SEC v. Integrated National Resources, Inc. dba Weedgenics, Rolf Max Hirschmann Aka “Max Bergmann” And Patrick Earl Williams, et al
Case Summary
On May 19, 2023, Krista Freitag was appointed as temporary receiver of Defendant, Integrated National Resources, Inc., dba Weedgenics, and Relief Defendants, West Coast Development LLC, INR Consulting LLC (Wyoming Entity), Oceans 19 Inc., Autobahn Performance LLC, One Click General Media Inc., Opus Collective, INR-CA Investment Holdings, LLC, Total Solution Construction LLC, Bagpipe Holdings LLC, Bagpipe Multimedia LLC, INR Consulting LLC (California Entity), and Hidden Springs Holdings Group LLC, (collectively, the “Receivership Entities”) and their subsidiaries and affiliates pursuant to a Temporary Restraining Order entered by the United States District Court for the Central District of California, Southern Division in an action filed by the United States Securities and Exchange Commission, Case No. 8:23-cv-00855-JWH-KES.
As of June 29, 2023, all Receivership Entities, including their subsidiaries and affiliates, have been placed into permanent receivership. The Preliminary Injunction Orders are posted and summarized below:
- On June 2, 2023, the Court entered the Preliminary Injunction Order with Respect to Certain Defendants and Relief Defendants and Orders: (1) Freezing Assets; (2) Appointing a Permanent Receiver; (3) Requiring Accountings; and (4) Prohibiting the Destruction of Documents (the “PI Order”). This PI Order applies to Defendants Integrated National Resources Inc. dba WeedGenics (“INR”), Rolf Max Hirschmann aka “Max Bergmann” (“Hirschmann”), and Patrick Earl Williams (“Williams”) (collectively, “Defendants”), and various Relief Defendants, including West Coast Development LLC (“WCD”), INR Consulting LLC (Wyoming Entity) (“INR Consulting/Williams”), Oceans 19 Inc. (“Oceans 19”), Autobahn Performance LLC (“Autobahn”), One Click General Media Inc. (“One Click”), and Opus Collective (“Opus”). Accordingly, the receiver is now Permanent Receiver for INR, WCD, INR Consulting/Williams, Oceans 19, Autobahn, One Click, Opus, and their subsidiaries and affiliates.
- On June 9, 2023, the Court entered Preliminary Injunction Orders with Respect to Certain Defendants and Relief Defendants: (1) Freezing Assets; (2) Appointing a Permanent Receiver; (3) Requiring Accountings; and (4) Prohibiting the Destruction of Documents. This PI Order applies to Relief Defendants Michael Delgado, Total Solution Construction LLC (“TSC”), Bagpipe Holdings LLC (“Bagpipe Holdings”) and Bagpipe Multimedia LLC (“Bagpipe MM”). Accordingly, the receiver is now Permanent Receiver for TSC, Bagpipe Holdings and Bagpipe MM, and their subsidiaries and affiliates.
- On June 9, 2023, the Court entered Preliminary Injunction Orders with Respect to Certain Defendants and Relief Defendants: (1) Freezing Assets; (2) Appointing a Permanent Receiver; (3) Requiring Accountings; and (4) Prohibiting the Destruction of Documents. This PI Order applies to Relief Defendants Tyler Campbell, INR Consulting LLC (California Entity) (“INRC-CA”), and Hidden Springs Holdings Group LLC (“Hidden Springs”). Accordingly, the receiver is now Permanent Receiver for INRC-CA and Hidden Springs, and their subsidiaries and affiliates.
- On June 29, 2023, the Court granted Plaintiff Securities and Exchange Commission and Relief Defendants John Eric Francom and INR-CA Investment Holdings, LLC’s (“INR-CA”) Joint Stipulated Request for a Preliminary Injunction Order and Orders: (1) Freezing Assets; (2) Appointing a Permanent Receiver; and (3) Prohibiting the Destruction of Documents. Accordingly, the receiver is now Permanent Receiver for INR-CA and its subsidiaries and affiliates.
- The June 30, 2023, hearing as it relates to Relief Defendant Alexandria Porter Bovee AKA “Aia Montgomery,” remains on the calendar.
A copy of the SEC’s Complaint, TRO and relevant orders discussed herein are posted below along with a copy of the Receiver’s initial communication to investors. You are encouraged to enter your information to the right in order to receive case updates (if you are an investor, please be sure to identify yourself as an investor in the fourth line under the email line). Please also know that as the case progresses, answers to FAQ’s will be updated.
