The Latest U.S. Import: Franchise Fraud
February 6, 2007 by Sean Kelly
Filed under Business
Give us your tired, your weak, your franchise scammers and conmen…
[LEFT: Reza Solhi, AKA "Anthony" Solhi]
I admit that prior to this morning the idea of a U.S./Canadian border fence seemed laughable and preposterous. After reading the Taking Your Dough expose and watching the investigative CTV W-5 videos on how convicted Canadian fraudster Reza Solhi (AKA Anthony Solhi) has now brought his infamous franchising practices south of the border, I’m not only for building it, I’d suggest running 20,000 volts or so through it.
The videos, which total about 20 minutes, alternate between heart-wrenching interviews with victims who have lost their life savings to Solhi & his cohorts, to undercover footage showing a franchise salesman in action, pitching Solhi’s Anthony’s Kitchen franchise to a couple in a Chicago hotel lobby, and, separately, the salesman bragging about how he sells dreams to “gullible” franchise prospects for up to $600,000.
What’s wrong America? Aren’t we producing enough of our own franchise and biz-opp scammers? Are we gonna let these Hosers come in and take the caviar from the mouths of our native conmen, charlatans and get-rich-quick masters? Where’s our sense of national pride?
Read all about it:
Taking Your Dough Expose and videos from Canadian TV
Anthony’s Franchise Info: Blog with numerous links to articles, legal judgements and info on Reza Solhi, his associates. According to this site “Solhi has owned and managed the 3 for 1 Pizza franchise chain and in connection with that chain, he was criminally charged with fraud. Subsequently, he started the Pizza One, Pizza Uno and Anthony’s Kitchen franchises under the sole directorship of his mother Ashraf (Ashley) Mirkhan.”
When Gate Keepers Fail at Blue MauMau and at Misleading Advertising Law: Michael Webster is an active blogger and the Canadian attorney representing some of the victims. He was interviewed for the CTV investigative report.
Rip-Off Report 1/3/2007 7:48:40 PM “RezaAnthonys Kitchen – Anothonys Pizza Uno – Pizza One Run By Reza Solhi – Anthony Cheat People Mostly Immigrants By Promising Franchises Which DO NOT EXIST Reza Solhi has robbed many people of their savings by promising nonexistant franchises Toronto Ontario Canada”
Rip-Off Report 12/18/2006 11:09:29 AM “Anthonys Kitchen franchise ripoff AKA PizzaOne, PizzaUno. rip off liars Internet Fraud Reza Solhi, Chris Bassoo, Nigel Mayne, Derek Thomas, Michael Lublin ..they steal your money. ”
Rip-Off Report 9/25/2006 12:14:05 PM “Reza Solhi, Farzad Bagherzadeh, Anthony Mirkhan ripoff pizza franchise Three for One Pizza One Triple Three Pizza Richmond Hill Ontario”
Rip-Off Report 5/27/2006 4:32:11 PM “Anthonys Kitchen, Anothonys Pizza Uno, Pizza One Run By Reza Solhi (aka Anthony) And Family Rip-off money from people in the name of pizza restaurant franchises which never exists or build Thornhill Ontario”
Online Advertisements for the Anthony’s Kitchen franchise:
Anthony’s Kitchen on Franchise Solutions
Anthony’s Pizza Uno on Franchise Gator
Anthony’s Pizza Kitchen on Franchise Marketplace
ARE YOU FAMILIAR WITH REZA SOLHI, ANTHONY’S KITCHEN OR THE OTHERS MENTIONED IN THIS POST? LEAVE A COMMENT!
Thanks for posting this.
The more sites which have “Reza Solhi” as terms, the more likely we will be able to prevent more people from being defrauded.
The Ontario, Canada government has known since The Grange Report [1971] that franchising requires a relationship type regulatory framework.
Canada has an unenviable international reputation for being an harbor for white-collar crime.
Ontario’s present government said today that they feel that the current disclosure-only franchise law is just fine.
The province of Ontario represents 50% of our national population and 40% of our G.D.P. It is also the home to the national head offices of our franchise-laden product franchisors in the petroleum, grocery and automotive industries.
I make these observations as a proud Canadian who has sought change in this situation for almost a decade.
