Replies to post #40878 on Eline Entertainment Group Inc (EEGI)

[Goodbuddy4863]

I am in synch with that!

Hope they do the Marijuana thing.

It was mentioned.

[Scumbag Fraudsters]

Sure - Just like awesome pot stocks CannaVest and MedBox.


D'OH! Both busted for fraud!

SEC Charges Marijuana-Related Company and Executives With Touting Bogus Revenues

Washington D.C., March 9, 2017

The Securities and Exchange Commission today charged a California-based company and its founder with falsely touting “record” revenue numbers to investors and claiming to be a leader in the marijuana industry while some of its earnings came from sham transactions with a secret affiliate.

According to the SEC’s complaint, Medbox provided marijuana consulting services and claimed to sell vending machines known as “Medbox” devices capable of dispensing marijuana on the basis of biometric identification. The SEC alleges that Vincent Mehdizadeh created a shell company called New-Age Investment Consulting to carry out illegal stock sales and used the proceeds from those sales to boost Medbox’s revenue. Medbox allegedly issued press releases headlining the phony revenues as record earnings to legitimize itself as a viable commercial operation when in fact nearly 90 percent of the company’s revenue in the first quarter of 2014 stemmed from sham transactions with New-Age.

https://www.sec.gov/news/pressrelease/2017-62.html

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23861 / June 16, 2017

SEC Charges Hemp Oil Company and CEO with Fraud

The Securities and Exchange Commission filed fraud charges against a Las Vegas-based hemp oil company and its CEO for inflating the company's assets on its balance sheet.

The SEC complaint filed in federal court in Nevada alleges that CannaVEST Corp. (now known as CV Sciences, Inc.) and CEO Michael Mona Jr. materially overstated the company's total assets in quarterly reports for the first and second quarters of 2013. According to the complaint, CannaVEST reported purchasing a company called PhytoSphere Systems LLC, including its existing rights under contracts with hemp production and processing facilities, for $35 million, even though Mona knew that the purported purchase price was substantially inflated. The complaint alleges that CannaVEST agreed to the purported purchase price only because CannaVEST could pay for the acquisition primarily with CannaVEST shares which Mona believed had little value at the time.

https://www.sec.gov/litigation/litreleases/2017/lr23861.htm