Father And Son Found Guilty In 11 Million Vending Machine Biz-Op Scheme

NEW YORK CITY -- A father and son behind a vending business opportunity scheme were convicted on Feb. 3 for their roles in the enterprise that swindled more than 1,300 would-be entrepreneurs out of nearly $11 million.

Kenneth Levin, 69, and Taylor Levin, 34, were convicted after a three-week jury trial in the Southern District of New York. The two men were found guilty on three counts: conspiracy to commit mail and wire fraud, mail fraud and wire fraud. The maximum sentence for each count is 20 years behind bars. They will be sentenced in April.

Through a company located in Manhattan and multiple successor companies, the defendants and other employees falsely promised customers that if they purchased packages of five or 10 vending machines, they would be provided access to pre-established, high-profit locations and connected with experienced locators, prosecutors said. Meanwhile, many investors lost most if not all of their money, prosecutors charged. The machines they sold dispensed soft drinks, snack foods and candy. The scheme ran from January 2005 to December 2011.

The defendants were arrested in March 2015, along with five other co-conspirators who have all pleaded guilty. | READ MORE

"Kenneth and Taylor Levin preyed upon the entrepreneurial resolve of thousands of victims across the country, deceiving them with promises of business assistance and giant windfalls, when instead they were duping the victims out of over $10 million," said Manhattan U.S. Attorney Preet Bharara of the Southern District of New York. "This three-week trial and the unanimous verdict made clear that the business opportunities Kenneth and Taylor Levin were actually selling their victims was for themselves alone."

The five other individuals arrested along with the father and son duo include Sears Hobbs, James Conley, Marcel Harris, Stephen Friedman and Jonathan Campbell, who are scheduled to be sentenced in February and March.

Bharara credited the U.S. Postal Inspection Service and the Consumer Protection Branch of the Justice Department for their assistance in the prosecution.

"The defendants convicted in this case twisted the American entrepreneurial spirit to their advantage, luring consumers with the prospect of starting their own business and being their own boss," said principal Deputy Assistant Attorney General Mizer, head of the Justice Department's Civil Division. "Justice Department prosecutors will continue to team together and work with law enforcement to ensure that the crime of business opportunity fraud, in all of its forms, is stopped and perpetrators are prosecuted."