U.S. CBD firm facing fraud charges

Seal of the Securities & Exchange Commission

For the second time in a year, a U.S.-based hemp firm has been hit with fraud charges by the federal Securities & Exchange Commission (SEC). The SEC filed the charges last week against Las Vegas-based CBD company CV Sciences (formerly CannaVest) and Michael Mona, the company’s CEO.

The SEC last June hit Hemp Inc. and its founder Bruce Perloin with a fraud case, claiming his firm evaded securities rules and sold a massive number of unregistered shares. That case is ongoing.

The CV Sciences charges are based on SEC claims that in 2013 while operating under the name CannaVest, the company inflated the valuation of its assets as a result of the acquisition of PhytoSphere, a research and consulting firm, Forbes reported.

A successful outcome of the SEC civil suit would mean financial penalties for both Mona and CannaVest (CV Sciences), and bar Mona from serving as an officer or director of any company whose shares are publicly traded.

The company still operates as CannaVest in Europe.

Click the icon below to read the Full SEC Complaint: 

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