Two executives from New York hemp agency CanaFarma Hemp Merchandise Corp. are accused of stealing not less than $4 million from the corporate within the newest authorized problem to face the embattled CBD producer.

A federal lawsuit filed final week accuses CanaFarma executives Vitaly Fargesen and Igor Palatnik of mendacity to traders and promising to create client items from company-grown hemp.

The lawsuit claims that whereas the corporate grew hemp at two farms in New York in 2019 and 2020, none of it was processed.

The pair additionally faces securities and wire fraud prices filed final fall by the U.S. Securities and Change Fee.

The SEC says that Fargesen and Palatnik gave traders baseless income projections and pretended to course of hemp from their very own farm when, in actual fact, they had been making merchandise from hemp equipped by third events.

That case has not been settled, in accordance with Legislation 360, which first reported final week’s investor lawsuit.