LAWFUEL – Law News Network – Law Jobs – R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Henry Gutierrez, Postal Inspector in Charge, United States Postal Inspection Service, announced that defendant, Jason Kowal, was sentenced today for conspiracy to commit mail fraud in connection with his activities at Cash Link Systems Inc., of Hollywood, Florida. Kowal, of Dania, Florida, was sentenced to a term of 70 months’ imprisonment, 3 years of supervised release, and was ordered to pay $1,828,370.61 in restitution.
According to court records, Kowal and others engaged in the fraudulent sale of business opportunities through Cash Link Systems, Inc. Cash Link purported to sell cash-less ATMs to the public, along with assistance in establishing, maintaining, and operating a cash-less ATM business. Potential purchasers were told that after being placed in the locations provided by Cash Link, the cash-less ATMs would be used by members of the public, who would swipe their debit cards and receive a receipt. The receipt, in turn, could be taken to the location’s cash register for cash or store credit. According to Kowal and his co-conspirators, a business opportunity purchaser would earn substantial profits from the ATM fees generated when members of the public used the purchaser’s cash-less ATMs.
Cash Link promoted the business opportunities to consumers across the country through television commercials, the Internet, and other media, misrepresenting the profits that could be earned by purchasing a Cash Link distributorship, and urging consumers to call a telephone number that appeared in the advertisements. Potential purchasers were told that for a purchase price of approximately $12,000, Cash Link would perform the most difficult and time consuming part of the business by securing viable locations in which to place the cash-less ATMs. Consumers were also told that Cash Link would find appropriate, viable, and high-traffic locations to place the kiosks, relocate any kiosk that underperformed, and only sell distributorships in a limited geographic area. Kowal and others falsely represented to potential purchasers that they would earn their investment back in 12 months or less. Kowal and others fraudulently induced over 800 consumers to invest a total of approximately $15 million in Cash Link.
Jason Kowal was a Cash Link reference who fraudulently held himself out as a successful Cash Link purchaser. In reality, however, Kowal never purchased a Cash Link cash-less ATM, and was paid to lie to prospective purchasers.
Mr. Acosta commended the investigative efforts of the Postal Inspection Service. This case is being prosecuted by Richard Goldberg, Trial Attorney, United States Department of Justice, Office of Consumer Litigation.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.List your legal jobs on the LawFuel Network