SEC Permanently Suspends Co-Founder of Cannabis Companies from Appearing or Practicing Before It as an Attorney

ADMINISTRATIVE PROCEEDING
File No. 3-20283

May 7, 2021 - The Securities and Exchange Commission today announced that Corbyn W. Jones, Esq., a licensed attorney who resides in Kansas City, Missouri, has agreed to be barred from appearing or practicing before the SEC pursuant to Rule 102(e)(3)(i) of the SEC's Rules of Practice.

According to the SEC's order, on April 22, 2021, the SEC filed a complaint against Jones in the United States District Court for the Western District of Missouri. On April 23, 2021, the court entered an order permanently enjoining Jones, by consent, from future violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

The SEC's complaint alleged, among other things, that Jones, the co-founder and chief executive officer of both Strayne Holdings LLC and 1107 Property Management, LLC, raised more than $650,000 from investors from February 2019 through January 2020 and misrepresented the intended use of funds to investors. The complaint also alleged that Jones made oral misrepresentations to investors and provided written offering materials to the investors that falsely claimed Strayne and 1107 Property Management would use investor funds for various operational expenses. Finally, the complaint alleged that Jones used at least $80,000 of investor funds for purely personal purposes.

The SEC's order permanently suspends Jones from appearing or practicing before the SEC as an attorney, effective immediately.

The SEC's investigation was conducted by Ruta G. Dudenas and Ann Tushaus and supervised by Amy S. Cotter in the Chicago Regional Office. Jonathan S. Polish led the settled litigation.