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Conspiracy to Commit Wire Fraud with Respect to AAPT Wire Fraud with Respect to AAPT Aggravated Identity Theft Conspiracy to Commit Securities Fraud and Wire Fraud with Respect to Starship Securities Fraud with Respect to Starship Wire Fraud with Respect to Starship Money Laundering with Respect to AAPT and Starship Conspiracy to Distribute Cocaine Illegal Receipt in State of Residence of Firearm Purchased or Acquired Outside of State of Residency Bershan is facing a maximum sentence of 132 years in prison although a sentence of that length is extremely unlikely. Her sentence will be determined by U.S. District Judge Robert Sweet in April.
Why would I need to DD further? You really have no capacity to rational thought do you? I'm saying the exact same thing as you are saying, are you so arrogant and ignorant that you must continue an argument that is non existent?
Too FUNNY! No DD?
REVIEW:
SEC Complaint: Lisa Bershan, Barry B. Schwartz, and Joel J ...
Securities and Exchange Commission v. Bershan et al New York Southern District Court Judge: John G Koeltl Case #: 1:17-cv-07793 Nature of Suit 850 Other Statutes - Securities/Commodities/Exchange Cause 15:77 Securities Fraud Case Filed: Oct 11, 2017
Securities and Exchange Commission v. Bershan et al New York Southern District Court Judge: John G Koeltl Case #: 1:17-cv-07793 Nature of Suit 850 Other Statutes - Securities/Commodities/Exchange Cause 15:77 Securities Fraud Case Filed: Oct 11, 2017
The bond was later increased to $150,000 and his wife was required to cosign after it was revealed that Margulies had sent an email to a former investor in an unrelated company called All American Pet Co. in an apparent attempt to raise money after his arrest in the Starship Snacks case.
At a hearing held on Friday, December 22, 2017, before United States District Judge Robert W. Sweet, recently indicted married couple Lisa Bershan and Barry B. Schwartz were granted bail under the following conditions: $50,000 cash, electronic monitoring with home detention, surrender of passports, travel restrictions, surrender of firearms, and no contact with their alleged victims or co-defendant Joel J. Margulies.
Three weeks earlier at another session before Judge Sweet, attorneys for Bershan and Schwartz had requested that they be released on their own recognizance to stay at a rented apartment in New Jersey. Assistant U.S. Attorney Robert Allen opposed that application on the grounds that they are a flight risk.
Bershan and Schwartz were released from Metropolitan Correctional Center on January 2, 2018.
No trial date has been set.
BAIL INCREASE for Joel:
On October 11, 2017, Joel J. Margulies, 73, of Murfreesboro, Tennessee, was arrested and charged with securities fraud, wire fraud, and conspiracy to commit those offenses in connection with an alleged scheme to defraud investors in the Starship Snacks company. According to the complaint, Margulies was held out as an employee and marketing expert. He faces up to 20 years in prison if convicted of the charges against him.
At his first appearance in Manhattan federal court on October 25, 2017, Margulies plead not guilty.
During a discussion about bail for Margulies, Assistant U.S. Attorney Robert Allen reported that Margulies purchased a firearm for co-defendant Lisa Bershan, and that he forged a document from Deutsche Bank in order to help Bershan purchase a residence.
Magistrate Judge Ronald L. Ellis eventually imposed a bond of $50,000 secured by Margulies’ home.
The bond was later increased to $150,000 and his wife was required to cosign after it was revealed that Margulies had sent an email to a former investor in an unrelated company called All American Pet Co. in an apparent attempt to raise money after his arrest in the Starship Snacks case.
