The president of a Lancaster company that markets beverages to women was arrested this week on a 39-count federal grand jury indictment alleging she defrauded more than 1,000 investors out of more than $13.5 million, most of which was used for automobile purchases, rent payments and gambling.
Lupe Louise Rose, who surrendered to federal authorities, is charged with 38 counts of securities fraud and one count of making false statements to federal investigators.
Rose, president and chief executive officer of SHE Beverage Co., has pleaded not guilty to the charges and has been released from custody on a $20,000 bond. She could not be reached for comment Thursday, Feb. 8.
According to a grand jury indictment unsealed this week, the 54-year-old Palmdale woman marketed SHE Beverage as a women-owned company that sold beer, wine, bottled water and other products primarily to female consumers. From 2017 to 2020, Rose allegedly secured more than $13.5 million from investors nationwide by offering stock in the company at $2.50 per share.
Rose touted SHE Beverage as a successful company during in-person and live-streamed meetings with investors and provided them with brochures and stock offering documents, according to the indictment.
From 2016 to 2021, Rose used $6 million of investor funds to enrich herself, along with her family and friends, through excursions to casinos and the purchase of cars, trucks and luxury clothing, according to the indictment.
Rose also allegedly purchased shell corporations to provide an illusion that SHE Beverage was expanding.
In 2018, Rose allegedly deceived investors, stating that SHE Beverage had generated more than $4 million in revenue, when, in fact, the company had sold less than $263,000 in merchandise. She also falsely told investors SHE Beverage bottled water was approved by the FDA to assist with cancer, diabetes, autism, stress and anxiety, according to the indictment.
Additionally, she allegedly lied to investors about…
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