Jan. 29, 2024
Of cows, beavers, and chinchillas: can animals become securities? In an article published by Bloomberg Law on Jan. 12, 2024, Nelson Mullins partners Arina Shulga and Jeff Kelly answer this question and discuss the SEC’s charges against Agridime, LLC which include conducting unregistered securities offerings and Ponzi payments.
"Although the Agridime case is still to be decided, there is a strong resemblance between the facts in the SEC’s complaint and securities precedent related to livestock cases, which may have contributed to the court’s prompt temporary restraining order and appointment of a receiver to manage Agridime’s assets during the lawsuit," said Shulga and Kelly. "Neither the chinchillas, beavers, nor cows are securities in themselves. However, in each case, they were subject of an investment scheme, under which investors invested their own money with the expectation that they would derive a profit based on the promises of the promoters."
To learn more, read the full article here.
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