Silberman Et Al V. Premier Beauty And Health Llc Et Al
- Court: Florida State, Miami Division, District Court
- Case Number: 1:20-cv-21984
- Filed: May 12, 2020
- Judges: Darrin P. Gayles
- Case Type: 850 Securities, Commodities, Exchange
- Cause: 28:1331 Fed. Question: Securities Violation
Parties Involved
- Plaintiff(s): Aaron Silberman | AMJ Misil AB LLC
- Counsel for Plaintiff: Anthony Carlos Hevia | Courtney Anne Salas | Irain Alberto Gonzalez | Alexander Flint | Ariel Rapaport | Brandon Jay Hechtman | Tara Leigh Scott
- Expert witness for Plaintiff(s): Carin Sorvik | Steven A. Wolf, CPA
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- Defendant(s): Premier Beauty and Health LLC| Jorge Hane | Florencia Hane
- Counsel for Defendants: Albert J. Piantini| Richard Charles Wolfe | Bianca Cecilia Alvarez | Edward George Guedes | Harrison Ross DuBosar | Howard D. DuBosar | Javier Asis Lopez | Omar Ortega
Verdict Information
- Verdict Date: April 30, 2024
- Total damages awarded to Plaintiff: $83,600
About the Case
Cause
Plaintiffs AMJ Capital Resources and Andrew Silberman filed a lawsuit against Premier Beauty and Health LLC, Jorge Rodriguez, and Florencia Rodriguez. They alleged securities fraud violations and other claims related to an investment scheme involving the sale of unregistered securities.
The defendants organized Premier Beauty and Health LLC in July 2018 to sell consumer beauty and health products through TV infomercials and home shopping networks. In 2019, they solicited an investment from AMJ Capital Resources. They made misrepresentations about Premier’s valuation and exclusive rights to sell CBD products on shopping networks. They also falsely claimed to have guaranteed sales orders and proprietary product formulas developed by a doctor. Additionally, they misrepresented the experienced leadership of Jorge Rodriguez.
Based on these fraudulent misrepresentations and omissions, AMJ invested $450,000 for a 20% equity stake in Premier. Silberman accepted employment with promises of career growth and mentorship under Jorge Rodriguez. However, the plaintiffs later discovered that the CBD product formulas were not proprietary and the doctor did not develop them. They also found that there were no guaranteed sales orders or exclusive rights. Additionally, the defendants misused investment funds for personal expenses.
The plaintiffs allege violations of securities laws prohibiting the sale of unregistered securities through fraudulent means, as well as breach of fiduciary duty, fraudulent inducement, and breach of employment and investment agreements.
Injury
As a result of the defendants’ fraudulent unregistered securities offering and misrepresentations, the plaintiffs AMJ Capital Resources and Andrew Silberman suffered significant financial injuries and damages.
The primary injury is the $450,000 investment made by AMJ into Premier Beauty and Health LLC. This investment was based on the defendants’ fraudulent misrepresentations and omissions regarding the company’s operations, products, leadership, financial projections, and more. Since this investment was obtained through fraudulent means in violation of securities laws, AMJ has requested rescission of the investment agreement to recover its $450,000.
Silberman also suffered the injury of unpaid wages. Premier agreed to pay him a $10,000 monthly salary per his employment agreement. However, after terminating his employment in February 2020, the defendants failed to pay Silberman his wages for that month, causing him financial injury.
Beyond the straightforward financial losses, the plaintiffs allege they suffered broader damages from being fraudulently induced into entering the investment and employment agreements through the defendants’ misrepresentations. They relied on false claims to invest money and accept employment, causing damages to their financial condition and career trajectories.
The plaintiffs further suffered damages and injury by being denied access to Premier’s financial records and books after investing $450,000. This lack of transparency prevented them from understanding how the defendants were truly utilizing their funds.
Damages
In addition to the actual damages representing the investment, the judgment sought included actual and compensatory damages. It also sought pre-judgment interest and post-judgment interest at the maximum rate allowable by law. Additionally, AMJ sought any additional statutory relief and other relief deemed just, equitable, and proper by the Honorable Court.
Jury Verdict
The jury found Defendant Premier liable for Fraudulent Inducement and awarded $83,600 in damages. Regarding the Breach of Employment Agreement, the jury ruled that Defendant Premier was not liable and awarded no damages. As for the Breach of Membership Interest Purchase Agreement, the jury found Defendant Premier not liable and awarded no damages.
Court Documents: Available upon Request
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