MI cannabis investor sues JARS for fraud, embezzlement. Alleges $MM scheme to force out minority shareholder.
FLINT, Mich., Sept. 21, 2024 /PRNewswire-PRWeb/ -- Patrick Kanouno, a minority shareholder in three cannabis-related companies, has filed a lawsuit against JARS Cannabis in Oakland County, Michigan. The lawsuit with the case number 2024-208984-CZ, alleges fraud, embezzlement, and an attempted unlawful "squeeze out" that has reportedly caused significant damage to Mr. Kanouno's business interests.
Key Points of the Lawsuit:
- **Fraudulent Misrepresentation**: The lawsuit claims that JARS Cannabis made knowingly false representations to the Cannabis Regulatory Agency (CRA) as part of an attempt to forcibly remove Mr. Kanouno from his minority shareholder positions.
- **Financial Transparency Issues**: JARS Cannabis is accused of refusing to share financial records or undergo forensic accounting for the businesses in question.
- **Attempted Unlawful Dissolution**: The lawsuit alleges that JARS recently attempted an unlawful dissolution of GCFlint LLC to liquidate the company before a formal accounting could occur.
- **Ongoing Divestment Efforts**: Despite the ongoing litigation, JARS is reportedly continuing efforts to remove Mr. Kanouno from his companies and divest him of his assets and income.
Mr. Kanouno stated, "I stand here today seeking justice as a victim of a multi-million dollar scheme perpetrated by JARS to steal my assets, equity, and income from me."
The lawsuit highlights broader concerns about the Michigan cannabis industry, suggesting that larger companies may be using lobbyists and industry non-profit groups to influence government regulators at the expense of small business owners.
Mr. Kanouno, a lifelong small business owner, invested heavily in the Michigan cannabis industry with hopes of fair treatment and opportunity. "It is my hope that by seeking justice and exposing the corrupt and illegal activities perpetrated against me that I can finally rectify all of the harm done to me," he added.
This case underscores the ongoing challenges faced by minority shareholders and small business owners in the rapidly evolving cannabis industry.
About Patrick Kanouno:
Patrick Kanouno is a minority shareholder in three cannabis-related companies and a long-time small business owner in Michigan.
Media Contact
Jan Jeffrey Rubinstein, Esq., THE RUBINSTEIN LAW FIRM, 1 (248) 220-1415, [email protected], www.therubinsteinfirm.com
SOURCE Patrick Kanouno
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