Somebody Made Millions Selling In-N-Out Franchises That Didn't Exist

As Richie Rich can surely attest, the only thing sweeter than making some hard-earned money is making that same money without having to actually work. After all, who the hell would want to toil away at some job when they could just as easily finesse their way into large sums of money?

Which happens to be what one California resident evidently thought when he decided to make millions by selling the rights to In-N-Out franchises. The problem was that this fraudster didn't actually own the rights to the franchises. Hell, he had never even spoken to a single person at the California-based fast food chain. In fact, In-N-Out isn't even a franchise.

Earlier this week, 56-year-old Newport Beach, California native Craig Stevens was sentenced to two years in prison after pleading guilty to wire fraud for the solicitation of more than $4.27 million from swindled investors. During the trial, Stevens admitted to scamming investors by having them fund nonexistent In-N-Out franchises in the Middle East.

Stevens got his Matchstick Men on by informing potential investors that they could purchase their very own franchise in the Middle East for the fabulous cost of $150,000 per location. That's a damn steal, even considering the yearly royalty of $250,000 that Stevens insisted on.

Too bad In-N-Out is a privately held company and has literally zero franchisees in the five states it operates in. Stevens actually does not have any connections or agreements with In-N-Out. The tricky fraudster was indicted as part of an FBI investigation and admitted to contacting an undisclosed Lebanese person to arrange fraudulent licensing agreements.

This is far from the only case of fraud involving an American fast-food chain in the Middle East. We recently reported on a bootleg KFC opening in Iran, only to be closed within 24 hours. The establishment had absolutely no legitimate connection to the Colonel's legitimate Kentucky-based corporation, either.

There's all kinds of fraud involved in the world of franchises—from misrepresentation of likely sales to faulty financial reporting—but selling franchises when you have no relation to the company in question is what you might call animal-style fraud.

So, if anyone tries to get you involved in an In-N-Out franchise situation, know this: the company, founded in 1948, has resisted both franchising and going public. It only has locations in California, Arizona, Nevada, Utah, Texas, and Oregon.

To get your double-double on, you will not be heading to Beirut or Jeddah or Dubai. Instead, think Vegas, Laguna Hills, or Austin.