Docket last updated: 9 hours ago Wednesday, January 17, 2018 27 order Order on Motion to Stay Wed 2:35 PM ORDER granting24 Motion to Stay. As stated at the conference on January 16, 2018, this case is stayed pending resolution of the criminal case against the defendants. (Signed by Judge John G. Koeltl on 1/16/2018) (mml) Friday, January 12, 2018 26 1 pgs order Order on Motion for Miscellaneous Relief Tue 8:42 AM MEMO ENDORSED ORDER granting23 Motion for allow the defendant, Joel Margulies, to participate by telephone. ENDORSEMENT: Application Granted. So Ordered. (Signed by Judge John G. Koeltl on 1/12/18) (yv) Thursday, January 11, 2018 25 misc Pre-Conference Statement Thu 3:50 PM PRE-CONFERENCE STATEMENT Related [+] . Document filed by Securities and Exchange Commission.(Hong, Richard) Wednesday, January 10, 2018 24 motion Stay Thu 8:55 AM NOTICE OF MOTION; re: to Stay the SEC civil case 17cv7793 JGK) against Joel Margulies until there is a resolution of the criminal action pending in the S.D.N.Y. (17CR638). Document filed by Joel J. Margulies.(sc) 23 motion Miscellaneous Relief Thu 8:51 AM NOTICE OF MOTION; re: to allow the defendant, Joel Margulies, to participate by telephone until the resolution of the Federal Criminal case is resolved in the Southern District(17CR638). Document filed by Joel J. Margulies.(sc) Tuesday, January 09, 2018 22 respm Response to Motion Tue 11:42 AM RESPONSE to Motion re:19 MOTION to Intervene and to Stay . . Document filed by Securities and Exchange Commission. (Hong, Richard) Friday, January 05, 2018 21 1 pgs order Order on Motion to Intervene Fri 12:18 PM MEMO ENDORSEMENT on NOTICE OF MOTION with respect to19 Motion to Intervene. ENDORSEMENT: The parties should respond to this motion by 1/12/18. The Government may reply by 1/17/18. The Court will hear the motion on 1/19/18 at 2:30 P.M. So Ordered. (Signed by Judge John G. Koeltl on 1/4/2018) (anc) utility Set Motion and R&R Deadlines/Hearings Fri 12:19 PM Set/Reset Deadlines as to19 MOTION to Intervene and to Stay : Responses due by 1/12/2018. Replies due by 1/17/2018. Motion Hearing set for 1/19/2018 at 02:30 PM before Judge John G. Koeltl. (anc) Wednesday, January 03, 2018 20 11 pgs respm Memorandum of Law in Support of Motion Wed 11:11 AM MEMORANDUM OF LAW in Support re:19 MOTION to Intervene and to Stay . . Document filed by UNITED STATES OF AMERICA. (Allen, Robert) 19 motion Intervene Wed 11:10 AM MOTION to Intervene and to Stay . Document filed by UNITED STATES OF AMERICA.(Allen, Robert)
USA v. Bershan et al New York Southern District Court Case #: 1:17-cr-00638 Case Filed: Oct 13, 2017 Docket Parties (4) Last checked: Friday Nov 17, 2017 8:15 PM EST Defendant Lisa Bershan (1) Represented By Christopher Paul Madiou Law Offices Of Christopher Madiou contact info Defendant Joel Margulies (3) Represented By Julia L. Gatto Federal Defenders Of New York Inc. (nyc) contact info Defendant Barry Schwartz (2) Represented By Susan Katherine Marcus Law Office Of Susan K. Marcus contact info Plaintiff USA Represented By Robert Wood Allen U.S. Attorney'S Office, Sdny contact info Continue to Create Account
Hello, Pinky Buster, can you find the link you posted a month or so ago about the previous owner taking over Carmelas. The last PR stated they are still running as a subsidiary under Carmelas.
Note that any "partnership" must be listed:
Entity Number Business Name Type Original Filing Date Expiry Date Status Business Location County State 4067092 Business Name CARMELA'S PIZZERIA FICTITIOUS NAMES 08/30/2017 08/30/2022 Active - - - 2258108 Business Name CARMELA'S PIZZERIA CO, INC. FOREIGN CORPORATION 01/03/2014 - Active - - COLORADO 1437902 Business Name CARMELAS PIZZERIA FICTITIOUS NAMES 01/28/2004 01/28/2014 Cancelled - Filings Filing Type Date of Filing Document Number/Image FOREIGN LICENSE/FOR-PROFIT 01/03/2014 201400802398 FICTITIOUS NAME/ORIGINAL FILING 08/30/2017 201724102998 FICTITIOUS NAME/ORIGINAL FILING 08/30/2017 201724200064 FICTITIOUS NAME/ORIGINAL FILING 09/14/2017 201725700378
NEW YORK CRIME Founders of Starship Snacks Arrested And Charged With Securities And Wire Fraud
Founders of Starship Snacks Arrested And Charged With Securities And Wire Fraud
Lisa Bershan, President and CEO of Starship Snacks Corp. On Wednesday, October 11, 2017, the Justice Department announced the arrest and unsealing of a 3-count indictment against Lisa Bershan, 65, her husband Barry B. Schwartz, 71, and Joel J. Margulies, 72. The trio is charged with securities fraud, wire fraud, and conspiracy to commit those offenses.
