- Huntington Woods Attorney Sentenced to three year prison term after guilty plead for fraud
- Robert Gross convinced his clients that their money was invested into a Medical Marijuana business
- Investment schemes like this popping up all over the country as a result of the “Green Rush”
Commonly referred to as “The Green Rush”, today’s headlines are promising millions, even billions in returns to those who jump in now to invest in the marijuana market. With returns on traditional investments such as the stock market and buy and hold real estate averaging in the 6-10% range, it can be hard to pass up private offerings showing ‘guaranteed returns’ of 100% – 300% or higher, but it is important that you understand exactly what you are investing in and who you are working with. While some people have made a lot of money in the industry, there are many many more who have ended up in a losing position.
This past Monday, Huntington Woods lawyer Robert Gross was sentenced to three years in prison after pleading guilty to fraud in December. Along with the prison sentence, Gross is required to pay $3.6 million in restitution to his victims.
Gross convinced his own clients and others close to him to “invest” in a medical marijuana business, and used his established status as a successful lawyer to persuade them to invest.
Throughout the scam, Gross accumulated over $2 million in “investments” that he instead used to pay off gambling debt, and buy more credit at a Las Vegas Casino. Safe to say somebody had a bit of a gambling problem.
Furthermore, Gross produced falsely notarized documents that he used to convince investors that their money was being put to good use.
Unfortunately, there are Bob’s all over the country, and his story is not that unusual. There are hundreds and hundreds of stories of cannabis investment scams popping up in the past few years.
While smart investments can be very lucrative, keep in mind that if something sounds too good to be true, it probably is. With what seems to be the beginning of a mad sprint to market before the upcoming vote this November, it is easy to feel that you need to rush to get your money invested. Do your due diligence on anybody that you choose to invest money with, meet with other investors that have worked with those individuals, and require proof that the investment that your money is going into is actually legitimate.
It is safe to assume that there are others just like Bob, who are taking advantage of the budding Medical Marijuana market trying to make a quick buck, or quick million in his case. Protect your interests above all else, and always exercise caution before investing.