Many individuals invested in marijuana companies in Colorado and elsewhere. Those suffering investment loss may have grounds for recovery. Please call the Law Offices of Jeffrey Pederson, P.C. at 303-300-5022 in Colorado and nationwide at 1-866-817-0201 for a free consultation.
Many marijuana investments are inherently speculative. Investments such as Aurora Cannabis, Canopy Growth, and Cronos are inappropriately being sold to moderate investors. Such investors have legal claims for the losses in these and other marijuana investments.
In addition to over saturation problems in Canada, the primary issue still revolves around the uncertain legal status in the United States.
On January 4, 2018, Attorney General Jeff Sessions changed the position of the US Justice Department that allowed the marijuana industry to flourish in Colorado and other states. This has created investment loss on the part of investors. Sharing the blame are investment professionals who recommended such marijuana investments to conservative investors, knowing the industry was in such a precarious position.
There has also been fraud in selected areas of the marijuana industry. The Securities and Exchange Commission issued an alert on May 16, 2014 warning investors of potential fraud in investments in marijuana-based companies. “Fraudsters follow headlines […] and recent law changes [in Colorado concerning marijuana] has created new opportunities for penny stock fraud,” stated the SEC.
The SEC recently halted trading in Colorado-based cannabis cultivation system maker FusionPharm Inc. related penny stock in the past two months. Questions had arisen concerning assets, revenues, financial statements, business transactions and financial condition disclosures. Other suspended companies include Cannabusiness Group, Inc., (CBGI), GrowLife, Inc., (PHOT), Advanced Cannabis Solutions, Inc. (CANN), and Petrotech Oil and Gas, Inc. which had previously stated that it would be venturing into the pot industry.
If you have suffered losses in marijuana investments, you need an attorney licensed in Colorado with experience in handling securities suits. Jeffrey Pederson is a Colorado licensed attorney who has successfully represented hundreds of investors. Contact him for a free consultation on your matter by calling 303-300-5022.
Information in this post is derived from the following: www.fa-mag.com/news/sec-warns-of-marijuana-stock-scams-17998.html ;