Business
Beverage company fined $14 million for allegedly defrauding, misleading investors
Three women who ran a Lancaster-based beverage company were ordered to pay more than $14 million in combined penalties for allegedly defrauding and misleading investors over a three-year period, according to the Securities and Exchange Commission.
She Beverage Co. and its executives — Lupe L. Rose, 54, and Sonja F. Shelby, 60, of Palmdale and Katherine Dirden, 48, of Lancaster — have 30 days to pay the total, as ordered Thursday by the U.S. District Court for the Central District of California.
The company was slapped with a $12-million fine and $739,000 in prejudgment interest. Rose owes an additional $669,687, while Shelby and Dirden were each fined another $334,842.
Calls to a phone number listed for Shelby and Dirden were not returned.
Rose was arrested last week after a federal grand jury indictment alleged she had taken more than $13.5 million from more than 1,000 investors. A trial is scheduled for March 19.
Rose presented a 34-minute YouTube video as her response. In text, Rose said she endured “the profound injustice of racism, discrimination, and a targeted campaign orchestrated by the Securities and Exchange Commission.” She claimed that she spent more than $1 million in her legal defense and that her “resources to sustain the legal battle were exhausted.”
She said the SEC never took into account “all my legitimate business expenses,” thus “falsely portraying our company and its subsidiaries as mere shells.” Rose claimed the government disregarded business expenses, including payroll for 20 employees, marketing and promotions, utility bills, trademarks, lease and rent for five locations, travel expenses, research and development.
A call to the SEC’s media department was not immediately answered.
The SEC filed an initial civil complaint Sept. 14, 2021. The agency claimed that between 2017 and 2019, She Beverage raised more than $15 million from unregistered stock sales to more than 2,000 clients and investors nationwide.
The commission wrote that the company “falsely represented to investors” that 30% of funding would be allocated for beverage purchases. In reality, around 2% went toward beverages, while “at least $7.5 million” was redirected to pay for “cars and trucks, rent, luxury retail goods and trips to casinos,” the complaint alleges.
The commission said the three executives withdrew $6 million in cash and transfers and spent $1.2 million of that in casinos, along with $180,000 for eight cars and trucks for personal use and to pay off a loan for a Porsche owned by Shelby, according to the commission.
Other expenses alleged by the SEC included $100,000 for lease payments on a house and $50,000 for luxury goods such as Gucci and Louis Vuitton bags.
The founders “overstated and mischaracterized” company revenue to trick people into investing, according to the commission. She Beverage informed investors that the company had built a brewery, when construction was not completed, and falsely touted the brand’s bottled water as “proprietary” and “FDA-approved,” the SEC alleged in its lawsuit. The trio told investors they had “millions of their own money” invested in the company, whereas their portion was “much more modest.” The defendants also claimed that outsiders were interested in buying the company for hundreds of millions of dollars; the SEC said there were no offers.
The commission also claims that the executives told investors that an initial public offering “was imminent” when they hadn’t even begun to fill out paperwork.
She Beverage promoted itself as “a women-owned beverage manufacturer,” selling beer, wine, spirits and bottled water marketed to women, according to commission filings.
Between 2018 and 2019, Rose, Shelby and Dirden hosted three to four in-person meetings that included investors, according to the commission. They provided samples of the product and directly solicited investors, according to the SEC.
Business
David Ellison hits CinemaCon, vowing to make more movies with Paramount-Warner Bros.
Paramount Skydance Chief Executive David Ellison made his case directly to theater owners Thursday, pledging to release a minimum of 30 films a year from the combined Paramount and Warner Bros. Discovery company during a speech at the CinemaCon trade convention in Las Vegas.
“I wanted to look every single one of you in the eye and give you my word,” Ellison said in a brief on-stage speech, adding that Paramount has already nearly doubled its film lineup for this year with 15 planned releases, up from eight in 2025.
He also said all films will remain in theaters exclusively for 45 days, starting Thursday. Films will then go to streaming platforms in 90 days. The amount of time that films stay in theaters — known as windowing — has been a controversial topic for theater owners, as some studios reduced that period during the pandemic. Theater operators have said the shortened window has trained audiences to wait to watch films at home and cuts into theater revenues.
“I have dedicated the last 20 years of my life to elevating and preserving film,” said Ellison, clad in a dark jacket and shirt with blue jeans. “And at Paramount, we want to tell even more great stories on the big screen — stories that make people think, laugh, dream, wonder and feel — and we want to share them with as broad an audience as possible.”
Ellison’s CinemaCon appearance comes as more than 1,000 Hollywood actors and creatives have signed a letter opposing Paramount’s proposed acquisition of Warner Bros. Supporters of the letter have said the deal would reduce competition in the industry and “further consolidate an already concentrated media landscape.”
Some theater operators have also questioned whether the combined company could achieve its goal of releasing 30 films a year, particularly after the cost cuts that are expected after the merger closes.
“People can speculate all they want — but I am standing here today telling you personally that you can count on our complete commitment,” Ellison said. “And we’ll show you we mean it.”
The speech came after a star-studded video directed by “Wicked: For Good” director Jon M. Chu that was shot on the Paramount lot on Melrose Avenue and showcased directors and actors including Issa Rae, Will Smith, Chris Pratt, James Cameron and Timothée Chalamet that are working with the company.
The video closed with “Top Gun” actor Tom Cruise perched atop the Paramount water tower.
“As you saw, the Paramount lot is alive again,” Ellison said after the video. “And we could not be more excited.”
Business
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Business
Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial
Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.
On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.
During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.
The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.
The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.
(Jae C. Hong / Associated Press)
Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.
Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.
“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”
The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.
Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.
Attorneys representing Baldwin and the producers were not immediately available for comment.
Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.
On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.
The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.
Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.
New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.
Baldwin faced a similar charge, but the case against him unraveled spectacularly.
On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.
Variety first reported on Friday’s court action.
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