The California Department of Corporations has obtained a final judgment and permanent injunction in Los Angeles Superior Court against CanAm Capital Corp
California Department of Corporations Obtains $17.86 Million Judgment For Defrauded Investors
Sacramento, January 25, 2013 — The California Department of Corporations has obtained a final
judgment and permanent injunction in Los Angeles Superior Court against CanAm Capital Corp.
and its investment funds (referred to as the Entity Defendants here) and three principals, Jay Jordan
Barnhardt, Aaron Kane Barnhardt and Kelly Keith Morgan. The Department had previously found
that the defendants had committed violations of securities laws that resulted in investors being
defrauded of at least $15 million. The Department issued a Desist and Refrain Order and filed a
complaint alleging those violations. The Court had previously granted the Department’s request for
a temporary restraining order, a freeze of the defendant’s assets, and appointment of a receiver
before approving this settlement.
Without admitting or denying any material allegation of the Complaint, all defendants have
consented to the entry of the final Judgment .That judgment orders restitution by the Entity
Defendants of $17.86 million to the investors the Department found were defrauded. All of the
defendants agreed to the issuance of a permanent injunction enjoining all of them, their agents,
employees, attorneys in fact and all persons acting in concert or participating with them, directly or
indirectly, from violating California’s securities laws and a 2009 Desist and Refrain order issued by
“The Department of Corporations enforces financial laws to protect Californians from investment
scams such as those perpetrated by CanAm,” said Commissioner Jan Lynn Owen. “This judgment
on behalf of defrauded investors brings the violators to justice and makes our financial services
marketplace safer and more secure.”
The defendants raised more than $17 million from investors through unsolicited cold calls. While
investing very little in start-up companies as promised, defendants instead used it to fund a luxury
lifestyle that included a mansion by Beverly Hills decorated with rare artwork, antique furniture and
fixtures, Persian rugs, crystal chandeliers, custom “hotrod” cars, Harley Davidson motorcycles, and
a Ferrari and Porcshe 911. Despite a prior desist and refrain order issued by the Commissioner, the
defendants continued living off investor money and diverting hundreds of thousands of investor
dollars to a pension plan.
The permanent injunction follows a Temporary Restraining Order granting the Department’s request
for an injunction, an asset freeze, and appointment of a receiver against CanAm Capital Corp. in
In addition to the defendants named above, the judgment is effective against companies controlled
by one or any combination of the individuals, to include CanAm Capital Corp., Premier Equity
Fund, LLC, Premier Equity Fund II, LLC, Premier Equity Fund III, LLC, Premier Equity Fund IV,
LLC, and Premier Equity Fund V, LLC.
The judgment and supporting documents may be viewed at
The Department of Corporations is California’s investment and financing authority. Consumers should
contact the Department to check on the status of the companies, investments or other services they are
considering and the licensing status of individuals at the Department’s toll-free Consumer Services Office at
1-866-ASK-CORP (1-866-275-2677) or at www.corp.ca.gov.
Original release issued November 6, 2012