SEC charged Texas-based Greenview Investment Partners and founder Michael Cone with “defrauding investors with false promises of massive returns in cannabis-related businesses.”
Cone ended up with more than $3 million from investors.
“Greenview allegedly exploited investor interest in the marijuana industry and lied about high returns and the backgrounds of its key executives,” said Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office. “Investors must remain vigilant and not let the fear of missing out dupe them into making bad investment decisions.”
The SEC also issued a separate alert to warn of media coverage around legalization that leads to hype and to “urge investors to consider the risks of investment fraud and market manipulation before investing in a marijuana-related company.”
Here are the relevant docscomp-pr2018-177