Inside The Largest Marijuana Fraud Case In Colorado History

Colorado’s authorized pot business continues to be thought-about comparatively inexperienced (pun meant), however, like most profitable industries, it’s already seen its justifiable share of foul play. None greater, maybe, than within the case of 1 Scott Pack, a hashish entrepreneur who’s at present beneath investigation for what one lawyer calls “the largest fraud case in the history of Colorado’s marijuana industry.”

Inside The Largest Marijuana Fraud Case In Colorado History

Pack’s story serves as a cautionary tales of types for these trying to spend money on Colorado’s burgeoning authorized hashish business.

Scott Pack’s authorized woes started in April, after two buyers, Pierre and Christophe Raygot, claimed they have been coaxed out of a cool $500,000 by Pack, his father, Michael, and Rudy Saenz, a hedge fund supervisor at Pack’s firm Harmony & Green.

The incident first occurred again in 2015, when non-Colorado residents weren’t permitted to place their cash into hashish companies (the regulation was modified the next yr). The Raygots are each overseas nationals, with Pierre hailing from Thailand and Christophe, from Portugal. They thought Pack might assist them get in on the enterprise from the bottom up, regardless of not being Colorado residents.

The Raygots’ present lawyer, Henry Baskerville, contends the duo was misled by Pack and his funding workforce.

“At the time, Pierre could not invest directly in a marijuana business,” Baskerville stated in an interview with Westword.  “So it was represented to him that the legal way he could still participate in the industry was to invest in a company that would eventually own or manage properties in which a grow would operate. But he was given some conflicting information about what the structure would be, which is what we’ve tried to convey in the second amended complaint.”

Baskerville famous there have been a number of statements made by Pack relating to his enterprise that they consider have been simply outright lies. Specifically, the place the cash was going, the valuation of Harmony & Green and the declare that Pack was elevating cash for a brand new develop facility, which by no means truly got here to fruition.

“There were a number of times Scott represented over Facebook Messenger that they were obtaining new grows and looking for money to purchase a new facility—but it appears that those representations were not true,” Baskerville claimed. “From what we’ve been able to gather so far, it appears that the money was funneled directly into the marijuana business, and we believe it was used to repay other investors or funneled into the Packs’ pockets.”

The duo has since filed a brand new go well with, which, based on Baskerville, “provides more details about what we believe to be false statements made to our clients.”

“There’s a back-and-forth where Scott said they received $5 million in funding. We think that’s false, too. And there’s a long, detailed Facebook conversation where Scott said they needed a bridge loan of $400,000 because they had the opportunity to purchase a property for $1.6 million,” Baskerville stated. “Scott said they only needed the money for 30 to 90 days, and because they’d be getting a mid-month cash infusion of $500,000, the risk would be virtually nothing. But as far as we can tell, that was completely made up.”

Final Hit: Inside The Largest Marijuana Fraud Case In Colorado History

While Pack has maintained his innocence all through the ordeal, Harmony & Green’s official web site contends in any other case.

In a submit that has since been taken down, an nameless writer gave its shoppers an trustworthy, and admittedly, blunt apology relating to its embattled CEO.

“Harmony & Green’s former employees would like to offer a public apology to the company’s investors and their families. You were defrauded by the CEO, Scott Pack, and his partner, Rudy Saenz,” the submit stated. “You have been disregarded, lied to and kept in the dark. So were we. You deserved better. You are good people who trusted in a vision that was peddled to you by people who never had any intention of living up to its lofty idealism.”

The unnamed apologist additionally claimed that Harmony & Green’s staff have been simply as naive to the scheme because it’s buyers.

“We are sorry. You deserved better. You were played. So were we.”

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