TDD (202) 514-1888
Individual Indicted in Connection with Costa Rica-based Business
Opportunity Fraud Ventures
Operation Had Connections to Florida, New Mexico, Wisconsin and Colorado
WASHINGTON – A British citizen was charged in connection with the operation of a series of fraudulent
business opportunities on March 10, 2009, by a Miami federal grand jury, the Justice Department and the U.S.
Postal Inspection Service announced today. Sirtaj Mathauda was indicted on charges that he and his co-
conspirators purported to sell vending machine, beverage and greeting card business opportunities, including
assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s
continued nationwide crackdown on business opportunity fraud.
Beginning in June 2004, Mathauda is alleged to have fraudulently induced purchasers in the United States to
buy business opportunities in Apex Management Group, Inc., USA Beverages, Inc., Omega Business Systems,
Incorporated, and Nation West Distribution Company. According to the indictment, the business opportunities the
defendant and his co-conspirators sold cost thousands of dollars each, and most purchasers paid at least $10,000.
Typically, each company operated for several months, and after one company closed, the next opened. The various
companies used bank accounts, office space and other services in the Southern District of Florida, New Mexico,
Wisconsin and Colorado.
The defendant, using an alias, and his co-conspirators employed Voice Over Internet Protocol (VoIP) phone
service and virtual offices in the U.S. to handle mailings to make it appear to potential purchasers that the defendant
was located in the United States. In reality, Mathauda operated out of Costa Rica to fraudulently induce potential
purchasers in the United States to buy the purported business opportunities.
According to the indictment, the companies made numerous false statements to potential purchasers of the