On May 15, 2019 the Ninth Circuit Court of Appeals affirmed a Bankruptcy Appellate Panel decision affirming a Judgment obtained by Spillane Law Group for California Farms Investors, LLC for securities fraud.
Jay Spillane tried the underlying action, California Farms Investors, LLC v. James Roberts, in the United States Bankruptcy Court for the Central District of California. The defendant promoted an organic lettuce venture through false and misleading statements and without disclosing that the venture was not growing its own lettuce. California Farms Investors invested $825,000 in the form of secured notes. The venture purchased lettuce from vendors with rights under the Perishable Agricultural Commodities Act (“PACA”), including the right to hold insiders of entities purchasing agricultural product personally liable for the purchases. read more