SYS-CON MEDIA Authors: Liz McMillan, Carmen Gonzalez, Zakia Bouachraoui, Roger Strukhoff, David Linthicum

News Feed Item

The Original Brooklyn Water Bagel Company and Its Founders at the Heart of Massive Alleged Fraud Scandal; Franchisee Represented by Zarco Einhorn Salkowski & Brito Contends 'Patented' Water Purification and Treatment Process a Well-Known Farce

BOCA RATON, Fla., March 14, 2012 /PRNewswire/ -- The Original Brooklyn Water Bagel Co., whose franchisees include well-known celebrity Larry King, along with two of its Founders, Steven Fassberg and Ira Marcus, a south Florida trial attorney and also the former Senior Vice-President and General Counsel of the Company, have been sued by a south Florida development agent who claims that the Company's "patented" water purification and treatment process is nothing more than a commonly-used process that the Company promoted through false and misleading advertising and fraudulent misrepresentations. 

Plaintiffs Florida Bagels LLC, Arsenal Holdings LLC and Egg Ventures LLC, are suing Brooklyn Water Enterprises, Inc. (f/k/a The Original Brooklyn Water Bagel Co.), Brooklyn Water Bagel Franchise Co., Inc., Steven Fassberg, Scott Harris and Ira Marcus, in Palm Beach County Circuit Court. Plaintiffs are seeking damages over Two Million Dollars ($2,000,000.00), plus treble and punitive damages, as well as their attorneys' fees and costs.

As alleged in the lawsuit, "this allegedly exclusive, patented 14-stage water purification and treatment process used to replicate Brooklyn, New York water anywhere in the world was a ruse used to deliberately, intentionally, knowingly and willfully trick prospective franchisees into making outrageous financial investments in the Company," said Robert Zarco, founding partner of Zarco, Einhorn, Salkowski & Brito, P.A., the Miami franchise firm representing the Plaintiffs. "Defendants' own marketing materials boast that 'It's all about the water.' Yet, the water itself is allegedly no different than any other filtered water," says Himanshu M. Patel, a partner with Zarco, Einhorn, Salkowski & Brito, P.A.  "There is nothing unique and distinctive about using a reverse osmosis water filtration system to purify water as it is commonly available in almost all restaurants and hotels," opines Mr. Zarco.  "Not only did the Company intentionally and knowingly deceive my clients, but it continues to mislead the public at large, including investors, through its continued false, misleading claims that its water purification and treatment process is allegedly "proprietary," says Mr. Zarco. 

As alleged in the lawsuit, Messrs. Fassberg and Marcus sought a professional opinion as far back as the fall of 2007 seeking professional advice as to whether the Company could obtain a patent on their water purification and treatment process.  "Upon information and belief, [they] were advised that they NOT pursue a patent for their invention . . . ," the lawsuit alleges.  Instead, Messrs. Fassberg and Marcus were allegedly advised that their water purification and treatment process was commonly used and that there was nothing "novel" or "non-obvious" about their invention. Despite being armed with this knowledge, the Company, acting through Messrs. Fassberg and Marcus, ignored professional advice and, instead, embarked on a false and misleading advertising and marketing campaign contending that the Company had a "patented" 14-stage water purification and treatment process in order to induce Plaintiffs to enter into development agent agreements with the Company and tender large sums of money to the Company. 

Indeed, in the federally-mandated Franchise Disclosure Document ("FDD") that the Company provided to Plaintiff's principal in March 2010, the Company stated, in relevant part, that the "[O]riginal Brooklyn Water Bagel Restaurants use specially purified water according to a patented 14 stage water purification and treatment process that replicates the make-up and taste of water from Brooklyn, New York, where the world's finest bagels are made. . . . Our system, in addition to the patented water purification process, also uses a proprietary seeding technology, which provides for consistent and complete coverage of the product with the desired seeds or seed combinations, while virtually eliminating any waste." In reliance on the Company's intentional false representation in Item 1 of its FDD that it possessed the rights to an exclusive, patented water purification and treatment process, which was unbeknownst to Plaintiffs at the time, Plaintiffs made a substantial investment in the Company, the lawsuit alleges.  

Eventually, talk show host Larry King joined the Company in 2010.  As the national spokesperson for the Company, Mr. King's conduct is currently being investigated to determine whether, and to what extent, if any, he played a role in carrying out the Company's false, misleading and fraudulent advertising and marketing strategy in print, radio and Internet promotions, the lawsuit alleges. The Company currently continues to represent that it has rights to a "proprietary" 14-stage water purification and treatment process, the lawsuit further alleges.

Plaintiffs are seeking an award of compensatory, punitive and treble damages against the Company and its Founders as a result of their unlawful and predatory conduct.  Plaintiffs also seek to rescind the Development Agent Agreements and operating agreements executed with the Company on grounds that Plaintiffs were fraudulently induced into signing the agreements based on the known false, misleading and fraudulent representations that were made by Defendants.

ABOUT ZARCO EINHORN SALKOWSKI & BRITO, P.A.
Zarco Einhorn Salkowski & Brito, P.A. is an internationally recognized law firm providing high-end legal services in complex commercial legal matters in the areas of franchise, automotive and truck dealership, hospitality and licensing and distributorship law with an emphasis on litigation in the federal and state trial and appellate courts, as well as arbitration and mediation throughout the United States and internationally.  For more information, visit www.zarcolaw.com.

Contact:  Jennifer Clarin of Boardroom Communications, 954-370-8999 or [email protected].

 

SOURCE Zarco Einhorn Salkowski & Brito, P.A.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
ScaleMP is presenting at CloudEXPO 2019, held June 24-26 in Santa Clara, and we’d love to see you there. At the conference, we’ll demonstrate how ScaleMP is solving one of the most vexing challenges for cloud — memory cost and limit of scale — and how our innovative vSMP MemoryONE solution provides affordable larger server memory for the private and public cloud. Please visit us at Booth No. 519 to connect with our experts and learn more about vSMP MemoryONE and how it is already serving some of...
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
Platform9, the leader in SaaS-managed hybrid cloud, has announced it will present five sessions at four upcoming industry conferences in June: BCS in London, DevOpsCon in Berlin, HPE Discover and Cloud Computing Expo 2019.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
When you're operating multiple services in production, building out forensics tools such as monitoring and observability becomes essential. Unfortunately, it is a real challenge balancing priorities between building new features and tools to help pinpoint root causes. Linkerd provides many of the tools you need to tame the chaos of operating microservices in a cloud native world. Because Linkerd is a transparent proxy that runs alongside your application, there are no code changes required. I...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
Kubernetes as a Container Platform is becoming a de facto for every enterprise. In my interactions with enterprises adopting container platform, I come across common questions: - How does application security work on this platform? What all do I need to secure? - How do I implement security in pipelines? - What about vulnerabilities discovered at a later point in time? - What are newer technologies like Istio Service Mesh bring to table?In this session, I will be addressing these commonly asked ...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.