Six S. Florida men face fraud charges for business opportunity scams

MIAMI — Six South Florida men face prison time after being charged with fraud for their part in five different business opportunity scams.

The six include Shevin Goodman and Cary Krugly of Miami; Paul Stephen Pemberton; Brian D. Gordon of North Miami; Michael DeAngelis; and Martin Hudson of Miami.

The six, according to federal prosecutors, allegedly worked five business opportunity scams that enticed more than 2,300 prospective entrepreneurs to invest more than $62 million.

The cases:

— Goodman and Krugly were each charged with conspiracy to commit mail fraid for their roles in Debit Corporation of America Inc., a Miami corporation that sold business opportunities between January 2003 to January 2004. Goodman also faces criminal contempt of court.

According to the charges, DCA claimed to sell prepaid MasterCard sales systems, along with assistance in establishing and and operating a prepaid MasterCard business to would-be entrepreneurs willing to shell out $15,000. These operators would earn substantial profits from the commissions generated when they sold the prepaid debit card.

More than 400 consumers invested $6 million into DCA systems.

Goodman, if convicted, Goodman faces a maximum of life in prison, fines, and mandatory restitution on the criminal contempt count. Goodman and Krugly face a maximum of five years on the mail fraud conspiracy count.

— Paul Pemberton faces one count of conspiracy to commit mail fraud under for his role in Plantation-based TransNet Wireless Corp.

Prosecutors say TransNet purported to sell Internet kiosks, while providing buyers help setting up and operating an Internet kiosk business at a cost of $14,000.

Buyers were told they would earn commissions generated when the public used the kiosks and from national ads placed on the kiosks. More than 800 were taken in the scam, costing them $18 million.

If convicted, Pemberton could get  20 years in prison.

— Brian D. Gordon, a CPA, also is charged with conspiracy to commit mail fraud for providing false, audited financial statements to bogus business opportunity companies.

Gordon provided false statements for  Pantheon Holdings of Miami and American Entertainment Distributors of Hollywood. Pantheon sold bogus Internet kiosk businesses and AED was a DVD rental machine scam. To date, 12 others have been convicted for their role in Pantheon, and 11 have been convicted in connection with AED.

Pantheon took more than 700 investors for  more than $18 million; AED took more than 400 for nearly $20 million.

Gordon could get 20 years on each of the two counts.

— Michael DeAngel also faces a conspiracy charge in connection with Pantheon Holdings.

DeAngelis acted as a reference for Pantheon, claiming he had successfully bought and operated the kiosks. If convicted, he could be sentenced to 20 years in prison.
— Martin Hudson faces a conspiracy charge for his role in Tel2Net, another Internet kiosk scam.

Hudson, doing business as CPL Locating Services Inc. was a so-called “outside locator” hired to find locations for Tel 2 Net buyers place their kiosks.

Tel 2 Net salespeople told potential buyers to contact Hudson, who would describe the services CPL Locating would provide. Hudson falsely stated that he had scouted the territory where the potential purchasers were located and talked to local businesses about the possibility of installing the kiosks.

The scam took 80 investors for more than $1 million.

Hudson faces five years in prison if convicted.