SEC v. TRENDS INVESTMENTS INC.; BRANDON ROSSETTI; CLINTON GREYLING; LESLIE GREYLING; ROGER BENDELAC; and THOMAS CAPELLINI, No. 1:22-cv-10889, District of Massachusetts (Apr. 27, 2023) — Judgment

1
UNITED STATES DISTRICT COURT
DISTRI
CT OF MASSACHUSETTS
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
            v.
TRENDS INVESTMENTS INC.,
BRANDON ROSSETTI, CLINTON
GREYLING, LESLIE GREYLING,
ROGER BENDELAC, and THOMAS
CAPELLINI
Defendants.
Civil Action No. 22-CV-10889-
RGS
FINAL JUDGMENT AS TO DEFENDANT TRENDS INVESTMENTS INC.
WHEREAS, on June 8, 2022, the plaintiff Securities and Exchange Commission
(“Commission”) commenced this action by filing a Complaint against defendant Trends
Investments Inc. (“Trends” or “Defendant”) and others;
WHEREAS, on July 11, 2022, the Commission requested that Trends waive service of
the summons and complaint.  (See Dkt. No. 8 (Waiver of Service)).  On July 15, 2022, co-
defendant Clinton Greyling executed a waiver of service on behalf of Trends in his capacity as
an officer and director of Trends.  (See id.).
WHEREAS, Trends’ answer to the complaint was due by September 9, 2022.  See Fed.
R. Civ. P. 12(a)(1)(ii).  Trends has not filed an answer or a notice of appearance, and no counsel
has appeared on Trends’ behalf or contacted the undersigned on Trends’ behalf.
  WHEREAS, the Commission filed a request for entry of default as to Trends on March
9, 2023, for failure to answer or otherwise appear.  See Dkt. No. 100;
WHEREAS, in accordance with Fed. R. Civ. P. 55(a), a clerk’s Notice of Default was

2

entered against Trends on March 10, 2023.  See Dkt. No. 104;
WHEREAS, the Court accepts as true the factual allegations of the Complaint against
defendant Trends, who has defaulted, and finds that the Court has jurisdiction over this action
pursuant to Sections 20(d) and 22(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C.
§§77t(d), 77v(a)], and Sections 21(d), 21(e) and 27 of the Securities Exchange Act of 1934
(“Exchange Act”) [15 U.S.C. §§78u(d), 78u(e), 78aa];
WHEREAS, the Commission has applied, pursuant to Fed. R. Civ. P. 55(b)(2), for the
entry of this Final Judgment based on defendant Trends’ failure to answer or otherwise respond
to the Commission’s Complaint, and the Court having considered the prima facie case for relief
shown by the Commission’s Complaint, the memorandum of law in support of the Commission’s
motion for default judgment, and the supporting Declaration of Ryan Murphy, which showing
has not been rebutted by defendant Trends, the Court finds that Trends has violated Sections
17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;
NOW THEREFORE, BASED ON THE FOREGOING:
I.
 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is
permanently restrained and enjoined from violating Section 17(a) of the Securities Act [15
U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of
transportation or communication in interstate commerce or by use of the mails, directly or
indirectly:
(a) to employ any device, scheme, or artifice to defraud;
(b) to obtain money or property by means of any untrue statement of a material fact
 or any omission of a material fact necessary in order to make the statements

3

 made, in light of the circumstances under which they were made, not misleading;
            or
 (c) to engage in any transaction, practice, or course of business which operates or
  would operate as a fraud or deceit upon the purchaser.
 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Judgment by personal service or otherwise:  (a) Defendant’s officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).
II.
 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the
Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R.
§ 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or
of any facility of any national securities exchange, in connection with the purchase or sale of any
security:
(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact
 necessary in order to make the statements made, in the light of the circumstances
 under which they were made, not misleading; or
(c) to engage in any act, practice, or course of business which operates or would
 operate as a fraud or deceit upon any person.

