Mike Tyson and Ric Flair Sue Former Cannabis Business Partners for Fraud Scheme
Mike Tyson and Ric Flair have teamed up to file a lawsuit against former cannabis business partners, alleging a fraud scheme related to their weed brands. The lawsuit, filed in U.S. District Court in Illinois, accuses former Carma HoldCo Inc. executives of wire fraud, embezzlement, money laundering, extortion, securities fraud, and self-dealing. Tyson and Flair are seeking over $50 million in damages and a jury trial.
The lawsuit targets former Carma president Chad Bronstein, ex-CEO Adam Wilks, former chief legal and licensing officer Nicole Cosby, and shareholder James Case. The complaint claims that the defendants enriched themselves by millions of dollars through illegal activities. The cannabis products in question, such as Tyson 2.0 and Ric Flair Drip, were developed in partnership with Carma HoldCo Inc., with Tyson serving as the company's CEO.
Allegations in the lawsuit include misuse of company funds for personal expenses, such as private jet travel, yacht-related costs, home renovations, and unauthorized bonuses. One specific claim is that Bronstein used company money to buy a luxury watch for Los Angeles Rams head coach Sean McVay without approval. The defendants' attorneys have denied the allegations, calling the lawsuit "fiction" and vowing to defend their clients in court.
The legal battle between Tyson, Flair, and their former business partners highlights the alleged misconduct and financial improprieties that occurred within the cannabis business. The lawsuit seeks to hold the defendants accountable for their actions and recover damages for the harm caused. As the case unfolds in court, the outcome will determine the extent of the alleged fraud and the impact on the parties involved.