OPERATION MISSED FORTUNE

List of Law Enforcement Actions as of Nov. 12*
(organized by state of defendants' principal business location)

ARIZONA:

Defendants: Global Assistance Network for Charities (GANC); Eileen Belcar, Cedrick Robles
Primary Location: Scottsdale (filed in Federal District Court in Phoenix)
Nature of Business: Marketed a fraudulent pyramid scheme on the Internet and in newspapers, purportedly to raise money for charity; members paid $70 plus a $50 monthly fee and were to earn money by recruiting new participants. Allegations: false earnings and refund claims.
Media Contact: FTC, Judith M. Nixon, 202-326-3710

see also: ILLINOIS, National Consulting Group

CALIFORNIA:

Defendant: Collectibles International, Inc.; Nick DiPaolo; Steve Yeager
Location: Laguna Niguel
Nature of Business: Sports card broker.
Media Contact: Illinois Attorney General's Office, Lori Corral, 312-814-2532

Defendant:  Destiny Telecomm International, Inc.
Primary Location: Oakland (also in the state of Oklahoma)
Nature of Business: An investigative subpoena has been issued regarding the sale of this multi-level marketing scheme involving prepaid calling cards.
Media Contact: Florida Attorney General's Office, Henry Gill, 904-922-9206; North Carolina Attorney General's Office, Christine Lanning, 919-715-2444

Defendants: Espresso Express International
Primary Location: San Diego
Nature of Business: Franchise -- espresso coffee bars in Lucky Supermarkets
Media Contact: California Department of Corporations, Bill McDonald, 213-736-3704

Defendants: Ignition Interlock Service Centers of California
Primary Location: Victorville
Nature of Business: Franchise for ignition locking devices that measure blood alcohol.
Media Contact: California Department of Corporations, Bill McDonald, 213-736-3704

Defendants: Kelly's Specialty Group, Inc. (Kelly's Coffee & Fudge Factory, or Kelly's)
Primary Location: Los Angeles
Nature of Business: Coffee and candy franchise.
Media Contacts: Maryland Division of Securities, Dale Cantone, 410-576-6368, or Frank Mann, 410-576-6357

Defendants: The Mentor Network, Inc.; and Parviz Firouzgar
Primary Location: Newport Beach and Irvine (filed in Federal District Court in Los Angeles)
Nature of Business: Marketed a fraudulent pyramid scheme via the Internet, purportedly to help needy children; members paid $30 a month and were to earn money by recruiting new participants. Allegation: false earnings claims.
Media Contact: FTC Seattle Office, Charles Harwood, 206-220-6350

Defendants: New Century Marketing, Inc., doing business as NCMI; Michael J. Mollenhauer, President
Primary Location: Visalia
Nature of Business: Pyramid.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

Defendants: Startronix International; Startronix, Inc.; Startronix On-Line, Inc.; Startronix Telcom, Inc.; Norman M, Shink, President
Primary Location: Irvine
Nature of Business: Pyramid scheme.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

Defendant: Strategies for Success
Primary Location: Smithtown
Nature of Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Tele-Card Network
Primary Location: Escondido
Nature of Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Wiz Technologies
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

FLORIDA:

Defendants: Adtech Financial, Inc., and Philip Pestrichello
Primary Location: Lighthouse Point
Nature of Business: Envelope stuffing scheme, wherein the initial solicitation does not disclose the true nature of the work to be performed or the refund policy, which consumers learn only after paying the initial fee.
Media Contact: Florida Attorney General's Office, Jody E. Collins, 954-712-4600

Defendant: American Marketing, Inc.
Primary Location: Merritt Island
Nature of Business: Business opportunity -- display racks for toys placed a various retail locations.
Media Contacts: Maryland Division of Securities, Dale Cantone, 410-576-6368, or Frank Mann, 410-576-6357

Defendant:  Candy Plus
Principal Location: Hollywood (also New York, NY)
Nature of Business: Business opportunity -- candy vending machines
Media Contact: Iowa Securities Bureau, Erica Brown, 515-281-4441

Defendant: Carousel Vending
Principal Location: Sunrise
Nature of Business: Business opportunity -- mint candy vending machines.
Media Contact: Iowa Securities Bureau, Erica Brown, 515-281-4441

Defendants: ComTel Commmunications Global Network, Inc.; Marc Zimmerman; Victoria Zimmerman; Eric Zimmerman; and Philip Berger
Primary Location: North Miami Beach (filed in Federal District Court in Fort Lauderdale)
Nature of Business: Offered pay telephone business opportunities for $12,756 - $41,320. Allegations include false earnings claims and Franchise Rule violations.
Media Contact: FTC, Sarah G. Reznek, 202-326-2213

