ShareDan Bilzerian’s cannabis lifestyle company Ignite is under investigation for accounting fraud. The Ontario Securities Commission (OSC) undertook an inquiry that piqued the interest of the US authorities who now have the “King of Instagram” squarely in their sights.
Subpoenaed
Twitter user Nate Anderson posted screenshots showing that Ignite has already been forced to produce documents three times this year.“NEW: The Securities and Exchange Commission just filed an order to compel Dan Bilzerian's Ignite International Brands to respond to its subpoena. Per the order, the SEC and criminal authorities are investigating Ignite over allegations of potential accounting fraud”
He continued to speculate that the recent transaction to return the company to private ownership is no coincidence and likely to be to hide the recent troubles from public view.
At its peak, Ignite was trading at a market capitalization of more than $750 million on the Canadian Securities Exchange but its value has dropped below $170 million before returning to private ownership.
SEC staff attorney Patricia Pei said there were “possible violations of the antifraud provisions of the federal securities laws” and that an investigation “indicates Ignite may have filed public financial statements that include false or misleading representations” two years ago.
No judgement has been made to date and investigations are continuing.
Pei clarified that the SEC “is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.”
