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by Mike Caswell

New York prosecutors have requested a reduced sentence for Frank Barone, one of those charged for the manipulation of Vancouver's Canafarma Hemp Products Corp. in 2020. Prosecutors say that Mr. Barone, who was part of a scheme to mislead investors about a hemp chewing gum product, provided "substantial assistance" to the government. Details of his help are not public, but the government subsequently obtained guilty pleas from two men who had misappropriated $4-million as part of the fraud. (All figures are in U.S. dollars.)

The request from prosecutors comes as part of a fraud that resulted in charges against Mr. Barone and three other men. Prosecutors claimed that the group misled investors, touting Canafarma as having $25-million in revenue as it raised money from investors in the U.S. and elsewhere. In reality, Canafarma did not process any hemp, nor did it produce any products, the government said.

Mr. Barone, a New Jersey resident who was a senior vice-president at Canafarma, pleaded guilty to charges that included wire fraud, securities fraud and related conspiracy counts. With his sentencing date approaching, prosecutors filed a letter on Friday, Nov. 8, setting out their position on an appropriate jail term. They say that Mr. Barone's plea came as part of a co-operation agreement with the government, in which he provided "substantial assistance in the investigation and prosecution of others."

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