SEC, OCS and DOJ Investigate Dan Bilzerian’s Ignite Cannabis Company
2.1 min readPublished On: September 6th, 2022By News Team
TORONTO-Dan Bilzerian is under investigation by investigators from the US and Canadian governments. With more than 30 million followers on Instagram alone, Dan is regarded as the ”King of Instagram,” but with the latest news, he may never become the ”King of Cannabis.”
Dan launched Ignite Ltd in a blaze of “bling” and bikini-clad-models (with Ignite branded on their bikinis) in 2017 in Canada, and later in the United States.
Fast forward to now, and several investigations have been launched, and the information that’s leaking does not show the “King of Instagram” in a very favorable light.
The United States Securities and Exchange Commission (SEC), the Department of Justice, and the Ontario Securities Commission (OSC) have all opened their own inquiries into possible accounting fraud.
The SEC demanded access to financial data pertaining to the suspected fraud in a subpoena that was issued in California in May.
(Image: Getty Library: Dan Bilzerian with Ignite models)
According to Business Wire, the company’s plans to change from being a publicly traded company to a private entity were announced in July. On the same day the SEC requested an injunction from the company court to prevent the release of documents, the plan was approved at a shareholders’ meeting in late August.
According to the press release, the company’s shareholders approved, among other things, the election of the five appointed directors Dan Bilzerian, Lester Lee, Greg Gilpin-Payne, Ralph Gilpin-Payne, and Tom Bunker, as well as setting the number of company directors at five (5).
But can Bilzerian slip out of the investigations or does this mean no more models and cigars for Dan?
It’s hard to predict, but considering the gravity of the accusations this will be harder to slip out of than an ignite branded thong.
Last week, the SEC issued a statement saying that “it is continuing its fact-finding inquiry and, to yet, has not found that any individual or entity has violated federal securities laws.”
Reporting in the Globe and Mail claims that Bilzerian’s business, which went by the name “BILZ-CN,” reached its market capitalization peak in 2019 at over $750 million, but by the time it stopped trading in North America, it had fallen to little under $170 million.
The information uncovered “indicates that [Ignite] may have filed public financial statements that include false statements or misleading” in 2020, according to SEC staff attorney Patricia Pei, who denounced “possible violations of the anti-fraud provisions of federal securities laws” in a court filing.
Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.
Douglas, Isle Of Man - Cannabis extraction and extract have gone through exponential growth in the past decade. After being criminalized for a long time, the world saw and moved towards legalizing cannabis in many ...
GRANTS, N.M. - Bright Green Corporation (NASDAQ: BGXX) (“Bright Green” or “the Company”), one of the very few companies selected by the U.S. government to grow, manufacture, and sell, legally under federal and state laws, ...
DUBLIN - Global Cannabis Testing Market to Reach $2.8 Billion by 2030 In the changed post COVID-19 business landscape, the global market for Cannabis Testing estimated at US$1.1 Billion in the year 2022, is projected to reach ...
DISCLAIMER NOTE: This email should be considered strictly private and confidential. Sender of this email is not a United States Securities Dealer, nor Broker, nor U.S. Investment Adviser. Sender is a Registered Corporation and Consultant, and makes no warranties, nor representations as to the buyer, seller, or transaction. Furthermore, this email includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Read more