By MIKE HEUER Courthouse News Service
Friday, May 01, 2015 last Update: 2:27 PM PT
SAN DIEGO (CN) - The new owners of the nation's first publicly traded medical marijuana company acquired it through fraud, former board members say in a state court suit.
William Martin and David Tobias say the Hemp Deposit and Distribution Corp. - doing business as CannaBank - and its president and founder, Michael Llamas, lied to them to acquire a controlling interest in Medical Marijuana, Inc. in 2010.
Named as defendants are Medical Marijuana Inc., Hemp Deposit and Distribution, which does business as CannaBank, Llamas and Michelle Sides, who is a Florida attorney Martin and Tobias say assisted Llamas in executing the deal for Medical Marijuana.
Martin and Tobias accuse Llamas and Sides of fraud, conspiracy, conversion, rescission, unjust enrichment, negligent misrepresentation, bad faith, gross mismanagement, breaches of fiduciary duty and contract and breach of employment contract.
They also accuse defendants of violations of the California Corporation Code, Business and Professions Code, and the U.S. Exchange Act.
Martin and Tobias seek recession of the CannaBank agreement, monetary judgment plus interest and punitive, incidental and additional damages and the transfer of 30 million shares in Medical Marijuana to Martin and another 30 million shares to Tobias.
Attorney Jonathan McGee of the McGee Law Firm in Phoenix filed the complaint on behalf of Martin and Tobias.
Officials for CannaBank did not reply to requests for comment by press time.
HFN editor's note: This crowd of clowns is led by agent D, close associate of San Diego city attorney Jan Goldsmith. This fellow Llamas is reported to be "working" with Eugene Davidovich, of "arma" doing bank! More Cointelpro Crap!
Davidovich's Alliance for Responsible Medicinal Access, (Arma) is a government scam, in our opinion, pure and simple,
ARMA's propaganda website