11/16/2005
Consumers with questions regarding this action can contact Lisa Hone, Bureau of Consumer Protection, Federal Trade Commission at (202) 326-3207. Complaints can be filed with the FTC by calling 1-800-FTC-HELP or visiting their website at www.ftc.gov.
The opening page of the website begins innocently enough:
"Welcome to USA Beverages Inc.
Dear Prospective Client,
I would like to welcome you to the profitable world of Costa Rican, American, Flavored and Expresso coffee blends. We are pleased to offer you a unique concept combining a superb business opportunity with a high quality product and marketing concept."
The problem begins when the high quality product and marketing concept never materialize after the company is paid thousands of dollars by consumers.
This company first began to draw the attention of the Better Business Bureau of the Southwest in May 2005. The company was allegedly located in Las Cruces, New Mexico and claimed to have been in business since 1994. Consumer complaints soon began to come in at a steady stream. All with the common thread, we sent the company money for racks and coffee products but have never received the products. From October to November 2005, the Bureau received over 20 complaints from consumers. Complaints claim dollar amounts ranging from approximately $10,000 - $30,000.
After alerting the Federal Trade Commission, it was discovered that the company was actually a Costa Rican operation using VoIP (Voice over Internet Protocol) services, shell corporations, aliases, and shills to con U.S. consumers into investing in a bogus business opportunity. A U.S. District Court, at the request of the FTC, has halted operations by issuing a temporary restraining order barring the false claims, freezing the defendant's assets, and appointing a receiver who shut down the toll-free U.S. phone lines used to market the scheme. The FTC complaint named as defendants USA Beverages, Inc.; Dilraj Mathauda, aka "Dan Reynolds"; Sirtaj Mathauda; Jeff Pearson, aka "Paul Clayton"; David Mead; and Silvio Carrano.
The company used classified ads and a Web site to advertise their coffee display franchises. They claimed that in exchange for payment, they would provide customers with materials needed to operate a successful coffee display rack business, including assistance in finding profitable locations for the racks.
Complaints can be filed with the FTC by calling 1-800-FTC-HELP or visiting their website at www.ftc.gov.
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