Black Hawk Funding Inc. and its founder-CEO raised nearly $38 million from 200 people who wanted to invest in the cannabis industry through what the SEC says was a fraudulent operation, according to a new lawsuit in California federal court.
The money went to unrelated business ventures, Ponzi-like payments to investors, and the CEO himself, Robert Newell, the Securities and Exchange Commission says. It filed its complaint Monday in the US District Court for the Central District of California.
Newell misappropriated at least around $668,000 of investor funds for his own personal benefit, the SEC says.
The three Black Hawk ...
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