Lawsuit alleges illegal diversion and counterfeiting of cannabis in…

Lawsuit alleges illegal diversion and counterfeiting of cannabis in…


George Engers, former COO of California cannabis company Top Shelf, filed a lawsuit alleging whistleblower retaliation, wrongful termination, fraud, breach of contract and more.

Engers and former general delivery manager Garrett Webb reported $2.1 million in illegal diversion and counterfeiting of cannabis to state and federal authorities, but no action was taken.

What’s in the lawsuit?

The civil suit Goals to uncover problems within the California Marijuana Industrywrote John Schroyer of Green Market Report.

Engers submitted evidence to the California Department of Cannabis Control (DCC) and the FBI regarding alleged large orders that defendant Quan Le had placed with licensed cannabis sellers.

But the FBI and DCC concluded their investigation into Top Shelf without comment.

According to the lawsuit, Engers and Webb began working with Le in 2021, when Le engaged Engers of Sacramento-based cannabis retail chain Kolas with a promise of a 21% stake in a new startup called Top Shelf.

In January 2022, Engers noticed large cash withdrawals from the account he normally used for payroll and later concluded that Le and his wife were embezzling money from their own business, according to the lawsuit.

Top Shelf and its co-defendants deny the allegations and look forward to proving the allegations untrue.

Engers believes that authorities have not investigated or punished Top Shelf’s violations of state and federal laws. “Despite reporting the violations and providing evidence, the business remained unaffected with an active license,” he said.

The civil lawsuit aims to draw attention to the lack of accountability of cannabis companies operating outside the bounds of the law.

More details HERE in the Green Market Report.

picture of gasoline ga


Source story

More to explorer