As the legalization of marijuana grows, more and more pot-related companies will be starting. With their start, they’ll be seeking investment and trying to issue stock. The Financial Industry Regulatory Authority (FINRA) warned of dishonest companies seeking to raise funds to Bloomberg yesterday.
Without naming specific companies, FINRA warns investors to be suspicious of potential scams particularly from individuals that have formerly served prison sentences. But not everyone is so happy with the government watchdog’s warning.
Bruce Perlowin, CEO of Hemp Inc., a company that sells hemp products, let Bloomberg know how he felt about the warning from FINRA about working with companies led by former felons.
“That’s not a negative, nor is it something I’ve ever hidden. It means I know marijuana, I know logistics. I ran one of the largest marijuana smuggling operations in the history of the U.S,” said Perlowin.
Businesses looking to get in, make a quick dollar, and get out are not welcome in the new industry by either FINRA or other industry leaders. Many have voiced their opinion that they encourage the government to regulate their industry so as to protect their, and by extension the industry’s, reputation.