DVD Vending Machine Scam
DVD vending machines business opportunity scam busted.
Grigorian was a sales representative at American Entertainment Distributors, Inc. ("AED"), a company based in Hollywood, Florida, which fraudulently sold more than $19 million of DVD vending machines to more than 400 consumers across the United States in 2003-2004. To sell the machines, AED used wildly exaggerated profit projections, falsely promised to secure good locations for the machines, falsely claimed that the machines were reliable and easy to use, exaggerated the company's longevity, and used phony references.
After a two-week trial in October 2006, a jury found Grigorian guilty of two counts of mail fraud, three counts of wire fraud, and one count of conspiracy.
The AED prosecution is part of a crackdown by the U.S. Attorney's Office, Department of Justice, Postal Inspection Service, and Federal Trade Commission on business opportunity fraud. "Business opportunities" are generally advertised on cable television commercials and classified newspaper ads as pre-packaged businesses in which the offering company will provide the buyer with a machine, a good location for the machine, technical support, and other assistance in operating the business. During the last two years, forty-six individuals have been convicted in the crackdown".
