Medical pot entrepreneur faces $50,000 fine
HOLYOKE, Mass. (AP) — A Massachusetts man who founded a company to cultivate recreational marijuana faces a $50,000 fine for allegedly selling $1.3 million in unregistered securities to about 40 investors.
The secretary of state’s office says it reached a consent order last week with David Caputo, founder of Positronic Farms.
The 55-year-old Holyoke man had planned to convert an old paper mill into a cultivation facility.
It’s against the law to sell or attempt to sell to the public financial securities before they are registered with the Securities and Exchange Commission.
Caputo won’t have to pay the fine unless his financial circumstances improve within five years.
He neither admitted nor denied the securities violations.
He told The Daily Hampshire Gazette he “tried to do everything right” and received incorrect advice from his attorney.
Information from: Daily Hampshire Gazette (Northampton, Mass.), http://www.gazettenet.com