High Times Settles SEC Allegations With Fine Exceeding Half A Million Dollars

High Times Holding Corp. has reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding allegations of an illicit stock promotion "scheme."

The company has agreed to pay a fine of $558,071 within 30 days of September 27, as detailed in SEC records.

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According to the Green Market Report, these allegations stem from a civil securities fraud case involving High Times CEO Adam Levin.

The SEC claimed that Hightimes engaged in deceptive practices by providing undisclosed compensation to William Mikula and Palm Beach Ventures over a two-year period from early 2020 to 2021.

This deception was orchestrated through what the SEC describes as a "sham consulting agreement" between Levin and Mikula. The scheme began in April 2020 when Levin entered into a consulting agreement with a business acting as a front for Mikula, with promises of up to $3 million in cash and stock derived from a Reg-A offering.

Furthermore, the SEC accused High Times of continuing to sell $13 million in Reg-A securities after the offering had officially closed, extending until December 2022. The SEC classifies this action as fraudulent.

It's worth noting that William Mikula faces separate charges by the SEC in connection with other illegal stock promotion schemes.

Failure to pay the fine by the deadline will result in accruing interest.

For more detailed information, please refer to the official SEC records and the Green Market Report.

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