May 10, 2005

Mega-Franchisee Found Guilty of Fraud in Corruption Case

According to The Detroit News Online, former fast-food mogul La-Van Hawkins of Hawkins Food Group, which owned more than 150 Checkers stores, 100 Pizza Hut franchises and 28 Burger King restaurants, was convicted of lying to a grand jury and wire fraud in the recent corruption case against Philadelphia's former treasurer Corey Kemp. The perjury and fraud charges against Hawkins stemmed from two checks that he sent Kemp in 2002 when Kemp was treasurer. Hawkins was also accused of conspiring with others to bribe Kemp and fraudulently representing to others that he had access to money from Philadelphia's city pension fund. In 2000, Hawkins sued Burger King for fraud and breach of contract, alleging that Burger King was using underhanded tactics to keep Hawkins from further expanding his business. The parties eventually settled that case, and Hawkins was forced to sell his Burger King franchises.

Posted by franchiselawblog at May 10, 2005 10:21 AM