The Securities and Exchange Commission reported this week that it had obtained final judgments against a California-based beverages company that marketed a scam share scheme whose proceeds were spent on luxury items and casino binges.
SHE Beverage Company and its principals Lupe Rose, Sonja Shelby and Katherine Dirden were originally charged in 2021 by the SEC for conducting a fraudulent offering between 2017 and 2019, raising $15.4 million by making numerous false representations to investors.
Rose raised the money by issuing shares at $2.50, promoted through documents, investment guides, social media campaigns and through verbal pitches.
Among the misleading statements and false representations, Rose claimed the bottled water the company sold was made with a proprietary formula that cured cancer, and other health benefits.
The share offer promoted the company as generating up to $5 million in annual revenue, but SHE Beverages only sold around $263,000 in merchandise in 2018, according to court documents.
The Central District Court of California ordered Rose, ...
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