Chairman of High Times Parent Company to Plead Guilty in Fraud Scheme

LOS ANGELES-Adam Levin, chairman of Hightimes Holding Corp., has agreed to plead guilty to conspiracy charges involving a scheme to pay an investment analyst to promote the company’s stock without disclosing the compensation. According to the U.S. Attorney’s Office for the Central District of California, Levin paid over $150,000 to the analyst, who subsequently endorsed Hightimes’ stock in a newsletter without informing readers of the financial arrangement.

The scheme sought to generate investor interest in Hightimes’ Regulation A stock offering, which allowed individual investors to purchase shares. These undisclosed payments reportedly helped the company raise approximately $6 million from the public.

Levin’s plea agreement was filed on December 20, 2024, and he is scheduled to formally plead guilty in Los Angeles federal court on January 17, 2025. If convicted, Levin faces a maximum sentence of five years in federal prison.

Mr. Adam Levin, Former Chairman High Times Holding Corp.

Financial and Operational Challenges for Hightimes

Hightimes Holding Corp., best known for owning High Times magazine, has faced significant hurdles over the years. Levin’s leadership was marked by ambitious plans, including acquisitions of cannabis-related media properties like DOPE Magazine and efforts to transform the company into a major lifestyle and events brand within the cannabis industry.

However, these ventures struggled to achieve profitability. The company’s 2018 Regulation A offering aimed to raise $50 million but fell short, generating just $15 million by mid-2019. Further compounding its troubles, the company missed regulatory deadlines, leading to a temporary halt of its IPO by the SEC in 2020.

By 2021, financial and operational issues forced DOPE Magazine to cease operations, adding to the company’s struggles. In 2023, Hightimes Holding Corp. entered receivership after failing to meet its financial obligations.

Federal Investigation and Consequences

The investigation into Levin’s actions was conducted by the FBI and the SEC. Prosecutors emphasized the importance of transparency in securities markets and the legal requirement for financial disclosures in stock promotions.

For further details, read the official press release from the U.S. Attorney’s Office for the Central District of California: Chairman of High Times Parent Agrees to Plead Guilty to Scheme to Give Undisclosed Payments.

This case serves as a stark reminder of the legal and ethical standards that must be upheld in financial markets and the serious consequences for those who violate them. (Main image: Mr. Levin)