Former Eaze CEO Pleads Guilty to Conspiracy to Commit Bank Fraud

Former Eaze CEO Jim Patterson pleaded guilty last week to one count of conspiracy to commit bank fraud, according to a San Francisco Gate report. His associates, Ruben Weigand and Hamid “Ray” Akhavan are scheduled for a March 1 trial in the Southern District of New York federal court.

Patterson resigned from Eaze in 2019 and the company is not a defendant in the case, which centers around allegations that the trio created fake online merchants in order to bypass rules related to the use of credit cards for cannabis purchases and funnel more than $100 million in credit and debit payments.

Patterson acknowledged working with Weigand and Akhavan to coverup the purchases because he “understood that if banks were aware of the nature of the transactions they would not allow them,” according to a Law360 report outlined by Marijuana Business Daily.

Eaze was sued by a competitor in 2019 for the same practices. The company denied the charges and ultimately the case was dismissed and sent to mediation, the report says.

Weigand and Akhavan argue that the charges against them are invalid because they are not alleged to have intended to harm or steal from banks, and the funds involved were only transferred through banks, not actually acquired from the banks.

Patterson was named CEO of Eaze in 2016 after the sudden departure of founder Keith McCarty. He was removed as CEO and replaced by Rogelio Choy in October 2019.

Eaze, originally founded as a cannabis delivery app, announced last year it would pivot from a tech platform to a retail, touch-the-plant model.

Originally Published on 2021 02 24 by TG Branfalt |

Thank you for joining us today for our latest news post. If you have any questions or comments about this post, we’d love to hear from you in the comments! Join the newsletter to stay up to date on the latest Industry News and keep an eye out for our next news article!

Disclaimer: This content was sourced from and republished to our website to add value and additional content for our readers. In order to maintain the safety, functionality, and integrity of, the sourced content may have been altered. To access the original content, please click the link below:


Share on email
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Share on reddit
Share on tumblr
The Editor

The Editor is the internet's largest CBD stores directory. Browse 100s of CBD businesses, find CBD near you, and more!
  • Comments are closed.
  • Sign Up For Our Newsletter

    Stay informed with the latest articles on our CBD blog

    Related Posts

    CBD hemp oil, Hand holding bottle of Cannabis oil against Marijuana plant. Herbal Treatment, Alternative Medicine

    How CBD Can Help You

    With more and more CBD products entering the market every year, the CBD industry is growing at a rapid pace. The industry is projected to

    Pin It on Pinterest