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

Filing 1098

JUDGMENT in favor of Securities & Exchange Commission against Global Express Capital Real Estate Investment Fund I, LLC. (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 1090-1 Filed 12/05/16 Page 1 of 7

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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]

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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SECURITIES AND EXCHANGE
COMMISSION,

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Plaintiff,
vs.

Case No. CV-S-03-1514-KJD-LRL
[PROPOSED] FINAL JUDGMENT
AGAINST DEFENDANT GLOBAL
EXPRESS CAPITAL REAL ESTATE
INVESTMENT FUND I, LLC

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.

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Plaintiff Securities and Exchange Commission (“SEC”) having filed a
Complaint and Defendant Global Express Capital Real Estate Investment Fund I,
LLC (“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 1090-1 Filed 12/05/16 Page 2 of 7

I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant

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

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

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

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

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

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sale of any security:

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(a)

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

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(b)

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

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

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circumstances under which they were made, not misleading; or

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(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

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

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

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

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

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

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

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

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

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

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Case 2:03-cv-01514-KJD-LRL Document 1090-1 Filed 12/05/16 Page 3 of 7

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

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indirectly:

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(a)

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

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(b)

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

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

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

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misleading; or

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(c)

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

operates or would operate as a fraud or deceit upon the purchaser.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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

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

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

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

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

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III.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that Defendant is permanently restrained and enjoined from filing with the SEC

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materially false and misleading periodic reports in violation of Section 15(d) of the

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Exchange Act [15 U.S.C. § 78o(d)] and Rules 12b-20 and 15d-13 thereunder [17

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C.F.R. §§ 240.12b-20 and 240.15d-13].

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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

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

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

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Case 2:03-cv-01514-KJD-LRL Document 1090-1 Filed 12/05/16 Page 4 of 7

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

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

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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

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Capital Mortgage Corp. and Global Express Securities, Inc. for disgorgement of

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

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complaint, together with prejudgment interest thereon in the amount of

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

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

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Defendant in this matter.
V.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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

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

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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that the Consent of Defendant Global Express Capital Real Estate Investment Fund

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I, LLC to Entry of Final Judgment is incorporated herein with the same force and

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effect as if fully set forth herein, and that Defendant shall comply with all of the

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undertakings and agreements set forth therein.
VII.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED

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

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the terms of this Final Judgment.

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Case 2:03-cv-01514-KJD-LRL Document 1090-1 Filed 12/05/16 Page 5 of 7

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

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

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forthwith and without further notice.

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Dated: February 13, 2017

____________________________________
HONORABLE KENT J. DAWSON
UNITED STATES DISTRICT JUDGE

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