SEC sues Denver businessman for stock fraud

DENVER – The Securities and Exchange Commission has sued a Denver businesssman for allegedly promoting a penny stock publicly while selling 6.4 million shares for $7 million.

Business Den reports that Jeffrey O. Friedland, chief executive of U.S. Investment Cos.,  has been sued for fraud, claiming he violated SEC rules by failing to disclose he was being paid to promote Israeli cannabis company OWC Pharmaceutical Research Corp. and proclaiming publicly that the stock was a buy while unloading millions of shares.

According to the lawsuit, he paid $120,000 for 1.3 million shares in 2014 and then in 2016 acquired another 5.1 million shares as compensation for handling media and investor relations. He soldhis shares, around 6 percent of the company’s value, in 2017 for about $7 million.

SPONSORED CONTENT

Answers to your commercial solar frequently asked questions

Navigating the complexities of a solar capital energy improvement can be challenging, so we’ve answered some of the most common questions.

The SEC contends said Friedland didn’t disclose in promotional emails and media appearances – on sites such as Wall Street Raw, Cannabis Insider and Pot Stock Radio – that he was a paid consultant to OWC