Recently, the Texas Attorney General filed suit against William McCorkle, Chantal McCorkle, Cashflow Systems, Inc., and Francis Leichman Corp. for violations of the Texas Business Opportunity Act and Texas Home Solicitation Act.
According to the complaint, the defendants advertised on late-night television and by mail a series of free seminars being held in local hotels. At the seminars, the defendants allegedly tried to sell consumers a business opportunity for $500. The defendants claimed that their clients could make $10,000 in three days by buying properties at foreclosures and government auctions and then reselling them. Consumers were also supposedly told that the McCorkles would be their business partners and would provide most of the start-up cash, the consumer need only purchase the opportunity and find the property.
According to Attorney General Dan Morales, the defendants, doing business as William McCorkle Seminars, are not registered to do business in the State of Texas and have failed to inform consumers of their right to cancel contracts within three days of signing. The State District Court in Bexar County has issued a temporary restraining order to stop the seminars until the defendants are properly registered and bonded by the state.
At the time of the suit, the defendants were hosting seminars in San Antonio, where the AG's office estimates that hundreds, perhaps thousands heard the sales pitch. They also operated in Houston, Dallas and several other states. It is estimated that the defendants have made millions in profits from the sale of business opportunities. It is unknown whether the consumers have made anywhere close to the promised profits.
More information on this case can be found at the Texas Office of the Attorney General website.
People all across the country receive invitations or see advertisements for seminars on investments and business opportunities. If you go to one of these seminars, be careful. When you get there you might here extravagant earnings potentials and claims of easy money. Don't believe it. Be especially wary if there is pressure to buy, or if you are not advised of your rights within your state. Some states, such as Texas, have cancellation periods, usually three days, during which time you can cancel a business opportunity purchase without penalty. You also have additional rights under federal law.
Don't be taken. If you are considering getting involved in a business opportunity, do your homework.
For more information, read the FTC's
"Franchise & Business Opportunity"
brochure.
Taken from http://www.fraud.org
