SEC Charges Traders With Marijuana Stock Manipulation

Four stock traders have been charged by the U.S. Securities and Exchange Commission with manipulating shares of cannabis companies in a pump-and-dump scheme.

The stocks affected include GrowLife and Hemp Inc., as well as some non-cannabis securities.

The defendants allegedly used manipulative tactics to create the appearance of heavy trade volume, which in turn caused demand for the stocks – and concurrently, their prices – to rise.

According to the SEC, the defendants netted $2.5 million from the schemes.

The securities agency did not implicate current or former executives with GrowLife or Hemp Inc.

GrowLife had its shares temporarily halted by the SEC earlier this year amid allegations of trading irregularities. The news was soon followed by a change in leadership at the company,

6 comments on “SEC Charges Traders With Marijuana Stock Manipulation
  1. jason kallen on

    Is it odd to anyone that the SEC is all over a 2.5 Million “pump n dump scheme” while other industries are defrauding and laundering Billions on a daily basis? But no ne at the SEC seems to pay attention to that

    Wake up sheeple

    Reply
  2. Bill on

    Must be a moral issue. If there were gay marriage stocks, they would do the same. The fat cat conservatives rule the waves.
    Funny, NOBODY (FTC, FCC, Attorney General, IRS) investigates Bible-thumping Evangelists.

    Reply
  3. Walt on

    It’s not that the sec is attacking the companies it’s a suit against 4 traders who apparently must come from a very wealthy family that spoiled the hell out of them. For being in there early twenties with all that money to actually manipulate the stock they should definitely go to the big house.

    Reply
  4. A.M.M.O on

    SEC is really hurting investors with halts, you can no longer see the bid/ask prices, only the price of the last trade. Investors and companies need to bring lawsuits on the SEC FOR THERE STOCK MANIPULATION!

    Reply
  5. Walt on

    If investors and companies played nice there wouldn’t be any need for the sec. But,the fact is they don’t. I also get frustrated, when you think things might go your way and make a little money, then all of the sudden here comes along a couple of screwballs and make a mess out of it. These people that manipulate the stock really hurt the company. Cannabis companies are trying to show that it’s liget.This does not help.

    Reply
  6. carl4emaj on

    SEC is really hurting investors with halts, you can no longer see the bid/ask prices, only the price of the last trade. Investors and companies need to bring lawsuits on the SEC FOR THERE STOCK MANIPULATION!

    Reply

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