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SEC Orders Adam Nugent, FWM to Pay $3 Million over 2018 Cannabis Investment Scheme

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The Securities and Exchange Commission announced on Tuesday that it had settled fraud charges against Utah-based registered investment adviser Foresight Wealth Management (FWM) and its principal, Adam E. Nugent, for violations related to a private fund they managed.

The SEC is ordering them to pay more than $3 million for allegedly defrauding investors who gave roughly $19.5 million to invest in a company called Agronomics.

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The SEC stated that between March 1. 2018, and Dec. 31, 2018, Foresight and Nugent raised approximately $19.5 million from more than 80 investors, many of whom were individual advisory clients of Foresight and Nugent, through offerings of limited partnership interests and promissory notes in the private fund.

Foresight_Wealth

Instead of using the money for the company, the SEC claims the two entities misused the fund assets, failed to disclose conflicts of interests, misrepresented to investors how the proceeds of their investment would be used, and breached Ag Capital’s limited partnership agreement.

The SEC said that Foresight and Nugent agreed, “without admitting or denying the SEC’s findings, to a cease-and-desist order; joint and several disgorgement of $1,379,061, prejudgment interest of $280,003, and a civil penalty of $1,379,061; censure as to Foresight; and undertakings, an industry bar and investment company prohibition as to Nugent.”

Who is FWM?

FWM is a Utah limited liability company headquartered in Draper, Utah. It was formed in 2010, and has been registered with the Commission as an investment adviser since 2015. FWM advises multiple types of clients, including individuals, seven hedge funds, and three private equity funds, including Ag Capital.

On its Form ADV filed on Sept. 9, 2022, FWM reported approximately $1.35 billion in regulatory assets under management.

Since Nugent, a resident of Salt Lake City, formed FWM in 2010, he has been the founder, chief executive officer, sole owner, managing member, and an investment adviser representative of FWM. Nugent was a principal shareholder of Agronomic Management, Ag Capital’s original general partner.

The Investment

FWM began taking investor money to grow and distribute marijuana in California. Called “syndicate transactions,” these investments typically paid investors a “net multiplier” between 1.25 and 1.60 of their original principal.

Between August 2017 and January 2018, 29 advisory clients of FWM and Nugent invested a total of approximately $2.9 million in the syndicate transactions. According to the SEC allegations, this original money was used to finance the creation of the Agronomic companies. Nugent formed Ag Capital, which was meant to finance Ag Holdings’ operations, and Ag Management, the general partner of Ag Capital, which was meant to help manage Ag Holdings’ daily affairs.

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SEC Orders Adam Nugent, FWM to Pay $3 Million over Cannabis Investment Scheme



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Latina woman alleges she was denied job with cannabis nonprofit because she’s not Black

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A Latina from Lawndale is suing an organization that bills itself as fighting for “cannabis justice” with a goal to “heal the legacy of racism in America,” alleging she was told she was not chosen for a position with the nonprofit in 2023 because she is not Black.

Briseida Lupercio Chavez’s Los Angeles Superior Court lawsuit against the Hood Incubator alleges racial discrimination, retaliation and wrongful failure to hire in violation of public policy. She seeks unspecified compensatory and punitive damages.

A Hood Incubator representative did not immediately reply to a request for comment on the suit brought Jan. 5.

According to the suit, the Hood Incubator’s website states its purpose is to fight for “cannabis justice” and to “heal the legacy of racism in America . . . for the health and prosperity” of everyone.

“However, despite its stated vision of being an anti-racist organization, its blatantly discriminatory hiring practices could not be more contradictory to its stated purpose,” the suit states.

Chavez interviewed for a position with the Hood Incubator via Zoom last July with two organization representatives, one of whom is a managing agent, the suit states. The two representatives remained on the Zoom call after the interview and spent 10 minutes talking about why they were  not interested in hiring Chavez because she is not Black, the suit states.

Both representatives mocked Chavez’s race and for saying she had biracial children, telling the plaintiff they found her comments “off- putting” and falsely implying that she only claims to care about Black people because she has Black kids and friends,” according to the suit.

One of the representatives told Chavez that because she is a Latina, she is used to the Latino community “pulling strings for each other,” the suit states.

Chavez was “embarrassed, ashamed, emotionally broken and in financial desperation” after learning that she was not hired allegedly due to her race, national origin and/or color,” the suit states.

Latina woman alleges she was denied job with cannabis nonprofit because she’s not Black

 



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Man allegedly killed roommate, went back to sleep and bought some cannabis before others implored him to call 911

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It is, of course, a law & crime story..

A Maryland man insisted that he shot his roommate in self-defense, but admitted he only called 911 after going back to sleep, buying some marijuana, and communicating with people who implored him to contact authorities, according to court documents obtained by Washington, D.C., NBC affiliate WRC and Fox affiliate WTTG.

Richard Bennaugh, 38, is charged with manslaughter, assault in the first degree, assault in the second degree, and possession of a firearm as someone convicted of a violent felony, show from Prince George’s County show.

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‘There’s only one way to find out’: Man allegedly killed roommate, went back to sleep and bought some weed before others implored him to call 911



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Illegal immigrant cannabis farmer, 30, is allowed to remain in Britain – because being sent back to Serbia would breach his human rights

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The Daily Mail get over excited once again…

A migrant who was jailed over a cannabis farm worth half a million pounds has been granted permission to stay in the UK after successfully arguing he could not be deported as he no longer spoke his native language.

Clirim Kukaj, 30, is ethnically Albanian but was born and brought up in Serbia until at the age of 13 he entered Britain illegally. Seven years later he was granted indefinite leave to remain.

Kukaj and his lawyers have now successfully appealed his deportation on the grounds that returning him to his native country would be a breach of his human rights because he cannot speak the language and can only converse in Albanian.

Immigrational tribunal judge Fiona Lindsley granted the appeal ‘on human rights grounds’, however, the decision has sparked renewed calls for human rights laws to be reconsidered.

A senior Conservative MP told the Telegraph: ‘This demonstrates why we need urgent reform of the asylum system and human rights laws to allow the rapid and effective deportation of dangerous criminals.’

More Blah here

https://www.dailymail.co.uk/news/article-12941079/Migrant-cannabis-farmer-allowed-remain-Britain-human-right-no-longer-speak-language.html



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