Citron Research published a scathing analysis of Medbox, a publicly traded company that is very active in the Arizona medical marijuana dispensary industry. The article starts with the following information about Citron Research:
Citron Research is in our 13th year of publishing investigative research into suspect publicly traded companies. During that span, Citron has exposed more corporate fraud than any other source on Wall Street. Our published work has focused on over 150 companies, some with very notable individual investors and firms publicly “on the other side”. Our writings have warned the public to steer clear of investments rigged to vaporize their cash. All of this writing is available for anyone to evaluate. Much of our work, especially in our early years of publishing, focused on the sparsely regulated Over – the – Counter and Pink Sheets markets When it comes to exposing fraud on the Pink Sheets and the OTCBB, Citron has NEVER been wrong. Yes, we know NEVER is a bold statement but it is what it is.
Here are a few choice allegations made in the report:
“this report will focus on the systemic fraud throughout this company and the stock promotion behind the fraud that has brought this worthless company to a $1 bil + market cap. . . .”
“Medbox’s founder and COO Vincent Mehdizadeh was formerly busted for dispensing legal advice without a law license . . . .”
“It seems like Medbox management cannot help themselves–they cannot control their serial lying in promoting their stock.”
The article closes with my favorite part of the report:
“Dear Vincent and Bruce, Let’s skip the bullshit and cut right to the chase. Your situation is hopeless. Your track record of corporate misdeeds at Medbox and misleading shareholders is beyond salvage. I know when you read this report, you’ll feel a lot of righteous indignation and your first reaction will be to want to sue me. I hope you do! If you would be so kind as to file a suit, my attorneys will use the power of discovery afforded by civil trial procedures right here in California to unravel this entire scam and lay it on the doorstep of Federal regulators. There is truly nothing you can say to defend yourself from the contents of this report except to contact your personal lawyers immediately and ask them what steps you should take so you can avoid going to jail. Nothing more to be said. In the meantime, I sincerely hope you and your team have not sold a single share of restricted stock away from the market–because we will find it in discovery. Please sue me. Editor, Citron Research.”
The report links to another nasty Medbox article called “Tinkerer, Lawyer, Hustler, Lies: One Man’s Path to a Dope Fortune.”