- 05/16/2023 – Complaint
- 05/19/2023 – Temporary Restraining Order and Orders: (1) Freezing Assets; (2) Appointing a Temporary Receiver; (3) Requiring Accountings; (4) Prohibiting the Destruction of Documents; and (5) Granting Expedited Discovery; and Order to Show Cause why a Preliminary Injunction should not be Granted and a Permanent Receiver should not be Appointed
- 5/23/2023 – Temporary Receiver Letter to Investors
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06/02/2023 – Minute Order re: OSC Hearing re: Preliminary Injunction
- 06/09/2023 – Order Granting Plaintiff Securities and Exchange Commissions’ Request for a Preliminary Injunction Order and Orders: (1) Freezing Assets; (2) Appointing a Permanent Receiver; (3) Requiring Accountings; and (4) Prohibiting the Destruction of Documents with Respect to Relief Defendants Tyler Campbell, INR Consulting LLC (California Entity), and Hidden Springs Holdings Group LLC
- 06/09/2023 – Order Granting Plaintiff Securities and Exchange Commission and Relief Defendants Michael Delgado, Total Solution Construction LLC, Bagpipe Holdings LLC, and Bagpipe Multimedia LLC’s Joint Stipulated Request for a Preliminary Injunction Order and Orders: (1) Freezing Assets; (2) Appointing a Permanent Receiver; (3) Requiring Accountings; and (4) Prohibiting the Destruction of Documents
- 06/09/2023 – Order Extending Temporary Restraining Order and Continuing OSC re: Preliminary Injunction hearing with Respect to Relief Defendants John Eric Francom, INR-CA Investments Holdings, LLC, and Alexandria Porter Bovee aka “Aia Montgomery”
- 06/29/2023 – Order Granting Plaintiff Securities and Exchange Commission and Relief Defendants John Eric Francom and INR-CA Investment Holdings, LLC’s Joint Stipulated Request for a Preliminary Injunction Order and Orders: (1) Freezing Assets; (2) Appointing a Permanent Receiver; and (3) Prohibiting the Destruction of Documents.
- 06/30/2023 – Receiver’s Second Letter to Investors
Frequently Asked Questions
Why was a receiver appointed?
Krista Freitag was appointed as temporary receiver by the District Court at the request of the SEC based on the allegations in the SEC’s complaint and supporting evidence submitted that indicates the Defendants are operating a fraudulent scheme in violation of federal securities laws. The Defendants have been given a chance to respond and a hearing has been set by the Court for June 2, 2023.
What is a receiver?
A receiver is a court-appointed fiduciary who takes control of companies and assets (at the direction of a court) to preserve and protect the value of those companies and assets. Receivers are appointed in various different situations, including where a governmental agency, such as the SEC, has filed an action and submitted evidence to the court indicating that the companies involved and their principals are operating a fraudulent scheme and violating federal securities laws. Receivers are generally appointed on a temporary basis at first, and then a hearing is held to determine whether the receiver’s appointment should be made permanent.
How do I contact the receiver and get information about the case?
We encourage investors to sign up to receive updates about the receivership by entering their information on the right side of the landing page on this website. Ms. Freitag will be filing periodic reports and other information with the Court, and investors who sign up will receive emails with these updates. We have also set up a dedicated telephone line (619-326-4334) and email address (inr@ethreeadvisors.com) for investor inquiries. Please be patient, as it may take us a few days to respond to inquiries.
Will I get my money back?
The receiver’s job is to preserve and protect the assets of the companies in receivership for the benefit of investors and creditors. It is too early to know when funds can be distributed to investors or how much will be recovered and will be available to distribute. The process will take time, and we encourage investors to stay informed by signing up to receive email updates from the receivership website.
Why aren’t all the court documents on the receivership website?
The receivership website is intended to provide relevant information for investors about the receivership, but it is not a duplicate of the District Court’s electronic docket system. If investors want to review pleadings and orders as they are filed with the District Court, they can obtain a PACER login and password from the District Court.
