Jeremy Higgs and Mideon LLC has been order to pay $450,000 in restitution and $20,000 in administrative penalties for committing securities registration violations by the Arizona Corporation Commissio.
Higgs, who controlled Mideon were found to have violated the anti-fraud provisions of the Securities Act.
Neither Mideon nor Higgs was registered by the Commission as a securities salesman or dealer.
Mideon raised over $500,000 from at least five investors who were retirees in their 70s and 80s. Mideon represented to investors that they would receive a 30% return within two years. Investors understood that their profits would come from the payment-processing services provided by Mideon to the marijuana dispensaries. However, Higgs failed to disclose that Mideon had not been generating any revenue in their business for at least eight months prior to the investments. Despite their representations to investors, Mideon failed to deliver on their promises, and the majority of the investors’ principal remains unpaid. For some of the investor-retirees, these financial losses meant they had to come out of retirement and re-enter the workforce in either a full-time or part-time capacity.
In addition to restitution and administrative penalties, the ACC issued a permanent Order to Cease and Desist for Higgs and Mideon.
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