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SEC Sues Cannabis Investment Fund

The Securities and Exchange Commission is warning investors about "scam artists" in the cannabis industry.

The U.S. Securities and Exchange Commission charged a marijuana-focused investment fund with bilking investors out of more than $3 million and simultaneously warned the public about “scam artists” exploiting “hot” industries such as cannabis.

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In a lawsuit, the SEC accuses Texas-based Greenview Investment Partners and its founder, Michael Cone, of using misleading marketing materials and bogus promises of high returns to defraud investors out of $3.3 million.

According to an SEC news release, Cone allegedly:

  • Employed a “boiler room sales staff” that made cold calls to investors and promised them up to 24 percent annual returns from investments in Greenview.
  • Used an alias to hide prior criminal convictions.
  • Lied about having a former agent from the U.S. Drug Enforcement Administration on staff.
  • Falsely claimed to have a long record of profitably investing millions in cannabis-related businesses.

The U.S. Securities and Exchange Commission charged a marijuana-focused investment fund with bilking investors out of more than $3 million and simultaneously warned the public about “scam artists” exploiting “hot” industries such as cannabis.

According to an SEC news release, Cone allegedly:

  • Employed a “boiler room sales staff” that made cold calls to investors and promised them up to 24% annual returns from investments in Greenview.
  • Used an alias to hide prior criminal convictions.
  • Lied about having a former agent from the U.S. Drug Enforcement Administration on staff.
  • Falsely claimed to have a long record of profitably investing millions in cannabis-related businesses.

In reality, the SEC said, Greenview had no track record and its sole investment of $400,000 was in a cannabis company that had yet to harvest a crop.

This article was originally posted in Marijuana Business Daily.