NYC Street Food Vendors Expose Permit Scammer: What You Need to Know!

In New York City, a troubling scam has emerged that preys on new food vendors, especially recent immigrants trying to establish their small businesses. A man has been accused of offering them access to a highly desired city permit, only to take their money and vanish.

This scheme exploits a longstanding grey market for food vending permits. Currently, there are only about 7,000 two-year permits available in the city, with demand greatly exceeding supply. Some vendors say they’ve paid as much as $25,000 in underground markets to get their hands on a permit. Carina Kaufman-Gutierrez from the Street Vendor Project notes, “There’s no paperwork, and this has been happening under the city’s radar for years.”

Many of the targeted vendors feel intimidated about reporting the crime. They are often unsure how to approach authorities or fear it might affect their chances of doing business legally. Now, several vendors are stepping forward, sharing their painful experiences.

One vendor lost $8,000 to the scammer, while another shared a story of paying $9,000 without ever receiving the promised permit. “I lost my business, my money, my location,” one emotionally recounts.

This situation is exacerbated by the fact that inspections for food carts still occur. For many, this is where the scammer lures them into the transaction, promising a permit that never materializes. The Street Vendor Project is now raising awareness on social media, alerting others that at least 16 vendors have already fallen victim.

Reports indicate that this scam is not isolated to New York City. According to a 2021 survey by the National Association of Small Business Owners, nearly 30% of small vendors across the country have faced some form of fraud. This highlights a broader issue of vulnerability among small business owners who often lack the resources to protect themselves.

The accused scam artist, despite facing multiple small claims court cases, has not been publicly identified as a suspect in any criminal activities, which raises questions about the effectiveness of reporting these scams.

Vendors want others to be aware of the risks and are urging their communities to speak out against such injustices. The hope is that by shedding light on this issue, others can avoid the heartache and losses that so many have already suffered.

For more details on how to protect yourself from scams, visit the Federal Trade Commission’s guide on fraud prevention.

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