OAKLAND – July 14, 2025 — California Attorney General Rob Bonta announced the arrest and arraignment of two individuals accused of orchestrating a complex $1 million fraud scheme involving fake pizza restaurant franchises and bogus stock options.
The defendants appeared in San Diego Superior Court on multiple felony charges, including 11 counts of franchise fraud, 9 counts of securities fraud, 1 count of fraudulent securities scheme, and 2 counts of grand theft, along with a special white-collar crime enhancement for losses exceeding $500,000.
“This white-collar crime scheme stole money from Californians hoping to launch businesses or make sound investments,” said Bonta. “We will not stand by while bad actors exploit hardworking individuals.”
Between 2020 and 2023, the defendants allegedly solicited funds from unsuspecting investors—many with limited business experience—convincing them they were purchasing franchise rights or stock in a growing pizza chain. Victims, including seniors and military veterans, invested amounts ranging from $5,000 to $150,000.
After securing the funds, the defendants reportedly cut off communication with the victims. One of the defendants also fraudulently obtained $287,000 in pandemic-related business loans, which remain unpaid.
Following an in-depth investigation by the California Department of Justice’s Special Prosecutions Section and White Collar Investigations Team, both suspects were arrested and extradited from Florida with help from the Osceola County Sheriff’s Office and the U.S. Marshals Service.
The case serves as a strong reminder of the risks of fraudulent franchise and investment offerings, especially targeting vulnerable groups.
