FALL RIVER, Mass. (WBZ NewsRadio) — A Taunton man has been arraigned in connection with a scheme that defrauded third party buyers of vending machine routes out of approximately $187,500.
Kevin Lennon, 54, of Taunton, was arraigned Monday in Bristol Superior Court on three counts of Larceny Over $1200 and two counts of Publishing of False or Exaggerated Statements Prohibited.
Lennon is the President and sole officer of vending machine company KBL, Inc. When Lennon took over the business in the last decade, he began dedicating a large part of it towards selling off "vending routes"—locations where KBL had already set up vending machines—to third party buyers who wanted to run an established vending route as a small business and collect profits from the machines.
Massachusetts Attorney General Maura Healey's Office released a statement alleging that Lennon "made false promises to multiple third party buyers about expected profits from the machines using false promotions, fraudulent misrepresentations, and fabricated financial statements."
"In the case of two victims," the statement continues, "Lennon induced them to pay him tens of thousands of dollars for essentially worthless routes based upon fabricated documentation, including spreadsheets, of past profits at the vending locations they purchased. With a third victim, Lennon agreed to resell his routes and machines after they failed to perform as promised, but after entrusting the routes to Lennon for that purpose, the victim learned that Lennon resold one of the victim’s vending routes to a third party and kept all the proceeds of that sale for himself."
Lennon was released on his own personal recognizance. The investigation is ongoing.