The suit was filed Aug. 1 in U.S. District Court in the Northern District of California
The U.S. Securities and Exchange Commission has filed a new legal action against a small investment firm based in Humboldt County, California, that has ties to the local cannabis industry and is accused of breaching fiduciary duties to its shareholders.
The suit, which was filed Aug. 1 in U.S. District Court in the Northern District of California against Sisu Capital, a small family investment firm based in Arcata, California, alleges that Timothy Overturf incorporated and led Sisu Capital after turning 18 in 2013, while his father, Hansueli, was serving a suspension as an investment adviser.
Although Timothy Overturf was the functional face and name of the firm, his father was the real leader, the suit alleges, despite the suspensions, first by the state of California in 2011 and then by a federal nonprofit government watchdog that same year, the Financial Industry Regulatory Authority. FINRA also fined Hans Overturf $10,000 for “engaging in undisclosed business activities.”
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