Securities & Exchange Commission v. Hemp, Inc. et al

Filing 197

FINAL JUDGMENT AS TO DEFENDANT HOBBES EQUITIES INC. AND ORDER CLOSING CASE. ORDER granting 192 Stipulated/Consent Judgment. Signed by Judge Jennifer A. Dorsey on 5/31/2021. Case terminated. (Copies have been distributed pursuant to the NEF - HAM)

Case 2:16-cv-01413-JAD-BNW Document 192-1 Filed 05/28/21 Page 1 of 5

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Casey R. Fronk (Illinois #6296535) admitted pro hac vice
[e-mail]
Attorney for Plaintiff
Securities and Exchange Commission
Salt Lake Regional Office
351 South West Temple, Suite 6.100
Salt Lake City, Utah 84101
Telephone: [phone]
Facsimile: [phone]

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UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF NEVADA

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SECURITIES AND EXCHANGE
COMMISSION,

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Case No.: 2:16-cv-01413-JAD-BNW

Plaintiff,
vs.
HEMP, INC. a Colorado Corporation;
BRUCE J. PERLOWIN, an individual;
BARRY K. EPLING, an individual; JED
M. PERLOWIN, an individual; FERRIS
HOLDING, INC., a private Nevada
Corporation; HOBBES EQUITIES INC.,
a private Nevada Corporation;
DIVERSIFIED INVESTMENTS LLC, a
private Nevada Limited Liability
Company; and QUANTUM ECONOMIC
PROTOCOLS LLC, a private Nevada
Limited Liability Company.

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FINAL JUDGMENT AS TO
DEFENDANT HOBBES EQUITIES INC.
& ORDER CLOSING CASE
ECF No. 192

Defendants.

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1.

The Securities and Exchange Commission having filed a Complaint and

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Defendant HOBBES EQUITIES INC. having entered a general appearance; consented to the

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Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of

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this Final Judgment without admitting or denying the allegations of the Complaint (except as to

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Case 2:16-cv-01413-JAD-BNW Document 192-1 Filed 05/28/21 Page 2 of 5

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jurisdiction and except as otherwise provided herein in paragraph IV); waived findings of fact
and conclusions of law; and waived any right to appeal from this Final Judgment:

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I.

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is

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permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the

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

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

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interstate commerce, or of the mails, or of any facility of any national securities exchange, in
connection with the purchase or 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 material fact

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necessary in order to make the statements made, in the light of the circumstances

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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 FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

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officers, agents, 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 that Defendant
is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933
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Case 2:16-cv-01413-JAD-BNW Document 192-1 Filed 05/28/21 Page 3 of 5

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(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any
means or instruments of transportation or communication in interstate commerce or by use of the

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mails, directly or 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 material fact

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

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

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or

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(c)

would operate as a fraud or deceit upon the purchaser.

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

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

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receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

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officers, agents, 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 that Defendant
is permanently restrained and enjoined from violating Section 5 of the Securities Act [15 U.S.C.

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§ 77e] by, directly or indirectly, in the absence of any applicable exemption:
(a)

Unless a registration statement is in effect as to a security, making use of any

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means or instruments of transportation or communication in interstate commerce

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or of the mails to sell such security through the use or medium of any prospectus

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or otherwise;
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Case 2:16-cv-01413-JAD-BNW Document 192-1 Filed 05/28/21 Page 4 of 5

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(b)

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Unless a registration statement is in effect as to a security, carrying or causing to
be carried through the mails or in interstate commerce, by any means or

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instruments of transportation, any such security for the purpose of sale or for

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delivery after sale; or

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(c)

Making use of any means or instruments of transportation or communication in
interstate commerce or of the mails to offer to sell or offer to buy through the use
or medium of any prospectus or otherwise any security, unless a registration

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statement has been filed with the Commission as to such security, or while the

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registration statement is the subject of a refusal order or stop order or (prior to the

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effective date of the registration statement) any public proceeding or examination

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under Section 8 of the Securities Act [15 U.S.C. § 77h].

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in

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Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who

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receive actual notice of this Final Judgment by personal service or otherwise: (a) Defendant’s

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officers, agents, 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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IV.

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IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant

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is permanently barred from participating in an offering of penny stock, including engaging in

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activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or

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attempting to induce the purchase or sale of any penny stock. A penny stock is any equity

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security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the
Exchange Act [17 C.F.R. 240.3a51-1].
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Case 2:16-cv-01413-JAD-BNW Document 192-1 Filed 05/28/21 Page 5 of 5

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V.

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IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.
VI.

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As the filing of this Final Judgment pursuant to Rule 54(b) of pending, IT IS
There being no just reason for delay,leaves no parties or claims the Federal Rules of Civil
FURTHER ORDERED that the Clerk this Final directed to CLOSE and without further notice.
Procedure, the Clerk is ordered to enterof Court is Judgment forthwith THIS CASE.

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_________________________________
U.S. District Judge Jennifer A. Dorsey
Dated: May 31, 2021

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Dated: ______________, _____

____________________________________
JENNIFER A. DORSEY
UNITED STATES DISTRICT JUDGE

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