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 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in
Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who
receive actual notice of this Judgment by personal service or otherwise:  (a) Defendant’s officers,
agents, servants, employees, and attorneys; and (b) other persons in active concert or
participation with Defendant or with anyone described in (a).
III.
 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently barred from participating in an offering of penny stock, including engaging in
activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or
attempting to induce the purchase or sale of any penny stock.  A penny stock is any equity
security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the
Exchange Act [17 C.F.R. 240.3a51-1].
IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that
Defendants Trends and Leslie Greyling are liable on a joint and several basis for disgorgement of
$1,774,747, representing net profits gained as a result of the conduct alleged in the Complaint,
together with prejudgment interest thereon in the amount of $361,798.  Defendant Trends is
liable for a civil penalty in the amount of $2,232,280.  Defendant Trends is liable for a total of
$4,368,825.  Defendant Trends shall satisfy this obligation by paying $4,368,825 to the
Securities and Exchange Commission within 30 days after entry of this Final Judgment.
Defendant may transmit payment electronically to the Commission, which will provide
detailed ACH transfer/Fedwire instructions upon request.   Payment may also be made directly

5

from a bank account via Pay.gov through the SEC website at
http://www.sec.gov/about/offices/ofm.htm.  Defendant may also pay by certified check, bank
cashier’s check, or United States postal money order payable to the Securities and Exchange
Commission, which shall be delivered or mailed to
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169

and shall be accompanied by a letter identifying the case title, civil action number, and name of
this Court; Trends Investments, Inc. as a defendant in this action; and specifying that payment is
made pursuant to this Final Judgment.
Defendant shall simultaneously transmit photocopies of evidence of payment and case
identifying information to the Commission’s counsel in this action.  By making this payment,
Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part
of the funds shall be returned to Defendant.
The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by using all collection procedures authorized by law, including, but not limited to,
moving for civil contempt at any time after 30 days following entry of this Final Judgment.
The Commission may enforce the Court’s judgment for penalties by the use of all
collection procedures authorized by law, including the Federal Debt Collection Procedures Act,
28 U.S.C. §3001 et seq., and moving for civil contempt for the violation of any Court orders
issued in this action.  Defendant shall pay post judgment interest on any amounts due after 30
days of the entry of this Final Judgment pursuant to 28 U.S.C. §1961.  The Commission shall
hold the funds, together with any interest and income earned thereon (collectively, the “Fund”),
pending further order of the Court.

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The Commission may propose a plan to distribute the Fund subject to the Court’s
approval.  Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund
provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.  The Court shall retain
jurisdiction over the administration of any distribution of the Fund and the Fund may only be
disbursed pursuant to an Order of the Court.
Regardless of whether any such Fair Fund distribution is made, amounts ordered to be
paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the
government for all purposes, including all tax purposes.  To preserve the deterrent effect of the
civil penalty, Defendant shall not, after offset or reduction of any award of compensatory
damages in any Related Investor Action based on Defendant’s payment of disgorgement in this
action, argue that it is entitled to, nor shall it further benefit by, offset or reduction of such
compensatory damages award by the amount of any part of Defendant’s payment of a civil
penalty in this action (“Penalty Offset”).  If the Court in any Related Investor Action grants such
a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty
Offset, notify the Commission’s counsel in this action and pay the amount of the Penalty Offset
to the United States Treasury or to a Fair Fund, as the Commission directs.  Such a payment shall
not be deemed an additional civil penalty and shall not be deemed to change the amount of the
civil penalty imposed in this Judgment.  For purposes of this paragraph, a “Related Investor
Action” means a private damages action brought against Defendant by or on behalf of one or
more investors based on substantially the same facts as alleged in the Complaint in this action.

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V.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment.
VI.
There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil
Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice.
Dated:  ______________, 2023
____________________________________
UNITED STATES DISTRICT JUDGE

/s/ Richard G. Stearns
April 25

1 

UNITED STATES DISTRICT COURT 
DISTRICT OF MASSACHUSETTS 

SECURITIES AND EXCHANGE 
COMMISSION, 

Plaintiff, 
 v. 

TRENDS INVESTMENTS INC., 
BRANDON ROSSETTI, CLINTON 
GREYLING, LESLIE GREYLING, 
ROGER BENDELAC, and THOMAS 
CAPELLINI 

Defendants. 

Civil Action No. 22-CV-10889-
RGS 

FINAL JUDGMENT AS TO DEFENDANT TRENDS INVESTMENTS INC.

