AgriDime, a Texas-based cattle company and its owner have been ordered to stop selling unregistered securities in Arizona and North Dakota.
The latest known problem with Agridime’s business practices is that they haven’t properly registered their company as a dealer of securities. This matters because the way in which they conduct their business is effectively selling an investment, and thus must be regulated as one. They certainly may have started off as a company simply selling beef products, and they still do. However, starting at around or before 2021, they started offering their cattle not only as a beef product, but as an investment product. In exchange for investors’ capital, they would guarantee 15-21% in yearly profits.
According to public record, the Arizona Cease and Desist order came about because an Arizona resident was interested in being involved as an investor and contacted the company via phone and email with questions. He was told that depending on the amount of capital put forward, he would be guaranteed returns of 15-21%, and the gains would be realized and paid out in around 1 year and 10 days. When asked about the risks of the investment, Agridime did not disclose any, further stating that the returns were guaranteed “no matter what,” even if the cattle died. This information was reported to the Securities Division of the Arizona Corporation Commission some time thereafter.
Agridime and its owner, Josh Link, have been “offering or selling and/or making, participating in, and/or inducing the sale of securities in the form of investment contracts and/or commodity investment contracts, within or from Arizona,” and those same aforementioned securities “were not registered pursuant to Articles 6 or 7 of the Securities Act,” which violates Arizona Revised Statutes (A.R.S.) 44-1841.
In addition to the offer and sale of unregistered securities, Agridime is also violating A.R.S. 44-1842 (Transactions by Unregistered Dealers or Salesmen) and A.R.S. 44-1991 (Fraud in Connection with the Offer or Sale of Securities).
The Commission feels that the public welfare requires immediate action, so they are implementing a Temporary Cease and Desist, which stays in effect for 180 days. Additionally, the Securities Division is also pursuing a permanent Cease and Desist, as well as a requirement for Agridime to make restitution to clients and penalties of up to $5,000 for each violation of the Securities Act pursuant to A.R.S. 44-2036.
North Dakota Securities Commissioner Karen Tyler recently ordered Agridime to cease and desist from selling unregistered securities; from acting as an unregistered broker-dealer, issuer-dealer or agent; and from engaging in fraudulent practices in connection with the offer and sale of securities.
Agridime is an online platform that allows you to invest directly in cattle. It was founded in 2017 and is owned and operated by a young couple, Tia and Josh Link.
In the Agridime investment program, you’re essentially buying live cattle , and you’re buying online. With Agridime, you can choose the specific cattle you want to invest in and how much you want to invest.
Agridime takes care of the rest, including the actual feeding and caring for the cattle via the farmers that they partner with. Agridime essentially allows you to participate in the investment of cattle without getting into the actual day-to-day care of the cattle itself, all while being able to take profits at the end of it all.
