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.
Bershan and Schwartz used Starship investor funds to pay for plastic surgery, pet care, luxury housing, and retail purchases.
The superseding information accused Bershan of making false statements to investors in AAPT and misappropriating investor funds. It also claimed that she withdrew cash from both companies’ bank accounts in amounts designed to avoid federal reporting requirements, used investor funds to buy cocaine, and received an unlicensed handgun.
Lisa Bershan pleads guilty to nine charges
Altogether, Bershan pled guilty to:
- Conspiracy to Commit Wire Fraud with Respect to AAPT
- Wire Fraud with Respect to AAPT
- Aggravated Identity Theft
- Conspiracy to Commit Securities Fraud and Wire Fraud with Respect to Starship
- Securities Fraud with Respect to Starship
- Wire Fraud with Respect to Starship
- Money Laundering with Respect to AAPT and Starship
- Conspiracy to Distribute Cocaine
- Illegal Receipt in State of Residence of Firearm Purchased or Acquired Outside of State of Residency
Bershan is facing a maximum sentence of 132 years in prison.
She is scheduled to be sentenced on November 22.
Bershan is cooperating with the government in exchange for a potential reduction in her sentence. She also agreed to forfeit all property and proceeds traceable to the offenses. The court could order Bershan to pay restitution to the victims.
The other defendants
Schwartz pled guilty to one count of conspiring to commit securities fraud and wire fraud on August 20. Under a plea deal with the government, he agreed to a sentencing range of 41 to 51 months in prison, a fine in the amount of $15,000 to $150,000, and restitution of $2,163,214.
Schwartz is scheduled to be sentenced on December 12.
The government filed a superseding indictment against Margulies in December, and he pled not guilty to all charges in January.
Margulies allegedly purchased the gun in Tennessee and sent it to Bershan in New York via FedEx. Bershan apparently requested it because she received a threat from an angry Starship investor.
Update: Bershan was sentenced on November 22. Margulies was convicted on August 13, and he is scheduled to be sentenced on December 16.
One reply on “Lisa Bershan pleads guilty to securities fraud, drug, and firearm charges”
I worked for All American Pet Company from June 2009 thru August 2011. I was owed 2 months salary when I was laid off. I sued them and won a judgement for about $120,000.00, but was unable to collect.