On Dec 2, 1998 I was at a demonstration in front of one of Mr. Solhi’s stores in Toronto, Canada. It was churned 5 times in 18 months. Five defaulted government guaranteed loans. Estimated unfunded debt: $200-300-million.
Stories suppressed: retired RCMP officers, three different loans secured by one set of used equipment.
Royalties paid each week: in cash, only.
Why wait for the prey to emigrate? Go to the country of origin and sign them up under a federal fast-track investor immigration program.
A system so filthy that even the 5 chartered banks won’t self-fund the fraud-riddled Small Business Loan program. [CDN banks' involvement re: Enron]
Here is a frightening legal development.
Although Solhi is being investigated for criminal misleading advertising, according to the decision in R v. Stucky, which can be read here:
http://www.canlii.org/on/cas/onsc/2006/2006onsc16807.html
Solhi could not be prosecuted for directing his misleading advertising at US citizens, because the Judge ruled that the words “the public” in the Competition Act referred only to “the Canadian public.”
Bizzare!
Unfortunately plenty of scum are attracted to franchising, because it’s an easy way for them to rip people off. And they get away with it.
Thanks for exposing this guy. I wish more could be done to stop unethical franchisors.
Here’s another questionable franchise. If you check out the website http://www.adultdayservicesinc.com and contact the franchise locations listed you’ll find less than 1/2 of them in business and 1/2 of those open have filed to break their agreements based on lack of support and misrepresentation.
A lot of these folks have lost 100’s of thousands of dollars including their retirement or their kids college educations. Unfortunately, its really tough to stop people like this.
Thanks for giving us a place to spread the word.
This so called Anthony is now running some sort of food distribution scheme in Mississauga… he’s back!
CARVEL Ice Cream Franchise FRAUD!!!! My husband and I are victims of franchise fraud as well. Carvel corporation has turned there back on the situation because a man named Jerry Minio in Ft.Lauderdale Florida who ownes a Carvel on Cordova Place makes money for them. This Man has sold us a Carvel that he was never allowed to sell us according to Carvel. They closed us down after 8 months because they refused to discuss anything about the business with us. BEWARE OF CARVEL ICE CREAM AND JERRY MINIO. It is one BIG SCAM!!!!!!!
Bob;
Can you post or email more about the Mississauga situation.
Bob:
Can you please shoot me an email at info[at]ideafarm.net? I have a question you might be able to answer.
Kelly: Can you provide a bit more detail about what happened please? I don’t understand how someone could sell you a franchise and you could get up and running without Corporate approval. Could you please explain how the closed you down because “they refused to discuss anything about the business with us.”
Do you mean you violated their operating standards because you were improperly trained and/or supported?
Please elaborate.
Sean,
What has happen is Jerry Minio own’s a few Carvel’s and he decided to sell us one of them. He explained that he was selling us the franchise as well as the physical location through Carvcel’s approvel. We purchased this business and started to operate the store. Many Carvel regional marketing employees for new development had met my husband on several occasions. All our franchise fee’s were being paid by my husband and I through our bank accounts. I had asked Jerry Minio on SEVERAL occasions to please forward the franchise papers to me “he was supposedly working on with Carvel directly” he kept telling us that he has not had a chance to forward the papers. I after 8 months called Carvel corporation and spoke with Richard Key there VP of new marketing and development and his words were exactly to me and I have e-mails to prove this “You are NOT the owner of this franchise and Carvel had to approve this transaction and technically you are not allowed to run this location as owners under the Carvel trademark”.. He also said Jerry Minio was in breech of the franchise agreement because it clearly states that NO franchise owner is to transfer any Carvel without Carvels management prior written approval!!!!!!. I asked him well were does this leave me and he said flat out you are only a manager of this store and WE WILL NO LONGER DISCUSS THIS LOCATION WITH YOU OR YOUR HUSBAND. So can you explain to me how you run a franchise without any support about supplies or anything about the Carvel franchise??????? I could not even get ONE single person to help me with marketing because I DID NOT OWN THIS CARVEL FRANCHISE. I was told if I wanted to own this franchise I would need to meet there requirements for to be a franchise owner liquid. I spoke with CEO Focus Brands which ownes Carvel and Cinnabon and he said to me I’m so sorry to here about this and they do not want to get involved and they can not help. THIS IS ONE BIG SCAM and they have not revoked Jerry Minio’s franchise rights from him. Why not? well because he is making money for them!!!!!!!!!!! Carvel new all along about us purchasing this franchise and I have paper proof of this. I have filed a lawsuit at this point!
