The Breakdown:
Just reported by BuzzFeed News, California-based INDUS Holding Co and its CEO, Robert Weakly have had a lawsuit brought against them for securities fraud specifically regarding the Altai cannabis chocolates brand.
The Details:
INDUS Holding Co's cannabis infused chocolates brand, Altai, has had a lawsuit filed against it for securities fraud by one if its investors.
The CEO supposedly lied about what he contributed to the company and additionally burned away the investor's money with lavish expenditures.
If the CEO, Weakly, did not actually make the claimed contributions to the company, then his claim to 39% ownership should be disproved.
The CEO also supposedly got rid of the company's CFO to further cover up the company's books.
If these charges of securities fraud including falsified corporate documents, artificial stock price manipulation, and more are substantiated, that would be another negative mark on the cannabis investment industry.
The Takeaways:
When CEOs like Robert Weakly make fraudulent actions at the reigns of a business while funded by investors' money, it ruins things for everyone.
It makes it harder for other 100% legitimate cannabis industry businesses to get the start-up and growth capital they need to get going.
Selfish and fraudulent business leaders should be removed from this budding industry so as to protect the legitimate cannabis business leaders, their investors, and their businesses.
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References & Further Reading Recommendations:
"An Investor Is Suing A California Edible Pot Company For Fraud" - Amanda Lewis (BuzzFeed News)
Hannaford Enterprises, LLC v. Robert R. Weakley et al - Docket List
Image Credit - Pic Server
