OWC Pharmaceutical Research Corp (OWCP)

[swamp boy]

The SEC on Monday sued Denver businessman Jeffrey O. Friedland for fraud, claiming he violated SEC rules by failing to disclose he was being paid to shill for Israeli cannabis company OWC Pharmaceutical Research Corp. and proclaiming publicly that the stock was a buy while unloading millions of shares.

According to the lawsuit, he paid $120,000 for 1.3 million shares in 2014 and then in 2016 acquired another 5.1 million shares as compensation for handling media and investor relations. He unloaded his shares, around 6 percent of the company’s value, in 2017 for about $7 million.

The SEC claims he did not disclose in promotional emails and media appearances – on sites such as Wall Street Raw, Cannabis Insider and Pot Stock Radio – that he was a paid consultant to OWC. The SEC outlaws publicizing a company’s stock for compensation without disclosing it.

“Between February 2016 and August 2017, however, Friedland sent emails and participated in interviews on OWC’s behalf without ever disclosing that he had been hired by OWC to handle its media and investor relations and had been paid to do so with millions of shares of OWC stock,” the lawsuit says.