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Marijuana mogul’s homes in Snowmass, Denver can’t be sold during fraud litigation, judge says

A house in Snowmass Village and a condo in Denver can’t be sold while a securities-fraud case proceeds against a man accused of defrauding investors in a pump-and-dump marijuana stock scheme.

Jeffrey O. Friedland

The Aspen Times

Jeffrey O. Friedland

U.S. District Court judge Marcia S. Krieger last week froze the assets of Jeffrey Friedland, including the two homes and accounts containing nearly $3.1 million.

The SEC sued Friedland in early March claiming that he was paid by OWC Pharmaceutical Research Corp., a marijuana-based pharmaceutical company in Israel, to tout its stock through blogs, media interviews and other media without disclosing that association. It is illegal under federal securities laws to publicize a company’s stock for compensation without disclosing that.

The SEC also contends Friedland used $7 million in ill-gotten gains to buy, among other things, the 2,796-square-foot Snowmass home for nearly $2 million in a cash transaction in August 2017.

Friedland allegedly dumped the 5.1 million shares he received to campaign for OWC’s stock, as well as 1.3 million shares he bought for $120,000 in 2013, for about $7 million in 2017, the complaint alleges.