SECURITIES AND EXCHANGE COMMISSION v. GLOBAL EXPRESS CAPITAL REAL ESTATE INVESTMENT FUND I, LLC

Case No. CV-S-03-1514-KJD-(LRL).

SECURITIES AND EXCHANGE COMMISSION, 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.

United States District Court, D. Nevada.

Editors Note
Applicable Law: 12 U.S.C. § 22
Cause: 12 U.S.C. § 22 Securities Fraud
Nature of Suit: 850 Securities / Commodities
Source: PACER


Attorney(s) appearing for the Case

Securities & Exchange Commission, Plaintiff, represented by David J. Van Havermaat , US Securities and Exchange Commission.

Securities & Exchange Commission, Plaintiff, represented by Randall R. Lee , Securities & Exchange Commission.

Artistic Estates, Inc., Petitioner, represented by Ronald H. Reynolds , Reynolds & Associates.

BDCC Trust, Petitioner, represented by Ronald H. Reynolds , Reynolds & Associates.

Black Tie Investments Corporation, Petitioner, represented by Ronald H. Reynolds , Reynolds & Associates.

Rex Farris, Petitioner, represented by Ronald H. Reynolds , Reynolds & Associates.

Global Express International Consulting Services, Inc., Petitioner, represented by Ronald H. Reynolds , Reynolds & Associates.

Grandview Construction, Inc., Petitioner, represented by Ronald H. Reynolds , Reynolds & Associates.

Bonnie Lee, Claimant, represented by Kristina Pickering , Morris Peterson.

Rawlings, Olson, Cannon, Gormley & Desruisseaux, Claimant, represented by CiCi Cunningham .

Perpetual Investment, Inc., Defendant, represented by Ambrish S. Sidhu , Nevada Attorney General's Office, Eric R. Olsen , Garman Turner Gordon & Erika Pike Turner , Garman Turner Gordon LLP.

Dawn M. Reese, Defendant, represented by Lawrence J. Semenza, II , Semeza and Semenza, LLP.

Robert E. Rippe, Defendant, represented by Ambrish S. Sidhu , Nevada Attorney General's Office, Eric R. Olsen , Garman Turner Gordon & Erika Pike Turner , Garman Turner Gordon LLP.

Fred Han Mahlstadt, Defendant, represented by Marianne Gatti .

Said Mobin, Defendant, Pro Se.

American Exchange, Inc., Defendant, represented by Eric R. Olsen , Garman Turner Gordon.

Sundance Pool and Spas, Inc., Defendant, represented by Douglas L. Monson , SmithMonson LLC.

Fred Han Mahkstedt dba Galaxy Construction, Defendant, represented by Kevin S. Soderstrom , Tiffany & Bosco, P.A. & Gregory L. Wilde , Tiffany & Bosco P.A..

Securities & Exchange Commission, Intervenor Defendant, represented by David J. Van Havermaat , US Securities and Exchange Commission & Randall R. Lee , Securities & Exchange Commission.

United Land Investors Corporation, Interested Party, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen.

Paris W. Robert, Interested Party, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen, David J. Winterton , David J. Winterton & Associates, Ltd. & T. Louis Palazzo , Palazzo Law Firm.

Robert Mohr, Interested Party, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen.

Roland Weinstein, Interested Party, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen.

Eleanor Weinstein, Interested Party, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen.

Canyon Lenders, LLC, Interested Party, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen & David J. Winterton , David J. Winterton & Associates, Ltd..

United States of America, Interested Party, represented by Adam F. Hulbig , U.S. Department of Justice.

Sheryl A. Lubotsky, Interested Party, Pro Se.

Douglas Peterson, Interested Party, represented by Shawn W. Miller , Miller Law Group, PLLC.

James H Donell, Receiver, represented by Byron Z. Moldo , Ervin Cohen & Jessup, Joseph G. Went , Holland & Hart LLP, Peter Alan Davidson , Ervin Cohen & Jessup, Randolph L. Howard , Kolesar & Leatham & Michelle L. Cantwell , Kolesar & Leatham, Chtd..

Paris W. Robert, Trustee, represented by Lisa A. Rasmussen , Law Office of Lisa Rasmussen & T. Louis Palazzo , Palazzo Law Firm.


FINAL JUDGMENT AS TO DEFENDANT DAWN M. REESE

KENT J. DAWSON, District Judge.

Plaintiff Securities and Exchange Commission ("SEC" or "Commission") having filed a Complaint and Defendant Dawn M. Reese ("Defendant") 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:

I.

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of 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:

(a) to employ any device, scheme, or artifice to defraud;

(b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or

(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 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 officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a).

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 ("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 mails, directly or indirectly:

(a) to employ any device, scheme, or artifice to defraud;

(b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or

(c) 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 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 officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Defendant or with anyone described in (a).

III.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of $23,232,411, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon. Based on Defendant's sworn representations in her Statement of Financial Condition dated May 10, 2016, and other documents and information submitted to the SEC, however, the Court is not ordering Defendant to pay a civil penalty and payment of the disgorgement and pre-judgment interest thereon is waived. The determination not to impose a civil penalty and to waive payment of the disgorgement and pre-judgment interest is contingent upon the accuracy and completeness of Defendant's Statement of Financial Condition. If at any time following the entry of this Final Judgment the SEC obtains information indicating that Defendant's representations to the SEC concerning her assets, income, liabilities, or net worth were fraudulent, misleading, inaccurate, or incomplete in any material respect as of the time such representations were made, the SEC may, at its sole discretion and without prior notice to Defendant, petition the Court for an order requiring Defendant to pay the unpaid portion of the disgorgement, pre-judgment and post-judgment interest thereon, and the maximum civil penalty allowable under the law. In connection with any such petition, the only issue shall be whether the financial information provided by Defendant was fraudulent, misleading, inaccurate, or incomplete in any material respect as of the time such representations were made. In its petition, the SEC may move this Court to consider all available remedies, including, but not limited to, ordering Defendant to pay funds or assets, directing the forfeiture of any assets, or sanctions for contempt of this Final Judgment. The SEC may also request additional discovery. Defendant may not, by way of defense to such petition: (1) challenge the validity of the Consent or this Final Judgment; (2) contest the allegations in the Complaint filed by the SEC; (3) assert that payment of disgorgement, pre-judgment and post-judgment interest or a civil penalty should not be ordered; (4) contest the amount of disgorgement and pre-judgment and post-judgment interest; (5) contest the imposition of the maximum civil penalty allowable under the law; or (6) assert any defense to liability or remedy, including, but not limited to, any statute of limitations defense. Defendant shall also pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.

VI.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendant Dawn M. Reese to Entry of Final Judgment is incorporated herein with the same force and effect as if fully set forth herein, and that Defendant shall comply with all of the undertakings and agreements set forth therein.

VII.

IT IS HEREBY 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.

VIII.

There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.


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