Adam Levin, chairman of Hightimes Holding Corp., has agreed to plead guilty to his role in a conspiracy to surreptitiously compensate an analyst for promoting the company's stock. The analyst advocated the stock through an investment newsletter which assisted Hightimes in raising at least $6 million. According to the U.S. Attorney's Office, Central District of California, Levin is set to enter his guilty plea on a felony charge of conspiracy to tout securities without proper disclosure.
Charged last month, Levin joins three other defendants implicated in this elaborate scheme to manipulate financial endorsements, with Hightimes Holding Corp. raising approximately $20 million, partly buoyed by these covert promotions. Scheduled to be formally arraigned on January 14, Levin is the latest to face the consequences levied by the justice system surrounding these illicit activities.
As reported by the U.S. Attorney's Office, Central District of California, the trio of defendants include Jonathan William Mikula, the analyst at the heart of "Palm Beach Venture," an investment newsletter with a wide-reaching subscription base, who, along with an associate and a deal broker, conceded to their part in the scheme and await sentencing in July. In what was meant to be objective financial advice, Levin's actions have come under scrutiny after it was revealed that over $150,000 in payments were funneled through fake agreements and a complicated network of international banking transactions, all aimed at hiding the true nature of the dealings.
This case, uncovered by an FBI investigation, serves as a stark warning to investors and highlights the government's commitment to ensuring financial transparency. Meanwhile, Hightimes' 2023 settlement with the SEC—resulting in a cease-and-desist order and a hefty financial penalty—reminds companies of the serious consequences of bypassing regulatory requirements. Investors who believe they were impacted by these actions are encouraged to seek information and restitution through the Justice Department's designated channels. Assistant U.S. Attorney Adam P. Schleifer, from the Corporate and Securities Fraud Strike Force, continues to lead the prosecution.
For further details and updates regarding this case, interested parties may refer to the official announcement through the Justice Department at www.justice.gov.
