PROJECT FAL$E HOPE$

Project FAL$E HOPE$ is a state and federal sweep by regulators and law enforcement agencies targeting bogus
business opportunities and work-at-home scams. We’ve all see the bogus ads for quick money making opportunities (“Make $5,000 week from home working only 10 hours per week!”).

This state enforcement list points out the franchisors who violated various state fraud and securities regulations. Some of these names are a surprise:

• Aussie Pet Mobile (consent order)
• Bio Performance, Inc (Petition for Temporary Restraining Order, Temporary Injunction and Permanent Injunction
  and Asset Freeze)
• Candy King (permanent C&D, administrative fine of $25,000 against Candy King and $7,500 against Gladstone, Candy King barred for five years from offering biz ops in Connecticut, Candy King must offer rescission for approximately $100,000 to affected Connecticut purchaser investors, Gladstone barred for five years from acting as an officer or director of any entity selling biz ops in Connecticut)
• Coffee Beanery Ltd (consent order)
• Coffee Heaven (final order to cease & desist)
• Daily Grind (agreement)
• Garagetek (summary order revoking registration – New York)
• GNC (consent order)
• KaBloom (consent order)
• Lady of America (order to show cause)
• Pet Products Delivery
• Regal Nails LLC (Stipulation and Agreement, payment of $3,000 fine for unregistered business opportunity sales in Connecticut)
• Tax Recovery Group (permanent C&D from sales of unregistered tax service biz ops and notice of intent to fine issued)

Hat tip: “busmagroomer” in the discussion forum

Update 2-14-2007:

Read Michael Webster’s excellent Misleading Advertising Law blog for your daily dose of provocative Due Diligence for Income Earning Opportunities.

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