Joe Smith and Dennis Mason are the two principal fraudsters behind the NY Bagel Scam.
Joseph V. Smith aka Joe Smith aka Joe Bagels is the President of the various corporate entities used to promote the NY Bagel Café & Deli franchise concept (also promoted as NYC Bagel & Sandwich Shop). He is formerly of Newburgh, NY and claims to currently reside in Fishkill, NY. Learn more about him here: NY Bagel Joe Smith
Dennis K. Mason is believed to be 73 years old (born 04/14/1945) and a current resident of Frenchtown, NJ. He is a franchise salesman, broker and owner of Franchises Unlimited. Dennis Mason has been getting sued for misleading and defrauding franchise investors for decades now. He uses numerous aliases including Brian Schofield, Keith Samuels, Denis Mason & others, Learn more about him here: Dennis Mason and here Dennis Mason Franchise Complaints.
After investigating their illegal franchise sales activities, the State of Washington, Department of Financial Institutions issued Final Orders against NY Bagel Café, Joseph K. Smith & Dennis Mason which contained this summary of their legal and financial history:
10. New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason have at least the following legal and financial history:
a. From 1987 to 2009, Dennis K. Mason filed for bankruptcy twice. He was also named as a defendant in at least ten commercial lawsuits, nearly all alleging fraud in connection with the offer and sale of
franchises. The Superior Court of New Jersey destroyed the records for three of these cases, but the defendants were found liable or settled the claims in the other seven lawsuits.
b. In 2011, an arbitrator ruled against New York Bagel Enterprises, ordering the company to fully refund the franchisee’s $29,500 franchise fee
c. In 2011, an arbitrator awarded a franchisee a $22,000 judgment against New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason in a dispute related to the franchisee’s New York Bagel Enterprises franchise.
d. In 2011, a franchisee sued New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason in connection with his purchase of a New York Bagel Enterprises franchise. In 2013, a court ruled that New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason violated the New Jersey Franchisee Practices Act and the New Jersey Consumer Fraud Act and entered a judgment against the defendants.
e. In 2011, franchisees sued New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason for fraud, negligent misrepresentation, violations of the New Jersey Consumer Fraud Act and the Pennsylvania Unfair Trade Practices and Consumer Protection Law, and breach of contract in connection with the sale of a New York Bagel Enterprises franchise in Pennsylvania. In 2012, the parties settled the lawsuit.
f. In 2012, a franchisee sued New York Bagel Enterprises, Joseph V. Smith, and Dennis K Mason for violations of the North Carolina Deceptive Trade Practices Act in connection with the defendant’s sale of a New York Bagel Enterprises franchise. In 2013, a court entered default judgment of $839,976.96 against New York Bagel Enterprises Joseph V Smith and Dennis K Mason finding that the defendants willfully violated the North Carolina Deceptive Trade Practices Act.
g. In 2012, franchises sued New York Bagel Enterprises, Joseph V. Smith, and Dennis IC. Mason for violations of New York State General Business Law in connection with the sale of a New York Bagel Enterprises franchise in New York. In 2014, a judge ruled that New York Bagel Enterprises, Joseph V. Smith and Dennis K Mason violated New York State General Business Law.
h. In 2013, an arbitrator issued a franchisee an award against New york Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason in a dispute related to the franchisee’s New york Bagel enterprises franchise.
i. In 2013, franchisees sued New York Bagel Enterprises and Joseph V. Smith for violations of the New Jersey Franchisee Practices Act, fraud , unjust enrichment, and breach of contract in connection with the sale of a New York Bagel Enterprises franchise in New Jersey. A default judgment was entered against New York Bagel Enterprises and Joseph V. Smith that same year.
j. In 2015, franchisees sued New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason for fraud, negligent misrepresentation, violations of the New Jersey Consumer Fraud Act and the New Jersey Franchise Practices Act, breach of contract, and unjust enrichment in connection with the sale of a New York Bagel Enterprises franchise. In 2016, a default’ judgment was entered against New York Bagel Enterprises.
k. In 2015, the Securities Division of the Office of the Attorney General of Maryland issued an Order to Show Cause against New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason alleging fraud in connection with the sale of a New York Bagel Enterprises franchise in Maryland. In 2015, the Maryland Securities Commissioner issued a Final Order against New York Bagel Enterprises, Joseph V. Smith, and Dennis K. Mason after they failed to respond to the Order to Show Cause. The Final Order ordered that New York Bagel Enterprises Joseph V Smith and Dennis K Mason permanently cease and desist from violations of the Maryland Franchise Law.
l. In 2016, the State Corporation Commission of thee Commonwealth of Virginia issued a Rule to Show Cause against New York Bagel Enterprises, Joseph V Smith and Dennis Mason alleging fraud in connection with the sale of New York Bagel Enterprises franchises in Virginia. In 2017, the State Corporation Commission issued a Judgment Order against New York Bagel Enterprises, Joseph V. Smith and Dennis K Mason after they failed to appear at a hearing on the Rule to Show Cause. The Judgment Order assessed a total of $675,000 in fines and $20,899.33 in costs against New York Bagel Enterprises, Joseph V. Smith, and Dennis K Mason, ordered restitution for New York Bagel Enterprises franchises in Virginia, and permanently enjoined New York Bagel Enterprises from operating any franchises in Virginia.
11. Many of the franchisees involved in the lawsuits described above first learned about the opportunity to purchase a franchise through online advertisements.
12. In the lawsuits described above, in many instances, the plaintiffs have been unable to collect on their judgments, and the defendants are not current in many of their settlement payments.
