26 Apr 2010

$8 million sought over franchising scam

2:43 pm on 26 April 2010

A group of people claiming to be the victims of a Green Acres franchising scam are seeking compensation of more than $8 million.

Former Green Acres contractor Keith Lapham, who is alleged to be behind the scam, is facing three fraud charges after an investigation by the Serious Fraud Office.

In a seperate case, a group of 62 people who purchased franchises from Mr Lapham are taking civil action against Green Acres.

A spokesperson for the company says it will vigorously defend the claim and says the figure of $8 million is grossly inflated.

The company says the group is claiming expectation damages from lost income but because there were never any contracts, such a claim does not hold up.