A Thornton man who used Craigslist to solicit investors for a marijuana business was issued a cease and desist order Thursday by Colorado’s Division of Securities.
The agency warned that such investments are not only risky but that they must abide by securities laws, which Ryan M. Quinn was not doing.
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Quinn sought high-net worth investors for MMJ Mountain Resorts and funding for two to three marijuana dispensaries in resort areas, according to the filing. Ads ran in April and May, and Quinn got at least one $240,000 solicitation.
Quinn agreed to the terms of the order that require him to stop or face civil or criminal action.
Colorado Securities Commissioner Gerald Rome said such funding could cause investors to run afoul of the federal Controlled Substances Act, which classifies marijuana as an illegal substance. Rome did point to the Colorado Crowdfunding Act, which would allow local pot startups to raise money from area residents.
Tamara Chuang: 303-954-1209, firstname.lastname@example.org or twitter.com/Gadgetress