Defendant: Consumer Auto Club
Primary Location: Pompano Beach
Media Contact: Washington Securities Division, Martin Cordell, 360-902-8760, or Kathy Champoux, 360-902-8731

Defendant: Hart Marketing
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

Defendants: Information Networking Group, Inc.
Primary Location: Fort Lauderdale
Nature of Business: Business opportunity involving the placement of "lead generator display boxes," into which consumers place entry forms for prizes; investors then sell the entry forms to long distance phone companies as leads.
Media Contacts: Maryland Division of Securities, Dale Cantone, 410-576-6368, or Frank Mann, 410-576-6357

Defendants: Majors Medical Supply, Inc.; Stuart Phillips; and Joanne Phillips
Primary Location: Boca Raton (filed in Federal District Court in Fort Lauderdale)
Nature of Business: Offered home medical equipment sales franchises, with territories selling for up to $35,000. Allegations include false earnings and start-up costs claims, and Franchise Rule violations.
Media Contact: FTC, Collot Guerard, 202-326-3338

Defendants: National Business Research Co, doing business as American Private Publications; Cabriel Slonimsky, and Martin Slonimsky
Primary Location: North Miami Beach
Nature of Business: Envelope stuffing scheme, wherein the initial solicitation does not disclose either the true nature of the work or the additional expenses consumers will incur, and consumers learn these only after paying the fee.
Media Contact: Florida Attorney General's Office, Jody E. Collins, 954-712-4600

Defendant: Netel Telecommunications and Technology
Primary Location: Fort Lauderdale
Nature of Business: Pyramid; home business opportunity.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

Defendants: Precision Communications Administration, Inc.; and Jeffrey Blayz
Primary Location: Orlando (filed in Federal District Court in Orlando)
Nature of Business: Offered pay-per-call business opportunities for $640 - $2,236. Allegations include false earnings and assistance claims.
Media Contact: FTC, Myra Howard, 202-326-2047

Defendant: Snack Right
Primary Location: Tampa
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770; Tennessee Attorney General's Office, Jennifer Rawls, 615-741-1020; California Attorney General's Office, Herschel T. Elkins, 213-897-2630

Defendants: SP Exclusive Lists, Inc.; SP Global, Inc.; and Ricardo Martinez
Primary Location: Miami
Nature of Business: Envelope stuffing scheme, wherein the initial solicitation does not disclose the true nature of the work, and consumers learn this only after paying the initial fee.
Media Contact: Florida Attorney General's Office, Jody E. Collins, 954-712-4600; Washington Securities Division, Martin Cordell, 360-902-8760, or Kathy Champoux, 360-902-8731

Defendants: Source International Distributors, Inc.
Primary Location: Clearwater
Nature of Business: An investigative subpoena has been issued to this business opportunity that sells surplus goods.
Media Contact: Florida Attorney General's Office, Henry Gill, 813-871-7828

Defendant: Tel-Touch Communications, Inc.
Primary Location: Boca Raton
Nature of Business: An investigative subpoena has been issued regarding the sale of this multi-level marketing scheme involving pre-paid calling cards.
Media Contact: Florida Attorney General's Office, Henry Gill, 813-871-7828

Defendant: US Payphone Distributors
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

GEORGIA:

Defendants: Georgia International Export Company, Inc., doing business as Creative Technologies International; L&S Manufacturing, Inc.; Andrew Gilmore; Steven Axelrod; Arnold Filner; and Wayne Gregory
Primary Location: Atlanta and Tucker (filed in Federal District Court in Atlanta)
Nature of Business: Offered business opportunties involving vending machines that dispense single use cameras and film; $14, 500 for three machines. Allegations include false earnings and location assistance claims, use of phony references, and Franchise Rule violations.
Media Contact: FTC, George Brent Mickum, IV, 202-326-3132; Maryland Division of Securities, Dale Cantone, 410-576-6368, or Frank Mann, 410-576-6357; Georgia Governor's Office of Consumer Affairs, Robin Schmidt, 404-656-1762

IDAHO:

Defendant: Ed Boehlke, doing business as Advantage Marketing Company
Primary Location: Pocatello (filed in Federal District Court in Boise)
Nature of Business: Offered guaranteed work-at-home jobs program for $38.95 lifetime fee, but delivered only a pamphlet listing company names, and consumers had to pay additional fees to receive start-up kits.
Media Contact: FTC Seattle Office, Charles Harwood, 206-220-6350