Kelly: Some questions:
Why’s Carvel to Blame?It’s standard practice that anyone buying an existing franchise has to go through the same approval process and be approved by the franchisor. There’s a process and a transfer fee involved. That would be spelled out in Jerry Minio’s franchise agreement with them. It sounds like your disagreement is with the franchisee, not with Carvel. They had no formal relationship with you – and no obligation or responsibility – from what you’ve said.
Who’s Luigi Miranotonda This listing was recently changed:
http://www.manta.com/coms2/dnbcompany_hnpj96
Detailed Carvel Ice Cream Company Profile
This company profile is for the private company Carvel Ice Cream, located in Hollywood, FL. Carvel Ice Cream’s line of business is retail ice cream shop.
Company Profile: Carvel Ice Cream
Year Started:1986
Location Type:Single Location
Also Does Business As:Carvel Ice Cream
NAICS:N/A
SIC #Code:5812
Est. Annual Sales:$51,000
Est. Employees:2
Est. Employees at Location:2
Contact Name:Luigi Miranotonda
Contact Title:Owner
Yes, My problem is with Jerry Minio the franchisee. I feel Carvel has allowed this man to continue to operate his Carvel in Ft.Lauderdale Florida on Cordova Drive after he has breeched there contract. That why I feel Carvel corporation is in the wrong. They also had knowledge of my husband and I running this business. Did it come across there mind “well why are these people running this franchise?” Didn’t a red flag go up when I spoke with regional people on several occations about marketing stradigies? They even set us up with a blog as “new owners” to chat with other Carvel owners. Not one singel person looked into this? I have no Idea who Luigi Miranotonda is. I know Jerry claims to have owned many other loctions like the hollywood location as well as another one in sunrise.
Well, it appears that this publication has been read by the owners of Adult Day Service, Inc in Wilmington, NC. Shortly after the comment was posted on January 8th, the franchisor changed her website. She delisted all of her franchisees and terminated email services without notification and has removed any reference to franchise sales from her website. Trying to cover her tracks?
While she continues to harm those who trusted her and bought franchises, I guess the good news is she’s not going to hurt anyone else..at least not with this franchise scam.
Does anyone know where’s Reza Solhi?
Colin:
I think it’s Michael Webster’s week to follow Mr. Solhi. Webster’s probably in a disguise, or on stake-out in his car with binoculars, drinking black Cuppy’s Coffee and eating leftover 3 for 1 Pizza, or in a nearby surveillance van recording illegal earnings claims.
Michael Webster is the expert on crooked Canucks, respected Canadian franchisee attorney. When he’s not on stake-out, putting a wire on an informant, listening to his police scanner for Solhi sightings or pigeon rustlers or practicing law, he can be found at his must-read blog THE BIZOP NEWS http://bizop.ca/blog2/ You can also reach him by phone 416-342-6144 or email: michael [at] bizop.ca
And since it is the policy of Franchise Pick that any generous plug for a respected colleague must be accompanied with sarcasm and a potentially disparaging implied association with dangerous felons, I must emphasize that I am referring to the Michael Webster who is a respected attorney and on the board of the venerable American Association of Franchisees and Dealers (AAFD), and NOT the Michael Webster who’s also known a Big Boy, Woody G, Jason Wright, who has a grim reaper and six-point star tattoo, who is a reputed member of the Black Gangster Disciples and made the 15 Most Wanted List before his capture in Belize. Despite the obvious physical similarities, I don’t believe they are related.
In the spirit of full disclosure, I must point out that I might not be the world-class Irish bicycle racer whose victories include a Grand Tour win, nine “Monument” victories and a record seven successive wins in the Paris-Nice stage race, nor the successful Art gallery owner, namesake of the best Irish pub in Montana, nor the brilliant satirical writer and editor of National Lampoon.
