Massachusetts warns investors of marijuana-related investments fraud schemes.
According to reports today, Massachusetts Securities Division is launching a sweep of businesses based in Massachusetts that are raising money from investments related to the marijuana industry.
The Massachusetts Securities Division brought its second complaint involving marijuana in the last two months, leading regulators to issue an investor alert warning residents about possible pot-related fraud schemes.
While growing and selling marijuana is now legal in Massachusetts, it remains illegal under federal law, which affects the operation of marijuana entities. Federal and state-chartered banks may refuse to accept deposits from the sale of marijuana-related products or refuse to make loans to marijuana-related businesses.
The regulators warned Massachusetts citizens to beware of possible fraudsters who may try to take advantage of investors in marijuana-related businesses.
According to a complaint, Massachusetts reportedly brought charges against Positronic Farms Inc. for allegedly raising capital through the offer and sale of unregistered securities to at least 25 Massachusetts investors, as well as investors in eight other states. Additionally, a man in Massachusetts was charged with a pot-scheme that lost millions for investors involving unlicensed medical marijuana.
This information is all publicly available and provided to you by The White Law Group.
If you have suffered losses in a marijuana-related investment, the securities attorneys at The White Law Group may be able to help you. For a free consultation, please contact our offices at (888)637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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