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Articles Posted in Marijuana Investments

The SEC has found that two businesses that were alleged to invest in acquiring and leasing real estate to cannabis companies are frauds.  The three defendants who used two crowdfunding websites to raise capital for the alleged real estate businesses are:  Robert Samuel Shumake, Jr., of Bloomfield Hills, Michigan, the alleged “ringleader” with multiple criminal convictions, including two felonies involving financial crimes and on probation Nicole T. Birch, a solo licensed attorney in Georgia with a personal relationship to Shumake Willard L. Jackson, of Houston, Texas, the CEO and sole director of 420 Real Estate  All falsely represented themselves to investors, as well as omitted Shumake’s previous criminal record and other important facts to investors in connection with the crowdfunding offerings. They then redirected thousands of dollars from investor funds to different accounts for their own personal benefit. The SEC has found that two businesses that were alleged to invest in acquiring and leasing real estate to cannabis companies are frauds. The three defendants who used two crowdfunding websites to raise capital for the alleged real estate businesses are: Continue reading ›

On October 2, 2020, a group of investors filed a lawsuit in Maricopa County, Arizona against Patrick Horsman and a series of companies in connection with investments in a company called Integrated CBD. The lawsuit brings causes of action for, among other things, “fraud, constructive fraud, civil conspiracy, negligent misrepresentation, aiding and abetting tortious conduct, breach of the implied covenant of good faith and fair dealing, conversion, unjust enrichment,” and others. The suit alleges that Horsman was “mastermind and ringleader” of “an elaborate scheme of fraud and material misrepresentations and omissions which induced Plaintiffs to invest in Integrated CBD.” Moreover, the Complaint alleges that the scheme was used to enrich Horsman and the other Defendants, costing Plaintiffs millions in losses. Plaintiffs and other Integrated CBD investors are now seeking recourse after investing in Integrated CBD and with Horsman, who has had previous run-ins with securities regulators.On October 2, 2020, a group of investors filed a lawsuit in Maricopa County, Arizona against Patrick Horsman and a series of companies in connection with investments in a company called Integrated CBD. The lawsuit brings causes of action for, among other things, “fraud, constructive fraud, civil conspiracy, negligent misrepresentation, aiding and abetting tortious conduct, breach of the implied covenant of good faith and fair dealing, conversion, unjust enrichment,” and others. Continue reading ›

After meeting him at bar in Boca Raton, Tania Deutsch began investing with David Cohen, who promised incredible returns through marijuana and real estate investments. Deutsch lost $1.45 million with Cohen, who was not licensed as a broker or financial adviser and is accused of defrauding her. This is a familiar story which was highlighted in a recent Palm Beach Post story. On October, 22, 2020, David Cohen was booked at the Palm Beach County Jail and criminally charged with money laundering, two counts of grand theft of over $100,000, and conducting an organized scheme to defraud $50,000 or more. Our securities fraud attorneys are representing investors in a variety of cases tied to investments in  Marijuana, CBD and THC related companies. This growing area of the economy is rife with fraud and non-registered brokers or financial advisors and company insiders taking investors to new highs only to discover that most of the money has been taken for the insiders own personal use.After meeting him at bar in Boca Raton, Tania Deutsch began investing with David Cohen, who promised incredible returns through marijuana and real estate investments. Deutsch lost $1.45 million with Cohen, who was not licensed as a broker or financial adviser and is accused of defrauding her. This is a familiar story which was highlighted in a recent Palm Beach Post story. Continue reading ›

Silver Law Group is investigating Aurora Cannabis Inc (ACB) on behalf of investors for potential violations of federal securities laws.  If you have losses from investing in Aurora Cannabis Inc. (ACB) stock, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or by email at ssilver@silverlaw.com.  Aurora Cannabis Inc (ACB) is a publicly traded company headquartered in Canada that produces and distributes medical cannabis products. Aurora is the second-largest marijuana company after Canopy Growth Corporation, when measured by market capitalization.Silver Law Group is investigating Aurora Cannabis Inc (ACB) on behalf of investors for potential violations of federal securities laws.

If you have losses from investing in Aurora Cannabis Inc. (ACB) stock, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or by email at ssilver@silverlaw.com. Continue reading ›

On September 3, 2020, the Unites States Securities and Exchange Commission (SEC) commenced a civil action against Illinois resident Geoffrey Thompson. According to the SEC’s Complaint, from July 2014 through June 2019, an entity founded and controlled by Thompson, Covalent Collective, Inc., offered several different types of investments to approximately 500 investors, raising more than $19 million. According to the SEC’s Complaint, Geoffrey Thompson and Covalent used a variety of methods to solicit investors, including the use of unregistered broker-dealers, press releases, an investor relations firm, a public website, and a call center operated by Thompson’s company, Fortress Legacy. The SEC lists the following fraudulent offerings as part of its new lawsuit:  Advantameds Convertible Promissory Notes Covalent Warrants Covalent Common Stock Covalent Promissory NotesOn September 3, 2020, the Unites States Securities and Exchange Commission (SEC) commenced a civil action against Illinois resident Geoffrey Thompson. According to the SEC’s Complaint, from July 2014 through June 2019, an entity founded and controlled by Thompson, Covalent Collective, Inc., offered several different types of investments to approximately 500 investors, raising more than $19 million. Continue reading ›

