International Law

New Zealand Franchise Fraud

The New Zealand National news has a series of reports on a franchise fraud, including the fact that $5m ironing franchise fraudster found.

"Disgraced former Green Acres franchise master Keith Lapham has been found hiding in a North Shore house since his disappearance just before Christmas.

Mr Lapham, who had allegedly sold fraudulent ironing franchises to 200 investors refused to comment when confronted by a One News reporter.

The person whom Mr Lapham said is his lawyer, Robert Hucker, also refused to confirm that he was acting for him when asked by the Herald yesterday.

Although Mr Lapham, who now sports a beard, is alleged to have sold fraudulent franchises topping $5 million, a former employee says he was no criminal mastermind."

This case, yet another cleaning franchise fraud, was first reported on by the New Zealand National News.

A man who spent a year driving for alleged franchise fraudster Keith Lapham believes his former boss took almost $500,000 from new ironing franchisees in the fortnight before his disappearance.

Jason Joyce was employed by Lapham from November 2006 to deliver ironing and do other duties for his Green Acres ironing franchisees.

Apparently, the scheme involved selling franchises, using the money to purchase "fake work" for the existing franchisees, whose royalty stream would substantiate the validity of the scheme - in order to sell more franchises.

Both Australia and New Zealand have been having their unfair share of franchising fraud recently.

Full post as published by Misleading Advertising Law on January 17, 2008 (boomark / email).