attorney General’s Office, Securities Division (2/10/06)

35. Humitech Franchise Corp., Consent Order, Texas party, Maryland Attorney General’s Office, Securities Division (2/28/06)

36. Online Outpost Licensing Corp., Agreement, Florida party, Maryland Attorney General’s Office, Securities Division (2/28/06)

37. KaBloom Franchising Corp., Consent Order, Massachusetts party, Maryland Attorney General’s Office, Securities Division (3/16/06)

38. Daily Grind of Winchester, Inc., Agreement, Virginia party, Maryland Attorney General’s Office, Securities Division (3/29/06)

39. Multicorp Franchising, Inc., Consent Order, Maryland party, Maryland Attorney General’s Office, Securities Division (4/7/06)

40. The Dale Group, d/b/a Blind Brokers Network, Consent Order, California party, Maryland Attorney General’s Office, Securities Division (4/24/06)

41. Commercial Property LLC and William Stredney, Arizona parties, Consent Order, Maryland Attorney General’s Office, Securities Division (5/1/06)

42. Mailcoups, Inc., d/b/a Supercoups, Consent Order, Massachusetts party, Maryland Attorney General’s Office, Securities Division (5/16/06)

43. A Nanny on the Net, Consent Order, North Carolina/Virginia party, Maryland Attorney General’s Office, Securities Division (5/22/06)

44. Champion Child, Inc., d/b/a Stretch-N-Grow, Consent Order, Florida party, Maryland Attorney General’s Office, Securities Division (5/23/06)

45. Quiznos Franchising, LLC and Quiznos Franchising II, LLC, Consent Order, Colorado parties, Maryland Attorney General’s Office, Securities Division (7/27/06)

46. Lady of America Franchise Corp. and Charles Cavuoto, Order to Show Cause, Florida parties, Maryland Attorney General’s Office, Securities Division (8/4/06)

47. GNC Franchising, LLC, Consent Order, Pennsylvania party, Maryland Attorney General’s Office, Securities Division (8/15/06)

48. Coffee Heaven, LLC and James “Jay” Cummings, Final Order to Cease & Desist, Florida parties, Maryland Attorney General’s Office, Securities Division (8/16/06)

49. Midwestern Enterprises, Inc., d/b/a InkRX and InkRX.com, Consent Order, Wisconsin party, Maryland Attorney General’s Office, Securities Division (9/21/06)

50. Teen Golf Adventures, LLC, d/b/a Total Golf Advertures, Consent Order, California party, Maryland Attorney General’s Office, Securities Division (11/1/06)

51. United Business Solutions, Inc., d/b/a UBS Group, Order to Show Cause, Iowa party, Maryland Attorney General’s Office, Securities Division (10/5/06)

52. Slim and Tone, LLC, Consent Order, Pennsylvania party, Maryland Attorney General’s Office, Securities Division (11/29/06) Texas

53. Bio Performance, Inc. and Lowell Mims and Gustavo Romero, Petition for Temporary Restraining Order, Temporary Injunction and Permanent Injunction and Asset Freeze, Texas parties, Texas Attorney General’s Office, Consumer Protection & Public Health Division (May 17, 2006)

Washington
54. Smart Advertising, Inc. and Brad Lober, Final Order to Cease & Desist, Arizona parties, Department of Financial Institutions, Securities Division (5/18/06)

55. Press-A-Print International, LLC and Brent Overfelt, Consent Order to Cease & Desist, Idaho parties, Department of Financial Institutions, Securities Division (10/11/2006)

56. Global Resources, Inc., Stuart Pope, and John Maginnis, Statement of Charges, Florida and Washington parties, Department of Financial Institutions, Securities Division (10/23/2006)

57. Holiday Enterprises, Inc., Richard J. Morrell aka Nick Morrell, Andrew DeVoe, and Sherri Albano, Statement of Charges, Georgia and Florida parties, Department of Financial Institutions, Securities Division (11/22/2006)
Wisconsin

58. Keith Walls and David Riley, Summary Order of Prohibition and Revocation of Exemptions, Arizona parties, Department of Financial Institutions (6/22/06)

59. Accutax LLC, Consent Order of Prohibition, Arizona party, Department of Financial Institutions (7/13/2006)

60. DEI Franchising Systems, Inc., Summary Order Revoking Registration, New York party, Department of Financial Institutions (7/13/2006)

61. Fastbucks Franchise Corp., Summary Order Revoking Registration, Texas party, Department of Financial Institutions (9/12/2006)

62. Garagetek, Inc., Summary Order Revoking Registration, New York party, Department of Financial Institutions (5/15/2006)

63. Midwestern Enterprises and Adrian Anderson, Consent Order of Prohibition, Michigan parties, Department of Financial Institutions (5/15/2006)

64. UBS Group, Inc. and Johnathan Ahlf, Summary Order of Prohibition, Iowa parties, Department of Financial Institutions (6/22/2006)

http://ftc.gov/os/2006/12/StateEnforcementActions.pdf


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