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Writer's pictureDavid B. Feder, Esq

Be careful who you do #cannabis business with.



Be careful who you do #cannabis business with. The industry appears to attract the worst types of people.


"The group engaged in so many alleged actions, it’s easiest to just list them as follows:


-Claimed the investments would generate returns of 100% or more


-Misrepresented their compensation


-Misappropriated $2.7 million


-Misled and deceived investors about a purported “business loan,” secured by C-Quadrant’s real property


-Rather than using that business loan for the benefit of C-Quadrant, Gregory used the loan proceeds to pay off different investors in an entirely unrelated entity.


-Falsely claimed a relationship with a prominent California University


-Acted as unregistered broker-dealers in connection with the offerings, none of which were registered with the Commission


-Used general solicitation to attract prospective investors, including via cold calls, Craigslist, Facebook, and other websites and social media.


-None of the securities offerings were registered with the Commission as required by the Securities Act


-Many of the investors in each offering were unaccredited and unsophisticated.


-The defendants did not take reasonable steps to verify the investors’ accreditation status"


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