A cease and desist order has been entered against a Colorado medical marijuana company that allegedly sought to raise capital from investors on Craigslist. A cease and desist order has been entered against a Colorado medical marijuana company that allegedly sought to raise capital from investors on Craigslist.

Colorado Securities Commissioner Fred Joseph said the target of his order is Colorado Wellness Providers, LLC, and its owner and manager, Charles E. Perry, both of Fort Collins.

The Colorado Division of Securities alleged that Perry sought to raise capital from investors for the medical marijuana industry and, in particular, Perry's company, Colorado Wellness Providers.

The state alleged that Perry placed several advertisements on Craigslist seeking $50,000 to finish his project.

The division of securities alleged that the ad promised "excellent returns on a short term investment." The ad also allegedly claimed the investment was to be collateralized by a marijuana crop insured by Lloyds of London.

Perry also allegedly published an Internet article entitled "The Great Startup Game: Colorado's Marijuana Economy: An Explosion of Ganjapreneurship." Perry then solicited potential investors for his company in a comment following the article, promising a great return on the investment.

The division alleged that Perry failed to register his security offering. It also said that by taking the investment opportunity to the public through the ads on Craigslist and the Internet, Perry was unable to take advantage of any private offering exemption.