Hemp Startup Founders Accused of Stock Fraud

The two co-founders of CanaFarma Hemp Products have been charged with fraudulently raising $15 million from investors by making false statements about the “farm to table” hemp startup and its management.

The U.S. Securities and Exchange Commission said Vitaly Fargesen and Igor Palatnik misrepresented CanaFarma as a “fully integrated” hemp company and inflated its revenue in materials for two private offerings of shares while pocketing $4 million of the investor funds for their personal use and purposes unrelated to CanaFarma.