The U.S. Securities and Exchange Commission has accused a Colorado marijuana businessman of engaging in a $7 million securities fraud that helped him buy a Snowmass Village home for nearly $2 million, a $687,000 condo in the Denver area, and a piano and two vehicles for $100,000, among other questionable dealings.
Jeffrey O. Friedland (Photo provided by The Aspen Times)
On Monday, the SEC launched a two-pronged legal action against Denver resident Jeffrey O. Friedland and two limited liability companies for allegedly committing fraud through an Israeli medical marijuana company.
In addition to its 36-page lawsuit, the SEC also filed an emergency motion to freeze Friedland’s assets “wherever located, that are derived directly or indirectly from the proceeds of Friedland’s fraudulent sale of securities alleged in the commission’s complaint,” states the motion, which also seeks a hearing on the matter. The filings were made in Denver federal court.
The SEC also said it has not notified Friedland of the court action because there “is a risk that stolen investors’ funds or assets purchased with stolen investor funds may be transferred, dissipated or secreted.”
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