Investors sense profit with cannabis project - now the public prosecutor is investigating for fraud

Created: 08/17/2022, 21:18

By: Kai Hartwig

The desired legalization of cannabis is included in the federal government's coalition agreement.

(Iconic image) © Fabian Sommer/dpa

In hopes of making quick money, investors invested in a cannabis project.

And were probably cheated.

Now the public prosecutor is investigating.

Berlin – The legalization of cannabis is anchored in the coalition agreement of the traffic light parties SPD, Greens and FDP.

"We will enable the controlled sale of cannabis to adults in order to improve health protection for consumers and preventive measures," the federal government's drug commissioner, Burkhard Blienert (SPD), announced last Friday (August 12).

Investors scammed with virtual cannabis greenhouses?

Investigators search houses in Berlin

Apparently, more and more investors are also sensing their chance to make a lot of profit in the event of cannabis legalization.

But in Berlin, for some of them, the dream of making quick money with the intoxicant, which is also used for medical purposes, was shattered.

Investigators in the capital searched several apartments and business premises there for investment fraud with virtual cannabis greenhouses.

According to a statement by the public prosecutor's office in Berlin on Wednesday (August 17), twelve suspected persons responsible for the internet platform

investigated.

Numerous documents that officers from the Berlin State Criminal Police Office found in the apartments and business premises of five companies at two locations were confiscated.

Alleged investment scam involving virtual cannabis greenhouses - investors lured with high returns

Said platform is said to have had so-called e-growing on offer since 2020.

Potential investors had the opportunity to participate in the cultivation, harvesting and sale of medicinal cannabis plants via virtual greenhouses.

In return, a substantial return beckoned.

The investigators assume that the offer was deliberately aimed at small investors.

Participation was already possible with an investment amount of 50 euros.

According to the public prosecutor's office, a total of 230 investors have so far filed a complaint.

The investigations should now clarify to what extent the acquired plants really existed or whether the investors were cheated by a Ponzi scheme.

With such a system, old claims are settled from newly collected money.

In the meantime, however, there is no investment.

In addition, any amount of damage should be identified.

The authorities have now ordered four companies to confiscate their assets, each amounting to almost two and a half million euros.

In addition to the State Criminal Police Office, the Federal Financial Supervisory Authority (BaFin) was also involved in the searches.

The latter had already prohibited public offers of investments in the form of investments in cannabis plants at the beginning of June.

In addition, on July 20, BaFin published consumer warnings and, for its part, investigated Juicy Holdings BV for violating the Investment Act.