Source: http://www.unhappyfranchisee.com/ny-bagel-scam-washington-enforcement-order/
Timestamp: 2019-04-19 00:25:55+00:00

Document:
A complaint filed by the Unhappy Franchisee website has resulted in the third state investigation and enforcement order against NY Bagel Cafe aka NYC Bagel & Sandwich aka New York Bagel Cafe & scammers Joe Smith & Dennis Mason. The State of Washington Department of Financial Institutions Final Order (below) includes a long & detailed list of lawsuits and claims of fraud related to the NY Bagel Scam.
(UnhappyFranchisee.Com) Unhappy Franchisee continues its campaign to end the blatantly fraudulent actions of Joe Smith of Fishkill, NY, Dennis Mason of Frenchtown, NJ, and the NY Bagel Cafe aka NYC Bagel and Sandwich Shop aka New York Bagel Cafe franchise opportunity they promote via Craigslist ads.
So far, our complaints to state franchise regulators have resulted in three investigations and enforcements orders of the NY Bagel Scam in Maryland, Virginia and, now, Washington.
Here are the State of Washington Entry of Findings & Final Orders to Cease & Desist issued to Joe Smith, Dennis Mason & NY Bagel Cafe.
On July 28, 2017, the Securities Administrator of the state of Washington issued order number S-17-2159-17-SC01, a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist (Statement of Charges) against New York Bagel Enterprises, Inc., Joseph V. Smith, and Dennis K. Mason.
The Statement of Charges, together with the Notice of Opportunity to Defend and Opportunity for Hearing (Notice of Opportunity for Hearing) and an Application for Adjudicative Hearing (Application for Hearing), was served on Dennis K. Mason on September 14, 2017.
The Notice of Opportunity for Hearing advised Dennis K. Mason that a written application for an administrative hearing on the Statement of Charges, must be received by the Securities, Division within twenty days from the date of receipt of the notice.
Dennis K. Mason, however, failed to request an administrative hearing, either on the Application for Hearing or otherwise, within twenty days of receipt of the Statement of Charges and Notice of Opportunity for Hearing.
1. New York Bagel Enterprises, Inc. is a New Jersey corporation formed in 2008 for the purpose of operating a bagel and deli franchise. New York Bagel Enterprises, Inc. does business under the trademark New York Bagel Cafe & Deli, a trademark that the company does not own. New York Bagel Enterprises alternatively uses the names N Y. Bagel Enterprises, Inc., N.Y. Bagel Cafe & Deli, and NY Bagel Cafe & Deli. The company is located in Rutherford, New Jersey.
2. Joseph V. Smith is a resident of New York and acts as the principal of New York Bagel Enterprises.
3. Dennis K. Mason is a resident of New Jersey and arranges for the offer and sale of New York Bagel Enterprises. Dennis K. Mason has offered and sold franchises for other companies in the past, through his company Franchises Unlimited, Inc., a New Jersey corporation. Dennis K. Mason uses aliases, including Keith Samuels and Brian Schofield, in his solicitation of New York Bagel Enterprises franchises.
5. Dennis K. Mason paid for the posting of these Craigslist advertisements, which he ran every few weeks.
6. For an initial fee of $27,500, New York Bagel Enterprises offered prospective licensees the right to own and operate New York Bagel Cafe & Deli stores in Washington under the New York Bagel Cafe & Deli trademark. Dennis K. Mason represented that prospective licensees could operate these New York Bagel Cafe & Deli stores within protected territories.
7. As part of the fee, New York Bagel Enterprises also offered prospective licensees assistance in opening new stores and performing financial analyses. Additionally, New York Bagel Enterprises claimed that it would provide prospective licensees with training on the operation and management of the licensee’s new store.
8. These Craigslist advertisements directed prospective licensees to call New York Bagel Enterprises listed telephone number or to visit the company’s website, where the company continues to generally offer the sale of New York Bagel Cafe & Deli franchises.
9. In their online advertisements, New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason represented that New York Bagel Enterprises had a history of successful operations, however, New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason failed to disclose their lengthy legal and financial history described below.
e. In 2011, franchisees sued New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason for fraud, negligent misrepresentation, violations of the New Jersey Consumer Fraud Act and the Pennsylvania Unfair Trade Practices and Consumer Protection Law, and breach of contract in connection with the sale of a New York Bagel Enterprises franchise in Pennsylvania. In 2012, the parties settled the lawsuit.
13. New York Bagel Enterprises and Joseph V. Smith are not currently registered to offer or sell franchises in the state of Washington and have not been previously registered to do so.
14. Dennis K. Mason is not currently registered as a franchise broker with the state of Washington and has not been previously registered to do so.
1. Dennis K. Mason’s offer of New York Bagel Cafe & Deli licenses in Washington constitutes the offer of a franchise as defined in RCW 19.100.010(6) and RCW 19.100.010- (12).
2. Dennis K. Mason violated RCW 19.100.140 by offering franchises for sale in Washington without registering with the state to do so.
3. In violation of RCW 19.100.170(2), Dennis K. Mason’s representations in his online advertisements of a history of successful New York Bagel Enterprises operations constitute untrue statements of a material fact or omissions of a material fact necessary in order to make the statements made in light of the circumstance under which they were made not misleading.
IT IS HEREBY ORDERED that Dennis K Mason shall and desist from offering or selling franchises in violation of RCW 19.100.140, the franchise broker registration section of the Franchise Investment Protection Act.
SIGNED and ENTERED this 17th day of November 2017.
Special note of thanks to Washington Financial Legal Examiner Eric Palosaari for his excellent research work!
TAGS: NY Bagel Cafe, NY Bagel Cafe & Deli, NYC Bagel, NYC Bagel & Sandwich Shop, New York Bagel Cafe, NY Bagel Franchise, Joe Smith, Joseph Smith, Dennis Mason, Brian Scofield, NY Bagel Scam, NYC Bagel Scam, New York Bagel Scam, Craigslist Scam franchise, NY Bagel Cafe franchise opportunity, NY Bagel franchise, NY Bagel franchise opportunity, franchise complaints, unhappy franchisee .
Awesome. Goodwork Sean. Keep it up.

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