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Three Florida Companies Sue The Original Brooklyn Water Bagel Co. For Fraud

Three Florida companies, Florida Bagels LLC, Arsenal Holdings LLC and Egg Ventures LLC (collectively “Plaintiffs”), are suing Brooklyn Water Enterprises, Inc. formerly known as The Original Brooklyn Water Bagel Co. (“Company”) and two of its founders, Steven Fassberg and Ira Marcus, a Ft. Lauderdale attorney and former Senior Vice President and General Counsel for the Company.

The lawsuit alleges that Plaintiffs were tricked into entering into development agent agreements and investing large sums of money with the Company through the use of false advertising and fraudulent misrepresentations. Plaintiffs are seeking damages in excess of $2 million, plus treble and punitive damages, attorney’s fees and costs.

The lawsuit filed in Palm Beach County Circuit Court alleges that the Company’s claims that it uses a patented 14-stage water purification process to replicate Brooklyn water is nothing more than a ruse to fraudulently induce potential franchisees into making large investments in the Company. The Plaintiffs also allege that in 2007, the Company sought an opinion as to whether it could obtain a patent on its water treatment process and was advised that the water purification and treatment process was commonly used and therefore not eligible for a patent.

According to Plaintiffs, the Company knowingly and fraudulently marketed that it held a patent and induced Plaintiffs and others to tender substantial sums of money to the Company under false pretenses.

Investors nationwide who have been the victim of financial fraud, may contact the Florida securities arbitration attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

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