Defendant Name: Cronos Group Inc.

Defendant Type: Public Company

Document Reference: 2022-191

Document Details

Legal Case Name In the Matter of Cronos Group Inc.
Document Name SEC Charges Canadian Cannabis Company and Former Senior Executive with Accounting Fraud
Document Date 24-Oct-2022
Document Format Administrative Proceeding
File Number 3-21215
Allegation Type Issuer Reporting and Disclosure
Document Summary The SEC stated that: ''[It] charged Cronos Group Inc., a Nasdaq-listed cannabis company based in Toronto, for improperly accounting for millions of dollars of revenue and for other accounting misconduct in multiple reporting periods."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Compliance Related Independent Consultant
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC

Related Documents:

33-11123 24-Oct-2022 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On October 24, 2022, the SEC instituted settled cease-and-desist proceedings against Cronos Group Inc., stating: "This matter concerns accounting violations by Cronos, a Canadian cannabis company, which occurred in its first years operating as a U.S. publicly-traded issuer. In 2019, shortly after becoming subject to SEC reporting requirements, Cronos embarked on a significant business expansion, seeking to enter the nascent cannabis vaporizer market. Cronos, however, lacked the requisite familiarity with applicable accounting requirements as well as the appropriate internal accounting controls to prepare financial reports that complied with U.S. reporting requirements."

Related Actions:

In the Matter of William Hilson, CPA, CA
William Hilson, CPA, CA