Home » Business News • US business news » Beverage Company Fined $14 Million For Investor Fraud
Beverage Company Fined $14 Million For Investor Fraud
https://www.whatjobs.com/news/usa/us-business-news/beverage-company-fined-14-million-for-investor-fraud
By Nithya Bose in Business News, posted February 19, 2024
Three executives of a Lancaster-based beverage company are facing over $14 million in fines for defrauding and misleading investors between 2017 to 2019.
Lupe L. Rose, 54, Sonja F. Shelby, 60, and Katherine Dirden, 48, the executives of She Beverage Co., have 30 days to pay the fine.
The US District Court for the Central District of California mandated the penalties.
It includes a $12-million fine for the company, $739,000 in prejudgment interest, and additional penalties for the individuals involved.
Rose was recently arrested after a federal indictment that accused her of acquiring over $13.5 million from more than 1,000 investors.
She is scheduled for trial on March 19.
Rose has denied the charges.
She recently uploaded a 34-minute video on YouTube, claiming she has been a victim of racism, discrimination, and a targeted campaign by the SEC.
She alleged her legitimate business expenses were overlooked, portraying her company unfairly.
Need Career Advice? Get employment skills advice at all levels of your career
The Securities and Exchange Commission filed the civil complaint in September 2021.
$15 million raised through unregistered stock sales
The agency accuses She Beverage and its executives of raising over $15 million through unregistered stock sales to more than 2,000 investors.
The complaint claims the beverage company misled investors about how their funds would be used.
The agency alleges the firm used only two percent of the funds for beverage production.
The rest of the funds were allegedly diverted to personal luxuries and expenses, including cars, luxury goods, and casino trips.
They are also accused of providing false information about the firm’s financial health and operations, such as overstating revenue.
The SEC alleges the company claimed incomplete projects were finished and misled investors about the regulatory status of its products.
It is also alleged the executives lied about the amount of their investment in the company and potential acquisition offers.
They are also accused of promising an imminent initial public offering without taking any preparatory steps.
Marketed as a women-owned business, She Beverage specializes in beverages targeted at women, including beer, wine, spirits, and bottled water,
The lawsuit claims the firm engaged directly with investors through meetings and product samples despite the misleading nature of their business practices and financial statements.
Follow us on X, LinkedIn, and Facebook
