(PUEBLO Colo.) — A Pueblo cannabis company will pay a $225,000 settlement for misrepresenting its products and lying about where some of its profits were going. According to the Colorado Attorney General's (AG) Office, the state investigation found that Bee's Knees, a Pueblo-based CBD company, made several misrepresentations on its website, wrongly characterized some products as “organic,” lacked a proper age verification system on its website, and lied about supporting conservation groups. The AG said the fine could grow to $495,000 if Bee's Knees fails to comply with the full terms of the settlement. “Colorado is committed to maintaining an effective system of overseeing the sale of legal cannabis products—one that keeps it out of the hands of kids, ensures safety standards, requires chain-of-custody tracking, and gives consumers important information about the products they buy,” said AG Phil Weiser. “In this case, the company misrepresented to their customers the source and nature of their products and sold intoxicating products without verifying the age of customers. This settlement will hold them accountable for those violations of the law and will ensure compliance in the future.” Bee’s Knees markets a variety of industrial hemp extracts on its website, both intoxicating and non-intoxicating. Industrial hemp, which has been legal under federal law since 2018, must contain less than 0.3% of the psychoactive chemical Delta-9 THC. Despite claiming that their products, which they sell mostly to wholesalers, are produced in Colorado and are organic, the company’s owner Joseph Leyba admitted to investigators that those claims were false. The AG's Office said further investigation revealed that the company used altered and expired hemp licenses and testing documents to misrepresent their products as complying with the law. Bee's Knees also failed to institute an age verification system on its website, despite selling intoxicating hemp products in gummy and chocolate form that contained as much THC as products found in regulated marijuana dispensaries. In addition to paying the fine, the AG's Office said Bee's Knees will be required to thoroughly vet any raw materials used to make its products and agree to fully comply with state law. The agreement also requires the company to obtain all required licenses and permits to legally conduct business related to cannabis products and, if requested, provide those documents to the state within 10 business days. Finally, Bee’s Knees is required to add age verification to its website as well as remove any misrepresentations about its products or associations with nonprofits.