Newport Beach Man Imprisoned for Bilking Investors with Bogus Mid East In-N-Out Burger Franchises

A 56-year-old Newport Beach was sentenced to 24 months in federal prison for bilking investors of millions with false promises of opening In-N-Out Burger franchises in the Middle East.

Stevens was sentenced Monday after pleading guilty in June to one count of wire fraud, admitting that he fraudulently solicited more than $4.27 million from investors who were told that each franchise cost approximately $150,000, plus another $250,000 per year for royalties.

Throughout last year, Craig Stevens carried out a scheme to solicit prospective investors to acquire In-N-Out franchises in the Middle East.

Stevens “well knew” he did not own any franchising rights and wasn’t authorized to represent In-N-Out, an Irvine-based, privately held company, but solicited the $4.27 million from “less than 10 investors,” according to the U.S. Attorney’s Office.