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Friday, November 19, 2004 7:51 AM
Cooking Up A Scam 11/18/04
(CBS 6) — They're the organizations that spend their time doing for others. But our I-Team discovered a Watervliet business man's accused of ripping these groups off. Plus, crushing the dreams of some would-be entrepreneurs: Sound of fire radio Sure they answer the usual calls... Sound of truck pulling in But these firefighters also answer other calls from the community — raising money for sick and missing children. By cooking. Capt. Jerry Stephen/Rock City Falls F.D.: "We have been doing catering for the past seven years." So, when Rock City Falls' fire department needed equipment....it looked here: Sound of yellow pages ...and gave AAA Restaurant Equipment of Watervliet 1079 bucks for new stuff. But, it says what it got was not only "used." It was unusable. Jerry Stephen/Rock City Falls F.D.: "It actually looked like it came out of a landfill." And they're far from alone. Maria Leonard/Barefoot Gypsy Cafe: "It's absolutely devastating." The Barefoot Gypsy's owner says AAA's Michael Osborne almost put her cafe under. Maria Leonard/Barefoot Gypsy Cafe: "He's a pirhanna. He just comes in for the kill — and he does it really well." Leonard says she gave Osborne 20-thousand bucks for used goods and got this kind of stuff in return. Maria Leonard/Barefoot Gypsy Bistro: "It's over 20 years old...no longer manufactured....was spray painted to look new." After hiring a lawyer, she settled with Osborne for much less than she wanted — and got most of her money. But she warns....he's a smooth talker. Maria Leonard/Barefoot Gypsy Bistro: "He claims he's a good person...he goes to church." Actually, our I-Team discovered he did go to this church. Rev. Wade Petteys/Gateway Pentecostal Church: "He's not a very good businessman." The Gateway Pentecostal Church in Corinth.... Sound of water ...where Reverend Wade Petteys says he returned junk Osborne brought and got some replacements. Sound of dishwasher door But this dishwasher still doesn't work. So, Osborne owes them 15-hundred dollars. Osborne called and promised to send a check soon — after he learned we were doing this story. Rev. Wade Petteys/Gateway Pentecostal Church: "I'll believe it when the check clears the bank." And that's not the only man of the cloth who's got a complaint. Minister James McDowell/Albany "He pretty much fooled me." After all....Minister James McDowell and his wife dreamed of opening a cafe in Albany's South End. A dream they say Osborne crushed... Minister James McDowell/Albany: "We put a lot of trust in him and his company...to deliver the equipment once they were given their payments. He just never delivered on it." The New York State Attorney General's Office records 11 complaints against AAA Equipment since 2001. But when we went to his Watervliet warehouse...His landlord said he was kicking Osborne out for not paying rent... and that he's changed his business name again to Restaurant Direct. Nats "Mister Osbourne...yes?" We caught up with Osborne answering two of his judgments in Watervliet. Michael Osborne: "I'm going to pay them today." Amy: "You're going to pay the Rock City Falls Fire Department?" Michael Osborne: "Yup, yup...not a problem." Amy: "What about all these other people who say you owe them money? Michael Osborne: "It's just small claims court — it's just a small little matter." We asked him about Minister James McDowell... Michael Osborne "Yeah, we already sent him a check." And the church? Michael Osborne "They were sent a check yesterday too." Our I-Team learned those both were lies. Amy: "You know these people say you're a chronic thief...and ripping businesses off across the Capital Region and beyond." Michael Osborne: "That doesn't make sense...everybody's being taken care of." Osborne insisted in person — and in this letter — that his happy customers outweigh the mad...and the problem is some have unrealistic expectations about used stuff. Michael Osborne/AAA Restaurant Equipment: "Things just started going bad — we got unlucky with equipment." Osborne did give the Fire Department and a Saratoga Springs shop owner post-dated checks in court. And eventually said this: Michael Osborne/AAA Restaurant Equipment "I apologize." John Galt accepted that — after not getting chairs he ordered. John Galt/Healthy Nation, Saratoga Springs: "I think he's truly sorry this happened, that's what I think." The firefighters weren't so forgiving. But Reverend Petteys says...no matter what happens in all these cases...things have a way of taking care of themselves. Rev. Wade Petteys/Gateway Pentecostal Church: "In the end, a man reaps what he sows." Reverend Petteys just called us to say Osborne brought him 600 dollars in cash...and gave him a check for a thousand dollars — postdated to December 2nd. The fire department's check — and the Saratoga shop owner's check — are postdated to the end of this week. Meanwhile...Osborne tells us he will not sell used equipment anymore — and new investors are helping him pay these debts.
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A Subscription to Scam? 5/25/05
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