On April 21, 2020, the Securities and Exchange Commission (SEC) filed a Complaint for Injunctive and Other Relief (Complaint) against Steven L. Brickner. According to the SEC, Brickner “falsely represented to prospective investors that he would use their money to purchase the assets of a Colorado-licensed marijuana dispensary network . . .” and ultimately net investors substantial gains through a reverse merger IPO. In reality, Brickner did not own the assets he represented to investors and never filed any necessary documents to complete his promised merger or IPO. Instead, the SEC alleges that from 2015 to 2019, “Brickner misappropriated approximately $3 million of investor money to fund his lavish lifestyle.” According to the SEC’s press release regarding this matter, Brickner had more than 60 victims, most of whom were retail investors. The SEC alleges that Brickner violated various provisions of the federal securities laws. As part of the fraud, the SEC explained that Brickner, a 48-year-old Central Florida resident, operated FirstCanna Pharmaceuticals LLC, FirstCanna Financial LLC, FirstCanna Insurance LLC, and High Country Healing Co. LLC. The SEC Complaint highlights that Brickner’s LinkedIn profile and other background information create a façade of past success running a series of venture capital, finance, and other commercial companies in the Tampa, Florida area. However, Hillsborough County court records indicate that Brickner and one of Brickner’s prior ventures, VC Financial Management, LLC, were accused of defrauding a Tampa-based tech startup startup in or around 2014.  The SEC Complaint also indicates that Brickner filed for bankruptcy in 2016 and did not file a tax return in 2014 “because he had no taxable income.” This was far from the successful venture capitalist turned entrepreneur Brickner held himself out to be.On April 21, 2020, the Securities and Exchange Commission (SEC) filed a Complaint for Injunctive and Other Relief (Complaint) against Steven L. Brickner. According to the SEC, Brickner “falsely represented to prospective investors that he would use their money to purchase the assets of a Colorado-licensed marijuana dispensary network . . .” and ultimately net investors substantial gains through a reverse merger IPO. In reality, Brickner did not own the assets he represented to investors and never filed any necessary documents to complete his promised merger or IPO. Continue reading ›

Silver Law Group, a nationally-recognized class action law firm representing investors, is investigating Canopy Growth Corporation (CGC), a publicly-traded company involved in the production, distribution, and sale of cannabis in Canada, on behalf of shareholders of the company’s stock. The investigation concerns potential violations of federal securities laws.Silver Law Group, a nationally-recognized class action law firm representing investors, is investigating Canopy Growth Corporation (CGC), a publicly-traded company involved in the production, distribution, and sale of cannabis in Canada, on behalf of shareholders of the company’s stock.

The investigation concerns potential violations of federal securities laws. Continue reading ›

Curaleaf Holdings, Inc. (CURLF), a publicly-traded Massachusetts-based cannabis operator, is the subject of a class action lawsuit for alleged violations of federal securities laws.Curaleaf Holdings, Inc. (CURLF), a publicly-traded Massachusetts-based cannabis operator, is the subject of a class action lawsuit for alleged violations of federal securities laws.

Investors who purchased Curaleaf shares between November 21, 2018 and July 22, 2019 (the class period) are eligible to participate in the lawsuit. The deadline to apply to be lead plaintiff, or class representative, is October 4, 2019. Continue reading ›

CannTrust (CTST), a publicly-traded producer of medical and recreational cannabis in Canada, is the subject of a class action lawsuit filed on behalf of shareholders who lost money investing in the company. On July 8, 2019, news broke that CannTrust was growing cannabis in a greenhouse in Pelham, Ontario where regulatory approval was still pending. Holds were placed on the company’s inventory, and CannTrust says this will cause a product shortage. Analysts downgraded the stock.CannTrust (CTST), a publicly-traded producer of medical and recreational cannabis in Canada, is the subject of a class action lawsuit filed on behalf of shareholders who lost money investing in the company.

On July 8, 2019, news broke that CannTrust was growing cannabis in a greenhouse in Pelham, Ontario where regulatory approval was still pending. Holds were placed on the company’s inventory, and CannTrust says this will cause a product shortage. Analysts downgraded the stock. Continue reading ›

Silver Law Group is investigating Level Brands, Inc. (LEVB), a publicly-traded company that produces CBD (cannabidiol) products under the cbdMD brand, on behalf of investors concerning whether the company and its officers or directors may have violated federal securities laws, as well as violations by the selling stockbrokers.Silver Law Group is investigating Level Brands, Inc. (LEVB), a publicly-traded company that produces CBD (cannabidiol) products under the cbdMD brand, on behalf of investors concerning whether the company and its officers or directors may have violated federal securities laws, as well as violations by the selling stockbrokers.

If you are an investor and have suffered a loss with this company, you may be able to recover some of your losses. Continue reading ›

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