According to the government, Starship and All American Pet Co. Schwartz, Bershan, and Margulies were also involved in another company called All American Pet Co. Read an earlier post about the case here. Schwartz and Bershan also allegedly used investor funds for personal expenses including plastic surgery, pet care, rent for an apartment in Manhattan, and a down payment on a home in Florida. According to the government, Starship was never involved in negotiations with Monster. In October 2016 Schwartz hosted a conference call with investors where he stated that Starship had received an offer from Monster but Bershan had rejected it and they were continuing to negotiate with Monster. The trio raised more than $2 million from investors based on misrepresentations including that investments in Starship were guaranteed against losses, that Starship was in talks to be acquired by Monster Beverage Corporation, and that Starship had successfully developed its signature product. Schwartz’s wife Lisa Bershan was the CEO, President, and founder, Schwartz was the Secretary, and Joel Margulies was an employee and marketing expert. The criminal complaint against Barry SchwartzĪccording to the criminal complaint from October 2017, Starship was formed to develop and market caffeinated chocolate snacks. Schwartz is scheduled to be sentenced on December 12, 2019.Īt the plea hearing, Schwartz admitted that he agreed to make material false statements in connection with a private offering of securities in Starship, and that he knew what he was doing was illegal. The government agreed to drop all other charges pending against him. Under a plea deal with the government, Schwartz agreed to a sentencing range of 41 to 51 months in prison, a fine of $15,000 to $150,000, and restitution of $2,163,214. Around 10 months after a grand jury handed down indictments against the founders of the Starship Snacks company, Barry Schwartz, 72, pled guilty to one count of conspiring to commit securities fraud and wire fraud in Manhattan federal court.
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