BROWSE BY TOPIC
Stories of Interest
- New Cyberattack Goes Global, Hits WPP, Rosneft, Maersk
- Deutsche Bank Said to Lose as Much as $60Mn Over Derivative Trade
- Dimon Says JPMorgan Headcount to Keep Rising Despite Automation
- RBS to Cut 443 Jobs In UK, Move Many of Them to India
- Deutsche Bank Bullish on London Despite Brexit
- Supreme Court Nears Finish With Big Cases, Retirement Rumors
- The Richest Person in Every State
- LPL Tabs Scott Seese, Former eBay Exec, as Chief Information Officer
- Fired Biglaw Associate Arrested for Trying to Extort Partners
- Canada's CIBC Completes $5Bn PrivateBancorp Buy
- Word ‘Women’ Literally Never Appears in U.S. Senate’s 142-Page Health-Care Bill
- Stephen Pierce, Goldman Sachs Global Head of Equity Markets, To Retire
- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
- Morgan Stanley Opts for Frankfurt as New EU Hub
- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Marijuana Consulting Firm's Bogus Scheme Goes Up In Smoke – SEC
A California-based company and its founder agreed to pay $12.3 million in disgorgement, prejudgment interest and penalties to settle SEC charges that it falsely touted "record" revenue numbers to investors and claimed to be a leader in the marijuana industry, while some of its earnings came from sham transactions with a secret affiliate.
ACCORDING TO THE SEC'S COMPLAINT, … Medbox (now known as Notis Global) provided marijuana consulting services and claimed to sell vending machines known as "Medbox" devices capable of dispensing marijuana based on biometric identification. The SEC alleges that Vincent Mehdizadeh created a shell company called New-Age Investment Consulting to carry out illegal stock sales and used the proceeds from those sales to boost Medbox's revenue.
Medbox then issued press releases headlining the phony revenues as record earnings to legitimize itself as a viable commercial operation when in fact nearly 90% of the company's revenue in 2014 stemmed from sham transactions with New-Age.
Mehdizadeh used the money raised in New-Age's illicit stock sales, in part, to purchase a luxury home in the Pacific Palisades. [for a heady price, I'm sure.]
The SEC also charged Medbox's then-CEO Bruce Bedrick, New-Age and Yocelin Legaspi, Mehdizadeh's then-fiancée. The SEC's litigation continues against all three.