Cannabis company Terra Tech sued for alleged theft, deceptive finances

A businesswoman in Reno, Nevada, is suing Terra Tech, accusing the California-based, vertically integrated marijuana company and various defendants connected to the firm of alleged theft, stock manipulation and filing false reports with government agencies, a local TV station reported.

According to the lawsuit filed by Heidi Loeb Hegerich in Washoe County District Court, Terra Tech “has a long history of inaccurate bookkeeping practices and filing deceptive financial reports.”

Here’s a rundown on the lawsuit, according to KRNV:

  • Hegerich accused Terra Tech of allegedly looting from the Blum dispensary, one of the joint ventures she co-owns with the company, to fund its other business interests.
  • She claimed the company didn’t properly audit its joint ventures and attempted to remove her as a manager of Blum. She said when Terra Tech was unsuccessful in doing so, the company made a false report in its 10-Q filing, claiming total control over management.
  • In response, Terra Tech issued a statement that said it “strongly denies these allegations.”

“We remind the public that the allegations in her complaint are just that – allegations by a business partner which have not been proven,” Terra Tech said in the statement to the TV station.

“We maintain that, after a full vetting of relevant facts, Terra Tech will be fully vindicated.”

The company, which trades on the U.S. over-the-counter markets as TRTC, announced in November it had signed a nonbinding letter of intent to merge with Toronto-based Golden Leaf Holdings.

The deal – which will enable Terra Tech to trade on the Canadian Securities Exchange when it closes – was valued at roughly $125 million.

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8 comments on “Cannabis company Terra Tech sued for alleged theft, deceptive finances
  1. George Bianchini on

    “According to the lawsuit filed by Heidi Loeb Hegerich in Washoe County District Court, Terra Tech “has a long history of inaccurate bookkeeping practices and filing deceptive financial reports.”

    The last two businesses that Terra Tech’s CEO, Derek Peterson, has been involved in resulted in people being convicted for crimes. One was convicted for embezzlement and in the other a union official was convicted for taking bribes from his co-founder.
    Maybe Peterson is related to Trump!
    Either way,

    •All of the management team has past personal bankruptcies or a shareholder wipeout. CEO and Treasurer filed personal bankruptcy. CEO was allegedly involved in Mazzuto Scam and paid a settlement.
    My point is the PENNY STOCK JOCK (Peterson ) knows how to manipulate stocks and he earned the name while at Crowell, Weedon & Co., but everyone should do their own due diligence with eyes wide open.
    At most any company in the cannabis area is worth about 3 times gross or 1 times net. This whole industry is evolving and the idea of stand alone brick and mortar dispensaries being here in 5 years seems like a long shot.
    Anyone want to buy some Blockbuster or Enron stock?

  2. Goheidi!!! on

    Terra Tech is led by corrupt bums. I say to Terra Tech, “Quit stealing from people and pay for that nice suit you wear”…metaphorically speaking.

  3. Theodore Tessier on

    I sold off my Terra Tech stock this morning. This company is run by a bunch of crooks who have taken shareholders through a rip off reverse stock split to increase the stock value and then mismanaged the company down to a stock price that is about 15% of what the post-stock split price was. All the while they have been promoting Terra Tech as a winner when they are clearly loosers. The sooner scum like Terra Tech is driven out of the legal cannabis industry the better off us investors will be.

  4. Judith Spagnola Perry on

    I had 1,000 shares and woke up one morning to 50 due to a split. The Stoke price was then too high to by in volume for a novice like myself. I sold out. It was manipulated, no doubt about it.

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