Action against Defendants, a beverage company and its CEO and president, for an alleged fraudulent offering of Defendant company’s shares. According to the SEC, Defendants sold restricted shares derived from a fictitious convertible note, inflated the number of outstanding shares to avoid certain limitations, and issued press releases falsely claiming that the company was buying back shares in order to inflate the share price. Defendant CEO has agreed to pay $208,000 in disgorgement, $23,436 in prejudgment interest, and $160,000 in civil penalties.

SEC Litigation Release