|Re: Stock promoter Eric Dickson/GHIL GHIL SEC trading suspension |
PR: http://www.sec.gov/litigation/suspensions/2014/34-72758.pdf (PDF)
Order: http://www.sec.gov/litigation/suspensions/2014/34-72758-o.pdf (PDF)
Marijuana penny stock says Florida promoter made false statements hyping company
South Florida Business Journal
A Canadian medical marijuana branding company issued a rare rebuke to a Palm Beach County stock promoter after his newsletter reportedly caused its penny stock to spike in value.
Torando-based Green Hill Industries (OTCBB: GHIL), doing business as Ross’ Gold, said in a press release that it noticed unusually high trading of its shares on Tuesday and Wednesday, and was advised by the British Columbia Securities Commission that a promotional newsletter was circulating on the Internet hyping its stock. Green Hill said the newsletter had numerous false statements about its business.
Shares of GHIL surged by 54 cents, or 61 percent, on Tuesday and Wednesday. They fell 26 cents on Thursday after the company made its announcement.
The letter, which touts a “huge 3,279% profit!” and says Ross’ Gold will become the “Coca-Cola of the pot world," was reportedly authored by Eric Dickson, editor of Breakaway Stocks. He’s also a manager at Delray Beach-based Trinity Investment Research.
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Dickson couldn’t be reached for comment. The newsletter claimed to be a paid advertisement by Development Solutions Co. Ltd., which is not registered in Florida.
Green Hill said it has no business dealings or contact with either Dickson or Development Solutions.
Among the false statements the company claims Dickson made in his newsletter:
That a huge profit and giant-sized returns might be made from trading in the company's stock.
That Ross' Gold will be sold in the United States where in fact, the company has no such plans.
That Ross' Gold is a marijuana company where in fact it is a licensing and branding company.
That the company is the first publicly traded marijuana company in Canada.
That the company's CEO made money for outside investors as a real estate developer where in fact no money was made for outside investors.
That the company could be the subject of a buyout where, in fact, there is no buyout or planned buyout.
The Securities and Exchange Commission warned investors in May about speculative claims from marijuana penny stocks.
Brian Bandell covers banking, finance, health care and education. Get the latest banking industry news here.
Industries:Banking & Financial Services