Pot's New Growing Pains: Financial Scams

Wall Street agency warns investors about shady investment offers
By John Johnson,  Newser Staff
Posted Aug 20, 2013 2:28 PM CDT
Scammers envision big profits in the marijuana industry.   (AP Photo/Matilde Campodonico, File)

(Newser) – Another sign that the marijuana industry is getting all grown up: Financial scammers are moving in. The agency that regulates Wall Street is warning investors about an increase in iffy investment pitches, reports the Los Angeles Times. So if you get any emails from marijuana start-ups urging you to act now to get in on the action, be warned. “Whenever there’s a next big thing, we see fraudsters swimming like sharks trying to get in on the action,” says an official with the Financial Industry Regulatory Authority. “And that appears to be what’s happening here.” Would-be investors should check out a company's regulatory filings with the SEC—and make sure said company has an actual business plan.

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