• Home
  • CBD News
  • CBD Uses
  • CBD Products
  • Contact Us
No Result
View All Result
Cbdnewshubb
Advertisement Banner
  • Home
  • CBD News
  • CBD Uses
  • CBD Products
  • Contact Us
No Result
View All Result
Cbdnewshubb
No Result
View All Result
Home CBD News

Feds Allege $60M Industry Ponzi Scheme and Shut Down WeedGenics

admin by admin
May 25, 2023
in CBD News


Photo: AevanStock / Shutterstock

WASHINGTON – Two individuals behind the company WeedGenics are accused of running a Ponzi scheme and spending tens of millions of dollars on luxury cars, residential upgrades, and adult entertainment.

The U.S. Securities and Exchange Commission (SEC) obtained an emergency order on May 23 to suspend what they allege is an ongoing fraud and Ponzi-like scheme by Integrated National Resources Inc. (INR) which operates as WeedGenics. According to the SEC, owners Rolf Max Hirschmann and Patrick Earl William raised more than $60M from about 350 inventors to expand their business but instead used the majority of the money to enrich themselves and distribute $16 million in Ponzi-like payments.

According to a district court complaint filed on May 16 in the Central District of California, Southern Division, Hirhsman and Williams began to lure investors in June 2019 with a guarantee of up to a 36-percent return on their investment. They claimed the funds would be used to expand WeedGenics facilities that supposedly cultivated cannabis in Adelanto, California, and Las Vegas. However, neither Hirhsman nor Williams owned nor operated any facilities.

Instead of investing the funds as promised, the accused transferred the money through multiple accounts to pay for dining, adult entertainment, jewelry, luxury cars, and residential real estate.

SEC Filling
The diagram shows the circuitous path—if not intentional morass—of investor money flow, statuses of the various accounts (i.e., open, closed, approximate amounts remaining) as of April 2023, and the interconnectedness of defendants and RDs.

To avoid detection, Hirschmann used the name Max Bergmann to serve as the fictitious face of the company and communicate with investors in what the SEC called a “sham.” Some of the funds were used to further the rap career of Williams, who performs under the name “BigRigBaby.”

“Rolf Hirschmann and Patrick Williams allegedly had no real company, no product, and no business, yet despite this, they promised investors everything and then delivered nothing,” said Michele Wein Layne, director of the SEC’s Los Angeles Regional Office. “This action demonstrates that, despite the defendants’ extensive efforts to avoid detection, the SEC has the ability to uncover fraud to protect investors.”

The court granted emergency relief against INR, Hirschmann, Williams, and more than a dozen other named defendants. The relief includes a temporary restraining order, an order to freeze their assets, and the appointment of a temporary receiver over INR and the other defendants. A hearing is scheduled for June 2 to determine whether the court will issue a preliminary injunction and appoint a permanent receiver to manage the businesses while it is under investigation.

The case is Securities and Exchange Commission v. Integrated National Resources, Inc. dba WeedGenics, Rolf Max Hirschmann aka “Max Bergmann” and Patrick Earl Williams.



Source link

Tags: BigRigBabyFeatured StoryMax BergmannPatrick Earl WilliamsPonziRolf Max HirschmannSECSue Dehnam
Previous Post

If You’re Not Selling to Budtenders, You’re Doing It Wrong

Next Post

Can CBD Make You Sleepy? CBD & Sleep Ultimate Guide – Fusion CBD Products

Next Post

Can CBD Make You Sleepy? CBD & Sleep Ultimate Guide – Fusion CBD Products

RETRO Releases Canada's strongest infused pre-roll into the market

A Deeper Look At The Best Methods To Take CBD Oil – Fusion CBD Products

Popular Post

CTrust, Green Check Partner to Create Integrated Company Credit Scoring

by admin
November 29, 2023

Perfectionist Rolling Equipment (PRE) Introduces National cannabis Pre-Roll

by admin
November 28, 2023

4Front Ventures Reports Third Quarter 2023 Financial Results

by admin
November 27, 2023

Indiva Reports Third Quarter Results

by admin
November 26, 2023

Jones Soda Names Jerry Goldner Chief Growth Officer

by admin
November 25, 2023

Native Sun Dispensaries Launch Holiday Gift Collection for Children in Need

by admin
November 24, 2023
cbd-44

© CBD News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • CBD News
  • CBD Uses
  • CBD Products
  • Contact Us

Newsletter Sign Up.

No Result
View All Result
  • Home
  • CBD News
  • CBD Uses
  • CBD Products
  • Contact Us

© 2022 CBD News Hubb All rights reserved.