Los Angeles, CA: Is Diamond CBD / PotNetwork Holdings running an insider enrichment scheme? Let’s take a closer look!
Charles along with Dror Svorai and Eli Taieb was arrested for securities fraud and wire fraud by the FBI in July of 2019.
First, let’s trace our steps so that you understand the history of the company.
Diamond CBD is owned by PotNetwork Holdings, whose owner is Kevin Hagen. Kevin Hagen also owns First Capital Venture Co. First Capital Venture Co. owns White Label Liquid in Florida.
White Label Liquid is a large CBD white label brand. Diamond CBD white labels Tommy Chong’s and NFL veteran Lawrence Taylor’s CBD lines.
5F-ADB tested in Diamond CBD products
Two years ago, we first reported that Diamond CBD was selling CBD products laced with the synthetic compound known as 5F-ADB. The Reddit community crowdfunded to test Diamond’s Chill Gummies.
On March 26, 2018, we reported that 5F-ADB was also found in Black Diamond CBD oil in Mooresville, N.C.
In November 2018, Diamond CBD was back in the news when their products were tested for 5F-ADB, DXM, and K2 aka Spice.
On August 21, 2019, we reported that Diamond CBD was tested POSITIVE for synthetics after a grad student had Hallucinogenic experience.
Our findings on PotNetwork Holdings
With a company with such a checkered past, we started thinking, is there more that PotNetwork Holdings is hiding?
The simple answer is yes!
What is caveat emptor? A warning that notifies a buyer that the goods he or she is buying are “as is,” or subject to all defects.
White Label Liquid has a history of being tagged with the “Caveat Emptor” designation.
There is a public interest concern associated with the company (White Label Group), which may include a spam campaign, questionable stock promotion, known investigation of fraudulent activity committed by the company or insiders, regulatory suspensions, or disruptive corporate actions – InvestorsHub
On February 2019, Vapor Group (VPOR) announced the appointment of David Zinger as the new President and Chief Executive Officer. Vapor Group’s primary consultant Dror Svorai, resigned.
Vapor Group is a publicly-traded OTC company who specializes in wholesale CBD.
Canna Corp (CNCC) is a holding company who is involved in the crypto mining business. It also invests in the development of proprietary crypto mining hardware and software. This blockchain development is currently being tested in the Cannabis industry.
Our Final Thoughts
While none of the companies listed are accused of any wrongdoings in the complaints, this paints a larger picture on what is going behind the scenes.
When it comes to security frauds there are never just one or two players. For insider trading to work, it takes various individuals sharing insider knowledge.
When the SEC comes knocking there will always be a fall guy.
With Diamond CBD parent company having a history of selling synthetic compounds and hiring individuals that are involved in crime, one has to ask the question, is Diamond CBD / PotNetwork Holdings running an insider enrichment scheme?
What are your thoughts? Why is the CBD community not up in arms? Share them in the comments below.