Cannabis Company C3 International Must Pay SEC About $4 Million

A California cannabis company is liable to the SEC for defrauding investors in its securities sales and must pay nearly $2 million in disgorgement and more than $3 million in civil penalties, a federal court ruled.

But an earlier default judgment against the husband-and-wife ownership team of C3 International Inc. will be set aside because the two are defending themselves, Judge Christina A. Snyder said for the US District Court for the Central District of California. Her opinion was entered in the docket Tuesday.

• A related company sold medical marijuana products and billed insurance companies from about 2010 to 2015, ...