According to the FTC, Fidelity claimed that ATM purchasers would earn substantial profits after ATM locations were secured within 45 days. The ATMs were reportedly to be installed and operational in the same time period, and Fidelity allegedly said it would relocate underperforming machines.
The FTC's complaint also claims that Fidelity did not make required Franchise Rule disclosures and had no substantiation for its earnings claims.
"Bogus business opportunities trample on Americans' dreams of financial independence," said FTC chairman Deborah Platt Majoras. "If a business opportunity promises no risk, little effort and big profits, it almost certainly is a scam. These scams offer only a money pit, where no matter how much time and money is invested, consumers never achieve the riches and financial freedom promised."
A December notice filed by Fidelity's temporary receiver says that Fidelity on Nov. 30 ceased all ongoing business.