I do, however, enjoy riding bicycles (downhill), reading fine satiric writing, dabbling in original artwork (crayon) and am quite at home in any Irish pub I’ve encountered.
Hopefully, I’ve answered Colin’s question.
I am probably not the notorious whoever, but there is a Michael E. Webster in Toronto who is a criminal lawyer who represents notorious type criminals –I get calls from his clients seeking bail late on the weekends.
Anthony “Reza Solhi” is now running a business in Mississauga called “Five Star Brands Distribution Inc.”
He now hires people for days at a time and fires them without paying them. The Peel Regional Health Department is constantly investigating him because the food is stored without being refrigerated, and the cheese people order which is shredded is done on a disgusting dirty machine run by illegal immigrants.
If you want to go see the scumbag yourself (as of September 19, 2008 his address is:
375 Admiral Blvd.
Unit #2
Mississauga, Ontario
L5T 2N1
You can call him at:
(905) 565-5421 or Toll Free at: 1 (866) 444-0099
He’s not on admiral anymore but still in mississauga. I’m suing the bastard too and will post his new address after I’ve served him court documents.
if you need solhi’s new address, contact [Deleted per site comment policies]
Ed. note: Sorry but we don’t allow the posting of personal email addresses or other personal contact info. Even for fine folks like Reza Solhi
helen
how did you find out about the scumbag. Did he rip you off too? He’ll get what he deserves soon.
if I went to 6767 pacific circle in mississauga would I find Reza Solhi’s new operation? or if I called 416-518-0311 would I get his cohort Lynn Murphy?…just wondering!
If I went to [deletion] in mississauga, would I have to go to the shipping doors in the rear. Are the front doors locked?!?!?!
Who is this Lynn Murphy? can you explain? What is he role? I think i know her.
Lynn Murphy is his bookkeeper/office manager/cohort. Solhi is now telling people that she owns the company 5 star brands distribution, but he now is operating Quality Food distribution too.
I was wondering if Solhi is using the name “Tom”, or “Anthony” ??
he’s going by anthony right now. blain, how do u know about these individuals?
if I wanted to surprise solhi by showing up at his home in richmond hill, where would I go?
the peel region health inspector recently did an inspection and found nothing they could condemn…all food was in cans, nothing perishable unrefrigerated….damn!
I had a business deal with him…he ripped me off with a nsf cheque. Did some digging around and found out about his alias’ eg: bobby, sonny, tom, tony, anthony.
If I went to his homeland, Iran, & pulled the scams he’s done, would I have the blessing of the government, or have my criminal record erased, or jerk the superior court around?
does anybody know his license plate # for his green SUV?
He’s not driving these days, Lynn Murphy is acting as his personal chaufer in her Mazda. I think he’s sleeping at the warehouse on Pacific drive on most nights. When he needs to shower I believe he uses Lynn Murphy’s house.
I responded to job ad and the person was Lynn ….they said it was at 6767 Pacific Circle. I guess i would be wasting my time?!!
Don’t wast your time with them! If They are not paying their land lord , suppliers, and almost anyone else they come in contact with what makes you think they will pay employees right.
Lynn is lucky that any man would want to go to her house even if it’s only to shower. She is probably the least desirable female I’ve ever met He aint no babe magnet either!
Mybe that’s why she’s attracted to solhi..he uses her. Is her green suv license [del]?
[Admin. Note: Last warning, blain. Don't post personal contact info. Don't make personal attacks and insults on appearance, weight, etc. If you can't respect the few rules we have, please post elsewhere. Thanks.]
Thanks for all the info. I won’t be going for that job. You saved me from wasting my time.
pistelaro
how do you know about lynn putting up with solhi? ASre you Reza?
Sorry for posting personal information. In Canada, we’re accustomed to freedom of speech. I learned my lesson!!!
jackie
where did you find out about a job with 5 star brands? Mississauga news..toronto sun,..toronto star?
whichever one…run away fast
blain wrote: Sorry for posting personal information. In Canada, we’re accustomed to freedom of speech…
In the U.S. we’re accustomed to violence and getting sued. Posting personal info with the words “Happy Hunting” is a bit creepy, even when it’s regarding a creep.
