The city’s corrupt rollout of its cannabis agreements, which is the subject of a federal probe, left business owner David Ju saddled with debt.
A man who purchased a cannabis manufacturing permit in Baldwin Park now alleges corrupt city officials helped the seller, a shell company with ties to a former city attorney, flip the permit for more than $150,000 in profit in a scheme that left the new owner saddled with debt.
The claim, typically a precursor to a lawsuit, states the damages are in excess of $25,000 and will be proven at trial. “They set up a system here that is an endless cycle of debt,” he said. “These owner-operators can never get out of that debt.” Pacheco later voted in favor of an unidentified company’s “development agreement for marijuana cultivation and manufacturing” on July 18, 2018, as part of an agreement with Galvan, according to federal prosecutors. Tier One wasThe court filing further alleges that Galvan and Tafoya were “in business together” and were seeking a marijuana license in the City of Commerce.
“Mr. Ju like numerous cannabis investors was caught up in the euphoria of striking it rich and when his dream went south, is now seeking to capitalize on Mr. Tafoya’s misfortune,” Willoughby wrote.
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