‘Screwed and burned’: Holyoke marijuana company Positronic Farms leaves trail of unhappy investors
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‘Screwed and burned’: Holyoke marijuana company Positronic Farms leaves trail of unhappy investors

The Republican file Tennessee resident Darren Singleton is interested in investing in startups and saw an opportunity in Massachusetts’ nascent legal marijuana industry. He got an email alert about a Holyoke company that had a property lease in a city that was friendly to marijuana businesses. He and his wife flew to Massachusetts, met Positronic Farms founder David Caputo and toured the space in a former paper mill. “It looked like it was going to be a solid play,” Singleton said. Singleton withdrew money from his 401(k) and sent Caputo a cashier’s check for $25,000. He convinced two friends in Tennessee to invest $25,000 each. Last week, the “solid” deal imploded when Secretary of the Commonwealth William Galvin charged Caputo and Positronic Farms with violating state securities laws. According to Galvin’s Securities Division, Caputo sold $1.3 million in securities that were not registered with the Secretary of State, without verifying that the investors were accredited. Caputo solicited investors through newspaper ads, press releases, online videos and email messages. He failed to keep money in escrow, did not tell investors their money would be transferred to another business and spent money before raising a required minimum amount, according to the […]

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