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 AGAINST DEFENDANT GLOBAL EXPRESS CAPITAL REAL ESTATE INVESTMENT FUND I, LLC

KENT J. DAWSON, District Judge.

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:

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 permanently restrained and enjoined from filing with the SEC materially false and misleading periodic reports in violation of Section 15(d) of the Exchange Act [15 U.S.C. § 78o(d)] and Rules 12b-20 and 15d-13 thereunder [17 C.F.R. §§ 240.12b-20 and 240.15d-13].

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).

IV.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable, jointly and severally with defendants Global Express Capital Mortgage Corp. and Global Express Securities, Inc. for disgorgement of $49,072,239, representing profits gained as a result of the conduct alleged in the complaint, together with prejudgment interest thereon in the amount of $37,804,838, for a total of $86,877,077, which shall be deemed satisfied as to this Defendant by the amount of $16,986,217, collected by the receiver appointed over Defendant in this matter.

V.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that the SEC has determined to forgo seeking a civil penalty against Defendant, and the claims for a civil penalty against Defendant are hereby DISMISSED.

VI.

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent of Defendant Global Express Capital Real Estate Investment Fund I, LLC 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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