Joel Margulies, Fraud Scheme, New York 2019
A Tennessee man has been sentenced to four years in prison for his role in a massive fraud scheme that defrauded over 50 investors out of more than $2.9 million.
Joel Margulies, a resident of Tennessee, was convicted of participating in two separate schemes to defraud investors in the Starship Snacks Corporation and the All American Pet Company.
The schemes, which took place between 2013 and 2017, involved Margulies making false and fraudulent representations to investors about the status of the companies' products, guarantees that purportedly backed the investments, and the interest of large multi-national corporations in acquiring the companies.
Margulies held himself out as the vice president for marketing and advertising at All American Pet Company, but in reality, he played a number of roles at the company, including communicating with investors and creating fake documents to support the company's misrepresentations to investors.
As part of the schemes, Margulies used the stolen identities of three individuals to create false and fraudulent letters that were sent to investors to induce them to make loans to the companies.
U.S. Attorney Geoffrey Berman said that Margulies took advantage of individuals who thought they were investing in start-up companies, when in fact, Margulies and his co-conspirators diverted the funds for their own personal benefit.
Margulies was sentenced to four years in prison on [no date given] by U.S. District Judge Jed S. Rakoff in the Southern District of New York.
Defendant: Joel Margulies
Criminal Charges: Participating in two schemes to defraud investors in the Starship Snacks Corporation and the All American Pet Company
City and State: New York
Exact Date: [no date given]
Sentence: Four years in prison
Dollar Amounts: $2.9 million
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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