The Securities and Exchange Commission (SEC) has obtained final judgments against HempAmerica and promoter Eleazer Kauderer.
According to the SEC, the US District Court for the Southern District of New York has entered a final judgment on default against HempAmerica.
Without admitting or denying the allegations in the SEC’s complaint, Kauderer consented to the entry of a final judgment, permanently enjoining him from violating certain securities laws while imposing a five-year penny stock bar. At the same time, the court ordered Kauderer to pay $888,012 in disgorgement and $23,782.74 in prejudgment interest.
The SEC states that due to Kauderer’s significant cooperation, no penalty was sought.
The SEC claims that from 2017 through 2019, Kauderer conducted a fraudulent promotional campaign for shares of HempAmericana, funded by the company’s largest investor in its Reg A stock offering, while it was selling shares into the market. Kauderer allegedly acted as a middleman and hired other “downstream” promoters to conceal the stock purchaser’s contemporaneous stock sales and role as the ultimate source of funding for the promotions.
The promotions, allegedly paid for mainly by the Reg A funds, did not disclose the source of the funding or the investor’s intent to sell stock during the promotions.
The original complaint was filed in August 2021.
