The owners of a high-profile marijuana shop in Southern California – Santa Ana’s 420 Central – are accused in a lawsuit of defrauding investors.
The suit, filed in Orange County Superior Court of California, contains a host of salacious allegations, including one that founder and CEO Robert Taft ran an unlicensed marijuana grow operation in Sonoma County.
The suit, filed by two investment companies against a conglomeration of business entities known collectively as the 420 Companies and two of its executives, Jorge Burtin and Jeff Holcomb, alleges, among other things:
- The lawsuit paints a picture of managerial incompetence at 420 Companies, alleging that Taft is a “mercurial and volatile” executive prone to “boasting about his grand ideas to employees, and coaxing employees to smoke marijuana with him outside during working hours.”Fraud.
- Breach of contract.
- Breach of fiduciary duty.
Under Taft’s watch, the suit alleges, 420 Companies has gone into a “death spiral,” hemorrhaging revenues and losing clients.
Published: August 30, 2019
Founder & Interim Editor of L.A. Cannabis News