Bloomberg Law
March 16, 2023, 9:42 PM

SEC Sues Cannabis Grower American Patriot for Investment Fraud

Martina Barash
Martina Barash

American Patriot Brands Inc., a cannabis cultivator and distributor that allegedly didn’t produce very much cannabis, raised more than $30 million from investors by providing “wildly inflated financial information,” the SEC alleges in a suit filed Thursday.

The company, which owns the Medford, Ore., farm property owner, “promised that investments would be secured by a lien on APB’s cannabis farm, at times when the farm likely did not have enough equity to secure investments,” the Securities and Exchange Commission says in its filing in the US District Court for the District of Puerto Rico.

Meanwhile, three of its officers pocketed ...