One Source Vendor Solutions LLC Reports & Reviews (1)
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SCAMPULSE
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SCAMPULSE
If you know any contact information for One Source Vendor Solutions LLC, help other victims by adding it!
Scammer's website onesourcevs.com
Scammer's address 21900 Burbank Blvd. Suite 300 Woodland Hills CA 91367, Woodland Hills, CA 91367, USA
Scammer's email [email protected]
Country United States
Victim Location CA 91701, USA
Total money lost $1,000
Type of a scam Investment
In the Craigslist advertisement, Zapata made misleading earnings claims. The advertisement included the headline: "Make [$]*** a year doing coffee routes!!!" The advertisement also repeatedly included a claim that purchasers would "Make $*** a month on your first cycle! Make [$]*** a month after 1 year!" Zapata failed to provide any reasonable basis for the business opportunity's projected earnings.
Zapata omitted material information about the business opportunity that was being offered. The Craigslist advertisement stated that Redsolutions would pay for the business and the products and equipment, but Zapata failed to disclose the projected costs of operating the business opportunity. The Craigslist advertisement also referenced a $*** program fee, but stated that everyone would be approved
and in-house financing would be provided. However, Zapata failed to disclose the terms of any available financing.
In the Craigslist adve1iisement, Zapata misrepresented that "Redsolutions operates in EVERY city and EVERY state in the USA." Zapata also misrepresented that the business opportunity was risk-free. The Craigslist advertisement stated that the opportunity had a money-back guarantee with "NO RISK!!!" In fact, the business opportunity had material risks, including the possible loss of the entire investment.
During the same time period of the Craigslist ads, Zapata advertised the business opportunity on a second Internet website with additional false or misleading claims. In October 2017, Zapata misleadingly advertised that for a "small set up fee of $*** you can jump right into the commercial coffee services industry ... with a whopping 15 to 20 accounts and 'without spending a dime." The advertisement failed to disclose the purchaser's costs of operating the business opportunity, including, but not limited to, mileage, communications expenses, and business formation costs. In the Internet advertisement, Zapata omitted other material information about the business opportunity that was being offered. The advertisement indicated that insurance would be available to purchasers, but it failed to disclose the source, the type, or the amount of any available insurance coverage.
In the Internet advertisement, Zapata included a misleading statement that a route license could be sold for "huge" sums of money after it reached maturity. Zapata failed to provide a reasonable basis for the projected increase in value or provide a timeline for the expected return.
Additional Undisclosed Material Information.
When offering the Redsolutions business opportunity, Zapata failed to disclose other material
risks of the business opportunity, including, but not limited to, competition; the unknown operating history, legal status, and financial condition of Redsolutions, the company offering the business opportunity; the operating costs and expected revenues for the coffee delivery business being offered (including delivery and service costs and the anticipated revenues for any specific routes); regulatory compliance risks; personal
liability risks; litigation risks; and the risks of inexperience with operating a coffee delivery business.
Failure to Respond to an Investigative Subpoena.
In November 2017, the Securities Division served a subpoena on Zapata, which required the production of records relating to the offer and sale of Redsolutions business opportunities to any Washington investors. Zapata failed to respond to the subpoena.
Registration Status
Zapata and Redsolutions have never been registered to sell business opportunities in Washington. Based upon the above Tentative Findings of Fact, the following Conclusions of Law are made:
CONCLUSIONS OF LAW
The offer of the opportunity described above constitutes the offer of a business opportunity 3 as defined in RCW 19.110.020(1).
4 2. Respondent Joseph Zapata has violated RCW 19 .110 by offering and selling business opportunities without being registered with the Securities Administrator to do so. Respondent Joseph Zapata has violated RCW 19.110.120 by making a untrue or misleading statement of a material fact or to omitting to state a material fact in connection with the offer, sale, or lease of a business opportunity in the state of Washington.
NOTICE OF INTENT TO ORDER THE RESPONDENT TO CEASE AND DESIST
Based upon the above Tentative Findings of Fact and Conclusions of Law, the Securities
Administrator intends to order that Respondent Joseph Zapata, and his agents and employees each shall
cease and desist from violations ofRCW 19.110.050 and RCW 19.110.120.
AUTHORITY AND PROCEDURE
This Statement of Charges is entered pursuant to the provisions ofRCW19.110.150 and is subject to
the provisions of Chapter 34.05 RCW. The Respondent, Joseph Zapata, may make a written request for a
hearing as set forth in the NOTICE OF OPPORTUNITY TO DEFEND AND OPPORTUNITY FOR
HEARING accompanying this order. If the Respondent does not make a hearing request in the time
allowed, the Securities Administrator intends to adopt the above Tentative Findings of Fact and Conclusions of Law as final and to enter a permanent order to cease and desist as to that Respondent.
Approved by:
Suzanne Sarason
Chief of Enforcement
Reviewed by:
Robert Kondrat
Financial Legal Examiner Supervisor