The Wall Street Journal has simply revealed a story about a $100M federal fraud case which may essentially harm the popularity of the regulated hashish trade within the USA.
Which, let’s be sincere, is having a exhausting time discovering poster boys and ladies at present
The WSJ particulars the case of a Ruben Weigand, “German businessman”, who was arrested at LAX in March.
In the indictment, federal prosecutors charged Weigand with conspiracy to commit financial institution fraud,
“stemming from an alleged scheme to trick banks into processing more than $100M in marijuana sales.”
The report reveals that Eaze has not been charged, and is just not named within the indictment, however the story places supply app Eaze on the coronary heart of this case.
Until final 12 months, Eaze allowed prospects to pay with bank cards. WSJ: US “Prosecutors allege that Eaze executives and other unnamed co-conspirators worked with Mr. Weigand and another businessman…to devise a ‘transaction laundering scheme’ that hid the true nature of the transactions from banks.”
Prosecutors allege Weigand’s major function, per the paper, was “to manage the alleged network of phony bank accounts used by the phony merchants to process payments on behalf of Eaze. He was responsible, they said, for finding European banks to process Eaze’s transactions.”
Court filings say at the least one Eaze CEO was concerned within the alleged scheme. The Eaze executives allegedly concerned, apparently not work for the corporate.
Eaze is reportedly cooperating with authorities “in hopes of leniency,” in response to the WSJ. The firm says it’s now utilizing a new cost system.
Prosecutors appear to imagine an unspecified multinational “criminal network” is concerned.
On March 9, a German businessman named Ruben Weigand was arrested at Los Angeles International Airport, throughout a layover on his method to Costa Rica. In an indictment unsealed later that week, federal prosecutors in Manhattan charged Mr. Weigand with a single depend of conspiracy to commit financial institution fraud, stemming from an alleged scheme to trick banks into processing greater than $100 million in marijuana gross sales.
The case doesn’t seem like centered on the medicine themselves—the underlying gross sales appear to have been authorized below state legal guidelines…. Read extra (paywall)
Interestingly we word that NYC’s Inner City Press was on to the story again in April
Weigard Charged With $100M Pot Scam Faces December SDNY Trial Wants Bill of Particulars
SDNY COURTHOUSE, April 28 – Ruben Weigand is charged with with a “scheme to deceive US banks into processing in excess of $100 million for marijuana products.”
On April 28, he had a continuing earlier than U.S. District Court for the Southern District of New York Judge Jed S. Rakoff, coated by Inner City Press. Weigand since has cash, in contrast to many SDNY defendants, has excessive powered attorneys from Wilson Sonsini. On April 28 they demanded a invoice of particulars.
Judge Rakoff pushed again, setting a tight schedule for that: May 12, May 18 and he’ll rule by May 20.
But these excessive powered attorneys have a grueling trial schedule for different purchasers, from the Central District of California and elsewhere.
So Judge Rakoff agreed to a trial in December 2020, to be completed earlier than Christmas. Inner City Press will cowl it. The case is US v. Weigand, 20-cr-188 (Rakoff).