Platkin halts sale of bogus investment packages tied to cannabis products
The New Jersey Bureau of Securities ordered a Las Vegas-based online entity to stop offering fraudulent, unregistered securities in the form of investment packages for cannabis products.
In a cease-and-desist notice issued Dec. 6, Buy Cannabis Stocks Investments Inc. (BCSI) was directed to “immediately stop” violating New Jersey’s securities laws by offering bogus stock packages related to pharmaceutical, medical cannabis, legal hemp/CBD oil and legal cannabis, according to Attorney General Matthew Platkin.
An investigation by the Bureau of Securities revealed BSCI offered securities that are neither registered in New Jersey, federally covered or exempt from registration, and promised investors monthly returns ranging from 7.5% to 55%.
To lend an air of legitimacy to its enterprise, BCSI fabricated documents, including one purportedly signed by the Bureau’s acting chief indicating that the company was registered as a broker-dealer, Platkin said.
The Bureau also found BCSI used “a litany of false claims” to promote its investment packages, including omitting material facts to potential investors such as the identity of its principals, how investors funds would be used, and the risks of their investment plans; listing phony addresses for its places of business; and falsely claiming to be authorized to sell securities.
According to Platkin, BCSI also posted bogus testimonials and circulated fake fliers for a supposed cannabis legislation…
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