U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26502 / March 17, 2026

Securities and Exchange Commission v. American Patriot Brands, Inc., et al., No. 2:23-cv-05379 (C.D. Cal.) (filed Mar. 16, 2023)

SEC Obtains Final Consent Judgment as to Alleged Former Executive of Cannabis Company Charged in Fraudulent Offering

On March 13, 2026, the U.S. District Court for the Central District of California entered a final judgment by consent as to J. Bernard Rice, an alleged former executive of American Patriot Brands, Inc., a cannabis company, in connection with previously-filed fraud charges.

The judgment permanently enjoins Rice from further violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; permanently enjoins Rice from participating in the issuance, purchase, offer, or sale of securities, except for purchases or sales for his personal accounts; prohibits Rice for a period of five years from acting as an officer or director of a public company; orders Rice to pay disgorgement in the amount of $581,000 plus prejudgment interest thereon in the amount of $271,877; and orders Rice to pay a civil penalty in the amount of $236,451. The judgment follows the Court's June 16, 2025 order granting the SEC's motion for partial summary judgment.

The SEC's ongoing litigation is led by Eugene Hansen and Samantha Williams, substantially assisted by Senior Accountant Jamie Wohlert, and supervised by James Carlson.