CannaVest Corp. a/k/a CV Sciences, Inc. and Michael J. Mona, Jr. – Goodman & Nekvasil P.A. May Recover Investor Losses
Securities and Exchange Commission Charges Cannavest Corp. a/k/a CV Sciences, Inc. and Michael J. Mona, Jr.
The Securities and Exchange Commission filed fraud charges against a Las Vegas-based hemp oil company and its CEO for inflating the company’s assets on its balance sheet.
The SEC complaint filed in federal court in Nevada alleges that CannaVEST Corp. (now known as CV Sciences, Inc.) and CEO Michael Mona Jr. materially overstated the company’s total assets in quarterly reports for the first and second quarters of 2013. According to the complaint, CannaVEST reported purchasing a company called PhytoSphere Systems LLC, including its existing rights under contracts with hemp production and processing facilities, for $35 million, even though Mona knew that the purported purchase price was substantially inflated. The complaint alleges that CannaVEST agreed to the purported purchase price only because CannaVEST could pay for the acquisition primarily with CannaVEST shares which Mona believed had little value at the time.
The SEC complaint further alleges that in the third quarter of 2013, CannaVEST obtained a third-party valuation of PhytoSphere for $8 million as of the date CannaVest acquired PhytoSphere. According to the SEC, CannaVEST and Mona wrote down the value of the acquisition to $8 million in the company’s third quarter Form 10-Q but failed to disclose that the original value was inflated and that the first and second quarter balance sheets were materially overstated. According to the complaint, in April 2014, at the request of its new auditors, CannaVEST restated the three quarterly filings for 2013 in order to report PhytoSphere’s $8 million value, not the $35 million it had previously reported.
Investors in Cannavest Corp. a/k/a CV Sciences, Inc. May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in Cannavest Corp. a/k/a CV Sciences, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in Cannavest Corp. a/k/a CV Sciences and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.