According to the complaint filed in Manhattan federal court, the defendants created the Starship Snacks company with the stated goal of developing and marketing caffeinated chocolate snacks. Over a two-year period they raised more than $2 million from around 50 investors based on misrepresentations including that investments in Starship were guaranteed against losses, and that Starship was going to be acquired by Monster Beverage Corporation, a publicly traded company best known as the manufacturer of Monster Energy drink. The complaint also alleges that Starship was not engaged in actual business operations, and had no intellectual property.
Lisa Bershan was held out as the President, CEO, and founder of Starship, Schwartz was the Secretary, and Margulies was an employee and marketing expert.
The defendants allegedly represented to investors that they could purchase shares in Starship with no downside risk because the company and Lisa Bershan would repurchase shares at the original $3 purchase price plus 5% interest after one year if the shares failed to meet lofty expectations. Bershan allegedly sent an email to a prospective investor containing an image of herself inside a mansion with the subject line “Take the house”, and another email containing images of the interior and exterior of the same house with the subject line “Just a glimpse- my parents sure as hell didn’t leave me this”.
In August 2015, Margulies allegedly sent an email to an investor that stated that representatives of Monster wanted to develop a caffeinated snack and had asked Bershan to develop the product.
In October 2015, he allegedly sent an email to multiple investors announcing that a deal had been reached for a one to one share exchange of Starship for Monster. Monster traded at around $45 a share at the time.
According to FBI Special Agent Angela Tassone, Lisa Bershan did not own the home depicted in the emails to potential investors, Bershan never worked for Monster, and Starship was never involved in negotiations with Monster.
The defendants are also accused of misappropriating investor funds for personal expenses including $39,098 spent on plastic surgery, $37,433 spent on pet care, $11,913 paid to a Mercedes dealership, and $282,965 spent on rent for a Manhattan apartment.
If found guilty of securities or wire fraud, the defendants could face up to 20 years in prison. The charges also carry a maximum fine of $5 million.
Assistant U.S. Attorney Robert Allen is in charge of the prosecution.
The defendants are presumed innocent until proven guilty.
In a separate action, the SEC filed civil charges against Bershan, Schwartz, and Margulies. Among other things, the complaint states that “investors in Starship…lost their money” and seeks a final judgement ordering the defendants to give up their ill-gotten gains and to pay civil penalties. The complaint also demands a trial by jury. According to the SEC, venue lies in the Southern District of New York because Bershan and Schwartz opened bank accounts in the name of Starship in the District, and investor funds were wired to those accounts. The complaint also reveals that Bershan and Schwartz reside in San Diego, California, and that Margulies resides in Murfreesboro, Tennessee. Posted on November 5, 2017 Tags Con Artists, Securities Fraud, Starship Snacks Leave a comment on Founders of Starship Snacks Arrested And Charged With Securities And Wire Fraud CONTACT
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Securities and Exchange Commission v. Bershan et al
