SEC Files Lawsuit Over $25 Million Pot Business Investment Scam

July 28, 2020, 11:15 PM

Nine issuers and their principals were accused Tuesday by the Securities and Exchange Commission of raising more than $25 million from 400 investors who sought to finance two marijuana businesses, by misleading them about the potential profits they might make.

Todd and Jeremy Johnson, principals of six of the issuing entities, and Richard Portillo, Charles Lloyd, and Mark Heckele, principals of the remaining three issuers, claimed investors could generate annual returns of 100% or more by investing in a farm and a cannabidiol (CBD) extraction facility, the SEC said.

The issuers are Smart Initiatives LLC, Valley View Enterprises LLC, Target ...

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