Selling Cannabis Stock Without License Nets SEC Lawsuit

An unlicensed broker who sold allegedly bogus securities for a cannabis company marketing an unpatented pill marketed as an alternative to narcotics was sued Wednesday by the Securities and Exchange Commission, which had sued the company last fall.

Nicolas Arkells took $477,500 from at least six investors, who lost all their principal invested in C3 International Inc., and Arkells was paid $66,205 in commissions on those sales, which he made using material misstatements, the civil lawsuit in the U.S. District Court for the Central District of California said.

Neither Arkells nor C3 were registered to sell securities.

The SEC last ...