SEC gets $1 million in penalties for alleged pot-and-pizza fraud

By Sarah Jarvis (January 24, 2022, 4:54 PM EST) – A California federal judge has ordered an alleged marijuana investment company and its affiliates to pay more than $1 million in civil penalties, restitution and interest after the US Securities and Exchange Commission accused the company of misleading investors and defrauding nearly $613,000 by offering securities.

In a final judgment filed Thursday, U.S. District Judge Stanley Blumenfeld Jr. said none of the defendants appeared for a hearing on the SEC’s default judgment motion earlier this month, including VerdeGroup. Investment Partners Inc. and its alleged director, Thomas Gaffney. They also did not object to the motion, the court noted.

By granting…

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