After settling securities violations with Canadian regulators, Cronos Group was hit again on Monday when the U.S. Securities and Exchange Commission charged the Toronto-based cannabis producer and its former chief commercial officer with accounting fraud.
Cronos and the former executive, William Hilson, offered to settle the matter – without admitting or denying guilt – by agreeing to cease and desist from future violations of the charged provisions, according to an SEC news release.
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The agency said the company and Hilson had failed to properly account for millions of dollars of revenue and committed “other accounting misconduct in multiple reporting periods.”
In agreeing to settle with Cronos, the SEC said the company wouldn’t need to pay a financial penalty “given its timely self-reporting, significant cooperation, and remediation.”
Going forward, Cronos has agreed to retain an independent compliance consultant to review its financial reporting and accounting controls.
Hilson agreed to
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