The founder and chairman of Hightimes Holding Corp., Adam Levin, has agreed to plead guilty to a conspiracy charge involving undisclosed payments. Levin, 45, from Marina Del Rey, is accused of paying over $150,000 to an analyst for promoting the company's stock through an investment newsletter. This scheme reportedly helped Hightimes raise at least $6 million.
Levin was charged with one count of conspiracy to tout securities for undisclosed compensation last month. He has agreed to plead guilty as part of a plea agreement filed on December 20. His initial court appearance is scheduled for January 14 in United States District Court.
Levin is the fourth individual charged in this case. The others include Jonathan William Mikula, an analyst at "Palm Beach Venture," Christian Fernandez, who acted as a money launderer, and Raj Beri, CEO of a Beverly Hills company involved in brokering deals for undisclosed payments. All three pleaded guilty last year and are awaiting sentencing in July.
Court documents reveal that executives like Levin paid for promotional pieces published by Palm Beach Venture about securities offerings. Federal law mandates full disclosure from anyone receiving payment for such promotions.
Levin's plea agreement details that between 2020 and 2021, "Hightimes raised approximately $20 million from more than 10 investor-victims," with at least $6 million linked to Palm Beach Venture's promotion. Levin admitted to paying $150,000 via wire transfers and additional amounts for entertainment expenses.
To hide the scheme, Levin used a sham marketing agreement and routed payments through a Canadian bank to a shell company in Canada. Articles promoting Hightimes' securities falsely claimed no compensation was received by Palm Beach Research Group or its affiliates.
Levin also confessed to lying to the United States Securities and Exchange Commission (SEC) about his involvement in the pay-for-play arrangement.
The FBI is investigating this matter. The SEC had previously filed a civil action against Hightimes, resolved in 2023 with a cease-and-desist order and a penalty payment of $558,071 by Hightimes.
Investors who believe they are victims can visit https://www.justice.gov/usao-cdca/united-states-v-jonathan-william-mikula-christian-fernandez-and-amit-raj-beri for more information.
Assistant United States Attorney Adam P. Schleifer is prosecuting the case.