Dorsey & Whitney LLP in an article on 14th September said that the US marijuana industry is attracting considerable interest from investors, and unfortunately, scam artists trying to take advantage of those investors; and the SEC Office of Investor Education and Advocacy (OIEA) and Retail Strategy Task Force has issued an alert to investors warning them about investment schemes involving marijuana-related companies, and saying that it has received multiple complaints about marijuana-related businesses and the SEC is pursuing enforcement actions against some of these businesses.
The Investor Alert is available at –
It warns of investment fraud and market manipulation where fraudsters may manipulate stock prices (for example, causing them to rise or fall dramatically) by spreading false and misleading information about a company. The Alert also warns that, in addition to the potential for investment schemes associated with marijuana-related stocks, some marijuana-related companies may be at risk of criminal prosecution because of the business they are in, i.e. because despite local, state law changes, they may well be breaking federal laws.