An Ohio man is facing 20 felony counts after prosecutors accused him of soliciting $200,000 from investors for a cannabis candy company while misrepresenting or omitting key information about the investment.
The defendant was identified as Garett Fortune, 54, of Rocky River, according to the Ohio Department of Commerce Division of Securities.
The agency said a Cuyahoga County grand jury indicted Fortune on June 26. The alleged conduct happened between June 2021 and May 2022.
Prosecutors said the case involves six people who were solicited to invest in a cannabis candy company.
The Investment Pitch Centered on Cannabis Candy
Prosecutors allege Fortune solicited $200,000 from six investors under the premise that the money would be used to operate a cannabis candy company.
The indictment alleges Fortune misrepresented material facts about the investment. It also alleges he failed to disclose information the investors were entitled to receive before or during the investment process.
The Charge List Includes Securities Fraud and Theft
Fortune was indicted on six counts of false representation and six counts of securities fraud, according to the Ohio Department of Commerce Division of Securities.
He also faces four counts of theft from a person in a protected class, three counts of grand theft, and one count of money laundering.
The protected-class theft counts indicate that some alleged victims may fall into a legally protected category, but officials did not release additional details about those investors in the public announcement.
The Case Is Being Prosecuted in Cuyahoga County
The Cuyahoga County Prosecutor’s Office is handling the case in partnership with the Ohio Division of Securities.
The Division of Securities announced the indictment as part of its investor-protection work.
Fortune remains presumed innocent unless proven guilty in court. The next steps in the case will determine whether prosecutors can prove the alleged $200,000 cannabis candy investment scheme and the 20 felony counts tied to it.
Investors Can Check a Pitch Before Sending Money
A private business pitch can still raise securities concerns when people are asked to invest money in a company and rely on someone else to make the venture profitable.
Before sending money, investors can ask for written offering materials, the legal name of the business, how the money will be used, what risks are disclosed, whether the investment is registered or exempt, and whether the person selling it is licensed or registered to sell securities.
The Ohio Division of Securities accepts complaints involving possible violations of licensing, registration, and anti-fraud provisions. Investors can also report suspected securities fraud to the SEC.
Anyone who believes they invested in a fraudulent business pitch should preserve subscription agreements, offering documents, emails, text messages, payment records, bank statements, promotional materials, names, phone numbers, and any promises made about returns or business operations.