06:19:53 EDT Wed 24 Jul 2024
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SEC defendant Fargesen facing 6-1/2 years in prison

2024-07-05 17:16 ET - Street Wire

Also Street Wire (C-CNFA) Canafarma Hemp Products Corp

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by Mike Caswell

New York prosecutors have requested a jail term of 6-1/2 years for Vitaly Fargesen, one of the men behind a fraud at Canadian Securities Exchange listing Canafarma Hemp Products Corp. in 2019. Prosecutors say that Mr. Fargesen, 54, was part of a massive scheme that stole millions from investors. He and others pitched Canafarma as a company that would generate $68-million from processing hemp, but the company had no processing plant and its hemp farm was "just for show," the government says. (All figures are in U.S. dollars.)

The proposed jail term is set out in a letter to the judge that prosecutors filed in federal court in New York on Wednesday, July 3. There was no trial for Mr. Fargesen, as he pleaded guilty to charges of conspiracy to commit securities fraud and conspiracy to commit wire fraud. With the guilty plea, the only remaining matter of substance is the length of Mr. Fargesen's prison term.

In seeking 6-1/2 years, prosecutors describe Mr. Fargesen's actions as "serious and deliberate crimes." Among other things, he and an associate arranged for Canafarma to have a CEO who would be the public face of the company while Mr. Fargesen and others misappropriated money through bogus consulting agreements, routing large sums through offshore entities, the government says. Money from one set of payments, for a supposed "road show" in Europe, was actually spent buying a Land Rover for Mr. Fargesen, according to the government.

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