Secretary of State Jay Ashcroft’s securities division announced that Kansas resident MacKenzie S.C. Hoambrecker and two Missouri-registered entities, H & Z Enterprises HI, LLC and H & Z Cultivation, LLC, have settled charges that they misrepresented and omitted material information in the course of raising capital from investors.
The consent order, signed on June 15, alleges that between May 1, 2019, and December 24, 2019, Hoambrecker raised a total of more than $5.4 million from at least 40 investors across 17 states, including six investors in Missouri, for the purpose of funding a startup hemp producer, Mt. Hempton Farms, LLC.
Respondents are alleged to have violated state securities laws by providing investors with false and misleading offering materials and failing to disclose conflicts of interest. None of the investors had received any distribution of profits or had any amount of principal returned during the course of the investment.
Without admitting or denying the division’s findings, respondents agreed to issue rescission offers to the six Missouri investors and pay $100,000 to the Missouri Secretary of State’s Investor Education and Protection Fund. As a result of the division’s order, $350,000 will be returned to Missouri investors.
“New market trends like this are tempting,” Ashcroft said. “With all investments, make sure you know and understand the risks, even when investing with family members or close colleagues.”
Ashcroft urges investors to call the toll-free investor protection hotline at 800-721-7996 or visit Missouri Protects Investors website for more information or to file a complaint.