ILLINOIS:

Defendant: Financial Freedom Alliance, also known as FINAL
Primary Location: Morris
Nature of Business: Multi-level marketing scheme.
Media Contact: Illinois Attorney General's Office, Lorie Corral, 312-814-2532

Defendants:  National Consulting Group
Primary Location: Arlington Heights (also Mesa, Arizona)
Nature of Business: Business opportunity for electronic medical billing services.
Media Contact: Iowa Securities Bureau, Erica Brown, 515-281-444

Defendant: Travel Service Network
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

Defendants: Water Pure and Simple (also known as WPS Distributors)
Primary Location: Chicago
Nature of Business: Franchise for water purification systems.
Media Contact: Wisconsin Office of the Commissioner of Securities, David Cohen, 608-266-2801, or Bob Bonner, 608-266-0450;

IOWA:

Defendant: Home Business Technologies
Primary Location: Fairfield
Nature of Business: Sold a variety of home business opportunities.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

KANSAS:

Defendants: Parade of Toys
Primary Location: Overland Park
Nature of Business: Business opportunity for the selling and placement of toy racks.
Media Contact: Washington Securities Division, Martin Cordell, 360-902-8760, or Kathy Champoux, 360-902-8731

MAINE:

Defendants: Clearinghouse Publications
Primary Location: Boston
Media Contact: Massachusetts Attorney General's Office, Tony Rodriguez, 617-727-2200

MICHIGAN:

Defendants: American Financial Options; Darren Neely, President; David Schuhardt, CEO
Primary Location: Plymouth
Nature of Business: Pyramid scheme; also sold home business opportunities.
Media Contact: Michigan Attorney General's Office, Robert , 517-373-7117

MISSOURI:

Defendants: Automated Guest Directories, Inc.; and Retail Sales & Marketing, a business name for Joseph Hayes, Thelma Hayes, Allan O'Hearn, and Ann Fox
Primary Location: St. Louis (filed in Federal District Court in St. Louis)
Nature of Business: Offered business opportunties to sell advertising space on directory boards placed in hotel lobbies; $30,000 fee for three boards. Allegations include false earnings, location assistance claims, Franchise Rule violations.
Media Contact: FTC, Steven Toporoff, 202-326-3135

Defendant:  S&K Group , Inc.; Medical Recovery Service, Inc.; Richard C. Neiswonger; Shapiro, Kossmeyer & Flom, PC; Carl F. Kossmeyer; Nancy Freeman; and Marc Freeman
Primary Locations: St. Louis and Las Vegas, Nevada (filed in Federal District Court in St. Louis)
Nature of Business: Offered business consultant opportunities in fields of expense reduction, capital acquisition, and medical bill auditing for up to $12,900. Allegations include false earnings claims, use of phony references. The Missouri Attorney General's office assisted the FTC in this case.
Media Contact: FTC Cleveland Office, John M. Mendenhall, 216-522-4210

Defendant: Wrightway Sales, doing business as Paradise Coffee Club
Primary Location: Lake St. Louis
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

NEVADA:

see: MISSOURI, S & K Group, Inc.

NEW HAMPSHIRE:

Defendant: Pro Design and Vending
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

Defendant: RMS Internet
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

NEW JERSEY:

Defendant: Guaranteed Tune-up
Primary Location: Morristown
Nature of Business: Automotive tune up franchise.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

NEW MEXICO:

Defendant: Vend A Preneur
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

NEW YORK:

Defendant: Be Your Own Boss
Primary Location: Not known at press time.
Nature of Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Bonnes and Associates
Primary Location: Angola
Nature of Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendants: Consumer's Bylines, Inc.
Primary Location: Albany
Nature of Business: Pyramid scheme that required an initial investment of $270 for the right to further recruit.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Escort/Royal
Primary Location: New York City
Nature of Business: Franchise -- taxi and limousine service.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Maricopa Products, Inc., doing business as Gourmet Food and Beverage, Westcool Beverage and Snacks, Wacky Snacks and Beverage, and Key Marketing Group; Michael Glass; Peter Glass; and Joshua Glass
Primary Location: Westchester
Nature of Business: Franchise -- snack food products.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Marketing Direct
Primary Location: Queens
Natureof Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: New Wave International
Primary Location: Champlain (company is based in Montreal, but has office in Champlain)
Nature of Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendants: P.M.C.S., Inc.; Dennis Harmon; and Philip T. Bukowksi
Primary Location: Great Neck (filed in Federal District Court in Uniondale)
Nature of Business: Offered computerized medical billing services business ventures for $5,995 - $7,495. FTC allegations include false earnings and assistance claims, use of phony references, Franchise Rule violations. The Florida AG has issued an investigative subpoena, based on consumer complaints that they have not received the product, or that the software would not work and/or that they could no make money from the program.
Media Contacts: FTC, Gary Ivens, 202-326-2330; Florida Attorney General's Office, Rebecca Henry, 904-488-9105; Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770; Tennessee Attorney General's Office, Jennifer Rawls, 615-741-1020

