SOUTHWEST FLORIDA - Caroline Peacock says she bought a "lemon" when she decided to buy a local business.

Peacock sold her home health business so she could buy another business that would make more money and require far less time and work to maintain. Now she says she's $260 thousand dollars in the hole, and she wants other people to beware.

Adult gaming facility "Jackpot City" in Cape Coral seemed like a lucky investment for Peacock. She says her business broker Tom Gerber gave her a financial statement showing Jackpot City was bringing in $200 thousand a year.

"It was an unbelievable opportunity according to Mr. Gerber," Peacock told CALL FOR ACTION.

She paid $310 thousand dollars cash for a business she says she was assured was profitable.

"The very first day we took over the business I realized that the business did not generate enough money to pay the rent," Peacock explained.

Peacock says she tried to keep the doors open. "I did everything I possibly could. I cut corners. I did work myself. When an employee would move or resign, I would fill in their shift. I've never been paid a penny for any work I did at Jackpot City, so no it was not possible. The competition is too stiff," Peacock told CALL FOR ACTION.

Peacock has spent months in mediation trying to resolve the situation and even has complained to the Florida Department of Business and Professional Regulation. DPBR wrote Peacock back to tell her "the information presented does not address a concern with sufficient evidence for this agency to prosecute a case."

Peacock says she's upset she didn't get the real financial statement for the company. "Who would spend $325 thousand for a business that's losing $5 thousand per month?"

CALL FOR ACTION made repeated attempts to contact Mr. Gerber over several days, he emailed us this three page written statement Monday afternoon. Mr. Gerber tells us he is a licensed real estate agent with no complaints ever filed against him. He says Ms. Peacock was told the value of the business was based on unaudited reports and attorneys have reviewed the documentation showing that the business was making a profit.

Click here to read Mr. Gerber's entire response

If you're considering buying a small business, make sure you do your homework about the company's financial situation.

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