SEC Charges Ill. Man With $19M Cannabis Securities Scam

Law360 (September 3, 2020, 9:11 PM EDT) -- The U.S. Securities and Exchange Commission filed a complaint Thursday against an Illinois man who was fighting an earlier SEC lawsuit while allegedly running a cannabis stock scheme that collected $19 million from investors.

Geoffrey Thompson, 52, of Frankfort, Illinois, sold millions in unregistered securities for a company he founded, Covalent Collective, which held itself out as a cannabis company, according to the SEC.

But it was a sham, the agency says. Covalent never began operations, and Thompson left the company after pocketing nearly $3 million of what he had raised from investors, according to the complaint.

The agency wants Thompson...

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