Fake Idaho Cannabis company ponzi scheme shut down by the Feds
EAGLE - The Securities and Exchange Commission has shut down a ponzi scheme run by a Treasure Valley man that was allegedly operating as a cannabis company.
The SEC filing shows Rolf Hirschmann, 52, of Eagle, raised more than $60 million through the company Integrated National Resources Inc. (INR), which was doing business as WeedGenics. Documents show Hirschmann and his partner Patrick Earl Williams, 34, of St. Petersburg, Florida, had been operating the scheme since June 2019.
According to the complaint, the two men promised investors they would use raised funds to expand WeedGenics facilities, which they guaranteed would produce up to 36% returns, but in reality Hirschmann and Williams never owned or operated any facilities. It was all a sham.
The complaint alleges that when Hirschmann and Williams received investors’ funds, they transferred the money through multiple accounts to enrich others and for personal use such as entertainment, jewelry, luxury cars, and residential real estate. The complaint further alleges that in an attempt to avoid detection, Hirschmann, acting as the face of the company, used the fake name Max Bergmann the entire time he communicated with investors, while Williams, as Vice President of the company, worked behind the scenes while spending investor funds on his more public career as a rap musician known as “BigRigBaby.”
“Rolf Hirschmann and Patrick Williams allegedly had no real company, no product, and no business, yet despite this, they promised investors everything and then delivered nothing,” said Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office. “This action demonstrates that, despite the defendants’ extensive efforts to avoid detection, the SEC has the ability to uncover fraud to protect investors.”
The court granted the SEC emergency relief against INR, Hirschmann, Williams, and several relief defendants, including a temporary restraining order, an order freezing their assets, and appointment of a temporary receiver over INR and the entity relief defendants.
A hearing is scheduled for June 2, 2023 to consider whether to issue a preliminary injunction and appoint a permanent receiver.
