On occasion, I have discussed the importance of performing “due diligence” in choosing to purchase, or even affiliate oneself with any work at home enterprise. The first step of any investigatory process is a review of the financial, legal, tax consequences, environment and marketplace effectiveness of the company that offers the work at home product or service.

You have an implied public liability in offering any product or service for sale. Even though you may only be a sales agent for the company represented, a “duty of care” is implied through any transaction you may make on their behalf. That is, if you, knowingly or not, offer a defective product or service that harms the public, you may be held legally liable and subject to criminal or civil litigation.

Those licensing work at home schemes are subject to increased scrutiny in today’s marketplace. A recent story about a Pennsylvania couple illustrates the point. This pair was sentenced to more than 22 months in prison after pleading guilty to concealment of a felony. They were sentenced to time served for bilking 77,000 people out of $3 million and ordered to pay more than $293,600 in restitution while awaiting sentencing.

The company charged a $31 “registration fee” and an additional $100 for a kit that contained enough material to make 60 cat magnets. A sample magnet also was available for $12. People who assembled the magnets and sent them to National Home Assemblers expecting payment instead received a letter rejecting the magnets as having been shipped past an artificial due date, or claiming the magnets did not meet inspection standards.

After receiving complaints, U.S. postal inspectors searched the business and found buildings filled with returned magnets. Victims’ losses ranged from $12 to $2,000. The U.S. Attorney’s Office has received nearly 3,000 requests for restitution. The pair pleaded guilty to conspiracy to commit mail fraud, which carries a maximum sentence of five years in prison.

search for : concealment of a felony, National Home Assemblers, conspiracy to commit mail fraud