Recent Court Filings
- 02/13/2024 – Receiver’s Fourth Interim Report and Recommendations
- 03/19/2024 – Notice of Hearing on Interim Fee Applications of the Receiver and Her Professionals for Payment of Fees and Reimbursement of Expenses
- 03/19/2024 – Second Interim Application of Krista L. Freitag, Court-Appointed Receiver, for Payment of Fees and Reimbursement of Expenses
- 03/19/2024 – Second Interim Application of Allen Matkins Leck Gamble Mallory & Natsis, LLP, General Counsel to the Receiver, Krista L. Freitag, for Payment of Fees and Reimbursement of Expenses
- 04/09/2024 – Order Regarding Receiver’s Unopposed Motions for Authority [ECF Nos. 162 & 197]; Receiver’s Unopposed Applications for Payment of Fees and Reimbursement of Expenses [ECF Nos. 166, 167, 213, & 214]; Defendants’ Motion to Stay [ECF No. 174]; and Plaintiff’s Motion for Modified Schedule [ECF No. 211]
- 05/17/2024 – Receiver’s Fifth Interim Report and Recommendations
- 05/17/2024 – Third Interim Fee Application of Krista L. Freitag, Court-Appointed Receiver, for Payment of Fees and Reimbursement of Expenses
- 05/17/2024 – Notice of Hearing on Interim Fee Applications of the Receiver and her Professionals for Payment of Fees and Reimbursement of Expenses
- 05/17/2024 – Third Interim Fee Application of Allen Matkins Leck Gamble Mallory & Natsis, LLP, General Counsel to the Receiver, Krista L. Freitag, for Payment of Fees and Reimbursement of Expenses
- 9/30/2024 – Order Regarding Receiver’s Unopposed Applications for Payment of Fees and Reimbursement of Expenses [ECF Nos. 234 & 235]
- 07/02/2024 – Notice Of Hearing On Interim Fee Applications Of The Receiver And Her Professionals For Payment Of Fees And Reimbursement Of Expenses
- 07/02/2024 – Fourth Interim Application Of Krista L. Freitag, Court-Appointed Receiver, For Payment Of Fees And Reimbursement Of Expenses
- 07/02/2024 – Fourth Interim Fee Application Of Allen Matkins Leck Gamble Mallory & Natsis Llp, General Counsel To The Receiver, Krista L. Freitag, For Payment Of Fees And Reimbursement Of Expenses
- 09/13/2024 – Order Regarding Receiver’s Unopposed Applications for Payment of Fees and Reimbursement of Expenses [ECF Nos. 250 & 251]
- 07/25/2024 – Notice of Receiver’s Motion for (A) Approval of Sale of Real Property Located at 9641 S. Sultana Drive, Garden City, Idaho; (B) Authority to Pay Broker’s Commission.
- 07/25/2024 – Memorandum of Points and Authorities in Support of Receiver’s Motion for (A) Approval of Sale of Real Property Located at 9641 S. Sultana Drive, Garden City, Idaho; (B) Authority to Pay Broker’s Commission.
- 07/25/2024 – Declaration of Krista L. Freitag in Support of Receiver’s Motion for (A) Approval of Sale of Real Property Located at 9641 S. Sultana Drive, Garden City, Idaho; (B) Authority to Pay Broker’s Commission.
- 09/13/2024 – Order Regarding Receiver’s Unopposed Motions to Approve Sale of Property [ECF Nos. 257 & 264]
- 08/02/2024 – Receiver’s Sixth Interim Report and Recommendations
- 10/31/2024 – Receiver’s Forensic Accounting Report
- 11/19/2024 – Receiver’s Seventh Interim Report and Recommendations
Court Filings
Filings listed in the sections below link to PDF documents.
