SANTA ANA, CALIF.
A judge sentenced a Newport Beach man to two years in federal prison for stealing from investors by lying and telling them that he had exclusive rights to sell In-N-Out Burger franchises in the Middle East, officials said today.
U.S. District Judge Andrew J. Guilford sentenced Craig Stevens, 56, on Monday, officials said.
Stevens plead guilty in June to one count of wire fraud, admitting that he fraudulently solicited more than $4.27 million from investors who were told that each franchise cost approximately $150,000, plus another $250,000 per year for royalties.
Stevens admitted sending an email to a victim in Lebanon that discussed a purported licensing agreement, officials said.
The scheme, which ran throughout 2014, fraudulently solicited investments when Stevens “claimed to have the exclusive rights to [In-N-Out Burgers] franchises in the Middle East,” according to court documents. which explained that the Irvine-based In-N-Out Burger company is a private held corporation that “does not have any business partnerships or franchise agreements with third parties.”
The FBI investigated Stevens.