SEC lawuit alleges cannabis investor manipulated MassRoots stock
The U.S. Securities and Exchange Commission filed a lawsuit against longtime marijuana investor Douglas Leighton, alleging that he and six associates made millions of dollars by engaging in illegal stock manipulation involving Denver-based cannabis technology firm MassRoots.
The suit alleges that Leighton – founder of Dutchess Capital Management and current principal at Altar Rock Capital – and the other defendants purchased roughly 90% of MassRoots shares in a private offering in 2014. A year later, Leighton steered the company toward a public offering.