The Great Subway Robbery: A $80 Million Kickback Scheme Exposed
In a scandal that has rocked the Subway franchise community, prosecutors have unveiled a massive fraud scheme involving millions of dollars in kickbacks siphoned from franchise owners. Janet Risi Field, the woman responsible for purchasing supplies on behalf of Subway franchisees, and her brother Steven Louis Risi, have been indicted by a federal grand jury for orchestrating what has been dubbed the “Great Subway Robbery.”
Janet Risi Field, 66, founded and led Independent Purchasing Cooperative (IPC), a nonprofit entity tasked with negotiating supply deals for Subway franchisees, from 1996 until her termination in 2021. IPC’s mission was straightforward: secure the lowest possible prices for Subway owners across the United States and North America. However, investigations revealed a disturbing breach of trust.
The Scheme Uncovered
According to reports from NBC 6 South Florida, the siblings allegedly orchestrated a complex network of secret deals with vendor brokers. Rather than passing savings to franchisees, Risi Field is accused of accepting substantial kickbacks — with shell companies collecting more than $60 million over the years. These illicit funds financed a lavish lifestyle including multiple homes in Florida and North Carolina, expensive jewelry, private club memberships, and even covered personal staff such as a housekeeper, handyman, and personal assistant.
Despite being fired by IPC’s board in 2021 for reasons unrelated to the fraud, Risi Field left the organization with over $6 million in severance pay, while the fraudulent scheme remained undetected for years. The indictment alleges that the siblings’ actions have cost Subway franchisees over $80 million, with potential prison sentences of up to 20 years looming for both.
Impact on Subway Franchisees and the Industry
It’s notable that the indictment does not directly name Subway as a party in the fraud but refers to it descriptively as “an American multinational fast-food chain that specialized in submarine sandwiches and had over 20,000 locations in North America.” This distinction emphasizes that the crime targeted franchisees individually rather than the corporate entity itself.
The case shines a spotlight on vendor and supplier fraud risks within franchise systems, underscoring the importance of transparency and oversight. Subway franchisees relied heavily on IPC to negotiate fair pricing and trusted that their purchasing cooperative would act in their best interests.
For franchise owners and prospective buyers, understanding the risks associated with vendor relationships is critical. Entrepreneur provides valuable resources on how to combat common supplier fraud schemes, as well as lists of trusted franchise suppliers to help ensure business integrity and profitability.
Looking Ahead: Lessons and Resources
This scandal serves as a cautionary tale about the potential vulnerabilities in franchise supply chains. It highlights the necessity for robust governance, regular audits, and vigilance from both franchisees and franchisors to prevent similar abuses.
For those interested in exploring reliable supply partners, see Entrepreneur’s Top Franchise Suppliers of 2026. Staying informed and partnering with reputable vendors can safeguard businesses against costly fraud.
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