In the rush to get into the newest investment markets ahead of the curve, some companies will say anything, even if it’s wrong. Our law firm is actively involved in several Cannabis investment lawsuits.
“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.
Cone utilized boiler room employees to cold-call the potential investors. These employees claimed that they would receive as much as a 24% annual sales return from these investments. They also implied that Greenview was previously successful in other cannabis investments. In reality, Greenview had no cannabis investment history, and only had $400,000 invested in a company that had not yet harvested anything.
Additionally, Cone didn’t use his real name to conceal his previous criminal convictions, and falsely claimed to have a former DEA agent on staff. None of the claims were true, and the SEC’s complaint alleges that Cone used intake money to pay previous investors (similar to a Ponzi scheme.) He also spent investor money on things like designer clothes and luxury automobiles.
The US Attorney’s Office in the Central District of California also charged Cone, seizing $1.4 million in cash and assets in a separate criminal proceeding.
Company partner Brian Gwinn previously told the Dallas Business Journal that Greenview planned to offer loans to growers, tech and pharmaceutical companies with an interest in cannabis. According to the Journal article, many of the investors who gave Gwinn as much as $25,000 to $50,000 to invest in Greenview can no longer reach him or anyone at the company. (One source claims that Gwinn is on the West Coast and currently unreachable.) Greenview allegedly leased office space in Beverly Hills and on Wall Street, and was in the process of opening an office in Frisco, TX, including a buildout, when everything came to a halt.
Interested In Pot Stocks? Already Invested In Cannabis? Need a Cannabis Litigator?
The increasing number of states legalizing cannabis/marijuana for various purposes has many investors how they can get in on the next wave of “new” stocks. Unfortunately, not all of them are legitimate. The federal government still considers marijuana to be illegal, despite many forms of legalization in many states.
If you’ve invested in a “pot stock” and aren’t sure if it’s the real thing, contact us for a free consultation. Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida, and represent investors nationwide to help recover investment losses due to stockbroker misconduct and other investment-related wrongdoing. Most cases handled on a contingent fee basis. This means that you won’t any pay legal fees unless we are successful. Call us toll free at 800-975-4345, or use our online contact form to get in touch.