SEC cracks down on WeedGenics for massive $60Million Cannabis ponzi scheme
The US Securities and Exchange Commission (SEC) has announced that it has obtained an emergency order to shut down WeedGenics.
WeedGenics is an alleged Ponzi-like scheme orchestrated by two individuals who managed more than $60 million from investors by promoting a fraudulent cannabis business.
Integrated National Resources, Inc., which does business as "WeedGenics," run by Rolf Max Hirschmann and Patrick Earl Williams, a rapper known as "BigRigBaby," raised more than $60 million from investors to expand their cannabis operations but have instead allegedly used the majority of funds to make $16.2 million in Ponzi-like payments and to enrich themselves.
According to the complaint, Hirschmann and Williams offered investors an investment opportunity to raise funds for expanding WeedGenics facilities. They guaranteed returns of up to 36%. However, it has been revealed that Hirschmann and Williams didn't own or operate any such facilities.
After receiving the investors' money, Hirschmann and Williams transferred it through numerous accounts. They allegedly used these transfers to benefit others and for personal purposes, including entertainment, jewelry, luxury cars, and residential real estate.
The complaint further reveals that Hirschmann, assuming the role of the company's public representative, adopted the fictitious name Max Bergmann throughout all his interactions with investors.
