A Long Island salesman found guilty of fraudulently selling vending machine businesses has been sentenced to 3 years in prison, the U.S. Department of Justice said Thursday.
Richard R. Goldberg, 44, of Holbrook, also was ordered to serve 3 years of supervised release and to pay nearly $550,000 in restitution, officials said.
Goldberg was found guilty of conspiracy and wire fraud after a six-week trial in 2015, officials said.
The sentence was imposed by U.S. District Court Judge Joan M. Azrack in federal court in Central Islip, the department said.
“The defendant enticed people to pay $10,000 or more for a business that he promised would be prosperous, when he knew it was likely to fail,” said acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division.
Goldberg worked at the Deer Park firm Multivend LLC, also known as Vendstar, which made about $10 million to $12 million in sales annually before closing in July 2010, prosecutors said. He is one of 24 defendants who have been convicted of fraud in connection with the company, officials said.
Company sales representatives sometimes lied and claimed they had their own profitable vending routes, and misled investors about the quality of locations and other aspects of the business, prosecutors said.