Sean Rosales Arrested for Business Opportunity Fraud in Chicago

A dual United States and Costa Rican citizen, Sean Rosales, was arrested in Chicago on November 29, 2011 in connection with the operation of a series of fraudulent business opportunities. Rosales, along with his co-conspirators, allegedly sold beverage and greeting card business opportunities, including assistance in establishing, maintaining, and operating such businesses.

The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud. Before Rosales’ arrest, 11 other individuals were charged in connection with business opportunity fraud ventures based in Costa Rica. Seven of those other individuals have been convicted in the United States.

"Business opportunity fraud imposes significant financial hardship on innocent, hardworking victims who are simply trying to make better lives for themselves and their families," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. "The government will continue its push to prosecute those who defraud Americans to make a quick buck."

Rosales and his co-conspirators allegedly fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Powerbrands Distributing Company. According to the indictment, the business opportunities the defendant sold cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened.

The indictment alleges that Rosales, using aliases, 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. In reality, Rosales operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.

The indictment also alleges that the companies employed various types of sales representatives, including fronters, closers, and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities.

Rosales is currently facing charges. The case is ongoing.

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