Family is indicted in candy-machine scheme

Charges allege investors were bilked in a phony vending machine business that used two Twin Cities addresses.

By Dan Browning, Star Tribune

Last update: November 16, 2007 - 8:54 PM

Who can take tomorrow, dip it in a dream? Separate the sorrow and collect up all the cream? The candyman?

Maybe in Willy Wonka's world the candyman can. But in Minneapolis, a federal grand jury has said no.

The grand jury this week charged three family members from Wellington, Fla., with conspiracy and money-laundering charges for allegedly bilking investors in a phony candy vending machine business that they operated from June 2001 through April 2005.

Stephen C. Crown, 67, his wife, Cheryl C. Crown, 63, and their son, Evan S. Crown, 39, were charged with mail fraud conspiracy, money laundering conspiracy, mail fraud and concealment money laundering. They allegedly tricked investors out of at least $320,000.

According to the indictment unsealed Friday, the Crowns placed ads soliciting investors in several states. They allegedly used a variety of fictitious business names, including Capital Asset Investors Inc., Equitable Resources Inc., Empire Marketing, American Franchise Corp. and Ultimate Business Opportunities.

Investors were promised substantial income from a modest investment and were told they would receive vending machines, candy supplies and help in placing the machines in high-traffic areas.

The charges say the investors were not told that the candymakers had no involvement in the business and had not authorized the Crowns to use the trademarked candy names or distribute the candy.

The indictment describes a complex scheme in which the Crowns used a variety of addresses to make it appear that they had legitimate business offices when they were actually just mail drops.

Five of the charges relate to investor payments sent to an address in the 3000 block of Hennepin Avenue S, in Minneapolis; four relate to an address in the 2600 block of E. County Road E in White Bear Lake.

Dan Browning • 612-673-4493

Dan Browning • dbrowning@startribune.com

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