[[{“value”:”
Promises of a green rush of cash flow from the cannabis industry drew many hard-working entrepreneurs to try their luck in the space. As various regulations unfolded from state to state, many agencies reserved special license types for those who were local to the area and/or had been victims of the war on drugs. The results have varied. In one Southern California town, they are allegedly downright fraudulent.
Rose Jasso was a small business owner about to lock her barber shop for a lunch break when a new customer approached her with a plastered-on smile. The man’s name was Greg Moreno. He identified himself as a dispensary owner and engaged them on the topic of medical cannabis. After his haircut, he left behind papers. According to Jasso’s account in Voice of San Diego, Moreno said it was a survey.
RELATED: Are these banned ingredients in your edibles?
Signing on for an unexpected outcome
That happened in 2021, and the National City local did not think much of it. However, after their first meeting, Moreno returned for more haircuts. He also began calling repeatedly, getting more specific about what the dispensary chain wanted to offer.
He allegedly promised that with just a few papers and verification she had lived in National City for at least three years before 2021, Jasso would receive $1500 monthly. She said that Moreno claimed this was roughly one percent of the anticipated dispensary revenue as reported by Voice of San Diego. A stack of signed papers later, Jasso believed she would be getting one percent of the proceeds from a local dispensary.
However, nothing ever came from this until March 2024. That is when Moreno drove a Tesla up to Jasso’s house with Element 7 CEO Robert DiVito in the passenger seat. The pair informed her that she would receive $1500 monthly charity payments after months of organizing the new business.
Jasso did begin to receive those each month, claiming she sometimes had to remind DiVito via text before they arrived in her bank account. The barber allegedly asked multiple times for copies of the documents she signed. Instead, employees brought thick binders to her and opened them to signature pages. Jasso states that she was not given time to thoroughly review them for quite some time after signing.
After many emails with DiVito about getting those forms, Jasso stated she was met by an employee named Josh Black, who handed over an enormous binder. She poured over the pages to find she was far more than a charity recipient. Jasso owned the place–well, 51 percent of it.
RELATED: People can’t stop fighting about ‘record-breaking’ weed strain
Jasso seeks answers from the National City Council
Fast forward to a city council meeting on December 3, 2024, when Jasso addressed elected officials. She is convinced that that fraudulent behavior led to her owning Element 7.
“My signatures were prostituted to outside high-profile money-thirsty criminals with the intention to operate a million-dollar cannabis storefront by profiteering on my name,” Jasso said to the council. “I have been exploited.”
A few supporting witnesses followed her testimony, speaking to the distress she had experienced and the poor business practices of Element 7.
One of these people was Bill Nosal. He identified himself in the meeting as a longtime cannabis business operator throughout California. Nosal backed up claims that bad actors were soliciting license signatures from locals. While he would not disclose who brought them to him, he’d seen similar paperwork to the pages Jasso signed.
Nosal asserted that the council had taken license fees without following up on the promises on the sheet that accompanied them. They claimed they would interview people, validate ownership, and know their local cannabis owners.
“You wrote that in your affidavit, and then you didn’t protect the people against the predatory practices,” Nasal said to the council.
RELATED: New weed strain gets you fresh from the oven baked
Problem solved on the Element 7 equity license?
Since that meeting, the council exchanged multiple communications with Jasso and DiVito, according to Voice of San Diego reporting. City Attorney Schultz sent Jasso and Black an email on Feb. 17 stating that since she accepted the $1500 monthly since March 2024 and signed the papers willingly her ownership was deemed legit.
Now, Jasso is stuck in a partnership. She is fearful to make a move in case the dispensary gets litigious. GreenState failed to locate Jasso for comment. The National City Council and Element 7 did not respond to requests for comment.
As for the shop, Element 7 National City has yet to open for business. GreenState reached out to Councilmember Marcus Bush but were unable to obtain a comment before publishing. The rest of the National City Council failed to respond to the request.
This tale may be wrapped up as neatly as possible, but it points to a need to verify more of these equity licenses. Those in charge of granting licenses must also ensure the programs reach their goals. For every victim that speaks out, it is probable many more remain silent. Also, maybe everyone should take a better read of things they sign.
Share
“}]] Element 7 equity license holder in National City claims that she never wanted to own a cannabis dispensary, asserts fraud. Read More
