Code Green Apparel Corp (CGAC)

[scion]

In the tenth affirmative defense, Defendant asserts Plaintiff's Complaint is precluded by an unlawful and improper investigation. Improper conduct during an investigation is not an affirmative defense. See e.g. SEC v. Keating, 1992 U.S. Dist. LEXIS 14630 *8 (“[t]he Government cannot be estopped from bringing an action in the public interest simply because of alleged misconduct by one or more of its agents.”); Buntrock v. SEC, 347 F.3d 995, 998 (7th Cir. 2003) (if the SEC’s staff violated legal or ethical rules governing investigations in deciding to bring suit, that is not a defense to the SEC’s suit). The conduct of Plaintiff’s investigation does not appear relevant to Defendant’s culpability in this circumstance. If the alleged unlawful conduct of the investigation rises to the level of a violation of constitutional rights, then Defendant can bring a separate action. Defendant’s tenth affirmative defense is stricken.

Extract
Doc 47 PDF file
http://www.scribd.com/doc/116429189/SEC-v-Gold-Standard-Mining-Corp-Et-Al-Doc-47-Filed-10-Dec-12

TENTH AFFIRMATIVE DEFENSE
13. As a thirteenth and separate affirmative defense to each and every count alleged in Plaintiff’s Complaint, Defendant avers that the Plaintiff is precluded from pursuing equitable relief against this answering Defendant, in that it conducted an unlawful and improper investigation, including gathering information and rumors while posing as alias fictitious investors on investor chat boards on the Internet, including Investorshub.com.

Extract -
Doc 32 PDF file
http://www.scribd.com/doc/111024356/SEC-v-Gold-Standard-Mining-Et-Al-Doc-32-Filed-23-Oct-12