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Promise of high returns falls flat as SEC charges fund

by Alice Murray 6 September 2018

A private equity fund based in the US has been charged with defrauding investors after allegedly promising outsized returns from investments in the cannabis industry. Greenview Investment Partners and its founder Michael E Cone used misleading marketing techniques to raise as much as $3.3m from investors, the SEC alleged. [caption id="attachment_4286" align="alignright" width="350"] "A guaranteed high rate of return on your investment is a red flag of fraud," the SEC said in an earlier alert[/caption] Reportedly using an alias to conceal his prior criminal convictions, Cone allegedly employed boiler room sales staff to cold call investors, promising them 24% annual returns if they invested in the fund.

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