The U.S. Securities and Exchange Commission has charged Nevada-based cannabis company American Patriot Brands (APB) with fraud in a “long-running scheme” in which the company raised more than $30 million from investors.
The Securities and Exchange Commission (SEC) filed the civil complaint Thursday in the U.S. District Court for the District of Puerto Rico.
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The complaint names as defendants American Patriot CEO Robert Lee, current and former executives Brian Pallas and J. Bernard Rice as well as the company and several related businesses.
The SEC alleged in a news release that the executives “made a series of false and misleading statements to investors about various aspects of the company, including its financial condition, the scope of its operations, the value of its Oregon cannabis farm, and the safety and security of investing in APB.”
“The complaint alleges that APB funneled millions in investor proceeds to
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