Securities and Exchange Commission v. Bershan et al New York Southern District Court Judge: John G Koeltl Case #: 1:17-cv-07793 Nature of Suit 850 Other Statutes - Securities/Commodities/Exchange Cause 15:77 Securities Fraud Case Filed: Oct 11, 2017 Docket Parties (4) Docket last updated: 11/17/2017 11:59 PM EST Wednesday, November 08, 2017 14 notice Notice of Hearing Wed 6:26 PM NOTICE OF COURT CONFERENCE: You are directed to appear for a pretrial conference, to be held on Monday, December 18, 2017, in Courtroom 128, at 4:30pm in front of the Honorable John G. Koeltl. All requests for adjournments must be made in writing to the Court. For any further information, please contact the Court at (212) 805-0107. Pretrial Conference set for 12/18/2017 at 4:30 PM in Courtroom 12B, 500 Pearl Street, New York, NY 10007 before Judge John G. Koeltl. (ap) Friday, November 03, 2017 13 service Affidavit of Service Complaints Fri 1:27 PM AFFIDAVIT OF SERVICE of Summons and Complaint. Barry B. Schwartz served on 11/2/2017, answer due 11/24/2017. Service was accepted by Defendant Barry B. Schwartz. Document filed by Securities and Exchange Commission. (Hong, Richard) 12 service Affidavit of Service Complaints Fri 1:25 PM AFFIDAVIT OF SERVICE of Summons and Complaint. Lisa Bershan served on 11/2/2017, answer due 11/24/2017. Service was accepted by Defendant Lisa Bershan. Document filed by Securities and Exchange Commission. (Hong, Richard) Tuesday, October 24, 2017 11 service Affidavit of Service Complaints Tue 7:50 AM AFFIDAVIT OF SERVICE of Summons and Complaint. Joel J. Margulies served on 10/19/2017, answer due 11/9/2017. Service was accepted by Defendant, Joel J. Margulies. Document filed by Securities and Exchange Commission. (Hong, Richard) Thursday, October 12, 2017 10 notice Notice of Appearance Thu 3:22 PM NOTICE OF APPEARANCE by Cynthia Anne Matthews on behalf of Securities and Exchange Commission. (Matthews, Cynthia) Wednesday, October 11, 2017 9 service Summons Issued Thu 11:04 AM ELECTRONIC SUMMONS ISSUED as to Barry B. Schwartz. (sj) 8 service Summons Issued Thu 11:02 AM ELECTRONIC SUMMONS ISSUED as to Joel J. Margulies. (sj) 7 service Summons Issued Thu 11:00 AM ELECTRONIC SUMMONS ISSUED as to Lisa Bershan. (sj) 6 notice Notice of Appearance Wed 2:55 PM NOTICE OF APPEARANCE by Richard S. Hong on behalf of Securities and Exchange Commission. (Hong, Richard) 5 service Request for Issuance of Summons Wed 2:31 PM REQUEST FOR ISSUANCE OF SUMMONS as to Barry B. Schwartz, re:1 Complaint. Document filed by Securities and Exchange Commission. (Mehraban, Lara) 4 service Request for Issuance of Summons Wed 2:30 PM REQUEST FOR ISSUANCE OF SUMMONS as to Joel J. Margulies, re:1 Complaint. Document filed by Securities and Exchange Commission. (Mehraban, Lara) 3 service Request for Issuance of Summons Wed 2:28 PM REQUEST FOR ISSUANCE OF SUMMONS as to Lisa Bershan, re:1 Complaint. Document filed by Securities and Exchange Commission. (Mehraban, Lara) 2 misc Civil Cover Sheet Wed 2:22 PM CIVIL COVER SHEET filed. (Mehraban, Lara) 1 cmp Complaint Wed 2:21 PM COMPLAINT against Lisa Bershan, Joel J. Margulies, Barry B. Schwartz. Document filed by Securities and Exchange Commission.(Mehraban, Lara) notice Case Opening Initial Assignment Notice Thu 10:36 AM CASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge John G. Koeltl. Please download and review the Individual Practices of the assigned District Judge, located at[LINK:http://nysd.uscourts.gov/judges/District] . Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at[LINK:http://nysd.uscourts.gov/ecf_filing.php] . (sj) utility Case Designation Thu 10:37 AM Magistrate Judge Andrew J. Peck is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link:[LINK:http://nysd.uscourts.gov/forms.php] . (sj) utility Case Designated ECF Thu 10:37 AM Case Designated ECF. (sj) Continue to Create Account
Acting Manhattan U.S. Attorney And FBI Assistant Director Announce Securities And Wire Fraud Charges Against Founders Of Purported Snack Business
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging LISA BERSHAN, BARRY SCHWARTZ, and JOEL MARGULIES with securities fraud, wire fraud, and conspiracy to commit those offenses in connection with a scheme to defraud investors in a company variously called The Awake Company and Starship Snacks (“Starship”).
BERSHAN and SCHWARTZ were presented earlier today in federal court in Atlanta, and MARGULIES was presented earlier today in federal court in Tennessee.
In a separate action, the SEC filed civil charges against BERSHAN, SCHWARTZ, and MARGULIES.
