An Auckland man accused of a franchising scam affecting more than 170 people is to stand trial on the charges.
A former contractor for the franchise Green Acres, Keith Lapham, pleaded not guilty to three fraud charges at a depositions hearing at the Auckland District Court on Monday, where he was committed to stand trial.
The Serious Fraud Office accuses Mr Lapham of obtaining more than $3.5 million by deception when he granted sub-franchises in 2007.
The SFO accuses him of guaranteeing buyers $650 a week that he knew he could not pay.
It also claims he told four people there were less sub-franchises in operation than there actually were, which lead them to buy one.
A third charge alleges Mr Lapham obtained $244,800 from Green Acres by making false claims about how many sub-franchises he had granted.
Mr Lapham will re-appear for pre-trial hearing in July.
Civil case
In a separate case, victims of the alleged franchising scam are taking the company to court in a bid to get their money back.
A group of more than 60 people who purchased franchises from Mr Lapham are taking civil action against Green Acres.
A lawyer for the group says pre-trial hearings are being held at the High Court in Auckland.
