SEC Scores $1M In Sanctions Over Alleged Pot-To-Pizza Fraud

By Sarah Jarvis (January 24, 2022, 4:54 PM EST) -- A California federal judge has ordered a purported marijuana investment firm and its affiliates to pay more than $1 million in civil penalties, disgorgement and interest after the U.S. Securities and Exchange Commission accused the firm of duping investors and carrying out a nearly $613,000 securities offering fraud.

In a final judgment filed Thursday, U.S. District Judge Stanley Blumenfeld Jr. said none of the defendants appeared at a hearing on the SEC's motion for default judgment earlier this month, including VerdeGroup Investment Partners Inc. and its alleged director, Thomas Gaffney. They also didn't oppose the motion, the court noted.

In granting...

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