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Thursday November 6 5:39 PM EST
SEC charges Int'l Brands , two execs
NEW YORK, Nov 6 (Reuters) - The Securities and Exchange Commission said Thursday it charged International Brands Inc, its former
chairman and its current president with fraud in the sale of more than $10 million in unregistered securities.
In a civil complaint filed in federal court in Manhattan, the SEC alleged that Vladislav Steven Zubkis, the current president, masterminded a
scheme to raise the money from about 1,100 investors across the United States.
The SEC said that Zubkis used San Diego-based International Brands, formerly known as Stella Bella Corp USA, a coffee distributor, and Z3
Capital Corp, an unregistered broker, through which the securities were sold.
The SEC said Zubkis was also chairman and majority shareholder of Z3, which is also a defendant in the case.
Also charged in the case is Mark Scialdone, who was former chairman and president of Stella Bella.
Zubkis allegedly paid Z3 salespersons commissions of as high as 50 percent to sell the unregistered securities. The salespersons were told to use
fraudulent sales practices, including giving buyers false information. For example, investors were told that Stella Bella was about to merge with a
prominent company, when no such merger was in the works.
Investors were also told that money raised from the securities offered would be used for business. But the SEC said that Zubkis used part of the
money for his own personal purposes and to pay off securities salespersons. A part was also used to finance Stella Bella's retail operations.
Zubkis and Scialdone also issued false data about Stella Bella's profits, sales and revenues and exaggerated the number of retail outlets, the SEC
said.
The SEC said the New York State Attorney General's Office had obtained a restraining order in January barring Stella Bella and Z3 from selling
securities within or from the state. The injunction remains in effect, it said.
Zubkis told Reuters ''we are preparing a statement in response to the SEC press release,'' and said it would be released as soon as possible. He
did not elaborate.
More news for related categories and industries: food/beverages, household, stock capsules, treasury, international.
Additional news and quotes: International Brands Inc - INBR. |
