According to the Indictment, Jeffrey and Terri Salley violated the Order in connection with the sale of espresso coffee vending business opportunities. The Indictment states that the Order prohibits the Salleys from violating the FTC's Trade Regulation Rule titled, "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures," commonly referred to as the Franchise Rule, and from making any material misrepresentations in connection with the promotion, offer for sale, or sale of franchises, business ventures, or telemarketing. The Order also requires the Salleys to report certain information to the FTC in the future. According to the Indictment, Jeffrey M. Salley and Terri L. Salley, owners of a Jupiter, Florida-based telemarketing room, continued to sell coffee franchises following the entry of the Court's 2000 Order through Worldwide Coffee, Inc., Salley's World Wide Coffee, Inc., Coffees
of the World, Inc., and Specialty Gourmet Supply, Inc. The Indictment charges the Salleys with
failing to provide prospective purchasers with the information required by the Franchise Rule. Specifically, the Indictment charges that the defendants failed to disclose their business experience, Jeffrey Salley's 1998 felony grand theft convictions in Florida, Jeffrey and Terri Salley's 1999 bankruptcy filing, the Court's 2000 Order regarding their Franchise Rule violations, and contact information for their other franchisees.

The Indictment also charges the Salleys with violating the Order by fraudulently inducing nine specified purchasers to invest an average of $25,000 each through false representations that the defendants would deliver the coffee machines the franchisees needed to operate the business opportunity. In addition, the Indictment charges the Salleys with failing to report their activities to the FTC, as required by the Order.

The Indictment is part of "Project Scofflaw," the FTC's comprehensive law enforcement initiative to enforce United States District Court Orders that have been violated. The FTC is committed to utilizing the full range of powers available to it to stop repeat offenders from violating existing court orders and to deter other defendants from ignoring order provisions.

NOTE: It should be remembered that an Indictment is not evidence of criminal activity, and the defendant is presumed innocent unless and until proven otherwise.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.

Source:FTC.gov