{"id":1453,"date":"2014-05-24T22:54:58","date_gmt":"2014-05-24T22:54:58","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/05\/sec_warns_about_investment"},"modified":"2022-03-11T10:18:30","modified_gmt":"2022-03-11T16:18:30","slug":"sec-warns-about-investment","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-warns-about-investment\/","title":{"rendered":"SEC Warns About Investment Scams Involving Marijuana"},"content":{"rendered":"

\t\t\t\tThe U.S. Securities and Exchange Commission has put out a an investor alert warning about possible fraud involving microcap companies <\/a>claiming they are involved in the marijuana industry. Scammers are using the latest growth in the pot industry to get investors to fork over their money in exchange for supposed high returns.<\/p>\n

Already, the SEC has suspended five companies for allegedly committing this fraud, including Fusion Pharm Inc., which claims to make a professional cultivation system for cannabis cultivators to use. The Denver-based company was suspended because, according to the regulator, there are doubts about the accuracy of statements it made about assets, financial statements, revenues, financial condition, and business transactions. Other companies in which trading was suspended include: Cannabusiness Group Inc., GrowLife Inc., Petrotech Oil and Gas, and Advanced Cannabis Solutions Inc. Two of the companies were also suspended because of possibly illegal activity, including market manipulation and unlawful securities sales. <\/p>\n

According to federal securities laws, the Commission can suspended trading in a stock for 10 days and prohibit a brokerage firm from soliciting investors to sell or buy the stuck until reporting requirements are fulfilled. Unfortunately, it is not uncommon for fraudsters to exploit the latest product, innovation, growth industry, or technology. Marijuana-related companies are typically not required to report to the SEC, which means investors usually have limited access to the kind of information they can get about management, products, services, and finances. This can make it easier for scammers to spread bogus information about a company, allowing them to profit. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission has put out a an investor alert warning about possible fraud involving microcap companies claiming they are involved in the marijuana industry. Scammers are using the latest growth in the pot industry to get investors to fork over their money in exchange for supposed high returns. Already, the SEC […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760],"tags":[],"class_list":["post-1453","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement"],"yoast_head":"\nSEC Warns About Investment Scams Involving Marijuana — Investor Lawyers Blog — May 24, 2014<\/title>\n<meta name=\"description\" content=\"The U.S. Securities and Exchange Commission has put out a an investor alert warning about possible fraud involving microcap companies claiming they are — May 24, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-warns-about-investment\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" 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