14 DAY TRIAL // Three individuals from Florida have been arrested and charged on suspicion of running a fraud scheme in which they purported to sell coffee display rack business opportunities.
According to the Department of Justice, the suspects – Mitchell Berman, Robert Gallo and Steven Axelrod – each had at least one alias that helped them evade detection.
They are accused of operating a series of fraudulent companies that promised buyers display racks, packets of coffee, and assistance in establishing and maintaining a coffee selling business. The business opportunities were sold at a minimum of $10,000 (€7,600).
Between August 2000 and October 2011, the fraudsters set up several companies, each of the businesses operating for no more than a year. After victims began filing complaints, the fraudulent firm was shut down and a new one was opened.
Victims were told they could make substantial profits, but in reality, they made little to no money on their investments, and they never received the support they were promised.
All three suspects have been charged with conspiracy to commit mail fraud. Berman, who has violated a December 2000 court order that banned him from running such schemes, was also charged with 8 counts of mail fraud and 9 counts of criminal contempt.
Gallo was also charged with 8 counts of mail fraud, while Axelrod was charged with 4 counts of mail fraud.
They each face up to 20 years in prison. For the criminal contempt counts, Berman faces life in prison.
“The Department of Justice is committed to protecting consumers from business opportunity fraud schemes,” commented Stuart F. Delery, acting assistant attorney general for the Justice Department’s Civil Division.
“As this indictment demonstrates, we will continue to prosecute individuals who seek to swindle innocent Americans out of their hard-earned money.”