Reported by Sue Dehnam

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.

Read full report: https://mgmagazine.com/cannabis-news/feds-allege-60m-industry-ponzi-scheme-and-shut-down-weedgenics/