SEC Sues MassRoots Investors for Alleged Pump and Dump
Several investors in the defunct “Facebook-like” social network for weed users, MassRoots, have been named in a lawsuit launched by the U.S. Securities and Exchange Commission (SEC). According to a post on the Green Market Report website, the lawsuit targets the lead investors in the company, but not the founder and CEO, Isaac Dietrich.
One cannabis industry investor in particular, Douglas Leighton, is singled out in the lawsuit as having promoted the MassRoots stock in an effort to raise the price so he could sell at a large profit. This “pump and dump” scheme is alleged to have been concocted by the investors named in the suit, which made up 90% of all company shares owned.
While not naming CEO Isaac Dietrich, the SEC lawsuit does refer to a MassRoots executive who is not named as having been instructed on the technique involved in the pump and dump conspiracy.