State AG Cracking Down On 'Get Rich Quick' Businesses
Posted June 27, 2002 10:53 a.m. EDT
RALEIGH, N.C. — We have all heard the claims and seen the advertisements "Own your business and earn up to hundreds of thousands of dollars." This week, the state attorney general, the Federal Trade Commission and the U.S. Department of Justice are cracking down on those type of businesses.
These days, Kris Morrill is busy helping his wife Tonya with 8-month-old Kolton, but it was not too long ago that Kris and Tonya were in over their heads and near financial ruin. Kris believed the agreement he made with a company called NuMar Inc., would yield him lucrative profits.
"A lot of people have the dream of owning their own business, but these business opportunity scammers can turn that dream into a real nightmare," state Attorney General Roy Cooper said.
Cooper said Numar Inc. targeted people at Fort Bragg and Pope Air Force Base. Cooper said the company promised to help several people set up juice bars at military base fitness centers.
"It was frustrating. At nights, you lay up and say, 'Wow, what am I going to do now?'" Kris said.
After an investigation by the attorney general's office, NuMar Inc. agreed to release North Carolina consumers from their contracts and pay refunds. Morril received $5,200 back, however, NuMar Inc. is still in business.
"As long as they register with the secretary of state and report the violations that they've had, they can do that," Cooper said.
Representatives with NuMar Inc. said they believed they were running a consultant company. However, the attorney general's office said they were running an unregistered business, which is illegal in North Carolina.
Before investing money into a business, officials said you should check with the attorney general's office and the Better Business Bureau.