Indicted Sirtaj Mathauda, a British citizen, on charges that he operated several fraudulent business opportunities in Florida and several other states

Miami federal grand jury on Tuesday indicted Sirtaj Mathauda, a British citizen, on charges that he operated several fraudulent business opportunities in Florida and several other states.Mathauda is alleged to have fraudulently induced investors to purchase vending machine, beverage and greeting card businesses, according to a press release from the U.S. attorney for the Southern District of Florida.
The businesses included Apex Management Group, USA Beverages, Omega Business Systems and Nation West Distribution Co.According to the indictment, the business opportunities cost thousands of dollars each, with most victims paying at least $10,000. Typically, each company operated for several months and, after one company closed, the next opened. The companies used bank accounts, office space and other services in Florida, New Mexico, Wisconsin and Colorado.The indictment says that purchasers were told they likely would earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands.Victims were led to believe that the companies they were buying into were established, had a significant number of distributors across the country and had a track record of success.Mathauda was charged with conspiracy and with committing his offense via telemarketing. He was also charged with 13 counts of mail fraud and two counts of wire fraud.If convicted, Mathauda faces a maximum of 25 years’ imprisonment, a possible fine and mandatory restitution on the conspiracy count. He also faces a maximum of 25 years in prison on each of the mail and wire fraud counts, along with a possible fine and mandatory restitution.