Pot is a growing business in Illinois and other states.
And that means marijuana investment scams are becoming a growing problem.
Illinois Secretary of State Jesse White issued a warning about investment scams last week. Canada became the second country to legalize recreational marijuana use. Sales there started last week. In the U.S., nine states and Washington D.C. allow for recreational use of marijuana while many other states allow for medical use. The drug remains illegal under federal law.
“Whenever something is in the news, people who are on the wrong side of the ledger, want to line their pockets,” White said. “They come up with the various schemes to take your hard earned money. And we want to do all that we can to keep these people out of your pocket, so to speak.”
White said people need to do their research before investing in anything, especially the new marketplace of marijuana.
“The company must be registered with the state of Illinois,” White said. “If you have any questions about it, you can go to the website AvoidTheScam.net.”
White said the North American Securities Administrators Association has information on scammers and other flagged-businesses.
If you have been scammed, White said the securities department inside the Secretary of State’s office needs to know.