The U.S. Securities and Exchange Commission (SEC) has charged the majority owner of a Mississippi medical marijuana company with allegedly misappropriating approximately $1.94 million in investor funds, including spending money on jewelry and travel.
The SEC announced the charges Thursday against Thomas J. Moore III of D’Iberville, Mississippi, in connection with Mississippi Green Oil, LLC, a Prentiss-based medical marijuana company he established around December 2020.
According to the SEC, Moore raised approximately $4.94 million from about 20 investors between at least December 2021 and August 2024 by selling equity interests in Mississippi Green Oil.
Moore allegedly told investors that their money would be used to develop the company’s medical marijuana business. Instead, the SEC alleges that approximately $1.94 million was spent on personal expenses unrelated to the company, including jewelry and travel.
The complaint also alleges that Moore told investors they would receive short-term profit distributions based on their ownership interests but failed to make any distributions.
According to regulators, Moore also failed to disclose the existence of lawsuits brought by other Mississippi Green Oil investors. Those lawsuits included allegations that the company had failed to return investors’ principal and pay promised distributions.
The SEC filed its complaint September 30 in the U.S. District Court for the Southern District of Mississippi.
Moore is accused of violating Section 17(a) of the Securities Act of 1933 as well as Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, federal provisions that prohibit fraud and material misrepresentations in connection with securities transactions.
The SEC is seeking a permanent injunction, a conduct-based injunction, disgorgement of allegedly improperly obtained funds with prejudgment interest and a civil monetary penalty.
The allegations are civil claims and have not been proven in court.
Mississippi legalized medical marijuana through legislation enacted in 2022, with licensed sales beginning the following year. The state regulates cultivators, processors, dispensaries and other businesses participating in the medical marijuana market.
