Ponzi scheme unwinds in Real Time on Blue MauMau

Interesting times over at Blue MauMau for franchisor Dale Nabors of Cuppy’s Coffee and More as he responds to allegations of running a Ponzi fraud (see Cuppy’s Speaks Out on Accusations, SBT, AAFD and More).

Janet Sparks is one of the most experienced and knowledgable franchise journalists there is. Period. She is a real professional that is not afraid of many of the things that go bump-in-the franchise night.

I think it is the best if Mr. Nabors speaks for himself and I would encourage everyone to read this whole story:

“I’m putting money into the company, and the company is putting money into the projects. In a roundabout way I guess it’s fair to say yes, I am putting money into the company to cover some of these projects. But these are very few projects.”

In a posting entitled Cuppy’s Fraud, Michael Webster (see Misleading Advertising Law) responds in a blunt and  thoroughly unCanadian fashion:

  • When Nabors says “he was having to put capital into the businesses to keep them moving forward, and some of those monies in turn are used for construction and build out. He said there had been projects that monies were paid on and those monies went into a general operating account and were not used specific for a project.” this is an admission of fraud.

Webster goes on:

You cannot take money borrowed by A to pay off building out B, although you can certainly count on the support of B when that happens or is promised to happen.

This is not a construction company pretending to be a franchise company.

This is a construction ponzi scheme
, taking funds from later investors, paying off earlier investors, pretending to be a franchise company.

These related entities are insolvent and the creditors need to shut this mess down immediately, appoint a receiver and come to an equitable solution.

Nabors call for more time is the typical whine of a ponzi operator. [my emphasis and format]

His allegations are numerous, serious and very interesting. Take a close look. I have worked with Michael Webster for several years. He is a very careful person, a skilled litigator and fraud investigator. The last guy I’d want to oppose in a biz op or franchise swindle, if I were so inclined.

4 Responses to Ponzi scheme unwinds in Real Time on Blue MauMau

  1. Carol Cross says:

    What is your take on this, Les?

    Is Michael trying to defend the indefensible as Sean Kelly of Franchise Pick indicates? Did the AAFD fail to do their due diligence on Cuppy’s? Can Dale succeed if the terms of the franchise agreements that have been signed protect him from recourse from the cheated franchisees? Was AAFD more interested in selling “product” than in protecting franchisees?

    Always, the authorities have a conflict of interest. Public policy intends to stand up the franchisor and the franchisees who succeed, and failed or failing or defrauded franchisees are not generally permitted to take down the franchisor and the healthy franchisees in any offered legal solution at state or federal level.



  2. franchisefool says:


    I do not know what everyone’s motivations are here. I just know that I am glad not to be in any way associated with this franchise system. I try to not read too much into these situations. I wish Dale the best but, gosh, it does look dark right now for him, doesn’t it?



  3. Lindsey says:

    I remember back when Dale first came on as a consultant & mentioned he use to work for the Dwyer Group in Texas several years back. Some of the higher up managers at Medina were concerned about this new consultant coming on board & investigated/called Dwyer Group. Their comment was that they did remember Dale but that he NEVER AMOUNTED TO MUCH & WAS LET GO. That should have been a RED FLAG for Morg at the time. But I guess not. Dale has proven to be an absolute weasel & coward! He tells people such bull (this includes zees, s-employees, current employees, media) that I believe he truly believes his on crap! WHAT A JOKE THIS SO-CALLED MAN HAS PROVEN TO BE. I truly feel sorry for his family. WHEN A PERSON CAN NOT STAND UP AND ADMIT THAT THEY HAVE BITEN OFF MORE THAN THEY CAN CHEW & JUST LAY IT OUT FOR EVERYONE SO THEY CAN MAKE OTHER ARRANGEMENTS… PLUS THIS SAME PERSON CONTINUE TO TELL PEOPLE LIES SO THEY WILL SEND IN MORE MONEY… ALL I CAN SAY IS THIS PERSON IS THE BIGGEST COWARD I HAVE EVER KNOWN!!!! Even if Dale did this now, he has waited tooooooooooo long and most zees are bankrupt because of his delays and deceit. Again… What a coward!!!


  4. Lindsey says:

    Latest Update…. The sky has fallen on Dale Nabor’s Dream Team in AL. Dale has finally gotten up enough nerve to meet with the employees that followed him up to Muscle Shoals, AL and told them he can NOT get the money to pay them. But he wanted to know who would continue to work for him for FREE. Has he lost his mind totally? He also told them if they would not stay and work free he did not want them to blog him. WTF????!!!!! He’s an arrogant sh it!! So… now there are NO employees at Cuppy’s/Elite/Medina! Dale is still trying to sell Elite contracts to Brian Hayes. But remember franchisees… Brian Hayes/SBT or whatever name they go by these days is overcharging you for buildout and equipment. Your best bet is to take whatever loss you have now and sue Morg/Dale/Medina/Fransynergy and try to recoup your deposit moneys. Cuppy’s is dead! Even if a franchisee let SBT continue to build them out, I would NOT call it Cuppy’s. Cuppy’s has an awful name and I don’t even think God himself can raise that dead franchise. Franchisee please listen up… you need to join together to get justice. There are more people out here willing to help you get that justice than you may think. Good luck to you zees and to the employees that followed Dale to AL and had work for 2 months without pay. I wish you all well.


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