{"id":13690,"date":"2015-07-16T16:56:26","date_gmt":"2015-07-16T23:56:26","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=13690"},"modified":"2015-07-16T16:56:26","modified_gmt":"2015-07-16T23:56:26","slug":"two-involved-in-vending-machine-fraud-sentenced-to-federal-prison-video","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=13690","title":{"rendered":"Two Involved in Vending Machine Fraud Sentenced to Federal Prison (Video)"},"content":{"rendered":"

NEW YORK<\/strong><\/p>\n

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A federal judge sentenced two sales representatives to prison today for their roles in a vending machine business opportunity fraud scheme, officials said.<\/p>\n

Twenty-two individuals were charged with fraud in connection with\u00a0Multivend LLC,<\/strong> doing business as Vendstar<\/strong>, a company based in Deer Park, New York.<\/p>\n

Those charged include\u00a0Vendstar managers and sales representatives, and the operators of locating companies recommended by Vendstar.<\/p>\n

Three of those defendants have now been sentenced; 13 defendants are awaiting sentencing; and six defendants are scheduled to stand trial in September.<\/p>\n

U.S. District Court Judge Joan M. Azrack<\/strong> sentenced Howard S. Strauss<\/strong>, 66, of Jericho, New York, to two years and four months in prison. The judge ordered him to pay $2,291,844 in restitution to 230 victims.<\/p>\n

The judge sentenced Mark Benowitz,<\/strong> 68, of Midlothian, Virginia, to two years and ordered to pay $997,210 in restitution to 101 victims.<\/p>\n

Both Strauss and Benowitz pleaded guilty last year to fraud charges.<\/p>\n

The U.S. Postal Service<\/strong> investigated this case.<\/p>\n

\u201cThese defendants promised the American dream, but knew that what they in fact were offering was a worthless business opportunity,\u201d said Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department\u2019s Civil Division.\u00a0<\/strong> \u201cThe Department of Justice will continue to prosecute those who seek to scam out of everyday Americans the hard-earned money in their retirement accounts and life savings.\u201d<\/p>\n

It sold vending machine business opportunities to consumers throughout the United States until 2010, officials said.<\/p>\n

Authorities said Strauss and Benowitz were Vendstar sales representatives who misrepresented the business opportunity\u2019s likely profits, the amount of money that Vendstar\u2019s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines, and the level of location assistance that customers would receive from locating companies recommended by Vendstar.<\/p>\n

Both Strauss and Benowitz also falsely told potential customers that they operated profitable candy vending machine routes themselves, officials said.<\/p>\n

(Vendstar Promotion Commercial)
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