SEC Files Fraud Charges Against American Patriot Brands, Inc. and Executives for Misusing Investor Funds

The Securities and Exchange Commission (SEC) recently charged American Patriot Brands Inc. (APB), its CEO Robert Y. Lee, and five entities and individuals with fraud for their involvement in a scheme to raise more than $30 million from investors across the country and use that money to line their own pockets. According to the SEC’s complaint, APB, Lee, current executive Brian L. Pallas, and former executive J. Bernard Rice lied to investors about the company’s financial condition, operations, Oregon cannabis farm value, and investment safety and security. The executives also diverted millions of investor dollars into their personal accounts and used thousands more for personal expenses. The SEC is demanding permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and officer and director bars against Lee, Pallas, and Rice as well as disgorgement with prejudgment interest from three affiliated entities.