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Marijuana Stock Promoters Charged With Stock Manipulation

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marijuana stocks stockThe world of marijuana stocks is a shady, shady place. This is something that I have been saying for years now. All of the marijuana stock companies that I have seen so far are nothing but pump and dump models that rely on smoke, mirrors, and hype. These companies either have no end product, or a horrible end product that no one buys or uses.

These companies are easy to spot, as they rely on general claims to hype their stock. I want to see a company offering stock say, ‘Here is my product, it is great, people are buying it, here is math to prove it.’ Instead these companies say things like ‘The industry is growing at a rapid pace. We are in the industry, this is your chance to get in and make a fortune!’ That is just hype, and these types of claims have zero objective evidence to back them up. Yes, the industry is growing at a rapid pace, and yes, there is a lot of money to be made. But how does that specific company and it’s stock fit in that makes it a good buy?

Some of these scammers are getting caught. Per the Seattle Times:

The promoters sued by the SEC are: Mikhail Galas, 25, and Tovy Pustovit, 20, both of Vancouver, Wash.; Alexander Hawatmeh, 24, of Lincoln City, Ore.; and Christopher Mrowca, 25, of Bradenton, Fla.

Galas, Hawatmeh and Mrowca also were charged by federal prosecutors with manipulating, in 2011 and 2012, the stock of ISM International. “During that period the men accounted for 85 percent of the trades in the particular stock related to a purported flea-market business in Florida,” according to the U.S. Attorney’s Office.

The men sent “fraudulent and misleading ‘blast’ emails through promotional websites and email addresses under their control with the intent of increasing demand for the stock,” and then dumped their shares for a profit of $223,000, prosecutors say.

If you are considering buying marijuana stock, be very cautious. I haven’t found a company worthy of my hard earned dollars to buy stock from yet, and I spend more time looking at this topic than most. If it’s too good to be true, it probably is. I’m not saying a legit company isn’t out there, but I haven’t found one yet. If someone has a good company, that offers a quality product/service that people are actually using/buying, I’d love to hear about it.

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  • reefer

    kannalife- now isn’t that the company who was GIFTED the patent for cannabinoids as neuroprotectants? Think they won’t be lobbying to keep the plant itself(and especially the strains which are very neuroprotective NATURALLY, just the way they are) TOTALLY ILLEGAL? yes, I would say they are VERY predatory. Maybe not to their stock investors, but to people, patients, VERY, VERY much so.

  • Jetdoc

    It HAS to be public knowledge! People MAY go check the price of the stock but don’t click on ALL of the links available. Start clicking on shit and you’ll be amazed what all’s out there! ;-)

  • Sarijuana

    Wow. I am so naive. I had no idea that you can know who owns what stock.

  • John H.

    What happened to innocent until proven guilty? Anyone jumping to conclusions before all facts come to light and all are heard should think twice. After all, it was just a couple years ago that marijuana activists were considered criminals as well. I’m not saying to compare the two, however; keep in mind the media can make anyone or anything look bad (or good, on that note).

  • Jetdoc

    Stock reports well tell you. If you punch in their stock symbol. ALL the trends of the stock. Graphs on its performance, rise and fall the stock, the DATES of the biggest stock price movement and you can even get into WHO are the major shareholders as well as THEIR stock in company and WHEN they bought it and sold it as well. THAT will show you if it’s being manipulated. Sometimes they seem confusing, but if you attack them using common sense it’ll come clear.

  • William Sumner

    Cannabis stock trading will be a real thing after it’s legal nationwide, not before.

  • Sarijuana

    I don’t think these guys are predatory. I found this recent info…

    “A pharmaceutical company has inked a licensing agreement with the
    National Institutes of Health (NIH) to develop, test and possibly sell
    cannabis-based drugs for use in treating head trauma.

    Under the agreement, KannaLife Sciences will research CBD and other cannabis-derived treatments for chronic traumatic encephalopathy (CTE), a degenerative brain condition most common among athletes who played contact sports.

    The disease has received widespread press in recent years in relation
    to the long-term health of retired professional football players.

    NIH has not publicly commented on the arrangement.

    KannaLife – based in New York – won approval from the NIH several years ago to conduct research on potential treatments for ailments tied to liver issues.”

    And isn’t KannaLife a subsidiary of Medical Marijuana Inc? I can’t say why these guys would be a good stock bet cuz I have no clue, but they certainly are not in the same sand lot league as the scumbags mentioned above. I’d hold this stock for a good long while if I had it.

  • Sarijuana

    How is it that investors can see who is buying and selling?

  • mike1188

    People if it sound to good to be true it is to good to be true.
    Do your home work don’t fall for scams.

  • mike1188

    Fucking all scammers should be givin to big bubba butt buster in the state penn. see how they liked being screwed.
    All scammers should meet big bubba

  • Ron

    I wish you would give a list of some of the culprits, but I respect your reservations for fear of legal repercussions. Therefore, I will offer one: Medical Marijuna, Inc. I bought some shares for 45 cents and held it for two years and it never reached that price again. Last week I checked and it was down to 15 cents. Please be careful, folks.

  • Jetdoc

    I knew that all you had to do was follow the money and you’d see that 2 guys are manipulating the stock prices. HELL, when 2 guys make 85% of the stock trades it should be OBVIOUS to the most casual observer that “marijuana stocks” are actually no better than a PYRAMID scheme! That’s at BEST! It might just be on the edge of FRAUD!