Founder Of Purported Snack And Pet Food Companies Sentenced To 7 Years In Prison For Defrauding

[TexasTowelie]

Founder Of Purported Snack And Pet Food Companies Sentenced To 7 Years In Prison For Defrauding Investors Of More Than $2.9 Million

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LISA BERSHAN was sentenced to 7 years in prison on Friday, November 22 by U.S. District Judge Jed S. Rakoff for participating in two schemes to defraud more than 50 investors in the Starship Snacks Corporation and the All American Pet Company of more than $2.9 million, by making false and fraudulent representations about, among other things, the status of the companies’ products, guarantees that purportedly backed the investments, and the interest of large multi-national corporations in acquiring the companies. BERSHAN was also sentenced for using the stolen identities of three individuals to commit the All American Pet Company scheme, money laundering, illegally receiving a firearm in New York without the proper licenses, and conspiracy to distribute and to possess with the intent to distribute cocaine.

U.S. Attorney Geoffrey Berman said: “Lisa Bershan defrauded more than 50 investors of more than $2.9 million by making materially false representations about the snack and pet food companies she purportedly ran. As part of her schemes, she and her co-conspirators used other people’s identities and created a slew of falsified documents to lure their victims. When victims poured money into purported business bank accounts Bershan controlled, she used those bank accounts as her personal piggy bank, spending the money to finance her lavish lifestyle of luxury real estate, jewelry, plastic surgery, and clothing. But Bershan’s crimes didn’t end with fraud. She also pled guilty to and was sentenced for serious firearms and narcotics distribution offenses. Lisa Bershan’s crime spree has come to an end, and she now faces a significant prison term for her crimes.”

According to the allegations contained in the superseding Information filed against LISA BERSHAN and statements made in related court filings and proceedings, including the trial of co-defendant Joel Margulies:

The All American Pet Company Fraud Scheme

From October 2013 through May 2017, BERSHAN, Joel Margulies, and a co-conspirator raised more than $575,000 in purported loans for the All American Pet Company (“AAPT”), a penny-stock company that produced, marketed, and sold food bars and other products for dogs, based on the following misrepresentations, among others: (a) that the Internal Revenue Service (“IRS”) had accepted an “offer in compromise” from AAPT that significantly reduced the back taxes AAPT owed to the IRS; (b) that BERSHAN had paid to the IRS the amount of this offer in compromise and had thus absolved AAPT of its outstanding tax liability; (c) that BERSHAN was the beneficial owner of a bank account containing over $6.9 million; (d) that BERSHAN would personally guarantee some of the loans; and (e) that Nestlé USA had proposed various business deals with AAPT. BERSHAN held herself out as president and chief executive officer of AAPT at various times.

Read more: https://www.justice.gov/usao-sdny/pr/founder-purported-snack-and-pet-food-companies-sentenced-7-years-prison-defrauding