Two men are facing charges in connection with a scheme to get investors to buy into a medical marijuana grow operation and then pocket that money for their personal use, according to the Warren County Prosecutor’s Office.
Aaron Pitman, 34, of Morrow, Ohio, and Ryan Goldschmidt, 39, of Cincinnati, were indicted Monday on charges of aggravated theft, unauthorized use of property, telecommunications fraud, grand theft, unlawful securities practices and engaging in a pattern of corrupt activity, court records show.
The two men are accused of making misrepresentations to persuade investors into buying a stake in a medical marijuana grow operation in California that Pitman and Goldschmidt claimed to operate, as well as a CBD oil cartridge manufacturing business, prosecutors said in a news release.
Prosecutors say Pitman and Goldschmidt defrauded their investors through several business entities including Oak Street Group, GGB Assets and Excelsior Leasing.
The pair claimed they had experience in licensing, cultivating and selling medical marijuana or CBD oil cartridges, prosecutors said, adding they also misrepresented to investors that Goldschmidt was an attorney.
The investors were told that they would get their money back, as well as additional distributions of profit, according to prosecutors. Neither Pitman nor Goldschmidt are licensed to sell securities to investors.
Prosecutors said $796,714 in investor funds were deposited to Warren County bank accounts controlled by Pitman…
