Source:
https://www.thecannabist.co/2017/06/13/illegal-colorado-marijuana-trafficking-indictment-pack-rayton/81417/
New indictment alleges businessman Scott Pack obtained 14 marijuana licenses and played a 'pivotal' role in massive trafficking ring broken up in March.
Pack’s companies were charged with: conspiracy to possess with intent to distribute more than 50 pounds of marijuana; cultivation of 30-plus marijuana plants; and two counts of securities fraud.
A front for a successful illegal marijuana trafficking organization’
Pack and Saenz were 50-50 partners in Harmony & Green LLC, an asset holding company and licensing business; Pack created HGCO to obtain marijuana licenses, according to allegations in the June 7 indictment. During the course of two years, Pack obtained 14 marijuana licenses for the firm, but he kept Saenz’s identity as an owner cloaked from the state.
Pack never disclosed to the state that his business partner was a man who was barred from obtaining a marijuana license nor that there were investments made from out of state or country, investigators allege.
Harmony & Green’s scheme involved soliciting investors for money to build out warehouses that had been leased or bought by Pack’s father, Michael Pack. The younger Pack and Saenz deceived investors, saying they had invested millions of their own money when they had not, and they misrepresented a $678,000 annual revenue stream that did not legally exist, according to the indictment.
Under the guise of a licensed Colorado cannabis business, Harmony & Green and HGCO served as a front for the drug-trafficking organization, investigators claim, noting that the businesses never made a single legal sale of cannabis in their two years of operation.
Pack and Saenz reeled in $1 million during 2016 from the illegal distribution of marijuana, investigators allege.
“All of this was done under Scott Pack and Rudy Saenz’s scheme of using HGCO LLC as a shell company, which essentially provided licenses that Harmony & Green LLC could never hold,” investigators alleged. “Harmony & Green LLC then scammed unknowing individuals into investing hundreds of thousands of dollars to a company, which never once sold legal marijuana in the state of Colorado, but provided a front for a successful illegal marijuana trafficking organization.”
Eight of the 16 people indicted held active or expired licenses for operating a marijuana business in Colorado, The Denver Post reported in March.
https://www.thecannabist.co/2017/06/13/illegal-colorado-marijuana-trafficking-indictment-pack-rayton/81417/
New indictment alleges businessman Scott Pack obtained 14 marijuana licenses and played a 'pivotal' role in massive trafficking ring broken up in March.
Pack’s companies were charged with: conspiracy to possess with intent to distribute more than 50 pounds of marijuana; cultivation of 30-plus marijuana plants; and two counts of securities fraud.
A front for a successful illegal marijuana trafficking organization’
Pack and Saenz were 50-50 partners in Harmony & Green LLC, an asset holding company and licensing business; Pack created HGCO to obtain marijuana licenses, according to allegations in the June 7 indictment. During the course of two years, Pack obtained 14 marijuana licenses for the firm, but he kept Saenz’s identity as an owner cloaked from the state.
Pack never disclosed to the state that his business partner was a man who was barred from obtaining a marijuana license nor that there were investments made from out of state or country, investigators allege.
Harmony & Green’s scheme involved soliciting investors for money to build out warehouses that had been leased or bought by Pack’s father, Michael Pack. The younger Pack and Saenz deceived investors, saying they had invested millions of their own money when they had not, and they misrepresented a $678,000 annual revenue stream that did not legally exist, according to the indictment.
Under the guise of a licensed Colorado cannabis business, Harmony & Green and HGCO served as a front for the drug-trafficking organization, investigators claim, noting that the businesses never made a single legal sale of cannabis in their two years of operation.
Pack and Saenz reeled in $1 million during 2016 from the illegal distribution of marijuana, investigators allege.
“All of this was done under Scott Pack and Rudy Saenz’s scheme of using HGCO LLC as a shell company, which essentially provided licenses that Harmony & Green LLC could never hold,” investigators alleged. “Harmony & Green LLC then scammed unknowing individuals into investing hundreds of thousands of dollars to a company, which never once sold legal marijuana in the state of Colorado, but provided a front for a successful illegal marijuana trafficking organization.”
Eight of the 16 people indicted held active or expired licenses for operating a marijuana business in Colorado, The Denver Post reported in March.
