‘Hemp’ company joins sports celebrities in lawsuit alleging fraud, money laundering

A Miami-based “global hemp company” is a plaintiff in a lawsuit alleging a conspiracy involving criminal wire fraud, embezzlement and money laundering against four cannabis executives.

The company, LGNDS, joined ex-boxer Mike Tyson and professional wrestler Ric Flair in suing former business partners over their celebrity cannabis branding ventures, alleging they were defrauded and cut out of revenues. Tyson and Flair, who tied to their names and likenesses to a range of marijuana and hemp products, are the lead plaintiffs in a 76-page complaint filed Dec. 19, 2025 in U.S. District Court in Illinois. Carma, a Chicago-based branding company behind their cannabis brands, is a fourth plaintiff.

The lawsuit names former Carma executives and shareholders as defendants:
• Chad Bronstein, former chairman and president of Carma;
• Adam Wilks, former chief executive officer;
• Nicole Cosby, former board member and chief legal and licensing officer; and
• James Case, a Carma shareholder.

They are accused of defrauding the celebrity partners and treating LGNDS as “their own personal piggy bank,” according to the lawsuit.

LGNDS’s role

LGNDS purchased rights to use Tyson’s likeness on a broad range of products made from hemp, mushrooms, nicotine and kava products, and merchandising such as apparel and footwear.

LGNDS was brought into the celebrity branding efforts specifically to help launch an e-commerce marketplace with global shipping for three “hemp-derived verticals”: delta-8 THC, hemp-derived delta-9 THC and CBD. Announcements around the time of that deal branded LGNDS as a “market-leading hemp company” with “global reach” and product innovation in hemp-derived cannabinoids.

Alleged misconduct

Beyond general claims of fraud, the complaint lays out a pattern of alleged self-dealing tied to how licensing rights and sponsorships were approved and monetized. According to the filing, the defendants entered into multiple sublicensing and promotional agreements without proper authorization, using Tyson’s and Flair’s names and intellectual property to market cannabis and hemp products outside the agreed licensing framework.

The lawsuit also alleges the defendants misrepresented Carma’s valuation to investors while selling personal shareholdings at a profit, and diverted value through non-cash inducements from business partners rather than routing licensing fees through the company. The complaint further claims that a separate entity was created to commercialize Ric Flair’s likeness, with control later transferred to Carma without Flair’s informed consent.

The filing also accuses the defendants of awarding themselves excessive compensation and bonuses, reducing funds available to the celebrity partners and other stakeholders.

Northern California ties

The complaint raises conflict-of-interest concerns tied to Carma’s cannabis production and distribution relationships. It alleges that one defendant held senior roles at both Carma and a cannabis investment firm with interests in Northern California cannabis operators involved in producing Tyson-branded products.

Under a 2022 agreement, one such operator was to manufacture and market Tyson-branded cannabis flower and pre-rolls in exchange for royalties. The suit alleges those payments were not made as required, and that obligations were waived in exchange for personal equity interests, leaving Carma to extend loans that remain largely unpaid.