On April 3, 2014, Irvin Rosenfeld and Bryan McLaren were elected to be Directors of Zoned Properties, Inc., a lessor of land, facilities and equipment to the medical marijuana industry.  On April 25, 2014, ZPI filed a Change of Officer/Director form with the Arizona Corporation Commission to add Irvin Rosenfeld and Bryan McLaren as directors.  On April 28, 2014, ZPI filed a Change of Officer/Director form that notified the ACC that Rosenfeld and McLaren ceased to be directors of the corporation.  The sole director listed on the ACC’s website as of April 28, 2014, was Leonard C. Salgado.  Rosenfeld and McLaren were directors for 25 days.

Eastern Arizona Courier:  “Medical marijuana cardholders who stopped by the Holistic Wellness Center in Clifton to purchase an allotment of cannabis Thursday came across a padlocked door and a handwritten sign indicating the business was temporarily closed. The closure wasn’t due to state or federal law enforcement officials, however, but was instituted as a casualty of a battle for ownership and the right to operate the dispensary.  The fight concerns an ownership group involving David and Kathy Sanchez against their former partner, Duke Rodriguez, and his group, Ultra Health.”

Duke Rodriguez and Ultra Health were never partners with David and Kathy Sanchez or Holistic Patient Wellness Group, LLC, the sole holder of a license to operate a medical marijuana dispensary in CHAA 83, the CHAA in which Clifton, Arizona, is located.  KEYTLaw, LLC, and Richard Keyt represent Holistic Patient Wellness Group, LLC.

Green Valley News & Sun:  “Sahuarita’s medical marijuana dispensary is under new management . . . . The name will be changed to UltraHealth Green Valley . . . said Duke Rodriguez . . . . UltraHealth, which specializes in several aspects of the medical marijuana industry, including growing the crop, has begun taking over management and will continue to take over during the next month, Rodriguez said. The three full-time employees will become employees of UltraHealth, which has 25 employees statewide . . . . His organization, which is more active in the Phoenix area, is courting a group of five dispensaries . . . . ‘We have experience at growing and cultivation and a wider access to inventory,” Rodriguez said’.”

Sahuarita’s dispensary is owned by Broken Arrow Herbal Center, Inc.

Query:  Where and how does Ultra Health have experience growing and cultivating marijuana?  See “AZ Dept. of Health Services Confirms Ultra Health, LLC Lacks a License for a Medical Marijuana Dispensary.”

FINRA is the Financial Industry Regulatory Authority.  FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry.  FINRA is not part of the government. It is an independent, not-for-profit organization authorized by Congress to protect America’s investors by making sure the securities industry operates fairly and honestly.

FINRA issued an investor alert warning people about possible marijuana stock scams.  Here are some choice quotes from FINRA’s Marijuana Stock Scam alert.

We are reissuing this alert to warn investors not only about the potential for fraud in this arena, but also to reiterate the risks of investing in thinly traded companies about which little is known. Regardless of industry sector, any so-called “hot” stock can burn your portfolio. Rather than getting swept away, take time before you invest to learn more about the company, its products or services and the people running it. . . .

Like many investment scams, pitches to invest in potentially fraudulent marijuana-related companies may arrive in a variety of ways—faxes, email or text message invitations to webinars, infomercials, tweets or blog posts. Regardless of how you first hear about them, the offers almost always contain hallmarks of “pump and dump” ploys. Specifically, fraudsters lure investors with aggressive, optimistic—and potentially false and misleading—statements or information designed to create unwarranted demand for shares of a small, thinly traded company with little or no history of financial success (the pump). Once share prices and volumes reach a peak, the cons behind the scam sell off their shares at a profit, leaving investors with worthless stock (the dump). . . .

To avoid potential marijuana-related stock scams: . . . .

Know where the stock trades. Most unsolicited spam recommendations involve stocks that do not trade on The NASDAQ Stock Market (NASDAQ OMX), the New York Stock Exchange (NYSE Euronext) or other registered national securities exchanges. Instead, these stocks may be quoted on an over-the-counter (OTC) quotation platform like the FINRA-operated Over-the-Counter Bulletin Board (OTCBB) and the platform operated by OTC Markets Group, Inc. . . .

Be wary of frequent changes to a company’s name or business focus. Name changes and the potential for manipulation often go hand in hand. One low-priced stock now claiming to be in the medical marijuana business has had four name changes in the past 10 years. Another company switched from the coffee business to focus “on the rapidly emerging medical marijuana industries.” . . .

If a Problem Occurs

If you believe you’ve been defrauded or treated unfairly by a securities professional or firm, file a complaint. If you suspect that someone you know has been taken in by a scam, send a tip.