The SEC complaint states that Cone spent investors’ money on designer clothes and luxury cars. Not only that, Cone used investor funds to make payments to earlier investors in order to prolong the alleged scheme.
In a parallel criminal proceeding, the U.S. Attorney’s Office for the Central District of California charged Cone and seized approximately $1.4 million in cash and assets.
“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 complaint filed in the U.S. District Court for the Northern District of Texas, charged Greenview and Cone with securities fraud and violations of the registration provisions of the federal securities laws. Cone agreed to an officer-and-director bar and a permanent injunction. The court will determine disgorgement and prejudgment interest at a later time.