SEC fines cannabis hedge fund $150K for bogus AML policies, ties to Russian oligarch Abramovich
By 
Jeff Dale2025-01-17T15:49:00
Cannabis hedge fund Navy Capital Green Management agreed to pay $150,000 to settle charges levied by the Securirties and Exchange Commission (SEC) that the firm misled investors about its anti-money laundering/countering the financing of terrorism (AML/CFT) policies and allowed a sanctioned Russian oligarch to invest.
Navy Capital told investors it abided by strict AML/CFT due diligence policies despite actual due diligence practices being materially inconsistent with its representations, the SEC alleged in an order Tuesday.
Between at least October 2018 and January 2022, Navy Capital represented it “conducted specific AML due diligence on prospective investors and ongoing AML due diligence monitoring on existing investors,” including “confirming the identity of the investor and its principal beneficial owners,” the order said.
Related articles
-
News BriefOFAC hits GVA Capital with $216M penalty for servicing sanctioned Russian oligarch
A San Francisco venture capital firm will pay a $216 million fine to the U.S. Treasury for violating U.S. sanctions by managing investments for a Russian oligarch.
-
News BriefCannabis company dinged by SEC over ‘round-trip’ transfer to inflate year-end cash
A cannabis company agreed to pay $225,000 to settle allegations that funds were temporarily deposited into its year-end accounts for the sole purpose of inflating year-end cash, the Securities and Exchange Commission said.
-
News Brief‘Biblically responsible’ investment adviser ordered to pay $300K over misleading investors
A “biblically responsible” investment adviser agreed to pay $300,000 and hire an independent compliance consultant to settle charges with the Securities and Exchange Commission that it misled investors, along with other compliance failures.
More from Regulatory Enforcement
-
ArticleSenate Democrats question Vought on comments about closing CFPB in months
Senate Democrats warned OMB Director Russell Vought Tuesday that it would be illegal for the Trump administration to shut down the Consumer Financial Protection Bureau, citing a recent court decision barring actions that could severely harm the agency.
-
PremiumAssessing the impact of the DOJ’s monitorship policy six months in
It has been nearly six months now since the Department of Justice’s (DOJ) Criminal Division released its memorandum on the selection of compliance monitors. This article provides a critical analysis of the monitorships that received early terminations, those that remain in place, and the broader compliance lessons they impart.
-
News BriefBinance’s Changpeng Zhao receives presidential pardon from Trump
The founder of crypto exchange Binance, Changpeng Zhao, received a pardon from President Donald Trump. This pardon comes almost two years after Zhao signed a plea agreement and was sentenced to a four-month prison sentence.