BOSTON — Secretary of State William Galvin has charged David Caputo and the company he founded, Holyoke-based Positronic Farms, with violating state securities laws.

According to an administrative complaint filed by the Securities Division of Galvin’s office, between January 2017 and August 2018, Caputo and Positronic Farms sold $1.3 million in unregistered securities to around 40 investors. Caputo never registered with Galvin’s Securities Division to sell securities. Caputo also did not verify whether the investors were accredited.

Under state law, any securities that are offered to investors must be registered with the Secretary of State’s office. Investors are required to be accredited.

Positronic Farms was formed as a marijuana cultivation business, although it has not received a license from the Cannabis Control Commission.

The company sought investors through newspaper ads, a press release, an online video and email messages. Caputo allegedly paid commissions to other people who solicited investors, who also were unregistered with the Securities Division.

“Caputo and Positronic Farms accepted funds from just about any investor willing to contribute monies and failed to verify whether investors had the financial means or knowledge to invest in the cannabis industry,” the complaint wrote.

The complaint alleges that although Caputo wrote in investor documents that he would not spend any investors’ money until he had raised $250,000, he actually spent investors’ money before raising that amount.

Positronic Farms told investors that their money would be deposited in an escrow account, but he actually commingled investor money with the company’s business operations, the complaint says. Positronic Farms also failed to tell investors that their money would be transferred to a separate business entity, also a marijuana cultivator.

Caputo, reached by phone, denied any wrongdoing.

Caputo said he did not commingle funds, and he waited until he raised more than $250,000 to spend any money.

“I used a lawyer to sell securities the way that I thought I was supposed to. I had a lawyer dealing with it, and I did what he said I should do,” Caputo said.

Caputo said all investors checked a box on a form affirming that they were accredited. “I don’t know what I’m supposed to do to investigate people’s net worth, as a regular citizen,” Caputo said.

“I was trying to follow the rules to the best I knew them,” Caputo said. “I’m a civilian. I don’t know securities law. It’s why I hired an attorney to guide me through it. I did what he told me to do.”

Caputo said he had planned to testify before the Securities Division on Tuesday, but rescheduled after he was not allowed to have an attorney present. He was not aware he had been charged until a reporter called him.

Caputo named David Noonan of Amherst as his attorney. Noonan said he represented Positronic and represented Caputo in other matters, but that he never represented Caputo with regards to securities law. “I have not represented Mr. Caputo individually in this matter,” he said. As an attorney for Positronic, Noonan declined to comment.

The Securities Division is seeking an order preventing Caputo and Positronic Farms from continuing to sell securities, requiring them to account for all the money involved in the transactions and return the money that was taken from investors in violation of state law.

Caputo resigned from Positronic Farms in September 2018, the same month the Holyoke City Council halted consideration of a permit for the marijuana cultivation company Holyoke Gardens.

Caputo has been a spokesman and licensing consultant for Holyoke Gardens, and the company had been renting space from Positronic Farms. The council said it was concerned about an unlicensed marijuana growing operation in a home owned by Caputo.

After Caputo resigned, Holyoke Gardens received the local permit. It received a provisional license from the Cannabis Control Commission in January.

On its application to the Cannabis Control Commission, Holyoke Gardens said Positronic Farms leased property and provided initial capital to Holyoke Gardens. The company wrote that Positronic Farms has no financial interest or authority over Holyoke Gardens, and the initial money has been repaid.