October 21 – Secretary of State Jesse White is cautioning citizens to be aware of schemes and risks associated with potentially fraudulent marijuana-related investments.
With investments in marijuana businesses becoming more common, criminals are attempting to use the increased publicity to convince investors to enter risky or outright fraudulent ventures.
“People should do their homework before investing in any fund or venture,” White said. “Remember if you don’t understand the investment or it sounds too good to be true, then you probably shouldn’t invest in it.”
When considering a marijuana-related investment, White advises the public to look at the investor advisory issued by the North American Securities Administrators Association, which is posted on the office’s Securities Department website www.avoidthescam.net.
Investors should also understand that marijuana start-up companies are risky and investors may not be able to cash out of the investment for many years and may risk losing their initial investment if the company does not succeed.
White urges investors who are victims of marijuana-related investments or any other fraudulent investment schemes to file a complaint with the Securities Department. To contact the Secretary of State Securities Department, call 1-800-628-7937 or visit www.avoidthescam.net.