Startup boss under investigation

Steel siding
The San Francisco startup (OTCBB: CBIS), whichn wants to tap the activwe ingredient in marijuana to develop a lozenge totreatf hypertension, said it has started an internal investigationb of Kubby's "apparently fraudulenty activities," according to the filing with the Securitieds and Exchange Commission. Fired as presidentf and CEO last week as the companty said he failed in hisfiduciary duties, Kubby resignecd from the Cannabis Science board on At least two of Kubby's hires over the past two monthsz — COO Ray Carr and vice presidenr of research and development Mary Ruwart as well as another employee, Lee also have resigned. Carr and Ruwart are husband and wife.
The company appointed Dr. Robert Melamede, the retired chairman of the biology departmenf at the University of Colorado atColoradk Springs, as CEO. Melamede had been Cannabis Science's chief scientific The company said in its SEC filinf that Kubby signed financiao and share agreementswith Ruwart, Carr and a private party that were not disclose d to or approved by the board, "usingh unauthorized company shares as collateral or consideration for his personal Another deal with an "indepedent financialo group" could have diluted or damaged shareholder the company said in its SEC filing.
The compan y also alleged that Kubby accepted fund into a company account that he had blocked and removed access by other officerx anddirectors — and distributedd company funds for his personal gain, accordinh to the SEC That happened "while leaving essential obligationd of the company unmet," according to the SEC Cannabis Science also said Kubby made "libeloua accusation" against company directors and a key consultang "while misrepresenting his own actions to the publix and the media in a mannert injurious to the company's interests.
" a former candidate for the Libertarian Partty presidential nomination and the Libertarian candidatd for California governor in 1998, wrote to the website Independenrt Political Report that he was ousted after Carr uncovere d unusual contracting contracts by another person connected with the Cannabis Science went publidc in April, after it bought a publivc shell. Its legal address is in San Francisco, but Kubbgy said last month that the company largely has been operated from his home in Kubby has said that he started the company after he developedx the lozenge to treat his typically fatal form ofadrenalo cancer.