WHEREAS, on June 8, 2022, the plaintiff Securities and Exchange Commission 

(“Commission”) commenced this action by filing a Complaint against defendant Trends 

Investments Inc. (“Trends” or “Defendant”) and others; 

WHEREAS, on July 11, 2022, the Commission requested that Trends waive service of 

the summons and complaint.  (See Dkt. No. 8 (Waiver of Service)).  On July 15, 2022, co-

defendant Clinton Greyling executed a waiver of service on behalf of Trends in his capacity as 

an officer and director of Trends.  (See id.). 

WHEREAS, Trends’ answer to the complaint was due by September 9, 2022.  See Fed. 

R. Civ. P. 12(a)(1)(ii).  Trends has not filed an answer or a notice of appearance, and no counsel

has appeared on Trends’ behalf or contacted the undersigned on Trends’ behalf. 

  WHEREAS, the Commission filed a request for entry of default as to Trends on March 

9, 2023, for failure to answer or otherwise appear.  See Dkt. No. 100; 

WHEREAS, in accordance with Fed. R. Civ. P. 55(a), a clerk’s Notice of Default was 

Case 1:22-cv-10889-RGS   Document 125   Filed 04/25/23   Page 1 of 7



 

2 
 

entered against Trends on March 10, 2023.  See Dkt. No. 104; 

WHEREAS, the Court accepts as true the factual allegations of the Complaint against 

defendant Trends, who has defaulted, and finds that the Court has jurisdiction over this action 

pursuant to Sections 20(d) and 22(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. 

§§77t(d), 77v(a)], and Sections 21(d), 21(e) and 27 of the Securities Exchange Act of 1934 

(“Exchange Act”) [15 U.S.C. §§78u(d), 78u(e), 78aa]; 

WHEREAS, the Commission has applied, pursuant to Fed. R. Civ. P. 55(b)(2), for the 

entry of this Final Judgment based on defendant Trends’ failure to answer or otherwise respond 

to the Commission’s Complaint, and the Court having considered the prima facie case for relief 

shown by the Commission’s Complaint, the memorandum of law in support of the Commission’s 

motion for default judgment, and the supporting Declaration of Ryan Murphy, which showing 

has not been rebutted by defendant Trends, the Court finds that Trends has violated Sections  

17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; 

NOW THEREFORE, BASED ON THE FOREGOING: 

I. 

 IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 

permanently restrained and enjoined from violating Section 17(a) of the Securities Act [15 

U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of 

transportation or communication in interstate commerce or by use of the mails, directly or 

indirectly: 

(a) to employ any device, scheme, or artifice to defraud; 

(b) to obtain money or property by means of any untrue statement of a material fact 

 or any omission of a material fact necessary in order to make the statements 

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3 
 

 made, in light of the circumstances under which they were made, not misleading; 

 or 

 (c) to engage in any transaction, practice, or course of business which operates or  

  would operate as a fraud or deceit upon the purchaser. 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Judgment by personal service or otherwise:  (a) Defendant’s officers, 

agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a). 

II. 

 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the 

Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. 

§ 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or 

of any facility of any national securities exchange, in connection with the purchase or sale of any 

security: 

(a) to employ any device, scheme, or artifice to defraud; 

(b) to make any untrue statement of a material fact or to omit to state a material fact 

 necessary in order to make the statements made, in the light of the circumstances 

 under which they were made, not misleading; or 

(c) to engage in any act, practice, or course of business which operates or would 

 operate as a fraud or deceit upon any person. 

 

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4 
 

 

 IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in 

Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who 

receive actual notice of this Judgment by personal service or otherwise:  (a) Defendant’s officers, 

agents, servants, employees, and attorneys; and (b) other persons in active concert or 

participation with Defendant or with anyone described in (a). 

III. 

 IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently barred from participating in an offering of penny stock, including engaging in 

activities with a broker, dealer, or issuer for purposes of issuing, trading, or inducing or 

attempting to induce the purchase or sale of any penny stock.  A penny stock is any equity 

security that has a price of less than five dollars, except as provided in Rule 3a51-1 under the 

Exchange Act [17 C.F.R. 240.3a51-1]. 

