Performance Drink Group Inc (PDPG)

[QaB2i]

Enforcement Actions
Five Arrested in Investment Fraud Scheme
On October 28, 2014, federal grand jury indictments were unsealed against defendants Christopher Anzalone, Jeffrey Schuler, Jacob Bradshaw, Todd Kearns, David O. Boyce and Benjamin Williams.

The defendants were charged with various offenses including mail fraud, wire fraud and conspiracy to commit mail and wire
fraud. As of October 28, each of the defendants had been arrested pursuant to the indictments. The charges they face stem from their involvement in an elaborate fraud scheme involving purported investments in precious metals and
stocks.

The investments were sold under various corporate names including
Liberty International Holdings Corporation (LIHC), Liberty International Financial Services (LIFS), Allied Strategies, Inc., Allied Marketing, LLC, and DBA Clearing LLC. The OFR’s investigation was related to Allied Marketing, LLC, and Allied
Strategies, Inc. (Allied). Allied’s bank records along with investors’ sworn statements revealed that defendants raised $3.3 million from 23 Allied investors within a six month period (March - October 2013). Allied investors were led to believe that LIHC stock had value due to the company’s holdings in real estate
and/or precious metals, when in actual fact, LIHC had no holdings in real estate or precious metals. The review of financial records revealed that the money raised by Allied from investors was never used for the purposes represented to the investors, but instead was used to pay sales commissions and for Anzalone’s
personal living expenses. This OFR investigation was developed jointly with the FBI.

The U.S. Attorney’s Office in Miami is prosecuting the case.
USAO Press Release: Five Charged in $16 Million Investment Fraud
http://www.justice.gov/usao/fls/PressReleases/141029-01.html