The US Securities and Exchange Commission brought an action against Richard J. Greenlaw for using Craigslist to sell unregistered securities in companies that market CBD.  Greenlaw raised over $500,000 from fifty-nine individuals in twenty one states. The SEC alleges that Greenlaw failed to comply with the securities regulations by selling interests in limited liability companies (LLC) to non-accredited investors.  The investors signed subscription agreements that indicated that stated they were accredited due to the fact that they were directors, executive officers or general partners of the LLCs.  The SEC indicated that this was not the case, and that the investors did not have the financial resources needed to be an accredited investor. Greenlaw agreed to settle the action with the SEC by paying disgorgement and interest of $340,142 and a $50,000 civil penalty.  Greenlaw is also prohibited from selling unregistered securities in the future.

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