Acting U.S. Attorney Joon H. Kim said: “As alleged, while promising a sure thing, in the form of guaranteed returns, the defendants were actually selling nothing but lies. Instead of using investors’ money to grow the business, they allegedly spent it on plastic surgeries, jewelry, and cars. Thanks to the terrific investigative work of the FBI, the defendants will now have to answer in court for their lies.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Bershan, Schwartz, and Margulies allegedly led investors to believe their company was on a guaranteed path to success. To further support their claim, as charged today, they promised to buy back any shares that didn’t appreciate within a year, including a supplemental interest payment of five percent. Samples of chocolate intended to represent the caffeinated snack they had supposedly developed were provided to some for good measure, but the chocolate was void of its key ingredient. In the end the numbers didn’t add up as this sweet deal turned sour.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
As alleged, BERSHAN, SCHWARTZ, and MARGULIES created Starship with the stated goal of marketing and selling a caffeinated chocolate snack. BERSHAN, SCHWARTZ, and MARGULIES subsequently raised over $2 million from investors by telling them that their investments in Starship would be personally guaranteed against any losses; that Starship was on the verge of a lucrative acquisition by another entity, Monster Beverage Corp. (“Monster”); and that Starship’s signature product had been developed successfully. All of these representations were false and misleading. Starship had no ability to honor the guarantees that it and BERSHAN made to investors. It was never in talks with Monster to be acquired. And it had never developed or engaged a third party to develop its caffeinated snack. After receiving investor monies, moreover, BERSHAN, SCHWARTZ, and MARGULIES used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, and luxury housing in New York City.
Beginning in August 2015, BERSHAN, MARGULIES, and SCHWARTZ began soliciting investments in Starship. In order to assure investors that their investments in Starship would be safe, BERSHAN sent investors images of herself in what appeared to be a mansion with subject lines like, “Just a glimpse – my parents sure as hell didn’t leave me this.” BERSHAN and MARGULIES also signed investment documents providing that “[t]he Company and Lisa Bershan, its founder, have committed to repurchase” investors’ shares at the price that they had paid for them if they had not appreciated within a year, and further guaranteeing that “Lisa Bershan . . . [would] add an interest payment of 5%” in such an event. These guarantees were not made in good faith, as neither BERSHAN nor Starship had any significant assets or ability to honor the guarantees they were making. To the contrary, BERSHAN had unpaid tax liabilities and multiple outstanding civil judgments (and did not actually own the mansion that, as discussed above, she implicitly held out to investors as her own).
In addition to making bogus guarantees, BERSHAN, SCHWARTZ, and MARGULIES also told investors that Starship was in discussions to be acquired by Monster, and that this transaction would take place through a one-to-one exchange of Starship stock for Monster stock. In October 2015, for example, MARGULIES sent an email to multiple investors that sought additional investments and expressly stated, “[t]he deal as I am certain you have heard is done thanks in no small part to the extraordinary talents and skills of our CEO, Lisa Bershan. If you are not aware of the deal, it is a one to one --- share for share exchange of [Starship] for Monster after a six month holding period of [Starship] shares.” Given that Monster’s stock was, at the time, trading at many multiples of the $3 per share that Starship’s investors initially paid at the time, this purported transaction would result in tremendous gains for Starship investors. But there was no basis for the claim that the “deal . . . [was] done.” Starship was never acquired by Monster or any other entity, and, indeed, was never in negotiations with Monster.
Finally, BERSHAN, SCWHARTZ, and MARGULIES misrepresented the nature and progress of Starship’s purported business to investors. BERSHAN, SCHWARTZ, and MARGULIES told investors that Starship had developed its caffeinated chocolate snack, when, in reality, it had not done so. Indeed, in order to mislead investors into thinking that the product was further along than it actually was, BERSHAN, SCHWARTZ, and MARGULIES actually provided samples of normal chocolates to certain investors, falsely telling them that the chocolates were caffeinated as per Starship’s business plan.
In total, BERSHAN, SCHWARTZ, and MARGULIES raised over approximately $2 million from investors based on these false representations. Much of this amount was simply misappropriated by BERSHAN and SCHWARTZ (or paid to MARGULIES). Between August 2015 and July 2017, for example, BERSHAN and SCHWARTZ spent over $39,000 on plastic surgery; over $209,000 on retail purchases, including jewelry, clothes, and interior decorating; over $11,900 at a Mercedes dealership; and hundreds of thousands of dollars on luxury housing.
* * *
MARGULIES, 72, of Murfreesboro, Tennessee, BERSHAN, 65, and SCHWARTZ, 71, are each charged with one count of conspiring to commit securities and wire fraud, which carries a maximum prison sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation. Attachment(s): Download U.S. v. Bershan et al. complaint.pdf Topic(s): Securities, Commodities, & Investment Fraud Component(s): USAO - New York, Southern Press Release Number: 17-332
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