Securities and Exchange Commission VS Global Express Capital Real Estate Investment Fund I, LLC et al

Filing 1043

JUDGMENT in favor of Securities & Exchange Commission and against Connie S. Farris in the amount of $120,000.00. Signed by Judge Kent J. Dawson on 10/22/2012. (Copies have been distributed pursuant to the NEF - SLR)

1
2
3
4
5
6

DAVID J. VAN HAVERMAAT, Cal. Bar No. 175761
Email: [e-mail]
Attorney for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
John W. Berry, Regional Trial Counsel
5670 Wilshire Boulevard, 11th Floor
Los Angeles, California 90036-3648
Telephone: [phone]
Facsimile: [phone]

7

UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

8
9
10

SECURITIES AND EXCHANGE
COMMISSION,

11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Plaintiff,
v.
GLOBAL EXPRESS CAPITAL REAL
ESTATE INVESTMENT FUND I,
LLC; GLOBAL EXPRESS CAPITAL
MORTGAGE CORP.; GLOBAL
EXPRESS SECURITIES, INC.;
CONNIE S. FARRIS; and DAWN M.
REESE,
Defendants.

Case No. CV-S-03-1514-KJD-(LRL)
[PROPOSED] FINAL JUDGMENT
AGAINST DEFENDANT CONNIE
FARRIS

1

On March 28, 2006, the Court issued an Order granting plaintiff Securities

2

and Exchange Commission’s (“Commission”) motion for summary judgment

3

against defendant Connie Farris (“Farris”). Following Farris’s appeal to the Ninth

4

Circuit, the Ninth Circuit held that the district court had properly granted summary

5

judgment against Farris, but remanded the case for recalculation of the

6

disgorgement amount. The Commission has now notified that Court that it has

7

determined to forgo its claims for disgorgement and prejudgment interest against

8

Farris. The Court now enters this Final Judgment against defendant Connie Farris:

9

I.

10

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

11

Farris and her agents, servants, employees, attorneys, and all persons in active

12

concert or participation with them who receive actual notice of this Final Judgment

13

by personal service or otherwise are permanently restrained and enjoined from

14

violating Section 17(a) of the Securities Act of 1933 (the “Securities Act”) [15

15

U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or

16

instruments of transportation or communication in interstate commerce or by use

17

of the mails, directly or indirectly:

18

(a)

to employ any device, scheme, or artifice to defraud;

19

(b)

to obtain money or property by means of any untrue statement of a

20

material fact or any omission of a material fact necessary in order to

21

make the statements made, in light of the circumstances under which

22

they were made, not misleading; or

23
24
25
26

(c)

to engage in any transaction, practice, or course of business which
operates or would operate as a fraud or deceit upon the purchaser.
II.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
1

1

that Defendant Farris and her agents, servants, employees, attorneys, and all persons

2

in active concert or participation with them who receive actual notice of this Final

3

Judgment by personal service or otherwise are permanently restrained and enjoined

4

from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act

5

of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated

6

thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of

7

interstate commerce, or of the mails, or of any facility of any national securities

8

exchange, in connection with the purchase or sale of any security:

9

(a)

to employ any device, scheme, or artifice to defraud;

10

(b)

to make any untrue statement of a material fact or to omit to state a

11

material fact necessary in order to make the statements made, in the

12

light of the circumstances under which they were made, not

13

misleading; or

14
15
16
17

(c)

to engage in any act, practice, or course of business which operates or
would operate as a fraud or deceit upon any person.
III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

18

that Defendant Farris and her agents, servants, employees, attorneys, and all

19

persons in active concert or participation with them who receive actual notice of

20

this Final Judgment by personal service or otherwise, and each of them, be and

21

hereby are permanently restrained and enjoined from aiding and abetting the

22

violation of Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)] and Rules

23

12b-20 and 15d-13 thereunder [17 C.F.R. §§ 240.12b-20 and 240.15d-13], by

24

filing with the Commission materially false and misleading periodic reports.

25
26

IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED
2

1

that Defendant Farris and her agents, servants, employees, attorneys, and all

2

persons in active concert or participation with them who receive actual notice of

3

this Final Judgment by personal service or otherwise, and each of them, be and

4

hereby are permanently restrained and enjoined from violating Rule 15d-14 under

5

the Exchange Act [17 C.F.R. § 240.15d-14] by certifying any periodic report filed

6

with the Commission that contains any untrue statement of material fact of omits to

7

state facts necessary to make the statements made, in light of the circumstances

8

under which such statements were made, not misleading with respect to the periods

9

covered by the reports.

10
11

V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that,

12

pursuant to Section 21(d)(2) of the Exchange Act [15 U.S.C. § 78u(d)(2)] and

13

Section 20(e) of the Securities Act [15 U.S.C. § 77t(e)], Defendant Farris is

14

prohibited from acting as an officer or director of any issuer that has a class of

15

securities registered pursuant to Section 12 of the Exchange Act [15 U.S.C. § 78l]

16

or that is required to file reports pursuant to Section 15(d) of the Exchange Act [15

17

U.S.C. § 78o(d)].

18

VI.

19

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that

20

Defendant Farris shall pay a civil penalty in the amount of $120,000 pursuant to

21

Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the

22

Exchange Act [15 U.S.C. § 78u(d)(3)]. Farris shall make this payment within 14

23

days after entry of this Final Judgment.

24

Farris may transmit payment electronically to the Commission, which will

25

provide detailed ACH transfer/Fedwire instructions upon request. Payment may

26

also be made directly from a bank account via Pay.gov through the SEC website at
3

1

http://www.sec.gov/about/offices/ofm.htm. Farris may also pay by certified check,

2

bank cashier’s check, or United States postal money order payable to the Securities

3

and Exchange Commission, which shall be delivered or mailed to

4

Enterprise Services Center

5

Accounts Receivable Branch

6

6500 South MacArthur Boulevard

7

Oklahoma City, OK 73169

8

and shall be accompanied by a letter identifying the case title, civil action number,

9

and name of this Court; identifying Farris as a defendant in this action; and

10
11

specifying that payment is made pursuant to this Final Judgment.
Farris shall simultaneously transmit photocopies of evidence of payment and

12

case identifying information to the Commission’s counsel in this action. By

13

making this payment, Farris relinquishes all legal and equitable right, title, and

14

interest in such funds and no part of the funds shall be returned to Farris. The

15

Commission shall send the funds paid pursuant to this Final Judgment to the

16

United States Treasury. Farris shall pay post-judgment interest on any delinquent

17

amounts pursuant to 28 U.S.C. § 1961.
VII.

18
19

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that James

20

Donell, the receiver in this case, may institute and prosecute all actions and take

21

such other steps that are reasonable and appropriate to enforce and collect upon

22

this Final Judgment.

23

VIII.

24

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this

25

Court shall retain jurisdiction of this matter for the purposes of enforcing the terms

26

of this Final Judgment.
4

1
2

IX.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal

3

Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment

4

forthwith and without further notice.

5
6
7
8
9

October 19
Dated: ______________, 2012
____________________________________
HONORABLE KENT J. DAWSON
UNITED STATES DISTRICT JUDGE

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
5