In recent cannabis news, a pair of executives from the cannabis company CanaFarma Corp. are being charged with fraud. Specifically, the executives are being accused of defrauding investors out of at least 4 million dollars. While this number is an estimate, the total damages could total to much more. This is an ongoing case, and the story continues to evolve.
Image via @ansleycreative on Unsplash
This Case Involves Serious Crimes As Well As Serious Time
What can be said for certain, is that two senior vice presidents of the company, Vitaly Fargesen and Igor Palatnik are facing serious charges. Fargesen and Palatnik are each facing 4 counts of fraud. These include securities fraud, wire fraud, as well as conspiracy to commit both. If these executives are guilty of all charges, they are both facing up to 65 years in prison.
These CanaFarma Corp. charges are based upon the pair soliciting funds with false and misleading representations. Furthermore, they solicited 14 million dollars as well as misappropriated at least 4 million dollars. Fargesen and Palatnik are facing charges relating to stock market manipulation too. Ultimately, the pair is up against very serious charges. Further, evidence continues stacking against them.
Image via @tingeyinjurylawfirm on Unsplash
Evidence Continues To Stack Against Fargesen And Palatnik
According to Manhattan U.S. Attorney Audrey Strauss, the two completely misled their investors. She said they “presented themselves as entrepreneurs developing a new business for an emerging industry. But, as alleged, Fargesen and Palatnik were just using the trappings of a start-up to run an old-time scam: lying to investors to take money for themselves.”
This investigation is being led by Michael J. Driscoll, the director of the FBI. In a statement, he said, “the defendants, as alleged, lured investors to CanaFarma by falsely representing the company’s financials, manipulating their stock price, and misappropriating millions for their personal benefit.” Additionally, he says this is “just as a reminder to anyone who thinks they can manipulate people’s investments in this way—that’s simply not the case.”
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