Cannabis Startup Investors Settle SEC Fraud Case For $1.5M
By Brian Dowling (April 8, 2020, 2:39 PM EDT) -- A group of investors in a cannabis social media startup have agreed to pay $1.5 million to settle U.S. Securities and Exchange Commission claims they engaged in a stock fraud scheme that allegedly reaped twice that amount.
The SEC announced the settlement Wednesday, one day after filing its complaint alleging Boston resident Douglas Leighton and a group of friends and acquaintances bought cheap shares of Los Angeles-based MassRoots Inc., then pumped up the trading volume of the stock and increased its price.
Under the settlement, which requires the court's approval, the investors will neither admit nor deny wrongdoing.
MassRoots had business...
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