Defendant: Tiger Schulman Karate
Nature of Business: Franchise -- karate schools.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Adverworld
Primary Location: Fargo
Nature of Business: Pyramid; also sold home business opportunities.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

see also: FLORIDA, Candy Plus

OHIO:

Defendants: Indulge Yourself International
Primary Location: Columbus
Media Contact: Ohio Attorney General's Office, David Dembinski, 614-466-8831

Defendants: Kenneth Lear, doing business as Venco, Inc.
Primary Location: Cincinnati
Nature of Business: Vending machines; allegations include failure to deliver machines and register as a business opportunity.
Media Contact: Ohio Attorney General's Office, David Dembinski, 614-466-8831

OKLAHOMA:

Defendants: International Auto Security (also known as VIP Marketing)
Nature of Business: Business opportunity -- product distributorships for Trailer Guides & Anti-theft devices
Media Contact: Oklahoma Department of Securities, Patty LaBarthe, 405-280-7735, or Gretchen Harris, 405-280-7732

see also: CALIFORNIA, Destiny Telecom International

OREGON:

Defendant: Basket Connection
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

Defendant: In Home Publishing
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

SOUTH DAKOTA:

Defendants: Owner's Auto Mart, Ltd.
Primary Location: Sioux Falls
Nature of Business: Franchise involving the rental of parking space to sell used cars.
Media Contact: California Department of Corporations, Bill McDonald, 213-736-3704

TENNESSEE:

Defendants: Eagle Travel
Primary Location: Crossville
Media Contact: Florida Dept of Agriculture & Consumer Services, Bob James, 904-922-2770

Defendants: Harvey Wilson, doing business as ABC Publishing, AmericaFunds, Americal, BPL Center, Career Publishing, Communicatoins, Coupon Center, Data Systems, Data Tech Systems, Employer Publishing, Free Books, Jobs America, LJS Services, Literary House, Moneymaking Opportunities, Publishers Center, Qanta Press, and Universal Distributing
Primary Location: Nashville
Media Contact: Tennessee Attorney General's Office, Jennifer Rawls, 615-741-1020

TEXAS:

Defendants: Universe of Toys
Primary Location: Plano
Nature of Business: Business opportunity -- selling and placement of toy racks.
Media Contact: Washington Securities Division, Martin Cordell, 360-902-8760, or Kathy Champoux, 360-902-8731

UTAH:

Defendant: Blue Lake International
Primary Location: Provo
Nature of Business: Home business opportunity.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

Defendants: Integrated Media; Mike Smith
Primary Location: Salt Lake City
Nature of Business: Home business opportunity.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

Defendants: Pro-Link
Primary Location: West Jordon
Nature of Business: An investigative subpoena has been served regarding the sale of a medical billing software business opportunity.
Media Contact: Florida Attorney General's Office, Rebecca Henry, 904-488-9105

WASHINGTON:

Defendant: National Media Group
Primary Location: Kent
Nature of Business: Home business opportunity.
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

Defendants: Progressive Media, Inc.; Collegiate Communications Group, Inc.; Matthew G. Lucas; Kevin Lustgarten; and Mark Buchan
Primary Location: Seattle (filed in Federal District Court in Seattle)
Nature of Business: Offered a scholarship search service for $69.95 and summer jobs for students on cruise ships and in the Alaskan fishing industry. Allegations include false claims that students are guaranteed scholarships, and about job earnings and openings.
Media Contact: FTC Seattle Office, Charles Harwood, 206-220-6350

CANADA:

Defendant: Bi-Line
Primary Location: Not known at press time.
Nature of Business: Pyramid scheme.
Media Contact: New York Bureau of Investor Protection & Securities, Andrew Kandel, 212-416-8989

Defendant: Financial Alliance
Primary Location: British Columbia
Nature of Business: Pyramid
Media Contact: Michigan Attorney General's Office, Robert Ward, 517-373-7117

see also: NEW YORK, New Wave International

 

*Information regarding all cases was not available at press time. You may wish to contact the office of the Attorney General or the office that regulates securities in your state to determine if there are additional cases.