SEC Warns of Marijuana Related Investments

The Securities and Exchange Commission issued a strong warning today to prospective investors in marijuana based businesses, cautioning those investors against potential fraud.

The investor alert, available here, opens with a direct warning: "[t]he SEC has seen an increase in the number of investor complaints regarding marijuana-related investments" and the government's securities authority has "recently issued temporary trading suspensions for the common stock of five different companies that claim their operations relate to the marijuana industry".

Like any unregistered security, proceed with extreme caution. Despite everyone knowing that if something is too good to be true, it probably is, individuals continuously invest in fraudulent businesses with no likely investment potential. Always contact legal counsel when considering such an investment.

Colorado Poll Numbers

Not surprisingly, poll numbers re: marijuana legalization have only increased since Colorado's legalization.

According to a new survey from Public Policy Polling, Marijuana has become more popular in the two months the law legalizing recreational use of the drug has been in effect in Colorado.

The poll found 57 per cent of Coloradoans now say they think marijuana usage should be legal, compared with 35 per cent who say it should not. The 22-point spread has widened from the 10.5-point spread by which voters passed the 2012 Colorado referendum legalizing small amounts of possession and growing in the state.

h/t Business Insider Australia

Investment Group Promotes Marijuana Business in Front of New York Assembly Health Committee

Investment group speaks in front of New York Assembly Health Committee in Albany to promote marijuana-based business. A company called Articulated Investors, with 2 principals with finance and real estate backgrounds, has real estate positions in Colorado, and an interest in expanding their network into other states.  h/t Main St

This is a positive development, even if it is an isolated case. Marijuana businesses would be a boon for New York, and New York investors, and any push by the finance (and real estate) community on marijuana legislation is important, necessary, and will resonate.

New York Comptroller John Liu Report on Fiscal Upside to Legalization

Nice piece over at the Village Voice Blog by Tessa Stuart, in which Ms. Stuart writes that in light of the recent positive polling, it may be time to "unearth that report commissioned by former Comptroller John Liu back in August: "Regulating and Taxing Marijuana: the Fiscal Impact on New York."

Among the reasons is the following: "Liu's office estimated that allowing medical marijuana and legalizing personal possession of up to one ounce of marijuana could raise $431 million dollars total for New York City -- $400 million in excise and sales taxes and an additional $31 million saved in law enforcement and court costs." A link to Liu's report is on the 2nd page after the jump. h/t Village Voice and Ms. Tessa Stuart