‘Job Creator’ To Prison For Fraudulent Business Opportunity Schemes

With the economy still struggling, it seems pretty clear that there just aren’t enough job creators who are creating jobs. Now, we have a story of a supposed job creator who actually was engaged in financial fraud.           

According to prosecutors, Michael Eisenberg served as an owner and salesman for Atomic Vending and Energy Vend from March 2008 to March 2010.   Each firm sold business opportunities to the public for a minimum price of approximately $6,000.
 
As the government alleged, potential investors were told they would receive a vending “route.” Eisenberg and others made a number of false claims about the profits generated by the firms’ vending machines. In addition, his salesmen led potential buyers to believe that they would recoup their investment in a year or less.   Eisenberg misrepresented that “locating companies” would find high traffic, high profit locations in which to place the vending machines. In reality, as the government alleged, buyers earned little to no money from their investments.
           
Eisenberg pleaded guilty and now has been sentenced to 28 months in prison, a $7,500 fine, at least $15,000 in restitution and three years supervised release.