Federal Trade Commission (FTC)
Most recent update 3/9/11 (See end of document)
U.S. v. Stanley Gladstone, No. 0:10-CR-60195 (S.D. FL)
Stanley Gladstone, the founder and President of Candy King of America, Inc. (“Candy King”), a Florida corporation which had a principal place of business in Plantation, Florida, pled guilty on March 2, 2011, in the United States District Court for the Southern District of Florida, to one count of conspiracy, in violation of Title 18, United States Code, Section 371.
Candy King promoted business opportunities involving the sale of candy vending machines and Altoids gum machines from approximately 2003 until approximately July 2006. Candy King sales personnel, including Gladstone, made materially false representations, and omitted to state and concealed material facts concerning, among other things, the profits that could reasonably be expected from the purchase of a Candy King distributorship, the authenticity of Candy King references, the number of distributors that were in or that would be in various geographic areas, and the services distributors could receive placing, operating, and maintaining their Candy King machines. As a result of this fraudulent conduct, Candy King generated approximately $20 million in revenue by selling about 9,000 vending machines to approximately 1,000 consumers across the United States.
Gladstone was charged by indictment on June 30, 2010, with nine counts of mail fraud, five counts of wire fraud, and one count of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Pursuant to a plea agreement with the United States, Defendant Gladstone entered a guilty plea to a superseding information charging him with conspiracy to commit an offense against the United States. As part of the plea agreement, Gladstone executed a factual resume confirming key details of the offense.
Sentencing is scheduled for June 1, 2011, before Judge William P. Dimitrouleas. Gladstone faces a maximum term of imprisonment of up to five years, followed by a term of supervised release of up to three years. In addition, the Court may impose a fine of up to $250,000 or twice the gross loss or gain as a result of the defendant’s offense, whichever is greater, and shall order restitution to the victims.