Let’s keep to sharing how these scams work, what the latest entity is named, and what potential victims should look out for. It’s unlikely this leopard has changed his spots, especially when he continues to get away with it.
agreed.
Blain, no i’m not Reza lol. I was working for him. When it came to payday He gave me a cheque for one week even though it was suposed to be cash. When I left his office he called me back to get the cheque number but I just left because I didnt want to see his face again. So the bastard put a stop payment on the cheque because I didnt show him “respect” as he put it. They said i’ll get my pay in the mail, but i highly doubt it.
Something fishy’s going on. The cdn government agreed to drop all charges against him in exchange for his repaying just $500,000 to selected investors. I know he was recently charged with b & e, but it doesn’t show up in the police computers. I tried having him charged with theft & fraud but was told it’s a civil matter. Who is this guy & how come he has so much power?
The cdn government agreed to drop all charges against him in exchange for his repaying just $500,000 to selected investors. I know he was recently charged with b & e, but it doesn’t show up in the police computers. I tried having him charged with theft & fraud but was told it’s a civil matter. Who is this guy & how come he has so much power?
This is a question for Michael Webster, Canadian Attorney, Crimefighter and Blogger at The Biz-Opp News.
Michael… are you there? Come in, Michael…!
I have also invited Canadian franchising’s leading conspiracy theorist & self-proclaimed franchise fool Les Stewart to comment. Les blogs at Franchise Fool
Other questions: What is 5 Star Distribution? Why would any restaurateur deal with a guy with so much nationally televised bad press and multiple warning sites dedicated to him?
Is cheese from a dirty slicer that hard to come by in CA?
I have followed Mr. Solhi’s “career” since I was at a demonstration in front of a closed 3 for 1 Pizza & Wings outlet with Tony Martin and Howard Hampton, MPP in Toronto in 1998.
Conspiracy Theory Alert: He operates with impunity because prosecuting him would reveal some very unsavoury and embarrassing commercial activity in Ontario.
Only a fool believes that there is a significant organized crime element in the ON franchise industry that has been incubated by the unintended mentorship of what I have defined as Big Franchising.
That’s why I call myself the FranchiseFool.
solhi uses telemarketers to rope people into dealing with him. The warehouse which stores his paper, styrofoam, foil, & plastic products is a vile, disgusting, stagnant cess pool. Restauranteurs deal with 5 star without knowing he’s behind it. If articles were on tv, it was a few years ago. He sells for cheap, no tax, so people buy it up. After hearing about his food handling practices, I’m now totally off pizzas. When I go into a restaurant now, I ask if they deal with 5 star!!! So far, I’ve been lucky.
les stewart
thanks for being the first to mention organized crime in ontario. I agree with your statements but I can’t help but wonder are we putting our heads on the chopping block? If he’s “sanctioned” by the gov’t for fear of being embarrassed, will the RCMP come banging on our doors telling us to back off?
Blain,
We get the type of white-collar laws and crime enforcement that we are prepared to fight for.
I think that the vast majority of coppers, politicians and lawyers want to do the right thing: but they need our support.
Without small groups of clever amateurs holding people’s feet to the fire, I think Mother Teresa would be corrupted by the cash flow.
I’m in the book.
Les Stewart
Midhurst, ON
1. Criminal convictions are generally based upon people willing to testify. After Solhi promised some $500k in restitution, the witnesses shut up. Unfortunately, the $500k came from ripping off other prospective franchisees. After spending all the time and money on the first investigation, the Police declined to do another investigation.
2. Solhi survives because of the multicultural nature of Toronto and his contacts within the Iranian subculture. He is, however, a pig.
3. When cheese prices hit an all time high, many pizza operators were happy to find an “alternative” source of cheese. Good time to buy your own.
4. Solhi was enabled in his fraud by several lawyers, and I was able to successfully sue one of them for failure to warn.
Keep up the good work, Blaine.
was one of the defendant lawyer’s initials “J. C. H”.? I hear he’s a real piece of work too…. bottom feeders like him give your profession a bad name. Any thoughts on my plaintiff claim? I think that solhi would rip up the court papers & laugh it off, get Lynn to take him to lunch & plan his next scam.