SEC Fights Hemp Co.’s Bid To Dismiss $11M Scalping Swimsuit

By Sarah Jarvis (December 20, 2021, 8:06 PM EST) — The U.S. Securities and Exchange Commission has pushed back against a hemp products company’s dismissal bid in a suit alleging it was part of an $11 million penny stock “scalping” scheme, saying the company mischaracterized the agency’s allegations.

The SEC said in a Friday opposition memo that HempAmericana Inc. and its CEO, Salvador Rosillo, made misleading disclosures in Regulation A circulars they filed, including that 20% of offering proceeds would be used for marketing and sales. The agency said HempAmericana and Rosillo conflated that disclosure with the fact that they used 29% of the proceeds for stock promotion, saying “sales and…

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