Posted by Emily Nichols.
On November 5, 2015, six men were convicted on felony charges of fraud and conspiracy in the sale of vending machine business opportunities. All six of these men were from New York, and they were just six of the 22 individuals convicted with this vending machine scheme. Two of the men were convicted with conspiracy and six counts of fraud and one count of false statement to federal agents. The third man was convicted on conspiracy and mail fraud. Two of the men were convicted of conspiracy and wire fraud and the final man was convicted of conspiracy and two counts of wire fraud.
They were convicted following the six week trial where some of the men will be in jail for 40 years according to their maximum sentence for conspiracy, fraud counts and false statements. These six men, were the last of the 22 convicted for the entire Vendstar scheme.
The company not only advertised nationwide on the internet and in newspapers, but they also promised to have the full package for the customer, saying that they would provide everything to operate the vending machine including the initial supply of candy for the machine. Once the machines were ordered, they dropped the machine off to the businesses wherever and however they could, not placing the machine in any certain place, and many businesses requested immediate removal of the machine. The men attempted to sell vending machines to businesses and promised them that they would make loads of money off of the machines and the customers would pay tens of thousands of dollars to invest in the machines. Between the five years of the operation of the scheme, it cost consumers a total of around $60 Million. If the customer paid an average of $10,000, then there were about 6,000 victims of this scheme once it was all said and done.
These men, I feel, were convicted correctly of their crimes and deserve to be in jail for what will most likely be the rest of their lives as the men were all above the age of 40, three of them being over the ae of 55. In the entirety, just 22 people cause a loss of $60 Million to consumers and businesses.
Emily is an accounting and finance major at the Stillman School of Business, Seton Hall University, Class of 2019.