Cannabis Investors Scammed: Thousands Lost In Bogus Resort Scheme In Remote Alaskan Village

A grandiose vision of a marijuana-themed paradise in Alaska turned into a nightmare for nearly two dozen investors, as they found themselves ensnared in a web of deceit spun by a salesman peddling dreams of a lucrative “Bud and Breakfast” resort. Brian Keith Corty‘s elaborate promises, painted in shades of optimism and Northern Lights, cost these investors over $600,000, federal prosecutors revealed.

Corty, with his vision of a cannabis haven nestled near Salcha, Alaska, captivated investors with the allure of enjoying marijuana amid the awesome backdrop of the state’s exquisite natural beauty. But in fact, "Corty simply lived off of investor funds while continuing to lie to them," prosecutors wrote in a sentencing memorandum.

Investors were led to believe that cannabis would be grown, cultivated and sold to customers at the resort. Corty's promise the business would make millions of dollars yearly when it was up and running fueled the investors’ interest.

Salcha, by the way, is a village about 40 miles south of Fairbanks. Population as of 2022: 689 people.

"It is unclear how anyone could project that a lodge selling rooms and marijuana in Salcha, Alaska, could possibly generate the returns he promised," prosecutors wrote in court documents, reported the SacBee.

What Were They Thinking (Or Smoking)?

The lodge, which Corty said was along a highway (there are no highways in Salcha), was touted as the epicenter of this marijuana utopia, where guests would revel in glass-ceilinged rooms while partaking in cannabis delights.

Corty’s scam came to a crashing halt when federal prosecutors uncovered the glaring discrepancies in his projections, questioning the feasibility of such astronomical returns from a lodge in remote Alaska. Corty's modus operandi involved selling investors units in Ice Fog Holdings LLC, a company supposedly dedicated to cannabis production and sales.

Prosecutors found that Corty diverted his investors’ money for personal use, settling debts and refinancing his own home. His scheme, underway from 2017 to 2020, came to an abrupt halt with his incarceration following a guilty plea to conspiracy to commit wire fraud.

Finally Sentenced To A ‘Lodge' Behind Bars

Corty's sentencing on May 3 to a two-year prison term marked the culmination of his duplicitous scheme. In addition to the prison sentence, he was ordered to pay restitution exceeding $580,000, reflecting the magnitude of the financial harm inflicted upon the investors.

Despite claims from his legal counsel of genuine intentions and aspirations, Corty’s plea agreement portrayed him as the mastermind behind the fraudulent enterprise. "Mr. Corty manipulated unknowing investors by promising millions in proceeds and used their money for his personal gain," U.S. Attorney S. Lane Tucker said in a statement.

There won’t be any scams just interesting and essential information in all areas of the cannabis industry at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Now Read: Las Vegas Cannabis Powerhouse Planet 13 To Close $49M Florida Expansion Deal After Achieving Another Milestone

Photo: US Census Bureau