CANNABIS A FRONT FOR FRAUD SCHEMES

The cannabis industry is increasingly being used to cover for Ponzi schemes, with fraudsters seeking to exploit potential investors in the market. Most cases brought by the US Securities and Exchange Commission involve operations that purport to be cannabis businesses but instead are schemes — typically of the Ponzi and pump-and-dump variety — said a former DEA chief, who has advised the financial community to conduct the same due diligence as appropriate for any other kind of investment, regardless of the product.