A trading post on Duluth has been accused of a past attempt to trade fake health products, including vitamins, prescription drugs and cosmetics, and using fraudulent social media accounts to solicit money from gullible investors.
According to the Duluth Daily News, a Duluth-based company called Cherokee Trading Post, Inc. (CWT) was formed in July 2016.CWT has a history of trading in products such as health products and prescription drugs.
A federal indictment charging the company with securities fraud and securities fraud against four Duluth residents is currently pending in the U.S. District Court in Duluth.CWS has previously been accused in a civil lawsuit of fraudulently offering health products on Facebook, using false information to attract investors, and falsely claiming to have acquired “a patent on the treatment of a chronic disease” before actually acquiring the patent.
In a letter to the Securities and Exchange Commission, CherokeKings Trading Post stated that its goal is to help consumers with health issues get the best deal possible, including the ability to easily manage their health care costs and get the health products they need.
In October, CWS said that it would pay a $2 million fine for its actions.
Cherokee has a long history of using false social media and deceptive advertising to lure investors.
The company said that the FTC investigation has resulted in the arrest of 11 people and the loss of more than $30 million.