U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25960 / March 29, 2024
Securities and Exchange Commission v. Christopher E. Galvin, No. 2:24-cv-00636-JJT (D. Ariz. filed Mar. 22, 2024)
SEC Charges Christopher E. Galvin with Cannabis-Related Fraud
The Securities and Exchange Commission announced that, on March 22, 2024, it charged Christopher E. Galvin with conducting an alleged offering fraud through a fund he claimed would make investments in companies related to the cannabis industry.
The SEC’s complaint alleges that, in 2019, Galvin formed Hypur Ventures II, L.P. and sold interests therein to two investors in for a total of $500,000. According to the complaint, rather than use investors’ money to invest in cannabis-related companies, Galvin diverted most of it to another company he controlled and used another portion to pay for inappropriate operating and travel expenses. After diverting the money, he also allegedly repeatedly assured one investor that the money had been appropriately invested, when he knew or should have known it had not been.
The SEC's complaint, filed in federal district court in Arizona, charges Galvin with violating the antifraud provisions of Sections 17(a)(1) through (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, disgorgement, an officer-and-director bar, and a civil penalty against Galvin.
The SEC’s investigation was conducted by Matthew Finnegan and John Rossetti, and it was supervised by Jeff Leasure and Mark Cave. The SEC's litigation is being led by Michelle Zamarin and supervised by Melissa Armstrong.