Hemp Co., Execs To Pay $10M SEC Penalty Over Stock Sales

Law360 (June 1, 2021, 9:19 PM EDT) -- Industrial hemp company Hemp Inc. and its two leaders will pay $10 million in penalties to resolve U.S. Securities and Exchange Commission claims that they used a network of shell companies to improperly sell unregistered securities, according to settlement documents filed Friday.

Consent filings from Monday show that Hemp Inc. CEO Bruce Perlowin will pay a $1.7 million civil penalty, his co-principal Barry Keith Epling will pay $8 million, and Hemp inc. will pay a $300,000 civil penalty to the SEC.

The shell companies, Ferris Holding Inc. and Hobbes Equities Inc., also entered into judgments with similar language, though they will...

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