Heavyweight boxing legend Mike Tyson and “Nature Boy” wrestling magnate Ric Flair are taking former marijuana business associates to court over an alleged embezzlement scheme. The famous duo are seeking US$50 million in damages.
Attorneys hired by Tyson and the former WWE champion filed a 76-page lawsuit at a United States District Court in Illinois in mid-December. These legal representatives work at New York-based law firm Willkie Farr & Gallagher LLP.
Past Carma HoldCo Inc. executives Chad Bronstein, Adam Wilks and Nicole Cosby are the targets of the suit. Attorneys of the two celebrities accused the co-defendants of what they described as a brazen RICO [Racketeer Influenced and Corrupt Organizations Act] conspiracy involving criminal wire fraud, embezzlement, money laundering, and extortion as well as securities fraud and shameless self-dealing.
“Throughout their time at CARMA, Bronstein and Wilks treated CARMA as their own personal piggy bank, using more than US$1 million to pay for unauthorized personal travel on private jets, costs associated with Bronstein’s personal yacht, renovations to Bronstein’s personal residence, a mortgage payment for Wilks’ personal residence and lavish entertainment expenditures for Wilks,” a court filing read, “including exorbitantly priced meals and travel expenditures, as well as excessive and unapproved compensation and bonuses.”
The filing says that Bronstein used his status as President and Chairman of the Board to pay himself an unauthorized amount. Furthermore, it alleges that he bought Los Angeles Rams coach Sean McVay a watch worth US$15,000 with Carma HoldCo dollars.
“Unbeknownst to McVay, this purchase was completed without company approval,” the filing states.
Bronstein also spent nearly US$3,000 at Gucci on one occasion and US$6,350 on a home theatre system.
Cobsy, Carma HoldCo’s former chief legal and licensing officer, has been accused of selling or authorizing the sale of licensing rights for Tyson 2.0 and Ric Flair Drip when she was not authorized to do so. She was terminated at the end of 2023.
Tyson and Flair have licensing and branding agreements with Carma HoldCo for their Tyson 2.0 and Ric Flair Drip cannabis lines. Carma HoldCo manages the branding, partnerships for manufacturing and distribution, while the celebrities use their fame to boost market appeal. Tyson, creator of “Mike Bites” edibles reminiscent of the Evander Holyfield clash, recently deepened his involvement by becoming the company’s CEO in April this year.
Mike Tyson founded his popular marijuana brand Tyson 2.0 in 2021. It has since expanded globally, offering premium flower, concentrates and other merchandise throughout the United States and Jamaica.
Ric Flair Drip, a creation of the iconic wrestler and Carma HoldCo, focuses on vapes, edibles and pre-rolls.
Defendants adamantly deny the claims
In a statement provided to Front Office Sports, a leading media outlet covering the business side of professional sports, the defendants’ legal representatives firmly dismissed the claims made by Tyson and Flair’s lawyers.
“The complaint is fiction dressed up as a lawsuit,” Jonathan Cyrluk, Bronstein and Cosby’s attorney, told the publication in a statement. “Before filing, the plaintiffs tried to intimidate my clients with settlement demands that read more like a shakedown than a legal claim — demanding millions of dollars and attempting to force others to surrender their Carma shares.”
He added that his clients would “not be bullied” and that they were prepared to defend themselves in court.
Another attorney working with the accused, Terry Campbell, denied the claims as well.
“These claims are as credible as the people they come from — in short, the allegations are without substance,” Campbell stated.
“This is nothing more than an attempt to spit out an earful of salacious headlines and attempt to coerce my client into paying money to them when he did nothing wrong.”
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