Starship Snacks, Corp – SEC Files Charges Related to Investment Scam | Goodman & Nekvasil P.A. May Recover Investor Losses
Securities and Exchange Commission Files Charges in Starship Snacks Corp. Investment Scam
ACCORDING TO THE SEC:
The Securities and Exchange Commission charged three individuals who defrauded investors in a company that falsely claimed to be developing a caffeinated chocolate snack and nearing an acquisition by Monster Energy or Coca-Cola Co.
Beginning in approximately August 2015 through June 2017, Bershan, Schwartz, and Margulies, who controlled Starship Snacks, Corp. (” Starship”), orchestrated a fraudulent scheme, in which they conned more than 35 investors into investing over $2.2 million in Starship, a company that purportedly was developing and marketing a caffeinated chocolate snack.
The SEC’s complaint alleges that Lisa Bershan and her husband, Barry Schwartz, together with business associate Joel Margulies, falsely promised investors that after being acquired, Starship Snack Corp. investors would get a one-to-one exchange of Starship Snacks Corp. shares for Monster or Coca-Cola shares. According to the SEC’s complaint, Bershan and Margulies also falsely claimed that investors had “no down-side risk” and Bershan personally guaranteed that investors could get their investment back with 5 percent interest if the shares failed to appreciate over a year.
Moreover, Bershan’s personal ” Share Price Guarantee” was false and/or misleading. Investors were not able to recoup the “guaranteed” return of their investment plus interest at any time. Bershan and Schwartz (Bershan’s husband) had misappropriated and dissipated investor funds, through their withdrawal of over $1 million in cash and their use of the remainder to maintain an extravagant lifestyle. In short, investors in Starship Snacks Corp. did not get what Defendants had promised them and they lost their money.
According to the SEC’s complaint, Starship Snack Corp. had no agreement with Monster Energy or Coca-Cola, and Bershan and Schwartz used investor funds as their own personal piggy bank, spending them to rent and decorate a New York City apartment, and on travel, meals, and other personal expenses.
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York announced criminal charges against the three defendants.
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If you incurred investment losses in Starship Snacks Corp. and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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