Choose the correct answer

Lee manages a property investment club. In order to belong to the club, each investor is required to contribute $5,000.00 which Lee then invests in a stock or bond that the club votes on. As 2021 was coming to a close, Lee was frustrated that the club was not earning much interest income. As a result, Lee made a very risky investment in a new cannabis stock that the club had voted against purchasing; however, Lee was convinced that this investment was sound and would result in a profit, and that he was the most knowledgeable investor in the group and therefore in the best position to decide how to invest. Unfortunately, the cannabis stock declined significantly after Lee's investment, and by the time Lee re-sold the cannabis stock, the investment club suffered a major loss. One of the investment club members complained to the police that Lee was responsible for losing the club's money and wants Lee to be charged with fraud. The police investigators should:

A) Charge Lee with fraud because he did not listen to the investment club's direction not to purchase the cannabis stock.

B) Not charge Lee with fraud since there is always an element of risk in investments.

C) Not charge Lee with fraud since the complaint is civil in nature being based on unhappy professional investors, and this a private matter between them.

D) Charge Lee with fraud since his belief that the cannabis stock would not lose money is not a defence to fraud, and he exposed the investment club to the risk of loss.

E) Not charge Lee with fraud since his belief that cannabis stock would not lose money is a defence to fraud, even if he exposed the investment club to the risk of loss.