A Colorado medical marijuana company and its owner have received a final cease and desist order from the Colorado Division of Securities.
Colorado Wellness Providers and Charles E. Perry, both of Fort Collins, were named in the order, which alleges Perry sought to raise capital from investors for the medical marijuana industry and advertised on Craigslist.
He was seeking $50,000 in capital to finish the facility. The investment was to be collateralized, according to the ad, by a marijuana crop that would be insured by Lloyds of London.
The order prohibits the company from offering or selling any security in or from the state of Colorado in violation of state law.
Perry also allegedly published an article on the Internet, titled: “The Great Start-up Game: Colorado’s Medical Marijuana Economy: an Explosion of Ganjaprenuership.”
The staff of the division said Perry did not register his security offering, and because he offered the opportunity to the public at large, he was unable to take advantage of any private offering exemption under state law.
“Investors need to protect themselves by exercising common sense, and ignoring Internet hype for stocks of unknown companies,” said Commissioner Fred Joseph, who also cautioned against investing in the latest “fad.”