GREENFIELD – A local ice cream company that sells its product in stores throughout New England has been ordered by the state to return $60,000 to investors who were sold unregistered percentage interests.

A percentage interest is a percent ownership in the company entitling the holder to an economic and voting interest in that company, according to the U.S. Securities and Exchange Commission.

In addition to the $60,000 in restitution, Barts and Snows Ice Cream Co., which is headquartered in Greenfield, has been ordered by Secretary of the Commonwealth William Galvin to pay an administrative fine of $50,000 over the violation of state laws that occurred when its founder and manager Thomas K. Schmidt sold unregistered securities between 2016 and 2019, according to the Secretary of State. 

Schmidt did not return a request for comment by press time Wednesday. 

According to the consent order, after purchasing the company in 2016, Schmidt sold $225,000 in “percentage interests” in the business to individuals he identified as family and friends. However, Schmidt – who oversees all aspects of sales and marketing, production and distribution of human resources – was not licensed to sell securities in Massachusetts, nor were any of the percentage interests registered with the Securities Division.   

Schmidt also admitted that he wrote himself checks from the business account totaling nearly $25,000 in the same three-year time period, claiming the money was compensation for acting as the business’s manager, according to the consent order. 

Barts Ice Cream is sold in pints at more than 400 distribution centers, including Stop & Shop, Big Y and Whole Foods Market. The company has as many as 10 employees.

“I strongly encourage anyone considering an investment to contact my Securities Division and check on its legitimacy, even if the person selling the investment is someone they know personally,” Galvin said in a statement. “Unfortunately, due to the financial situation of this business, these investors will be able to recoup only a portion of the money they invested.”

Reporter Mary Byrne can be reached at mbyrne@recorder.com or 413-930-4429. Twitter: @MaryEByrne.

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