IV. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that 

Defendants Trends and Leslie Greyling are liable on a joint and several basis for disgorgement of 

$1,774,747, representing net profits gained as a result of the conduct alleged in the Complaint, 

together with prejudgment interest thereon in the amount of $361,798.  Defendant Trends is 

liable for a civil penalty in the amount of $2,232,280.  Defendant Trends is liable for a total of 

$4,368,825.  Defendant Trends shall satisfy this obligation by paying $4,368,825 to the 

Securities and Exchange Commission within 30 days after entry of this Final Judgment. 

Defendant may transmit payment electronically to the Commission, which will provide 

detailed ACH transfer/Fedwire instructions upon request.   Payment may also be made directly 

Case 1:22-cv-10889-RGS   Document 125   Filed 04/25/23   Page 4 of 7



 

5 
 

from a bank account via Pay.gov through the SEC website at 

http://www.sec.gov/about/offices/ofm.htm.  Defendant may also pay by certified check, bank 

cashier’s check, or United States postal money order payable to the Securities and Exchange 

Commission, which shall be delivered or mailed to  

Enterprise Services Center 
Accounts Receivable Branch 
6500 South MacArthur Boulevard 
Oklahoma City, OK 73169 
 

and shall be accompanied by a letter identifying the case title, civil action number, and name of 

this Court; Trends Investments, Inc. as a defendant in this action; and specifying that payment is 

made pursuant to this Final Judgment.   

Defendant shall simultaneously transmit photocopies of evidence of payment and case 

identifying information to the Commission’s counsel in this action.  By making this payment, 

Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part 

of the funds shall be returned to Defendant.   

The Commission may enforce the Court’s judgment for disgorgement and prejudgment 

interest by using all collection procedures authorized by law, including, but not limited to, 

moving for civil contempt at any time after 30 days following entry of this Final Judgment.   

The Commission may enforce the Court’s judgment for penalties by the use of all 

collection procedures authorized by law, including the Federal Debt Collection Procedures Act, 

28 U.S.C. §3001 et seq., and moving for civil contempt for the violation of any Court orders 

issued in this action.  Defendant shall pay post judgment interest on any amounts due after 30 

days of the entry of this Final Judgment pursuant to 28 U.S.C. §1961.  The Commission shall 

hold the funds, together with any interest and income earned thereon (collectively, the “Fund”), 

pending further order of the Court.     

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6 
 

The Commission may propose a plan to distribute the Fund subject to the Court’s 

approval.  Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund 

provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002.  The Court shall retain 

jurisdiction over the administration of any distribution of the Fund and the Fund may only be 

disbursed pursuant to an Order of the Court.    

Regardless of whether any such Fair Fund distribution is made, amounts ordered to be 

paid as civil penalties pursuant to this Judgment shall be treated as penalties paid to the 

government for all purposes, including all tax purposes.  To preserve the deterrent effect of the 

civil penalty, Defendant shall not, after offset or reduction of any award of compensatory 

damages in any Related Investor Action based on Defendant’s payment of disgorgement in this 

action, argue that it is entitled to, nor shall it further benefit by, offset or reduction of such 

compensatory damages award by the amount of any part of Defendant’s payment of a civil 

penalty in this action (“Penalty Offset”).  If the Court in any Related Investor Action grants such 

a Penalty Offset, Defendant shall, within 30 days after entry of a final order granting the Penalty 

Offset, notify the Commission’s counsel in this action and pay the amount of the Penalty Offset 

to the United States Treasury or to a Fair Fund, as the Commission directs.  Such a payment shall 

not be deemed an additional civil penalty and shall not be deemed to change the amount of the 

civil penalty imposed in this Judgment.  For purposes of this paragraph, a “Related Investor 

Action” means a private damages action brought against Defendant by or on behalf of one or 

more investors based on substantially the same facts as alleged in the Complaint in this action.   

 
 
 
 
 
 

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V. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 

jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. 

VI. 

There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil 

Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. 

Dated:  ______________, 2023 

____________________________________ 
UNITED STATES DISTRICT JUDGE 
/s/ Richard G. Stearns

April 25

Case 1:22-cv-10889-RGS   Document 125   Filed 04/25/23   Page 7 of 7