SEC v. J. Bernard Rice, No. LR-26502, Central District of California (Mar. 17, 2026) — Press Release
raw: J. Bernard Rice
J. Bernard Rice, No. 2:23-cv-05379 (Mar. 17, 2026)
J. Bernard Rice, a former executive of American Patriot Brands, Inc., secured a final consent judgment for fraudulent securities offerings involving a cannabis company.
J. Bernard Rice was charged with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The judgment requires him to pay $581,000 in disgorgement, $271,877 in prejudgment interest, and a $236,451 civil penalty. Rice is also subject to a five-year ban from serving as an officer or director of a public company.
The SEC obtained a final consent judgment against J. Bernard Rice, a former executive of the cannabis company American Patriot Brands, Inc., regarding a fraudulent securities offering. Rice was charged with violating federal antifraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. The court ordered Rice to pay $581,000 in disgorgement, $271,877 in prejudgment interest, and a $236,451 civil penalty. Additionally, he is permanently enjoined from most securities activities and barred from serving as a public company officer or director for five years. This judgment follows a June 2025 order granting the SEC’s motion for partial summary judgment. The enforcement action was led by Eugene Hansen and Samantha Williams with oversight from James Carlson.
Exhibits & Attached Documents (1)
Extracted insights
- $581K $581,000 $100K–$1M
- $272K $271,877 $100K–$1M
- $236K $236,451 $100K–$1M
- company american patriot brands, inc.
- person james carlson
- person j. bernard rice
- company officer or director of public company
- company participating in issuance of securities
- agency Securities and Exchange Commission
- court u.s. district court for the central district of california
- U.S. District Court For The Central District Of California entered final judgment by consent
- J. Bernard Rice is alleged former executive of American Patriot Brands, Inc.
- J. Bernard Rice is permanently enjoined from further violations of antifraud provisions
- J. Bernard Rice is permanently enjoined from participating in issuance of securities
- J. Bernard Rice is prohibited from acting as officer or director of public company
- J. Bernard Rice is ordered to pay disgorgement of $581,000
- J. Bernard Rice is ordered to pay prejudgment interest of $271,877
- J. Bernard Rice is ordered to pay civil penalty of $236,451
- SEC is led by Eugene Hansen and Samantha Williams
- SEC is supervised by James Carlson
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26502 / March 17, 2026Securities 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 OfferingOn 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.
U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26502 / March 17, 2026Securities 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 OfferingOn 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.