Scottsdale man convicted of cannabis investment fraud, verdict from jury – AZCentral
A Scottsdale resident has been found guilty of wire fraud after deceiving a financier into believing that he would invest $100,000 in the cannabis sector when he actually used the money for his personal expenses, legal documentation states. The court convicted Christopher E. Galvin, 58, of a single wire fraud charge following a jury trial presided over by U.S. District Judge Susan Brnovich. Prior to the trial, federal prosecutors decided to drop four counts of business-related money laundering.
Galvin initiated a company named Hypur Ventures II in 2019, as disclosed by the U.S. Attorney’s Office based in Arizona. Subsequently, he convinced the affected woman to transfer $100,000 to him for investment in cannabis-related ventures. Despite promising the woman that the funds would be reimbursed, Galvin diverted the money elsewhere and failed to repay the investor. The court documents indicate that Galvin continually assured the victim that he was unable to provide information on the performance of the investment, a clear indication of his deceptive intentions.
Legal representatives for Galvin attempted to argue that the expenses incurred were justified under the terms outlined by Hypur Ventures II disclosures, which, according to court documentation, highlighted the risks associated with investing in cannabis entities. The existence of these disclosures prompted prosecutors to abandon the remaining four charges, as detailed in a defense-provided trial summary.
Galvin is slated for sentencing on May 30, facing potential legal repercussions. In a separate legal pursuit, the U.S. Securities and Exchange Commission has taken action against Galvin, alleging that he falsely claimed to two investors that he would direct their $500,000 funding into cannabis-based businesses. The ongoing developments surrounding Galvin’s actions have underscored the importance of financial transparency and ethical investment practices.
