Retired Texas firefighter Billy Banks (1) made an investment he hoped would strengthen his retirement savings – but instead, it resulted in an $80,000 loss. And his loss is playing a role in a broader legal case against a notorious short-seller.

Banks testified in a Los Angeles federal courtroom that, in 2018, he moved roughly $110,000 from mutual funds in his 401(k) into cannabis company CV Sciences (2), after becoming increasingly aggressive with his investing strategy. He said he believed the company was a worthy one, with CBD products that could help people with stress and pain management.

Must Read

Banks said the investment initially appeared to be paying off. While vacationing with his…