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Colorado Couple Sentenced in $5 Million Vending Machine Scam
Gary Luckner, 41, of Highlands Ranch, Colorado, was sentenced to 90 months in prison for leading a $5 million vending machine scam that targeted over 400 people nationwide. Luckner was ordered to pay $4,524,456 in restitution.
Luckner’s partner in crime, Richard Black, 52, of Arcadia, California, was sentenced to 97 months in prison and was ordered to pay $5,066,456 in restitution. The two men operated the scam from 2007-2009, promising victims that they would make a profit from vending machines that dispensed highly caffeinated energy chews and energy shots.
The scam was run through various telemarketing sales rooms, including American Vending Systems, which was located in Centennial, Colorado. Sales representatives lied to victims about the likely profits they would make, the quality of locations for the vending machines, and the level of customer service they would receive.
Black and Luckner used phony ‘references’ to persuade victims to buy, with Black even using an alias to claim he was a successful vending route owner. However, most of the victims never made any money and lost their entire investment.
In addition to Luckner and Black, four other defendants were convicted as part of the same scheme. Trey Friedmann, 46, of Denver, was sentenced to two years in prison and was ordered to pay $465,734 in restitution. Louis J. Gubitosa, 63, of Littleton, Colorado, was sentenced to 18 months in prison. Henry Melvin Hendrix, 48, of Galt, California, was ordered to serve five years of probation, including eight months of home confinement. Jennifer Putnam, 33, of Bluffton, South Carolina, was sentenced to five years of probation, including eight months of home confinement.
The victims of the scam were ‘heartbroken’ and ‘lost their hard-earned money’ due to the defendants’ lies, said Tony West, Assistant Attorney General of the Justice Department’s Civil Division. The U.S. Attorney for the District of Colorado, John Walsh, stated that ‘prosecuting perpetrators of financial fraud is a top priority’ and that ‘victims of these crimes are real people who have lost their hard-earned money.’
The U.S. Postal Inspection Service worked diligently to protect citizens from being victimized by the scam. The scam was run through the mail, and the agency’s agents worked to uncover the scheme and bring the perpetrators to justice.
Key Facts
- State: Colorado
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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