BISMARCK — North Dakota officials have lodged a cease-and-desist order against a business that allegedly sold investment contracts represented to be investments in cattle.
State Securities Commissioner Karen Tyler ordered Joshua Link and Agridime LLC "to cease and desist from selling unregistered securities, acting as an unregistered broker-dealer, issuer-dealer or agent, and engaging in fraudulent practices in connection with the offer and sale of securities," Tyler's office said in a statement issued Thursday, May 25.
Link, an Arizona resident, is executive director and owner of Agridime, a business formed in Texas in 2017. Agridime and Link also face a cease-and-desist order issued by Arizona officials in April, North Dakota officials said.
In a statement, Agridime said: "While Agridime and Link deny any unlawful conduct, it removed the contested language from its website several weeks ago. Agridime and Link will work with the State of North Dakota to reach an amicable resolution to this matter."
From at least Oct. 10, 2021, until May 12, 2023, Agridime solicited investors through its website and through Facebook, Tyler's office said.
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"Investors were solicited to purchase cattle at $2,000 per head and 'make money raising cattle without having to do all the work.' Investors were promised at least a 'guaranteed 15-20%' annual return on their one-year investment and were also promised a higher rate of return if they renewed their investment instead of liquidating at the end of their original contract," according to the statement from Tyler's office.
"Information obtained by the Department indicates the company has sold at least one investment contract to a North Dakota investor. The investment totaled $250,000 and the company promised a 'guaranteed' 25% rate of return for a one-year term," Tyler's office added, noting the promise of a high, guaranteed return over a short period of time is generally a red flag of investment fraud.
Tyler's office also said investment contract disclosures from Agridime are only available to investors after they make an investment and don't appear to include any material risk disclosures about the investment.
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