Medical Marijuana Inc (MJNA)

[goldmansack]

"In the case of a "CEO of a thinly traded, yet heavily touted company that purports to be in the medical marijuana business" who "spent nine years in prison for operating one of the largest drug smuggling operations in U.S. history," documents show a match to the profile of Bruce Perlowin, the CEO of HEMP. He spent nine years in prison for selling pot, according to his company's Web site. He was known as the King of Pot and for running one of the largest drug smuggling organizations and money laundering operations on the West Coast, according to the site. Hemp is associated with Medical Marijuana (MJNA). The companies have exchanged shares.

Next FINRA writes "The former CEO of a similar company was recently indicted for his role in a multi-million dollar mortgage-based Ponzi scheme." This would appear to be Medical Marijuana's CEO Michael Llamas. He was the CEO of MJNA until he left the company three days after he was indicted and announced a leave of absence to attend to personal business, according to filings. He was indicted in September of 2012 for a multi-state mortgage fraud scam. Even though Llamas is no longer CEO of MJNA, he owns a company called CannaBank, which owns 50% of MJNA. The SEC is investigating MJNA, according to its last filing. The SEC will not discuss investigations, however MJNA reported the Depository Trust Company (DTC) lifted its "chill" on the stock in August. A chill is a stock restriction in which the DTC restricts a brokerages ability to transfer shares until the issues that concern DTC are cleared up."

http://www.thestreet.mobi/story/12153847/1/finra-blows-smoke-in-pot-warnings.html