Source: Policy Decoded Newsletter
The Denver cultivator Mammoth Farms is suing its own chief financial officer, Rich Ehrich, and a finance staffer the complaint calls the CEO’s trusted right hand, alleging the two ran $825,000 out of the company through ghost employees whose phantom wages landed in accounts tied to her children. The May 30th filing tallies a $105,000 BMW and trips to Italy, Spain, and Disneyland. Mammoth’s lawyer ties the timing to the margin pressure cheap illicit hemp extract has put on legal cultivators. Operators plan for regulators and landlords. The finance office, in a cash-stressed business built on founder trust and thin internal controls, is the exposure they tend to miss until a lawsuit names it. (BusinessDen)
