Former Costa Rican Business Owner Sentenced in Connection With
Fraud Ventures
Former Costa Rican business owner, Stephen
Schultz , was sentenced in connection with a
series of Costa Rica-based business
opportunity fraud ventures. A Miami federal
judge has sentenced Schultz to seven years
prison and five years of supervised
released.
A hearing to determine the amount of
restitution owed by Schultz will be
scheduled within 90 days.
Schultz pleaded guilty on Jan. 21 to charges
he and Jeffrey Pearson purported to sell
beverage and greeting card business
opportunities, including assistance in
establishing, maintaining and operating the
businesses.
Schultz worked for USA Beverages, Twin Peaks
Gourmet Coffee and Cards-R-Us.
Both USA Beverages and Twin Peaks sold
business opportunities to own and operate
coffee beverage sale display racks.
Cards-R-Us sold business opportunities to
own and operate greeting card sale display
racks. All three were made to look like they
were U.S.-based companies, when, in fact,
they operated out of Costa Rica.
Potential purchasers were told that the
companies were established years earlier,
had a significant number of distributors
across the country, and had a track record
of success when, in fact, they did not.
"Business opportunity fraud takes advantage
of people trying to start their own business
and make a living, or supplement their other
income, but provides significant financial
hardship instead of a new source of finds,”
said Tony West, assistant attorney general
for the U.S. Department of Justice’s Civil
Division, in a news release.
Following his indictment by a federal grand
jury in Miami on Nov. 20, 2008, Schultz was
arrested on Dec. 12, 2008, in Costa Rica and
extradited to the U.S. to face charges. |
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