Kerry Michael Deevy, Business Opportunity Fraud, Florida 2011

Kerry Michael Deevy, a Canadian citizen, pleaded guilty to 13 counts of business opportunity fraud in the U.S. District Court for the Southern District of Florida in Miami.

Deevy was charged with one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and nine counts of wire fraud, according to the Justice Department and the U.S. Postal Inspection Service.

The indictment alleges that Deevy and his co-conspirators operated a series of fraudulent business opportunities, including vending machine and greeting card business ventures.

Deevy was arrested in Costa Rica in February 2012, following his indictment by a federal grand jury in Miami on November 29, 2011. He was extradited to the United States for prosecution.

As a fronter and reference for Cards-R-Us Inc., Premier Cards Inc., and Nation West Distribution Company, Deevy fraudulently induced purchasers in the United States to buy business opportunities, which cost thousands of dollars each, with most purchasers paying at least $10,000.

The companies made numerous false statements to potential purchasers, including promises of substantial profits, guaranteed minimum sales, and high-traffic locations for merchandise stands.

Deevy’s guilty plea is the ninth conviction in the United States in connection with the business opportunity fraud ventures based in Costa Rica.

“Fraudsters must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the schemers conduct their fraudulent operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida.

Deevy participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States, when in reality, Deevy operated out of Costa Rica.

The companies employed fronters, closers, and references to sell the business opportunities, and locators to secure high-traffic locations for the merchandise stands.

Deevy’s case is part of the government’s continued nationwide crackdown on business opportunity fraud.

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