Two men from Greater Cincinnati have pleaded guilty to defrauding investors in a fake medical marijuana operation, the Ohio Department of Commerce announced Wednesday.According to ODC, two men, Ryan Goldschmidt, 39, of Cincinnati, and Aaron Pitman, 35, of Morrow, pleaded guilty earlier this month to two third-degree felonies for aggregated theft and two second-degree felonies for telecommunications fraud and unlawful securities practices.A hearing to determine reimbursement for victims will be held Nov. 8.The two men were indicted last October after an investigation by the Ohio Department of Commerce’s Division of Securities and the Ohio Attorney General Bureau of Criminal Investigation’s forensic accounting team.According to ODC, both Goldschmidt and Pitman allegedly defrauded investors through multiple business entities including making misrepresentations to multiple victims to induce them to invest in a medical marijuana grow operation that was claimed to be operating in California, as well as a CBD oil cartridge manufacturing business.ODC said neither man had a license to sell securities to investors in Ohio or had prior experience licensing, cultivating, or selling medical marijuana or CBD oil cartridges.Officials said through the operation, more than $796,714 in investor funds was deposited into Warren County bank accounts controlled by the two men.ODC said the money was used for personal expenses and, in some cases, investor funds were diverted to pay off prior lawsuits or to make payments to friends.
Two men from Greater Cincinnati have pleaded guilty to defrauding investors in a fake medical marijuana operation, the Ohio Department of Commerce announced Wednesday.
According to ODC, two men, Ryan Goldschmidt, 39, of Cincinnati, and Aaron Pitman, 35, of Morrow, pleaded guilty earlier this month to two third-degree felonies for aggregated theft and two second-degree felonies for telecommunications fraud and unlawful securities practices.
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A hearing to determine reimbursement for victims will be held Nov. 8.
The two men were indicted last October after an investigation by the Ohio Department of Commerce’s Division of Securities and the Ohio Attorney General Bureau of Criminal Investigation’s forensic accounting team.
According to ODC, both Goldschmidt and Pitman allegedly defrauded investors through multiple business entities including making misrepresentations to multiple victims to induce them to invest in a medical marijuana grow operation that was claimed to be operating in California, as well as a CBD oil cartridge manufacturing business.
ODC said neither man had a license to sell securities to investors in Ohio or had prior experience licensing, cultivating, or selling medical marijuana or CBD oil cartridges.
Officials said through the operation, more than $796,714 in investor funds was deposited into Warren County bank accounts controlled by the two men.
ODC said the money was used for personal expenses and, in some cases, investor funds were diverted to pay off prior lawsuits or to make payments to friends.
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