A strain of marijuana called Power Plant is photographed on Saturday, Feb. 22, 2020, at the University City home of a grower who is cultivating in his basement legally for personal use. Photo by Christian Gooden, cgooden@post-dispatch.com
JEFFERSON CITY — The Missouri secretary of state’s office said Monday a Eureka man sold unregistered investments in a medical marijuana company and that the money was spent on personal expenses.
The secretary of state’s securities division issued a cease-and-desist order to Shawn Harrison, Kristie Harrison and Kevin Larson, as well as their Eureka-based company Cannabis Plus Missouri LLC.
A news release said Shawn Harrison is accused of selling at least $10,000 worth of investments to at least three St. Louis-area residents between April and May 2019.
The release said Harrison and his businesses, Cannabis Plus Missouri LLC and Can Plus MO Investments, weren’t registered with the state to offer and/or sell securities.
“Prior to the offer and/or sale of securities,” the release said, “it was not disclosed that the funds would be used for anything other than licensure and startup costs. Instead, the funds were used for personal expenditures.”
The release said Larson aided in soliciting investments. It said Shawn Harrison’s spouse, Kristie Harrison, “aided the enterprise with financial records” and was listed on banking records.
The securities division ordered the company to “show cause” — or explain — why they shouldn’t have to pay at least $21,000 in restitution and interest, investigation costs and civil penalties.
“These allegations are not truthful,” Kristie Harrison said in a brief email on Monday.
Neither Cannabis Plus Missouri LLC nor Can Plus MO Investments were listed in state records of companies that applied to open medical marijuana cultivation facilities.
Secretary of State Jay Ashcroft, a Republican, predicted more “fraudulent schemes” as the medical marijuana industry evolves in the state.
“As the medical marijuana industry grows in Missouri, fraudulent investment schemes will arise,” he said in a statement. “Before you part with your money, find out if the company or people you are considering investing with are properly registered.”
Individuals can find background on brokers at www.missouriprotectsinvestors.com or call the investor protection hotline at 800-721-7996.
The Department of Health and Senior Services said Friday it had uncovered evidence that someone certifying medical marijuana patients falsely used the name of a physician on about 600 forms.
The department said it referred the case to the attorney general’s office and the Board of Healing Arts.
It was initially unclear whether the action Monday was the culmination of an probe into another medical marijuana venture the secretary of state’s office opened last year.
Get high-interest updates about the budding marijuana industry around the St. Louis area.
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