2023 Court Filings
- 06/01/2023 – First Report and Recommendations of Temporary Receiver
- 08/23/2023 – Receiver’s Second Interim Report
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- 09/29/2023 – Memorandum of Points and Authorities in Support of Receiver’s Motion for Authority to (A) Engage Licensed Auctioneers and Dealers to Assist in Selling Personal Property, (B) Sell Automobiles, Jewelry, and Other Personal Property of the Receivership Entities, and (C) Engage Brokers to List Real Properties for Sale
- 09/29/2023 – Declaration of Krista L. Freitag in Support of Receiver’s Motion for Authority to (A) Engage Licensed Auctioneers and Dealers to Assist in Selling Personal Property, (B) Sell Automobiles, Jewelry, and Other Personal Property of the Receivership Entities, and (C) Engage Brokers to List Real Properties for Sale
- 10/13/2023 – Notice of Hearing on Interim Fee Applications of the Receiver and her Professionals for Payment of Fees and Reimbursement of Expenses
- 10/13/23 – First Interim Fee Application of Krista L. Freitag, Court-Appointed Receiver, for Payment of Fees and Reimbursement of Expenses
- 10/13/23 – First Interim Fee Application of Allen Matkins Leck Gamble Mallory & Natsis LLP, General Counsel to the Receiver, Krista L. Freitag, for Payment of Fees and Reimbursement of Expenses
- 12/15/2023 – Receiver’s Third Interim Report And Recommendations
2024 Court Filings
- 02/13/2024 – Receiver’s Fourth Interim Report and Recommendations
- 03/19/2024 – Notice of Hearing on Interim Fee Applications of the Receiver and Her Professionals for Payment of Fees and Reimbursement of Expenses
- 03/19/2024 – Second Interim Application of Krista L. Freitag, Court-Appointed Receiver, for Payment of Fees and Reimbursement of Expenses
- 03/19/2024 – Second Interim Application of Allen Matkins Leck Gamble Mallory & Natsis, LLP, General Counsel to the Receiver, Krista L. Freitag, for Payment of Fees and Reimbursement of Expenses
- 04/09/2024 – Order Regarding Receiver’s Unopposed Motions for Authority [ECF Nos. 162 & 197]; Receiver’s Unopposed Applications for Payment of Fees and Reimbursement of Expenses [ECF Nos. 166, 167, 213, & 214]; Defendants’ Motion to Stay [ECF No. 174]; and Plaintiff’s Motion for Modified Schedule [ECF No. 211]
- 05/17/2024 – Receiver’s Fifth Interim Report and Recommendations
- 05/17/2024 – Third Interim Fee Application of Krista L. Freitag, Court-Appointed Receiver, for Payment of Fees and Reimbursement of Expenses
- 05/17/2024 – Notice of Hearing on Interim Fee Applications of the Receiver and her Professionals for Payment of Fees and Reimbursement of Expenses
- 05/17/2024 – Third Interim Fee Application of Allen Matkins Leck Gamble Mallory & Natsis, LLP, General Counsel to the Receiver, Krista L. Freitag, for Payment of Fees and Reimbursement of Expenses
- 9/30/2024 – Order Regarding Receiver’s Unopposed Applications for Payment of Fees and Reimbursement of Expenses [ECF Nos. 234 & 235]
- 07/02/2024 – Notice Of Hearing On Interim Fee Applications Of The Receiver And Her Professionals For Payment Of Fees And Reimbursement Of Expenses
- 07/02/2024 – Fourth Interim Application Of Krista L. Freitag, Court-Appointed Receiver, For Payment Of Fees And Reimbursement Of Expenses
- 07/02/2024 – Fourth Interim Fee Application Of Allen Matkins Leck Gamble Mallory & Natsis Llp, General Counsel To The Receiver, Krista L. Freitag, For Payment Of Fees And Reimbursement Of Expenses
- 09/13/2024 – Order Regarding Receiver’s Unopposed Applications for Payment of Fees and Reimbursement of Expenses [ECF Nos. 250 & 251]
- 07/25/2024 – Notice of Receiver’s Motion for (A) Approval of Sale of Real Property Located at 9641 S. Sultana Drive, Garden City, Idaho; (B) Authority to Pay Broker’s Commission.
- 07/25/2024 – Memorandum of Points and Authorities in Support of Receiver’s Motion for (A) Approval of Sale of Real Property Located at 9641 S. Sultana Drive, Garden City, Idaho; (B) Authority to Pay Broker’s Commission.
- 07/25/2024 – Declaration of Krista L. Freitag in Support of Receiver’s Motion for (A) Approval of Sale of Real Property Located at 9641 S. Sultana Drive, Garden City, Idaho; (B) Authority to Pay Broker’s Commission.
- 09/13/2024 – Order Regarding Receiver’s Unopposed Motions to Approve Sale of Property [ECF Nos. 257 & 264]
- 08/02/2024 – Receiver’s Sixth Interim Report and Recommendations
- 10/31/2024 – Receiver’s Forensic Accounting Report
- 11/19/2024 – Receiver’s Seventh Interim Report and Recommendations
Krista L. Freitag
Principal