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Articles Posted in Marijuana Investments

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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

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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

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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

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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

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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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KushCo Holdings Inc. (KSHB), a publicly-traded company that sells a variety of cannabis-related products, is being investigated by Silver Law Group on behalf investors concerning whether the company and its officers or directors may have violated federal securities laws as well as violations by the selling stockbrokers.KushCo Holdings Inc. (KSHB), a publicly-traded company that sells a variety of cannabis-related products, is being investigated by Silver Law Group on behalf 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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Petrotech Oil & Gas Inc. (PTOG) is a company based in Bedford, TX, and claims it is involved in petroleum recovery from oil wells that are considered “empty.” Using their own extraction technology with CO2 and N2 called “Gas-Injection EOR” (Enhanced Oil Recovery), Petrotech is able to recover 20% or more than previously thought possible.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.comOn February 19, 2014, the company announced that it would also be entering the legal cannabis market in Washington and Colorado, causing their stocks to surge. Petrotech’s deal created subsidiary Legalizepot.us Management Group, Inc. (the site is now a blank page.) LP.US Management was intended to manage the growing companies where cannabis became legal, starting with Washington and Colorado.

On March 14, 2014, the SEC suspended trading for the company “because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s operations.” Trading resumed on March 28, 2018. The company was in the process of completing a 2-year audit to comply with SEC reporting standards to achieve full reporting status.

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Marijuana is still an illegal substance in a number of states (and on the federal level.) But with the increased evidence of medical benefits, many states have begun legalization for medical use. Some, like California and Colorado, have also legalized it for recreational use. Companies are now looking for ways to cash in on this new “green” industry, from growing to manufacturing and processing, as well as associated industries like equipment, real estate and legal services.

FINRA-Permanently-Bars-Gary-Eugene-Donovan-for-Stock-Manipulation-300x200One company that began dealing with acquiring and leasing land for growing marijuana is CannaBusiness Group out of California. CannaBusiness was founded in 1985, and became a publicly traded company (CBGI) in 2005. CannaBusiness is in the business of the marijuana industry support services, not growing, harvesting and processing. However, the company seems to have fallen off the radar.

According to the company’s Facebook page and other pages that discuss it, CannaBusiness is about “real estate acquisition, leasing, and management firm whose primary focus is on zoning issues.”  Calling itself “services for the medical marijuana industry,” the description includes that the company has: “also developed an acquisition plan to acquire companies that sell products and services to include security services, e-commerce store fronts for both grow and dispensary operations, technology solutions, software solutions, and miscellaneous solutions. It is actively involved in the capitalization, development and acquisition of marijuana based consumer products as well as the supporting technologies.”

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It seemed like a good investment—a company that repurposes and refits old shipping containers into hydroponic growing “pods” for local Denver agriculture, as well as the state’s burgeoning cannabis industry. These refurbished containers, complete with installed grow lighting, were known as “PharmPods.”  They were marketed as portable hydroponic greenhouses that would solve the problem of finding viable land for agriculture by creating vertical growing spaces in urban areas.

An affiliated company, Vertifresh, was responsible for selling lettuce to local restaurants that was alleged to be grown in PharmPods.

Unfortunately, while the “pods” were real, the company that sold them wasn’t.

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In the rush to get into the newest investment markets ahead of the curve, some companies will say anything, even if it’s wrong. Our law firm is actively involved in several Cannabis investment lawsuits.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.comThis week, the SEC filed charges against the Dallas, Texas based Greenview Investment Partners L.P. and its founder Michael E. Cone. The complaint alleges that Cone and his company defrauded investors out of more than $3.3 million with the idea that they would loan money to marijuana-related businesses. The company closed after an FBI probe earlier this year.

“Greenview allegedly exploited investor interest in the marijuana industry and lied about high returns and the backgrounds of its key executives,” said Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office.

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