SEC Charges North Carolina CEO with Fraud

Brian Weber

The SEC accuses this man of violating federal securities laws.

Federal regulators have charged Mooresville, NC based Bebida Beverage and its former CEO Brian Weber, 51, with operating a fraudulent scheme to generate cash for his own benefit, and to support “Bebida’s failing business operations.”

In a statement this week, the Securities Exchange Commission said a U.S. District Court judge for the Eastern District of New York ordered Weber to pay nearly $400,000, which includes disgorgement (repayment of funds obtained illegally) and civil penalties.

According to the SEC’s complaint, Weber operated a “multi-pronged scheme” from early 2014 through late 2015 to siphon funds from Bebida, a publicly traded company that manufactured energy shots and carbonated “relaxation drinks” such as KOMA Unwind, according to press releases from the company.

Weber is accused creating a fictitious convertible note, which is a form of short-term debt that can be converted into equity, Weber then had the note turned into common shares that were sold to the public, with the proceeds going back to Weber.

Weber also sold fake convertible notes and altered the checks he received as payment, which he then deposited into his own accounts, the SEC said.

Weber was president and CEO of Bebida, also called BeBevCo, from April 2009 until at least June 2017, according to the SEC’s complaint.

In 2015, the Food & Drug Administration issued a warning to Weber over the use of melatonin, an unsafe food additive, in KOMA, according to the warning letter on the FDA’s website.

The SEC is charging Bebida and Weber with violating registration and anti-fraud provisions of the federal securities laws. The commission said its investigation of Bebida and Weber is ongoing.

Comments
No. 1-3
TheBodyCams
TheBodyCams

This guy should get a job as a cop.

StevenThomas
StevenThomas

Packetguy is accusing PINAC of Pandering and being a pimp!

packetguy
packetguy

What in the world does this have with phototgraphy not being a crime or law enforcement requiring accountability? Come on, now. Don’t devolve into a site of just plain schadenfreude. Stay relevant.

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