Former Eaze Technologies Inc. CEO Jim Patterson has pleaded guilty to one count of conspiracy to commit bank fraud.
Patterson attempted to deceive banks into processing more than $100 million worth of credit and debit payments for cannabis-related purchases, according to Law360.
A trial is set for March 1, with charges against businessmen Ruben Weigand and Hamid Akhavan in the Southern District of New York federal court.
Patterson had been working with Weigand and Akhavan to conceal the fact that the payments stemmed from marijuana purchases.
Eaze has not been charged and has cooperated with federal investigators, the company claims.
Patterson stepped down as Eaze CEO in 2019. His departure was not reportedly linked to any federal investigations, but rather layoffs and a changing company focus.
The allegations underscore ongoing issues revolving around payment processing in the cannabis space. Due to federal regulations prohibiting banking access, delivery companies must operate as cash-only ventures.
In 2019, Eaze was sued by another in-state delivery brand, Herban Industries, over claims that Eaze gained a market advantage using routed transactions and shell companies in Europe for credit payments.
The case was ultimately dismissed.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.