SEC charges cannabis vending firm, founder in $12M case

Federal securities regulators charged a California company peddling marijuana vending machines and its founder with issuing bogus news releases that bragged about phony “record” sales and touted the business as an MJ industry leader. Much of Medbox’s revenue, however, came from “sham transactions with a secret affiliate,” according to a news release from the Securities and Exchange Commission. According to the SEC’s complaint, Medbox provided marijuana consulting services and claimed to sell vending machines called “Medbox” devices that dispensed marijuana using biometric identification. The SEC said Medbox founder Vincent Mehdizadeh allegedly acknowledged in a text message that “the only ...