FBI Investigation of Former Domino's Executive. According to pizzamarketplace.com, the FBI is conducting a fraud investigation of former Domino's Pizza executive Tom Burnham. Burnham's former partner, Eric Wortham, told pizzamarketplace.com that he and Burnham were partners in the franchise company, Pizza World. Although Wortham later got of his dealings with Burnham, he says that Burnham cost him $1.8 million in a stock offering, $100,000 in attorneys' fees and his professional reputation. After only a year of working together, Wortham, the president and CEO of Pizza World, had no control over the company and Burnham controlled everything. By the end, Burnham abandoned the company and assigned the trademark back to Wortham. Pizza World has 12 franchises in the St. Louis area. This msn.com article also reports on three former investors in the Pizza World public offering who took their investment findings to the Manatee County, Florida sheriff's office and prompted the FBI investigation of Burnham. Burnham has filed a $10 million lawsuit against the three investors for defamation and interference with business relations.
Posted by franchiselawblog at November 13, 2003 12:00 PM