U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25943 / February 15, 2024
Securities and Exchange Commission v. SHE Beverage Company, Inc. et al., No. 2:21-cv-07339 (C.D. Cal. filed Sept. 21, 2021)
SEC Obtains Judgments Against She Beverage, Inc. and Its Principals Lupe L. Rose, Sonja F. Shelby, and Katherine E. Dirden
The Securities and Exchange Commission today announced that it obtained final judgments against SHE Beverage Company, Inc. and its principals, Lupe L. Rose, Sonja F. Shelby, and Katherine E. Dirden, who were previously charged with defrauding investors between 2017 and 2019.
In September 2021, the SEC charged SHE Beverage Company, Rose, Shelby, and Dirden, for conducting a fraudulent offering between 2017 and 2019 and raising $15.4 million by making numerous false representations to investors. On January 16, 2024, the Court entered final judgments against SHE Beverage Company, Rose, Shelby and Dirden, permanently enjoining them from violations of Sections 5 and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and permanently barring Rose, Shelby, and Dirden from serving as officers or directors of public companies under Section 21(d) of the Exchange Act.
The Court ordered SHE Beverage Company, Rose, Shelby, and Dirden to jointly and severally pay $12,021500 in disgorgement of ill-gotten gains plus $738,774 in prejudgment interest thereon. The Court also imposed a civil monetary penalty of $669,687 against Rose, a civil monetary penalty of $334,842 against Shelby, and a civil monetary penalty of $334,842 against Dirden.
The SEC’s case was handled by Stephen Kam and Janet Rich Weissman of the SEC’s Los Angeles Regional office.