 On September 30th, the Securities and Exchange Commission (SEC) announced that it has charged eight people in connection with a cannabis stock promotion scheme.
The legal complaint alleges that eight individuals promoted Emerald Health Pharmaceuticals and High Times Holdings stocks under the guise that the recommendations were unbiased. In reality, they were being secretly compensated in the form of cash and lavish expenses. The SEC says that because of their promotions, investors purchased $80 million worth of securities. In addition to to the promoters, associates who acted as middlemen for the promotional scheme were also charged. The complaint alleged that fake invoices were submitted for consulting services. Emerald Health Pharmaceutical’s CEO James DeMesa, co-founder Avtar Dhillon, and CFO Lisa Sanford, are accused of participating in the scheme, by allegedly making misrepresentations and omissions concerning the promotion and payments. High Times has not been charged in the scheme. Comments are closed.
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