Federal prosecutors just accused a Pennsylvania man of defrauding investors out of more than $8,800,000 through his cannabis payments company.
David Dinenberg, 54, of Penn Wynne has been charged with securities fraud and four counts of wire fraud, says the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Prosecutors say that from about April of 2014 to April of 2023, Dinenberg induced dozens of people to buy shares in KindManage LLC, also called Kind, and affiliated firms by making false claims about the company’s revenues, valuations and business prospects.
KindManage was set up in 2013 to handle payment processing and related services for cannabis growers and distributors in states that allowed medical or recreational marijuana sales.
The information alleges investors were told their money would go to Kind. Prosecutors say Dinenberg instead took more than $500,000 from the company for personal spending, including his sons’ college tuition, rent on a California home and social club memberships.
Prosecutors also say he used Kind to divert about $175,000 in fees that Rhode Island marijuana growers paid in 2020 and 2021. Those fees were supposed to go to the state under his contract. The charging paper says he moved most of that money into personal accounts.
If convicted, he faces up to 20 years in prison on each count. The FBI’s Newtown Square office investigated the case.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Pennsylvania Man Accused of Taking $8,800,000 From Cannabis Company Investors appeared first on The Daily Hodl.
