The Serious Fraud Office is promising a through investigation of the Green Acres franchise scam but says it could take time because a large number of people claim to have been defrauded.
About 200 people bought the bogus franchises for ironing services from Keith Lapham, former master licensee for the Green Acres home maintenance company.
They paid between $20,000 and $25,000 each for the non-existent franchises and Mr Lapham – now reported to be in hiding – collected about $3 million.
The fleeced franchisees have formed a group called Franchise Watch and today they met Commerce Minister Lianne Dalziel to ask for help.
She told them the Serious Fraud Office (SFO) would treat their case as a priority.
SFO director Grant Liddell confirmed the inquiry was already under way.
“It will probably be quite lengthy, as a large number of people claim to have been defrauded,” he said in a statement.
No comments yet.