SEC Wins $10 Million Case Against Cannabis Stock Promoter

The TDR Three Takeaways regarding SEC Wins $10 Million Case Against Cannabis Stock Promoter:

1. The Money Street website engaged in a pump-and-dump scheme involving several microcap stocks. 
2. SEC secures a $10 million judgment against cannabis stock promoter Giguiere.
3. Fraudulent ASNT stock activities exposed by the SEC result in a trading halt.

The U.S. Securities and Exchange Commission (SEC) has secured a victory against Gannon Giguiere, a prominent cannabis stock promoter. This judgment, amounting to $10 million, highlights the SEC’s commitment to cracking down on fraudulent trading schemes that exploit unsuspecting investors.

Giguiere’s involvement in fraudulent activities was first brought to light in a 2018 complaint by the SEC. The complaint detailed his use of the website, The Money Street, to engage in a pump-and-dump scheme involving several microcap stocks. These activities resulted in approximately $10 million in illicit proceeds. The judgment against Giguiere includes $7,760,415.97 in disgorgement, $2,091,439.85 in prejudgment interest, and $875,000 in civil penalties. Furthermore, Giguiere has agreed to be permanently barred from serving as an officer or director of any public company and from participating in penny stock offerings.

The fraudulent schemes orchestrated by Giguiere and his associates, including Oliver-Barret Lindsay, Andrew Hackett, Kevin Gillespie, and Annetta Budhu, involved Nevada-based Arias Intel Corp. (ASNT), Eco Science Solutions (ESSI), and a medical device company, KVMD. Both ASNT and ESSI were cannabis-focused companies whose registrations were revoked by the SEC, effectively halting their trading activities.

For Arias Intel Corp. (ASNT), the fraudulent activities included stock promotions and matched trades facilitated by an undercover FBI agent. This scheme was designed to create a misleading appearance of market activity, enticing investors to buy into the stock. The result was a significant financial loss for those investors who were unaware of the manipulative practices at play.

Eco Science Solutions (ESSI) was also central to the fraudulent activities. Giguiere promoted ESSI stock on The Money Street while secretly liquidating his holdings. This deceptive practice resulted in over $8.5 million in illicit gains for Giguiere and his co-conspirators. The SEC’s ability to uncover and address these fraudulent activities underscores its crucial role in protecting market integrity.

Websites like The Money Street should be scrutinized for promoting stocks, and investors must exercise caution and conduct thorough research. The SEC’s actions underscore the importance of regulatory oversight and the judgment against Gannon Giguiere serves as a warning to potential fraudsters, reinforcing the need for vigilance and regulatory enforcement. Want to be updated on Cannabis, AI, Small Cap, and Crypto? Subscribe to our Daily Baked in Newsletter!