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NJ Hemp Company Sues Massachusetts Based Partner Over Alleged ‘Ponzi Scheme’

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Ganjapreneur reports

New Jersey hemp company Delta Technologies is suing the Massachusetts-based biotech firm Salzman Group, claiming the company operated a “Ponzi scheme” which utilized more than $700,000 it raised from the firm for its own projects.

New Jersey hemp company is suing a Massachusetts biotech company claiming it operated a “Ponzi scheme” by using more than $700,000 it raised from the firm to fund its own projects, Salem News reports. In its lawsuit against the Salzman Group, Delta Technologies claims the drug development company took their money and used their machinery in other, failed, projects. 

According to the lawsuit, Salzman Group Chairman and CEO Dr. Andrew Salzman agreed to put together a “large team of scientists” to help Delta and its manager, Alexander Jacobs, obtain a patent to produce different types of hemp products. Jacobs and Delta agreed to pay the Salzman Group $20,000 per month for the project. The lawsuit alleges that, at first, Salzman told Jacobs that the team had made “dramatic” short-term progress, but the lawsuit contends that Salzman eventually stopped giving Jacobs updates or providing evidence of progress toward a commercially viable product. 

The lawsuit contends that Jacobs also agreed to provide cash to the Salzman Group to start a small laboratory in Beverly, Massachusetts to produce a “rare cannabinoid” to sell in Europe and “across the world” but Jacobs said the Salzman Group “never delivered the product on time,” and the deliveries that were made were “too small” to fulfill all of Jacob’s clients’ orders. In the lawsuit, Jacobs said he learned later that Salzman had never moved the product’s production to the Beverly laboratory. Jacobs also claims that the machinery provided to the project was never returned and that Delta has been unable to retrieve them.  

The lawsuit accuses the Salzman Group of intending to defraud, and defrauding, Delta “out of hundreds of thousands of dollars to pursue their own interests” with “no intent to ever produce the product plaintiffs needed.” The lawsuit accuses the Salzman Group of breach of contract and fraud. 

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Hemp Company Sues Partner Over Alleged ‘Ponzi Scheme’



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The Oregonian: Naked Oregon man wounded by exploding weed pen, lawsuit claims

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Thanks to Vince Sliwoski for tipping us off to this only in Oregon story !

A man who was getting baked while bare of any clothes was seriously injured when his weed pen exploded, a lawsuit filed Friday claims.

Gustavo Mendes now seeks $230,000 from the manufacturer of the malfunctioning marijuana vaporizer and the Eugene pot shop where he bought it, according to allegations in the Lane County Circuit Court suit.

The incident happened Feb. 13, 2023 as the 28-year-old was standing in his bathroom “in a state of undress,” according to the lawsuit.

Mendes took a puff or two and realized the pen was superheating in his hands, the lawsuit says; in a flash, it exploded — spraying burning chemicals onto his eyes, torso and below his waist.

The subsequent fire on the bathroom counter and floor cost $20,000 to repair, while Mendes’ medical bills at a Springfield hospital and Gresham eye care center topped $3,500, the suit says.

After previously earning $68,000 a year as a welder, Mendes is now sensitive to light and must apply eye drops regularly, necessitating a change in careers, according to his attorney.

He had purchased the pen, branded under the name Quantum Alchemy, three days prior at Hwy 99 Cannabis Co. Both the retailer and manufacturer are named as defendants in court papers.

Quantum Alchemy’s website has expired and an email inquiry bounced back.

https://www.oregonlive.com/marijuana/2025/02/naked-oregon-man-wounded-by-exploding-weed-pen-lawsuit-claims.html

 

Quantam has been getting recall notices as far back as 2022 as this OLCC alert testifies.

nr120222-Cannabis-Product-Recall-Pesticide-Bobsled-QuantumAlchemy



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EWeb Page / SEC Docs – SEC Charges Acreage Holdings, Inc. For Accounting Violations

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ADMINISTRATIVE PROCEEDING
File No. 3-22389

January 10, 2025 – The Securities and Exchange Commission today announced settled charges against Acreage Holdings, Inc. for violating the books and records provision of the federal securities laws when it created false records regarding a transfer of approximately $4 million that was temporarily moved into the company’s bank account a few days before the end of Acreage’s 2019 fiscal year.

According to the SEC’s order, Acreage caused an affiliated entity to transfer approximately $4.2 million into Acreage’s bank account on December 26, 2019, with the express understanding that Acreage would return the full amount at the beginning of the new year, which it did on January 3, 2020.  Acreage then allegedly created journal entries and other records that mischaracterized the round-trip transfer, first as a repayment of debt owed by the affiliate and later as a short-term loan to Acreage.  The SEC’s order further finds that after certain employees’ concerns about the round-trip nature of the transaction were escalated to a member of Acreage’s board of directors, Acreage recorded an additional journal entry that effectively reversed the transaction.

The SEC’s order also finds that during the audit of Acreage’s fiscal year 2019 financial statements, Acreage created and provided written documents to the accounting firm conducting the audit that misrepresented and omitted material facts about the round-trip cash transfer.  As a result, the SEC’s order finds that Acreage violated Section 13(b)(2)(A) of the Securities Exchange Act of 1934 by failing to make and keep books, records, and accounts that accurately and fairly reflected the round-trip cash transfer.

Without admitting or denying the findings in the SEC’s order, Acreage agreed to cease and desist from committing or causing violations or future violations of Section 13(b)(2)(A), and to pay a civil penalty of $225,000.

The SEC’s investigation was conducted by Kiran Patel, Nandy Celamy, Russel Feldman and George N. Stepaniuk, and was supervised by Thomas P. Smith, Jr., all of the New York Regional Office.



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Homberg Leaves Dentons For New Post At Gunnercooke

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Peter Homberg writes on Linked In Today

After more than 12 exciting years at Dentons, I’m delighted to share that I have joined the international law firm gunnercooke.

I’m excited to offer my clients truly exceptional service, leveraging gunnercooke’s flexibility, innovation, and collaborative culture to support them closely through their legal challenges, while also shaping and expanding my practice in a direction I’m passionate about.

I look forward to the many exciting projects and cases to come, please reach out if you’d like to know more.

 



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