To embed, copy and paste the code into your website or blog:
Federal securities regulators recently obtained judgments in two enforcement actions brought in federal court in California and Illinois involving cannabis-related businesses raising capital. At a high level, the recent trend we have observed in these recent securities enforcement actions is the general emphasis, as we would expect, on (i) accuracy and completeness of material disclosures to investors, (ii) investor solicitation activities, including use of unregistered broker-dealers by issuers, and (iii) properly conducting compliant securities offerings.
1.
SEC v. Geoffrey J. Thompson, No. 1:20-cv-05205 (N.D. Ill. Jan. 20, 2021)
Geoffrey Thompson, a repeat securities law violator, and his company Covalent Collective, Inc., a supposed cannabis company, allegedly conducted numerous offerings of unregistered securities from 2014 to 2019, ultimately raising more than $19 million from approximately 500 investors. Th
To embed, copy and paste the code into your website or blog:
As the cannabis industry continues to evolve and generate capital raising and investment opportunities, the SEC Division of Enforcement will continue to closely keep watch and target the bad actors that new market opportunities such as this inevitably and unfortunately attract. Along those lines, investors looking to purchase stock in supposed cannabis company, Covalent Collective, may have found vindication in the recent judgment against Geoffrey Thompson, of Frankfurt, Illinois. Thompson is now permanently barred from engaging in the issuance, purchase, offer, or sale of any security, except in connection with his own personal account. On January 20, 2021, the United States District Court for the Northern District of Illinois (Case No. 1:20-cv-05205), ruled in favor of the United States Securities & Exchange Commission (SEC), in connection with its complaint targeting Thompson. Although Thompson did not admit or de
Wednesday, January 27, 2021
As the cannabis industry continues to evolve and generate capital raising and investment opportunities, the SEC Division of Enforcement will continue to closely keep watch and target the bad actors that new market opportunities such as this inevitably and unfortunately attract. Along those lines, investors looking to purchase stock in supposed cannabis company, Covalent Collective, may have found vindication in the recent judgment against Geoffrey Thompson, of Frankfurt, Illinois. Thompson is now permanently barred from engaging in the issuance, purchase, offer, or sale of any security, except in connection with his own personal account. On January 20, 2021, the United States District Court for the Northern District of Illinois (Case No. 1:20-cv-05205), ruled in favor of the United States Securities & Exchange Commission (SEC), in connection with its complaint targeting Thompson. Although Thompson did not admit or deny the allegations, he
An Illinois man must pay the U.S. Securities and Exchange Commission more than a half-million dollars and is permanently banned from selling securities after running an alleged $19 million cannabis stock scheme that generated no revenue for its investors, the commission announced Thursday.
Litigation Release No. 25014 / January 21, 2021
Securities and Exchange Commission v. Geoffrey Thompson, Civil Action No. 1:20-cv-05205 (N.D. Ill filed September 3, 2020)
The Securities and Exchange Commission today announced that recidivist securities law violator Geoffrey Thompson agreed to a permanent, conduct-based injunction and to pay more than $540,000 to settle the SEC s charges that he conducted illegal securities offerings. The U.S. District Court for the Northern District of Illinois entered a final judgment against Thompson on January 20, 2021.
The SEC s complaint, filed September 3, 2020, alleged that Thompson and his company, Covalent Collective, Inc., raised more than $19 million from approximately 500 investors through unregistered securities offerings for which no exemption from registration applied. As alleged in the complaint, Thompson used numerous mechanisms to solicit investors, including providing investors video and audio recordings in which Thompson enco