FALL RIVER – The owner of a food and beverage vending machine company has been indicted and arraigned in connection with a scheme that defrauded third party buyers of vending routes out of approximately $187,500, Attorney General Maura Healey announced today.
Kevin Lennon, 54, of Taunton, was indicted on May 6 by a statewide Grand Jury on charges of Larceny Over $1200 (3 counts) and Publishing of False or Exaggerated Statements Prohibited (2 counts). He was arraigned Monday in Bristol Superior Court. Judge William White released Lennon on his own personal recognizance with the conditions that he stay away from and have no contact with the victims and witnesses; surrender his passport; refrain from travel outside of Massachusetts or Rhode Island without court permission; and report the sale of any material assets of his business to the court and the Commonwealth.
Lennon is the President and sole officer of KBL, Inc., a vending machine company that was started over 30 years ago as a family-run business installing and servicing vending machines at commercial businesses, offices, hospitals, and other locations throughout Massachusetts. Over the last decade, when Lennon took over exclusive control of the business, he began focusing a large part of the business on selling off “vending routes” – locations where KBL had already set up and was running vending machines – to third party buyers. The buyers were individuals who wanted to purchase and run an established vending route as a small business and expected to collect profits from the sales of food and drinks from the machines.
The AG’s Office alleges that through a sophisticated scheme, Lennon made false promises to multiple third-party buyers about expected profits from the machines using false promotions, fraudulent misrepresentations, and fabricated financial statements. Since at least 2017, Lennon allegedly defrauded multiple victims who purchased vending machine routes from KBL out of approximately $187,500. In the case of two victims, 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.
This matter is being prosecuted by Assistant Attorney General Gretchen Brodigan of the AG’s White Collar and Public Integrity Division and Victim Witness Advocate Megan Murphy. The case was investigated by Director of Financial Investigations Sallyann Nelligan of the AG’s Financial Investigations Division and State Police assigned to the AG’s Office. The Taunton Police Department referred the case to the Attorney General and provided valuable assistance to the investigation.
This investigation is ongoing. Any individuals who feel they may have been victimized by this defendant are encouraged to file an online complaint with the AG’s office.