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

Filing 1097

JUDGMENT in favor of Securities & Exchange Commission against Global Express Capital Mortgage Corp. (See Order for Details) Signed by Judge Kent J. Dawson on 2/13/2017. (Copies have been distributed pursuant to the NEF - JM)

Case 2:03-cv-01514-KJD-LRL Document 1091-1 Filed 12/05/16 Page 1 of 6

1
2
3
4
5
6

DAVID J. VAN HAVERMAAT (Cal Bar No. 175761)
Email: [e-mail]
Attorneys for Plaintiff
Securities and Exchange Commission
Michele Wein Layne, Regional Director
John W. Berry, Regional Trial Counsel
444 S. Flower St., Suite 900
Los Angeles, California 90071
Telephone: [phone]
Facsimile: [phone]

7

UNITED STATES DISTRICT COURT

8

DISTRICT OF NEVADA

9
10

SECURITIES AND EXCHANGE
COMMISSION,

11
12
13
14
15
16

Plaintiff,
vs.

Case No. CV-S-03-1514-KJD-LRL
[PROPOSED] FINAL JUDGMENT
AGAINST DEFENDANT GLOBAL
EXPRESS CAPITAL MORTGAGE
CORP.

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,

17

Defendants.

18
19
20
21
22
23
24
25
26

Plaintiff Securities and Exchange Commission (“SEC”) having filed a
Complaint and Defendant Global Express Capital Mortgage Corp. (“Defendant”),
through its Court-appointed permanent receiver, having entered a general
appearance; consented to the Court’s jurisdiction over Defendant and the subject
matter of this action; consented to entry of this Final Judgment; waived findings of
fact and conclusions of law; and waived any right to appeal from this Final
Judgment:

Case 2:03-cv-01514-KJD-LRL Document 1091-1 Filed 12/05/16 Page 2 of 6

I.

1
2

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

3

is permanently restrained and enjoined from violating, directly or indirectly,

4

Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C.

5

§ 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by

6

using any means or instrumentality of interstate commerce, or of the mails, or of

7

any facility of any national securities exchange, in connection with the purchase or

8

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 light of the

12

circumstances under which they were made, not misleading; or

13
14
15

(c)

to engage in any act, practice, or course of business which operates or

would operate as a fraud or deceit upon any person.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

16

that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing

17

paragraph also binds the following who receive actual notice of this Final

18

Judgment by personal service or otherwise: (a) Defendant’s officers, agents,

19

servants, employees, and attorneys; and (b) other persons in active concert or

20

participation with Defendant or with anyone described in (a).

21
22

II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

23

that Defendant is permanently restrained and enjoined from violating Section 17(a)

24

of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)] in the offer or

25

sale of any security by the use of any means or instruments of transportation or

26

2

Case 2:03-cv-01514-KJD-LRL Document 1091-1 Filed 12/05/16 Page 3 of 6

1

communication in interstate commerce or by use of the mails, directly or

2

indirectly:

3

(a)

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

4

(b)

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

5

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

6

statements made, in light of the circumstances under which they were made, not

7

misleading; or

8

(c)

9

to engage in any transaction, practice, or course of business which

operates or would operate as a fraud or deceit upon the purchaser.

10

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

11

that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing

12

paragraph also binds the following who receive actual notice of this Final

13

Judgment by personal service or otherwise: (a) Defendant’s officers, agents,

14

servants, employees, and attorneys; and (b) other persons in active concert or

15

participation with Defendant or with anyone described in (a).
III.

16

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

17
18

that Defendant is liable, jointly and severally with defendants Global Express

19

Capital Real Estate Investment Fund I, LLC and Global Express Securities, Inc. for

20

disgorgement of $49,072,239, representing profits gained as a result of the conduct

21

alleged in the complaint, together with prejudgment interest thereon in the amount

22

of $37,804,838, for a total of $86,877,077, which shall be deemed satisfied as to

23

this Defendant by the amount of $16,986,217, collected by the receiver appointed

24

over Defendant in this matter.

25

///

26

///

3

Case 2:03-cv-01514-KJD-LRL Document 1091-1 Filed 12/05/16 Page 4 of 6

IV.

1
2

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

3

that the SEC has determined to forgo seeking a civil penalty against Defendant,

4

and the claims for a civil penalty against Defendant are hereby DISMISSED.
V.

5
6

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

7

that the Consent of Defendant Global Express Capital Mortgage Corp. to Entry of

8

Final Judgment is incorporated herein with the same force and effect as if fully set

9

forth herein, and that Defendant shall comply with all of the undertakings and

10

agreements set forth therein.
VI.

11
12

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

13

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

14

the terms of this Final Judgment.
VII.

15
16

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

17

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

18

forthwith and without further notice.

19
20
21
22

February 13, 2017

Dated: ______________, _____
____________________________________
HONORABLE KENT J. DAWSON
UNITED STATES DISTRICT JUDGE

23
24
25
26

4