Bloomberg Law
June 12, 2020, 6:24 PM

Bloom Farms Sued Over Finances, Oversight, Ties to Ponzi Scheme

Mike Leonard
Mike Leonard
Legal Reporter

The board of cannabis company Bloom Farms was sued in Delaware Friday by one of its members, who claims it’s refusing to let independent auditors look into allegations that it doctored its books to court a seven-figure investment while its chief financial officer ran a solar energy Ponzi scheme.

“The deceptive and freewheeling nature of the company’s financial protocols and procedures, as well as its utter failure to observe sound corporate governance measures, requires court intervention,” the Chancery Court lawsuit says.

It was filed by Jeff A. Menashe, who got a seat on the board of American General Resources LLC, ...