All American Pet Company Inc (AAPT)

[Scumbag Fraudsters]

Who was the "APPC Investor"?

Between May 2015 and August 2015, Bershan and Margulies discussed with an investor who had invested in AAPC (the "AAPC Investor") an opportunity to recoup his losses by investing in Starship. To induce his investment, they knowingly, recklessly, or negligently misrepresented that Starship was in negotiations to be acquired by or partner with Monster, the energy drink manufacturer. They explained that Monster was interested in Starship's caffeinated snacks and that Coke, having recently acquired a portion of Monster, was looking for a product with which to compete with Pepsi in the snack business.

In and around August 2015, Bershan and Margulies provided the AAPC Investor with offering documents, including a term sheet, describing the offering of securities, and which included Bershan's personal guarantee that protected investors from "any downside loss of principal." Specifically, Bershan provided the AAPC Investor with a written "Share Price Guarantee" in which she personally agreed to buy back the shares purchased, at the original "discounted" purchase price of $3 .00 per share, if, on the one-year anniversary of the investment, the purchased shares had not achieved a capitalized value of $23.00 to $25.00 per share. In addition, pursuant to the personal guarantee, Bershan agreed to pay the AAPS Investor 5% interest and to make both payments within 10 working days ofthe investor's redemption request. Bershan and Margulies also represented in an email that, because of the personal guarantee, the investment had "no down-side risk."


In addition, Bershan and Margulies presented to the AAPC Investor the Starship term sheet, which set the purchase price at $5.00 per share, but offered a discount price of $3.00 per share, and promised (i) annual financial statements and "narrative update reports from Company management" to all investors; (ii) quarterly financial and narrative update reports from management; and (iii) inspection rights to "Major Investors" who invested at least $25,000.

Based on the foregoing material representations, the AAPC Investor invested $25,000 in Starship on or about August 21, 2015.

https://www.sec.gov/litigation/complaints/2017/comp-pr2017-193.pdf


Always nice to see typos in an official charging document ("AAPS Investor").



Now I feel somewhat better about the amount of $$$ I lost - I wasn’t the biggest sucker after all.