SEC Obtains Final Consent Judgment Against J. Bernard Rice

SEC Litigation Releases

Filed March 13th, 2026

Detected March 18th, 2026

Summary

The SEC announced a final consent judgment against J. Bernard Rice, an alleged former executive of cannabis company American Patriot Brands, Inc. The judgment includes permanent injunctions, a five-year officer and director bar, disgorgement of $581,000 plus interest, and a civil penalty of $236,451.

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What changed

The Securities and Exchange Commission (SEC) has secured a final consent judgment against J. Bernard Rice, who is alleged to be a former executive of American Patriot Brands, Inc. This judgment, entered by the U.S. District Court for the Central District of California, resolves charges related to a fraudulent offering. The court has permanently enjoined Rice from violating antifraud provisions of securities laws, prohibited him from participating in the issuance or sale of securities (except for personal accounts), and barred him from serving as an officer or director of a public company for five years. Additionally, Rice is ordered to pay $581,000 in disgorgement, plus $271,877 in prejudgment interest, and a civil penalty of $236,451.

This action signifies the final resolution for Rice in this matter, following the SEC's initial fraud charges and a subsequent partial summary judgment. Regulated entities, particularly those in the cannabis sector or involved in public offerings, should note the stringent enforcement actions taken by the SEC, including significant financial penalties and bars from corporate leadership. The SEC's ongoing litigation against other defendants in this case continues, underscoring the importance of robust compliance with securities laws and accurate disclosures in all offerings.

What to do next

Review SEC Litigation Release No. 26502 for details on the final consent judgment against J. Bernard Rice.
Assess internal controls and disclosure practices related to securities offerings, particularly in emerging industries like cannabis.
Ensure compliance with antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

Penalties

Disgorgement of $581,000 plus $271,877 in prejudgment interest; civil penalty of $236,451; five-year bar from acting as an officer or director of a public company.

Source document (simplified)

J. Bernard Rice

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.