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US SEC charges CanaFarma Hemp Products, co-founders, with $15 million fraud, fund misappropriation

( October 6, 2021, 13:19 GMT | Official Statement) -- MLex Summary: Canadian startup hemp company CanaFarma Hemp Products and its two founders, Vitaly Fargesen and Igor Palatnik, have been charged by the US Securities and Exchange Commission with fraudulently raising approximately $15 million in investor funds. CanaFarma, Fargesen, and Palatnik allegedly told investors that CanaFarma was a fully integrated company that was processing hemp from its own farm when in fact it had not processed any of this hemp. Fargesen and Palatnik also allegedly misappropriated at least $4 million and used the funds for their personal use and purposes unrelated to CanaFarma, the SEC said. In a parallel action, Fargesen and Palatnik face four counts each of criminal charges from the US Department of Justice.See statement and document below....

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