Around the same time as HAON signed the Hopp Companies Inc acquisition agreement HAON made a deal with EROP Capital LLC (Vince Sbarra) for EROP Capital LLC to pay the $700,000 for HAON if HAON and EROP Capital LLC could get a Florida judge to sign off on a settlement agreement that would allow HAON to pay EROP Capital LLC in free trading 3(a)(10) stock for the $700,000 expense
13 days later on August 31, 2017 EROP Capital filed a Complaint against HAON in Polk County Florida designed to get a judge to approve the use of the 3(a)(10) exemption to allow HAON to pay EROP Capital LLC in free trading stock to cover EROP Capital LLC paying off $1,157,559.20 in expenses for HAON (which included the $700,000 payment for the Hopp Companies Inc acquisition)
The attorneys in the case were both from the same Law Firm and share office space together - Mark Pena represented EROP Capital LLC and Alex Stavrou represented HAON
On September 29, 2017 the judge agreed to a Court Settlement between HAON and EROP Capital LLC that requires HAON to issue $1,929,265.30 worth of free trading stock to EROP Capital LLC plus give EROP Capital LLC 50,000,000 free trading shares to cover court expenses
SEC regulations state that 3(a)(10) exemption is available when the securities are being issued in exchange for securities, claims, or property interests; they cannot be offered for cash
In this case HAON issued free trading 3(a)(10) exemption stock to EROP Capital LLC in exchange for EROP Capital LLC making a cash payment on HAON's behalf. The cash payment wasn't even made by EROP Capital LLC until after the court approved a settlement agreement allowing HAON to pay EROP Capital LLC with free trading 3(a)(10) exemption stock in exchange for the cash payment.
That $700,000 cash payment was included with $457,559.20 other legitimate expenses in the Complaint.
That $1,157,559.20 Claim by EROP Capital LLC is now being turned into $1,929,265.30 worth of free trading stock. Plus EROP Capital LLC is getting 50,000,000 free trading shares to cover their court expenses.
$1,929.265.30 worth of free trading stock will end up being between 6 billion - 10 billion shares of stock at the current HAON prices.