Lisa Bershan, former President and CEO of All American Pet Company (AAPT) and Starship Snacks Corporation, was sentenced to 7 years in prison on November 22.
Bershan will be required to pay restitution of $2,926,702.54 at the rate of 15% of her gross monthly income beginning 1 month after she is released from prison.
The sentence also includes 5 years of supervised release.
On August 13, Joel J. Margulies, former head of marketing and investor relations at All American Pet Company (AAPT) and Starship Snacks, was convicted of securities fraud, wire fraud, identity theft, and illegally transferring a firearm after a seven-day trial in Manhattan federal court, according to court records.
Margulies, 75, of Murfreesboro, Tennessee, also pled guilty to one count of conspiracy to distribute cocaine the day after the trial.
Margulies is scheduled to be sentenced by U.S. District Judge Jed Rakoff on December 16.
He is free on bond.
Updated December 6, 2019
Lisa Bershan, former President and CEO of the All American Pet Company (AAPT) and Starship Snacks Corporation pled guilty to nine counts of a superseding information on December 18, 2018, according to newly released court records. An information is an accusation by a government attorney instead of a grand jury.
In October 2017, Bershan and co-defendants Barry Schwartz and Joel Margulies were accused of making false statements to investors in Starship and misappropriating investor funds for their own personal use.
Updated December 6, 2019
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.
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. The government agreed to drop all other charges pending against him.
Schwartz is scheduled to be sentenced on December 12, 2019.