Kenneth Levin, Vending Machine Business Opportunity Scheme, New York 2011

Seven individuals, including KENNETH LEVIN, the owner of a company that sold lucrative vending machine business opportunities, and six employees of the company, were charged in connection with a nearly $9 million scheme that victimized at least 1,300 consumers across the country.

The indictment alleges that the defendants perpetuated a scheme to defraud more than 1,000 consumers by making material misrepresentations in an effort to induce those consumers to invest thousands of dollars in purported vending machine business opportunities.

According to the allegations, the defendants falsely promised customers that if they purchased packages of five or ten vending machines, the customers would be provided access to pre-established, high-profit locations for the machines, and would be connected with experienced locators, who would facilitate placing the vending machines in those pre-determined locations.

However, there were no pre-determined locations available, locators were inexperienced and ill-equipped to find profitable locations for the vending machines, and the Business Opportunity Companies delivered little or no follow-up service or assistance to their customers.

The defendants also misled prospective customers about the profits customers could earn from the machines, assuring them that they would earn significant profits from the vending machines in a relatively short period of time.

Defendant KENNETH LEVIN, along with TAYLOR LEVIN, SEARS HOBBS, JONATHAN CAMPBELL, and STEPHEN FRIEDMAN, were taken into custody earlier this morning and will be presented before U.S. District Judge Katherine B. Forrest.

Defendants MARCEL HARRIS and JAMES CONLEY remain at large.

The indictment charges the defendants with conspiracy, mail and wire fraud, and the sale of unregistered securities. The scheme resulted in losses of approximately $9 million to victims across the country.

Defendant Information:

Defendant Name: KENNETH LEVIN, TAYLOR LEVIN, SEARS HOBBS, JAMES CONLEY, MARCEL HARRIS, STEPHEN FRIEDMAN, JONATHAN CAMPBELL

Criminal Charges: Conspiracy, mail and wire fraud, sale of unregistered securities

City and State: New York

Exact Date: January 2005 to December 2011

Sentence or Outcome: Arrested and to be presented before U.S. District Judge Katherine B. Forrest

Dollar Amounts: $9 million

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