A federal district court in Los Angeles, California has entered a final judgment against David N. Osegueda of Sun Valley, California, for his role in a pump-and-dump scheme in the stock of Southern California beverage and cannabis company Green Cures & Botanical Distribution, Inc. The SEC previously charged Osegueda and three other defendants for deceiving a brokerage firm into allowing Osegueda and two other defendants to deposit their Green Cures stock into their accounts in advance of their pumping up the company's stock price through a promotional campaign. Osegueda and two other defendants then dumped their shares on unsuspecting investors, generating approximately $1.9 million in illicit proceeds.

On November 4, 2019, the U.S. District Court for the Central District of California entered a judgment against Osegueda, permanently enjoining him from violating the antifraud provisions 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 judgment further enjoins Osegueda from violating the securities registration provisions of Section 5 of the Securities Act and orders him to pay approximately $932,000 in disgorgement and prejudgment interest, and a civil penalty of approximately $835,000. The judgment also prohibits Osegueda from participating in the offering of a penny stock, and imposes a ten-year officer and director bar against him. Without admitting or denying the allegations of the complaint, Osegueda consented to the judgment.

The litigation is pending against the remaining defendants: Ishmail Calvin Ross, aka Calvin Ross, Zachary R. Logan, and Jessica Snyder, fka Jessica Gutierrez.