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Showing posts from May, 2014

Marijuana goes mainstream as SEC issues fraud alert

If there was any doubt that marijuana has gone mainstream in American culture, the question should be put to rest with the simple knowledge that there are no securities fraud schemes centered around it. Multiple such schemes, in fact. Not just one or two, but at least five of them that have been identified thus far.

The Securities and Exchange Commission today cautioned investors about the potential for fraud in microcap companies that claim their operations relate to the marijuana industry after the agency suspended trading in the fifth such company within the past two months.

The SEC issued an investor alert warning about possible scams involving marijuana-related investments, noting that fraudsters often exploit the latest growth industry to lure investors with the promise of high returns.  “For marijuana-related companies that are not required to report with the SEC, investors may have limited information about the company’s management, products, services, and finances,” the SEC’…

You're welcome

It's always an interesting moment when you look at the tax code and realize that a gimmick you used to use several years ago is a big part of the reason why a certain set of rules exists today.

Tax attorneys and CPAs of America, you're welcome.