Two Ohio Men Charged with Fraud Over Fake Medical Cannabis Business Scheme

Linda Rider
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Two Ohio guys have been indicted by a Warren County grand jury for theft, fraud, corrupt action, and unlawful securities practices related to a pretend health care cannabis and CBD oil producing business. 

Warren County Prosecutor David P. Fornshell introduced the charges versus Aaron Pitman, 34, of Morrow, and Ryan R. Goldschmidt, 39, of Cincinnati on Tuesday, alleging the pair defrauded investors by means of numerous small business entities including Oak Road Group, GGB Property, and Excelsior Leasing. The gentlemen are accused of generating misrepresentations to various victims to persuade them to make investments in a health care cannabis improve procedure that they claimed to be functioning in California, as well as a CBD oil cartridge producing business, according to a press release from the Warren County prosecutor’s office.

Roughly $796,714 in investor funds have been deposited into bank accounts managed by Pitman and Goldschmidt. The dollars was utilised for particular costs and other functions unrelated to clinical cannabis or a CBD oil cartridge producing business. In some scenarios, the pair diverted funds to pay back off prior lawsuits or make payments to their buddies, in accordance to a press release. 

Neither Pitman nor Goldschmidt is accredited to provide securities to investors in the state of Ohio, or in any other point out, and inspite of their representations to investors, neither has prior expertise in the business enterprise of licensing, cultivating, or selling health-related cannabis or CBD. They are alleged to have misrepresented to investors that Goldschmidt was an lawyer and that they would get 100% of their income back, in addition extra earnings.  

The victims ended up left with no returns on their investments. 

The indictments are the end result of an investigation by the Ohio Office of Commerce, Division of Securities, and the Ohio Bureau of Prison Investigation, Forensic Accounting Division. 

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