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Friday, July 19, 2019 8:14:00 AM
Defendant Barry Epling went out to breakfast with two of his business partners in December 2012 when the conversation turned to his involvement with co-defendant Hemp, Inc. Epling admitted that he and co-defendant Bruce Perlowing "run Hemp, Inc." But, Epling explained, he avoided having an official title within Hemp for two reasons: "One is the association. The other one is, is that if you're an officer or director or if you're a controller in the company, you're what is called an affiliate. And if you're an affiliate, you can sell one—an amount of stock equal to 1% of the issued shares of that classic [sic] stock every 90 days." Epling then told his breakfast companions that he had "been and [would] continue to unload a lot more than that on a regular basis[.]" No Notices of Proposed Sale had ever been filed under Hemp on behalf of Epling, Ferris, or Hobbes. Unbeknownst to Epling, that conversation was recorded on an iPhone. Epling later testified under oath that everything he told his business partners was incorrect, and that he was "just playing" with them because he was "totally done" with them.
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